The document discusses international market segmentation. It states that countries vary greatly in their economic, cultural, and political characteristics, so international firms must group world markets into segments with distinct consumer needs and behaviors. It identifies geographical, economic, political, legal, and cultural factors as bases for market segmentation. While segments traditionally consist of clusters of countries, new technologies now allow marketers to define segments of like-minded consumers across national borders through inter-market segmentation.

1. International Market
Segmentation
Dr. Gopal Thapa

2. International Market
Segmentation
 Different countriescan vary greatly in their
economic, cultural, and political makeup.
 Thus, international firms need to group their
world markets into segments with distinct
buying needs and behaviors.
12/15/2022 Copy right reserved 2

3. Bases for Market Segmentation
 Geographical factors
 Europe, America, Asia, or Africa
 Economic factors
 Income level, economic development, economic
structure
 Political legal factors
 Stability of government, receptivity to foreign firms,
monetary regulations, and amount of bureaucracy
 Cultural factors
 Languages, religions, values and attitudes, customs, and
behavioral patterns.
12/15/2022 Copy right reserved 3

4.  Segmenting international markets based on
geographic, economic, political, cultural, and
other factors presumes that segments should
consist of clusters of countries
 However, as new communications technologies,
such as satellite TV and online and social media,
connect consumers around the world, marketers
can define and reach segments of like-minded
consumers no matter where in the world they are.
12/15/2022 Copy right reserved 4

5. Inter-market Segmentation
 Using inter-market segmentation (also called
cross-market segmentation), they form segments
of consumers who have similar needs and buying
behaviors even though they are located in different
countries.
12/15/2022 Copy right reserved 5