Global Market Segmentation and

Promotional Strategy

Presented By: Ishaan Sharma

BBA(IB) Sem V
Roll No. 23
 Overview
1. What is market segmentation?
2. Types of market segmentation
3. Promotional Strategy
4. Methods of promotion
5. Factors affecting promotional
Strategies
Market Segmentation
Gl obal m a rke t segm e nt at i on is t he process of dividi ng t he world m arket i nto disti nct subsets
of c ust om ers ba sed on vari ous factors such as geographic locat ion, dem ographics,
psychographi c s, be ha vi or, a nd cultural differences. This segm entation al lows busi nesses to
t a i l or t he i r pr oduct s, se rvi c es, and m arketing strategies to m eet the specific needs and
pre fe renc es of di ffe rent segm ent s, leading to m ore effecti ve t arget ing and hi gher custom er
sat i sfac t i on.
 Types of market segmentation

Generally, there are three approaches to segmentation in

international marketing:
1. macro-segmentation
2. micro-segmentation
3. hybrid approach
 Macro Segmentation

Macro segmentation refers to Geographical factors Demographic Factors

the broad categorization of
markets based on major
factors that affect consumer
behavior and purchasing
decisions. This type of Factors affecting
segmentation focuses on high-
Behavioral Factors Psychographic Factors
level variables that impact a
large number of consumers
and markets.

Cultural Factors
 Micro Segmentation
Macro segmentation Micro Geographical factors Demographic Factors
segmentation, also known as niche
segmentation or narrow
segmentation, involves dividing a
market into highly specific and
specialized segments based on very
detailed criteria. Unlike broader Factors affecting
segmentation approaches, micro- Behavioral Factors Psychographic Factors

segmentation focuses on
identifying the smallest viable
target segments within a market.

Cultural Factors
 Hybrid Segmentation
Hybrid segmentation is a marketing Data availaibilty Analytical Tools and
Capabilities
strategy that combines two or more
segmentation methods to create a more
refined and targeted approach. By
leveraging multiple segmentation
variables, companies can better
understand their customers and tailor Factors affecting
their products, services, and marketing Behavioral Factors Market Dynamics

strategies to meet specific needs and

preferences.

Customer Behaviour and

prefences
Promotional
Strategy
 Promotional Strategy
A promotional strategy is a plan that outlines how a business will promote
its products or services to its target audience. It involves determining the
objectives of the promotion, identifying the target audience, selecting the
right promotional tools and tactics, and measuring the effectiveness of the
promotion.
 Methods of Promotional Strategy
some of the methods of promotional strategy are listed below:
• Advertising
• Sales Promotion
• Public Relations
• Direct Marketing
• Personal Selling
• Digital Marketing
• In- store Promotions
• Event Marketing
• Content Marketing
• Paid Advertising
 Factors affecting Promotional Strategy
• Target Audience: Understanding the needs, preferences, and behavior of your target audience is crucial for
developing effective promotional strategies. Different demographic groups and market segments may respond
differently to various promotional tactics.
• Product or Service: The nature of your product or service can impact the promotional strategies you use. For
example, a high-end luxury product may require a more exclusive and targeted approach, while a mass-market
product may benefit from broader, more accessible promotions.
• Competitive Landscape: The level of competition in your industry can affect your promotional strategies. In a highly
competitive market, you may need to be more aggressive and innovative with your promotions to stand out from
competitors.
 Factors affecting Promotional Strategy
• Budget: The budget available for promotional activities will influence the types and scale of promotions you can
undertake. It's important to allocate your budget wisely to maximize the impact of your promotional efforts.
• Marketing Objectives: Your overall marketing objectives will guide the development of your promotional strategies.
Whether you are aiming to increase sales, build brand awareness, or launch a new product, your promotional tactics
should align with these objectives.
• Timing: The timing of your promotions can significantly impact their effectiveness. For example, launching a
holiday-themed promotion during the holiday season may yield better results than running the same promotion at
other times of the year.
• Channels: The choice of promotional channels, such as advertising, social media, email marketing, and events, can
impact the reach and effectiveness of your promotions. It's important to select the channels that are most likely to
reach your target audience.
• Regulatory Environment: Compliance with regulatory requirements, such as advertising standards and data
protection laws, can impact the design and execution of your promotional strategies.