Global Marketing Management

Chapter 7

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

1
Chapter 7

Global Segmentation and
Positioning

Chapter 7

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2...
Chapter Overview
1. Reasons for International Market
Segmentation
2. International Market Segmentation
Approaches
3. Segme...
Chapter Overview (contd.)
6. Global, Foreign, and Local Consumer
Culture Positioning
7. Appendix

Chapter 7

Kotabe & Hels...
Introduction






Variation in customer needs is the primary motive
for market segmentation.
Most companies will ident...
Introduction (contd.)


Once the management has chosen its target
segments, management needs to determine a
competitive p...
1. Reasons for International Market
Segmentation


Segments ideally should possess the following set
of properties:
– Ide...
1. Reasons for International Market
Segmentation (contd.)







Country Screening
Global Market Research
Entry Deci...
2. International Market Segmentation
Approaches




International segmentation procedures:
– Country-ad-segments or aggr...
2. International Market Segmentation
Approaches (contd.)



(e.g., per capita GNP) or on a set of multiple
socioeconomic,...
3. Segmentation Scenarios




Universal or global segments
Regional segments
Unique (diverse) segments

Chapter 7

Kota...
4. Bases for Country Segmentation




Demographics
– Demographics variables are among the most
popular criteria.
Socioec...
4. Bases for Country Segmentation
(contd.)



» Gray and Black Market sections of the
economy
» Income disparities
– Purc...
4. Bases for Country Segmentation
(contd.)


Lifestyles
– Global Values Segments; the survey
investigated 1000 consumers ...
5. International Positioning Strategies


The formulation of a positioning strategy (local or
global) includes the follow...
5. International Positioning Strategies
(contd.)




5. Develop a marketing mix strategy.
6. Over time, monitor the effe...
5. International Positioning Strategies
(contd.)
» User application
» Lifestyles

Chapter 7

Kotabe & Helsen's Global Mark...
6. Global, Foreign, and Local Consumer
Culture Positioning






Global consumer culture positioning (GCCP)
– Brand as ...
7. Appendix


Segmentation techniques and tools:
– Cluster Analysis: Collection of statistical
procedures for dividing ob...
7. Appendix (contd.)
– For each of the parameter estimates, the
regression analysis will also produce standard
error.
– Th...
Copyright © John Wiley & Sons, Inc. 2004

Chapter 7

Kotabe & Helsen's Global Marketing
Management, Third Edition, 2004

2...
Global M arketing
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Global M arketing

  1. 1. Global Marketing Management Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 1
  2. 2. Chapter 7 Global Segmentation and Positioning Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 2
  3. 3. Chapter Overview 1. Reasons for International Market Segmentation 2. International Market Segmentation Approaches 3. Segmentation Scenarios 4. Bases for Country Segmentation 5. International Positioning Strategies Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 3
  4. 4. Chapter Overview (contd.) 6. Global, Foreign, and Local Consumer Culture Positioning 7. Appendix Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 4
  5. 5. Introduction    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 especially critical because of wide divergence in cross-border consumer needs and lifestyles. Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 5
  6. 6. Introduction (contd.)  Once the management has chosen its target segments, management needs to determine a competitive positioning strategy for its products. Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 6
  7. 7. 1. Reasons for International Market Segmentation  Segments ideally should possess the following set of properties: – Identifiable – Sizable – Accessible – Stable – Responsive – Actionable Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 7
  8. 8. 1. Reasons for International Market Segmentation (contd.)       Country Screening Global Market Research Entry Decisions Positioning Strategy Resource Allocation Marketing Mix Policy – Balance between standardization and customization Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 8
  9. 9. 2. International Market Segmentation Approaches   International segmentation procedures: – Country-ad-segments or aggregate segmentation – Disaggregate international consumer segmentation – Two-stage international segmentation The standard country segmentation procedure classifies prospect countries on a single dimension Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 9
  10. 10. 2. International Market Segmentation Approaches (contd.)  (e.g., per capita GNP) or on a set of multiple socioeconomic, political, and cultural criteria available from secondary data sources. When there are numerous country traits, use smaller set of dimensions using data reduction techniques such as factor analysis. Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 10
  11. 11. 3. Segmentation Scenarios    Universal or global segments Regional segments Unique (diverse) segments Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 11
  12. 12. 4. Bases for Country Segmentation   Demographics – Demographics variables are among the most popular criteria. Socioeconomic Variables – Caveats in using per capita income as an economic development indicator: » Monetization of transactions within a country Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 12
  13. 13. 4. Bases for Country Segmentation (contd.)  » Gray and Black Market sections of the economy » Income disparities – Purchasing Power Parity (PPP) criteria – Socioeconomic Strata (SES) Analysis – Human development index (HDI) classification Behavior-Based Segmentation
  14. 14. 4. Bases for Country Segmentation (contd.)  Lifestyles – Global Values Segments; the survey investigated 1000 consumers in 35 countries (source: Robert Starch Worldwide): » Strivers (23 percent) » Devouts (22 percent) » Altruists (18 percent) » Intimates (15 percent) » Fun Seekers (12 percent) » Creatives (10 percent) Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 14
  15. 15. 5. International Positioning Strategies  The formulation of a positioning strategy (local or global) includes the following steps: 1. Identify the relevant set of competing products or brands. 2. Determine current perceptions held by consumers about your product/brand and the competition. 3. Develop possible positioning themes. 4. Screen the positioning alternatives and select the most appealing one. Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 15
  16. 16. 5. International Positioning Strategies (contd.)   5. Develop a marketing mix strategy. 6. Over time, monitor the effectiveness of your positioning strategy and if needed, conduct an audit. Uniform vs. Localized Positioning Strategies Universal Positioning Appeals – Positioning themes: » Specific product features/attributes » Product benefit, solutions for problems Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 16
  17. 17. 5. International Positioning Strategies (contd.) » User application » Lifestyles Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 17
  18. 18. 6. Global, Foreign, and Local Consumer Culture Positioning    Global consumer culture positioning (GCCP) – Brand as a symbol of a given global consumer culture Local consumer culture positioning (LCCP) – Brand as an intrinsic part of the local culture. Foreign consumer culture positioning (FCCP) – Brand mystique built around a specific foreign culture Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 19
  19. 19. 7. Appendix  Segmentation techniques and tools: – Cluster Analysis: Collection of statistical procedures for dividing objects into groups (clusters). The grouping is done in such a manner that members belonging to the same group are very similar to one another but quite distinct from members of other groups. – Regression Analysis: In regression, one assumes that there exists a relationship between a response variable, Y, and one or more socalled predictor variables, X1, X2 and so on. Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 20
  20. 20. 7. Appendix (contd.) – For each of the parameter estimates, the regression analysis will also produce standard error. – The higher the R2 value, the better the ability of the regression model to predict the data. Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 21
  21. 21. Copyright © John Wiley & Sons, Inc. 2004 Chapter 7 Kotabe & Helsen's Global Marketing Management, Third Edition, 2004 22

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