GLOBAL SEGMENTATION AND POSITIONING
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GLOBAL SEGMENTATION AND POSITIONING
Objectives
Discuss the international market segmentation Discuss the international market segmentation process.process.Analyse the various international market Analyse the various international market segmentation approaches.segmentation approaches.Describe the bases for country segmentation.Describe the bases for country segmentation.Understand the managerial implications of Understand the managerial implications of international positioning strategies.international positioning strategies.
1. Reasons for Global Market Segmentation
Country ScreeningCountry ScreeningGlobal Market ResearchGlobal Market ResearchEntry DecisionsEntry DecisionsPositioning StrategyPositioning StrategyMarketing Mix PolicyMarketing Mix Policy
Requirements for effective market segmentation
Measurable, Measurable, Sizable, Sizable, Accessible, Accessible, Actionable, Actionable, Competitive Intensity, Competitive Intensity, Growth PotentialGrowth Potential
Global segmentation process
1. Identify purpose 2. Select segmentation criteria 3. Collect relevant information4. Segment countries/consumers according to
criteria3. Re-evealuate the fit of the segment after
implementation of the intended program 4. Update/reassign segment membership
International Market Segmentation Approaches
Using a single Using a single dimensiondimensionUsing multiple criteriaUsing multiple criteria
Macro-level segmentation
Classifying countries Classifying countries into distinct segmentsinto distinct segments
Example: segmentation on the basis of quality of life
Cost of livingCost of livingEconomy Economy FreedomFreedomHealthHealthInfrastructureInfrastructureRecreation culture and entertainmentRecreation culture and entertainment
Micro-segmentation
1. Criteria development1. Criteria development2. Preliminary Screening2. Preliminary Screening3. Micro3. Micro--segmentationsegmentation
Different Segment ScenariosDifferent Segment Scenarios
3. Bases for Country Segmentation
DemographicsDemographicsGeographyGeographySocioeconomic VariablesSocioeconomic Variables
stages of economic developmentstages of economic development
3. Bases for Country Segmentation (cont)
caveats in using per capita incomecaveats in using per capita incomeMonetisationMonetisation of transactions within a of transactions within a countrycountryGray and Black Market sections of the Gray and Black Market sections of the countrycountryIncome disparitiesIncome disparities
3. Bases for Country Segmentation (cont)
CultureCulture1. Individualism 1. Individualism vsvs Collectivism (IND)Collectivism (IND)2. Power Distance (PD)2. Power Distance (PD)3. Uncertainty Avoidance (UA)3. Uncertainty Avoidance (UA)4. Masculinity 4. Masculinity -- Feminism (MA)Feminism (MA)
3. Bases for Country Segmentation (cont)
Political ConditionsPolitical Conditionsfree marketfree marketmixed marketmixed marketcentrally plannedcentrally planned
3. Bases for Country Segmentation (cont)
BehaviorBehavior--Based SegmentationBased Segmentationbrand loyaltybrand loyaltyusage rateusage ratepenetrationpenetrationbenefitsbenefits
Based on average sales per capita plus advertising (above average; average; below average)
3. Bases for Country Segmentation (cont)
LifeStyleLifeStylelooks at attitudes, opinions and valueslooks at attitudes, opinions and valuespopular in advertisingpopular in advertisingmany typologiesmany typologies
general /product specificgeneral /product specific
Example
Typology of the European Car Typology of the European Car MarketMarket
International Positioning Strategies
Positioning of beers
Premium quality
Popular price
Light
Heavy
Light
Heavy
Premium quality
Light
Heavy
Premium quality
5
1
6
3
2
4
7
Bud
Carling
Stella
Miller
Fosters
F
G
E
D
7
Possible problems in global positioning
Different maps (positions of brands)Different maps (positions of brands)Different competing brandsDifferent competing brandsDifferent evaluations of what, for example, Different evaluations of what, for example, constitutes premium quality or heavy beer constitutes premium quality or heavy beer Different dimension may be used to Different dimension may be used to evaluate the brand evaluate the brand Different definitions of the product categoryDifferent definitions of the product categoryDifferent segments across countriesDifferent segments across countries
EXAMPLE
Positioning of cars in USA and JapanPositioning of cars in USA and Japan
Global Positioning & Segmentation StrategiesGlobal Positioning & Segmentation Strategies
Competitive analysis
Objectives
How to define global competitive advantageHow to analyse global competition
Why the companies / industries of some countries are more
competitive than that of others?
The Competitive Advantage of Nations (the Diamond Model)
FactorConditions
Firm Strategy, Structure and Rivalry
Demand Conditions
Related &Supporting Industries
The Competitive Advantage of Nations (the Diamond Model)
FactorConditions
Firm Strategy, Structure and Rivalry
Demand Conditions
Related &Supporting Industries
Bases of a firm’s competitive advantage
M. Porter’s Five Forces Model
Industry Competitors
Intensity of Rivalry
Threat ofNew Entrants
BargainingPower of Buyers
BargainingPower of Suppliers
Threat of Substitutes
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