MKT300
International Marketing
-Segmentation, targeting, and positioning-
-Learning objectives-
0 Identify the variables that global marketers can use to
segment global markets and give an example of each.
0 Explain the criteria that global marketers use to choose
specific markets to target.
0 Understand how global marketers use a product-market
grid to make targeting decisions.
0 Compare and contrast the three main target market
strategy options.
0 Describe the various positioning options available to
global marketers.
-global market segmentation-
0 Defined…
0 The process of dividing the world market into distinct
subsets of customers that have similar needs (for example,
country groups or individual interest groups)…
0 Inspired…
0 Theodore Levitt (1988)
0 Argued that consumers seek variety, new segments will
appear in many national markets…
0 Segment simultaneity
0 …think of pizza, sushi
-global market segmentation-
0 Types of segmentation methods
0 Geographic segmentation
0 Demographic segmentation
0 Psychographic segmentation
0 Behavioral segmentation
0 Benefit segmentation
-global market segmentation-
0 Geographic segmentation
0 Dividing the world into geographic subgroups
0 The advantage of geography is proximity
0 However, just because people are in close proximity does
not mean they are similar
0 Africa – French, German, English influences
0 Within the same country – North of Botswana vs South
0 People in the North-east of Botswana might have similar
tastes and preferences to people in Zimbabwe than those in
the South of Botswana.
-global market segmentation-
0 Examples… Age
0 Demographic segmentation
0 500 million Asians aged <16yrs
0 Based on measurable 0 India has the youngest
population characteristics population among the world’s
large nations; 1/2 are < 25; 14 yr.
0 Age olds & > equal the entire U.S.
0 Income population
0 Half of Japanese will be 50+ yrs.
0 Gender by 2025
0 Age distribution 0 20% of Americans (70 million)
will be 65+ by 2030
0 Education
0 U.S. Ethnic groups—
0 Occupation African/Black, Hispanics, &
0 Generally, national income is the Asian Americans have a
combined annual buying power
most important variable of $233 billion
-global market segmentation-
0 Examples…Income
0 Demographic segmentation
0 2/3 world GNI in the Triad
0 Based on measurable (N/America, EU, Japan), 12% of
population characteristics population
0 Don’t use income as the only variable
0 Age for assessing market opportunity
0 Income 0 Use Purchasing Power Parity
0 Gender 0 Do not read too much into the
numbers
0 Age distribution 0 Some services are free in
0 Education developing nations so there is
more purchasing power
0 Occupation 0 For products with low enough price,
0 Generally, national income is the population is a more important
variable
most important variable
-global market segmentation-
0 Market segments by age
0 Global Teens-12 and 19 yr. olds
“A group of teenagers randomly chosen
from different parts of the world will
share many of the same tastes.”
0 Global Elite–affluent consumers who
are well traveled and have the money
to spend on prestigious products with
an image of exclusivity
-global market segmentation-
0 Gender segmentation
0 Gender segmentation is an obvious choice for
some companies
0 Fashion designers & cosmetic companies focus on
women but may also offer men’s products
0Nike is opening shops for women
(https://news.nike.com/news/nike-women-s-only-store-with-premium-on-
site-sports-experience-opens-in-shanghai)
0Levi Strauss opened Levis for Girls in Paris
(https://www.levistrauss.com/2016/09/30/levis-opens-womens-only-
store-in-nice/)
-global market segmentation-
0 Psychographic segmentation
0 Based on attitudes, values and lifestyle
0 Lifestyle surveys
0 SRI International’s Values and Lifestyles, VALS & VALS 2
0 Porsche example
0 Top Guns (27%): Ambition, power, control
0 Elitists (24%): Old money, car is just a car
0 Proud Patrons (23%): Car is reward for hard work
0 Bon Vivants (17%): Car is for excitement, adventure
0 Fantasists (9%): Car is a form of escape
-global market segmentation-
0 The Euroconsumer
0 Successful Idealists–5% to 20% of the population; consists of
persons who have achieved professional and material success
while maintaining commitment to abstract or socially
responsible ideals
0 Affluent Materialists–Status-conscious ‘up-and-comers’– many
of whom are business professionals – use conspicuous
consumption to communicate their success to others
-global market segmentation-
0 The Euroconsumer
0 Comfortable Belongers
0 25% to 50% of a country’s population
0 conservative
0 most comfortable with the familiar
0 content with the comfort of home, family, friends, and community
0 Disaffected Survivors
0 lack power and affluence
0 harbor little hope for upward mobility
0 tend to be either resentful or resigned
0 concentrated in high-crime urban inner city
0 attitudes tend to affect the rest of society
-global market segmentation-
0 Behaviour segmentation
0 Focus on whether people purchase a product or not, how
much, and how often they use it
0 User status: heavy, medium, light, none user
0 Potential, current, or none user
0 80/20 Rule or Law of Disproportionality or Pareto’s
Law–80% of a company’s revenues are accounted for by
20% of the customers
0 Informs growth strategy
0 Should firm grow in country where there are low user rates? Or
find new country markets with potential users…?
-global market segmentation-
0 Benefit segmentation
0 Benefit segmentation focuses on the value equation
0 Value = Benefits/Price
0 Based on understanding the problem a product solves, the benefit
it offers, product attributes, or the issue it addresses
-global market segmentation-
0 Ethnic segmentation 0 Hispanic Americans
0 The population of many 0 50 million Hispanic
countries includes ethnic Americans (14% of total
groups of significant size pop.) with $978 billion
annual buying power
0 “$1 trillion Latina” 24
0 Three main groups in the
million Hispanic women:
U.S. include African-
42% single, 35% HOH, 54%
Americans, Asian-
working
Americans, and Hispanic
Americans
- Good day -
