“The performance of business activities designed to plan, price, promote and direct the company’s flow of goods and services to consumers or users in more than one nation for a profit”
Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. Because each segment is fairly homogeneous in their needs and attitudes, they are likely to respond similarly to a given marketing strategy.
The process of identifying countries and/orconsumers that are similar with regard to key traits,such as product-related needs and wants, thatwould respond well to a product and relatedmarketing mix.
Marketing concepts are universal (goal is to make a profit) Difference is that in international marketing ALL environments have to be taken into consideration when the marketing plan is developed and executed Must consider the legal environment, governmental controls, climate & weather, cultural beliefs, buyer behavior… (uncontrollable elements)
Whyinternational marketing is so important: Companies can no longer ignore the effects of internationally marketing Competition no longer exists just from domestic companies . In order to sustain profitability and growth margins of the past, companies have to look for alternative methods of marketing their products and services “In a study conducted on U.S. manufacturing companies of all sizes, it was found that multinational companies outperformed their strictly domestic U.S. counterparts by more than twice as fast in sales and earned much greater returns on equity and assets..”
Prevailing trends that have the most impact on international business in the future: 1. Growth of the World Trade Organization and region free trade areas (NAFTA, European Union..) 2. Trend of developing countries (such as Asia, Latin America, Eastern Europe) accepting the “free market system” 3. Impact of the internet and other global media companies (CNN) 4. Mandate for companies to properly manage resources
>Measurability >Actionability size, purchasing power, and profiles of effective programs can be designed for attracting and serving the segments. segments can be measured.>Differential responsesegments are conceptually distinguishableand respond differently to different marketingmix elements and programs>Substantiality segments are large or profitable enough to serve.>Stability over time>Accessibilitysegments can be effectively reached and served
Benefits of IMS Allows the company to generalise their marketing research conclusions. Entry strategy and marketing mix across a few segments instead of every market. Helping to allocate scarce resources. Determining the company’s positioning strategy.
• Regional • Global segmentation may segmentation is • But if they want or be used when the need to completelyused when there is a similarity ingroup of consumers localise they may needs/preferences choose uniquewith common needs only extends acrossthat crosses national segments, which the region or several take the preferences borders. This kind countries. Firms of segment is of a segment within will often use this one country. This is usually the youth when they want to segment, the usually necessary capitalise on the for products such as affluent segment or financial savings of related to internet news services or global segmentation speciality foods services but would like to localise moreGLOBAL UNIQUE REGIONAL
International markets can therefore be segmented in a two –step process( a hierarchy of segment).first, the “macro” segment composed of individual or groups of countries can be identified based on national market characteristics. Then within each macro- segment the market can be further sub-divided based on consumer characteristics.
• To determine the method by the world market (ie, determine the subdivision1 standards); • The classification criteria of myopia, all with common feature of the country2 designated as a group, constitute a sub-market; • To understand the needs of enterprise resources to meet the conditions of3 each What are the requirements; • According to the characteristics of the enterprise to see if satisfied by the4 Company or which sub-markets which the most appropriate and advantageous; • From the theoretical analysis, to meet the needs of the target market, measures to be taken;5 • To this theory, the strategies and methods to be modified according to the6 actual situation and adjust
Micro-enterprises to enter a foreign market segments, due to the country is vastly different customer needs, enterprises can not meet all the needs of customers in the country, but can only be broken down into several sub-market, to meet one or more sub-market demand, meaning that international market segmentation is called micro-segments. Micro-segmentation is similar to the domestic market segments, namely, when the company decided to enter an overseas market, it will find that there are differences in the local market customer needs, should be further subdivided into a number of markets to choose one or several sub-market as the goal market. Micro-segmentation of the standard international market and domestic market segments in the micro-micro-segmentation is the same, the standards are basically the same subdivision.
(A) of the consumer market segmentation criteria • geographic location • economic factors • political & legal factors • cultural factors • intermarket segmentation (segment consumers with similar profile but different countries)
(B) Industrial market segments: Segmented based on the characteristics that - Location - Company type - Behavioral characteristics
As of July 1, 2011, the companys operations are categorized into two "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the companys 2011 Annual Report. Beauty segment Grooming segment Health Care segment Snacks & Pet Care segment Fabric Care & Home Care segment Baby Care & Family Home Care segment
One of the major problems confronting theinternational marketing manager faced with thebreadth and diversity of international markets is howto identify potential target segments, and whatinformation is to collect for this purpose. A systematictwo- step segmentation procedure /approach can bebetter to depend for solving these issues.