International Marketing: Segmentation, Targeting & Positioning

Vocabulary flashcards generated from the International Marketing Segmentation, Targeting & Positioning transcript.

International market segmentation

Identifying groups of potential customers with homogeneous attributes and similar likely responses to the marketing mix.

Macrosegmentation

Segmenting countries or groups of countries.

Inter-market segmentation

Finding similar consumers across different countries, deliberately ignoring national borders.

Intra-market segmentation

Segmenting consumers within one country.

Microsegmentation

Forms of segmentation that include inter-market and intra-market segmentation.

Measurability

The requirement asking if the segment's size and characteristics can be reliably measured.

Substantiality

The requirement asking if the segment is sufficiently large/profitable and has attractive growth potential.

Stability

The requirement asking if the segment is likely to remain sufficiently consistent over time.

Accessibility

The requirement asking if the firm can effectively reach and serve the segment.

Actionability

The requirement asking if the firm can develop and implement an effective marketing strategy for the segment.

Differential response

The requirement asking if the segment responds meaningfully differently from other segments.

International segmentation process

A 4-step process: 1. Select relevant segmentation criteria, 2. Develop segments, 3. Screen countries/markets, 4. Microsegment.

Preliminary screening

Broad knock-out criteria used to eliminate unattractive countries early.

Fine-grained screening

Evaluating the remaining markets based on market attractiveness plus the firm's competitive potential/fit.

GDP

Domestic output.

GNP

$$\text{GDP} + \text{net factor income from abroad}$$

Targeting

Evaluating market segments and deciding which segment(s) the firm will serve.

Concentrated targeting

Focus on one segment across multiple countries.

Country-by-country differentiated targeting

Choose different target segments in different countries according to local conditions.

Standardized global-segment targeting

Target the same segment internationally, treating the market as broadly interconnected.

4 building blocks of positioning

Target customer, Frame of reference, Point of difference, Reason to believe.

Target customer

The specific segment the brand is trying to serve.

Frame of reference

The competitive category/context against which consumers understand the brand.

Point of difference

A specific, defensible benefit that distinguishes the brand from competitors.

Reason to believe

Evidence that makes the point of difference credible.

Positioning statement formula

For [target], [brand] is the [frame of reference] that [point of difference], because [reason to believe].