Segmentation,

Targeting, and
Positioning

Global Marketing
Chapter 7

1
 Market Segmentation
• Represents an
effort to identify
and categorize
groups of
customers and
countries
according to
common
characteristics

7-2
©2011 Pearson Education, Inc. publishing as Prentice Hall
 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

7-3
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Positioning
• Positioning is required to differentiate
the product or brand in the minds of
the target market.

7-4
©2011 Pearson Education, Inc. publishing as Prentice Hall
 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.

7-5
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Contrasting Views of Global
Segmentation

• Conventional Wisdom • Unconventional Wisdom

– Assumes heterogeneity – Assumes emergence of
between countries segments that transcend
– Assumes homogeneity national boundaries
within a country – Recognizes existence of
– Focuses on macro level within-country
of cultural differences differences
– Relies on clustering of – Emphasizes micro-level
national markets differences
– Less emphasis on within- – Segments micro markets
country segments within and between
countries

7-6
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Global Market Segmentation

• Demographics
• Psychographics
• Behavioral
characteristics
• Benefits sought

Skiing became a sport in

Norway where it was
invented 4,000 years ago. 7-7
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Demographic Segmentation

• Income
• Population
• Age distribution
• Gender
• Education
• Occupation

What are the trends?

7-8
©2011 Pearson Education, Inc. publishing as Prentice Hall
 THAILAND-Demographic facts
Nationality: --Thai.
Population (2009 est.): 67.0 million.
Labor force (2009 est.): 38.4 million.
Annual population growth rate (2009 est.): 0.5%.
Ethnic groups: Thai 89%, other 11%.
Religions: Buddhist 93%-94%, Muslim 5%-6%, Christian 1%,
Hindu, Brahmin, other.
Languages: Thai (official language)
Education: Years compulsory--9.
Literacy--94.9% male, 90.5% female.
Life expectancy--70.51 years male, 75.27 years female. 7-9
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Thailand-Economy
Agriculture (12% of GDP): Products--rice, tapioca, rubber, corn,
sugarcane, coconuts, soybeans.
Industry Types--tourism, textiles, garments, agricultural processing,
cement, integrated circuits, jewelry, electronics, petrochemical etc.

Merchandise exports--$188.8 billion.

Major markets--ASEAN, EU, China, U.S., Japan, and Hong Kong.
Merchandise imports--$175.5 billion.
Major suppliers--Japan, ASEAN, China, the Middle East, EU, and

7-10
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Per Capita Income

7-11
©2011 Pearson Education, Inc. publishing as Prentice Hall
 10 Most Populous Countries

7-12
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Psychographic Segmentation
• Grouping people according to attitudes, values, and lifestyles
Porsche example from SRI International
– 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

7-13
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Behavior Segmentation

• Focus on whether people purchase a

product or not, how much, and how often
they use it
• User status
• Law of disproportionality/Pareto’s Law–
80% of a company’s revenues are
accounted for by 20% of the customers

7-16
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Benefit Segmentation

• Benefit segmentation focuses on the

value equation
– Value=Benefits/Price
• Based on understanding the problem a
product solves, the benefit it offers, or
the issue it addresses

7-17
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Target Marketing Strategies

18
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Standardized/Undifferentiated
Marketing
• Focus is on common (not
different) needs of
consumers.
• Product and marketing
program are geared to the
largest number of buyers.
• Uses mass advertising and
distribution and aims to
give the product a a
superior image .
19
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Differentiated/ Multi segment
Marketing
• Firm targets several
market segments and
designs separate offers
for each.
• The goal is to have
higher sales and a
stronger position with
each market segment.
• This approach increases
the costs of doing
business.
20
©2011 Pearson Education, Inc. publishing as Prentice Hall
 P& G Shampoo brands

7-21
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Concentrated Marketing
• The focus is acquiring a large share of one
or a few segments of niches.
• Generally, there are fewer competitors.
• The Internet is ideal for targeting small
niche markets.
• There is some risk in focusing on only one
market.

22
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Target Market Strategy Options

• Concentrated global • Differentiated global

marketing marketing
– Niche marketing – Multi-segment
– Single segment of targeting
global market – Two or more distinct
– Look for global depth markets
rather than national – Wider market
breadth coverage
– Ex.: Chanel, Body – Ex.: P&G markets
Shop Old Spice and Hugo
Boss for Men
7-23
©2011 Pearson Education, Inc. publishing as Prentice Hall
 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 7-24
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Positioning Map

6-25
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Product vs. Brand Positioning

6-26
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Positioning Strategies
• Global consumer culture
positioning
– Identifies the brand as a symbol of a
particular global culture or segment
– High-touch and high-tech products
• Foreign consumer culture
positioning
– Associates the brand’s users, use
occasions, or product origins with a
foreign country or culture

Beer is associated with this German’s culture; the

7-27
symbol on his shirt is not German!
©2011 Pearson Education, Inc. publishing as Prentice Hall
 7-28
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Positioning Strategies
• 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
– Ex.: Budweiser is identified
with small-town America 7-29
©2011 Pearson Education, Inc. publishing as Prentice Hall
 Looking Ahead to Chapter 8

• Importing, Exporting, and Sourcing

7-30
©2011 Pearson Education, Inc. publishing as Prentice Hall