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28 Cards in this Set
- Front
- Back
Market Segmentation
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*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. |
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Goal of marketing segmentation
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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.
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What properties should segments ideally possess?
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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. |
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Reasons for international market segmentation
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*Country Screening
*Global market research *entry decisions *positioning strategy *resource allocation *marketing mix policy |
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Country Screening
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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. |
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Global Market Research
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Reason for international market segmentation
*Find out which countries to choose from. *grouping countries into clusters to find the best ones for your market |
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Entry Decisions
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reason for international market segmentation
*can you launch in a similar country? |
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Positioning Strategy
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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 |
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Resource allocation
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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. |
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Marketing Mix Policy
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reason fro international market segmentation
*country segmentation guides the decision of "How to strike a balance between standardization and customization |
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International Market Segmentation Approaches
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1. country-ad-segments or aggregate segmentation
2. Disaggregate international consumer segmentation 3. Two-stage international segmentation |
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Country-ad-segments or aggregate segmentation
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*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) |
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Disaggregate International Consumer segmentation
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*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. |
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Two-stage International segmentation
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*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. |
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Segmentaion Scenarios
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*Universal or global segments
*Regional segments *Unique (diverse) segments |
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Universal or Global Segments
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*A segmentation scenario
*transcend national boundaries; customers have common needs *products/services that work everywhere. |
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Regional Segments
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*a segmentation scenario
*similarities within the region * |
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Unique (diverse) Segment
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*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. |
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Bases for Country Segmentation
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1. Demographics
2. Socioeconomic Variables 3. Behavior-Based Segmentation 4. Lifestyles |
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Demographics
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*a bases for country segmentation
*the most popular criteria *easy to access *a segment that researchers overlook is the elderly |
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Socioeconomic Variables
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*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 |
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Behavior-Based Segmentation
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*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 |
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Lifestyles
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*bases for country segmentation
*looks at attitudes, opinions, and values |
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Steps to formulate a positioning strategy
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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. |
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Uniform v. Localized Positioning Strategies
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*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. |
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Global consumer culture postioning (GCCP)
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*brand as a symbol of a given global consumer culture.
*not unique, wants to be the same. |
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Local consumer culture positioning (LCCP)
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*brand as an intrinsic part of the local culture.
*global product, but feels local |
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Foreign consumer culture positioning (FCCP)
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*brand mystique built around a specific foreign culture.
*global product, but is foreign *Imphasize the origin |