International Marketing Segmentation Targeting and Positioning DanaNicoleta Lascu

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International Marketing Segmentation, Targeting, and Positioning Dana-Nicoleta Lascu Chapter 7 Copyright Atomic Dog Publishing,

International Marketing Segmentation, Targeting, and Positioning Dana-Nicoleta Lascu Chapter 7 Copyright Atomic Dog Publishing, 2002

Chapter Objectives • Identify the rationale for adopting a target marketing strategy in international

Chapter Objectives • Identify the rationale for adopting a target marketing strategy in international markets • Identify the requirements necessary for effective international market segmentation • Introduce the concept of country attractiveness analysis and offer a blueprint for conducting the analysis • Identify the bases for consumer segmentation and offer company application examples • Describe three targeting strategies used by companies worldwide • Describe the six positioning strategies that international companies can use to position their brands in the minds of target consumers Copyright Atomic Dog Publishing, 2002

International Target Marketing • • Identify consumer segments with similar traits Select segments company

International Target Marketing • • Identify consumer segments with similar traits Select segments company can serve efficiently Develop products tailored to each segment Offer products to the target market: § Communicate traits that differentiate the product Copyright Atomic Dog Publishing, 2002

International Segmentation The process of identifying countries and/or consumers that are similar with regard

International Segmentation 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. MUST BE performed at country level AND at consumer level. Copyright Atomic Dog Publishing, 2002

Requirements for Effective International Segmentation • • • Measurability Substantiality Stability over time Accessibility

Requirements for Effective International Segmentation • • • Measurability Substantiality Stability over time Accessibility Actionability Differential response Copyright Atomic Dog Publishing, 2002

International Macro-Segmentation • Market potential – indicators: § § § Gross domestic product (GDP)

International Macro-Segmentation • Market potential – indicators: § § § Gross domestic product (GDP) per capita Industrial and agricultural sector statistics Market size and potential Consumer buying power Investment figures (FDI, other trade statistics) Copyright Atomic Dog Publishing, 2002

International Macro-Segmentation, continued • Political, legal and financial environment of country § § §

International Macro-Segmentation, continued • Political, legal and financial environment of country § § § § Ethnic conflict History of war engagement Antiforeigner sentiment Recent nationalization activities Legal ambiguity Trade barriers Exchange rate controls Copyright Atomic Dog Publishing, 2002

International Macro-Segmentation, continued • Marketing support infrastructure § § Availability and reliability of distribution

International Macro-Segmentation, continued • Marketing support infrastructure § § Availability and reliability of distribution and logistics providers Availability of competent partners for strategic alliances Quality of telecommunication and transportation infrastructure Availability of other service providers: - Marketing research firms - Financial firms - Management consulting firms… Copyright Atomic Dog Publishing, 2002

International Macro-Segmentation, continued • Strength of brand – brand franchise • Degree of market

International Macro-Segmentation, continued • Strength of brand – brand franchise • Degree of market fit with company policies, goals, and resources Copyright Atomic Dog Publishing, 2002

Micro-Segmentation • Basis for Segmentation § Demographic - Age Occupation Education Income Ethnicity Race

Micro-Segmentation • Basis for Segmentation § Demographic - Age Occupation Education Income Ethnicity Race Nationality Copyright Atomic Dog Publishing, 2002 - Life-cycle stage - Social class - Urbanization

Micro-Segmentation, continued • Basis for Segmentation § Psychographic: lifestyles, values, attitudes, interests, opinions -

Micro-Segmentation, continued • Basis for Segmentation § Psychographic: lifestyles, values, attitudes, interests, opinions - Hofstede dimensions: • • - Power-distance Masculinity-femininity Uncertainty avoidance Individualism-collectivism Global segments: • Global teenagers • Global elite Copyright Atomic Dog Publishing, 2002

Micro-Segmentation, continued • Basis for Segmentation § § Benefit Segmentation Geographic Copyright Atomic Dog

Micro-Segmentation, continued • Basis for Segmentation § § Benefit Segmentation Geographic Copyright Atomic Dog Publishing, 2002

Micro-Segmentation, continued • Basis for Segmentation § Usage - Nonusers Occasional users Medium users

Micro-Segmentation, continued • Basis for Segmentation § Usage - Nonusers Occasional users Medium users Heavy users Copyright Atomic Dog Publishing, 2002 § User Status - User of competitors’ products Ex-users Potential users First-time users Regular users

Country Screening and Selection • Assign importance score to each country screening criteria •

Country Screening and Selection • Assign importance score to each country screening criteria • Evaluate country performance on each of the screening criteria • Calculate country attractiveness score Copyright Atomic Dog Publishing, 2002

Target Market Decisions • Differentiated § § Identify or create market segments desiring different

Target Market Decisions • Differentiated § § Identify or create market segments desiring different product benefits and target each segment with a different brand different marketing strategies Example: Procter & Gamble Copyright Atomic Dog Publishing, 2002

Target Market Decisions, continued • Concentrated § § Select only one market segment and

Target Market Decisions, continued • Concentrated § § Select only one market segment and target it with a single brand Example: Mont Blanc pens Copyright Atomic Dog Publishing, 2002

Target Market Decisions, continued • Undifferentiated § § Aim the product at the market

Target Market Decisions, continued • Undifferentiated § § Aim the product at the market with a single strategy regardless of the number of market segments Example: powder milk, beans Copyright Atomic Dog Publishing, 2002

Positioning the Brand 1) 2) 3) 4) 5) 6) Identify competitors Determine how they

Positioning the Brand 1) 2) 3) 4) 5) 6) Identify competitors Determine how they are perceived by consumers Determine positioning in consumer’s minds Analyze customers Select positioning Monitor position Copyright Atomic Dog Publishing, 2002

Positioning the Brand, continued • • • Attribute/Benefit Price/Quality Uses or Application Product User

Positioning the Brand, continued • • • Attribute/Benefit Price/Quality Uses or Application Product User Product Class Competition Copyright Atomic Dog Publishing, 2002

Chapter Summary • Rationales and requirements for adopting target marketing strategies in international markets

Chapter Summary • Rationales and requirements for adopting target marketing strategies in international markets • Country attractiveness • Bases for consumer segmentation and company application examples • The international targeting strategies • The positioning strategies Copyright Atomic Dog Publishing, 2002