Transcript Chapter 7
Global Marketing
Management
A European Perspective
Global Segmentation,
Targeting and Positioning
Warren J. Keegan
Bodo B. Schlegelmilch
Overview
Global Market Segmentation
criteria: geographic, demographic, psychographic,
behaviour, and benefit segmentation
Global Targeting
Selecting a Global Target Market Strategy
Global Product Positioning
High-Tech or High-Touch Positioning
Summary
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Global Marketing Management: A European Perspective
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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 segmentation
geographic subsets
Demographic segmentation
eg age, gender, income, occupation
Psychographic segmentation
Behaviour segmentation
Benefit 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, eg by
the Research Institute of Social Change (RISC)
the Centre de Communication Avancé (CCA) and
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%
Elitists
24%
Proud Patrons
23%
Bon Vivants
17%
Fantasists
9%
Description
Driven and ambitious; care about power and control;
expect to be noticed
Old money; a car—even an expensive one—is just a car,
not an extension of one’s personality
Ownership is what counts; a car is a trophy,
a reward for working hard; being noticed doesn’t matter
Cosmopolitan jet setters and thrill seekers;
car heightens excitement
Car represents a form of escape;
don’t care about impressing others;
may even feel guilty about owning car
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 Triad
The researchers studied
consumer attitudes and 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:
The first two groups represent the elite,
the latter two mainstream European consumers.
Successful idealists
Affluent materialists
Comfortable belongers
Disaffected survivors
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Europanel’s Eurostyles
Source: adapted from Josef Mazanec, “Exporting Eurostyles to the USA,” International Journal of
Contemporary Hospitality Management, 5,4 (1993): p.4
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Behaviour and Benefit
Segmentation
Behaviour segmentation
Focus on whether and how much people buy or use a product;
eg usage rates: heavy , medium, and light users, and nonusers
eg user status: potential users, nonusers, ex-users, regulars, first
timers, and users of competitors’ products
Benefit segmentation
Today, consumers basic needs are fulfilled. Therefore, consumers
seek additional value from purchase decisions;
eg cars: in addition to movement buyers seek personal safety,
image, superior engine power (speed) etc.
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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
As in single-country targeting, the most important
criteria are:
Current size of the segment and anticipated
growth potential
Competitive intensity and potential competition
Compatibility with the company’s overall
objectives and the feasibility of successfully
reaching a designated target
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Selecting a
Global Target Market Strategy
standardised global marketing
i.e. mass marketing, the same marketing mix for a
broad market of potential buyers; e.g. Revlon
concentrated global marketing
targeted at a single segment of the global market, e.g.
Winterhalter (German dishwashers for hotels)
differentiated global marketing
2 or more different segments; e.g. VW (cars for various
target groups: Porsche, Skoda, VW Golf etc.)
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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-FoodRestaurants 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,
products that can be demonstrated easily.; eg polaroid
cameras
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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; e.g., soft drinks
global village products, such as cosmetics or fashion
products that use universal themes; e.g. „heroism“ in
Levis ads (jeans)
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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.
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