002 Identifying Segments in International Markets PDF
002 Identifying Segments in International Markets PDF
002 Identifying Segments in International Markets PDF
Week 2
Identifying segments in international markets
Objectives:
1. To be able to identify the importance of Market segmentation in
International Marketing
2. To be able to identify the different steps, level and bases in Market
segmentation in International Marketing
Kotler et. Al (1999) stated that to choose its markets and serve them well,
many international companies are embracing target marketing. In target
marketing, sellers distinguish the major market segments, target one or more
of those segments, and develop products and marketing programs tailored to
each segment.
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Target marketing requires international company to take three major steps
1. Market Segmentation
2. Market Targeting
3. Market Positioning
Market Segmentation
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Steps in Market Segmentation
The first step in creating market segments is to clearly define the market of
interest.
The company is required to select one target market from the list of market
segments then need to use form of objective assessment.
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Step 6 – Select target market
Using the assessment information, the company can select the most
appropriate target market for the firm.
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spans various niches in terms of popularity; its mass marketing campaign has
proved to be very effective and successful over time.
In India, Godrej has soaps for different segments. Cinthol is a premium soap
and has extensions of New Cinthol and Cinthol Lime to cater to different needs.
Godrej also offers Fresca which is priced like a popular soap but promoted and
packaged as a premium soap. Godrej also sells Vigil, a family soap for the
discount segments.
Colgate and Darlie are leaders in most Asian toothpaste markets. However,
there are niche players such as Eucryl and Pyondontyl who offer specialized
toothpaste for smokers and those with sensitive or bleeding gums
respectively.
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Coca-Cola introduced the Fei Yang (High Flyer) brand of soft drink exclusively
for the Taiwan Market. The line comprises teas and juices in such indigenous
and distinctive flavors as oolong with iron Buddha leaves, and lychee and
guava. They are packaged in Tetrapacks to give them separate identify from
Coke.
Gucci, Hermes, Vertu, Burberry and Louis Vuitton are famous fashion brands
that deal with customers personally. They make clothes and other products
keeping in mind the taste of every individual.
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soup as in Japan. Also, unlike the Japanese, Indians do not use chopsticks. Thus
Nissin adapted by having shorter noodles. The noodles are also spicier and are
vegetarian-based instead of meat-based because of the large population
Indian vegetarians.
For example in religion, brand’s essence of Chicken modified its product for
the Muslim market with a new brand name Bistari which means “wise and
Smart” in Malay. Besides stating clewarly on the packaging that the tonic
drink is halal, it also has a seal with the endorsement from the Muslim
Association. The packaging comes in Islamic green with the letterings similar
to Islamic calligraphy.
The Hongkong’s Toppy Ltd. fashion chain consisting of Episode, Jessica and
Excursion is targeted at the sophisticated, trendy and smart casual lifestyles
respectively.
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Mobile phone brand Samsung offers different screen sizes, lens quality and
zooming ability, battery lifespan and other features that relate to benefits
sought, such as using the phone as a mobile office, as a camera and in
traveling long distances.
Market Targeting
Market Positioning
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References:
Websites:
Market Segmentation. Retrieved from: www.segmentationstudyguide.com.
Retrieved on April 1, 2020.
Market Segmentation definition, Levels, Types and Examples. Retrieved
from: www.marketingtutor.net. Retrieved from: April 1, 2020.
Books:
Kotler, Philip, Swee Hoon, Ang, Siew Men, Leong, Chin Tiong, Tan (2009).
Marketing Management an Asian perspective. New Jersey: Prentice Hall Inc.
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