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Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Global Segmentation, Targeting and Positioning.

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Presentation on theme: "Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Global Segmentation, Targeting and Positioning."— Presentation transcript:

1 Global Marketing Management A European Perspective Warren J. Keegan Bodo B. Schlegelmilch Global Segmentation, Targeting and Positioning

2 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 2 Overview zGlobal Market Segmentation ycriteria: geographic, demographic, psychographic, behaviour, and benefit segmentation zGlobal Targeting zSelecting a Global Target Market Strategy zGlobal Product Positioning yHigh-Tech or High-Touch Positioning zSummary

3 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 3 Learning Objectives zTo understand the objectives and usefulness of global market segmentation zTo know the approaches to global market segmentation using different segmentation criteria to define target groups zTo learn different ways of positioning products in global markets

4 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 4 Global Market Segmentation... is the process of dividing the world market into distinct subsets of customers that have similar needs (eg country groups or individual interest groups).

5 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 5 Criteria for Global Market Segmentation zGeographic segmentation ygeographic subsets zDemographic segmentation yeg age, gender, income, occupation zPsychographic segmentation zBehaviour segmentation  Benefit segmentation

6 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 6 Psychographic Segmentation z... is based on attitudes, values and lifestyle z... is measured through extensive item batteries which cover activities, interests and opinions (AIO-studies) zlifestyle surveys, eg by ythe Research Institute of Social Change (RISC) ythe Centre de Communication Avancé (CCA) and ythe Values and Life Styles (VALS) by SRI International

7 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 7 Psychographic Profiles of Porsche’s American Customers Category % of all owners Top Guns 27% Driven and ambitious; care about power and control; expect to be noticed Elitists24% Old money; a car—even an expensive one—is just a car, not an extension of one’s personality Proud Patrons23% Ownership is what counts; a car is a trophy, a reward for working hard; being noticed doesn’t matter Bon Vivants17% Cosmopolitan jet setters and thrill seekers; car heightens excitement Fantasists9% Car represents a form of escape; don’t care about impressing others; may even feel guilty about owning car Description Source: ALEX III Taylor, „Porsche Slices up its Buyers“, Fortune, 16 January 1995, p. 24

8 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 8 Backer Spielvogel & Bates’ Global Scan (BSB Global Scan ) z... encompasses 18 countries, mostly in the Triad zThe researchers studied yconsumer attitudes and values, ymedia viewership/readership, ybuying patterns, yproduct use.  5 global psychographic segments represent 95% of the adult populations in the countries surveyed.

9 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 9 The Target Groups of BSB’s Global Scan

10 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 10 D’arcy Massius Benton & Bowles’ Euroconsumer Study z... focuses on Europe z... identified four lifestyle groups: yThe first two groups represent the elite, ythe latter two mainstream European consumers.  Successful idealists  Affluent materialists  Comfortable belongers  Disaffected survivors

11 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 11 Europanel’s Eurostyles Source: adapted from Josef Mazanec, “Exporting Eurostyles to the USA,” International Journal of Contemporary Hospitality Management, 5,4 (1993): p.4

12 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 12 Behaviour and Benefit Segmentation zBehaviour segmentation Focus on whether and how much people buy or use a product; eg usage rates: heavy, medium, and light users, and nonusers eg user status: potential users, nonusers, ex-users, regulars, first timers, and users of competitors’ products zBenefit segmentation Today, consumers basic needs are fulfilled. Therefore, consumers seek additional value from purchase decisions; eg cars: in addition to movement buyers seek personal safety, image, superior engine power (speed) etc.

13 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 13 Global Targeting After markets have been segmented, targeting aims at evaluating and comparing the indentified segments in order to select one or more as prospect(s) with the highest potential.

14 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 14 Criteria for Targeting As in single-country targeting, the most important criteria are: zCurrent size of the segment and anticipated growth potential zCompetitive intensity and potential competition zCompatibility with the company’s overall objectives and the feasibility of successfully reaching a designated target

15 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 15 Selecting a Global Target Market Strategy zstandardised global marketing yi.e. mass marketing, the same marketing mix for a broad market of potential buyers; e.g. Revlon zconcentrated global marketing ytargeted at a single segment of the global market, e.g. Winterhalter (German dishwashers for hotels) zdifferentiated global marketing y2 or more different segments; e.g. VW (cars for various target groups: Porsche, Skoda, VW Golf etc.)

16 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 16 Global Product Positioning zis the location of a product in the mind of the consumer zis partly controlled by the marketer (marketing mix) and partly not! zis visualised by a “positioning map” y2 dimensions yor multidimensional (MDS)

17 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 17 Positioning Map of American Fast-Food- Restaurants in the Mind of Consumers Source: adapted from James H. Myers, Segmentation and Positioning for Strategic Marketing Decisions (American Marketing Association, Chicago, 1996), S. 187

18 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 18 High-Tech Positioning zPositioning stragtegy for products which are purchased on concrete product features; buyers typically already possess or wish to acquire considerable technical information zSuitable for ytechnical products, such as computers or chemicals, yspecial-interest products, such as sporting goods,  products that can be demonstrated easily.; eg polaroid cameras

19 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 19 High-Touch Positioning zThe emphasis lies more on the product’s image; specialised information appears of minor relevance zSuitable for yproducts that solve a common problem; e.g., soft drinks yglobal village products, such as cosmetics or fashion yproducts that use universal themes; e.g. „heroism“ in Levis ads (jeans)

20 Keegan/Schlegelmilch Global Marketing Management: A European Perspective Chapter 7 / 20 Summary zBefore a company expands to foreign markets it must analyse the global environment. zGlobal market segmentation aims at identifying similarities and differences of potential customers. zGlobal targeting: The market segments are evaluated and compared and an appropriate targeting strategy is developed. zTo reach the targeted market segment(s) a positioning strategy must be chosen; in a global context high-tech or high-touch positioning are promising.


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