MKT300

International Marketing
-Segmentation, targeting, and positioning-
 -Learning objectives-

0 Explain the criteria that global marketers use to choose

specific markets to target.
0 Understand how global marketers use a product-market
grid to make targeting decisions.
0 Compare and contrast the three main target market
strategy options.
0 Describe the various positioning options available to
global marketers.
 -assessing market potential-

0 Be mindful of the pitfalls

0 Tendency to overstate the size and short-term
attractiveness of individual country markets
0 The company does not want to ‘miss out’ on a
strategic opportunity
0 Management’s network of contacts will emerge as
a primary criterion for targeting
 -assessing market potential-

0 Four basic criteria:

0 Current size of the segment and anticipated
growth potential
0 Potential competition
0 Compatibility with company’s overall objectives
0 The feasibility of successfully reaching the target
audience
 -assessing market potential-
0 Current size and growth 0 Show the trend…
potential 0 India the world’s fastest
0 Is the market segment growing cell phone
currently large enough to market.
present a company with the 0 Expanding at a rate of 50%
opportunity to make a profit? annually - 5 to 6 mill new
subscribers/ month.
0 If the answer is ‘no,’ does it
0 By mid-2008, there were
have significant growth
261 mill users; 750 mill by
potential to make it attractive
2018.
in terms of a company’s long-
0 Projected to be 920mill by
term strategy?
2025
 -assessing market potential-
0 Potential competition 0 Motor bike industry…
0 Is there currently strong 0 Honda enters the US market
competition in the market 0 Honda first created the
market for small-
segment? displacement dirt bikes.
0 Is the competition 0 Then moved upmarket with
vulnerable in terms of price bigger bikes targeted at
or quality? casual riders whose
psychographic profile was
quite different from that of
the hardcore Harley-
Davidson rider.
 -assessing market potential-
0 Feasibility and compatibility 0 in India…
0 Will adaptation be required? 0 It could take 3 to 5 years to
If so, is this economically build an effective
justifiable in terms of distribution system for
expected sales? many consumer products
(due to poor
0 Will import restrictions, high
infrastructure).
tariffs, or a strong home
0 This fact may serve as a
country currency drive up
deterrent to foreign firms
the price of the product in
0 Despite the large
the target market currency
population.
and effectively dampen
demand?
 -assessing market potential-
0 Another approach…
Important factors to grow –
distribution? Tech savvy
personnel?

Structural market
characteristics – e.g is
refrigeration easily
available in stores?

Management weighs in the

associated costs and
potential revenue (short &
long term).

Any first mover advantages?

- Good day -
 MKT300
International Marketing
-Segmentation, targeting, and positioning-
 -product-market profile-

0The big idea

0 Match products with segments (or country
markets)
0 Create a matrix with countries and products
0 Helps with analysis
-product-market profile-
 -product-market profile-
0 Questions for creating product-market matrix
0 Who buys our product?
0 Who does not buy it?
0 What need or function does it serve?
0 Is there a market need that is not being met by current
product/brand offerings?
0 What problem does our product solve?
0 What are customers buying to satisfy the need for which our
product is targeted?
0 What price are they paying?
0 When is the product purchased?
0 Where is it purchased
 -target market strategy
options-
0 Standardized Global Marketing or Undifferentiated
target marketing

0 Mass marketing on a global scale

0 Standardized marketing mix
0 Minimal product adaptation
0 Intensive distribution
0 Lower production costs
0 Lower communication costs
 -target market strategy
options-
0 Concentrated Global
Marketing
0 Niche marketing
0 Single segment of
global market
0 Look for global depth
rather than national
breadth
0 Ex.: Chanel, Estee
Lauder
-target market strategy
options-
0 Differentiated Global
Marketing
0 Multi-segment
targeting
0 Two or more distinct
segments
0 Wider market coverage
0 Ex.: P&G markets Old
Spice and Hugo Boss
for Men
 -positioning-

0 Locating a brand in consumers’ minds over and

against competitors in terms of attributes and benefits
that the brand does and does not offer
0 Attribute or Benefit… (Jeep)
0 Quality and Price… (Mercedes Benz)
0 Use or User… (Carling Black Label)
0 Competition… (Sunlight liquid soap)
 -positioning examples-

0 Attribute or Benefit 0 Quality and Price

0 Economy 0 Continuum from high
0 Reliability price/quality and high price to
0 Durability
good value

0 BMW: The Ultimate Driving 0 Stella Artois beer: Reassuring

Machine or Expensive (Experience the results of
Visa: It’s Everywhere You Want To 600 years of Belgian brewing)
Be 0 Grey Goose Vodka (France), Ketel
One (the Netherlands)
 -positioning examples-

0 Use or User 0 Competition

0 Associates the brand with a 0 Implicit or explicit reference
user or class of users to competition

0 Max Factor: The makeup that 0 Dove: Campaign for Real Beauty
makeup artists use 0 2% of women worldwide
think they are beautiful
0 New definition of beauty
 -positioning approaches-
0 Global consumer culture 0 Local consumer culture
positioning positioning
0 Identifies the brand as a 0 Identifies with local cultural
symbol of a particular global meanings
culture or segment 0 Consumed by local people
0 High-touch and high-tech 0 Locally produced for local
products, pop culture etc people
0 Foreign consumer culture 0 Used frequently for food,
positioning personal, and household
0 Associates the brand’s users, nondurables
use occasions, or product
origins with a foreign country
or culture
- Good day -