7/31/2014
“Wearesayingyou'vegottounderstandandchoosethe
customersyouwanttoserve.Don'tjustgoaftereveryone.
Definethetargetmarketcarefullythroughsegmentation
andthenreallypositionyourselfasdifferentandas
superiortothattargetmarket.Don'tgointothattarget
marketifyou'renotsuperior.”
PhillipKotler
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
 TheNeedforSTPStrategyinGlobalMarkets
 GlobalMarketSegmentationStrategies
•
•
•
•
Country‐based(Macro)Segmentation
Consumer‐based(Micro)Segmentation
BtoBsegmentation
TheLongTail:Everycustomercanbeasegment
 Targeting
 CriteriaforTargeting
 SelectingaGlobalTargetStrategy




UndifferentiatedApproach
DifferentiatedApproach
ConcentratedApproach
CustomizedApproach
 Positioning
• Process
• Example
 Summary
9-2
 STPallowsmarketerstodeterminethe
valuetheirproductorservicecandeliverto
customers
• Segmentation
 Identificationofspecifictypesofcustomers
• Targeting
 Identifyingmethodstoreachcustomersegments
• Positioning
 Communicatingvalueinappealingwaystotargeted
segments
9-3
1
7/31/2014
 Toidentifyandengagetherightcustomer
segments,butalsotopreservethetrue
identityofthebrandwhileansweringthe
needtopositionitinverycustomized,
segment‐specificcommunications
9-4
 SegmentationisdefinedbytheAmerican
MarketingAssociationas“theprocessof
subdividingamarketintodistinctsubsetsof
customersthatbehaveinthesamewayor
havesimilarneeds.”
• Theprocessischallenging,however,
• Whendonewell,thepracticecangiveafirma
substantialcompetitiveadvantage
9-5
 Fivecriteriamustbepresentforagroupof
customerstobea‘segment.’Eachsegment
mustbe:
1. Measurable
2. Differentenoughtowarrantchangesinthe
marketingmix
3. Accessiblethroughmarketinganddistribution
channels
4. Largeenoughtobeprofitable
5. Stableenoughtoallowforpropertargetingand
measurableresponse
9-6
2
7/31/2014
 Country‐based,ormacro,segmentation
 Consumerbased,ormicro,segmentation
• Company‐basedsegmentationinthecaseof
businesstobusinessmarketscenarios
9-7
 Usesgeographic,demographicandsocioeconomic
variablessuchaslocation,GNPpercapita,
populationsizeorfamilysizetogroupcountries
intromarketsegments
• Enablesacompanytocentralizeitsoperationsandsave
onproduction,sales,logisticsandsupportfunctions
• Doesn’ttakeintoconsiderationconsumerdifferences
withineachcountryandamongthecountrymarketsthat
areclusteredtogether
• Failstoacknowledgetheexistenceofsegmentsthatgo
beyondthebordersofaparticulargeographicregion
9-8
 Consumersaregroupedbasedoncommon
characteristicssuchasculturalpreferences,
valuesandattitudes,orlifestylechoices
• Employspsychographicandbehavioristic
segmentationvariables
• Certainsegmentsidentifiedtohavethesame
characteristicsmaybepresentonaglobalscale,
whileothersmaybeparticulartoaspecificcountry
orregion
9-9
3
7/31/2014
InsertBox9‐1
9-10
ThebasictenetofVALSisthatpeople
expresstheirpersonalitiesthroughtheir
behaviors
 VALSspecificallydefinesconsumer
segmentsonthebasisofthosepersonality
traitsthataffectbehaviorinthe
marketplace.

• ArelatedmethodofpsychographyisGlobalScan,
whichmeasuresattitudes,consumervaluesand
buyingpatterns.
9-11
Figure9‐2
9-12
4
7/31/2014
 Severalmajordifferencesareapparent
betweentheconsumerandbusiness‐to‐
businesssegmentationprocesses
• TheB2Bmarketrarelyexceedsseveralhundred
companyclients,whileconsumermarketsnumber
literallymillionsofcustomers
• Businessvolumefaroutstripsindividualconsumer
purchasing
• ThedynamicsoftheB2Bpurchasingprocessarefar
morecomplex
9-13
 Industry
 Geography
 Decisionmakerdemographicsandlifestyle
 Surveyeddata
 Firmographicsandpaymentbehavior
9-14
 Moreofatoolforadvertisingandbranding
thaneffectivesegmentationthatguides
marketersinfindingmeaningfulgroupsof
consumerslikelytobuytheirproduct
 Marketerstodayarespendingmoreeffort
tryingtounderstandcustomers—theirself‐
image,aspirationsandtastes—whenthey
shouldbetryingtounderstandthe“jobs”that
customersneeddoneandbringtomarket
productsthathelpwiththosejobs
9-15
5
7/31/2014
 PromulgatedbyChrisAnderson
• Technologyisturningmassmarketsintomillionsof
niches
• Thetrendcreatesa‘longtail’graph
 Hitssalesrepresentthebulkier,steepertrendline
 Along,thinning‘tail’ofmanyunknownproductsthathad
nochanceofexposurepriortotheweb
• Intheonlineworldofunlimitedshelfspace,
productscansucceedbycateringtothesespecific
niches
9-16
Insert Table 9-2
 Thetrendcanbeoptimizedbyglobalmarketers
whocontinue marketingtheirmostpopular
productstostayprofitable,butbroadentheir
portfoliocost‐effectivelytoattractthelongtail
audiences
9-17
 Marketsize
 Growthrate
 Competitiveposition
 Marketaccessibility
 Customerfit
9-18
6
7/31/2014
 Alsocalledmassor
standardized
marketing
 Companyisbasingits
marketingonthe
commonneedsofits
customers,insteadof
onthedifferences
Evenincommoditizedmarkets,the
undifferentiatedstrategyis
beginningtofadeawayasglobal
competitionintensifies
 Globalbrandsshare
characteristics
• Samepositioning
worldwide
• Singleproductcategory
• Companynameisbrand
name
• Accesstoglobalvillage
• Socialresponsibility
9-19
 Aimstoadapttheproductandthe
marketingmixtoeachtargetmarket
segment
 Mostglobalbrandsuseaversionofthis
approachtostaycompetitiveandexpand
theirappealtomoremarketsegments
throughproductsandadvertisingdesigned
specificallyfortheirneedsandtastes
9-20
Figure9‐2
9-21
7
7/31/2014
 Concentrated(NicheTargeting)
• Companyfocusesintenselyononesegmentofthe
marketanddesignsitsmarketingeffortswiththat
segmentinmind
 Decreasedcompetitionanddominantshareare‘pros’
 But,lackof‘portfoliodiversification’meansgreaterfinancial
risk
 Customized(Micromarketing)
• Deepersegmentationofthetargetmarketandmore
nuancedandspecializedproductsandmarketing
campaignsaimedatveryspecificsub‐segmentsof
consumers
 Greatlyenhancedbyonlineresearchandcommunication
 Behavioraltargetinginvolvestrackingthesitesvisitedby
internetusersanddisplayingadsrelatedtotheirinterests
9-22
 Theconsumercomparessimilarbrandsand
productsandcreatesamentalmapofeach
relatedtohisorherindividualneedsand
wants
 Themarketer’sgoalistoinfluencethe
positionbrandshaveinthemindsof
consumersinrelationtocompetitorbrands
 Successfulpositioningresultsinstrong,
long‐termemotionaltiestothebrand
9-23

Throughglobalmarketsegmentation,thesimilaritiesanddifferencesof
potentialbuyingcustomerscanbeidentifiedandgrouped

Marketerscanusemacroormicroscalesegmentation



Totargettheappropriateconsumersegments,marketersmustevaluate
andcomparethemonthebasisofmarketsize,growthpotential,market
accessibility,competitivepositionandcompatibility
Selectingtherightmarkettargetingstrategy,marketersmustdecide
whethertouseanundifferentiated,differentiated,concentratedor
customizedapproach
Marketersstrivetoinfluencethepositiontheirbrandshaveinthe
mindsofconsumersinrelationtocompetitorbrands
9-24
8