global marketing 7

7/29/2019 Global Marketing 7

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Se mentation

Targeting, and

(Global Edition)Chapter 7

1

Chapter topics:

How to identif like

groups of potentialcustomers?

How to chose the groupsto target?

How to segment those

groups? How to position the brand

in the mind of the

2011 Pearson Education, Inc.

7-2customer?ere are . m on orse ac

and cart riders in Great Britain

Represents an effort to identify andcate orize rou s of customers and

countries according to common


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77.5 million dogs are owned in the US.Who owns whom?

The process of evaluating segments

and focusing marketing efforts on acountr re ion or rou of eo le thathas significant potential to respond

reached most effectively, efficiently,

and profitably


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Positioning is required to differentiate the

target market.


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Defined as the rocess of identif in

specific segments whether they be

groups of potential customers withomogeneous a r u es w o are e y

to exhibit similar responses to acompanys marketing mix


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Contrasting Views of GlobalSegmentation

Conventional Wisdom

Assumes heterogeneity

nconven ona s om

Assumes emergence of

etween countriesAssumes homogeneity

national boundaries

Focuses on culturaldifferences at macro

within-country diffs

Em hasizes micro level

level

Relies on clustering ofdiffs & commonalities

Segments micro markets

na ona mar e s Less emphasis on

-

within and betweencountries


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Micro segments based on

CB are highest priority

Demo ra hics

Psychographics

Behavioralcharacteristics

Benefits sought

Skiing became a sport in Norway,


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where it was invented 4,000 years ago


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ncome

Population

Age distribution

Gender

Education

What are the trends?


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A widening age gap exists between the older -age populations in developing countries

,aged


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The Euroconsumer: uccess u ea s s:comprises from 5% to 20% of the population

material success while maintaining commitment to

abstract or socially responsible ideals

Affluent Materialists:

status-conscious up-and-comers many of whom arebusiness professionals

use conspicuous consumption to communicate their success


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The Euroconsumer (contd):

25% to 50% of a countrys population

conservative

most comfortable with the familiar

content with the comfort of home, family, friends, and community

Disa ecte Survivors

lack power and affluence

tend to be either resentful or resigned

concentrated in hi h-crime urban inner cit


7-15attitudes tend to affect the rest of society

Focus on whether people purchase a

product or not, how much, and howoften they use it

User status

disproportionality / Paretos Law: 80%

for by 20% of the customers


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H=22% H=39% H=39%Colas

U=0% U=10% U=90%

H=59% H=20% H=21%Bourbon

U=0% U=11% U=89%

H=67% H=16% H=17%Beer

U=0% U=12% U=88%

H=27% H=36% H=37%Cake mixes

U=0% U=15% U=85%

= = =Power towels

U=0% U=17% U=83%

H=2% H=49% H=49%


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Toilet tissue

U=0% U=26% U=74%

value equation

Va ue = Bene its Price

product solves, the benefit it offers, or


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Benefit segment Sensory Sociables Worriers Independents

Principal benefit flavour, brightness of decay prevention price.

Demographics children teens,young people

large families men

Behavioural chars. users of spearmint smokers heavy users heavy users

Brands favoured Colgate, Stripe Macleans, Plus Crest brands on salee, ra

Brite

Personality chars. self-involvement sociability hypochondriasis autonomy

Lifestyle chars. hedonistic active conservative value-oriented


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Russell Haley, Benefit Segmentation: A Decision-Oriented Research Tool,Journal of Marketing, July 1968,p. 33

Effective SegmentationCriteria

Measurable

Accessible

Differentiable


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Be mindful of the itfalls Tendency to overstate the size and short-

markets

a strategic opportunity

anagemen s ne wor o con ac s wemerge as a primary criterion for targeting


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Current size of the segment and

Potential competition

Compatibility with companys overall

objectives and the feasibility of successfullyreaching the target audience


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Current Segment Size andGrowth

enough to present a company with the

If the answer is no, does it havesignificant growth potential to make it

-term strategy?


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Is there currently strong competition in

e mar e segmen Is the com etition vulnerable in terms

of price or quality?


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Will adaptation be required? If so, is this

economically justifiable in terms of expected sales? Will import restrictions, high tariffs, or a strong home

country currency drive up the price of the product in

demand?

to source products in the country for export

elsewhere in the region? Is targeting a particular segment compatible with the

companys goals, brand image, or established


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sources o competitive a vantage?

Framework for SelectingTarget Markets

Demographic information is a starting point

but not the decidin factor

Product-market must be considered

Marketing model drivers must be considered

actors requ re or a us ness to ta e root angrow

re ere any ena ng con ons presen

Conditions whose presence or absence will


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e erm ne success o e mar e ng mo e

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9 basic questions for creating a product-market profile:1. Who buys our product or brand?.

3. What need or function does our product serve? Doesour product or brand address that need?

4. Is there a market need that is not being met bycurrent product or brand offerings?

. 6. What are customers currently buying to satisfy the

need, or solve the problem, that our product targets?

7. What price are they paying for the product they arecurrently buying?


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. 9. Where is our product purchased?

Standardized global marketing

Mass marketing on a global scale Undifferentiated target marketing

Standardized marketing mix

Intensive distribution

Lower production costs Lower communication costs


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Concentrated Differentiated global

Niche marketing Multi-segment

ng e segmen oglobal market Two or more distinct

oo or g o adepth rather than Wider market coverage

Ex: Chanel, Body

Spice and Hugo Boss


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Locating a brand in consumersm n s over an aga nstcompetitors in terms ofattr utes an ene ts t at t ebrand does and does not offer

Attribute or Benefit

ualit and Price Use or User


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Global consumer culturepositioning

Identifies the brand as a symbol of aparticular global culture or segment

High-touch and high-tech products

Foreign consumer culturepositioning

Associates the brands users, useoccasions, or product origins with a

Beer is associated withthis Germans culture;the s mbol on his shirt


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oreign country or cu ture

is not German!

Local consumer culture

Identifies with local cultural

Consumed by local people

Used frequently for food, personal,and household nondurables

Ex: Budweiser is identified withsmall-town America


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which beer?


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Light body

Miller

li

B

Low price Prestige price

Hamms

#2

c li z

Budweiser

A

D


7-33Heavy body

Strategy options:

strengthen and leverage its current position-

search for new unowned position that isvalued b enou h consumers and rab it(look for the hole)

deposition or reposition the competitionExclusive club strategy - Big Three, Big

Eight, Big Ten, etc.


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high-tech positioning: based on concrete productfeatures; buyers typically already possess or wish to

acqu re cons era e ec n ca n orma on

-consumers; requires less emphasis on specializedinformation and more emphasis on image; buyers ofhigh-touch products share common language and set ofsymbols relating to themes of wealth, materialism, and

romance

- -


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(e.g., Bang & Olufsen consumer electronics)

global marketing 7

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