Global Marketing Management

Warren J. Keegan

Chapter 7 Segmentation, Targeting and Positioning

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Overview

Global Market SegmentationGlobal TargetingGlobal Product PositioningHigh-Tech Positioning High-Touch PositioningSummary

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Learning Objectives

To understand the objectives and usefulness of global market segmentation

To know the approaches to global market segmentation using different segmentation criteria to define target groups

To learn different ways of positioning products in global markets

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Global Market Segmentation

... is the process of dividing the world market

into distinct subsets of customers

that have similar needs

(eg country groups or individual interest groups).

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Criteria for Global Market Segmentation

Geographic segmentationDemographic segmentationPsychographic segmentationBehaviour segmentationBenefit segmentation Vertical v. horizontal segmentation

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Psychographic Segmentation

... is based on attitudes, values and lifestyle... is measured through extensive item

batteries which cover activities, interests and opinions (AIO-studies)

lifestyle surveys, the Values and Life Styles (VALS) by SRI

International

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Psychographic Profiles of Porsche’s American Customers

Category % of all owners

Top Guns 27% Driven and ambitious; care about power and control; expect to be noticed

Elitists 24%Old money; a car—even an expensive one—is just a car,

not an extension of one’s personality

Proud Patrons 23%Ownership is what counts; a car is a trophy,

a reward for working hard; being noticed doesn’t matter

Bon Vivants 17% Cosmopolitan jet setters and thrill seekers; car heightens excitement

Fantasists 9%Car represents a form of escape;

don’t care about impressing others; may even feel guilty about owning car

Description

Source: ALEX III Taylor, „Porsche Slices up its Buyers“, Fortune, 16 January 1995, p. 24

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Backer Spielvogel & Bates’ Global Scan (BSB Global Scan )

... encompasses 18 countries, mostly in the TriadThe researchers studied

consumer attitudes & values, media viewership/readership, buying patterns, product use.

5 global psychographic segments represent 95% of the adult populations in the countries surveyed.

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The Target Groups of BSB’s Global Scan

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D’arcy Massius Benton & Bowles’ Euroconsumer Study

... focuses on Europe ... identified four lifestyle groups:

Successful idealists Affluent materialists Comfortable belongers Disaffected survivors

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Behaviour and Benefit Segmentation

Behaviour segmentationFocus on whether & how much people buy or use a product;

• usage rates: heavy , medium, light users, nonusers• user status: potential users, nonusers, ex-users,

regulars, first timers & users of competitors’ products

Benefit segmentationToday, consumers basic needs are fulfilled. Therefore, consumers seek additional value from purchase decisions

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Global Targeting

After markets have been segmented, targeting

aims at evaluating and comparing the indentified

segments in order to select one or more as

prospect(s) with the highest potential.

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Criteria for Targeting

Current size of the segment & growth potential

Potential competition

Compatibility & feasibility

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Selecting a Global Target Market Strategy

standardised global marketing mass marketing, the same marketing mix for a

broad market of potential buyersconcentrated global marketing

targeted at a single segment of the global market

differentiated global marketing 2 or more different segments

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Global Product Positioning

is the location of a product in the mind of the consumer

is partly controlled by the marketer (marketing mix) and partly not!

is visualised by a “positioning map” 2 dimensions or multidimensional (MDS)

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Positioning Map of American Fast-Food-Restaurants in the Mind of Consumers

Source: adapted from James H. Myers, Segmentation and Positioning for Strategic Marketing Decisions (American Marketing Association, Chicago, 1996), S. 187

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High-Tech Positioning

Positioning stragtegy for products which are purchased on concrete product features; buyers typically already possess or wish to acquire considerable technical information

Suitable for technical products, such as computers or

chemicals, special-interest products, such as sporting

goods

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High-Touch Positioning

The emphasis lies more on the product’s image; specialised information appears of minor relevance

Suitable for products that solve a common problem: soft

drinks global village products: cosmetics or fashion products that use universal themes

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Summary Before a company expands to foreign markets it must

analyse the global environment. Global market segmentation aims at identifying

similarities and differences of potential customers. Global targeting: The market segments are evaluated

and compared and an appropriate targeting strategy is developed.

To reach the targeted market segment(s) a positioning strategy must be chosen; in a global context high-tech or high-touch positioning are promising.