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Segmentation II, International Segmentation

Outline. Aggregation vs. SegmentationReasons for segmentingSpending patterns differCultures differThoughts about cultureSome dimensions on which cultures can differ: Prohibitions, Tastes, Myths, Rituals, What's Sacred."Consequences and challenges of global marketing. International Segmentatio

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Segmentation II, International Segmentation

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    1. Segmentation II, International Segmentation

    2. Outline Aggregation vs. Segmentation Reasons for segmenting Spending patterns differ Cultures differ Thoughts about culture Some dimensions on which cultures can differ: Prohibitions, Tastes, Myths, Rituals, What�s �Sacred.� Consequences and challenges of global marketing

    3. International Segmentation: Should you choose to do it? Aggregate: Use a standardized strategy. Cultures homogenized. Reap economies of scale. Etic perspective. Commonalities across cultures; outsider can judge. Segment: Adopt a localized strategy Countries/ cultures are too different. Emic perspective. Differences between cultures; only insider knows what a culture is like.

    4. Many Reasons to Modify (at least) Strategy Internationally Differences in income and spending across cultures. Differences in language and norms. Many companies have had difficulties with this! Bad translations Unintended meanings Use back-translation!

    5. But� Even the most perfect translation may not be enough. Global/ Standard strategies will be difficult. There are differences in culture that go far beyond language.

    6. What is Culture? A society�s personality. Includes: Abstract ideas Institutions Behaviors Material objects Neither fixed nor innate: Learned Adaptive

    7. Domains/ Areas that Give Rise to Culture Ecology: The way a system is adapted to its habitat. How resources are obtained and distributed. Social structure: The way in which an orderly social life is maintained. Ideology The mental characteristics of a people and how they relate to the environment and social groups.

    8. One Way to Think of Culture As a lens: Influences view of self. Influences view of others. Influences view of products. Perceptions are necessarily influenced by culture. Hard to see sometimes.

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