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9.3 Choosing Attractive Market Segments A Five-Step Process

9.2 How Are Market Segments Best Defined?

9.1 Why do market segmentation makes sense

9.0 Introductory Case Studies


Content

Table of Contents









References

  1. ^ global market segmentation has been to view a country or a group of countries as a single segment comprising all consumers.
  2. ^ This approach is seriously flawed because:
    __
    • it relies on country variables rather than consumer behaviour,
    • assumes homogeneity within the country segment, and
    • ignores the possibility of the existence of homogeneous groups of consumers across country segments.


  3. ^ why companies expand internationally
  4. ^ to defend their home position against global competitors
  5. ^ to service customers who are also engaging in global expansion.
  6. ^ to earn foreign exchange
  7. ^ companies are paying considerably more attention to political risk




Details


The traditional approach to[1] global market segmentation has been to view a country or a group of countries as a single segment comprising all consumers.


__[2] This approach is seriously flawed because:
  • it relies on country variables rather than consumer behaviour,
  • assumes homogeneity within the country segment, and
  • ignores the possibility of the existence of homogeneous groups of consumers across country segments.



More and more companies are approaching global market segmentation by attempting to identify consumers with similar needs and wants reflected in their behaviour in the marketplace in a range of countries.

This inter-country segmentation enables a company to develop reasonably standardised programs requiring little change across local markets, thereby resulting in scale economies.



Star TV’s launch of a Pan-Asian satellite television service broadcasting throughout Asia in English and Chinese is an example of such a strategy.//[19]//
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There are many reasons – beyond mere ambitions to grow –[3] why companies expand internationally.

Some companies go international [4] to defend their home position against global competitors who are constantly looking for vulnerability.



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For example, Caterpillar, through a joint venture with Mitsubishi Heavy Industries, has for the past 30 years made a substantial investment in Japan to deny its Japanese competitor, Komatsu, strength at home, thereby taking away its profit sanctuary.

Had Cat not been successful in doing so, Komatsu would have been able to compete more aggressively with Cat, not only in the United States but also in other major world markets.

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Another reason a firm may go overseas and target a specific country is [5] to service customers who are also engaging in global expansion.


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In recent years Japanese automobile companies that have created US manufacturing facilities have encouraged some of their parts suppliers to do the same.

Firms also enter overseas markets [6] to earn foreign exchange and, in some cases, are subsidised by their governments to do so.


In general, with the exception of these strategic special circumstances, the selection of overseas target markets follows essentially the same patterns as for domestic markets, although given the magnitude of economic, social, and political change in the world today, [7] companies are paying considerably more attention to political risk.









Tags
  1. client contact systems
  2. collector bias
  3. competitive advantage
  4. competitive intelligence
  5. computerised reorder system
  6. consumer behaviour
  7. data sources
  8. evidence based forecast
  9. experienced user
  10. internal records
  11. just in time
  12. logistical alliance
  13. market potential
  14. market segmentation
  15. market segments
  16. marketing program
  17. marketing research
  18. mass market
  19. mass market strategy
  20. michelin; us west;
  21. micro segmentation
  22. middleman
  23. modified rebuy
  24. multi-functional sales teams
  25. multilevel selling
  26. multiple buying
  27. multiple level relationships
  28. mutual trust
  29. narrow market segment
  30. narrow niche
  31. nationalisation of producers
  32. nerve center
  33. new task buy
  34. nine west group
  35. observation;direct observation' tanzania mobile;
  36. on-time delivery
  37. opportunity; research
  38. order handling
  39. organisation market
  40. organization marketing behaviour
  41. organizational behaviour
  42. organizational customers
  43. organizational demand
  44. organizational market
  45. organizational purchasing behaviour
  46. organizational purchasing process
  47. paperless exchange
  48. parity pricing
  49. personal selling
  50. personal use
  51. political risk
  52. potential market; penetrated market
  53. pre-delivery inspection
  54. pre-sale service
  55. prestige buyer
  56. pretender
  57. primary data
  58. procurement costs
  59. purchasing criteria
  60. qualitative data
  61. qualitative research
  62. quality assurance
  63. quality standards
  64. quantitative data
  65. quantitative research
  66. research objectives
  67. retention programme
  68. routine purchase
  69. sales forecast
  70. semantic differentiation scale
  71. sequence of information
  72. shared costs
  73. short term contracts
  74. social construction
  75. status oriented consumers
  76. stock availability
  77. straight rebuy
  78. supplier bargaining power
  79. supplier performance
  80. supplier reputation
  81. survey
  82. tabulation errors
  83. tanzania mobile
  84. target customers
  85. target market
  86. target marketing
  87. technical experts;
  88. test markets
  89. transaction cost
  90. trend forecasting
  91. trusting patron
  92. underlying consumer demand
  93. unethical demands
  94. unstated but implicit assumptions
  95. users
  96. value analysis
  97. value shopper
  98. vertical integration
  99. visceral thing that cannot be trained
  100. wild guess