Hakka

21/02/2013

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International Marketing IB
Marketing for E&BE
Marketing A&c
Lecture 3 (International) Market Segmentation
› Department of Marketing
› Prof. Dr. Peter Verhoef

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Agenda
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Short recap
Culture as external force
(International) Market Research issues
(International) Market segmentation

“There are 3 kinds of companies: those who make things happen, those who watch things happen, and those who wonder what’s happened.”

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Recap: SWOT = Describe & analyse

IMPACT OF CULTURE

External Analysis
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Customer Analysis
Competitor Analysis
Market/submarket Analysis
Environmental Analysis
• DEPEST

Opportunities and Threats

Internal Analysis
• Performance Analysis
• Marketing strategy
• Segments & target group(s)
• Positioning
• Marketing mix!

Strengths and Weaknesses

Strategic options by combining
S,W,O,T and strategic choice

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Recap: Culture affects consumers
ORIGINS

ELEMENTS
OF CULTURE

Geography; History; Political Economy;
Social Institutions (family, religion, school)

Values, Beliefs, Thought Processes,
Manners/Customs, Language

CONSEQUENCES Consumption decisions
and behaviors

Management
Style

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Characteristics of Culture
› learned
› interrelated
› shared

Unconscious!

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prescriptive
subjective
enduring
cumulative

› dynamic
Hollensen: Culture is “the collective programming of the mind which distinguishes the members of one human group from another”. “the learned ways in which a society understands, decides and communicates”

So: effect on consumer behavior & decision process!

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Layers of Culture
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Country
Regional affiliation
Ethnic affiliation
Religious affiliation
Linguistic affiliation
Gender
Generation
Social class (education / profession)

› Note: acculturation / deculturation

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General comparative characteristics of culture
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Communication and language
Sense of Self and Space
Dress And Appearance
Food/Eating Habits
Time consciousness
Family and friends
Values and norms
Beliefs and attitudes
Mental processes and learning
Business/Work Habits

Drives attitudes
and behaviour
(symbols?)

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Language: Contextual Background
Japanese
Arabian

High Context
Implicit

Latin American
Spanish
Italian
English (UK)
French
North American (US)
Scandinavian

Low Context
Explicit

German
Swiss

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How to assess cultural impact on consumers?
Eg, by using Hofstede’s 4 dimensions

Hofstede’s Cultural Dimensions
Dimensions
Country
PDI UAI IND
Netherlands
38
53
80
Mexico
81
82
30

MAS
14
69

Mind you: our concern in this course is
how this impacts marketing decisions!

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As said before: Search for differences & adjust….

Be aware of Self
reference criterium!
The unconscious reference to one's own cultural
values or one's home country frame of reference
when attempting to understand another culture.

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Global Marketing Plan
1) Get information (International
Marketing Research)
2) STP (International Market Selection)

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Global Marketing plan (see framework Hollensen)
Build around the 5 main decisions in global marketing:
1. The decision whether to internationalize
SWOT =>
* IMS
2. Deciding which markets to enter
* entry mode
3. Market entry strategies
* mix
4. Designing the global marketing programme
5. Implementing and coordinating the global marketing
programme

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Development of the global marketing plan

Next week

Development of the global marketing plan

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Knowing your consumer => marketing strategy
Marketing strategy = STP:
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