Copyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International Marketing Segmentation, Targeting, and PositioningDana-Nicoleta LascuChapter 7Copyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Chapter b!ecti"es# Identi$y the rationale $or adopting a target marketing strategy in international markets# Identi$y the re%uirements necessary $or e$$ecti"e international market segmentation# Introduce the concept o$ country attracti"eness analysis and o$$er a blueprint $or conducting the analysis# Identi$y the bases $or consumer segmentation and o$$er company application e&amples# Describe the three targeting strategies used by companies 'orld'ide# Describe the si& positioning strategies that international companies can use to position their brands in the minds o$ target consumersCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International Target Marketing#Identi$y consumer segments 'ith similar traits#Select segments company can ser"e e$$iciently #De"elop products tailored to each segment#$$er products to the target market(Communicate traits that di$$erentiate the productCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International SegmentationThe process o$ identi$ying countries and)or consumers that are similar 'ith regard to key traits, such as product*related needs and 'ants, that 'ould respond 'ell to a product and related marketing mi&+MUST BE performed at country level AND at consumer level.Copyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002,e%uirements $or -$$ecti"e International Segmentation#Measurability#Substantiality#Stability o"er time#Accessibility#Actionability#Di$$erential responseCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International Macro*Segmentation#Market potential indicators:.ross domestic product /.DP0 per capitaIndustrial and agricultural sector statisticsMarket si1e and potentialConsumer buying po'erIn"estment $igures /2DI, other trade statistics0Copyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International Macro*Segmentation, continued#Political, legal and financial environment of countr-thnic con$lict3istory o$ 'ar engagementAnti$oreigner sentiment,ecent nationali1ation acti"ities4egal ambiguityTrade barriers -&change rate controlsCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International Macro*Segmentation, continued#Marketing support infrastructureA"ailability and reliability o$ distribution and logistics pro"idersA"ailability o$ competent partners $or strategic alliances5uality o$ telecommunication and transportation in$rastructureA"ailability o$ other ser"ice pro"iders(*Marketing research $irms*2inancial $irms*Management consulting $irms6Copyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002International Macro*Segmentation, continued#Strength o$ brand 7 brand $ranchise#Degree o$ market $it 'ith company policies, goals, and resourcesCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Micro*Segmentation#!asis for "egmentationDemographic* #ge* $ccupation* %ducation* &ncome* %thnicit* 'ace* Nationalit* Life-ccle stage* "ocial class* (r)ani*ationCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Micro*Segmentation, continued#!asis for "egmentationPsychographic( li$estyles, "alues, attitudes, interests, opinions* 3o$stede dimensions( #Po'er*distance#Masculinity*$emininity#8ncertainty a"oidance#Indi"idualism*collecti"ism* .lobal segments(#.lobal teenagers#.lobal eliteCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Micro*Segmentation, continued#!asis for "egmentation9ene$it Segmentation.eographicCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Micro*Segmentation, continued#9asis $or Segmentation8sage * :onusers* ccasional users* Medium users* 3ea"y users8ser Status* 8ser o$ competitors;products* -&*users* Potential users* 2irst*time users* ,egular usersCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Country Screening and Selection#Assign importance score to each country screening criteria#-"aluate country per$ormance on each o$ the screening criteria#Calculate country attracti"eness scoreCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Target Market Decisions#Di$$erentiatedIdenti$y or create market segments desiring di$$erent product bene$its and target each segment 'ith a di$$erent brand and di$$erent marketing strategies-&ample( Procter < .ambleCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Target Market Decisions, continued#ConcentratedSelect only one market segment and target it 'ith a single brand-&ample( Mont 9lanc pensCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Target Market Decisions, continued#8ndi$$erentiated Aim the product at the market 'ith a single strategy regardless o$ the number o$ market segments-&ample(po'der milk, beansCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Positioning the 9rand=0 Identi$y competitors20 Determine ho' they are percei"ed by consumers>0 Determine positioning in consumer;s minds?0 Analy1e customers@0 Select positioningA0 Monitor positionCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Positioning the 9rand, continued#Attribute)9ene$it#Price)5uality#8ses or Application#Product 8ser#Product Class#CompetitionCopyright Atomic Dog Publishing, 2002 Copyright Atomic Dog Publishing, 2002Chapter Summary#,ationales and re%uirements $or adopting target marketing strategies in international markets#Country attracti"eness#9ases $or consumer segmentation and company application e&amples#The international targeting strategies #The positioning strategies