international marketing-Market Selection.docxVIP

A7 MARKET SELECTIONWhat do you know about G7, G8 and G20?G-20 Major Economies (theGroup of Twenty Finance Ministers and Central Bank Governors)Purpose: Bring together systemically important industrialised and developing economies to discuss key issues in the global economy.ArgentinaAustraliaBrazilCanadaChinaEuropean UnionFranceGermanyIndiaIndonesiaItalyJapanMexicoRussia- G8Saudi ArabiaSouth AfricaRepublic of KoreaTurkeyUnited KingdomUnited StatesINTERNATIONAL MARKET SEGMENTATIONMarket segmentation is the process in marketing of dividing a market into distinct subsets (segments) that behave in the same way or have similar needs. ...to respond with appropriate marketing strategies that satisfy the different preferences of each chosen segment.The reason for segmentation is market homogeneity/heterogeneity.The purpose of segmentation is to satisfy consumer needs more precisely.Common mistakes by US companies in international market segmentation:Going abroad means geographic segmentation.There is no serious attempt to segment a foreign market.Try to capture the total market at once.Consumers in a foreign country are unlikely to be homogeneous. e.g. urban v. rural, social classes. A total market strategy place the firm in head-to-head competition with strong, local competitors.Criteria To Make A Feasible Segmentation Strategy: MeasurabilityThe target segment must be capable of some form of measurement, or at least, a best guess.SizeThe target segment must be large enough to make the marketing efforts financially worthwhile.AccessibilityTargeting is useless unless this segment can be accessed by promotion and distribution.ResponsivenessThe target segment should react to any change in the marketing mix elements. Failure to do so indicates that this is not a proper segment that has been drawn.Segmentation variablesGeographic segmentationNature of the productemotional product, culture bondfunctional products: painkiller, agricultural chemicalsCultural segmentation (number of