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Market Segmentation Represents an effort to identify and categorize groups of customers and countries according to common characteristics © 2005 Prentice Hall 7-2 Targeting The process of evaluating segments and focusing marketing efforts on a country, region, or group of people that has significant potential to respond © 2005 Prentice Hall 7-3 Global Market Segmentation Defined as the process of identifying specific segments—whether they be country groups or individual consumer groups—of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix. © 2005 Prentice Hall 7-4 Contrasting views of global segmentation Conventional Wisdom Unconventional Wisdom – Assumes heterogeneity – Assumes emergence of between countries segments that transcend – Assumes homogeneity national boundaries within a country – Recognizes existence of – Focuses on macro level within-country differences cultural differences – Emphasizes micro-level – Relies on clustering of differences national markets – Segments micro markets – Less emphasis on within- within and between country segments countries © 2005 Prentice Hall 7-5 Global Market Segmentation Demographics Psychographics Behavioral Characteristics Benefits sought © 2005 Prentice Hall 7-6
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