International Marketing

Segmentation, Targeting, and

Positioning
Dana-Nicoleta Lascu
Chapter 7

Copyright Atomic Dog Publishing, 2002

 Chapter Objectives
• Identify the rationale for adopting a target marketing strategy in
international markets
• Identify the requirements necessary for effective international
market segmentation
• Introduce the concept of country attractiveness analysis and offer
a blueprint for conducting the analysis
• Identify the bases for consumer segmentation and offer company
application examples
• Describe the three targeting strategies used by companies
worldwide
• Describe the six positioning strategies that international
companies can use to position their brands in the minds of target
consumers

Copyright Atomic Dog Publishing, 2002

 International Target Marketing
• Identify consumer segments with similar traits
• Select segments company can serve efficiently
• Develop products tailored to each segment
• Offer products to the target market:
 Communicate traits that differentiate the product

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 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
well to a product and related marketing mix.

MUST BE performed at country level AND at

consumer level.

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 Requirements for Effective
International Segmentation
• Measurability
• Substantiality
• Stability over time
• Accessibility
• Actionability
• Differential response

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 International Macro-Segmentation
• Market potential – indicators:
 Gross domestic product (GDP) per capita
 Industrial and agricultural sector statistics
 Market size and potential
 Consumer buying power
 Investment figures (FDI, other trade statistics)

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 International Macro-Segmentation,
continued
• Political, legal and financial environment
of country
 Ethnic conflict
 History of war engagement
 Antiforeigner sentiment
 Recent nationalization activities
 Legal ambiguity
 Trade barriers
 Exchange rate controls

Copyright Atomic Dog Publishing, 2002

 International Macro-Segmentation,
continued
• Marketing support infrastructure
 Availability and reliability of distribution and logistics providers
 Availability of competent partners for strategic alliances
 Quality of telecommunication and transportation
infrastructure
 Availability of other service providers:
- Marketing research firms
- Financial firms
- Management consulting firms…

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 International Macro-Segmentation,
continued
• Strength of brand – brand franchise
• Degree of market fit with company policies,
goals, and resources

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 Micro-Segmentation
• Basis for Segmentation
 Demographic
- Age - Life-cycle stage
- Occupation - Social class
- Education - Urbanization
- Income
- Ethnicity
- Race
- Nationality

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 Micro-Segmentation, continued
• Basis for Segmentation
 Psychographic: lifestyles, values, attitudes, interests,
opinions
- Hofstede dimensions:
• Power-distance
• Masculinity-femininity
• Uncertainty avoidance
• Individualism-collectivism
- Global segments:
• Global teenagers
• Global elite

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 Micro-Segmentation, continued
• Basis for Segmentation
 Benefit Segmentation
 Geographic

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 Micro-Segmentation, continued
• Basis for Segmentation
 Usage  User Status
- Nonusers - User of competitors’ products
- Occasional users - Ex-users
- Medium users - Potential users
- Heavy users - First-time users
- Regular users

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 Country Screening and Selection
• Assign importance score to each country
screening criteria
• Evaluate country performance on each of the
screening criteria
• Calculate country attractiveness score

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 Target Market Decisions
• Differentiated
 Identify or create market segments desiring different
product benefits and target each segment with a
different brand and different marketing strategies
 Example: Procter & Gamble

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 Target Market Decisions, continued
• Concentrated
 Select only one market segment and target it with a
single brand
 Example: Mont Blanc pens

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 Target Market Decisions, continued
• Undifferentiated
 Aim the product at the market with a single strategy
regardless of the number of market segments
 Example: powder milk, beans

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 Positioning the Brand
1) Identify competitors
2) Determine how they are perceived by consumers
3) Determine positioning in consumer’s minds
4) Analyze customers
5) Select positioning
6) Monitor position

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 Positioning the Brand, continued
• Attribute/Benefit
• Price/Quality
• Uses or Application
• Product User
• Product Class
• Competition

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 Chapter Summary
• Rationales and requirements for adopting target
marketing strategies in international markets
• Country attractiveness
• Bases for consumer segmentation and company
application examples
• The international targeting strategies
• The positioning strategies

Copyright Atomic Dog Publishing, 2002