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Ch07 Kotabe

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Ch07 Kotabe

  1. 1. Global Marketing Management, 5e<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />1<br />Chapter 7<br />Global Segmentation and Positioning<br />
  2. 2. Chapter Overview<br />1. Reasons for International Market Segmentation<br />2. International Market Segmentation Approaches<br />3. Segmentation Scenarios<br />4. Bases for Country Segmentation<br />5. International Positioning Strategies<br />6. Global, Foreign, and Local Consumer Culture Positioning<br />Appendix<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />2<br />
  3. 3. Introduction<br />Variation in customer needs is the primary motive for market segmentation.<br />Most companies will identify and target the most attractive market segments that they can effectively serve.<br />In global marketing, market segmentation becomes especially critical because of wide divergence in cross-border consumer needs and lifestyles.<br />Once the management has chosen its target segments, management needs to determine a competitive positioning strategy for its products.<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />3<br />
  4. 4. 1. Reasons for International Market Segmentation<br />Segments ideally should possess the following set of properties:<br />Identifiable<br />Sizable<br />Accessible<br />Stable<br />Responsive<br />Actionable<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />4<br />
  5. 5. 1. Reasons for International Market Segmentation<br />Country Screening<br />Global Market Research<br />Entry Decisions<br />Positioning Strategy<br />Resource Allocation (Exhibit 7-1)<br />Marketing Mix Policy<br />Balance between standardization and customization<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />5<br />
  6. 6. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />6<br />Exhibit 7-1: Market Clustering Approach for Instant Coffee<br />
  7. 7. 2. International Market Segmentation Approaches <br />International segmentation procedures:<br />Country-as-segments or aggregate segmentation<br /> (See Exhibits 7-2 and 7-3.)<br />Disaggregate international consumer segmentation<br />Two-stage international segmentation<br />Standard country segmentation classifies prospect countries on a single dimension (e.g., per capita GNP) or on multiple dimensions—cultural,socioeconomic, and political criteria available from secondary data sources.<br />For numerous country traits, use data reduction such as factor analysis.<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />7<br />
  8. 8. Exhibit 7-2: Nestlé’s Geographic Segmentation of the Americas<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />8<br />
  9. 9. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />9<br />Exhibit 7-3: Macro-Level Country Characteristics<br />
  10. 10. 3. Segmentation Scenarios<br />Universal or global segments<br />Regional segments<br />Unique (diverse) segments<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />10<br />
  11. 11. Exhibit 7-4: Different Segment Scenarios<br />Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />11<br />
  12. 12. 4. Bases for Country Segmentation<br />Demographics<br />Demographic variables are among the most popular criteria (Exhibit 7-5).<br />Socioeconomic Variables <br />Caveats in using per capita income as an economic development indicator:<br />Monetization of transactions within a country<br />Gray and Black Market sections of the economy<br />Income disparities<br />Purchasing Power Parity (PPP) criteria<br />Human development index (HDI) classification<br />Socioeconomic Strata (SES) Analysis (Exhibit 7-6)<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />12<br />
  13. 13. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />13<br />Exhibit 7-5: Six Types of Chinese Pre-Elders<br />
  14. 14. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />14<br />Exhibit 7-6: Market Development and Brand Building<br />
  15. 15. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />15<br />4. Bases for Country Segmentation<br />Behavior-based segmentation (Exhibit 7-7)<br />Brand loyalty<br />Usage rate<br />Product penetration<br />Benefits<br />
  16. 16. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />16<br />Exhibit 7-7: Benefit Segments of Toothpaste Market in the U.S.A., China, and Mexico<br />
  17. 17. 4. Bases for Country Segmentation<br />Lifestyles <br />Roper Consulting’s Valuescope Model. 30,000 interviews around the world.<br />Achievers<br />Traditionals<br />Survivors<br />Nurturers<br />Hedonists<br />Social-Rationals<br />Self-Directeds<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />17<br />
  18. 18. 5. International Positioning Strategies<br />The formulation of a positioning strategy (local or global) includes the following steps:<br /> 1. Identify the relevant set of competing products or brands.<br /> 2. Determine current perceptions held by consumers about your product/brand and the competition.<br /> 3. Develop possible positioning themes.<br /> 4. Screen the positioning alternatives and select the most appealing one.<br /> 5. Develop a marketing mix strategy.<br /> 6. Over time, monitor the effectiveness of your positioning strategy and if needed, conduct an audit.<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />18<br />
  19. 19. 5. International Positioning Strategies<br />Uniform versus Localized Positioning Strategies<br />Universal Positioning Appeals<br />Positioning themes:<br />Specific product features/attributes<br />Product benefit, solutions for problems<br />user category<br />user application<br />heritage<br />lifestyle<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />19<br />
  20. 20. Exhibit 7-9: Global Positioning and Segmentation Strategies<br />Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />20<br />
  21. 21. 6. Global, Foreign, and Local Consumer Culture Positioning<br />Global consumer culture positioning (GCCP)<br />Brand as a symbol of a given global consumer culture<br />Local consumer culture positioning (LCCP)<br /> Brand as an intrinsic part of the local culture.<br />Foreign consumer culture positioning (FCCP)<br /> Brand mystique built around a specific foreign culture<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />21<br />
  22. 22. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />22<br />Exhibit 7-10: McDonald’s Promoting Its Local Community Support in New Zealand<br />
  23. 23. Appendix: Segmentation Tools<br />Segmentation techniques and tools:<br />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.<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />23<br />
  24. 24. Appendix: Segmentation Tools<br />Regression Analysis: In regression, one assumes that there exists a relationship between a response variable, Y, and one or more so-called predictor variables, X1, X2 and so on.<br />For each of the parameter estimates, the regression analysis will also produce standard error.<br />The higher the R2 value, the better the ability of the regression model to predict the data.<br /> (See Exhibits 7-11 through 7-13.)<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />24<br />
  25. 25. Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />25<br />Exhibit 7-11: Principles of Cluster Analysis<br />
  26. 26. Exhibit 7-12: Plot of Concentration versus Category Growth Chocolate Market<br />Chapter 7<br />Copyright (c) 2007 John Wiley & Sons, Inc.<br />26<br />
  27. 27. Exhibit 7-13: Cluster Analysis<br />Chapter 7<br />Copyright (c) 2009 John Wiley & Sons, Inc.<br />27<br />

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