Lecture Global marketing management (7th edition): Chapter 7 - Masaaki Kotabe, Kristiaan Helsen

Chapter global segmentation and positioning, what you should learn from chapter 7: What the sovereignty of nations means and how it can affect the stability of government policies; how different governmental types, political parties, nationalism, targeted fear/animosity, and trade disputes can affect the environment for marketing in foreign countries; the political risks of global business and the factors that affect stability;...

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MARKETING

MANAGEMENT

Seventh Edition MASAAKI KOTABKE | KRISTIAAN HELSEN

Chapter 7 PowerPoint

Global Segmentation and

Positioning

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Chapter Overview

1 Reasons for International Market Segmentation

2 International Market Segmentation Approaches

3 Segmentation Scenarios

4 Bases for International Market Segmentation

5 International Positioning Strategies

6 Global, Foreign, and Local Consumer Culture

Positioning

7 Appendix

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• Variation in customer needs is the primary motive for market segmentation.

• Most companies will identify and target the most

attractive market segments that they can effectively serve.

• In global marketing, market segmentation becomes especially critical because of wide divergence in

cross-border consumer needs and lifestyles.

• Once the company has chosen its target segments, management needs to determine a competitive

positioning strategy for its products.

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1 Reasons for International Market

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1 Reasons for International Market

• Resource Allocation (Exhibit 7-1)

• Marketing Mix Policy

– Balance between standardization and customization

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Exhibit 7-1: Market Clustering Approach

for Instant Coffee

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2 International Market Segmentation

Approaches

• International segmentation procedures:

– Country-as-segments or aggregate segmentation

(See Exhibits 7-2 and 7-3.)

– Disaggregate international consumer segmentation– Two-stage international segmentation

• Standard country segmentation classifies prospect countries on a single dimension (e.g., per capita

GNP) or on multiple dimensions—cultural,

socioeconomic, and political criteria available from secondary data sources.

• For numerous country characteristics, use data

reduction such as factor analysis.

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Exhibit 7-2: BCG Growth-Share

Segmentation

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Exhibit 7-3: Johnnie Walker Market

Classification for 1997–1998

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3 Segmentation Scenarios

• Universal (global) segments

• Regional segments

• Unique (diverse) segments

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Exhibit 7-4: Different Segment Scenarios

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4 Bases for International Market

• Monetization of transactions within a country

• Gray and Black Market sectors of the economy

• Income disparities

– Purchasing Power Parity (PPP) criteria

– Socioeconomic Strata (SES) Analysis (Exhibit 7-6)– Human development index (HDI) classification

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Exhibit 7-5: Benefit Segments of Toothpaste

Market in the U.S., China, and Mexico

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Exhibit 7-6: Hakuhodo Lifestyle Segmentation: Seven Global Clusters

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Segmentation

• Lifestyle and Values

– Hakuhodo advertising agency in Japan conducts

annual “Global HABIT” survey based on seven

lifestyle segments:

• The Invisibles

• The My Family, My World

• Hungry Climbers

• The My Life, My Way

• Doing Well, Doing Good

• Stable Roots

• First to Crave

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5 International Positioning Strategies

• The formulation of a positioning strategy (local or global) includes the following steps:

1 Identify the relevant set of competing products or brands

2 Determine current perceptions held by consumers about your product/brand and the competition

3 Develop possible positioning themes

4 Screen the positioning alternatives and select the most appealing one

5 Develop a marketing mix strategy

6 Over time, monitor the effectiveness of your positioning strategy and if needed, conduct an audit

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5 International Positioning Strategies

• Uniform versus Localized Positioning Strategies

• Universal Positioning Appeals

– Positioning themes:

• Specific product features/attributes

• Product benefits (rational or emotional), solutions for problems

• User category

• User application

• Heritage

• Lifestyle

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Exhibit 7-8: Global Positioning and Segmentation Strategies

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6 Global, Foreign, and Local Consumer Culture Positioning

• Global consumer culture positioning (GCCP)

– Brand as a symbol of a given global consumer culture

• Local consumer culture positioning (LCCP)

– Brand as an intrinsic part of the local culture

• Foreign consumer culture positioning (FCCP)

– Brand mystique built around a specific foreign culture

• Choice of strategy may depend on: product

category, local competition strategy, economic

development in target EM, and attitudes towards

global products (AGP) versus attitudes towards local products (ALP)

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Exhibit 7-9: McDonald’s Promoting its

Local Community Support in New Zealand

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Appendix: Segmentation Tools

• Segmentation techniques and tools:

– Cluster Analysis: Collection of statistical procedures for dividing objects into groups (clusters) The

grouping is done in such a manner that members

belonging to the same group are very similar to one another but quite distinct from members of other

groups

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Appendix: Segmentation Tools

– Regression Analysis: In regression, one assumes that there exists a relationship between a response variable, Y, and one or more so-called predictor

variables, X1, X2 and so on

– For each of the parameter estimates, the regression analysis will also produce standard error

– The higher the R2 value, the better the ability of the regression model to predict the data

(See Exhibits 7-10 through 7-12.)

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Exhibit 7-10: Principles of Cluster Analysis

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Exhibit 7-11: Plot of Concentration versus

Category Growth Chocolate Market

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Exhibit 7-12: Cluster Analysis

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