PRESENTED BY:ANJU N

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INTRNATIONAL MARKET

SEGMENTATION

DEFINITION OF INTERNATIONAL MARKETING:

“The performance of business activities designed to plan, price, promote and direct the company’s flow of goods and services to consumers or users in more than one nation for a profit”

DEFINITION OF IMS Market segmentation is the process in marketing

of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy.

MEANING The process of identifying countries and/or

consumers that are similar with regard to key traits, such as product-related needs and wants, that would respond well to a product and related marketing mix.

WHAT IS THE DIFFERENCE BETWEEN MARKETING DOMESTICALLY AND INTERNATIONALLY?

Marketing concepts are universal (goal is to make a profit)

Difference is that in international marketing ALL environments have to be taken into consideration when the marketing plan is developed and executed

Must consider the legal environment, governmental controls, climate & weather, cultural beliefs, buyer behavior… (uncontrollable elements)

Why international marketing is so important: Companies can no longer ignore the effects of internationally

marketing Competition no longer exists just from domestic companies .

In order to sustain profitability and growth margins of the past, companies have to look for alternative methods of marketing their products and services “In a study conducted on U.S. manufacturing companies of all

sizes, it was found that multinational companies outperformed their strictly domestic U.S. counterparts by more than twice as fast in sales and earned much greater returns on equity and assets..”

Prevailing trends that have the most impact on international business in the future:

1. Growth of the World Trade Organization and region free trade areas (NAFTA, European Union..)

2. Trend of developing countries (such as Asia, Latin America, Eastern Europe) accepting the “free market system”

3. Impact of the internet and other global media companies (CNN) 4. Mandate for companies to properly manage resources

REQUIREMENTS FOR EFFECTIVE INTERNATIONAL SEGMENTATION

>Measurability >Actionability size, purchasing power, and profiles of effective programs can be designed for

attracting and serving the segments.

segments can be measured.

>Differential response segments are conceptually distinguishable

and respond differently to different marketing

mix elements and programs

>Substantiality segments are large or profitable enough to serve.

>Stability over time

>Accessibilitysegments can be effectively reached and served

Benefits of IMS

Allows the company to generalise their marketing research

conclusions.

Entry strategy and marketing mix across a few segments instead of

every market.

Helping to allocate scarce resources.

Determining the company’s positioning strategy.

TYPES OF IMS

GLOBAL

REGIONAL

UNIQUE

• Global segmentation is used when there is a group of consumers with common

needs that crosses national borders. This kind of

segment is usually the youth segment, the affluent

segment or related to internet servicesGLOBAL

• Regional segmentation may be used when the similarity in needs/preferences only

extends across the region or several countries. Firms will

often use this when they want to capitalise on the

financial savings of global segmentation but would like

to localise moreREGIONAL

• But if they want or need to completely localise they may

choose unique segments, which take the preferences

of a segment within one country. This is usually

necessary for products such as news services or

speciality foodsUNIQUE

International markets can therefore be segmented in a two –step process( a hierarchy of segment).first, the “macro” segment composed of individual or groups of countries can be identified based on national market characteristics. Then within each macro- segment the market can be further sub-divided based on consumer characteristics.

IMS

MICRO MACRO

MACRO-SEGMENTATION PROCESS CAN BE DIVIDED INTO THE FOLLOWING STEPS:

1 •To determine the method by the world market (ie, determine the subdivision standards);

2 • The classification criteria of myopia, all with common feature of the country designated as a group, constitute a sub-market;

3 •To understand the needs of enterprise resources to meet the conditions of each What are the requirements;

4 •According to the characteristics of the enterprise to see if satisfied by the Company or which sub-markets which the most appropriate and advantageous;

5 •From the theoretical analysis, to meet the needs of the target market, measures to be taken;

6 •To this theory, the strategies and methods to be modified according to the actual situation and adjust

Micro-enterprises to enter a foreign market segments, due to the country is vastly different customer needs, enterprises can not meet all the needs of customers in the country, but can only be broken down into several sub-market, to meet one or more sub-market demand, meaning that international market segmentation is called micro-segments.

Micro-segmentation is similar to the domestic market segments, namely, when the company decided to enter an overseas market, it will find that there are differences in the local market customer needs, should be further subdivided into a number of markets to choose one or several sub-market as the goal market.

Micro-segmentation of the standard international market and domestic market segments in the micro-micro-segmentation is the same, the standards are basically the same subdivision.

(A) of the consumer market segmentation criteria

• geographic location• economic factors• political & legal factors• cultural factors• intermarket segmentation (segment consumers with similar profile but different countries)

(B) Industrial market segments: Segmented based on the characteristics that

- Location

- Company type

- Behavioral characteristics

EXAMPLE As of July 1, 2011, the company's operations are categorized into two "Global

Business Units" with each Global Business Unit divided into "Business Segments" according to the company's 2011 Annual Report.

Beauty segment Grooming segment Health Care segment Snacks & Pet Care segment Fabric Care & Home Care segment Baby Care & Family Home Care segment

CONCLUSION One of the major problems confronting the

international marketing manager faced with the breadth and diversity of international markets is how to identify potential target segments, and what information is to collect for this purpose. A systematic two- step segmentation procedure /approach can be better to depend for solving these issues.

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THANK YOU…