how companies segment international markets

how companies segment international markets插图

Geographic location
Companies can segment international markets using one or a combination of several variables. They can segment bygeographic location,grouping countries by regions such as Western EuropeWestern EuropeWestern Europe is the region comprising the western part of Europe. Though the term Western Europe is commonly used, there is no commonly agreed-upon definition of the countries that it encompasses. Significant historical events that have shaped the concept of Western Europe incl…en.wikipedia.org,the Pacific RimPacific RimWhen monstrous creatures, known as Kaiju, started rising from the sea, a war began that would take millions of lives and consume humanity’s resources for years on end. To combat the giant Kaiju, a special type of weapon was devised: massive robots, called Jaegers, which are contro…,the Middle East,or Africa. Geographic segmentation assumes that nations close to one another will have many common traits and behaviors.

What is segmentation in international markets?

Segmenting international markets based on geographic, economic, political, cultural, and other factors assumes that segments should consist of clusters of countries.

What are the strengths and weaknesses of international market segmentation?

The strengths of international market segmentations lies in better understanding of consumer needs for making international marketing decisions and their implementations. The weakness of segmentation is inability of a business firms to take proper care of all the segmentations.

How do marketers segment buyers?

If marketing professionals know what those benefits are, they can then tailor different toothpaste offerings to you (and other people like you). Another way in which businesses segment buyers is by their usage rates—that is, how often, if ever, they use certain products.

What markets are segmented based on special events?

Many markets are segmented based on the special events in people’s lives. Think about brides (and want-to-be brides) and all the products targeted at them, including Web sites and television shows such as Say Yes to the Dress, My Fair Wedding, Platinum Weddings, and Bridezillas.

Why do companies use a few variables?

A company may use few variables or may use large number of variables for grouping the world economies. The choice of appropriate method of segmentation of world economy depends on the reasons for segmenting the world market. It is usually related to the nature of the product and its relative advantages.

What is the rationale behind market segmentation?

The rationale behind the concept of market segmentation is based on the fact that the global market cannot be served on the basis of single set of policies. The international market segmentation has its own usefulness. The strengths of international market segmentations lies in better understanding of consumer needs for making international …

Why is the GNP per capita basis used?

The economic grouping of the world countries is useful for developing marketing strategy in the international business.

How are world countries divided?

The world countries can be divided on the basis of the GNP per individual to form different economic groups. The world countries may be segmented as high income industrialized countries, middle income countries and lower income countries with lesser GNP.

How are countries grouped?

The countries of the world can be grouped by using a variety of criteria. A business firm may group the world countries on the basis of its per capita GNP or geographical characteristics. The socio-cultural and political environment provide a sound criteria for grouping the countries.

What is market segmentation?

A market segment is a concept which consists of group of customers having similar set of wants. The basic purpose of market segmentation is to satisfy the needs of customers more precisely. It is not to subdivide the market just for the sake of the segmentation.

What is a niche group?

A niche may be defined as a narrowly defined group of the customers. It can be understood with an example of drinkers. For example the group of drinkers can be divided into two further subgroups (a) Heavy drinkers (b) Those who are willing and trying to stop drinking.

What is segmentation in consumer?

Forming segments of consumers who segmentation (also called cross-market segmentation), they form segments of consumers have similar needs and buying behavior wj1D ^ave simiiar needs and buying behaviors even though they are located in different even though they are located in different countries. For example, Lexus targets the world’s well-to-do—the "global elite" segment-countries. regardless of their country. Swedish furniture giant IKEA targets the aspiring global middle class—it sells good-quality furniture that ordinary people worldwide can afford. And Coca-Cola creates special programs to target teens, core consumers of its soft drinks the world over.16

How are world markets segmented?

World markets can also be segmented on the basis of economic factors. For example, countries might be grouped by population income levels or by their overall level of economic development. A country’s economic structure shapes its population’s product and service needs and, therefore, the marketing opportunities it offers. Countries can be segmented by political and legal factors such as the type and stability of government, receptivity to foreign firms, monetary regulations, and amount of bureaucracy. Cultural factors can

What is segmenting international markets?

Segmenting international markets based on geographic, economic, political, cultural, and other factors assumes that segments should consist of clusters of countries.

What does Coca Cola do for teens?

Coca-Cola wants to relate to the world’s teens. To accomplish that, the global soft drink marketer needed to figure out what the majority of teens finds appealing. The answer: music. So, throughout the world, Coca-Cola links itself with the local pop music scene. For example, in the United States, Coke is the official sponsor of American Idol, the country’s number-one television show and a teen magnet. In the Middle East, Coca-Cola commercials feature Arab pop stars, such as Nancy Ajram—Coca-Cola even sponsors her world tour. In Europe, Coke has created the Coca-Cola Music Network, which features signed and unsigned musicians online at CokeMusic.com, on stage, and in pod-casts. And in Uganda, Coca-Cola sponsored the search for a new MTV VJ. The recent winner, Carol Mugasha, became host of the weekly music chart show MTV Coca-Cola Chart Express.

How many countries does Coca Cola sell in?

Although some large companies, such as Coca-Cola or Sony, sell products in more than 200 countries, most international firms focus on a smaller set. Operating in many countries presents new challenges. Different countries, even those that are close together, can vary greatly in their economic, cultural, and political makeup.

What is Geographic Segmentation?

They can segment by geographic location, grouping countries by regions such as Western Europe, the Pacific Rim, the Middle East, or Africa. Geographic segmentation assumes that nations close to one another will have many common traits and behaviors. Although this is often the case, there are many exceptions.

Can marketers define intermarket segmentation?

However, as new communications technologies, such as satellite TV and the Internet, connect consumers around the world, marketers can define and reach segments of Intermarket segmentation like-minded consumers no matter where in the world they are. Using intermarket.

How does geocoding work?

When the coupons are redeemed, the store can find out where its customers are located—or not located. Geocoding is a process that takes data such as this and plots it on a map. Geocoding can help businesses see where prospective customers might be clustered and target them with various ad campaigns , including direct mail. One of the most popular geocoding software programs is PRIZM NE, which is produced by a company called Claritas. PRIZM NE uses zip codes and demographic information to classify the American population into segments. The idea behind PRIZM is that “you are where you live.” Combining both demographic and geographic information is referred to as geodemographics or neighborhood geography. The idea is that housing areas in different zip codes typically attract certain types of buyers with certain income levels.

Why is geographic segmentation important?

In addition to figuring out where to locate stores and advertise to customers in that area, geographic segmentation helps firms tailor their products. Chances are you won’t be able to find the same heavy winter coat you see at a Walmart in Montana at a Walmart in Florida because of the climate differences between the two places. Market researchers also look at migration patterns to evaluate opportunities. TexMex restaurants are more commonly found in the southwestern United States. However, northern states are now seeing more of them as more people of Hispanic descent move northward.

Why is income used as a segmentation variable?

Income is used as a segmentation variable because it indicates a group’s buying power and may partially reflect their education levels, occupation, and social classes. Higher education levels usually result in higher paying jobs and greater social status.

Why is segmentation important in marketing?

Segmentation is an important strategic tool in international marketing because the main difference between calling a firm international and global is based on the scope and bases of segmentation. An international firm has different marketing strategies for different segments of countries, while a global firm views the whole world as a market, …

What is behavioral segmentation? What are some examples?

Benefits segmentation—segmenting buyers by the benefits they want from products—is very common. Take toothpaste, for example. Which benefit is most important to you when you buy a toothpaste: The toothpaste’s price, ability to whiten your teeth, fight tooth decay, freshen your breath, or something else? Perhaps it’s a combination of two or more benefits. If marketing professionals know what those benefits are, they can then tailor different toothpaste offerings to you (and other people like you).

What is macro segmentation?

Macro-segmentation or country-based segmentation identifies clusters of countries that demand similar products. Macro-segmentation uses geographic, demographic and socioeconomic variables such as location, GNP per capita, population size or family size to group countries intro market segments, and then selects one or more segments to create marketing strategies for each of the selected segments. This strategy enables a company to centralize its operations and save on production, sales, logistics and support functions. However, macro-segmentation doesn’t take into consideration consumer differences within each country and among the country markets that are clustered together, and fails to acknowledge the existence of segments that go beyond the borders of a particular geographic region. Therefore, the company may be leaving money on the table, because the firm may be losing opportunities to solve the need of consumer segments across these country segments. Macro-segmentation leads to misleading national stereotyping, which results in neglect of within-country heterogeneity. Ignoring similarity in needs across country boundaries results in countries losing economies of scale benefits that can be achieved by serving the needs of a wider population across country (macro-segment) boundaries.

What are the biggest generation of college students?

Today’s college-age students (Generation Y) compose the largest generation. The baby boomer generation is the second largest, and over the course of the last thirty years or so, has been a very attractive market for sellers. Retro brands—old brands or products that companies “bring back” for a period of time—were aimed at baby boomers during the recent economic downturn. Pepsi Throwback and Mountain Dew Throwback, which are made with cane sugar—like they were “back in the good old days”—instead of corn syrup, are examples (Schlacter, 2009). Marketing professionals believe they appealed to baby boomers because they reminded them of better times—times when they didn’t have to worry about being laid off, about losing their homes, or about their retirement funds and pensions drying up.

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