Global

Marketing
Global Edition
Warren J. Keegan Mark C. Green

Segmentation,
Targeting,
and
Positioning
Chapter 7
Copyright 2013, Pearson Education
 Introduction
• How to identify like
groups of potential
customers?
• How to chose the
groups to target?
• How to segment those
groups?
• How to position the
brand in the mind of the
customer?

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

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 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

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 Positioning
• Positioning is required to differentiate the
product or brand in the minds of the target
market.

Copyright 2013, Pearson Education

 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.

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 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 of within-country
cultural differences differences
– Relies on clustering of – Emphasizes micro-level
national markets differences
– Less emphasis on – Segments micro markets
within- within and between
country segments countries

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Global Market Segmentation
• Demographics
• Psychographics
• Behavioral characteristics
• Benefits sought

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 Demographic Segmentation
• Income
• Population
• Age distribution
• Gender
• Education
• Occupation
What are the
trends?
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 Psychographic Segmentation
Grouping people according to attitudes, values, and
lifestyles
Examples-
• Attitude/lifestyle towards buying (luxury/need based)
• Environmental consciousness
• Attitude towards Tech-savvy/Innovative products
• Fashion conscious/trendy lifestyles (smart/classic)
• Values on Loyalty to brand/country

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 Behavior Segmentation
• Focus on whether people purchase a product or
not, how much, and how often they use it

• User status/buying pattern/buying behaviour

• Law of disproportionality/Pareto’s Law–80% of a

company’s revenues are accounted for by 20%
of the customers

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 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

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 Framework for Selecting
Target Markets
• Demographic information is a starting point but
not the decision factor
• Product-Market must be considered
– Market defined by product category
• Marketing model drivers must be considered
– Factors required for a business to take root and
grow
• Are there any enabling conditions present?
– Conditions whose presence or absence will determine
success of the marketing model
Copyright 2013, Pearson Education
 Target Market
Strategy Options
1. Standardized global marketing
– Mass marketing on a global scale
– Undifferentiated target marketing
– Standardized marketing mix
– Minimal product adaptation
– Intensive distribution
– Lower production costs
– Lower communication costs
– Example: Apple, Pran, Netflix

Copyright 2013, Pearson Education

 Target Market Strategy Options
2. Concentrated global 3. 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, Gucci, – Ex.: P&G markets
Hermès (The Birkin) Pantene, head &
shoulder, Herbal
essence for Haircare
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– Samsung
 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

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 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
– Korean Skincare, Ramen
Beer is associated with this German’s culture.
 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.: Coke Studio

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Class Work
Amazon.com is entering to Bangladesh with Kindle Fire HD which is a
tablet computer. The Fire HD refers to Amazon Fire family tablets with HD
resolution. The ten generation Fire HD will enter Bangladesh with the
model 8" (2020 model), and 10.1" (2021 model). These tablets have all
the parental controls that will give you the peace of mind to keep their
little brains safe and happy. You can link it to your Prime account, set up
time limits, and download apps. It comes with this awesome foam case to
keep them safe from smashing. It even comes with a 2-year worry-free
guarantee—if it breaks within the two years, they replace it just like that.
It has up to 10 hours of battery life. It is the Tab with the facilities to read
books, do on-line classes, write down home works with inbuilt Microsoft.
Even for the physical classes’ students can carry it to do classes and solve
the problems. It resolves the pen and paper issue and help in building
greener economy. You are international marketing analyst for Fire HD.

Answer the following questions as a group based on this scenario.

Class Work
1. In Bangladesh, “Fire HD” should conduct the market segmentation
based on what and why?
2. What should be the target market strategy for “Fire HD” in
Bangladesh and why?
3. What should be the positioning strategy for “Fire HD” in Bangladesh
and why?