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International segmentation and positioning.

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International segmentation and positioning Types of products on the Internet Products sold on the Internet fall into two categories: Physical products Businesses such as Amazon.com and Ebay.com take advantage of selling physical products by using the Internet as an interaction with an immense network community. Digital goods and services This includes information goods and services such as financial information, reference and learning material, entertainment and multi media services and distributed database services etc... In addition innovative digital products also include on- line gaming, chat rooms and search engines etc... Different strategies are used to price and market the goods, as the above products are easy to copy, yet difficult to value. Strategies include: customisation and bundling, bundling valuable content along with advertising to provide 'free' goods, which introduces different versions of the same product to suit different users, charging subscriptions and also crucially use market mechanisms to assist the setting of prices. ...read more.


* Political system grouping These countries may be grouped and world market segmented depending on a wide range of political features. For instance a certain product is not to be sold in another country due to governmental regulations. In the case of the Internet information is limitless, it is difficult to filter information on the Internet, or to know who is logging on to your website. * Cultural similarity grouping. Hofstede (1980) states "Culture is the collective programming of the mind which disguises the members of one human group from another". The visible and invisible parts of culture are firstly: the 'visible daily behaviour' such as body language, lifestyle and drinking and eating habits, secondly: 'values and social morals' such as family roles, sex roles and friendship patterns and finally: 'basic cultural assumptions such as national identity, ethnic culture and religion. Culture also depends on whether the country is high context or low context which was introduced by Edward T. ...read more.


For example Japan and Germany have a good reputation for cars, whereas if a car were made in China, our perception would certainly change about the quality of it. Perception is also influenced by culture, language, history and nationalism. Web-user demographics It is known that the majority of web-users are from the middle to upper income groups with matric equivalent or higher education. The general "older generation" is bound to claim that most of the web-users are teens or early twens. This does not seem to be so. Candor Webtech ( http://www.candor.com/ ) is a South African operator which runs, amongst a number of other successful applications, a free bi-monthly competition on the Internet. The purpose of the competition is to gain information on Web-user demographics and the company has found that, contrary to popular belief, the average age group is far higher than expected. They have found that 71% of users are older than 25 years of age, and 22% of the sample are older than 45. The statistics are based on a sample of 3000. ...read more.

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