1. International consumers: segmentation

2. Segmentation ‘the process of identifying specific segments - whether they be country groups or individual consumer groups - of potential customers with homogeneous attributes who are likely to exhibit similar buying behaviour’ ( Hassan and Katsanis 1992)

3. Part of a key marketing analysis process Segmentation Targeting Positioning

4. Segmentation methods/variables (Keegan and Schlegelmilch 2001) Demographic Psychographic Behavioural Benefits sought Geographic Cultural Usually linked into a profile

5. Demographic Age, gender, population size, income, education, lifecycle stage Beware! Not all statistics are presented in the same way. E.g. definitions of socio/economic groups differ

6. Demographic segmentation Age is commonly used to identify global segments E.g. global teenagers 12 to 19 linked to: Fashion Lifestyle Music Brand preferences

7. Psychographic segmentation Based on : Attitudes and values Lifestyle ( behaviour determined by attitudes and values) Data collected on activities, interests and opinions (AIO studies)

8. E.g. YUPPI Young Upwardly-mobile Person

9. E.g. DINKY Double income No kids

10. SINBAD Single No blokes and Desperate

11. Global Scan*:AIO study ( 18 countries in Triad regions) Strivers (26%): young, ambitious, materialistic, hedonistic Achievers (22%): older, affluent, successful, status conscious, quality focused Pressured (13%): women, family/life/financial problems Adapters (18%): older, content, value-centred, open about change Traditionals (16%): ’rooted to the past’, cling to country’s heritage and culture *Backer, Spielvogel and Bates

12. Behavioural segmentation Who buys it? How often? What for? Who for? Who doesn’t buy it? Who no longer buys it?

13. Benefit segmentation What added value do I get? E.g. Volvo offers safety Rolls Royce offers status Products are bundle of benefits not physical objects

14. Multiple-attribute segmentation E.g. A watch Segmentation variableStyle consciousFun oriented Benefit soughtSymbol of statusTime keeping/Games GenderMaleMale and female Age25-4014-18 OccupationProfessionalsSchool students Income£30k+Parental Usage rateDaily Lifestyle Attitudes and values Fast moving, Leisure: Sports, cinema Materialistic, international School activities Video games, music Local culture orientation LocationGlobalMulti-domestic

15. Targeting 2 steps: Assessing the opportunity in each segment Selecting the target segment(s)

16. Assessing the opportunity – the criteria 1. Market: size and growth: In one country (China) Across the globe (the MTV generation) 2. The competition: How strong? (Coke v Pepsi –100% share in Russia) Are there gaps? What are their weaknesses? (Japanese 4-year PLC) 3. Compatibility and feasibility Resources? Organisational structure? Competitive advantage?

17. Positioning Defining a product/service/organisation in terms of its similarity/dissimilarity to competitors Aims to establish a unique positioning which meets needs of defined market segments (Ries and Trout 1981) ‘Positioning…is not what you do to a product…(it) is what you do to the mind of the prospect’ (Ries and Trout)

18. The positioning ‘Positioning strategy distinguishes a company’s service offers from those of its competitors’ (Palmer) ‘Positioning puts a firm in a sub- segment of its chosen market’ (Palmer)

19. BMW’s European positioning 1992