Segmentation, Targeting, and

Positioning

Chapter 7

Global Marketing
 Market Segmentation

• Represents an effort to identify and

categorize groups of customers and
countries according to common
characteristics

Keegan and Gree 2

n, Chapter 7
 Targeting
• The process of evaluating segments and
focusing marketing efforts on a country,
region, or group of people that has
significant potential to respond

Keegan and Gree 3

n, Chapter 7
 Global Market Segmentation
• 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
– Pluralization of consumption
– Segment simultaneity

Keegan and Gree 4

n, Chapter 7
 Contrasting Views: 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 differences
cultural differences – Emphasizes micro-level
– Relies on clustering of differences
national markets – Segments micro markets
– Less emphasis on within- within and between
country segments countries

Keegan and Gree 5

n, Chapter 7
 Global Segmentation Bases
• Demographics
• Psychographics
• Behavioral characteristics
• Benefits sought
• Environments

Keegan and Gree 6

n, Chapter 7
 Demographics
• Income
In particular, notice
• Populations trends: are there
• Age distribution fewer married
• Gender couples, smaller
• Education family size, changing
roles of women,
• Occupation
higher incomes, etc?

Keegan and Gree 7

n, Chapter 7
 Psychographics
• Grouping people according to attitudes, value, and
lifestyles
– SRI International and VALS 2
• Porshe 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

Keegan and Gree 8

n, Chapter 7
 Global Psychographics
• BSB’s Global Scan
– TARGET SCAN: 95% of adult populations in
18 countries
• Strivers (26%): young people, driven to achieve
• Achievers (22%): successful, status-conscious
• Pressured (13%): mostly women, lots of pressure and
problems
• Adapters (18%): older, content
• Traditionals (16%): clings to past, heritage, and
values

Keegan and Gree 9

n, Chapter 7
 Global Psychographics (cont.)
• DMBB’s Euroconsumer Study
• (15-country study)

– Elite Consumers
• Successful Idealists
• Affluent Materialists
– Mainstream Consumers
• Comfortable Belongers
• Disaffected Survivors

Keegan and Gree 10

n, Chapter 7
 Global Psychographics(conc.)
• Y&R’s Cross-cultural Consumer
Characterizations (4 Cs)
• 20-country study
– Constrained
• Resigned Poor, Struggling Poor
– Middle Majority
• Mainstreamers, Aspirers, Succeeders
– Innovators
• Transitionals, Reformers

Keegan and Gree 11

n, Chapter 7
 Behavior
• Whether or not people buy or use a product
• How much they use it
• How often they use it
• User status

Keegan and Gree 12

n, Chapter 7
 Benefit
• 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

Keegan and Gree 13

n, Chapter 7
 Criteria for Targeting: 9 W’s
• Who buys our product?
• Who does not buy it?
• What need or function does it serve?
• 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?
• Why is it purchased?

Keegan and Gree 14

n, Chapter 7
 Criteria for Assessing
Global Opportunity
Current Size of the Segment

Compatibility Competition
with company’s
overall objectives
Feasibility of successfully
reaching designated
target
Anticipated Growth Potential

Keegan and Gree 15

n, Chapter 7
 Global Marketing
• Standardized global marketing
– Mass marketing on a global scale
– Undifferentiated target marketing
• Concentrated global marketing
– Niche marketing
– Single segment of global market
• Differentiated global marketing
– Multi-segment targeting
– Two or more distinct markets

Keegan and Gree 16

n, Chapter 7
 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
Keegan and Gree 17
n, Chapter 7
 Positioning Strategies
• Global consumer culture positioning
– Identifies the brand as a symbol of a particular
global culture or segment
• Foreign consumer culture positioning
– Associates the brand’s users, use occasions, or
product origins with a foreign country or
culture

Keegan and Gree 18

n, Chapter 7