Global consumer segments -- consumers who associate similar meanings with certain places,people, and things, have developed worldwide and with it a global consumer culture. A global consumer culture is often attributed to the diffusion of entertainment from the U.S. MTV reaches viewers anywhere in the world, and among teens, 8 out of their top 10 activities are media related. The direct outcome of this is “global mall”.
Companies philosophies can be described as ethnocentric, polycentric,regiocentric, and geo centric Geocentric orientation Company strategies that are consistent with the belief that the entire world, without national and regional distinctions, constitutes a potential market with identifiable, homogeneous segments that need to be addressed differentially.
Increase laddering of control and risk Indirect exporting means that the company sells its products to intermediaries in the company’s home country who, in turn, sell the products overseas The licensor shares the the brand name, technology, and know-how with the licensee in return for royalty. Franchising is the main international entry mode for the service industry. The franchisor control more of the brand image, through control of the advertising Typical arrangement in developing countries. Government encourage to develop local expertise. A company created with 3 or more companies. Airbus. Wholly owned subsidiary: -company can afford cost - willing to commit to the market in the long term - local government allows it
Market segmentation involves identifying countries and consumers that are similar Measurability: estimated size of market segment Sustainability: the extent to which the market is large enough to warrant investment Stability: the extent to which preferences are stable Accessibility: easy communication Actionability: target’s responsiveness to marketing tactics Differential: the extent to which different markets respond differently
The purpose is to identify clusters who respond the same way to the company’s marketing mix.
Product diffusion refers to the manner in which the product is adopted by consumers worldwide In general, a number of attributes of an innovation are likely to accelerate the rate of adoption of a product or service. First, new product or service must offer a relative advantage compared with the other offerings available on the market and compatible with the needs of the consumers. In addition, the product or service must be observable, or communicable to others, and have a high trial potential. New products tend to be adopted at different rates in different international markets. Countries where the product is first introduced are called lead countries, and countries where it is adopted later are called lag countries. Generally speaking, the diffusion rate tends to be faster in lag countries, as consumers learn from the experience of adopters in lead countries.
Target customers can be segmented based on the manner in which they adapt new products throughout the respective lifecycle 2.5% are innovators, risk takers who can afford to pay higher price charge by the company during the introduction 13.5% are early adopters, tend to be opinion leaders, and risk takers, but with greater discrment Early Majority, 34% of consumers, are more risk averse, but enjoy the status of being the first in their peer group to buy the product Late Majority, 34% of consumers who buy products only if the products are widely popular. Risk averse. Laggards, 16% of the market, adopt the product in late maturity.
Gray markets are products purchased in a low priced market and diverted to other markets by an unauthorized distribution system
The extend of availability Reliability - the probability of the media to air messages on time Restriction - legal or self-imposed
Charge Similar Prices Worldwide Methods of Combating Parallel imports Create products For low markets That are not as Attractive or are Not a perfect fit With an up market Litigate Complicate the Repair and Servicing Inform consumers About gray market goods