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28 Cards in this Set

  • Front
  • Back
Market Segmentation
*the primary motive is variation in customer needs.
*need to identify and target the most attractive market segments thay you can effectively serve.
*determine a competitive postioning strategy.
Goal of marketing segmentation
To break down the market foor a product or a service into different groups of consumers who differ in their response to the firm's marketing mix program.
What properties should segments ideally possess?
1. Identifiable:should be easy to define and to measure by socioeconomic variables (income)
2. Sizable:segments should be large enough to be worth going after.
3. Accessible:segments should be easy to reach (through media)
4. Stable:behavior of markets should not change or not often
5. Responsive:segments should respond differently from each other
6. Actionable:the needs should be consistent with the goals.
Reasons for international market segmentation
*Country Screening
*Global market research
*entry decisions
*positioning strategy
*resource allocation
*marketing mix policy
Country Screening
reason for international market segmentation
*find out if the country is an attractive market.
*Countries are screened on cultural distance, market attractiveness or economic infrastructure.
Global Market Research
Reason for international market segmentation
*Find out which countries to choose from.
*grouping countries into clusters to find the best ones for your market
Entry Decisions
reason for international market segmentation
*can you launch in a similar country?
Positioning Strategy
reason for international market segmentation
*to embrace the chosen markets
*how ti wants to position its products in the mind of the prospective target customers.
*environmental changes or shifting consumer preferences often force a firm to rethink its positioning strategy
Resource allocation
reason for international market segmentation
*how to allocate scarce marketing resources across different countries
*concentrate marketing resources in countries that have a low market share but a high per capita consumption.
Marketing Mix Policy
reason fro international market segmentation
*country segmentation guides the decision of "How to strike a balance between standardization and customization
International Market Segmentation Approaches
1. country-ad-segments or aggregate segmentation
2. Disaggregate international consumer segmentation
3. Two-stage international segmentation
Country-ad-segments or aggregate segmentation
*Most common international market segmentation approach
*classifies prospect countries geographically on a single dimension or on a set of multiple socioeconomic, political and cultural criteria available from secondary data sources (world bank, etc)
Disaggregate International Consumer segmentation
*very complex, less common international market segmentation approach.
*focuses on the consumer in any country, but who has similar demographics
*problem is the targeting a consumer segment that is geographically dispersed can become a logistical nightmare.
Two-stage International segmentation
*combines the 2
*Step 1: aggregate-countries are grouped on general segmentation bases. This step enables managers to screen out countries that are unacceptalbe or do not fit the objective.
*Step 2:disaggregate-data are gathered on product-specific bases. This data forms the ingrediants for identifying the cross-national segment of consumers within the geographic segment chosen.
Segmentaion Scenarios
*Universal or global segments
*Regional segments
*Unique (diverse) segments
Universal or Global Segments
*A segmentation scenario
*transcend national boundaries; customers have common needs
*products/services that work everywhere.
Regional Segments
*a segmentation scenario
*similarities within the region
*
Unique (diverse) Segment
*a segmentation scenario
*gaps in cross-country customer needs and preferences.
*met by only very specific preferences.
*marketing mix programs need to be localized the meet local needs.
Bases for Country Segmentation
1. Demographics
2. Socioeconomic Variables
3. Behavior-Based Segmentation
4. Lifestyles
Demographics
*a bases for country segmentation
*the most popular criteria
*easy to access
*a segment that researchers overlook is the elderly
Socioeconomic Variables
*a bases for country segmentation
*caveats in using per capita income as an economic development indicator:
-monetization of transactions with a country
-gray and black market sections of the economy
-income disparities
*Alternative measures:
-Purchasing Power Parity (PPP) criteria
-Socioeconomic Strata (SES) analysis
-Human development Index (HDI) classification
Behavior-Based Segmentation
*bases for cuntry segmentation
*segments can be formed based on behavioral response variables.
*EX: degree of brand loyalty, usage rates, product penetration and benefits sought
Lifestyles
*bases for country segmentation
*looks at attitudes, opinions, and values
Steps to formulate a positioning strategy
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 position alternatives and select teh 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.
Uniform v. Localized Positioning Strategies
*Uniform:
-specific product features/attributes
-product benefit, solutions for problems
-user application
-lifestyles
-low costs
-brand image is the same across markets
-less time
*Localized
-targets more locally
-costs more
-more time
-individualize every product.
Global consumer culture postioning (GCCP)
*brand as a symbol of a given global consumer culture.
*not unique, wants to be the same.
Local consumer culture positioning (LCCP)
*brand as an intrinsic part of the local culture.
*global product, but feels local
Foreign consumer culture positioning (FCCP)
*brand mystique built around a specific foreign culture.
*global product, but is foreign
*Imphasize the origin