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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
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Identify consumer segments with similar traits
Select segments company can serve efficiently
Develop products tailored to each segment
Offer products to the target market:
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Communicate traits that differentiate the product
Copyright Atomic Dog Publishing, 2002
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.
Copyright Atomic Dog Publishing, 2002
Requirements for Effective
International Segmentation
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Measurability
Substantiality
Stability over time
Accessibility
Actionability
Differential response
Copyright Atomic Dog Publishing, 2002
International Macro-Segmentation
• Market potential – indicators:
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Gross domestic product (GDP) per capita
Industrial and agricultural sector statistics
Market size and potential
Consumer buying power
Investment figures (FDI, other trade statistics)
Copyright Atomic Dog Publishing, 2002
International Macro-Segmentation,
continued
• Political, legal and financial environment
of country
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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
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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…
Copyright Atomic Dog Publishing, 2002
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
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Demographic
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Age
Occupation
Education
Income
Ethnicity
Race
Nationality
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- Life-cycle stage
- Social class
- Urbanization
Micro-Segmentation, continued
• Basis for Segmentation
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Psychographic: lifestyles, values, attitudes, interests,
opinions
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Hofstede dimensions:
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Power-distance
Masculinity-femininity
Uncertainty avoidance
Individualism-collectivism
Global segments:
• Global teenagers
• Global elite
Copyright Atomic Dog Publishing, 2002
Micro-Segmentation, continued
• Basis for Segmentation
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Benefit Segmentation
Geographic
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Micro-Segmentation, continued
• Basis for Segmentation
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Usage
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Nonusers
Occasional users
Medium users
Heavy users
Copyright Atomic Dog Publishing, 2002

User Status
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User of competitors’ products
Ex-users
Potential users
First-time users
Regular users
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
Copyright Atomic Dog Publishing, 2002
Target Market Decisions
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Differentiated
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Identify or create market segments desiring different
product benefits and target each segment with a
different brand and different marketing strategies
Example: Procter & Gamble
Copyright Atomic Dog Publishing, 2002
Target Market Decisions, continued
•
Concentrated
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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
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Aim the product at the market with a single strategy
regardless of the number of market segments
Example: powder milk, beans
Copyright Atomic Dog Publishing, 2002
Positioning the Brand
1)
2)
3)
4)
5)
6)
Identify competitors
Determine how they are perceived by consumers
Determine positioning in consumer’s minds
Analyze customers
Select positioning
Monitor position
Copyright Atomic Dog Publishing, 2002
Positioning the Brand, continued
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Attribute/Benefit
Price/Quality
Uses or Application
Product User
Product Class
Competition
Copyright Atomic Dog Publishing, 2002
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