1. Segmentation, Targeting and Positioning in International Markets

2. Developing an international marketing strategy
Segmenting
Targeting
Positioning

3. Reasons for Global Market Segmentation
Country Screening
Global Market Research
Entry Decisions
Positioning Strategy
Marketing Mix Policy

4. Type Of Segmentation Grouping Countries
Segments within and across Foreign Markets

5. Bases for Country Segmentation
Demographics
Socioeconomic Variables
stages of economic development
Per capita income
Culture
Political Conditions
Behavior-Based Segmentation
Life Style

6. GLOBAL INCOME AND POPULATION: 1995
% of
World
Population
% of
World
GNP
Market
GNP
(billion)
GNP
Per Capita
Population
(million)
World (Total) $25, $4, ,
Triad (Total) , ,
North America* , ,
Japan , ,
EU , ,
Other High Income , <1
Upper Middle Income 2, ,
Lower Middle Income 2, , ,
Low Income ,
Unavailable Data N/A N/A N/A
*Not including Mexico

7. Country Income Segmentation
High Income (Advanced Countries)
- Triad
- Others
Upper Middle Income (NIC's)
Lower Middle Income (DC's)
Low Income (LDC's)
Basket Cases (BC's)
+ $14,000
+ $2,500
+ $500
< $500

8. GLOBAL INCOME AND POPULATION: 1995
Purchasing Power Parity Compared
% of
world
GNP
with PPP
% of
world
GNP
GNP
Per
Capita
GNP
Per Capita
with PPP
GNP
with PPP
Market
GNP
(billion)
World (Total) $25, $30, $4, $5,863
Triad (Total) , , , ,511
North America* ,253 7, , ,877
Japan ,247 2, , ,636
EU ,619 6, , ,502
Other High Income , ,904
Upper Middle Income 2,239 3, , ,604
Lower Middle Income 2,403 7, , ,126
Low Income , ,370
*Not including Mexico

9. Standard of Living Number of people per: Life Expectancy Schooling
(av. years)
Doctor TV
Phone
McDonald’s
China ,000,000
Hong Kong ,000
Japan ,000
U.S ,000
Russia ,000,000
Sources: WEFA, AsiaWeek, McDonald’s, The New York Times

10. Successful Economic Union Requirements
 Economic Compatibility
 Political Compatibility
 Geographic Proximity
 Social Compatibility
Weakness in some must be balanced by strengths in others

11. Market Groups Patterns of Multinational Cooperation
Regional Cooperation Groups
Free-Trade Area
Customs Union
Common Market
Political Union

12. New Multinational Market Groups or Trading Blocks of the 21st Century
l European Union
l European Economic Area (EC and EFTA)
l North American Free Trade Area
l Southern Cone-Mercosur
l Asean Free Trade Area (AFTA)
l Commonwealth of Independent States (CIS)
l Central European Free Trade Area (CEFTA)

13. European Trade Areas
European Community (EC) European Free Trade Area (EFTA)
Belgium Italy Austria* Liechtenstein
Denmark Luxembourg Finland* Norway*
France The Netherlands Iceland* Sweden*
Germany Portugal Switzerland
Greece Spain
Ireland United Kingdom
EC Countries and EC Countries and Austria
Austria Poland*** Finland
Finland Sweden Hungary*** Iceland
Norway
Sweden
European Unity (EU) European Economic Area (EEA)
* Five founding members.
** Awaiting membership.
*** Seeking membership.

14. A Comparison of the EU and NAFTA
Population GNP GNP (millions) ($ trillions)* (per capita)*
EU $ 7.79 $ 21,442
NAFTA ,662
* U.S. $ 1992.

15. Common Traits of Big Emerging Markets
l Are physically large.
l Have significant populations.
l Represent considerable markets for a wide range of products.
l Have strong rates of growth or the potential for significant growth.
l Have undertaken significant programs or economic reform.
l Are of major political importance within their regions.
l Are "Regional Economic Drivers".
l Will engender further expansion in neighboring markets as they grow.

16. Big Emerging Markets
Population GDP GDP Trade*
(millions) ($ billions) (per capita) ($ billions)
Asia China 1,188.0 $ $ 367 $ Indonesia India South Korea ,
Latin America Mexico ,
Argentina ,
Brazil ,
Africa South Africa ,
Europe Poland , Turkey ,
Possible Additions Colombia , Thailand , Venezuela , Vietnam
* Imports and exports.
SOURCES: "Big emerging Markets," Business America, Special Issue 1994, pp and for additional information, see "Indicators of Market Size for 115 Countries," Crossborder Monitor, August 31,1994.

17. “Think” and “Feel” Country Clusters

18. Plot of Concentration Versus Category Growth: Chocolate Industry

19. Chocolate Market
Two-Cluster Solution

20. Three-Cluster Solution
Chocolate Market
Three-Cluster Solution

21. Properties of a Market Segment
Measurable
Sizable
Accessible
Actionable
Competitive Intensity
Growth Potential

22. Bases for Global Segments
Geographic
Demographic
Psychographic
Behavior
Benefits

23. Average Monthly Expenditures for Chinese Households National and Urban Areas - 1994
National Urban Areas
Food (includes eating out) $22.10 $38.00
Savings
Clothing
Child's Education
Home (includes Rent & Utilities)
Daily Goods other than Food
Medical Expenses & Drugs
Entertainment
SOURCE: Gallup China.

24. Y&R’s Cross-Cultural Consumer Characterizations (4Cs)

25. Global Scan Segmentation Study

26. Life Style
Exhibit : Typology of European Car Market

27. Roper Starch Worldwide Global Study
40,000 consumers in 40 countries
Shopping Styles
Deal Makers (29%) - love the buying process
Price Seekers (27%) - place primary value on the product that they are buying
Brand Loyalists (23%) - purchase name brands and remain true to them
Luxury Innovators (21%) - seek new, prestigious brands

28. How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.

29. How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.

30. How the World Shops
Source: “How the World Shops,” Advertising Age, June 5, 1995, p.3.

31. International Positioning Strategies
Global Positioning and Segmentation Strategies
Universal Segment / Uniform Positioning Theme
Universal Segment / Different Positioning Themes
Different Segment / Different Positioning Themes

32. Global Positioning & Segmentation Strategies