MARKETING INTERNATIONAL MANAGEMENT
SESSION 7: CUSTOMER BEHAVIOR AND MARKET SEGMENTATION
1
WHY STUDY CUSTOMER BEHAVIOR?
To Assess Opportunities for Introducing New Products/Brands To Determine How to Segment Markets Internationally To Decide How to Position New Products/Brands
2
UNDERSTANDING THE PRODUCT MARKET
Identifying Set of Competing Products Understanding Customer Usage Patterns Identifying Desired Benefits
3
COUNTRY A (U.S.)
Soft Drinks
Canned Soda
Bottled Waters
Iced Teas
Alternative Beverages
Fruit Juices/ Smoothies
Energy Drinks
Cola
Ginger Ale
Diet Soda
4
COUNTRY X
Soft Drinks
Colas
Bottled & Canned Drinks
Freshly Squeezed Fruit Juices
Flavored Mineral Waters
Beer
Milk
Herbal Drinks
Orange
Lemon/ Lime
Other (e.g. Black Currant)
5
CUSTOMER USAGE PATTERNS
Daily Life Rhythms Usage Scenarios Cultural Conventions and Practices Environmental/Technological Sophistication (Access to Computers/Internet)
6
GLOBAL INTERNET LANGUAGES (Dec 2001)
Internet Access Language
English Non-English European Languages a Asian Language b
a
Total Population
% of Total 33.4% 66.6% 30.3%
(Millions) 230.6 403.5 224.1 179.4
% of Total (Millions) 36.5% 63.5% 35.5% 28.3% 508 5,633 1,218 329
Includes: Czech, Dutch, Finnish, French, German, Greek, Hungarian, Italian, Polish, Portuguese, Romanian, Russian, Danish, Icelandic, Norwegian, Swedish, Slovak, Slovenian, Spanish, Turkish
b
Includes: Arabic, Chinese, Hebrew, Japanese, Korean, Malay, Thai www.glreach.com
DESIRED 7
Source: CUSTOMER BENEFITS
Product Symbolism Price Sensitivity Role Perceptions and Expectations Socio-Cultural Values
8
CHANGING DYNAMICS OF CONSUMER BEHAVIOR
Massive Waves of Migration and Diaspora Increased Interlinkages and Communication Between Markets Worldwide
u u
Consumer mobility Pan-regional and global media (Satellite TV, Internet)
Global Marketing of Products/Brands and Service
9
IMPLICATIONS
Decline of National Consumer Cultures/ Rise of Glocalism
Cultural Diversity and Pluralism
Growth of Cross-Border Segmentation
10
INTERNATIONAL SEGMENTATION STRATEGIES
Country Segments Macro-Country Segments Cross-National Segments
u u
Regional Global
11
COUNTRY TYPE A SYMPTOMS ADMITTED
Take pride in lifestyle that gives hangover
COUNTRY TYPE B
Admit to occasional hangover For headaches and upset stomach
COUNTRY TYPE C
Deny that su...