What is Segmentation?
Standardization VS. Adaptation: Target Market Strategy
Defining The Teenage Years
Global Teen Segments
Standardization VS. Adaptation: In the Teen world
USA & Brazilian Teens
Chinese, Thai and Indian Teens
“Do Teenagers in Beijing Really Tend to Emulate New
USA and Asian Teenagers Using Hofstede’s Cultural
WHAT IS SEGMENTATION?
Market Segmentation has been defined as the ability to
divide a market into distinct groups of buyers, who might
require separate products or marketing mixes.
Global Market Segmentation is the process of identifying
specific segments, whether by country or individual consumer
groups, of potential customers with homogenous attributes,
who are likely to share similar attributes and responses to a
company’s marketing mix.
Target Marketing calls for three major steps, having market
segmentation as step, one and then tackling two other
Market targeting is the evaluation of a segment’s attractiveness, and
selecting one or more of the markets segment to enter.
Market positioning is the process when the firm seeks to formulate a
competitive position for a product or a detailed marketing mix.
(Keegan & Green, 2005) (Hooley, Piercy & Nicoulaud, 2008) (Kumar & Nagpal, 2001) (McDonald & Dunbar, 2004)
WHAT IS SEGMENTATION? CONT.
Basis for Market Segmentation
Geographic • Is linked to a specific country, region or
Demographic • Is based upon measurable characteristics,
Segmentation such as; income, population and age...etc.
Psychographic • Is grouping people in terms of values,
Segmentation attitudes and lifestyle.
Behavior •Is measured upon a scale of whether people
buy or consume this product, and their
Segmentation behavioral attitudes towards the product.
Benefit • Deals with the benefits sought by
Ethnic • Is the consideration of all major ethnic
Segmentation groups when conducting a market mix.
(Michman, Mazze & Greco, 2003) (Keegan & Green, 2005) (McDonald & Dunbar, 2004)
STANDARDIZATION VS. ADAPTATION
TARGET MARKET STRATEGY OPTIONS
Creating the same marketing mix for a Tailoring the marketing mix to suit the
broad range of potential buyers. specific needs and wants demanded by
Known as undifferentiated target Having to deal with each variable as an
marketing. independent one.
Based on the premise that a mass Conducting R&D strategies to target
market exists around the world. precise needs.
Standardised elements in the The most influential variables are
marketing mix. country, culture, age, religion and
Products available in maximum Up-to-standards product line with a
numbers with low production costs. higher production cost.
Globalization Global localization
Developing standardised products Mixing standardization and
marketed worldwide with a customization in a way that minimizes
standardized marketing mix costs while maximizing satisfaction
Essence of mass marketing Essence of segmentation
Think globally, act locally
(Theodosiou & Leonidou, 2003) (McDonald & Dunbar, 2004) (Kumar & Nagpal, 2001) (Levitt, 1983)
DEFINING THE TEENAGE YEARS
Who? Individuals from 12-19 years of age are teenagers.
Independent of parents vs. belonging to peers.
Independent of parents in order to identify their self image
Importance to peers
Belonging to a group, sharing interests, importance to social
activity and opposite/same sex.
Social acceptance through appearance and material things.
Having shared universal wants, needs, desires and fantasies.
Influenced by brand names, novelty, entertainment, and
Generally, eastern cultures are considered to be mimicking the
more developed western countries.
Teens consider shopping as an experience.
Teenagers have increased influence in household purchases.
Reason: more responsibilities are given to them
(Michman, Mazze & Greco, 2003) (Solomon Et al, 2006) (Quart, 2003) (Szalai & Uhl, 2009)
DEFINING THE TEENAGE YEARS CONT.
Teens Shared Interests & Characteristics
Teens communicate via phone with their
Teens listen to music.
Teens socialize with their friends, preferably
away from adults' prying eyes.
Teens go to movies as a social experience.
Teens tend to have limited access to money.
(Michman, Mazze, & Greco, 2003) (Magazine Publishers of America, 2004)
GLOBAL TEEN SEGMENTS
Does it Exist ?
The Global Teen Segment is a generalization of the
stereotype of teens who share similar interests in fashion,
music and lifestyles.
Rebelling against cultural norms, and trying to emulate other
cultures to reach self-satisfaction and an increase in self-
Global teenage girls spend most of their money on apparel,
cosmetics, jewelry and fragrances.
Global teenage boys spend most of their money on movies,
dating, entertainment, clothing and cars.
(Michman, Mazze & Greco, 2003) (Yusof, Et al. 2002)
GLOBAL TEEN SEGMENTS CONT.
It is agreed that the desire to be beautiful/handsome, healthy
and free of pain is a universal aspect.
The similar characteristics being held by global teenagers
made this segment active and selected by a considerable
number of global firms.
Diesel Jeans, Coca-Cola, Swatch, Sony, Benetton and other
companies are pursing the global teenage segment.
The global telecommunications revolution is a critical driving
force behind the emergence of this segment.
China, India and Brazil are emerging markets having 50%
plus of the population under 25, this placed these countries on
the A-list for almost all global firms.
(Schaefer, Et al. 2004) (Rushkoff, 2001) (Perrot, Et al. 2005) (Hollensen, 2007) (Cohen, 2009)
GLOBAL TEEN SEGMENTS CONT.
Things That are Important to a Teenagers Life
with family accomplishments
Having as much
fun as possible
world a better
as an individual
Never being traditions and values
(Michman, Mazze & Greco, 2003)
GLOBAL TEEN SEGMENTS CONT.
Teenagers are Divided into Four Attitudinal Market Segments
Socially Driven • Interests in clothing
Segment • Brand conscious
Diversely • Interests in cultural products
• Books music, magazines etc.
Socially • Interests in electronic products
• Collecting things
Sports-Oriented • Interests in sports related activities
Market Segment • Practise sports
(Michman, Mazze & Greco, 2003)
STANDARDIZATION VS. ADAPTATION
IN THE TEEN WORLD
It is true that teens all over the world share certain
interests (beautiful, healthy, fashionable and COOL).
Teen’s tastes do differ from one country to another
(Culture, preferences, behaviors and way of thinking).
These aspects are enough to drive any Global company to
seek for Adaptation when targeting diversified teenagers.
Standardization was thought to be the key for reaching the
teen world, but not anymore.
Everything is being adapted nowadays to suit various
tastes (Clothes, PC’s, accessories, mobiles, food and even
Coca-cola has launched a new TV campaign, "Look Up", to
focus on Thai teenagers that focused on inspiring youth to
actively "go for it”
“Look Up" commercials emphasize an innovative idea related
to the lifestyle of teenagers, and also encourages them to
believe in themselves and their ability to overcome difficulties
and obstacles when following their dreams.
(Prasad, 2005) (Theodosiou & Leonidou, 2003) (Kumar & Nagpal, 2001)
The USA teen population will grow to 33.5
million in 2010.
Teen spending will grow 3.5% annually to US
$91.1 billion in 2011.
They spend their money primarily on clothing,
video games, magazines, food, soft drinks and
They are more affluent, more educationally-
oriented, and more ethnically diverse.
They are realistic and optimistic and exhibit a
strong need for individuality in their self-
They have access to rapidly-evolving, bleeding-
edge technologies, and the Internet, PC’s, Mp3
players and Online Video’s are the most popular
sources of entertainment.
(Magazine Publishers of America, 2004) (Emarketer, 2007)
In 2009, Brazil’s 12-19 yr old population is
31 million, with spending power of US$43
50% of the population is under 25, and
makes up the dominant portion of the
They consistently display national pride and
can be ethnocentric in that they tend to
choose their own country as the world’s
They want a fulfilling job and career and a
They’re individualists and are not scared of
thinking or acting differently.
They watch TV, listen to CDs and go out a
lot with their friends.
They consume large amounts of hamburgers
(Manson, 2005) (Emarketer, 2007)
Population 1.3 billion – largest consumer
segment in the world.
Teen population 200 million.
One child policy – Parents spend 66% of
combined income on child.
Estimated annual teen spend; US $36 billion,
from sources such as; pocket money, parental
expenditure, food, schooling and clothing.
64% of teens feel it is important to be up to date
with fashion trends, with 19% of teens desiring
88% of Chinese teens trust local brands, while
64% trust foreign brands.
Teenagers spend a significant amount of time
on activities other than TV such as; reading
books, newspapers and magazines.
In contrast to their fashion tastes, they tend to
look to Japan rather than the West for their
foreign pop idols.
Teens in China make up an important market
for consumer goods companies.
(St-Maurice & Wu, 2006) (Parker, Et al. 2004)
THAI & INDIAN TEENAGERS
Thailand populace approx. 64
10.5 million adolescents and 11.5
million youths. Indian population is 1.1
Thai teens are excited by the billion.
local pop scene, as well as a Fast growing teen population
mixture of Japanese and representing 47% of the total
Western “idols”. population , with US $6.7
Thai teen market can be billion annual expenditure.
segmented into 4 major groups: Indian teens are among the
Liberals (28%), Individualists happiest in the world.
(25%), and Image India's teens have a vast
Seekers (20%). impact on: economy, company
products, the media, and
Primary interest is politics.
Influence from the west is
gradual. However, many of the
traditional values are still
(Anon, 2002) (Kripalani, 1999) (Lindgren, 2007) kept.
“DO TEENAGERS IN BEIJING REALLY
TEND TO EMULATE NEW YORK TEENS?”
“DO TEENAGERS IN BEIJING REALLY TO
EMULATE NEW YORK TEENS?”
Three Distinct Youth Culture Periods in Beijing Since 1970:
1970s and 1980s:
Planned economy, little disposable income
Conventional, collectivistic styles, e.g. blue cotton uniform
End of 1980s, Influenced by Hong Kong and Taiwanese
Market economy, significant rise in disposable income
Individualistic, fashionable styles
Japanese, Korean and Western influences
Globalised economy with WTO accession
Ambitious, consumerist, rebellious, spoiled (due to One
“Fusion trends”, e.g. Hip-Hop and Beijing Opera, Chinese
designers tweak Western with Chinese design elements
“DO TEENAGERS IN BEIJING REALLY TO
EMULATE NEW YORK TEENS?” CONT.
On first impression, Chinese teens do emulate USA teens, but
with more consumer analysis, it can be distinguished that the
marketing mix between modernism and traditionalism, with
regard to consumer trends, differs between the two countries.
In the USA, teenagers are more individualistic, and they want
to stand out and be more admired by their peers. In China,
teens want to be accepted in their group.
In China, teenagers spend a bigger share of their free time on
reading, and they have a tendency to spend more time in
internet cafes than teens elsewhere. However, in the USA
many teens drive their own car, and some are employed part-
time or earn money by doing house-related activities. They are
Chinese teens have become less attached to the American
culture, and are now creating their own mix of modern tastes
and traditional value, with behaviors very different from that
of their western counterparts.
(Rushkoff, 2001) (Madden, 1999) (Kaufman-Scarborough, 2000) (Parker Et al. 2004) (Rose, 1999)
(Schaefer Et al. 2004) (St-Maurice, & Wu, 2006) (Wee, 1999) (Yusof, Et al, 2002)
USA AND ASIAN TEENAGERS USING
HOFSTEDE’S CULTURAL DIMENSIONS
Hofstede ‘s USA Asian
Cultural Teenagers Teenagers
Power Distance More tricky to influence and Inclined by tradition.
Uncertainty Avoidance Want to be, and seek to be Less rebellious. Likely to stay at
independent from home. home until married.
Individualism Since Childhood learn to Raised to have group mentality.
think of themselves first.
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