copyright atomic dog publishing, 2002 international marketing segmentation, targeting, and...

Copyright Atomic Dog Publishing, 2002Copyright Atomic Dog Publishing, 2002

International Marketing Segmentation, Targeting, and PositioningDana-Nicoleta Lascu

Chapter 7


Chapter Objectives• Identify the rationale for adopting a target marketing strategy in

international markets

• Identify the requirements necessary for effective international market segmentation

• Introduce the concept of country attractiveness analysis and offer a blueprint for conducting the analysis

• Identify the bases for consumer segmentation and offer company application examples

• Describe the three targeting strategies used by companies worldwide

• Describe the six positioning strategies that international companies can use to position their brands in the minds of target consumers


International Target Marketing

• Identify consumer segments with similar traits• Select segments company can serve efficiently • Develop products tailored to each segment• Offer products to the target market:

Communicate traits that differentiate the product


International Segmentation

The process of identifying countries and/or consumers that are similar with regard to key traits, such as product-related needs and wants, that would respond well to a product and related marketing mix.

MUST BE performed at country level AND at consumer level.


Requirements for Effective International Segmentation

• Measurability• Substantiality• Stability over time• Accessibility• Actionability• Differential response


International Macro-Segmentation

• Market potential – indicators: Gross domestic product (GDP) per capita Industrial and agricultural sector statistics Market size and potential Consumer buying power Investment figures (FDI, other trade statistics)


International Macro-Segmentation, continued

• Political, legal and financial environment of country Ethnic conflict History of war engagement Antiforeigner sentiment Recent nationalization activities Legal ambiguity Trade barriers Exchange rate controls



• Marketing support infrastructure Availability and reliability of distribution and logistics

providers Availability of competent partners for strategic alliances Quality of telecommunication and transportation

infrastructure Availability of other service providers:

- Marketing research firms- Financial firms- Management consulting firms…



• Strength of brand – brand franchise• Degree of market fit with company policies,

goals, and resources


Micro-Segmentation

• Basis for Segmentation Demographic

- Age- Occupation- Education- Income- Ethnicity- Race- Nationality

- Life-cycle stage- Social class- Urbanization


Micro-Segmentation, continued

• Basis for Segmentation Psychographic: lifestyles, values, attitudes, interests,

opinions

- Hofstede dimensions: • Power-distance• Masculinity-femininity• Uncertainty avoidance• Individualism-collectivism

- Global segments:• Global teenagers• Global elite



• Basis for Segmentation Benefit Segmentation Geographic



• Basis for Segmentation Usage

- Nonusers- Occasional users- Medium users- Heavy users

User Status- User of competitors’ products- Ex-users- Potential users- First-time users- Regular users


Country Screening and Selection

• Assign importance score to each country screening criteria

• Evaluate country performance on each of the screening criteria

• Calculate country attractiveness score


Target Market Decisions

• Differentiated Identify or create market segments desiring different

product benefits and target each segment with a different brand and different marketing strategies

Example: Procter & Gamble


Target Market Decisions, continued

• Concentrated Select only one market segment and target it with a

single brand Example: Mont Blanc pens


Target Market Decisions, continued

• Undifferentiated Aim the product at the market with a single strategy

regardless of the number of market segments Example: powder milk, beans


Positioning the Brand

1) Identify competitors

2) Determine how they are perceived by consumers

3) Determine positioning in consumer’s minds

4) Analyze customers

5) Select positioning

6) Monitor position


Positioning the Brand, continued

• Attribute/Benefit• Price/Quality• Uses or Application• Product User• Product Class• Competition


Chapter Summary

• Rationales and requirements for adopting target marketing strategies in international markets

• Country attractiveness• Bases for consumer segmentation and company

application examples• The international targeting strategies • The positioning strategies

copyright atomic dog publishing, 2002 international marketing segmentation, targeting, and...

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