Global Marketing (Chapt. 7)

Targeting

Global Market Segmentation

The process of identifying and categorizing groups of customers and countries based on common characteristics

Targeting

Focusing marketing efforts on a country, region, or group of people that has a significant potential to respond

Positioning

Differentiating the product, service, or brand in the minds of target consumers

Types of Segmentation: Demographic

Population, Age, Income, Gender, Ethnicity

Types of Segmentation: Psychographic - Attitudes, values, lifestyles

Mindset

Types of Segmentation: Behavior and Usage

Usage rates: low, medium, heavy

Usage status: new, nonuser, repeat

Types of Segmentation: Benefit

Benefit

Product Life Cycle

Products may be at different stages of the lifecycle in other countries

Why Does PLC Matter: Introduction stage

• Extensive Market Research

• Unique Selling Proposition (USP)

• Pricing

• Promotion

Why Does PLC Matter: Growth stage

• Product Improvement

• Market Expansion

• Effective Distribution

• Branding

Why Does PLC Matter: Maturity stage

• Product Diversification

• Price Adjustments

• Targeted Marketing Campaigns

• Customer Loyalty Programs

Why Does PLC Matter: Saturation stage

• Product Differentiation

• Geographical Expansion

• Innovative Marketing

Why Does PLC Matter: Decline stage

• Cost Management

• Focus on Loyal Customers

• Product Phase-Out

Why Does PLC Matter: Revival stage

• Product Repositioning

• Rebranding

• Promotional Campaigns

Global Segments: Global Teens

Ages 12-19, share interests in fashion, music, etc.

Global Segments: Global Elite

Affluent Consumers who are well traveled

Targeting Strategies

• Mass: Target the entire market

• Niche: Target a small segment

• Differentiated: target multiple segments with different products, e.g. Danone

  • Upper middle and high income countries: premium brands

  • Lower middle and lower income countries with cheaper offerings

Global consumer culture positioning (GCCP):

A strategy that identifies a brand as a symbol of a particular global culture or segment

• Common for high tech products, e.g., Apple

• High tech leisure or entertainment, e.g., Trek bicycles

• High touch/Emotional connection products, e.g., luxury, fine champagne

Foreign consumer culture positioning (FCCP)

A strategy that associates the brand’s users, use

occasions, or production origins with a foreign country

or culture

• US: Harley, Levi’s, Nike

• Sweden: Ikea … examples?

• Banks, airlines

Local consumer culture positioning (LCCP)

Associate brand with local culture meanings and people

• Food, nondurables

Example: TikTok

Global positioning with localization of product

• Short-form video entertainment platform

• Algorithm driven discovery (For You Page)

• Emphasis on creativity, trends, virality

• Music and visual storytelling at the center

Example: Standardization Works for TikTok

• Scalable technology (algorithm)

• Consistent user experience

• Global network effects

• Strong unified brand identity

Example: Localization - Content Differences for TikTok

• US/Europe : Influencers, memes, social commentary

• Japan/Korea: Polished, aesthetic content

• Middle East: Culturally aligned content

Local languages and humor shape engagement

Example: Localization - Role in Society for TikTok

• Entertainment globally

• News source for Gen Z (US)

• E-commerce platform (Southeast Asia)

• Career pathway for creators

Example: Regulatory Environment for TikTok

• China: Douyin (separate ecosystem)

• India: Platform banned

• US/EU: data privacy concerns

• Regulation shapes positioning and trust

Example: Monetization Strategies for TikTok

• TikTok shop in Asia

• Advertising and creator funds in US

• Live streaming and gifting

• Market-specific revenue models

Framework: Glocalization

• Think global, act local

• Standardized care + localized execution

• TikTok is a strong example of glocal strategy

Comparison: TikTok vs Instagram

• TikTok: discovery-based, algorithm-first

• Instagram: social graph-based

• TikTok adapts faster to local trends

• Different global-local balance

Key Takeaways

• Global consistency builds brand strength

• Local adaptation drives relevance

• Regulation and culture matter

• TikTok = hybrid global-local strategy