Chapter 7: Segmentation, Targeting and Positioning
Learning Objectives
• Understand the concepts of segmentation, targeting and positioning and their
importance as global marketing tools
• Describe the common attributes used to segment world markets
• Identify the major criteria for targeting world market opportunities and selecting a
target market strategy
• Describe the importance of product positioning and identify the major global
product positioning strategies
Chapter Overview
Through global market segmentation, the similarities and differences of potential buying
customers can be identified and grouped. Demographics, psychographics, behavioral
characteristics, and benefits sought are common attributes used to segment world
markets. After marketers have identified segments, the next step is targeting. The
identified groups are evaluated and compared; the prospect(s) with the greatest potential
is selected from among them. The groups are evaluated on the basis of several factors:
segment size and growth potential, competition, and compatibility and feasibility. After
evaluating the identified segments, marketers must decide on an appropriate targeting
strategy. The three basic categories of global target marketing strategies are standardized
marketing, concentrated marketing, and differentiated marketing. Finally, companies
must plan a way to reach their chosen target market(s) by determining the best
positioning for their product offerings. Here, marketers devise an appropriate marketing
mix to fix the product in the mind of the potential buyers in the target market. High-tech
and high-touch positioning are two strategies that can work well for a global product.
Lecture Outline
I. Global Market Segmentation (p. 196)
a. Geographic Segmentation
b. Demographic Segmentation
c. Psychographic Segmentation
i. Backer Spielvogel & Bates’s Global Scan
ii. D’arcy Massius Benton & Bowles’ Euroconsumer Study
iii. Young & Rubican’s Cross-Cultural Consumer Characterizations
d. Behavior Segmentation
e. Benefit Segmentation
f. Vertical Versus Horizontal Segmentation
II. Global Targeting (p. 205)
a. Criteria for Targeting
i. Current Segment Size and Growth Potential
ii. Potential Competition
iii. Compatibility and Feasibility
b. Selecting a Global Target Market Strategy
i. Standardized Global Marketing
ii. Concentrated Global Marketing
iii. Differentiated Global Marketing
III. Global Product Positioning (p. 207)
a. High-Tech Positioning
i. Technical Products
ii. Special-Interest Products
b. High-Touch Positioning
i. Products that Solve a Common Problem
ii. Global-Village Products
iii. Products that Use Universal Themes
IV. Summary (p. 211)
Tables and Figures
Figure 7-1 Importance of Market Definition Criteria (p. 198)
Table 7-1 Psychographic Profile of Porsche’s American Customers (p. 200)
Figure 7-2 BSB’s Global Scan Segmentation Study (p. 202)
Table 7-2 Y&R’s 4Cs (p. 203)
Sidebars
Sidebar 7-1 McDonald’s in Indonesia (p. 196)
Sidebar 7-2 BlackBerry’s Pie Slice (p. 197)
Sidebar 7-3 Global Marketing in Action (p. 208)