1. Chapter 7 Going Global

2. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Global Market Segmentation –Defined as “the process of identifying specific segment of potential customers with homogeneous attributes who are likely to exhibit similar buying behavior

3. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Demographic Segmentation –Based on measurable characteristics of populations, such as income, population, age distribution, gender, education, and occupation –Global Teenagers Young people between the ages of 12 and 19 –Global Elite Older, more affluent consumers who are well traveled and have money to spend on prestigious products with an image of exclusivity

4. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Psychographic Segmentation Divides Buyers Into Different Groups Based on:

5. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Behavior Segmentation –Focuses on whether people buy and use a product, how often, and how much they use or consume –Usage rate category Heavy, medium, light, and nonuser –User status category Potential users, nonusers, ex-users, regulars, first- timers, and users of competitors’ products

6. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Global Targeting Targeting –The act of evaluating and comparing the identified groups and then selecting one or more of them as the prospect with the highest potential

7. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 9 W’s used to create a Product-market Profile 1.Who buys our product? 2.Who does not buy our product? 3.What need or function does our product serve? 4.What problem does our product solve? 5.What are customers currently buying to satisfy the need for which our product is targeted?

8. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 9 W’s used to create a Product-market Profile (cont’d) 6.What price are they paying for the product they are currently buying? 7.When is our product purchased? 8.Where is our product purchased? 9.Why is our product purchased?

9. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Evaluating Market Segments Segment Size and Growth Potential –Analyze current sales, growth rates and expected profitability for various segments Potential Competition –Consider effects of: competitors, availability of substitute products and, the power of buyers & suppliers. Compatibility and Feasibility –Does the product create value for target customers? Is adaptation required?

10. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Selecting a Target Market Strategy Standardized Global Marketing –Analogous to mass marketing in a single country. Also known as undifferentiated targeted marketing. (e.g. Coca-Cola) Concentrated Global Marketing –Involves devising a marketing mix to reach a niche. A niche is a single segment of the global market (e.g. Chanel) Differentiated Global Marketing –Also known as multisegment targeting, this approach entails targeting two or more distinct market segments with multiple mix offerings (e.g. Range Rover and Land Rover Discovery)

11. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 Choosing a Positioning Strategy Product’s Position –The act of locating a brand in customers’ mind over and against other products in terms of product attributes and benefits that the brand does or does not offer.

12. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 General Strategies Used to Position Products Attitude or Benefit –Volvo (safety) Quality and Price –AMEX (upscale) Use or User –Harley Davidson (baby boomers) Competition –Implicit or explicit reference to competition

13. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 General Strategies Used to Position Products High-Tech Products –Usually purchased based on physical product features –Three categories of high-tech products Technical products - PCs Special-interest products – Sega video games Demonstrable products – Products that speak for themselves

14. 2002 – Chapter 7Andrew P. Yap - FIU – MAR 4156 General Strategies Used to Position Products High-Touch Products –Requires less emphasis on specialized information and more emphasis on image –Three categories of high-touch products 1.Products that solve a common problem – solving life’s little problems (ad showing friends at beach) 2.Global village products – Designer fashions 3.Products with a universal theme - Harley Davidson