International consumers: segmentation
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 buying behaviour’ ( Hassan
and Katsanis 1992)
Part of a key marketing analysis process
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Segmentation
Targeting
Positioning
Segmentation methods/variables
(Keegan and Schlegelmilch 2001)
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Demographic
Psychographic
Behavioural
Benefits sought
Geographic
Cultural
Usually linked into a profile
Demographic
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Age, gender, population size, income,
education, lifecycle stage
Beware! Not all statistics are presented
in the same way.
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E.g. definitions of socio/economic groups
differ
Demographic segmentation
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Age is commonly used to identify global
segments
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E.g. global teenagers 12 to 19 linked to:
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Fashion
Lifestyle
Music
Brand preferences
Psychographic segmentation
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Based on :
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Attitudes and values
Lifestyle ( behaviour determined by
attitudes and values)
Data collected on activities, interests
and opinions (AIO studies)
E.g. YUPPI
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Young
Upwardly-mobile
Person
E.g. DINKY
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Double income
No kids
SINBAD
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Single
No blokes and
Desperate
Global Scan*:AIO study (18 countries in
Triad regions)
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Strivers (26%): young, ambitious, materialistic,
hedonistic
Achievers (22%): older, affluent, successful,
status conscious, quality focused
Pressured (13%): women, family/life/financial
problems
Adapters (18%): older, content, value-centred,
open about change
Traditionals (16%): ’rooted to the past’, cling to
country’s heritage and culture
*Backer, Spielvogel and Bates
Behavioural segmentation
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Who buys it?
How often?
What for?
Who for?
Who doesn’t buy it?
Who no longer buys it?
Benefit segmentation
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What added value do I get?
 E.g. Volvo offers safety
Rolls Royce offers status
Products are bundle of benefits not physical
objects
Multiple-attribute segmentation
E.g. A watch
Segmentation variable
Style conscious
Fun oriented
Benefit sought
Symbol of status
Time keeping/Games
Gender
Male
Male and female
Age
25-40
14-18
Occupation
Professionals
School students
Income
£30k+
Parental
Usage rate
Daily
Daily
Lifestyle
Attitudes and values
Fast moving,
Leisure: Sports, cinema
Materialistic, international
School activities
Video games, music
Local culture orientation
Location
Global
Multi-domestic
Targeting
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2 steps:
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Assessing the opportunity in each segment
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Selecting the target segment(s)
Assessing the opportunity – the criteria
1.
Market: size and growth:
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2.
The competition:
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3.
In one country (China)
Across the globe (the MTV generation)
How strong? (Coke v Pepsi –100% share in Russia)
Are there gaps?
What are their weaknesses? (Japanese 4-year PLC)
Compatibility and feasibility
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Resources?
Organisational structure?
Competitive advantage?
Positioning
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Defining a product/service/organisation in
terms of its similarity/dissimilarity to
competitors
Aims to establish a unique positioning which
meets needs of defined market segments (Ries
and Trout 1981)
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‘Positioning…is not what you do to a
product…(it) is what you do to the mind of
the prospect’ (Ries and Trout)
The positioning
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‘Positioning strategy distinguishes a
company’s service offers from those of
its competitors’ (Palmer)
‘Positioning puts a firm in a subsegment of its chosen market’ (Palmer)
BMW’s European positioning 1992