hello everybody ¡¡¡
today I want to talk us about someting that is very important for being succesful in new markets – how can we segment the international markets ?
Operating in many countries presents new challenges ; the different countries of the world even those that are close together , can vary in their economic , cultural and political makeup. Thus, just as they do within their domestic markets , international companies need to group their world markets into segments with distinct buying needs and behavious .
Companies can segment international markets using one or a combination of several variables . They can segment by geographic location grouping countries by regions for ex western europe , the middle east , africa and so on .
because nations close to one another will have many common traits and behaviors . For ex the United states and Canada have much in common but they differ culturally and economically from neighboring Mexico .
Also , world markets can be segmented on the basis of economic factors ; in this case countries might be grouped by population income levels or even by their level of economic development .
Another variable for segmenting ” political and legal factors” , here it includes the type of government and its stability , receptivity to foreign firms , monetary regulations and the bureaucracy . The cultural factors can be used to group the markets according to common languages , religions , behavioral patterns and so on .
Segmenting international markets on the basis of geographic , economic , political , cultural and other factors assumes that segments should consist of clusters of countries. But many companies use a different approach ” intermarket segmentation” where they form segments of consumers who have similar needs and buying behaviour even though they are located in different countries . An example is in the teenagers who show surprising similarity no matter where in the world they live . Here the companies are targeting teens with globally standardized products and advertisements . Nowadays By internet is easier ¡¡¡¡
REQUIREMENTS FOR EFFECTIVE SEGMENTATION
There are many ways to segment a market but not all are effective . To be useful , market segments must be –
Measurable – the size , purchasing power can be measured although there are certain segmentation variables are difficult to measure .
Accessible – they can be effectively reached and served .
Substantial – the market segments are large or profitable enough to serve .
Differentiable – the segments are distinguishable and respond differently to different marketing mix elements . For ex if married and unmarried women respond similarly to a sale on perfume , they don t constitute separate segments .
Actionable – Effective programs can be designed for attracting and serving the segments . For ex one company can identify five market segment but its staff can be too small to develop separate marketing programs for each segment.
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