1. Global Marketing Management
Masaaki Kotabe & Kristiaan Helsen Third Edition John Wiley & Sons, Inc., 2004
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

2. Global Segmentation and Positioning
Chapter 7
Global Segmentation and Positioning
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

3. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
Chapter Overview
1. Reasons for International Market Segmentation
2. International Market Segmentation Approaches
3. Segmentation Scenarios
4. Bases for Country Segmentation
5. International Positioning Strategies
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

4. Chapter Overview (contd.)
6. Global, Foreign, and Local Consumer
Culture Positioning
7. Appendix
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

5. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
Introduction
Variation in customer needs is the primary motive for market segmentation.
Most companies will identify and target the most attractive market segments that they can effectively serve.
In global marketing, market segmentation becomes especially critical because of wide divergence in cross-border consumer needs and lifestyles.
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

6. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
Introduction (contd.)
Once the management has chosen its target segments, management needs to determine a competitive positioning strategy for its products.
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

7. 1. Reasons for International Market Segmentation
Segments ideally should possess the following set of properties:
Identifiable
Sizable
Accessible
Stable
Responsive
Actionable
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

8. 1. Reasons for International Market Segmentation (contd.)
Country Screening
Global Market Research
Entry Decisions
Positioning Strategy
Resource Allocation
Marketing Mix Policy
Balance between standardization and customization
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

9. 2. International Market Segmentation Approaches
International segmentation procedures:
Country-ad-segments or aggregate segmentation
Disaggregate international consumer segmentation
Two-stage international segmentation
The standard country segmentation procedure classifies prospect countries on a single dimension
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

10. 2. International Market Segmentation Approaches (contd.)
(e.g., per capita GNP) or on a set of multiple
socioeconomic, political, and cultural criteria available from secondary data sources.
When there are numerous country traits, use smaller set of dimensions using data reduction techniques such as factor analysis.
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

11. 3. Segmentation Scenarios
Universal or global segments
Regional segments
Unique (diverse) segments
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

12. 4. Bases for Country Segmentation
Demographics
Demographics variables are among the most popular criteria.
Socioeconomic Variables
Caveats in using per capita income as an economic development indicator:
Monetization of transactions within a country
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

13. 4. Bases for Country Segmentation (contd.)
Gray and Black Market sections of the economy
Income disparities
Purchasing Power Parity (PPP) criteria
Socioeconomic Strata (SES) Analysis
Human development index (HDI) classification
Behavior-Based Segmentation
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

14. 4. Bases for Country Segmentation (contd.)
Lifestyles
Global Values Segments; the survey investigated 1000 consumers in 35 countries (source: Robert Starch Worldwide):
Strivers (23 percent)
Devouts (22 percent)
Altruists (18 percent)
Intimates (15 percent)
Fun Seekers (12 percent)
Creatives (10 percent)
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

15. 5. International Positioning Strategies
The formulation of a positioning strategy (local or global) includes the following steps:
1. Identify the relevant set of competing products or brands.
2. Determine current perceptions held by consumers about your product/brand and the competition.
3. Develop possible positioning themes.
4. Screen the positioning alternatives and select the most appealing one.
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

16. 5. International Positioning Strategies (contd.)
5. Develop a marketing mix strategy.
6. Over time, monitor the effectiveness of your positioning strategy and if needed, conduct an audit.
Uniform vs. Localized Positioning Strategies
Universal Positioning Appeals
Positioning themes:
Specific product features/attributes
Product benefit, solutions for problems
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

17. 5. International Positioning Strategies (contd.)
User application
Lifestyles
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

19. 6. Global, Foreign, and Local Consumer Culture Positioning
Global consumer culture positioning (GCCP)
Brand as a symbol of a given global consumer culture
Local consumer culture positioning (LCCP)
Brand as an intrinsic part of the local culture.
Foreign consumer culture positioning (FCCP)
Brand mystique built around a specific foreign culture
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

20. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
7. Appendix
Segmentation techniques and tools:
Cluster Analysis: Collection of statistical procedures for dividing objects into groups (clusters). The grouping is done in such a manner that members belonging to the same group are very similar to one another but quite distinct from members of other groups.
Regression Analysis: In regression, one assumes that there exists a relationship between a response variable, Y, and one or more so-called predictor variables, X1, X2 and so on.
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21. Kotabe & Helsen's Global Marketing Management, Third Edition, 2004
7. Appendix (contd.)
For each of the parameter estimates, the regression analysis will also produce standard error.
The higher the R2 value, the better the ability of the regression model to predict the data.
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Kotabe & Helsen's Global Marketing Management, Third Edition, 2004

22. Copyright © John Wiley & Sons, Inc. 2004
Chapter 7
Kotabe & Helsen's Global Marketing Management, Third Edition, 2004