INTERNATIONAL MARKET SEGMENTATION

2.  “The performance of business activities
designed to plan, price, promote and direct
the company’s flow of goods and services to
consumers or users in more than one nation
for a profit”

3.  Market segmentation is the process in marketing
of dividing a market into distinct subsets (segments)
that behave in the same way or have similar needs.
Because each segment is fairly homogeneous in their
needs and attitudes, they are likely to respond similarly
to a given marketing strategy.

4. 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.

5.  Marketing concepts are universal (goal is to make a profit)
 Difference is that in international marketing ALL
environments have to be taken into consideration when the
marketing plan is developed and executed
 Must consider the legal environment, governmental controls,
climate & weather, cultural beliefs, buyer behavior…
(uncontrollable elements)

6.  Whyinternational marketing is so
important:
 Companies can no longer ignore the effects of internationally
marketing
 Competition no longer exists just from domestic companies .
 In order to sustain profitability and growth margins of the past,
companies have to look for alternative methods of marketing
their products and services
 “In a study conducted on U.S. manufacturing companies of all
sizes, it was found that multinational companies outperformed
their strictly domestic U.S. counterparts by more than twice as
fast in sales and earned much greater returns on equity and
assets..”

7.  Prevailing trends that have the most impact on
international business in the future:
 1. Growth of the World Trade Organization and region free trade
areas (NAFTA, European Union..)
 2. Trend of developing countries (such as Asia, Latin America,
Eastern Europe) accepting the “free market system”
 3. Impact of the internet and other global media companies (CNN)
 4. Mandate for companies to properly manage resources

8. >Measurability >Actionability
size, purchasing power, and profiles of effective programs can be designed for
attracting and serving the segments.
segments can be measured.
>Differential response
segments are conceptually distinguishable
and respond differently to different marketing
mix elements and programs
>Substantiality
segments are large or profitable enough to serve.
>Stability over time
>Accessibility
segments can be effectively
reached and served

9. Benefits of IMS
Allows the company to
generalise their marketing
research conclusions.
Entry strategy and marketing
mix across a few segments
instead of every market.
Helping to allocate scarce
resources.
Determining the company’s
positioning strategy.

11. • Regional
• Global segmentation may
segmentation is • But if they want or
be used when the need to completely
used when there is a similarity in
group of consumers localise they may
needs/preferences choose unique
with common needs only extends across
that crosses national segments, which
the region or several take the preferences
borders. This kind countries. Firms
of segment is of a segment within
will often use this one country. This is
usually the youth when they want to
segment, the usually necessary
capitalise on the for products such as
affluent segment or financial savings of
related to internet news services or
global segmentation speciality foods
services but would like to
localise more
GLOBAL UNIQUE
REGIONAL

13.  International markets can therefore be segmented
in a two –step process( a hierarchy of
segment).first, the “macro” segment composed of
individual or groups of countries can be identified
based on national market characteristics. Then
within each macro- segment the market can be
further sub-divided based on consumer
characteristics.

14. IMS
MICRO MACRO

16. • To determine the method by the world market (ie, determine the subdivision
1 standards);
• The classification criteria of myopia, all with common feature of the country
2 designated as a group, constitute a sub-market;
• To understand the needs of enterprise resources to meet the conditions of
3 each What are the requirements;
• According to the characteristics of the enterprise to see if satisfied by the
4 Company or which sub-markets which the most appropriate and advantageous;
• From the theoretical analysis, to meet the needs of the target market,
measures to be taken;
5
• To this theory, the strategies and methods to be modified according to the
6 actual situation and adjust

17.  Micro-enterprises to enter a foreign market segments, due to the country
is vastly different customer needs, enterprises can not meet all the needs
of customers in the country, but can only be broken down into several
sub-market, to meet one or more sub-market demand, meaning that
international market segmentation is called micro-segments.
 Micro-segmentation is similar to the domestic market segments, namely,
when the company decided to enter an overseas market, it will find that
there are differences in the local market customer needs, should be further
subdivided into a number of markets to choose one or several sub-market
as the goal market.
 Micro-segmentation of the standard international market and domestic market
segments in the micro-micro-segmentation is the same, the standards are basically
the same subdivision.

18. (A) of the consumer market segmentation criteria
• geographic location
• economic factors
• political & legal factors
• cultural factors
• intermarket segmentation (segment consumers
with similar profile but different countries)

19.  (B) Industrial market segments:
 Segmented based on the characteristics that
- Location
- Company type
- Behavioral characteristics

20.  As of July 1, 2011, the company's operations are categorized into two "Global
Business Units" with each Global Business Unit divided into "Business Segments"
according to the company's 2011 Annual Report.
 Beauty segment
 Grooming segment
 Health Care segment
 Snacks & Pet Care segment
 Fabric Care & Home Care segment
 Baby Care & Family Home Care segment

22. One of the major problems confronting the
international marketing manager faced with the
breadth and diversity of international markets is how
to identify potential target segments, and what
information is to collect for this purpose. A systematic
two- step segmentation procedure /approach can be
better to depend for solving these issues.