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Teenage Segmentation Final


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Presentation discussing if teens in the USA emulate teens in China.

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Teenage Segmentation Final

  2. 2. OVERVIEW  What is Segmentation?  Standardization VS. Adaptation: Target Market Strategy Options  Standardization Adaptation  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 York Teens?”  USA and Asian Teenagers Using Hofstede’s Cultural Dimensions  Any Questions?  Reference
  4. 4. 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 essential steps:  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)
  5. 5. WHAT IS SEGMENTATION? CONT. Basis for Market Segmentation Geographic • Is linked to a specific country, region or Segmentation state. 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 Segmentation consumers. 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)
  6. 6. STANDARDIZATION VS. ADAPTATION TARGET MARKET STRATEGY OPTIONS Standardization Adaptation 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 customers. 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 lifestyle. 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)
  9. 9. 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.  Trend followers/seters.  Having shared universal wants, needs, desires and fantasies.  Influenced by brand names, novelty, entertainment, and trendy products.  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)
  10. 10. DEFINING THE TEENAGE YEARS CONT. Teens Shared Interests & Characteristics  Teens communicate via phone with their friends.  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)
  12. 12. 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- confidence.  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)
  13. 13. 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)
  14. 14. GLOBAL TEEN SEGMENTS CONT. Things That are Important to a Teenagers Life Relationship Potential with family accomplishments Having as much fun as possible Relationship with friends Making the world a better place Being accepted as an individual Upholding time- honored customs, Never being traditions and values bored (Michman, Mazze & Greco, 2003)
  15. 15. 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 Motivated • Books music, magazines etc. Market Segment Socially • Interests in electronic products Introverted • Collecting things Market Segment Sports-Oriented • Interests in sports related activities Market Segment • Practise sports (Michman, Mazze & Greco, 2003)
  16. 16. 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 advertising):  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)
  17. 17. USA TEENAGERS  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 snacks.  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- expression.  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)
  18. 18. BRAZILIAN TEENAGERS  In 2009, Brazil’s 12-19 yr old population is 31 million, with spending power of US$43 billion.  50% of the population is under 25, and makes up the dominant portion of the population.  They consistently display national pride and can be ethnocentric in that they tend to choose their own country as the world’s preeminent power.  They want a fulfilling job and career and a happy family.  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 and pizza. (Manson, 2005) (Emarketer, 2007)
  19. 19. CHINESE TEENAGERS  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 named brands.  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)
  20. 20. THAI & INDIAN TEENAGERS  Thailand populace approx. 64 million.  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. (27%), Follower/Mainstream (25%), and Image  India's teens have a vast Seekers (20%). impact on: economy, company products, the media, and culture.  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.
  22. 22. “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 culture 1990s:  Market economy, significant rise in disposable income  Individualistic, fashionable styles  Japanese, Korean and Western influences 21st Century:  Globalised economy with WTO accession  Ambitious, consumerist, rebellious, spoiled (due to One Child Policy)  “Fusion trends”, e.g. Hip-Hop and Beijing Opera, Chinese designers tweak Western with Chinese design elements ( (
  23. 23. “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 more independent.  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)
  24. 24. USA AND ASIAN TEENAGERS USING HOFSTEDE’S CULTURAL DIMENSIONS Hofstede ‘s USA Asian Cultural Teenagers Teenagers Dimensions Low High Power Distance More tricky to influence and Inclined by tradition. control. Low High Uncertainty Avoidance Want to be, and seek to be Less rebellious. Likely to stay at independent from home. home until married. Individualistic Collectivistic Individualism Since Childhood learn to Raised to have group mentality. think of themselves first. (Hollensen, 2007)
  25. 25. ANY QUESTIONS?
  26. 26. REFERENCE  Anon. (2002) Thai Teens Get Serious: New Market Research on the Thailand Youth Market. Asian Market Research news. [Online]. Available from: [Accessed: October 28th 2009]  Cohen, H. (2009) Eight Ways to Reach Teens, [Online], July 2005, Available from: [Accessed: September 30th 2009].  Emarketer (2007) Spending on and by teenagers to reach $208.7bn in 2011, July 2007 [Online] Available from: http://0- ch_results/ show&&type=NSItem&class=News&sort=recent&page=1/display/id=2867 85&anchor=286785 [Accessed: October 23rd 2009]  Hollensen, S. (2007) Global marketing : a decision-oriented approach, 4th ed., Harlow : Financial Times Prentice Hall.  Hooley, G., Piercy, N. & Nicoulaud, B.(2008) Marketing Strategy and Competitive Positioning, 4th ed. Harlow: Financial Times Prentice Hall.  Kaufman-Scarborough, C. (2000) Asian-American consumers: as a unique market segment: fact or fallacy?, Journal of Consumer Marketing, 17, (3), pp. 249-262.  Keegan, W.J. & Green, M. (2005) Global Marketing. 4th ed. New Jersey: Pearson/Prentice Hall
  27. 27. REFERENCE  Keegan, W.J. & Schelgelmilch,B. (2000) Global Marketing Management: A European Perspective, 6th ed. Harlow : Financial Times Prentice Hall.  Kripalani, M. (1999) India’s Youth. Business Week [Online]. Oct. 11, 1999. Available from: [Accessed: October 28th 2009]  Kumar, V. & Nagpal, A. (2001) Segmenting global markets: Look before you leap, Marketing Research, 13, (1) p.8.  Levitt, T. (1983) The Globalisation of Markets, Harvard Business Review, (May/June), pp.39-49.  Lindgren, M. (2007) Young Indians happiest in the world, Silicon India Media [Online]10,(9) p.12. Available from: http://0- h&AN=27434114&site=ehost-live [Accessed: October 28th 2009]  Madden, N. (1999) Target: 380 million Chinese emperor, Advertising Age International, p.26 .  Magazine Publishers of America. (2004) Teen Market Profile [Online] Available from [Accessed: October 23rd 09]  Manson, C. (2005) Reaching Brazilian consumers, Brand Strategy, (188), pp. 48-50.
  28. 28. REFERENCE  McDonald, M. and Dunbar, I. (2004) Market Segmentation: how to do it, how to profit from it, Oxford : Butterworth-Heinemann.  McGee,S. (2007) MSN MONEY What do Chinese teens want?  ineseTeens.aspx#pageTopAnchor [ accessed: November 20th 2009]  Michman, R. Mazze, E. & Greco, A. (2003) Lifestyle markting: Reaching the new American consumer, USA: Praeger Publishers.  Parker, R. Et al (2004) Fashion consciousness of Chinese, Japanese and American teenagers, Journal of Fashion Marketing and Management, 8, (2), pp. 176-186.  Perrot, J. Et al. (2005) Young urban trend setters, Campaign UK, (32), p26-27.  Prasad, G. (2005) Coke to sharpen teen appeal with 'Look up' TV blitz, Media: Asia's Media & Marketing Newspaper, (January 28th), p.4.  Prystay, C. (2004) Teens Out of Control. Far Eastern Economic Review, 167, (April, No.13), pp.46-48.  Quart, A. (2003) Branded: The Buying and Selling of Teenagers. New York: Basic Books.  Rose, G.M. (1999) Consumer socialization, parental style, and developmental timetables in The United States and Japan, Journal of Marketing, 63. (3), pp. 105-119.
  29. 29. REFERENCE  Rushkoff, D. (2001) The Merchants of Cool. [YouTube Video], USA: FRONTLINE.  Schaefer, A.D Et al. (2004) A cross-cultural exploration of materialism in adolescents, International Journal of Consumer Studies, 28. (4), pp. 399- 411.  Solomon, M. Et al (2006) Consumer Behaviors : A European Perspective, 3rd edition, England: Prentice Hall.  St-Maurice, I. & Wu, C. (2006) Understanding China's teen consumers, McKinsey Quarterly. Special Edition, pp.52-59.  Szalai, G. & Uhl, C. (2009) Study: Teens, Adults consume media pretty much the same. Brand week. [Online] Available from e0377dd55abd7483fd2 [Accessed: October 23rd 2009]  Theodosiou, M. & Leonidou, L. (2003) Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research, International Business Review. 12. pp. 141-171.  Wee, T. (1999) An exploration of global teenage lifestyle in Asian societies. Journal of Consumer Marketing, 16, (4), pp. 365-375.  Yusof, S. Et al (2002) Formation of desired values: the role of parents, International Journal of Social Economics, 26, (6) pp.468-479.