CHAPTER 5 – GLOBAL MARKET AND
RESEARCH ANALYSIS
MARKET SEGMENTATION AND TARGETING IN
INTERNATIONAL CONTEXT
Market Segmentation
→ is the process of dividing a larger market into smaller,
distinct groups of consumers who share similar
characteristics, needs, and preferences.
→ it enables businesses to understand and respond to the
diverse requirements of various customer segments.
→ in intl. markets, segmentation considers not only
demographic factors but also cultural, economic, and
social nuances.
→ for instance, a product that’s popular in one country
might not appeal to consumers in another due to cultural
differences.
Targeting
→ involves selecting specific segments to concentrate
marketing efforts on.
→ it’s about identifying the most promising customer
groups and crafting strategies that resonate with their
preferences and needs.
Resource Optimization
→ effective targeting maximizes resources, as businesses
can allocate their time, money, and efforts towards the
segments with the highest potential for success.
Rather than applying a one-size-fits-all approach,
businesses tailor their marketing messages and product
offerings to suit each targeted segment.
Market segmentation and targeting enable businesses to
address the unique preferences and needs of diverse
customer groups, whether on a local or international
scale.
This strategic approach enhances customer satisfaction
and helps businesses effectively allocate resources for
optimal results.
ENVIRONMENTAL FACTORS AFFECTING
INTERNATIONAL MARKETING DECISIONS
MACROENVIRONMENTAL FACTORS
→ encompass a range of external influences that impact
international marketing decisions.
→ these factors can significantly shape how businesses
approach foreign markets.
Economic Indicators
→ such as GDP, income levels, and inflation rates can
impact consumer purchasing power and market demand.
Cultural
→ differences, including language, customs, values, and
norms, play a vital role in determining whether a product
or marketing message resonates with the local audience.
Political
→ stability, trade policies, regulations, and trade
agreements can affect market entry and operations.
Legal/Laws
→ related to intellectual property, product safety,
labeling, and advertising vary across countries and can
influence marketing strategies.
Technological
→ advancements and infrastructure influence how
products are distributed, promoted, and purchased.
ADAPTATION vs. STANDARDIZATION
Adaptation and Standardization
→ business face the decision of whether to adapt their
marketing strategies to fit local conditions or to
standardize their approach globally.
Global Consistency vs. Local Relevance
→ standardization allows for consistent branding and
messaging across markets, but it may overlook local
preferences and cultural nuances.
→ adaptation allows businesses to tailor their strategies
to local customs and preferences, but it can be complex
and resource-intensive.
Striking a Balance
→ striking a balance between adaptation and
standardization is crucial.
→ some elements may be standardized, while others
require local customization.

Environmental factors exert a significant influence on
intl. marketing decisions.
Businesses must carefully consider economic, cultural,
political, legal, and technological factors when
formulating their marketing strategies for different
global markets.
The choice between adaptation and standardization
depends on finding the right balance between global
consistency and local relevance.
CONDUCTING MARKET RESEARCH AND
ASSESSING MARKET POTENTIAL
MARKET RESEARCH PROCESS
The market research process is a systematic approach
for collecting, analyzing, and interpreting information
about target markets.
→ it provides businesses with insights to make informed
decisions and formulate effective marketing strategies.
Data Collection
→ on various aspects, including demographics,
consumer behavior, preferences, competitors, and
economic trends.
→ Techniques such as surveys, focus groups, interviews,
and data analysis tools are used to gather relevant
information.
Data Analysis and Interpretation
→ once data is collected, it is analyzed to identify
patterns, trends, and key insights that guide decision-
making.
→ interpreting data helps businesses understand
consumer preferences, market dynamics, and potential
opportunities.
Conducting thorough market research and assessing
market potential are essential steps in developing
effective intl. marketing strategies.
By systematically collecting and analyzing relevant data,
businesses can make informed decisions, identify
opportunities, and tailor their strategies to suit he unique
characteristics of each target market.
ANALYZING CULTURAL, ECONOMIC, AND
POLITICAL FACTORS IN TARGET MARKETS
Cultural Analysis
→ involves gaining insights into the cultural norms,
values, beliefs, and preferences of the target market.
→ adapting marketing strategies to align with local
culture is essential for successful market entry.
Understanding cultural norms and values helps
businesses avoid cultural faux pas and ensures messages
are received positively.
Adapting products, packaging, and promotional tactics
to resonate with local cultural sensitivities.
Economic Analysis
→ involves evaluating economic indicators, income
levels, purchasing power, and distribution channels
within the target market.
Analyzing income distribution helps determine whether
products should be positioned as premium or affordable
options,
Assessing purchasing power informs pricing strategies
and product offerings.
Political Analysis
→ assesses political stability, trade policies, regulations,
and potential risks in the target market.
→ ensures a conductive business environment and
reduces uncertainties for long-term operations.
Instabilities can disrupt supply chains and consumer
confidence.
Adapting to Political Challenges
→ adapting strategies to navigate potential political
challenges, changes in trade policies, or regulatory shifts
is crucial for business sustainability.

Analyzing cultural, economic, and political factors is

vital for businesses to develop effective and well-
informed intl. marketing strategies.
By tailoring strategies to local culture, economic
conditions, and political environment, businesses can
position themselves for success and mitigate risks
associated with market entry and expansion.