KMB- 302 : Unit -3: Lecture _4 (International Segmentation)

1. Branch - MBA
International Business Management
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY
By
Dr. B. B.Tiwari
Professor
Department of Management
Shri Ramswaroop Memorial Group of Professional Colleges, Lucknow, U.P.(India)
Unit-3: Lecture – 4
International Segmentation

2.  Market segmentation is the process of disaggregating the market into number
of distinctive subset of buyers each with relatively homogeneous
characteristics .
 Segmentation means to divide the marketplace into parts, or segments, which
are definable, accessible, actionable, and profitable and have a growth
potential.
 For example, common characteristics of a market segment include interests,
lifestyle, age, gender, etc. Common examples of market segmentation include
geographic, demographic, psychographic, and behavioral.
Market segmentation

3.  To reduce risk in declining where, when, how and to whom a product
,service or brand will be marketed.
 To increase marketing efficiency by directing effort specifically toward the
designated segment in a manner consistent with that segment’s
characteristics.
 Market Segmentation helps the marketers to devise appropriate marketing
strategies and promotional schemes according to the tastes of the
individuals of a particular market segment.
 To make marketing effort more efficient and economic.
And to identify less satisfied segment.
Why Segmentation?

4.  It is the process of dividing the world market into distinct subsets of customers
that behave in the same way or have similar needs
,or,
 it is the process of identifying specific segments-whether they be country
groups or individual consumer groups-of potential customers –of potential
customers with homogeneous attributes who are likely to exhibit similar buying
behaviour.
So The Global Market Segmentation is???.....

5. Benefits and Examples of Global Market
Segmentation is???.....
 By tailoring marketing programmers to individual market segments, any company can do a
better marketing job and make more efficient use of its marketing resources. Such a firm
might compete very effectively in one or two small market segments; however; it would
likely be overwhelmed by the competition it aimed for a major segment.
 For example: the Hain celestial group, inc, is focusing on various segments of the U.S and
international markets for organic and natural foods. Under one of
its brands ,celestial seasonings, the firm markets specialty teas.
 After water, tea is the most heavily consumed drink in the world and Hain cekestial is
developing new market and distribution strategies to support new tea flavors
for many different market segments.

7.  Markets are sometimes segmented intuitively ; that is marketer relies on experience and
judgment to make a decision about the segments that exist in a market and how much potential
each offers. Others follow the lead of competitors or earlier market entrants .
 for example, Gatorade was invented by university of Florida scientists to rapidly replenish the
body fluids of the school’s football players. when it was later introduced as a consumer product, it
met the needs of a group of beverage consumers that became known as the “ sports drink”
segment. As gatorade’s popularity grew, imitators such as powerade from coca-cola and all sport
from Pepsi was introduced. Each has taken a small share of the market, but they did not unseat
gatorade as the brand with the largest share. And the future may get even rougher for these
imitators now that gatorade has been acquired by pepsi, and will benefit from even broader
distribution.
Key Points:

8.  Undifferentiated marketing
 Differentiated marketing
 Concentrated marketing
 Undifferentiated Marketing: Undifferentiated marketing is a strategy in which market segments
differences are ignored and one product or service is offered to the entire market.
 Differentiated Marketing: Differentiated marketing is a type of marketing strategy where a firm offers
products or services to a number of market segments and develops separate marketing strategies for each.
 Example: As an example, the alcohol beverage brewer, Anheuser Busch, makes the Bud Light brand of beers. As seen with
the three advertisements below, the company segments their marketing efforts across several markets. In this example, we see
advertisement segmented for the following markets: same-sex couples, Hispanics, and African American’s.
 Each market segment would need a separate market strategy.
Alternative Segmentation Strategies

9.  Concentrated Marketing : Concentrated marketing is a type of marketing
strategy where a firm chooses to focus its marketing efforts on one particular
market segment.

10. strategy Description example
Undifferentiated Sending the same
promotional message to
everyone
Promoting the city as a
historic destination by
placing ads in widely
read newspapers
differentiated Designing a promotional
message that
communicates the
benefits desired by a
single specific segment
Promoting the city as
historic by targeting
elderly members of
historical societies by
placing ads in their
newsletters
concentrated Designing more than one
different benefits
Also targeting families by
promotional message, communicating a
with each communicating promotional message
about the importance of
children learning history

12.  FIRST STEP: The marketer carefully examines the market to determine the specific needs
being satisfied by current offerings, the needs current offerings fail to adequately satisfy, and
the needs that may not yet be recognized. This step may involve interviewing and/or
observing consumers or firms to determine their behaviour, levels of satisfaction and
frustrations.
 SECOND STEP: In this step the focus is on what prospectus, who share a particular want
have in common to distinguish them from other segments in the market that have different
wants. from the result of this step , potential marketing mixes ( including product ideas) for the
various segments can be designed. These alternatives can be further analyzed.
 THIRD STEP : The final step is to estimate the potential sales of each segment, the
urgency of the need , and the strength of the competition

13.  Forecasting is essential in evaluating possible target segments. it involves estimating the
demand of the market. Management usually estimates the total sales that could be
expected under ideal conditions for all firms comprising the industry-market potential –and
for its particular product-sales potential.
 Basic Forecasting Terms:
A. Market Share:
a term used frequently in business as a performance measure, market share
.
The base for calculating market share can refer to entire industries , segments
of industries can also apply to past, present or future periods.
.
Example: the steel industry has 95% market share for canned – food
containers ,is working to prevent a recurrence of the inroads in food
packaging made by the aluminium makers in the market for beverage cans,.
So awareness of the base and time period used in computing market share is
essential to correctly interpreting the statistic.

14.  Market Factor:
A market factor is something that : (1) exists in a market.
(2) is a measurable .(3) is related to the demand for a
product in a known way.
Example at global level : In segmenting world markets
geographically ; McDonald’s at one time used population ; per
capita income and the number of people per store in the U.S as
market factors to obtain a rough forecast of the no of stores a
country could support.
Example at the domestic level: no of cars three years older
is a market factor for the demand of replacement tires. it is a
market factor because the no of replacement tires that can be sold
changes as the no of older cars changes.

15.  The Lenovo also focused on the customers with new concepts and high level educations.
There are four market segmentation have been used in the market for the computer industry
to push the product to the people.
Demographic segmentation:
GENDER
Purchasing habit of women can’t be overlooked in PC’s market,
because most women buyers the stylish appearance and lightweight
portable design rather than the computer performance.
• Tweens and teens usually use their computer for study and online game,
while Generation X use their computer for work and social contact. The
Idea Pad design marked a deviation from the business-oriented ThinkPad
laptops, towards a more consumer-focused look and feel
AGE
• Because the income directly determine the purchasing power of
consumer, Lenovo PC products are distributed across low end market,
mid-range market and high end market.
INCOME AND
EXPENDITURE

16.  Lenovo divided the overall market based on mature market and emergingmarket.
 Lenovo gave up this method of market segmentation, while Lenovo divided the global market into
four parts: Chinese market, North American market, EMEA market (Europe, Middle East and Africa
market) and Asia Pacific - Latin Americanmarket
 Lenovo sells its laptops to almost every country in the world but has major consumers in China
and India. Lenovo computers are the second largest selling computer brand in the world after
having bypassed Dell and Acer.
 Lenovo operates 46 world-class labs, including research centres in Yokohama,Japan;
Beijing, Shanghai, Wuhan and Shenzhen, China; and Morrisville, North Carolina, U.S.
They have a luxury problem in some ways, the brand is not well known, yet Lenovo’s
sales grew 35% ending 2015.Lenovo has had great success in enterprise and B2B market
segments. The company enjoys large market shares, dominating both business and
industrial segments in China and India.

17. The benefit segmentation is related with the design and delivers the
product to the consumer by offering the relevant service to the
consumers It includes: ..................
Customer Segmentation
• Lenovo Company for business design the idea pad S, idea pad U
and Think pad R
General Business
Purpose
• For student group Lenovo mainly makes idea pad Y series.
College Students
• For advance games Lenovo offers 3000 series and Lenovo
yogaAdvanced Gamers

18. Differentiation Strategy:
 A differentiation strategy is based upon persuading customers that a product is superior to that
offered by competitors. The major benefits to Lenovo of a successful differentiation strategyare:
 (1) Its products will command a premium price.
 (2) Demand or its product will be less price elasticthan that for competitors‟ products.
 (3) Above average profits can be earned.
 (4) It creates an additional barrier to entry new business wishing to enter theindustry.
 Lenovo is seeking to differentiate itself which will organize its value chain activities to help create
differentiated products and to create a perception among customers that these offering are worth
a higher price.
Pricing Strategy:
 Lenovo has been very aggressive in its pricing strategy with its different series of laptops and
respective models. Lenovo initially followed IBM’s pricing policy. This can be considered
skimming done by a company which wants to earn as much as possible.
 Based on different levels of consumers, Lenovo developed different prices, by creating
differentiated products to meet different consumer groups, formulating differential
price discrimination.

19.  Baby Products: To babies who are deprived of proper nutrition, Nido,
Cerelac, Lactogen are the nutritious milk Product that give you more
nutrition then any other brand because these contain different types of
vitamin, mineral etc.
 Nescafe: To busy people who drink coffee and have little time for
taking rest, Nescafe is the coffee that gives you more energy than any
other brand because it has the highest level of caffeine,
 Maggi: To people, noodles and soup consumer who seek
better quality, Maggi noodles and healthy soup that gives you proper
nutrition than any other brand because it has the best quality.
 Their motto for business is “GOOD FOOD GOOD LIFE”
Positioning Segmentation Strategies:
Nestle

20. THANK YOU