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Lesson#35
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Basis for Country Segmentation
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INTERNATIONAL MARKET 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
following;
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
segmentation.
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- 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)
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- 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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