Amity Business School

Global Segmentation and Positioning

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market segmentation becomes especially critical because of wide divergence in cross-border consumer needs and lifestyles. • In global marketing. 2 . • Most companies will identify and target the most attractive market segments that they can effectively serve.Amity Business School Introduction • Variation in customer needs is the primary motive for market segmentation.

) • Once the management has chosen its target segments. 3 . management needs to determine a competitive positioning strategy for its products.Amity Business School Introduction (contd.

Amity Business School Reasons for International Market Segmentation • Segments ideally should possess the following set of properties: – Identifiable – Sizable – Accessible – Stable – Responsive – Actionable 4 .

Amity Business School Reasons for International Market Segmentation • • • • • • Country Screening Global Market Research Entry Decisions Positioning Strategy Resource Allocation Marketing Mix Policy – Balance between standardization and customization 5 .

Amity Business School International Market Segmentation Approaches • International segmentation procedures: – Country-ad-segments or aggregate segmentation – Disaggregate international consumer segmentation – Two-stage international segmentation • The standard country segmentation procedure classifies prospect countries on a single dimension 6 .

per capita GNP) or on a set of multiple socioeconomic. • When there are numerous country traits.Amity Business School International Market Segmentation Approaches (e.g. 7 . political. and cultural criteria available from secondary data sources. use smaller set of dimensions using data reduction techniques such as factor analysis..

Amity Business School Segmentation Scenarios • Universal or global segments • Regional segments • Unique (diverse) segments 8 .

Amity Business School Bases for Country Segmentation • Demographics – Demographics variables are among the most popular criteria. • Socioeconomic Variables – Caveats in using per capita income as an economic development indicator: • Monetization of transactions within a country 9 .

Amity Business School Bases for Country Segmentation • Gray and Black Market sections of the economy • Income disparities – Purchasing Power Parity (PPP) criteria – Socioeconomic Strata (SES) Analysis – Human development index (HDI) classification • Behavior-Based Segmentation 10 .

Amity Business School Bases for Country Segmentation • Lifestyles – Global Values Segments. the survey investigated 1000 consumers in 35 countries (source: Robert Starch Worldwide): • Strivers (23 percent) • Devouts (22 percent) • Altruists (18 percent) • Intimates (15 percent) • Fun Seekers (12 percent) • Creatives (10 percent) 11 .

Determine current perceptions held by consumers about your product/brand and the competition. 12 . Develop possible positioning themes. Screen the positioning alternatives and select the most appealing one. 4. 3. Identify the relevant set of competing products or brands.Amity Business School International Positioning Strategies • The formulation of a positioning strategy (local or global) includes the following steps: 1. 2.

Amity Business School International Positioning Strategies 5. Localized Positioning Strategies • Universal Positioning Appeals – Positioning themes: • Specific product features/attributes • Product benefit. • Uniform vs. conduct an audit. 6. monitor the effectiveness of your positioning strategy and if needed. solutions for problems 13 . Develop a marketing mix strategy. Over time.

Amity Business School 5. International Positioning Strategies • User application • Lifestyles 14 .

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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. Global. Foreign. • Foreign consumer culture positioning (FCCP) – Brand mystique built around a specific foreign culture 16 .Amity Business School 6.

Amity Business School 17 .

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