This document discusses world market segmentation and brand positioning strategies. It examines the relationship between bases of segmentation (e.g. macro-level like geography and economics or micro-level like lifestyle) and strategic brand positioning options. The research included two studies - a survey of segmentation decision makers and a panel of international marketing experts who evaluated top global brands. The results showed that hybrid segmentation bases are related to global positioning, micro-level bases relate to multi-local positioning, and macro-level bases do not relate significantly to positioning strategies. Perceived similarities in targeting world segments were also associated with perceived harmonization in brand positioning strategies.

1. Examiningworldmarket
segmentationandbrand
positioningstrategies
JURNAL REVIEW
INDIRA SHANTI
55118110008

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JournalofConsumerMarketing
29/5(2012)344–356qEmerald
GroupPublishingLimited
[ISSN0736-3761]
DOI 10.1108/07363761211247460
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SalahS.HassanTheGeorgeWashington
University,Washington,DC,USA,and
StephenCraftUniversityofMontevallo,
Montevallo,Alabama,USA
Research paper
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BACKGROUND
O ¨ zsomer and Prussia, 2000; Aurifeille et al., 2002; Schuiling
and Kapferer, 2004; Cova et al., 2007; Hung et al., 2007
There is consensus among practitioners and academics
that the time and expense of conducting
segmentation studies and implementing international
segmentation systems is justified by the contribution
of segmentation to effective brand positioning and
performance.
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BACKGROUND
❑ Complicating the segmentation issues in
world markets is the need for companies
to make strategic positioning decisions on
leveraging brand equity and achieving
economies of scale.
❑ The existence of these inter-market
segments might create important
opportunities and challenges for firms
seeking to establish brand positions in
multiple markets – an increasingly
common strategic goal.
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PURPOSE
This paper explores appropriate scenarios
where a company would use different
segmentation and positioning strategies.
This study empirically examines the
relationship between bases of
segmentation and strategic brand
positioning strategies in world markets.
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HassanandKatsanis (1991)suggestedthatworld
marketsegmentationbasedonmacrobaseshas
threemajorlimitations:(1)segmentationdecision
isbasedoncountry-specificgeographicalvariables
notconsumer-behaviorvariables;(2)itassumes
totalhomogeneityofconsumerbehaviorwithin
countrysegments;and(3)itoverlooksthe
existenceofhomogeneoussegmentsthat
transcendacrossnationalboundaries.
LITERATURE REVIEW
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WindandDouglas(1972)described
“macro”segmentationasgroupsof
countriesthatareclassifiedandtargeted
basedonnationalmarketcharacteristics
while“micro”segmentationisbasedon
analyzingandsub-dividingeach
qualifyingtargetcountrybycustomer
characteristicstoformlocalizedmarket
segments.
LITERATURE REVIEW
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DomzalandUnger(1987)suggestthatsimilar
global customer segments can be identified
across countries and regions based on
psychographic and lifestyle analyses, while
others have focused on attitudes toward
imported products and country of origin
effects(Crawfordetal.,1988).
LITERATURE REVIEW
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Douglas and Wind (1987) concluded that a firm’s
international operations may consist of a mix of
strategies, including global products and brands as well
as some regional and country specific products and
brands. Thus, customer segments may be global,
country specific, or based on clusters of countries with
similar characteristics. “Firms focusing on a global
market segment often can effectively use the same
capabilitiesandskillstotargetthatsegmentthroughout
theworld”(CraigandDouglas,2000).
LITERATURE REVIEW
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The existence of inter-market segments is a
key condition for the success of global
marketing strategy (Hassan and Craft, 2005).
For some consumers, the purchase of a
global brand is seen as a “passport to global
citizenship” (Strizhakova et al., 2008).
LITERATURE REVIEW
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The term “positioning” often is used to
refertothefirm’sdecisiontodeterminethe
place that its brand and corporate image
occupyinagivenmarketincludingthetype
of benefits to be stressed and the type of
segments to be targeted (Douglas and
Craig, 1995; Ries and Trout, 1986; Ries,
1996).
LITERATURE REVIEW
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Positioningisdescribedasstrategytoidentifyanddirect
marketingresourcesamongintendedmarketsegments.
Underthisstrategythattheterm“segment-basedstrategic
positioning,”wouldfosterthedevelopmentof
homogeneousresponsesfordemandthatdiffersfrom
responsesreceivedfromothermarketsegments.
Thestrategicpositioningoptionscanbeillustratedbestina
twodimensionalrepresentationofdegreesofhomogeneity
andheterogeneityamongmarketsegmentstobe
addressedasbasesforthisresearchdesign(Brodericketal.,
2007;Douglasetal.,2001).
LITERATURE REVIEW
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Four hypotheses were developed to examine the
relationship between three types of segmentation bases
and brand positioning. The first three hypotheses examine
the level of utilization of segmentation bases (hybrid-,
micro-, and macrolevels) and the choice of brand
positioning strategy options for world markets.
Hypothesis four examines perceived degrees of
similarities in targeting world segments in association with
the perceived degree of harmonization in the choice of a
firm’s brand positioning strategy
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RESEARCH HYPOTHESES

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H1.Hybridbasesof segmentationthatincludebothrelevant
macro-level(i.e.geographicalandeconomic)aswellas
appropriatemicro-levelvariables(i.e.lifestyleandbehavioral)will
besignificantlyrelatedtoglobalbrandpositioningstrategy.
H2.Micro-levelbasesof segmentationthatincluderelevant
variables(i.e.lifestyleandbehavioral)alonewillbesignificantly
relatedtoMulti-localbrandpositioningstrategy.
H3.Macro-levelbasesof segmentationthatincluderelevant
variables(i.e.geographicalandeconomic)alonewillnotbe
significantlyrelatedtoanyof thebrandpositioningstrategy
options.
H4.Perceiveddegreesof similaritiesintargetingworldsegments
areassociatedwiththeperceiveddegreeof harmonizationinthe
choiceof afirm’sbrandpositioningstrategy.
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RESEARCH HYPOTHESES

16. This research model is reflective of the following major developments
in the literature:
Integrating country variables with behavior patterns (Hsieh, 2002).
Not assuming total homogeneity of the country segment (Agarwal, 2003).
Acknowledging the existence of a degree of similarity across national
boundaries (Hung et al., 2007).
Considering the bases of segmentation to be dynamic in nature (Broderick
et al., 2007).
Defining brand positioning strategy options as a matter of degree (Ha et
al., 2009).
RESEARCH MODEL

17. The basic ideas of the integrated approach are:
It assumes various degrees of heterogeneity and homogeneity in
buyers’ preferences for global brands.
Any degree of preference heterogeneity or homogeneity for global
brands can be attributed to both macro-bases (i.e. country factors),
micro-bases (i.e. behavioral variables), and any combinations of
interactions.
Any degree of preference heterogeneity can be addressed by
introducing adaptive variations in the marketing program.
RESEARCH MODEL

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Thisresearchstudyconsistedofamailsurveytargeted
tohigh-levelmanagersinvolvedinsegmentation
decisionswithafocusontheinternationalarena.
Astructuredquestionnairewasmailedto1,097
segmentationdecisionmakersdrawnfromalist
providedbytheInstituteforInternationalResearch.
Thecontactnameswereselectedatrandomfroma
listingofover150,000managerswhoarelistedinthe
segmentationsectionoftheInstitute’sdatabase.
RESEARCH STUDY ONE
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Respondentsreceivedathree-stepintegrativemailing
beginningwithawarningletteraskingforparticipation,a
letteraccompanyingthequestionnaire,andapost-card
reminder.
Respondentswereprovidedwithapostage-paidbusiness
replyenvelope.Asanincentive,acharitablecontributionof
onedollarwasmadetotherespondent’schoiceofthree
charitableorganizationsforeachcompletion.
Inaddition,therespondentscouldrequestasummary
reportoftheresultsofthedatacollection.
Thestudyresultedin112completionsforaresponserateof
10.2percent.
RESEARCH STUDY ONE
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Therespondentswereaskedtoratehoweachfactorisused
onaseven-pointscalewith1representing“neverused”and
7representing“alwaysused.”
Thestudy(n¼107)establishedthescaleashavinghigh
reliabilitywithaCronbach’salphascoreof0.9040.
Therespondentswereaskedtoratehowofteneachfactor
isusedaspartoftheirinternationalsegmentationdecisions.
RESEARCH STUDY ONE
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Therespondentswereaskedtorateeachwithin-country
basesonaseven-pointscalewith1representing“never
used”and 7representing“alwaysused.”
Thestudy(n¼98)establishedthescaleashavinghigh
reliabilitywitha Cronbachalphascoreof0.9217.
RESEARCH STUDY ONE
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ANALYSES
Thefirststepinthedataanalysiswasconductedvia
principlecomponentsanalysis–aformoffactor
analysis.
TheresultingfactorswererotatedviaVarimax
rotationandKaiserNormalizationforthepurposeof
aidinganalysis.
Asaconditionofrunningthefactoranalysis,
coefficientalphawasusedtoassureinterimreliability.
RESEARCH STUDY ONE
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Thecurrentresearchidentifiedthreeunderlying
macro-levelsegmentationbasesincluding:(1)
macroeconomics;(2)geo-demographics;and(3)
macro-culturalfactors.
Inaddition,thereappeartobefourunderlyingmicro-
levelsegmentbasesincluding:(1)demographics;(2)
attitudeandusage;(3)micro-culture;and(4) brand
loyalty
RESEARCH STUDY ONE
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Thesecondstudyutilizedaconveniencesampleof
segmentationdecisionmakersfromfirmsrepresentingawide
rangeofindustries.
Thestudyusedakeyinformantmethodologywhere
respondentswereindependentlyscreenedastotheirabilityto
respond.
Keyinformantsarenotselectedtobestatisticallyrepresentative
butarechosenbecausetheypossessuniqueknowledgeonthe
topicofinterest(Kumaretal.,1993).
RESEARCH STUDYTWO
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Thisstudyisbasedonapanelofinternationalmarketingexperts
composedof30informantsfromdiverseindustrieslikefastmoving
consumergoods,marketingresearchconsulting,services,and
manufacturing.
O¨zsomerandAltaras(2008)notethatapersonunfamiliarwithglobal
brandsmayhavethe“somewhatabstractideathatglobalbrandsare
thesameeverywhere”.
Toavoidsuchperceptionbiases,thepanelwasselectedtoinclude
globallyknowledgeableparticipantsthatrepresent’sfivedifferent
countriesfromfourcontinents.
RESEARCH STUDYTWO
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Theobjectiveofthisstudywastoevaluatetheperceivedassociation
betweenglobalbrandpositionsandworldmarketsegments.
Eachexpertpanelparticipantreceivedanonlinesurveywherehe/she
wasconfrontedwithalistofthe“100BestGlobalBrands”by
Interbrand/BusinessWeek.
Thislistofcompaniesincludedimagesofcorporatebrandswith
hyperlinktothewebsiteoftheBusinessWeeklistingonhoweach
brandisrankedglobally.
RESEARCH STUDYTWO
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Eachpanelexpertwasaskedtoprovideresponsesonascaleranging
from1to10onhowtheyratethesebrandsrelatedtothefollowingtwo
questions:
1. Onascalerangingfrom1to10,pleaseratehowthefollowing
corporatebrandstargetworld-marketsegments–where:“10”¼very
similarmarketsegmentsacrosstheglobeand“1”¼verydifferent
marketsegmentsacrosstheglobe.
2. Onascalerangingfrom1to10,pleaseratehowthefollowingbrands
arepositionedonaworld-widebasis–where:“10”¼verysimilarbrand
positionacrosstheglobeand“1”¼verydifferentbrandpositionacross
theglobe
RESEARCH STUDYTWO
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Eachpanellistwasaskedtoassignavalueof“0”toIdonotknowanswersorwasallowedtoskipthe
question.Thiswayarespondentwhoisunfamiliarwitheither thebrandpositioningorthebrand’s
segmentationstrategywouldnotinfluencethefindings.
Thismethodofsurveyingexpertpanellistswasvalidated,deemedvaluable,andresponseswereranked
usingtheAmabile(1996)consensusassessmenttechnique(CAT)wherehigherscoresdefinethemost
consciencesagreementasassessedbythisexpertpanel. Thetotalscores(N)were2,344forpositioningand
2,307forsegmentation.
AKolmogorov-Smirnovtestindicatesthatthedistributionsofthesescoreswereapproximatelynormal
(positioning¼p-value0.01andsegmentation¼p-value0.01),whilethescatterplotchartshowsthe
averageexpertratingformaconsensusagreementskewedtotheupperleftquadrant. Thisisconsistent
withpriorresearchandconfirmsthataligningbrandswithbroaderandmorehomogenousglobalsegments
willachievehigherlevelsofperformanceinthemarketplaceasevidentinthetopstatusof“100BestGlobal
Brands”(KileyandHelm,2009).
RESEARCH STUDYTWO
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Withpositionandsegmentscoresaveraging7.3and7.0respectively,bothscoresare
foundtobesignificantlylarger(p,0:01)thanthecriticalvaluesoftheglobalstrategycell
minimumsof5(position)and5(segment).
Thecorrelationcoefficientofindividualpanelmemberratingsis0.396(p,0:001).
Thereforewecanconcludethatperceivedsimilaritiesintargetingworldsegmentsare
associatedwiththeperceivedharmonizedbrandpositioningstrategies(H4).
Couplingtheseresultswiththefactthatthebrandsarethetopglobalbrandsasjudged
byKileyandHelm(2009),wecanconcludethereisabenefittothebestbrandsor
harmonizingbrandpositioningandsegmentationstrategies.
RESEARCH STUDYTWO
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1. BACKGROUND
2. PURPOSE
3. LITERATURE REVIEW
4. RESEARCH HYPOTHESES
5. RESEARCH METHODS
6. RESULT AND DISCUSSION
7. CONCLUSION
8. IMPLICATION
REVIEWPOINT
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1. BACKGROUND
➢The phenomenon should be stated in advance clearly.
➢ The preliminary research should be conducted as the main
reason to continue the research.
➢ Dependent variable should be pointed out to explain why the
research is important.
➢ Primary data and secondary data should be used to affirm the
independent variable.
REVIEWPOINT
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2. PURPOSE
The purpose of research should be based on the main problem
REVIEWPOINT
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3. LITERATURE REVIEW
The conceptual literature as the main concept should be stated
more focus.
REVIEWPOINT
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4. RESEARCH HYPOTHESES
Research hypotheses should be described clearly when pointing
out the related aspect.
REVIEWPOINT
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5. RESEARCH METHODS
➢ The framework design should be followed by the inner
model test to clarify either the model is fit or not, then
continue with hypotheses test.
➢ Reliability test and validity test should be made and
stated accordingly before hypotheses test conducted.
REVIEWPOINT
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6. RESULT AND DISCUSSION
➢ The result should be illustrate base on the model
theory explained.
➢ The discussion should be elaborated and related to
the literature theory.
REVIEWPOINT
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7. CONCLUSION
The conclusion should be described the research
hypotheses and result.
REVIEWPOINT
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8. IMPLICATION
Managerial implication should consider the demographic
and culture as a related factor in order to apply the research
result.
REVIEWPOINT
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