Presentation is loading. Please wait.

Presentation is loading. Please wait.

Chapter Eleven Global Segmentation and Positioning MKT568 Global Marketing Management Dr. Fred Miller 3-1.

Published byRodolfo Skeete Modified over 9 years ago

Similar presentations

Presentation on theme: "Chapter Eleven Global Segmentation and Positioning MKT568 Global Marketing Management Dr. Fred Miller 3-1."— Presentation transcript:

1 Chapter Eleven Global Segmentation and Positioning MKT568 Global Marketing Management Dr. Fred Miller 3-1

2 Sample Essay Question Schmidt’s Brewery has wishes to enter international markets with several of its brands to increase sales and profit performance. The firm has asked your for recommendations for segmentation and positioning strategies to implement. Write a short summary for Schmidt in which you: 1) explain macrosegmentation using a specific clustering approach as an example, 2) explain microsegmentation using specific segmenting dimensions as an example and 3) explain product positioning and describe how product space models in the countries they enter can help them compete against local brands.

3 Market Assessment Tools Global Marketer’s Mindset Selling Orientation Standardization Coordination Centralization Macrosegmentation Objective – identify groups of similar countries Country clustering approaches Selecting clusters using competitive & profitability analysis

4 A Two-Dimensional Country Clustering Map 4-11 Exhibit 4.4 0.9.8,7.6.5.4.3.2.1 0 -.1 -.2-.10.1.2.3.4.5.6.7.8.91.0 SOT UKI NOR SWE DEN FIN SWI AUS NET GER NEZ BEL AUT COL CHI VEN SPA BRA PER MEX PUE FRA ITA ARG PHI THI ISR JAP MAC IND PAK Factor VI TUR Protestant Catholic

5 A Market-Oriented Clustering of World Markets Exhibit 4.5 Cont. Source: Cavusgil, 1990, pp. 206-7. Reprinted by permission of Butterworth-Heinemann, Ltd.., and the author.

6 World Bank Comparative Data

7 Macrosegmentation Exercise Why would a firm wish to identify clusters of similar country markets? How might a brewer use each of the following criteria to create country clusters? Climate Language Socioeconomic conditions Religion Geographic proximity List a cluster of countries for each criterion. Combine two criteria and list a cluster of relevant countries with similar characteristics for the two criteria

8 Global Trends Cup What are the relationships, do you think, among these three socioeconomic measures? How do you think each has changed around the world between 1980 and 2005? Women as a percentage of the workforce Per capita income Number of children per woman

9 Global Trends Cup MeasureHighest value: 2004Greatest change: 1980-2004 Women as % of Labor Force Per Capita Income Children per woman Enter a country name in each cell to place your bet. The countries in the race are: China Mexico Japan Germany

10 Global Trends Cup MeasureHighest value: 2004Greatest change: 1980-2004 % Women in Labor Force1-Germany, 2-China1-Mexico, 2-Germany Per Capita Income1-Japan, 2-Germany1-China, 2-Japan Children per woman1-Mexico, 2-China And the winners are!

11 Market Analysis Tools Microsegmentation Segmentation requirements Identifiable, measurable, reachable, able/willing to buy Segmenting bases economic, demographic, culture – emerging, new growth culture, benefits, lifestyle - mature Global Product Positioning Product space and components New brand – space intact, extended, new features/perceptions “Mispositioning” of global brands – price, image, CoO effects Diversification vs Focus strategies

12 Demographic vs Lifestyle Segmentation

13 Microsegmentation Exercise Why would a firm wish to use segmentation strategies in individual national markets? Select one of the following segmentation bases and explain how it might be used in emerging and new growth country markets. Economic Demographic Culture Select one of the following segmentation bases and explain how it might be used in mature countries. Culture Benefits Lifestyle

14 Product Space Positioning Exercise Why would a firm wish to use positioning strategies in individual national markets? Which evaluative criteria should be used in a two dimensional product space? How are product perceptions represented in a two dimensional product space? How can positioning analysis using a product space model help a firm compete more successfully in national markets?

15 Building a Product Space The Chinese Beer Market Marketing Research Results Taste 5 5 2 7 FactorImportance Heineken San Miguel Tsingtao Imported 7 7 7 2 Popularity 4 3 4 7 Price 3 3 6 7

16 Building a Product Space Matrix Tsingtao San Miguel Heineken 17 Imported 4 DomesticImport 1 7 Taste 4 Dry Malty

17 Market Positioning Map of Selected Automobile Brands (1984) Luxury Affordable Conservative Sporty Lincoln Cadillac Mercedes Chrysler Buick Oldsmobile 4 BMW Porsche Pontiac 5 2 Ford Dodge Plymouth Chevrolet Datsun Toyota VW 3 1 Source: John Koten, “Car Maker’s Use ‘Image’ Map as Tools to Position Products,” The Wall Street Journal, March 22, 1984, pp. 31. Reprinted by permission of The Wall Street Journal, ©1984 Dow Jones & Company, Inc. All rights reserved worldwide Altima

18 Market Analysis Tools Microsegmentation Segmentation requirements Identifiable, measurable, reachable, able/willing to buy Segmenting bases economic, demographic, culture – emerging, new growth culture, benefits, lifestyle - mature Global Product Positioning Product space and components New brand – space intact, extended, new features/perceptions “Mispositioning” of global brands – price, image, CoO effects Diversification vs Focus strategies

19 Exhibit 5.8 Factors Sprinkler/ Diversify if Waterfall/ Focus if Growth rate Low High Demand stability Low High Competitive lag Short Long Spillover High Low Need to adapt product Low High Need to adapt promo Low High Marginal sales Diminishing Increasing Need for control Low High Entry barriers Low High Market Factors Affecting Choice of Expansion Path

20 Chapter Eleven Global Segmentation and Positioning MKT568 Global Marketing Management Dr. Fred Miller 3-1

21 Export Pricing Problem 1. € 0,36 per liter, using the formula Direct Unit Cost = Unit Labor Cost +Unit Ingredient Cost € 0,12 + € 0,24 = €0,36 2. €,38 per unit, using the formula: Unit Cost = Unit Variable Cost + Unit Fixed Cost where Unit Fixed Cost = Total Fixed Costs / Volume in Units €0,38 = €0,17 + €0,21 (€ 3.800.000/22.000.000 units) 3. € 0,64, calculated using the formula: Price = Cost / (1 – Margin) or €0,64 = €0,38 / (1 -,4) 4. € 0,66 FAS LA (€ 0,64 + € 0,02 domestic shipping)

22 Export Pricing Problem 5. € 0,70 CIF Bangkok, (€ 0,66 + € 0,03 international shipping and € 0,01 insurance) 6. € 0,78 DDP, CIF Price * (1 + Tariff Rate) so € 0,70 * 1,12 7. € 0,98, calculated using the formula: Price = Cost / (1 – Margin) or € 0,98 = € 0,78 / (1 - 0,2) 8.€ 0,10, using the formula: (Retail Price * VAT Rate) so (€ 0,98 * 0,1)

23 Export Pricing Problem 9. €1,08, using the formula: (Retail Price + VAT) so (€ 0,98 + € 0,10) 10. 9,20 Bahts, (Final Price * Exchange Rate) or €1,08 * 40 11. €130.000, using the formula: ((Price – Full Cost) * Order Volume) or ((€ 0,64- € 0,38) * 500.000) 12. €100.000, using the formula: ((Retail Price – Retailer’s Cost) * Order Volume) or ((€ 0,98-€ 0,78) * 500.000)

24 Export Pricing Problem Identify and explain two approaches the firm might use to avoid the price escalation experienced in this situation. 1.Reduce cost through lower quality materials 2.Reduce price resulting in lower profit margins 3.Change customs classification to lower tariffs 4.Shorten distribution channels to reduce intermediary markups 5.Produce in target country, eliminating tariffs, international shipping and insurance costs

Download ppt "Chapter Eleven Global Segmentation and Positioning MKT568 Global Marketing Management Dr. Fred Miller 3-1."

Similar presentations

Chapter Sixteen Global Advertising MKT 568 Global Marketing Management Dr. Fred Miller 3-1.

Chapter Sixteen Global Advertising MKT 568 Global Marketing Management Dr. Fred Miller 3-1.
©2003 South-Western Chapter 6 Version 3e1 chapter Segmenting and Targeting Markets 6 6 Prepared by Deborah Baker Texas Christian University.

©2003 South-Western Chapter 6 Version 3e1 chapter Segmenting and Targeting Markets 6 6 Prepared by Deborah Baker Texas Christian University.
Chapter Eleven Global Segmentation and Positioning Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,

Chapter Eleven Global Segmentation and Positioning Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,,
Chapter Fourteen Global Pricing MKT568 Global Marketing Management Dr. Fred Miller 3-1.

Chapter Fourteen Global Pricing MKT568 Global Marketing Management Dr. Fred Miller 3-1.
The Main Idea To ensure success, entrepreneurs need to understand the industry and the market.   They should define areas of analysis and conduct effective.

The Main Idea To ensure success, entrepreneurs need to understand the industry and the market.   They should define areas of analysis and conduct effective.
Differentiation and Positioning Differentiation: “The creation of tangible or intangible differences on one or two key dimensions between a focal product.

Differentiation and Positioning Differentiation: “The creation of tangible or intangible differences on one or two key dimensions between a focal product.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-1 International Business Environments and Operations, 13/e Part 5 Global Strategy,

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 12-1 International Business Environments and Operations, 13/e Part 5 Global Strategy,
Target Markets: Segmentation and Evaluation

Target Markets: Segmentation and Evaluation
Objectives Be able to define the three steps of target marketing: market segmentation, target marketing, and market positioning. Understand the major.

Objectives Be able to define the three steps of target marketing: market segmentation, target marketing, and market positioning. Understand the major.
Learning Goals Learn the three steps of target marketing, market segmentation, target marketing, and market positioning Understand the major bases for.

Learning Goals Learn the three steps of target marketing, market segmentation, target marketing, and market positioning Understand the major bases for.
Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed.
© 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

© 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Cultural Dynamics. National Differences in Culture F What is CULTURE? –shared system of values and norms that offer a design for living u Values: abstract.

Cultural Dynamics. National Differences in Culture F What is CULTURE? –shared system of values and norms that offer a design for living u Values: abstract.
1 Chapter 14 Marketing. 2 Learning Objectives Suggest how markets for international expansion can be selected, their demand assessed, and appropriate.

1 Chapter 14 Marketing. 2 Learning Objectives Suggest how markets for international expansion can be selected, their demand assessed, and appropriate.
© 2002 Pearson Education Canada Inc. 7-1 principles of MARKETING Chapter 7 Market Segmentation, Targeting, and Positioning for Competitive Advantage.

© 2002 Pearson Education Canada Inc. 7-1 principles of MARKETING Chapter 7 Market Segmentation, Targeting, and Positioning for Competitive Advantage.
Developing and Marketing Products

Developing and Marketing Products
Definition Market Segmentation:

Definition Market Segmentation:
SELECTING THE RIGHT TARGET MARKET Entrp 1: Lecture 4.

SELECTING THE RIGHT TARGET MARKET Entrp 1: Lecture 4.
Objectives Be able to define the three steps of target marketing: market segmentation, target marketing, and market positioning. Understand the major.

Objectives Be able to define the three steps of target marketing: market segmentation, target marketing, and market positioning. Understand the major.
7- 1 Copyright © 2012Pearson Education, Inc. Publishing as Prentice Hall i t ’s good and good for you Chapter Seven Customer-Driven Marketing Strategy:

7- 1 Copyright © 2012Pearson Education, Inc. Publishing as Prentice Hall i t ’s good and good for you Chapter Seven Customer-Driven Marketing Strategy:

Similar presentations

Ads by Google