Segmentation, Targeting, and Positioning

1. Segmentation, Targeting, and Positioning Chapter 7 Global Marketing

2. Market Segmentation • Represents an effort to identify and categorize groups of customers and countries according to common characteristics Keegan and Green, Chapter 7

3. Targeting • The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond Keegan and Green, Chapter 7

4. Global Market Segmentation • The process of identifying specific segments – whether they be country groups or individual consumer groups – of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix • Pluralization of consumption • Segment simultaneity Keegan and Green, Chapter 7

5. Conventional Wisdom Assumes heterogeneity between countries Assumes homogeneity within a country Focuses on macro level cultural differences Relies on clustering of national markets Less emphasis on within-country segments Unconventional Wisdom Assumes emergence of segments that transcend national boundaries Recognizes existence of within-country differences Emphasizes micro-level differences Segments micro markets within and between countries Contrasting Views: Global Segmentation Keegan and Green, Chapter 7

6. Global Segmentation Bases • Demographics • Psychographics • Behavioral characteristics • Benefits sought • Environments Keegan and Green, Chapter 7

7. Demographics • Income • Populations • Age distribution • Gender • Education • Occupation In particular, notice trends: are there fewer married couples, smaller family size, changing roles of women, higher incomes, etc? Keegan and Green, Chapter 7

8. Psychographics • Grouping people according to attitudes, value, and lifestyles • SRI International and VALS 2 • Porshe example • Top Guns (27%): Ambition, power, control • Elitists (24%): Old money, car is just a car • Proud Patrons (23%): Car is reward for hard work • Bon Vivants (17%): Car is for excitement, adventure • Fantasists (9%): Car is form of escape Keegan and Green, Chapter 7

9. Global Psychographics • BSB’s Global Scan • TARGET SCAN: 95% of adult populations in 18 countries • Strivers (26%): young people, driven to achieve • Achievers (22%): successful, status-conscious • Pressured (13%): mostly women, lots of pressure and problems • Adapters (18%): older, content • Traditionals (16%): clings to past, heritage, and values Keegan and Green, Chapter 7

10. Global Psychographics (cont.) • DMBB’s Euroconsumer Study • (15-country study) • Elite Consumers • Successful Idealists • Affluent Materialists • Mainstream Consumers • Comfortable Belongers • Disaffected Survivors Keegan and Green, Chapter 7

11. Global Psychographics(conc.) • Y&R’s Cross-cultural Consumer Characterizations (4 Cs) • 20-country study • Constrained • Resigned Poor, Struggling Poor • Middle Majority • Mainstreamers, Aspirers, Succeeders • Innovators • Transitionals, Reformers Keegan and Green, Chapter 7

12. Behavior • Whether or not people buy or use a product • How much they use it • How often they use it • User status Keegan and Green, Chapter 7

13. Benefit • Benefit segmentation focuses on the value equation • Value = Benefits / Price • Based on understanding the problem a product solves, the benefit it offers, or the issue it addresses Keegan and Green, Chapter 7

14. Criteria for Targeting: 9 W’s • Who buys our product? • Who does not buy it? • What need or function does it serve? • What are customers buying to satisfy the need for which our product is targeted? • What price are they paying? • When is the product purchased? • Where is it purchased? • Why is it purchased? Keegan and Green, Chapter 7

15. Criteria for Assessing Global Opportunity Current Size of the Segment Competition Compatibility with company’s overall objectives Feasibility of successfully reaching designated target Anticipated Growth Potential Keegan and Green, Chapter 7

16. Global Marketing • Standardized global marketing • Mass marketing on a global scale • Undifferentiated target marketing • Concentrated global marketing • Niche marketing • Single segment of global market • Differentiated global marketing • Multi-segment targeting • Two or more distinct markets Keegan and Green, Chapter 7

17. Positioning • Locating a brand in consumers’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer • Attribute or Benefit • Quality and Price • Use or User • Competition Keegan and Green, Chapter 7

18. Positioning Strategies • Global consumer culture positioning • Identifies the brand as a symbol of a particular global culture or segment • Foreign consumer culture positioning • Associates the brand’s users, use occasions, or product origins with a foreign country or culture Keegan and Green, Chapter 7