Global Marketing Management A European Perspective

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International Market Research and Segmentation
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Is Global Market Research Different?

• Concepts are different, cultural norms may not
  apply
• We may be myopic - assumption may not apply
• Broader definition of competition
• New parameters - tariffs, duties, foreign
  currencies, operating modes

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Inadequate Research Can Cause Costly Mistakes

• Examples
• US ketchup -gt Japan
• US Kentucky Fried Chicken -gt Brasil
• US Soft Drink -gt Indonesia
• D Knorr soup -gt USA
• US cake Mix -gt GB
• Thus In international marketing, information is
  critical in developing effective marketing
  strategies!

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Five Rules of Global Research

• 1 - apply the what, why, where and when of
  information
• 2 - use locally available information first
• 3 - identify information sources abroad
• 4 - know where to look
• 5 - do not assume the information is comparable
  or accurate

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Too much research would have led to

• The Marlboro cowboy in the U.S. would be
• Marlboro boxer in the UK
• Marlboro bullfighter in Spain
• Marlboro cyclist in France
• Marlboro Sumo wrestler in Japan

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Questions for comparative research

• who are the marketers
• what do marketers do
• how are the marketers interacting
• what is governments role
• what are the key market dimensions
• what do marketers contribute
• how does the environment affect markets

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Equivalence in Global Market Research

• National markets have different definitions
• But It is essential that data have the same
  meaning the same level of accuracy, precision
  of measurement reliability
• This aspect covers all stages of marketing
  research from problem definition to data analysis

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Problem of equivalence

• Conceptual equivalence
• Functional equivalence
• Definitional equivalence
• Linguistic equivalence
• Instrument equivalence
• Temporal equivalence

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Segmenting Global Markets

• Segmenting - regional market details
• - market demographics
• - consumer psychographics
• - consumer behaviour
• Targeting - segment size and growth
• - potential competition
• - compatibility and feasibility
• Target market strategy - undifferentiated
• - concentrated
• - differentiated

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Clock Time or Event Time?

• A - each day is carefully divided into time
  segments
• time of the event is very important
• B - attention paid more to events than time (that
  is used or required by them)
• What are the consequences for market segments?

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Global Segmentation Issue 1

• Where to go.
• - Often requires matching market opportunity with
  an existing business.Either extend existing
  strategy
• - Add elements or modify strategy
• - Create a new strategic position.

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Global Segmentation Issue 2

• How and when to adapt strategy to meet national
  needs and build competencies to sustain
  competitive advantage
• National strategy
• Multinational strategy
• Global Strategy

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Global Segmentation Issue 3

• How to identify new global segments that can be
  exploited by the firm
• The firms activities and competencies may have
  the potential to enable the firm to gain
  competitive advantage in global market segments
  in which it does not currently operate.

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Global Segmentation Issue 4

• Size and number of segments
• - Macro - Which countries or regions
• - Micro - National differences within global
  segments

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Backer Spielvogel Bates Global Scan

• ... encompasses 18 countries, mostly in the Triad
• The researchers studied
• consumer attitudes values,
• media viewership/readership,
• buying patterns,
• product use.
• 5 global psychographic segments represent 95 of
  the adult populations in the countries surveyed.

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Positioning Map of Fast-Food-Restaurants in the
Mind of Consumers
Source adapted from James H. Myers, Segmentation
and Positioning for Strategic Marketing Decisions
(American Marketing Association, Chicago, 1996),
S. 187
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Summary

• Assumptions, concepts, norms are different
• Apply the five rule first
• Address the problems of equivalence
• The role of time must be understood
• Segmentation, targeting and positioning

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Market Segments and Positioning of Scooter

• A new motor scooter is to be introduced to target
  markets in Italy and Germany (East)
• Your task is to provide a rationale for selecting
  an appropriate target segment based on the
  lifestyle/consumption profiles
• For Italy, select psychographic segments from
  Strivers, Achievers, Pressured, Adapters,
  Traditionals
• For Germany (East), select psychographic segments
  from Towards the West, Reaction to Lost Status,
  Consumption with Reservation, Ideologically
  restricted
• Prepare your recommendation to position the
  scooter (you have20 minutes)

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Club Med Inc.

• Principles
• - Customer value
• - Differential competitive advantage
• - Focus of effort
• Strategy Alternatives
• - Extend domestic mix to foreign markets
• - Adapt mix to local market
• - Develop new service to meet global need

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Club Med Inc.

• Problem, Opportunities
• Stage one focus international with French
  orientation
• Adapt strategy or adapt consumer?
• Market potential location, climate,
  affluence, short trips
• Marker Research
• Lifestyle casual, vacation concept,
  competition, image problem, brand identity?
• Poor promotion, low w-o-m, 0.7 GMs per 000
  pop.
• Uniqueness is no shelter from competition

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Club Med Inc. Directions

• Penetrate promote to and through full-service
  agencies
• improve airline schedules service
  consumer is right attitude increase
  exposure widely in US Canada
• Options American vacation concept appeal
  short, full service, luxurious
• culture, education emphasis, less sports
• resorts in USA with new brand identity
• Implications
• change in Caribbean will upset Europeans
• cannot mix concepts in same location
• US locations as JVs, protect against
  existing resorts