Presentation discussing if teens in the USA emulate teens in China.

1. TEENAGE SEGMENTATION

2. OVERVIEW
 What is Segmentation?
 Standardization VS. Adaptation: Target Market Strategy
Options
 Standardization Adaptation
 Defining The Teenage Years
 Global Teen Segments
 Standardization VS. Adaptation: In the Teen world
 USA & Brazilian Teens
 Chinese, Thai and Indian Teens
 “Do Teenagers in Beijing Really Tend to Emulate New
York Teens?”
 USA and Asian Teenagers Using Hofstede’s Cultural
Dimensions
 Any Questions?
 Reference

3. WHAT IS SEGMENTATION?

4. WHAT IS SEGMENTATION?
 Market Segmentation has been defined as the ability to
divide a market into distinct groups of buyers, who might
require separate products or marketing mixes.
 Global Market Segmentation is the process of identifying
specific segments, whether by country or individual consumer
groups, of potential customers with homogenous attributes,
who are likely to share similar attributes and responses to a
company’s marketing mix.
 Target Marketing calls for three major steps, having market
segmentation as step, one and then tackling two other
essential steps:
 Market targeting is the evaluation of a segment’s attractiveness, and
selecting one or more of the markets segment to enter.
 Market positioning is the process when the firm seeks to formulate a
competitive position for a product or a detailed marketing mix.
(Keegan & Green, 2005) (Hooley, Piercy & Nicoulaud, 2008) (Kumar & Nagpal, 2001) (McDonald & Dunbar, 2004)

5. WHAT IS SEGMENTATION? CONT.
Basis for Market Segmentation
Geographic • Is linked to a specific country, region or
Segmentation state.
Demographic • Is based upon measurable characteristics,
Segmentation such as; income, population and age...etc.
Psychographic • Is grouping people in terms of values,
Segmentation attitudes and lifestyle.
Behavior •Is measured upon a scale of whether people
buy or consume this product, and their
Segmentation behavioral attitudes towards the product.
Benefit • Deals with the benefits sought by
Segmentation consumers.
Ethnic • Is the consideration of all major ethnic
Segmentation groups when conducting a market mix.
(Michman, Mazze & Greco, 2003) (Keegan & Green, 2005) (McDonald & Dunbar, 2004)

6. STANDARDIZATION VS. ADAPTATION
TARGET MARKET STRATEGY OPTIONS
Standardization Adaptation
Creating the same marketing mix for a Tailoring the marketing mix to suit the
broad range of potential buyers. specific needs and wants demanded by
customers.
Known as undifferentiated target Having to deal with each variable as an
marketing. independent one.
Based on the premise that a mass Conducting R&D strategies to target
market exists around the world. precise needs.
Standardised elements in the The most influential variables are
marketing mix. country, culture, age, religion and
lifestyle.
Products available in maximum Up-to-standards product line with a
numbers with low production costs. higher production cost.
Globalization Global localization
 Developing standardised products  Mixing standardization and
marketed worldwide with a customization in a way that minimizes
standardized marketing mix costs while maximizing satisfaction
 Essence of mass marketing  Essence of segmentation
 Think globally, act locally
(Theodosiou & Leonidou, 2003) (McDonald & Dunbar, 2004) (Kumar & Nagpal, 2001) (Levitt, 1983)

7. STANDARDIZATION ADAPTATION

8. DEFINING THE TEENAGE YEARS...

9. DEFINING THE TEENAGE YEARS
 Who? Individuals from 12-19 years of age are teenagers.
 Independent of parents vs. belonging to peers.
 Independent of parents in order to identify their self image
 Importance to peers
 Belonging to a group, sharing interests, importance to social
activity and opposite/same sex.
 Social acceptance through appearance and material things.
 Trend followers/seters.
 Having shared universal wants, needs, desires and fantasies.
 Influenced by brand names, novelty, entertainment, and
trendy products.
 Generally, eastern cultures are considered to be mimicking the
more developed western countries.
 Teens consider shopping as an experience.
 Teenagers have increased influence in household purchases.
 Reason: more responsibilities are given to them
(Michman, Mazze & Greco, 2003) (Solomon Et al, 2006) (Quart, 2003) (Szalai & Uhl, 2009)

10. DEFINING THE TEENAGE YEARS CONT.
Teens Shared Interests & Characteristics
 Teens communicate via phone with their
friends.
 Teens listen to music.
 Teens socialize with their friends, preferably
away from adults' prying eyes.
 Teens go to movies as a social experience.
 Teens tend to have limited access to money.
(Michman, Mazze, & Greco, 2003) (Magazine Publishers of America, 2004)

11. GLOBAL TEEN SEGMENTS

12. GLOBAL TEEN SEGMENTS
Does it Exist ?
 The Global Teen Segment is a generalization of the
stereotype of teens who share similar interests in fashion,
music and lifestyles.
 Rebelling against cultural norms, and trying to emulate other
cultures to reach self-satisfaction and an increase in self-
confidence.
 Global teenage girls spend most of their money on apparel,
cosmetics, jewelry and fragrances.
 Global teenage boys spend most of their money on movies,
dating, entertainment, clothing and cars.
(Michman, Mazze & Greco, 2003) (Yusof, Et al. 2002)

13. GLOBAL TEEN SEGMENTS CONT.
 It is agreed that the desire to be beautiful/handsome, healthy
and free of pain is a universal aspect.
 The similar characteristics being held by global teenagers
made this segment active and selected by a considerable
number of global firms.
 Diesel Jeans, Coca-Cola, Swatch, Sony, Benetton and other
companies are pursing the global teenage segment.
 The global telecommunications revolution is a critical driving
force behind the emergence of this segment.
 China, India and Brazil are emerging markets having 50%
plus of the population under 25, this placed these countries on
the A-list for almost all global firms.
(Schaefer, Et al. 2004) (Rushkoff, 2001) (Perrot, Et al. 2005) (Hollensen, 2007) (Cohen, 2009)

14. GLOBAL TEEN SEGMENTS CONT.
Things That are Important to a Teenagers Life
Relationship Potential
with family accomplishments
Having as much
fun as possible
Relationship
with friends
Making the
world a better
place
Being accepted
as an individual
Upholding time-
honored customs,
Never being traditions and values
bored
(Michman, Mazze & Greco, 2003)

15. GLOBAL TEEN SEGMENTS CONT.
Teenagers are Divided into Four Attitudinal Market Segments
Socially Driven • Interests in clothing
Segment • Brand conscious
Diversely • Interests in cultural products
Motivated
• Books music, magazines etc.
Market Segment
Socially • Interests in electronic products
Introverted
• Collecting things
Market Segment
Sports-Oriented • Interests in sports related activities
Market Segment • Practise sports
(Michman, Mazze & Greco, 2003)

16. STANDARDIZATION VS. ADAPTATION
IN THE TEEN WORLD
 It is true that teens all over the world share certain
interests (beautiful, healthy, fashionable and COOL).
 Teen’s tastes do differ from one country to another
(Culture, preferences, behaviors and way of thinking).
 These aspects are enough to drive any Global company to
seek for Adaptation when targeting diversified teenagers.
 Standardization was thought to be the key for reaching the
teen world, but not anymore.
 Everything is being adapted nowadays to suit various
tastes (Clothes, PC’s, accessories, mobiles, food and even
advertising):
 Coca-cola has launched a new TV campaign, "Look Up", to
focus on Thai teenagers that focused on inspiring youth to
actively "go for it”
 “Look Up" commercials emphasize an innovative idea related
to the lifestyle of teenagers, and also encourages them to
believe in themselves and their ability to overcome difficulties
and obstacles when following their dreams.
(Prasad, 2005) (Theodosiou & Leonidou, 2003) (Kumar & Nagpal, 2001)

17. USA TEENAGERS
 The USA teen population will grow to 33.5
million in 2010.
 Teen spending will grow 3.5% annually to US
$91.1 billion in 2011.
 They spend their money primarily on clothing,
video games, magazines, food, soft drinks and
snacks.
 They are more affluent, more educationally-
oriented, and more ethnically diverse.
 They are realistic and optimistic and exhibit a
strong need for individuality in their self-
expression.
 They have access to rapidly-evolving, bleeding-
edge technologies, and the Internet, PC’s, Mp3
players and Online Video’s are the most popular
sources of entertainment.
(Magazine Publishers of America, 2004) (Emarketer, 2007)

18. BRAZILIAN TEENAGERS
 In 2009, Brazil’s 12-19 yr old population is
31 million, with spending power of US$43
billion.
 50% of the population is under 25, and
makes up the dominant portion of the
population.
 They consistently display national pride and
can be ethnocentric in that they tend to
choose their own country as the world’s
preeminent power.
 They want a fulfilling job and career and a
happy family.
 They’re individualists and are not scared of
thinking or acting differently.
 They watch TV, listen to CDs and go out a
lot with their friends.
 They consume large amounts of hamburgers
and pizza.
(Manson, 2005) (Emarketer, 2007)

19. CHINESE TEENAGERS
 Population 1.3 billion – largest consumer
segment in the world.
 Teen population 200 million.
 One child policy – Parents spend 66% of
combined income on child.
 Estimated annual teen spend; US $36 billion,
from sources such as; pocket money, parental
expenditure, food, schooling and clothing.
 64% of teens feel it is important to be up to date
with fashion trends, with 19% of teens desiring
named brands.
 88% of Chinese teens trust local brands, while
64% trust foreign brands.
 Teenagers spend a significant amount of time
on activities other than TV such as; reading
books, newspapers and magazines.
 In contrast to their fashion tastes, they tend to
look to Japan rather than the West for their
foreign pop idols.
 Teens in China make up an important market
for consumer goods companies.
(St-Maurice & Wu, 2006) (Parker, Et al. 2004)

20. THAI & INDIAN TEENAGERS
 Thailand populace approx. 64
million.
 10.5 million adolescents and 11.5
million youths.  Indian population is 1.1
 Thai teens are excited by the billion.
local pop scene, as well as a  Fast growing teen population
mixture of Japanese and representing 47% of the total
Western “idols”. population , with US $6.7
 Thai teen market can be billion annual expenditure.
segmented into 4 major groups:  Indian teens are among the
Liberals (28%), Individualists happiest in the world.
(27%), Follower/Mainstream
(25%), and Image  India's teens have a vast
Seekers (20%). impact on: economy, company
products, the media, and
culture.
 Primary interest is politics.
 Influence from the west is
gradual. However, many of the
traditional values are still
(Anon, 2002) (Kripalani, 1999) (Lindgren, 2007) kept.

21. “DO TEENAGERS IN BEIJING REALLY
TEND TO EMULATE NEW YORK TEENS?”

22. “DO TEENAGERS IN BEIJING REALLY TO
EMULATE NEW YORK TEENS?”
Three Distinct Youth Culture Periods in Beijing Since 1970:
1970s and 1980s:
 Planned economy, little disposable income
 Conventional, collectivistic styles, e.g. blue cotton uniform
 End of 1980s, Influenced by Hong Kong and Taiwanese
culture
1990s:
 Market economy, significant rise in disposable income
 Individualistic, fashionable styles
 Japanese, Korean and Western influences
21st Century:
 Globalised economy with WTO accession
 Ambitious, consumerist, rebellious, spoiled (due to One
Child Policy)
 “Fusion trends”, e.g. Hip-Hop and Beijing Opera, Chinese
designers tweak Western with Chinese design elements
(www.articles.moneycentral.msn.com) (www.china.org.cn)

23. “DO TEENAGERS IN BEIJING REALLY TO
EMULATE NEW YORK TEENS?” CONT.
 On first impression, Chinese teens do emulate USA teens, but
with more consumer analysis, it can be distinguished that the
marketing mix between modernism and traditionalism, with
regard to consumer trends, differs between the two countries.
 In the USA, teenagers are more individualistic, and they want
to stand out and be more admired by their peers. In China,
teens want to be accepted in their group.
 In China, teenagers spend a bigger share of their free time on
reading, and they have a tendency to spend more time in
internet cafes than teens elsewhere. However, in the USA
many teens drive their own car, and some are employed part-
time or earn money by doing house-related activities. They are
more independent.
 Chinese teens have become less attached to the American
culture, and are now creating their own mix of modern tastes
and traditional value, with behaviors very different from that
of their western counterparts.
(Rushkoff, 2001) (Madden, 1999) (Kaufman-Scarborough, 2000) (Parker Et al. 2004) (Rose, 1999)
(Schaefer Et al. 2004) (St-Maurice, & Wu, 2006) (Wee, 1999) (Yusof, Et al, 2002)

24. USA AND ASIAN TEENAGERS USING
HOFSTEDE’S CULTURAL DIMENSIONS
Hofstede ‘s USA Asian
Cultural Teenagers Teenagers
Dimensions
Low High
Power Distance More tricky to influence and Inclined by tradition.
control.
Low High
Uncertainty Avoidance Want to be, and seek to be Less rebellious. Likely to stay at
independent from home. home until married.
Individualistic Collectivistic
Individualism Since Childhood learn to Raised to have group mentality.
think of themselves first.
(Hollensen, 2007)

25. ANY QUESTIONS?

26. REFERENCE
 Anon. (2002) Thai Teens Get Serious: New Market Research on the
Thailand Youth Market. Asian Market Research news. [Online]. Available
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October 28th 2009]
 Cohen, H. (2009) Eight Ways to Reach Teens, [Online], July 2005,
Available from: http://www.clickz.com/3634505 [Accessed: September 30th
2009].
 Emarketer (2007) Spending on and by teenagers to reach $208.7bn in
2011, July 2007 [Online] Available from: http://0-
academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/sear
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 Hollensen, S. (2007) Global marketing : a decision-oriented approach, 4th
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 Hooley, G., Piercy, N. & Nicoulaud, B.(2008) Marketing Strategy and
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pp. 249-262.
 Keegan, W.J. & Green, M. (2005) Global Marketing. 4th ed. New Jersey:
Pearson/Prentice Hall

27. REFERENCE
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 Manson, C. (2005) Reaching Brazilian consumers, Brand Strategy, (188),
pp. 48-50.

28. REFERENCE
 McDonald, M. and Dunbar, I. (2004) Market Segmentation: how to do it,
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29. REFERENCE
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