GMMCH07.ppt 73KB Jun 05 2011 09:30:25 PM

GLOBAL SEGMENTATION
AND POSITIONING
Chapter Seven

John Wiley & Sons, I

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7. Global Segmentation and Positioning
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Overview
1. Reasons for International Market Segmentation
2. International Market Segmentation Approaches
3. Bases for Country Segmentation

4. Country Segmentation Tools
5. Issues in International Market Segmentation
6. International Positioning Strategies
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Overview

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1. Reasons for International Market
Segmentation
• properties
– Measurable, Sizable, Accessible, Actionable, Competitive
Intensity, Growth Potential

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Country Screening
Global Market Research
Entry Decisions
Positioning Strategy
Marketing Mix Policy
– Exhibit 7-1 “Think” and “Feel” Country Clusters

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2. International Market Segmentation
Approaches
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Exhibit 7-2 Macro-Level Country Approaches
Exhibit Two- and Three- Segment Solutions
Exhibit 7-4 Different Segment Scenarios
Target Market Strategies
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Universal Segment
Diverse Segment
Mixture of Universal and Diverse Segments
Exhibit 7-5 What Matters to Young Europeans
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3. Bases for Country Segmentation
• Demographics
• Socioeconomic Variables
– stages of economic development
1. Traditional Societies
2. Preconditions for take-off
3. The take off
4. The drive to maturity
5. High mass-consumption
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3. Bases for Country Segmentation
(cont)
• caveats in using per capita income
• Monetization of transactions within a country
• Gray and Black Market sections of the country
• Income disparities

• Exhibit 7-6 Latin-American Markets: Many
Latin Households have Lots of Spending
Money
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3. Bases for Country Segmentation
(cont)
• Culture
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1. Individualism vs Collectivism (IND)
2. Power Distance (PD)
3. Uncertainty Avoidance (UA)
4. Masculinity - Feminism (MA)

• Exhibit 7-7 Culture Based Clustering of
Euroconsumers
• Political Conditions
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3. Bases for Country Segmentation
(cont)
• Behavior-Based Segmentation
– Exhibit 7-8 European Market Classification as
of December 31,1994
– Exhibit 7-9 Segment Assignments Based on
New Product Penetration Patterns

• Life Style
– Exhibit 7-10 Frame 2 International Typology
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4. Country Segmentation Tools
• Cluster Analysis
– Exhibit 7-11 Principles of Cluster Analysis
– Exhibit 7-12 Plot of Concentration Versus
Category Growth: Chocolate Industry
– Exhibit 7-13 Cluster Analysis - Two Cluster
Solution, Three Cluster Solution

• Regression
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5. Issues in International Market
Segmentation
• Technical Issues
– Poor Quality Data
– “Noisy” Variables
– Presence of Outliers

• Managerial Issues
– Stability of Segments Over Time
– Managerial Usefulness
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6. International Positioning Strategies
• Exhibit 7-14 Global Positioning and
Segmentation Strategies
– Universal Segment / Uniform Positioning
Theme
– Universal Segment / Different Positioning
Themes
– Different Segment / Different Positioning
Themes
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Summary
1. Keep things simple.
2. Consider several levels of aggregation, not
just one.
3. Two ways to fine tune an existing
segmentation scheme.
4. Pursue “creative” ways to segment your
market.
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