The document discusses segmentation, targeting, and positioning as part of an international marketing strategy. It defines segmentation as dividing the market into groups based on characteristics like geography, demographics, psychographics, and behaviors. Targeting is selecting specific market segments to enter based on an assessment of attractiveness. Positioning is developing a competitive position and marketing mix for the target segment. The document provides examples of different types of segmentation and strategies for reaching target markets, such as mass marketing, differentiated marketing, concentrated marketing, and direct marketing.
2. Strategic marketing - STP
Segmentation Targeting Positioning
The right relationship for right customers
• Huge number of
customers.
• Widely distributed.
• Different needs and
expectations.
Analyzing the marketing strategy
3. Evolution
Mass market
20th Century
Market segmentation
21st Century
• Mass marketing.
• Mass production.
• Mass distribution.
• Mass promotion.
• Identifying market
segments.
• Selecting one or some
of them.
• Developing different
products.
4. Positioning the target market
Segmentation
• Divide the market into smaller groups of consumers.
• Define markets’ profiles according to the segmentation.
Targeting
• Assess the potential of certain segments.
• Select one or more segments to enter.
Positioning
• Give the product a competitive position.
• Design marketing mix.
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5. Segmentation
Divide a market into different groups of buyers based on their needs, characteristics or
behaviors, and that may require different products or different marketing mix strategies.
Huge and
heterogene
ous
markets
1
2
3
4
Uniqueneeds
Customer segmentation
Industry segmentation
International markets segmentation
Requirements for an effective segmentation
6. Customer segmentation
There is no a single way to
segment a market.
Geographic
Demographic
Psychographic
Behavioral
Segmentation variables
Individually Combination
7. Geographic segmentation
Divide a market into different geographical units such as nations, states, regions, cities, towns or
neighborhoods.
• A company may attend one or more geographical areas but responding to their needs and
expectations.
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8. Demographic segmentation
Divide the market into groups based on demographic variables such as age, sex, family size,
family life cycle, income, occupation, education, religion, race and nationality.
Influence on needs, desires and frequency.
Easier to measure.
Age Life cycle
9. Psychographic segmentation
Divide a market into different groups based on social class, lifestyle or personality
characteristics.
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10. Behavioral segmentation
Divide a market into groups according to the knowledge, attitudes, use or consumer response to
a product.
Occasion
• Divide according
to occasions when
customers
conceived the
idea of buying,
make the
purchase or use
the product.
Benefits
• Market division
into groups
according to the
different benefits
that consumers
are looking for in
the product.
User situation
• No user
• Past users
• Potential users
• First-time users
• Regular users
11. Summary of variables
Geographic
Country or
region
Region
within a
country
Population
Zone
conditions
& Climate
Demographic
Age,
generation
and gender
Family size
and cycle
Nationality,
race and
religion
Education,
job and
income
Psychographic
Socioecono
mic level
Lifestyle
Personality
Behavioral
Expected
benefits
Occasion
and
frequency
Customer
situation
Attitude
and loyalty
13. International markets segmentation
Having operations abroad represents a big challenge for all the companies
Geographic
(Regions)
Economic
(Development, system)
Political and legal
(Government, barriers)
Cultural
(Elements of the culture)
Segmentation
Segmentation
between markets
Consumer segments with
similar needs and
purchasing behaviors,
although they are in
different countries.
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14. Requirements for an effective
segmentation
Effective
Segmentation
Segments must be
Measurable
(Quantifying)
Accessible
(Get to customer)
Differentiated
(Different responses)
Applicable
(Design their strategies)
15. Targeting
Process of assessing the attractiveness of each market segment and choose one or more
elements to try to enter.
Segmentation
Opportunities
Which?
How many?
How?
Assessment
16. Assessment of segments
S, M, L?
Profits,
sth.
relative
Size and growth
Competitors
, substitute
goods,
power of
customers
and
suppliers.
Structure
Objectives
and
resources
Company
17. Selecting a target market
Mass
marketing
Differentiated
marketing
Concentrated
marketing
Direct
marketing
Target market
Set of buyers who have
common needs or
characteristics, which the
company decides to
attend.
Strategies for reaching target markets
Coverage
18. MASS MARKETING
Strategy in which a company decides to ignore
market segment differences and attend the
entire market with a single offer.
DIFFERENTIATED MARKETING
Market coverage strategy in which a company
decides to enter into several market segments
and designs individual offers for each one.
Gain position in different segments
Higher costs
19. CONCENTRATED MARKETING
Market coverage strategy in which a company
tries to get a significant participation in a
submarket or a few submarkets.
Niche is smaller
Less competitors
Limited resources
DIRECT MARKETING
Adapting products and marketing programs to
the needs and wishes of local customer groups
and specific individuals.
Local marketing: Adjusting brands and promotions
to the needs and wishes of local consumer groups,
such as cities, neighborhoods and even specific
stores.
Individual marketing: Adapting products and
marketing programs to the needs and preferences
of individual customers.
