Developing the International
Marketing Plan
• Before you can develop international plan, you
must identify and understand the
target market
• Determine if there is or is not a
global market
Is there a global homemaker market?
• Global market segments present important
opportunities for standardized marketing
• Are there any global markets
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Global youth segment
Global elite
International Target Marketing
Defined as the process of identifying and focusing on those
segments
international market
that the company
can serve most effectively and designing products, services,
and marketing programs with these segments in mind.
International Segmentation
The process of identifying countries and/or
consumers that are similar with regard to key
traits, such as product-related needs and wants, that
would respond to a product and related marketing
mix.
MUST BE performed at country level AND at the
consumer level.
Effective International Segmentation
Requirements (contd.)
• Measurability:
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The ability to estimate the size of the market.
Important questions:
- Are population statistics and economic development
data reliable?
- Are consumers accessible for data collection?
Are they willing respondents?
Effective International Segmentation
Requirements (contd.)
• Substantiality:
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The extent to which the international market is large
enough to warrant investment.
Important questions:
- What is the segment’s growth potential?
- What is the projected per capita income in the
following ten years?
- Are population statistics and economic development
data reliable?
Effective International Segmentation
Requirements (contd.)
• Stability over time:
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The extent to which international consumer preferences
are stable over time.
Important questions:
- What is the likelihood that the segment will change
as a result of a rapidly changing environment?
- How often should we re-evaluate our market
segment?
Effective International Segmentation
Requirements (contd.)
• Accessibility:


The ability to communicate with the international target
market.
Important questions:
- Are population statistics and economic development
data reliable?
- Are consumers willing respondents for marketing
research studies?
- Is it possible to effectively communicate with the
target consumers?
Effective International Segmentation
Requirements (contd.)
• Actionability:


The extent to which the international target market is responsive
to the marketing strategies used.
Important question:
- Will consumers buy the company’s product?
• Differential response:
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
The extent to which international market segments respond
differently to marketing strategies.
Important questions:
- Can we distinguish segments from each other? Do
consumers have different preferences in this international
market?
Bases for Segmentation
• Demographic:
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Age
Occupation
Education
Income
Ethnicity
Race
Nationality
Life-cycle stage
Social class
Bases for Segmentation (contd.)
• Demographic (contd.)

Psychographic: lifestyles, values, attitudes, interests, opinions
-
-
Hofstede dimensions:
 Power-distance
 Masculinity-femininity
 Uncertainty avoidance
 Individualism-collectivism
Bases for Segmentation (contd.)
• Benefit Segmentation

Example: Cooking oil markets can be
segmented based on benefits sought—
olive oil is targeted to consumers who
seek health benefits.
• Geographic Segmentation
Bases for Segmentation (contd.)
• Usage and User status (contd.)

Usage

Nonusers
Occasional users
Medium users
Heavy users
User Status
- User of competitors’ products
- Ex-users
- Potential users
- First-time users
- Regular users
Describe the target market discussed in the article “Women in
Italy Like To Clean The Quick and Easy,” Deborah Ball, WSJ, April 25,
2006, p. 1.
Demographic
Geographic
Psychographic
Benefit
User Status
What marketing decision(s) did P&G make
regarding its Swiffer product line?
Were they effective?
Were they standardized or adapted?
• http://www.swiffer.net/index_flash.shtml
What marketing decision(s) did Bosch,
Whirlpool, Electrolux AB and Reckitt
make regarding their dish washing
machine product line?
Were they effective?
Were they standardized or adapted?
What marketing decision(s) did Unilever
make regarding its Cif product line?
Were they effective?
Were they standardized or adapted?
• http://www.unilever.com/ourbrands/homecare/default.as
p
The arrival of Cif in 1969, first launched in France and later rolled out in 45 countries, heralded the
end of scouring powders. Initially, the brand focused on cream cleansers for the kitchen and
bathroom, underpinned by its famous 'Skater' ads, which highlighted how scouring powders can
'scratch like skates on ice'
What marketing decision(s) did Bosch,
Whirlpool, Electrolux AB and Reckitt make
regarding their dish washing machine product
line?
Were they effective?
Were they standardized or adapted?
http://www.bosch.com/content/language2/html/index.htm
Were P&G’s Target Market Decisions
• Differentiated?
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Identify or create market segments desiring different
product benefits and target each segment with a different
brand and different marketing strategies
• Concentrated?
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Select only one market segment and target it with a single
brand.
Example: Mont Blanc pens
• Undifferentiated?
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Aim the product at the market with a single strategy
regardless of the number of market segments.
Example: powder milk, beans
How was Swiffer duster positioned in
Italy?
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Attribute/Benefit
Price/Quality
Uses or Application
Product User
Product Class
Competition
International Target Marketing
Is Used by Companies to:
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Identify consumer segments with similar traits.
Select segments company can serve efficiently.
Develop products tailored to each segment.
Offer products to the target market, communicating through
the marketing mix, product traits and benefits that
differentiate it in the consumer’s mind.