PPoint Chapter 07

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Global Marketing

Management

A European Perspective

Warren J. KeeganBodo B. Schlegelmilch

Global Segmentation,Targeting and Positioning



Keegan/Schlegelmilch

Global Marketing Management: A European Perspective Chapter 7 / 2

Overview

Global Market Segmentation

criteria: geographic, demographic, psychographic,

behaviour, and benefit segmentation

Global Targeting

Selecting a Global Target Market Strategy

Global Product Positioning

High-Tech or High-Touch Positioning

Summary





Learning Objectives

To understand the objectives and usefulness of

global market segmentation

To know the approaches to global market

segmentation using different segmentation criteria to

define target groups

To learn different ways of positioning products in

global markets






... is the process of dividing the world market

into distinct subsets of customers

that have similar needs(eg country groups or individual interest groups).





Criteria for


Geographic segmentation

geographic subsets

Demographic segmentation

eg age, gender, income, occupation

Psychographic segmentation

Behaviour segmentation

Benefit segmentation





Psychographic Segmentation

... is based on attitudes, values and lifestyle

... is measured through extensive item batteries

which cover activities, interests and opinions(AIO-studies)

lifestyle surveys, eg by

the Research Institute of Social Change (RISC)

the Centre de Communication Avancé (CCA) and

the Values and Life Styles (VALS) by SRI

International





Psychographic Profiles of

Porsche’s American Customers

Category % of all owners

Top Guns 27% Driven and ambitious; care about power and control;

expect to be noticed

Elitists 24%

Old money; a car — even an expensive one — is just a car,

not an extension of one’s personality

Proud Patrons 23%Ownership is what counts; a car is a trophy,

a reward for working hard; being noticed doesn’t matter

Bon Vivants 17% Cosmopolitan jet setters and thrill seekers;

car heightens excitement

Fantasists 9%Car represents a form of escape;

don’t care about impressing others;

may even feel guilty about owning car

Description

Source: ALEX III Taylor, „Porsche Slices up its Buyers“, Fortune, 16 January 1995, p. 24





Backer Spielvogel & Bates’

Global Scan (BSB Global Scan )

... encompasses 18 countries, mostly in the Triad

The researchers studied

consumer attitudes and values,media viewership/readership,

buying patterns,

product use.

5 global psychographic segments represent 95% of

the adult populations in the countries surveyed.





The Target Groups of

BSB’s Global Scan





D’arcy Massius Benton & Bowles’

Euroconsumer Study

... focuses on Europe

... identified four lifestyle groups:

The first two groups represent the elite,the latter two mainstream European consumers.

Successful idealists

Affluent materialists

Comfortable belongers

Disaffected survivors





Europanel’s Eurostyles

Source: adapted from Josef Mazanec, “Exporting Eurostyles to the USA,” International Journal of

Contemporary Hospitality Management, 5,4 (1993): p.4





Behaviour and Benefit

Segmentation

Behaviour segmentation

Focus on whether and how much people buy or use a product;

eg usage rates: heavy , medium, and light users, and nonusers

eg user status: potential users, nonusers, ex-users, regulars, firsttimers, and users of competitors’ products

Benefit segmentation

Today, consumers basic needs are fulfilled. Therefore, consumers

seek additional value from purchase decisions;eg cars: in addition to movement buyers seek personal safety,

image, superior engine power (speed) etc.





Global Targeting

After markets have been segmented, targeting

aims at evaluating and comparing the indentifiedsegments in order to select one or more as

prospect(s) with the highest potential.





Criteria for Targeting

As in single-country targeting, the most important

criteria are:

Current size of the segment and anticipated

growth potential

Competitive intensity and potential competition

Compatibility with the company’s overall

objectives and the feasibility of successfullyreaching a designated target





Selecting a

Global Target Market Strategy

standardised global marketing

i.e. mass marketing, the same marketing mix for a

broad market of potential buyers; e.g. Revlon

concentrated global marketingtargeted at a single segment of the global market, e.g.

Winterhalter (German dishwashers for hotels)

differentiated global marketing

2 or more different segments; e.g. VW (cars for various

target groups: Porsche, Skoda, VW Golf etc.)





Global Product Positioning

is the location of a product in the mind of the

consumer

is partly controlled by the marketer (marketing

mix) and partly not!

is visualised by a “positioning map”

2 dimensions

or multidimensional (MDS)





Positioning Map of American Fast-Food-

Restaurants in the Mind of Consumers

Source: adapted from James H.

Myers, Segmentation and

Positioning for Strategic Marketing

Decisions (American Marketing

Association, Chicago, 1996), S. 187





High-Tech Positioning

Positioning stragtegy for products which are

purchased on concrete product features; buyers

typically already possess or wish to acquire

considerable technical information

Suitable for

technical products, such as computers or chemicals,

special-interest products, such as sporting goods, products that can be demonstrated easily.; eg polaroid

cameras





High-Touch Positioning

The emphasis lies more on the product’s image;

specialised information appears of minor

relevance

Suitable for

products that solve a common problem; e.g., soft drinks

global village products, such as cosmetics or fashion

products that use universal themes; e.g. „heroism“ inLevis ads (jeans)





Summary

Before a company expands to foreign markets it must

analyse the global environment.

Global market segmentation aims at identifying

similarities and differences of potential customers.Global targeting: The market segments are evaluated

and compared and an appropriate targeting strategy is

developed.

To reach the targeted market segment(s) a positioningstrategy must be chosen; in a global context high-tech

or high-touch positioning are promising.

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