Copyright © 2017 Pearson Education, Inc.
7-4
OVERVIEW
The efforts by global companies to connect with wealthy Chinese consumers highlight the
importance of skillful global market segmentation and targeting.
Market segmentation represents an effort to identify and categorize groups of customers and
countries according to common characteristics. Targeting is the process of evaluating the
segments and focusing marketing efforts on a country, region, or group of people that has
significant potential to respond. Such targeting reflects the reality that a company should identify
those consumers it can reach most effectively, efficiently, and profitably. Finally, proper
positioningis required to differentiate the product or brand in the minds of target customers.
Global markets can be segmented according to buyer category (e.g., consumer, enterprise, and
government), gender, age, income, and a number of other criteria. Segmentation and targeting
are two separate but closely related go-to-market activities. These activities serve as the link
between market needs and wants and tactical decisions by managers to develop marketing
programs and value propositions that meet the specific needs of one or more segments.
Segmentation, targeting, and positioning are all examined in this chapter.
ANNOTATED LECTURE/OUTLINE
GLOBAL MARKET SEGMENTATION
Global market segmentation has been defined as the process of identifying specific segments—
whether they be country or individual consumer groups—of potential customers with
homogeneous attributes who are likely to exhibit similar responses to a marketing mix.
Professor Theodore Levitt advanced the thesis that consumers in different countries increasingly
seek variety, and that the new segments will emerge in multiple national markets (e.g., Ethnic
food such as pizza and sushi are in demand worldwide). Levitt suggested that this trend, known
variously as the pluralization of consumption and segment simultaneity, provides an opportunity
for marketers to pursue one or more segments on a global scale.
Global market segmentation is based on the premise that companies should attempt to identify
consumers in different countries who share similar needs and desires. However, the fact that
significant numbers of pizza-loving consumers are found in many countries, they are not eating
the exact same thing (e.g., Dominos in France, serves pizza with goat cheese and strips of port
fat know as lardoons. In Taiwan, toppings include squid, crab, shrimp, and pineapple).
A. Coskun Samli has developed a useful approach to global market segmentation that compares
and contrasts“conventional” versus “unconventional wisdom”.
For example, conventional wisdom might assume that, consumers in Europe and Latin America
are interested in World Cup soccer while those in America are not. Unconventional wisdom
would note that the “global jock” segment exists in many countries, including the United States.