1.

Globalization

Global Marketing Environment

2. Global Economic 4. Cultural issues and Buying

Environment Behavior

3. Financial Environment 5. Political/ Legal Environment

Development of Competitive Strategy

6. Global Marketing
Research

7. Global Segmentation and 8. Global Marketing Strategies

Positioning

Contd….
 9. Global Market Entry Mode

Global Marketing Strategy Development

10. Global Product Development 13. Communicating with the

11. Marketing Product and world Consumer
Services 14. Sales Management

15. Global Logistic and

12. Global Pricing Distribution
16. Export/Import Management

Managing Global Operation

17. Planning, Organization and Control of Global Marketing Operations

18. Marketing in Emerging Markets

19. Global Marketing and the Internet

 The Global Marketing Task

Foreign Environment
(Uncontrollables)
7. Structure of 1. Competition
Distribution Domestic environment Environmental
(Uncontrollables) uncontrollables
country market A
(Controllables) 1. Competition
Price Product 2. Technology
5. Political- Target Environmental
Market 7
6. Geography and Legal uncontrollables
Infrastructure Promotion Place or 2 .Technology country
Distribution market B
4.
Culture Environmental
3. Economy
uncontrollables
5. Political- 3. Economy country
Legal market C
4. Culture
4

Chapter 7
Global Segmentation
and Positioning
 Chapter Overview
5

1. Reasons for International Market Segmentation

2. International Market Segmentation Approaches
3. Segmentation Scenarios
4. Bases for Country Segmentation
5. International Positioning Strategies
6. Global, Foreign, and Local Consumer Culture
Positioning
Appendix
 Introduction
6

 Variation in customer needs is the

primary motive for market segmentation.
 Most companies will identify and target
the most attractive market segments that
they can effectively serve.
 In global marketing, market
segmentation becomes especially critical
because of wide divergence in cross-
border consumer needs and lifestyles.
 Once the management has chosen its
target segments, management needs to
determine a competitive positioning
strategy for its products.
 1. Reasons for International
Market Segmentation
7

 Segments ideally should possess the

following set of properties:
 Identifiable
 Sizable
 Accessible
 Stable
 Responsive
 Actionable
 1. Reasons for International
Market Segmentation
8

 Country Screening
 Global Market Research
 Entry Decisions
 Positioning Strategy
 Resource Allocation
 Marketing Mix Policy
 Balance between standardization and
customization
 Market Clustering Approach for
Instant Coffee
9
 2. International Market
Segmentation Approaches
10

 International segmentation procedures:

 Country-as-segments or aggregate
segmentation
 Disaggregate international consumer
segmentation
 Two-stage international segmentation
 Standard country segmentation classifies
prospect countries on a single dimension (e.g.,
per capita GNP) or on multiple dimensions—
cultural, socioeconomic, and political criteria
available from secondary data sources.
 For numerous country traits, use data reduction
such as factor analysis.
 Nestlé’s Geographic Segmentation
of the Americas
11
 Macro-Level Country
Characteristics
12
 3. Segmentation Scenarios
13

 Universal or global segments

 Regional segments
 Unique (diverse) segments
 Different Segment Scenarios
14
 4. Bases for Country
Segmentation
15
 Demographics
 Demographic variables are among the most
popular criteria
 Socioeconomic Variables
 Caveats in using per capita income as an
economic development indicator:
 Monetization of transactions within a country
 Gray and Black Market sections of the economy
 Income disparities
 Purchasing Power Parity (PPP) criteria
 Human development index (HDI) classification
 Socioeconomic Strata (SES) Analysis (Exhibit 7-
6)
 Six Types of Chinese Pre-Elders
16
 Market Development and Brand
Building
17
 4. Bases for Country
Segmentation
18

 Behavior-based segmentation
 Brand loyalty
 Usage rate
 Product penetration
 Benefits
 Benefit Segments of Toothpaste
Market in the U.S.A., China, and
19 Mexico
 4. Bases for Country
Segmentation
20

 Lifestyles
 Roper Consulting’s Valuescope Model.
30,000 interviews around the world.
 Achievers
 Traditionals
 Survivors
 Nurturers
 Hedonists
 Social-Rationals
 Self-Directeds
 5. International Positioning
Strategies
21

 The formulation of a positioning strategy (local

or global) includes the following steps:
1. Identify the relevant set of competing products or
brands.
2. Determine current perceptions held by consumers
about your product/brand and the competition.
3. Develop possible positioning themes.
4. Screen the positioning alternatives and select the
most appealing one.
5. Develop a marketing mix strategy.
6. Over time, monitor the effectiveness of your
positioning strategy and if needed, conduct an audit.
 5. International Positioning
Strategies
22

 Uniform versus Localized Positioning

Strategies
 Universal Positioning Appeals
 Positioning themes:
 Specific product features/attributes
 Product benefit, solutions for problems
 user category
 user application
 heritage
 lifestyle
 Global Positioning and
Segmentation Strategies
23
 6. Global, Foreign, and Local
Consumer Culture Positioning
24

 Global consumer culture positioning

(GCCP)
 Brand as a symbol of a given global consumer
culture
 Local consumer culture positioning (LCCP)
 Brand as an intrinsic part of the local culture.
 Foreign consumer culture positioning
(FCCP)
 Brand mystique built around a specific foreign
culture
 McDonald’s Promoting Its Local
Community Support in New
25 Zealand
 Appendix: Segmentation Tools
26

 Segmentation techniques and tools:

 Cluster Analysis: Collection of statistical

procedures for dividing objects into groups
(clusters). The grouping is done in such a
manner that members belonging to the
same group are very similar to one another
but quite distinct from members of other
groups.
 Appendix: Segmentation Tools
27

 Regression Analysis: In regression, one

assumes that there exists a relationship
between a response variable, Y, and one or
more so-called predictor variables, X1, X2 and
so on.
 For each of the parameter estimates, the
regression analysis will also produce standard
error.
 The higher the R2 value, the better the ability
of the regression model to predict the data.
 Principles of Cluster Analysis
28
 Plot of Concentration versus
29
Category Growth Chocolate Market
 Cluster Analysis
30