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Optimizing Global Marketing Budgets: The Global Segmentation Tool

Discover the nuanced approach to global marketing, balancing localization and standardization for diverse consumer segments. Dr. Nitish Singh provides insights on strategic localization efforts tailored to various global consumer identities and degrees of standardization.

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Optimizing Global Marketing Budgets: The Global Segmentation Tool

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  1. Optimizing Global Marketing Budgets: The Global Segmentation Tool Dr. Nitish Singh, Professor Boeing Institute of International Business, St. Louis University Co-Organizer Brand2Global Conference

  2. Main Questions • Globalisation does not equal homogenisation • How do we know how much to localize our global marketing campaigns?

  3. The Elusive Global Consumer

  4. Standardize or Localize? • The decision whether to standardize or to localize is not dichotomous. • Instead of having a black-and-white view, we need to accept a “middle-of-the-road” approach and understand degrees of localization. Localized Standardized

  5. Global Consumer Identity Degree of Localization? Degree of Standardization?

  6. Global Consumer Segments Global Consumer Segments differ in their preference for different degrees of localization! High Global Identity/ High National Identity (HGHN) High Global Identity/ Low National Identity (HGLN) Users‘ Global Identity Low Global Identity/ Low National Identity (LGLN) Low Global Identity/ High National Identity (LGHN) Users‘ National Identity

  7. Meet The Glocals • High global and high national identity • Have diversified cultural values • Loves home and local products

  8. Deliverables: Strategies for Optimizing Localization Efforts High on Global and National Identity (HGHN): • Consumers in this segment are more open to using global, reflecting their strong global identity, but at the same time demand a high level of localization, reflecting their strong national identity. • These consumers can be a lucrative consumer segment provided marketers develop localized/culturally customized campaigns

  9. Web localization Strategies KO: Norway KO: China KO: Brazil

  10. World Citizens • High global identity, low national identity • Loves global brands, products and websites • Very little localisation required

  11. Deliverables: Strategies for Optimizing Localization Efforts High on global and low on national identity (HGLN) • While this segment embraces global brands, and products, it also has lower expectations for cultural adaptation. • Marketers who have recently embarked on the path of global business and have minimal experience or resources for localization can target this international segment easily. • Companies can also benefit by using standardized communications leading to both economies of scope and scale

  12. Web localization Strategies APPLE: USA AAPL: Brazil APPLE: Denmark

  13. Meet Patriots • High on national identity and low on global identity • Don’t identify with any aspect of global culture • Strong ties to local customs • Fully localised website

  14. Deliverables: Strategies for Optimizing Localization Efforts Low on global identity and high on national identity (LGHN): • This is a hard to reach international segment for marketers promoting global brands, products, and services. • These consumers tend to emphasize the positive aspects of domestic products and discount the virtues of foreign products and services • Marketers would need to use the “local consumer culture positioning”

  15. Web localization Strategies Uniliver: Netherlands Uniliver: Denmark Uniliver: India

  16. Meet the Mini-I • Low on both global and national identity • Driven by a unique identity • Can be an elusive category • Must appeal to this self-interest

  17. Deliverables: Strategies for Optimizing Localization Efforts Low global and national identity (LGLN): • This segment is unique in not identifying with either global or national identity. • They are an elusive segment that needs to be further investigated to ascertain the type of lifestyle they subscribe to. This lifestyle information can then be used as a basis for targeting them on the web.

  18. Web localization Strategies

  19. Typology of Focusing Events A mechanical cause has no will of their own but are designed, by people to produce certain consequences Blame can be clearly assigned to both cause and effect

  20. Typology of Focusing Events • A firm can now examine the event based on whether or not the action was purposeful or unguided and whether or not the consequence of the action was intended or unintended in order to protect itself from the negative effects of that event. • For example, Toyota’s recent massive recall may create consumer animosity towards the firm. If Toyota is perceived to have covered up dangerous defects (a purposeful action) the level of consumer animosity targeted at the firm will be much higher than if Toyota is perceived to have been oblivious to the defects (an unguided action).

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