Chapter 6

Global Market Segmentation

Process of identifying specific segment whether they be country groups or individual consumer groups of potential customers with homogeneous attributes who are likely to exhibit responses to a company's marketing mix

Market Segmentation

Represent an effort to identify and categorize groups of customers and countries according to common characteristics

Targeting

Process of evaluating the segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond

Demographic Segmentation

Based on measurable characteristics of populations such as income, population, age distribution, gender, education, and occupation

Global Teens

Young people between the ages of 12 and 19

Global Elite

Affluent consumers who are well traveled and have the money to spend on prestigious products with an image of exclusivity

Psychographic Segmentation

Grouping people in terms of their attitudes, values, and lifestyles

Behavior Segmentation

Focuses on whether or not people buy and use a product as well as how often and how much they use or consume

Usage Rates

Heavy, medium, light or non-user

80/20 Rule

Assessing usage rates. Suggests the eighty percent of a company's revenue or profits are accounted for by 20 percent of a firms products or customers

Benefit Segmentation

Focuses on the numerator of at the value equation: V=B/P. Understanding of the problem a product solves, the benefit it offers, or the issue it addresses, regardless of geography

Product Market

A market defined by a product category

Marketing Model Drivers

Key elements or factors required for a business to take root and grow in a particular country market environment

Enabling Conditions

Structural markets characteristics who's presence of absence can determine where the marketing model can succeed

Frist Mover Advantage

Conventional wisdom is that the first company to enter a market has the best chance of becoming the market leader

Standardized Global Marketing

Analogous to mass Marketing in a single country. It involves creating the same marketing mix for a broad mass market of potential buyers

Niche

A single segment of a global market

Differentiated Global Marketing

Entails targeting two or more distinct market segments with multiple marketing mix offerings

Global Consumer Culture Positioning

Defined as a strategy that identifies the brand as a symbol of a particular global culture or segment

Foreign Consumer Culture Positioning

Associates the brand's user, us occasions, or production origins with a foreign country or culture

Local Consumer Culture Positioning

Strategy that associates the brand with local cultural meanings, reflects the local culture's norms, portrays the brand as consumed by local people in the national culture or depicts the product as locally produced for local consumers