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Global Marketing Segmentation.

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Introduction

´╗┐Segmentation Global Market Segmentation Jared Wayne International Marketing December 5, 2011 Abstract In businesses-to-business marketing, as well as, in business-to-customer marketing, marketers are usually charged with developing effective global pricing strategies for customers characterized by different cultures, and different utilities for product attributes. The purpose of this article is to examine how marketers use demographic and geographical market segmentation to introduce products and how they use segmentation to introduce services, in an international setting. The article begins with a discussion on the definitions of international market segmentation, types of strategies used and brand creating, as well as, discussing the way markers divide market into distinct segments. A conclusion will follow with a review of the information gathered. Introduction ?With the increasing globalization of the business world, international segmentation becomes an ever more important concept in marketing. The globalization forces now at work push many companies to extend or reorganize their marketing strategies across borders and target international segments of consumers? (Horn and Oz 1996 p53). A successful strategy for global marketing depends on an organization?s ability to segment its markets so that uniform sets of marketing decisions can be applied to specific groups that exist horizontally, that is, across nations or cultures (Sethi 1971). ...read more.

Middle

The last strategy that Sacks writes about is full market coverage, with this, the organization tires to serve the entire market. This coverage can be done by means of either mass-market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is used for each segment. Brand is classified as a method of differentiation in marketing. In global marketing, the brand can develop social or behavior characteristics as with Benetton or Porsche. Also, the brand concept is dynamic, not static. This can develop according to each market (Patterson, 2007). A brand is created by augmenting a core product with distinctive values that have distinguished itself from the competition (Liu, Chen, Chen, a, 2011). This is the process of creating brand value. All products have a series of core benefits, benefits that are delivered to all consumers. Consumers are rarely prepared to pay a premium for products or services that simply deliver core benefits. They are expected to justify a core price. Successful brands are those that deliver added value in addition to core benefits. Those added values enable the brand to differentiate itself from the competition. ...read more.

Conclusion

?Consideration related to grouping may include the makeup of the areas, that is, urban, suburban, or rural; size of the area; climate of population? (Yoo and Donthu 2002 p. 381). Conclusion Individual consumers have different needs and want when it comes to services or products. This is why market segmentations is needed and that the older paradigm of mass marketing to an entire populations is no longer relevant. With the world becoming more globalized, more international market segmentation is needed. Uniform international market segments can be applied to specific sets of customers. International market segmentation will hold more challenges that domestic market segmentation because of the cultural and economic differences. International market segmentation for services has grown progressively more compared with that of products. Global services have a lower cost and they are better able to compete with closer regions. Though, research in international market segmentation has been conducted more steadily in last couple few decades, many marketers believe more research is required. International market segmentation for products is quite similar to market segmentation domestically. The target market is segmented into specific categories, groups or attributes. Age, s*x, social economic statues, race, and education levels are all possible ways a market can be divided. Geographic locations are another way to segment markets. This can be done with whole countries to specific neighborhoods. ...read more.

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