1. Global Marketing Management A European Perspective
Global Segmentation,
Targeting and Positioning
Warren J. Keegan
Bodo B. Schlegelmilch

2. Overview Global Market Segmentation Global Targeting
criteria: geographic, demographic, psychographic, behaviour, and benefit segmentation
Global Targeting
Selecting a Global Target Market Strategy
Global Product Positioning
High-Tech or High-Touch Positioning
Summary

3. Learning Objectives
To understand the objectives and usefulness of global market segmentation
To know the approaches to global market segmentation using different segmentation criteria to define target groups
To learn different ways of positioning products in global markets

4. Global Market Segmentation
... is the process of dividing the world market
into distinct subsets of customers
that have similar needs
(eg country groups or individual interest groups).

5. Criteria for Global Market Segmentation
Geographic segmentation
geographic subsets
Demographic segmentation
eg age, gender, income, occupation
Psychographic segmentation
Behaviour segmentation
Benefit segmentation

6. Psychographic Segmentation
... is based on attitudes, values and lifestyle
... is measured through extensive item batteries which cover activities, interests and opinions (AIO-studies)
lifestyle surveys, eg by
the Research Institute of Social Change (RISC)
the Centre de Communication Avancé (CCA) and
the Values and Life Styles (VALS) by SRI International

7. Psychographic Profiles of Porsche’s American Customers
Description
Category
% 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. Backer Spielvogel & Bates’ Global Scan (BSB Global Scan )
... encompasses 18 countries, mostly in the Triad
The researchers studied
consumer attitudes and values,
media viewership/readership,
buying patterns,
product use.
5 global psychographic segments represent 95% of the adult populations in the countries surveyed.

9. The Target Groups of BSB’s Global Scan

10. D’arcy Massius Benton & Bowles’ Euroconsumer Study
... focuses on Europe
... identified four lifestyle groups:
The first two groups represent the elite,
the latter two mainstream European consumers.
Successful idealists
Affluent materialists
Comfortable belongers
Disaffected survivors

11. Europanel’s Eurostyles
Source: adapted from Josef Mazanec, “Exporting Eurostyles to the USA,” International Journal of Contemporary Hospitality Management, 5,4 (1993): p.4

12. Behaviour and Benefit Segmentation
Behaviour segmentation
Focus on whether and how much people buy or use a product;
eg usage rates: heavy , medium, and light users, and nonusers
eg user status: potential users, nonusers, ex-users, regulars, first timers, and users of competitors’ products
Benefit segmentation
Today, consumers basic needs are fulfilled. Therefore, consumers seek additional value from purchase decisions;
eg cars: in addition to movement buyers seek personal safety, image, superior engine power (speed) etc.

13. Global Targeting After markets have been segmented, targeting
aims at evaluating and comparing the indentified
segments in order to select one or more as
prospect(s) with the highest potential.

14. Criteria for Targeting
As in single-country targeting, the most important criteria are:
Current size of the segment and anticipated growth potential
Competitive intensity and potential competition
Compatibility with the company’s overall objectives and the feasibility of successfully reaching a designated target

15. Selecting a Global Target Market Strategy
standardised global marketing
i.e. mass marketing, the same marketing mix for a broad market of potential buyers; e.g. Revlon
concentrated global marketing
targeted at a single segment of the global market, e.g. Winterhalter (German dishwashers for hotels)
differentiated global marketing
2 or more different segments; e.g. VW (cars for various target groups: Porsche, Skoda, VW Golf etc.)

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

17. Positioning Map of American Fast-Food-Restaurants in the Mind of Consumers
Source: adapted from James H. Myers, Segmentation and Positioning for Strategic Marketing Decisions (American Marketing Association, Chicago, 1996), S. 187

18. High-Tech Positioning
Positioning stragtegy for products which are purchased on concrete product features; buyers typically already possess or wish to acquire considerable technical information
Suitable for
technical products, such as computers or chemicals,
special-interest products, such as sporting goods,
products that can be demonstrated easily.; eg polaroid cameras

19. High-Touch Positioning
The emphasis lies more on the product’s image; specialised information appears of minor relevance
Suitable for
products that solve a common problem; e.g., soft drinks
global village products, such as cosmetics or fashion
products that use universal themes; e.g. „heroism“ in Levis ads (jeans)

20. Summary
Before a company expands to foreign markets it must analyse the global environment.
Global market segmentation aims at identifying similarities and differences of potential customers.
Global targeting: The market segments are evaluated and compared and an appropriate targeting strategy is developed.
To reach the targeted market segment(s) a positioning strategy must be chosen; in a global context high-tech or high-touch positioning are promising.