5 Flashcards
Market segmentation refers to
aggregating prospective buyers into groups or segments with common needs and who respond similarly to a marketing action.
Global Market Segmentation is
the process of dividing the world market into distinct subsets of customers that have similar needs (e.g., country groups or individual interest groups).
Segmentation methods (4 types)
Demographic, Psychographic, Behaviour, and Ethnic segmentation.
Demographic Segmentation is
based on measurable population characteristics; age, income, gender, education, occupation.
Psychographic Segmentation involves
grouping people in terms of their attitudes, values, and lifestyles.
Behaviour Segmentation focuses
on whether people purchase a product or not, how much, and how often they use it.
Pluralization of Consumption or segment simultaneity theory states
that consumers seek variety and new segments will appear in many national markets. e.g., sushi, pizza
Targeting involves
evaluating the segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond.
Pitfalls of targeting
- Tendency to overstate the size and short-term
attractiveness of individual country markets. - The company does not want to ‘miss out’ on a
strategic opportunity - Management’s network of contacts will emerge
as a primary criterion for targeting
Important: When assesing market potential this should be considerd:
- Current size of the segment and growth potential
o Single market segment may be small but if in several countries may hold potential - Potential competition
o May avoid markets with strong competition unless vulnerable because of price or quality - Feasibility and compatibility
o Regulatory factors
o Marketing issues like distribution
o Adaptation?
Important: Target Market Strategy Options
Undifferentiated, Concentrated or Differentiated Global Marketing.
Undifferentiated Marketing Strategy is
Standardized global marketing, meaning massmarketing, standard, mnimal adaptaion, intensive distrobution & low production and communication costs.
Concentrated Global Marketing includes
o Niche marketing
o Single segment of global market
o Look for global depth rather than national breadth
Differentiated Global Marketing includes
o Multisegment targeting
o Two or more distinct markets
o Wider market coverage
Positioning is
locating a brand in consumers’ minds over and against competitors in regards to Attribute or Benefit, Quality and Price, Use or User, & Competition.