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Basis for Country Segmentation


Basis for Country Segmentation

Basis for country segmentation:

Continuing our discussion of the earlier session other basis for segmenting country markets are in the

Political Conditions:

- Political variables form another basis for country segmentation.
- Economic System - Free market, mixed or centrally planned.
- Political setups - Democracies, dictatorships, communist dictatorships & monarchies
- Political Risk

Cultural Variables:

- Cultural traits provide another basis to classify countries i.e., religion, language, education, aesthetic
preferences etc.
- Marketers can also rely on a well established measurement scales for culture-based market
- Hofstede’s four cultural dimensions can also be used for segmenting country markets
1. Individualism versus collectivism
2. Power distance
3. Uncertainly avoidance
4. Masculinity - feminity
- Behavior Based Segments
- Degree of brand / supplier loyalty
- Usage rate (per capita consumption)
- Product market penetration
- Benefits sought after (Product concept)
- Life Style
- Attitudes
- Opinions
- Values
- Geographic Grouping
- Grouping on Religion
- Inter-market segmentation / Global segments
- Similar group of consumers across countries may be combined to form a viable segment.

Requirements for effective international segments:

While an international marketer may identify many possible segments in the target markets, these need
to be evaluated for viability and business potential. Chosen segments need to satisfy the following four
aspects for implementation of effective marketing strategies and profitability;

Potential in segments should be measurable

size, purchasing power, profiles of people

Segments should be accessible for marketing programs

segment can be effectively reached and served

Segments should be substantial

segments are large and profitable enough to serve

It should be possible to implement marketing action programs

effective programs can be designed for attracting & serving the segment

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