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MK T3064 I n ter n ati o n al Marketi n g International Marketing MKT3064 MK T3064 I n ter n ati o n al Marketi n g Chapter 5: Segmentation, Targeting, and Positioning(STP) • Identify like groups of potential customers • Choose the groups to target • Use product -market grid • Segment markets • Position the brand in the mind of the customer Agenda Market Segmentation • Represents an effort to identify and categorize groups of customers and countries according to common characteristics Americans spent almost $55 billion on 83.3 million dogs in 2013. Who owns whom? Targeting • The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond • Focus on the segments that can be reached most effectively, efficiently, and profitably Positioning • Positioning is required to differentiate the product or brand in the minds of the target market. Global Market Segmentation • Defined as the process of identifying specific segments — whether they be country groups or individual consumer groups — of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix . Contrasting Views of Global Segmentation • Conventional Wisdom – Assumes heterogeneity between countries – Assumes homogeneity within a country – Focuses on macro level of cultural differences – Relies on clustering of national markets – Less emphasis on within - country segments • Unconventional Wisdom – Assumes emergence of segments that transcend national boundaries – Recognizes existence of within - country differences – Emphasizes micro -level differences – Segments micro markets within and between countries Global Market Segmentation Today, global (multi -national) companies, and the research and advertising agencies that serve them, use market segmentation to identify, define, understand, and respond to customer wants and needs on a worldwide, rather than strictly local basis . Global marketers must determine whether a standardized or adapted marketing mix is required to best serve those wants and needs . By performing market segmentation, marketers can generate the insights needed to devise the most effective approach . The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers . Skiing became a sport in Norway where it was invented 4,000 years ago • Demographics • Psychographics • Behavioral characteristics • Benefits sought Types of Market Segmentation Demographic Segmentation • Income • Population • Age distribution • Gender • Education • Occupation What are the trends? 7-10 Age Segmentation • Global Teens -12 and 19 yr. olds “A group of teenagers randomly chosen from different parts of the world who share many of the same tastes.” Young consumers may not yet have conformed to cultural norms.This combined with shared universal wants, needs, desires, and fantasies (for name brands, novelty, entertainment, trendy, and image -oriented products), make it possible to reach the global teen segment with a unified marketing program. This segment is attractive both in terms of its size (about 1.3 billion) and its multi -billion dollar purchasing power. The U.S. teen market represents roughly $200 billion in annual buying power; the United Kingdom’s 7.5 million teens spend more than $10 billion each year. Coca -Cola, Benetton, Swatch, and Sony are some of the companies pursuing the global teenage segment. • Global Elite –affluent consumers who are well traveled and have the money to spend on prestigious products with an image of exclusivity. The global elite is normally associated with older individuals who have accumulated wealth over the course of a long career, it also includes movie stars, musicians, elite athletes, and others who have achieved great financial success at a relatively young age. Gender Segmentation • In focusing on the needs and wants of one gender , do not miss opportunities to serve the other • Companies may offer product lines for both genders – Nike, Levi Strauss Psychographic Segmentation • Grouping people according to attitudes, values, and lifestyles – SRI International and VALS 2 • Porsche example – Top Guns (27%): Ambition, power, control – Elitists (24%): Old money, car is just a car – Proud Patrons (23%): Car is reward for hard work – Bon Vivants (17%): Car is for excitement, adventure – Fantasists (9%): Car is form of escape Behavior Segmentation • Focus on whether people purchase a product or not, how much, and how often they use it, user status Ethnic Segmentation • The population of many countries includes ethnic groups of significant size • Three main groups in the U.S.
include African -Americans, Asian - Americans, and Hispanic Americans • Hispanic Americans – 50 million Hispanic Americans (14% of total pop.) with $978 billion annual buying power – “$1 trillion Latina” 24 million Hispanic women: 42% single, 35% HOH, 54% working https://www.alizila.com/the -rise -of -male -beauty -in - china/?fbclid=IwAR1sIuPG84qsc0AuqjjLXcjM9cxtC4EZrM66 gJvdk0OZ1K9N5wcfhzPnfFM Type of segmentation? Quiz 1 Pls click and answer the questions : -) https://forms.office.com/Pages/ResponsePage.aspx?id=6wgQBUDbSUKezp3z6M P1lK_wGBdd4j5HjFi0nHkGJSFUMExPQlA5Q1dYN0NIS0pWUVdUOUNNMzlQMy 4u Assessing Market Potential • Three basic criteria:
– Current size of the segment and anticipated growth potential – Potential competition – Compatibility with company’s overall objectives and the feasibility of successfully reaching the target audience Framework for Selecting Target Markets David Arnold (2004) Drivers Enabling Conditions First -mover advantage Trade -off Create a Product -Market Profile Drivers and enabling conditions • Who buys our product? • Who does not buy it? • What need or function does it serve? • Is there a market need that is not being met by current product/brand offerings? • What problem does our product solve? • What are customers buying to satisfy the need for which our product is targeted? • What price are they paying? • When is the product purchased? • Where is it purchased? 1) To identify model drivers and enabling conditions: 9 Questions for Creating a Product -Market Profile 2) To access and evaluate market segments: Product -Market Decisions Drivers and enabling conditions 3) Decision to pursue & strategy options: Target Market Strategy Options • Standardized Global Marketing also known as Undifferentiated target marketing – Mass marketing on a global scale – Standardized marketing mix – Minimal product adaptation – Intensive distribution – Lower production costs – Lower communication costs Target Market Strategy Options Target Market Strategy Options • Concentrated Global Marketing – Niche marketing – Single segment of global market – Look for global depth rather than national breadth – Ex.: Chanel, Estee Lauder • Differentiated Global Marketing – Multi -segment targeting – Two or more distinct markets – Wider market coverage – Ex.: P&G markets Old Spice and Hugo Boss for Men Target Market Strategy Options A niche is simply a single segment of the global market .In cosmetics, the House of Lauder, Chanel, and other cosmetics marketers have used this approach successfully to target the upscale, prestige segment of the market .Germany’s W interhalter makes dishwashers for the restaurant industry only . Danone SA, the French foods company, targets consumers in developed countries with premium brands like Evian, Badoit mineral waters and Dannon and Activia yougurts . In the cosmetics industry, Unilever NV and Cosmair Inc .pursued differentiated global marketing strategies by targeting both ends of the perfume market .Unilever targets the luxury market with Calvin Klein and Elizabeth Taylor’s Passion ;W ind Song and Brut are its mass -market brands .Cosmair sells Tresnor and Giorgio Armani Gio to the upper end of the market and Gloria Vanderbilt to the lower end .Mass marketer Procter & Gamble, known for its Old Spice and Incognito brands, also embarked upon this strategy with its 1991 acquisition of Revlon’s EuroCos ,marketer of Hugo Boss for men and Laura Biagiotti’s Roma perfume . In the mid -1990 s, P&G launched a new prestige fragrance, Venezia, in the United States and several European countries .Conversely, in 1997 Estee Lauder acquired Sassaby Inc .,owner of the mass -market Jane brand .The move marked the first move by Lauder outside the prestige segment . Quiz 2 Pls click and answer the questions : -) https://forms.office.com/Pages/ResponsePage.aspx?id=6wgQBUDbSUKezp3z6 MP1lK_wGBdd4j5HjFi0nHkGJSFUNjJVNUhLN1pXVkVLOU9JWE5PNFIzU1I2T C4u Positioning • Locating a brand in consumers ’ minds over and against competitors in terms of attributes and benefits that the brand does and does not offer – Attribute or Benefit – Quality and Price – Use or User – Competition Positioning 1. Attribute or Benefit – Economy – Reliability – Durability • BMW: The Ultimate Driving Machine or Visa: It’s Everywhere You Want To Be • Foreign Consumer Culture Positioning: Focus on import benefits 2. Quality and Price – Continuum from high price/quality and high price to good value • Stella Artois beer: Reassuring Expensive • FCCP: Grey Goose (France), Ketel One (the Netherlands) Positioning 3. Use or User – Associates the brand with a user or class of users • Max Factor: The makeup that makeup artists use 4. Competition – Implicit or explicit reference to competition • Dove: Campaign for Real Beauty – 2% of women worldwide think they are beautiful – New definition of beauty Positioning Strategies 5a. Global consumer culture positioning – Identifies the brand as a symbol of a particular global culture or segment – High -touch and high -tech products 5c. Local consumer culture positioning – Identifies with local cultural meanings – Consumed by local people – Locally produced for local people – Used frequently for food, personal, and household nondurables 5b. Foreign consumer culture positioning Associates the brand’s users, use occasions, or product origins with a foreign country or culture Perceptual Map Şantaş, Fatih & Kar, Ahmet & Şantaş, Gülcan & Kurşun, Arzu. (2016). Perceptual Maps: An Empirical Research on Hospitals.
Competition has increased among all health care providers in the provision of health care services with the increasing role of the private sector . Perception management of health care consumers has gained importance .In order to be preferred by health care consumers, it is necessary for managers to determine how the perception of health care organizations . Perceptual mapping /Market mapping is a diagrammatic technique used by asset marketers tha t a tte mpts to visually display the perceptions of customers or poten tial customers . The positioning of a brand is influenced by customer perceptions rather than by those of businesses . Quiz 3 Pls click and answer the questions : -) https://forms.office.com/Pages/ResponsePage.aspx?id=6wgQBUDbSUKezp3z6 MP1lK_wGBdd4j5HjFi0nHkGJSFURDdVVlZVSlQ0ODFMNlRQVE5JVDdLTUlT WS4u