Segmentation, Targeting and Positioning in International Markets
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Presentation on theme: "Segmentation, Targeting and Positioning in International Markets"— Presentation transcript:
1 Segmentation, Targeting and Positioning in International Markets
2 Developing an international marketing strategy SegmentingTargetingPositioning
3 Reasons for Global Market Segmentation Country ScreeningGlobal Market ResearchEntry DecisionsPositioning StrategyMarketing Mix Policy
4 Type Of Segmentation Grouping Countries Segments within and across Foreign Markets
5 Bases for Country Segmentation DemographicsSocioeconomic Variablesstages of economic developmentPer capita incomeCulturePolitical ConditionsBehavior-Based SegmentationLife Style
6 GLOBAL INCOME AND POPULATION: 1995 % ofWorldPopulation% ofWorldGNPMarketGNP(billion)GNPPer CapitaPopulation(million)World (Total) $25, $4, ,Triad (Total) , ,North America* , ,Japan , ,EU , ,Other High Income , <1Upper 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- OthersUpper 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% ofworldGNPwith PPP% ofworldGNPGNPPerCapitaGNPPer Capitawith PPPGNPwith PPPMarketGNP(billion)World (Total) $25, $30, $4, $5,863Triad (Total) , , , ,511North America* ,253 7, , ,877Japan ,247 2, , ,636EU ,619 6, , ,502Other High Income , ,904Upper Middle Income 2,239 3, , ,604Lower Middle Income 2,403 7, , ,126Low Income , ,370*Not including Mexico
9 Standard of Living Number of people per: Life Expectancy Schooling (av. years)DoctorTVPhoneMcDonald’sChina ,000,000Hong Kong ,000Japan ,000U.S ,000Russia ,000,000Sources: WEFA, AsiaWeek, McDonald’s, The New York Times
10 Successful Economic Union Requirements Economic Compatibility Political Compatibility Geographic Proximity Social CompatibilityWeakness in some must be balanced by strengths in others
11 Market Groups Patterns of Multinational Cooperation Regional Cooperation GroupsFree-Trade AreaCustoms UnionCommon MarketPolitical Union
12 New Multinational Market Groups or Trading Blocks of the 21st Century l European Unionl European Economic Area (EC and EFTA)l North American Free Trade Areal Southern Cone-Mercosurl Asean Free Trade Area (AFTA)l Commonwealth of Independent States (CIS)l Central European Free Trade Area (CEFTA)
13 European Trade AreasEuropean Community (EC) European Free Trade Area (EFTA)Belgium Italy Austria* LiechtensteinDenmark Luxembourg Finland* Norway*France The Netherlands Iceland* Sweden*Germany Portugal SwitzerlandGreece SpainIreland United KingdomEC Countries and EC Countries and AustriaAustria Poland*** FinlandFinland Sweden Hungary*** IcelandNorwaySwedenEuropean Unity (EU) European Economic Area (EEA)* Five founding members.** Awaiting membership.*** Seeking membership.
14 A Comparison of the EU and NAFTA Population GNP GNP (millions) ($ trillions)* (per capita)*EU $ 7.79 $ 21,442NAFTA ,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 MarketsPopulation 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.
21 Properties of a Market Segment MeasurableSizableAccessibleActionableCompetitive IntensityGrowth Potential
22 Bases for Global Segments GeographicDemographicPsychographicBehaviorBenefits
23 Average Monthly Expenditures for Chinese Households National and Urban Areas - 1994 National Urban AreasFood (includes eating out) $22.10 $38.00SavingsClothingChild's EducationHome (includes Rent & Utilities)Daily Goods other than FoodMedical Expenses & DrugsEntertainmentSOURCE: Gallup China.
26 Life StyleExhibit : Typology of European Car Market
27 Roper Starch Worldwide Global Study 40,000 consumers in 40 countriesShopping StylesDeal Makers (29%) - love the buying processPrice Seekers (27%) - place primary value on the product that they are buyingBrand Loyalists (23%) - purchase name brands and remain true to themLuxury Innovators (21%) - seek new, prestigious brands
28 How the World ShopsSource: “How the World Shops,” Advertising Age, June 5, 1995, p.3.
29 How the World ShopsSource: “How the World Shops,” Advertising Age, June 5, 1995, p.3.
30 How the World ShopsSource: “How the World Shops,” Advertising Age, June 5, 1995, p.3.
31 International Positioning Strategies Global Positioning and Segmentation StrategiesUniversal Segment / Uniform Positioning ThemeUniversal Segment / Different Positioning ThemesDifferent Segment / Different Positioning Themes