Presentation on theme: "Global Marketing Management A European Perspective"— Presentation transcript:
1 Global Marketing Management A European Perspective Global Segmentation,Targeting and PositioningWarren J. KeeganBodo B. Schlegelmilch
2 Overview Global Market Segmentation Global Targeting criteria: geographic, demographic, psychographic, behaviour, and benefit segmentationGlobal TargetingSelecting a Global Target Market StrategyGlobal Product PositioningHigh-Tech or High-Touch PositioningSummary
3 Learning ObjectivesTo understand the objectives and usefulness of global market segmentationTo know the approaches to global market segmentation using different segmentation criteria to define target groupsTo learn different ways of positioning products in global markets
4 Global Market Segmentation ... is the process of dividing the world marketinto distinct subsets of customersthat have similar needs(eg country groups or individual interest groups).
5 Criteria for Global Market Segmentation Geographic segmentationgeographic subsetsDemographic segmentationeg age, gender, income, occupationPsychographic segmentationBehaviour segmentationBenefit segmentation
6 Psychographic Segmentation ... is based on attitudes, values and lifestyle... is measured through extensive item batteries which cover activities, interests and opinions (AIO-studies)lifestyle surveys, eg bythe Research Institute of Social Change (RISC)the Centre de Communication Avancé (CCA) andthe Values and Life Styles (VALS) by SRI International
7 Psychographic Profiles of Porsche’s American Customers DescriptionCategory% of all ownersTop GunsDriven and ambitious; care about power and control; expect to be noticed27%Old money; a car—even an expensive one—is just a car, not an extension of one’s personalityElitists24%Ownership is what counts; a car is a trophy,a reward for working hard; being noticed doesn’t matterProud Patrons23%Cosmopolitan jet setters and thrill seekers;car heightens excitementBon Vivants17%Car represents a form of escape;don’t care about impressing others;may even feel guilty about owning carFantasists9%Source: ALEX III Taylor, „Porsche Slices up its Buyers“, Fortune, 16 January 1995, p. 24
8 Backer Spielvogel & Bates’ Global Scan (BSB Global Scan ) ... encompasses 18 countries, mostly in the TriadThe researchers studiedconsumer attitudes and values,media viewership/readership,buying patterns,product use.5 global psychographic segments represent 95% of the adult populations in the countries surveyed.
10 D’arcy Massius Benton & Bowles’ Euroconsumer Study ... focuses on Europe... identified four lifestyle groups:The first two groups represent the elite,the latter two mainstream European consumers.Successful idealistsAffluent materialistsComfortable belongersDisaffected survivors
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 Behaviour and Benefit Segmentation Behaviour segmentationFocus on whether and how much people buy or use a product;eg usage rates: heavy , medium, and light users, and nonuserseg user status: potential users, nonusers, ex-users, regulars, first timers, and users of competitors’ productsBenefit segmentationToday, 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 Global Targeting After markets have been segmented, targeting aims at evaluating and comparing the indentifiedsegments in order to select one or more asprospect(s) with the highest potential.
14 Criteria for Targeting As in single-country targeting, the most important criteria are:Current size of the segment and anticipated growth potentialCompetitive intensity and potential competitionCompatibility with the company’s overall objectives and the feasibility of successfully reaching a designated target
15 Selecting a Global Target Market Strategy standardised global marketingi.e. mass marketing, the same marketing mix for a broad market of potential buyers; e.g. Revlonconcentrated global marketingtargeted at a single segment of the global market, e.g. Winterhalter (German dishwashers for hotels)differentiated global marketing2 or more different segments; e.g. VW (cars for various target groups: Porsche, Skoda, VW Golf etc.)
16 Global Product Positioning is the location of a product in the mind of the consumeris partly controlled by the marketer (marketing mix) and partly not!is visualised by a “positioning map”2 dimensionsor multidimensional (MDS)
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 High-Tech Positioning Positioning stragtegy for products which are purchased on concrete product features; buyers typically already possess or wish to acquire considerable technical informationSuitable fortechnical products, such as computers or chemicals,special-interest products, such as sporting goods,products that can be demonstrated easily.; eg polaroid cameras
19 High-Touch Positioning The emphasis lies more on the product’s image; specialised information appears of minor relevanceSuitable forproducts that solve a common problem; e.g., soft drinksglobal village products, such as cosmetics or fashionproducts that use universal themes; e.g. „heroism“ in Levis ads (jeans)
20 SummaryBefore a company expands to foreign markets it must analyse the global environment.Global market segmentation aims at identifying similarities and differences of potential customers.Global targeting: The market segments are evaluated and compared and an appropriate targeting strategy is developed.To reach the targeted market segment(s) a positioning strategy must be chosen; in a global context high-tech or high-touch positioning are promising.