4. GLOBAL MARKET SEGMENTATION
• Variation in customer needs is the primary motive for market
segmentation.
• Most companies will identify and target the most attractive market
segments that they can effectively serve.
• In global marketing, market segmentation becomes critical because of
wide divergence in cross-border consumer needs and lifestyles.
5. REASONS FOR GLOBAL MARKET
SEGMENTATION
• Identifiable--be easy to define and to measure
• Sizable--large enough to be worth going after
• Accessible--easy to reach through the media
• Stable—must be stable over a long period of time
• Responsive—the segments respond differently from each other
• Actionable--should be actionable.
6. 4 CRITICAL QUESTIONS FOR
GLOBAL MARKETING
• When and how to global?
• Who is the target market in destination country?
• What marketing strategy to employ?
• How to engage target market?
7. SEGMENTING GLOBAL MARKETS
• Macro-segmentation:
• Macro-segmentation or country-based segmentation identifies
clusters of countries that demand similar products.
• Macro-segmentation uses geographic, demographic and
socioeconomic variables such as location, GNP per capita, population
size or family size to group countries intro market segments, and then
selects one or more segments to create marketing strategies for each
of the selected segments.
• This strategy enables a company to centralize its operations and save
on production, sales, logistics and support functions.
8. SEGMENTING GLOBAL MARKETS
• Micro-segmentation:
• Micro-segmentation or consumer-based segmentation involves grouping
consumers based on common characteristics using psychographic and/or
behavioristic segmentation variables such as cultural preferences, values and
attitudes, lifestyle choices.
• Behavioral segmentation: What benefits do customers want, and how do they
use our product?
• •Demographic segmentation: How do the ages, races, and ethnic backgrounds of
our customers affect what they buy?
• •Geographic segmentation: Where are customers located, and how can company
reach them? What products do they buy based on their locations?
• • Psychographic segmentation: What do customers think about and value? How
do they live their lives?
