2.  What is it?
«Grouping customers according to
similar characteristics needs and
wants»

3.  How can we do it?
 Intuition (experience and judgment)
 Imitating ( Act as followers)
 Structured analisis
▪ Identify current and potential needs
▪ Identify differenciating characteristics
▪ Determine whose need is it!

4.  CRITERIAS
 Geographic
 Demographic
 Psychographic (Social Life, Life style, Personality)
 Behavioral
▪ Frequency and level of usage
▪ Percieved Benefits
▪ Willigness to buy
▪ Attitude toward a product

5.  Psychographic
 Social Class: Car – Clothes – Leissure –
Reading – Home Furnishing.
 Life Style: «Me Generation»Work Out
Shoes-Healthy Food – Fitness
Products.

6.  Behavioral:
 Occassion of usage: Orange Juice,
Disposable Camera, Flowers.
 Benefits Sought: (Toothpaste)
▪ Economical
▪ Medical
▪ Cosmetic
▪ Taste

8. 1. Research
 Identify needs
 Qualitative (motivations, attitude)
 Quantitative (brand recognition, usage forms)
2. Analysis
3. Identify segment Profile
(Pass from heterogenous to homogenous group)
4. Describe it!

9.  Identifiable
 Accesible
 Sustancial
 Differenciable
 Needs to be able to serve
 Need to be able to defend

10. SEGMENT DESCRIPTION OPPORTUNTY
Jet Seller Rich –Fashion Tourism-Luxurious-
Exclusive Products
MTV Generation Young/Middle Income Music-Videos-Movies-
Trendy Fashion
Sportive Souvenirs-Wear-Events
Technics Software-Computers-
Gadgets
Global Citizens Concerned with social
issues- connectivity
Green Wood –Web based
comunities

11.  Benefits
 Better product adjustment
 Better resources usage
 Specialization
 Profitability
 Market Opportunities
 Quick Response
 Entry Barriers
 CompetitiveAdvantage
 Differenciation

12. What does Segmentation permit?
Wide vision and perspective of clients to be
satisfied Right Mix Design
Resources Focusing (One or several segments)
Identify Globalized Segments forApplying
Global Strategy
Certain Degree of Standardization

13. Global market data warranties a succesful
segmentation and positioning
A globalization is a result of a company evolution, it
means multiple international markets.
Globalization involves:
* Integrated sourcing, production and marketing
* Allocated resources to achieve a balanced portfolio and
growth
* Coordinate marketing activities accross countries and
regions. Certain degree of standardization

15. Markets are becoming homogeneous thank to:
• Global communications
• Rapid technology diffusion
Three homogenizing forces:
• Dynamic preferences
• New products
• Leading markets

16. What costumers want, not what
customers might want
Customers in a particular local market
have different preferences from those
elsewhere

19. •ClusteringCountries
•DiversificationVs. Focus strategy

20. Grouping countries on the basis of common
characteristics considered to be important for
marketing purposes.
Variables included:
•
•
•
•
•
Sociodemographic data
Income levels
Educational background
Indicators of level of development
Infrastructure

21. Which countries are similar and which countries
are far apart. (computarized technique).
More variables used:
• Population growth
• Median age
• Number of children per household
• Infant mortality
• Life expectancy
«UN Info»
These kind of measures are useful to
judge country attractiveness,
uncover market opportunities, and
suggest interesting marketing
implications.

22. Some examples!!!!!
Market OrientedClustering Exhibit 11.2
Think and Feel Clustering Exhibit 11.3

23. * Information are too general
* More accurated information in clusters and
different across clusters.
* Patterns identification (scale economies,
simplifying logistics, similar promotions)

24. MACROSEGMENTATION
Similar markets
Global strategies tend to be
different
DIVERSIFICATION

25. FOCUS STRATEGY ON A FEW SIMILAR MARKETS INTHE SAME
CLUSTER
MARKET POSITIONS FORTIFIED
* Spillover effects are shared more easily
* Good advertising copy
* Same Product Line

26. Market factor to be considered when selecting
between diversifying or overextending.
Exhibit 11.4 Market Factor affecting the choice
of market portfolio.

29. Selection of similar target segments within
the set of countries selected in the
macrosegmentation stage.
High demand potential

30. 2. Identifiable: what distinguishes them?
3. Measurable: How many belong to each
segment?
4. Reachable: How to distribute to
and communicate with each
segment?
5. Able to buy: can they afford it?
6. Willing to buy: do they want it?

31. 1.What INFLUENCES buying behavior:
Measure consumption level and choise
Political party affiliationV/S number of children
2. Reflected and published in data SIZE:
LifestyleV/S level of education
3. Help identify the MEDIA:
TeenagersV/S social class

32. * Economic
* Demographic
* Culture
* Benefits
* Lifestyle

33.  Require resources and advance analytical
techniques.
 Difficulties in getting info from individual
respondants.
 Some market´s prefferences are not mature
yet
 There is always a reward on researching
 Secondary Data sources become critical
(Ex11.5)
http://www.euromonitor.com/
http://bx.businessweek.com/

35.  Market Penetration: Agressive Mix = strong CR
 Increase rate of use, repeat purchase, attract
competitor´s and nonusers.
 How? Home page on web, more stores, short term
price cuts, cuppons.
Eg.Visa advertisement with interesting places
where…. «They don´t acceptAmerican Express»

36.  Market Development:
 How?Adv in different media reach new targets, new
channels, new stores or new uses for the product.
Eg. Mc Donalds outlets in 800Wal-mart stores,
airports, office buildings, zoos & casinos.
Lipton recipies showing how to use dry soup mixes for
chip dip.

37.  Product Development:
 How? New or improved products for current market
Eg. Microsoft with new versions of popular programs
Ski Resorts Develope trials for Hiking and M.Biking
customers when no snow

38.  Diversification:
 How? Entering into completely unfamiliar products
and markets
Eg. Coleman added a line of air compressors which
attract building contractors rather than outdoor
enthusiasts.

39.  A generic market is a market with broadly
similar needs and sellersoffering various—
often diverse—ways of satisfying those needs.
 product-market is a market with very similar
needs and sellers offering various close
substitute ways of satisfying those needs.

40. A generic market description doesn’t include any product-type terms. This
emphasizes that any product type that satisfies the customer’s needs can
compete in a generic market.

43. This depends on the firm’s resources,
the nature of competition, and most
important the similarity of customer
needs, attitudes, and buying
behavior.