1. FMA 601 Foreign Market Analysis
Module 3:
Segmentation, Targeting and Positioning

2. Global Market Segmentation
The process of dividing the world market into distinct subsets of customers that have similar needs (for example, country groups or individual interest groups).

3. Criteria for Global Market Segmentation
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behaviour segmentation
Benefit segmentation
Vertical vs. horizontal segmentation

4. Geographic Segmentation
Dividing the world into geographic subgroups
The advantage of geography is proximity
However, just because people are in close proximity does not mean they are similar

5. Demographic Segmentation
Based on measurable population characteristics
Age
Income
Gender
Education
Generally, national income is the most important variable

6. Psychographic Segmentation
Based on attitudes, values and lifestyle
Measured through extensive item batteries which cover activities, interests and opinions (AIO-studies)
Lifestyle surveys,
the Values and Life Styles (VALS)

7. Psychographic Profiles of Porsche’s American Customers
Category
Description
% of all owners
Top Guns
Driven and ambitious; care about power and control; expect to be noticed
27%
Old money; a car—even an expensive one—is just a car, not an extension of one’s personality
Elitists
24%
Ownership is what counts; a car is a trophy,
a reward for working hard; being noticed doesn’t matter
Proud Patrons
23%
Cosmopolitan jet setters and thrill seekers;
car heightens excitement
Bon Vivants
17%
Car represents a form of escape;
don’t care about impressing others;
may even feel guilty about owning car
Fantasists 9%
Source: ALEX III Taylor, „Porsche Slices up its Buyers“, Fortune, 16 January 1995, p. 24

8. Behavior and Benefit Segmentation
Behavior segmentation
Focus on whether and how much people buy or use a product
usage rates: heavy, medium, light, nonusers
user status: potential users, nonusers, ex-users, regulars, first timers, users of competitors’ products
Benefit segmentation
Focus on the numerator of the value equation – the B in V=B/P

9. Global Targeting
Targeting is the act of evaluating and comparing the identified groups and selecting one or more as the prospect with the highest potential

10. Criteria for Targeting
Current size of the segment and growth potential
Potential competition
Compatibility and feasibility

11. Foreign Market Analysis Market Research
Market research is any organized effort to gather information about target markets or customers.
It is a very important component of business strategy.[1]
Market research is a key factor to maintain competitiveness over competitors. Market research provides important information to identify and analyze the market need, market size and competition.

12. The Proactive Role of Marketing Research
A proactive management:
alters the marketing mix to fit newly emerging patterns in economic, social, and competitive environments
new opportunities
develops a long-run marketing strategy

13. Marketing Research Defined
The planning, collection, and analysis of data relevant to market decision making and communication of the results of this analysis to management.

14. Global Product Positioning
Positioning is the location of a product in the mind of the consumer
Positioning is partly controlled by the marketer (marketing mix) and partly not
Positioning is visualised by a “positioning map”
2 dimensions
or multidimensional (MDS)