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International Marketing

Segmentation, Targeting, and


Positioning
Dana-Nicoleta Lascu
Chapter 7

Copyright Atomic Dog Publishing, 2002

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

Copyright Atomic Dog Publishing, 2002

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

Copyright Atomic Dog Publishing, 2002

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.

Copyright Atomic Dog Publishing, 2002

Requirements for Effective


International Segmentation

Measurability
Substantiality
Stability over time
Accessibility
Actionability
Differential response

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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)

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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

Copyright Atomic Dog Publishing, 2002

International Macro-Segmentation,
continued
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

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International Macro-Segmentation,
continued
Strength of brand brand franchise
Degree of market fit with company policies,
goals, and resources

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Micro-Segmentation
Basis for Segmentation

Demographic
-

Age
Occupation
Education
Income
Ethnicity
Race
Nationality

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- 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

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Micro-Segmentation, continued
Basis for Segmentation

Benefit Segmentation
Geographic

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Micro-Segmentation, continued
Basis for Segmentation

Usage
-

Nonusers
Occasional users
Medium users
Heavy users

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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

Copyright Atomic Dog Publishing, 2002

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

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Target Market Decisions, continued

Concentrated

Select only one market segment and target it with a


single brand
Example: Mont Blanc pens

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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

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Positioning the Brand


1)
2)
3)
4)
5)
6)

Identify competitors
Determine how they are perceived by consumers
Determine positioning in consumers minds
Analyze customers
Select positioning
Monitor position

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Positioning the Brand, continued

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

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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