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International consumers: segmentation

International consumers: segmentation. Segmentation. ‘the process of identifying specific segments - whether they be country groups or individual consumer groups - of potential customers with homogeneous attributes who are likely to exhibit similar buying behaviour’ ( Hassan and Katsanis 1992).

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International consumers: segmentation

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  1. International consumers: segmentation

  2. Segmentation • ‘the process of identifying specific segments - whether they be country groups or individual consumer groups - of potential customers with homogeneous attributes who are likely to exhibit similar buying behaviour’ ( Hassan and Katsanis 1992)

  3. Part of a key marketing analysis process • Segmentation • Targeting • Positioning

  4. Segmentation methods/variables(Keegan and Schlegelmilch 2001) • Demographic • Psychographic • Behavioural • Benefits sought • Geographic • Cultural • Usually linked into a profile

  5. Demographic • Age, gender, population size, income, education, lifecycle stage • Beware! Not all statistics are presented in the same way. • E.g. definitions of socio/economic groups differ

  6. Demographic segmentation • Age is commonly used to identify global segments • E.g. global teenagers 12 to 19 linked to: • Fashion • Lifestyle • Music • Brand preferences

  7. Psychographic segmentation • Based on : • Attitudes and values • Lifestyle ( behaviour determined by attitudes and values) • Data collected on activities, interests and opinions (AIO studies)

  8. E.g. YUPPI • Young • Upwardly-mobile • Person

  9. E.g. DINKY • Double income • No kids

  10. SINBAD • Single • No blokes and • Desperate

  11. Global Scan*:AIO study (18 countries in Triad regions) • Strivers (26%): young, ambitious, materialistic, hedonistic • Achievers (22%): older, affluent, successful, status conscious, quality focused • Pressured (13%): women, family/life/financial problems • Adapters (18%): older, content, value-centred, open about change • Traditionals (16%): ’rooted to the past’, cling to country’s heritage and culture *Backer, Spielvogel and Bates

  12. Behavioural segmentation • Who buys it? • How often? • What for? • Who for? • Who doesn’t buy it? • Who no longer buys it?

  13. Benefit segmentation • What added value do I get? • E.g. Volvo offers safety Rolls Royce offers status • Products are bundle of benefits not physical objects

  14. Multiple-attribute segmentationE.g. A watch

  15. Targeting • 2 steps: • Assessing the opportunity in each segment • Selecting the target segment(s)

  16. Assessing the opportunity – the criteria • Market: size and growth: • In one country (China) • Across the globe (the MTV generation) • The competition: • How strong? (Coke v Pepsi –100% share in Russia) • Are there gaps? • What are their weaknesses? (Japanese 4-year PLC) • Compatibility and feasibility • Resources? • Organisational structure? • Competitive advantage?

  17. Positioning • Defining a product/service/organisation in terms of its similarity/dissimilarity to competitors • Aims to establish a unique positioning which meets needs of defined market segments (Ries and Trout 1981) • ‘Positioning…is not what you do to a product…(it) is what you do to the mind of the prospect’ (Ries and Trout)

  18. The positioning • ‘Positioning strategy distinguishes a company’s service offers from those of its competitors’ (Palmer) • ‘Positioning puts a firm in a sub-segment of its chosen market’ (Palmer)

  19. BMW’s European positioning 1992

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