•Understand the reasons for the following:
A. International Market Segmentation: The goal of market segmentation is to break down the market for a product or a service into different groups of consumers who differ in their response to the firm’s marketing mix program. i. Segments should have include a set of properties: Identifiable, Sizeable, Accessible, Stability, Responsive, Actionable. ii. Country Screening - Global Marketing Research - Entry Decisions - Positioning Strategy - Resource Allocations - Marketing Policy Mix B. How to Assess Dimensions:The formulation of a positioning strategy (local or global) includes the following steps:
1. Identify the relevant set of competing products or brands.
2. Determine current perceptions held by consumers about your product/brand and the competition.
3. Develop possible positioning themes.
4. Screen the positioning alternatives and select the most appealing one.
5. Develop a marketing mix strategy.
C. The Different Ways to Segment.
i. Demographics: Purchasing Power Parity (PPP) criteria, Human development index (HDI) classification, (SES) Analysis ii. Behavior Based: criteria include degree of brand/supplier loyalty, usage rate (based on per capita consumption), product penetration (that is, the percentage of the target market that uses the product or the brand), and benefits sought after. iii. Life Style: Achievers, Traditionals, Survivors, Nurturers, Hedonists, Socialrationals, Self- directeds iv. Socioeconomic Variables: Caveats in using per capita income as an economic development indicator: Monetization of transactions within a country, Gray and Black Market sections of the economy, Income disparities 2. How to formulate a positioning strategy and the different ways/dimensions to position products in the international market. i. Global consumer culture positioning (GCCP): Brand as a symbol of a given global consumer culture ii. Local consumer culture positioning (LCCP): Brand as an intrinsic part of the local culture. iii. Foreign consumer culture positioning (FCCP): Brand mystique built around a specific foreign culture
*REMEMBER GLOBAL POSITIONING AND SEGMENTATION STRATEGY DIAGRAM Chapter 8: Global Strategy: Global Industry, Competitive industry, Competitve Advantage, Hypercompetition, Interdependency 1. Understand the different ways to gain a competitive advantage: The firm has a competitive advantage when it is able to deliver the same benefits as competitors but eat a lower cost, or deliver benefits that exceed those of competing products. ***Nature of Competitive Industry Structure
i. The firm that builds its competitive advantage on economies of scale is known as one using a cost leadership strategy. ii. product differentiation strategy
iii. Smaller companies may pursue a limited differentiation strategy by keeping a niche in the market. Firms using a niche strategy focus exclusively on a highly specialized segment of the market and try to achieve a dominant position in that segment. *Creative Destruction*First-Mover Advantage versus First-Mover Disadvantage*Competitor-Focused Approach*Customer-Focused Approach. 2. Understand the different drivers of industry: Industry Competitors, Potential Entrants, Bargaining Power of Suppliers and of Buyers, Threat of Substitute Products/Services – know diagram. 3. Be prepared to do a SWOT analysis and apply a given strategy based upon combinations of the different categorizations (S*O; W*T; etc.). 4. Understand the power of tourism, how it can be an effective export, why it is important, and for the U.S. be prepared to conduct a SWOT on tourism. Chapter 9: Market Entry
1. Understand how to select target countries using the initial screening process: The goal of this exercise is 2fold: you want to...