Local Market Behavior, Local Market Behavior, Segmenting and PositioningSegmenting and Positioning

The Global MarketThe Global Market

Modern telecommunications lead to Modern telecommunications lead to cultural similarities,cultural similarities,

People everywhere have the same needs People everywhere have the same needs and wants,and wants,

Global products can meet global needs.Global products can meet global needs.

Decision Making Process

NEED RECOGNITION

ALTERNATIVE EVALUATION

ALTERNATIVE SEARCH

PURCHASE DECISION

POSTPURCHASE EVALUATION

Need RecognitionNeed Recognition

Recognition of a difference between the Recognition of a difference between the ideal state and the actual state.ideal state and the actual state.– New products may create new “ideal”New products may create new “ideal”– New products may create new “needs”New products may create new “needs”

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Physical

Safety

Social

Personal

Self Actualization

Alternative SearchAlternative Search

Individual tries to identify ways to fulfill the Individual tries to identify ways to fulfill the need.need.

Is the customer accustomed to searching Is the customer accustomed to searching alternatives?alternatives?

Is there an aversion to “new” ways?Is there an aversion to “new” ways?

Global brand awareness facilitates search.Global brand awareness facilitates search.

Alternative EvaluationAlternative Evaluation

Consumer considers features or Consumer considers features or attributes.attributes.

Compares information to perception of Compares information to perception of need.need.

What are the “core benefits”?What are the “core benefits”?

Purchase DecisionPurchase Decision

In many cultures, decisions are influenced In many cultures, decisions are influenced by social norms.by social norms.

Social norms involve:Social norms involve:– Social forcesSocial forces– Motivation to complyMotivation to comply

The Fishbein ModelThe Fishbein ModelMultiattribute Evaluation

Preference

Behavioral Intent

Choice

Situational Factors

Social Norms

Social Forces

Motivation to Comply

Post-Purchase EvaluationPost-Purchase Evaluation

Consumer evaluates the quality of the Consumer evaluates the quality of the decision made.decision made.Does the product meet “expectations”.Does the product meet “expectations”.Expectations are defined by:Expectations are defined by:– Previous experiencePrevious experience– ReputationReputation

Infrastructure may affect ability to meet Infrastructure may affect ability to meet expectations.expectations.

Clustering helps to find patternsClustering helps to find patterns

Groups customers who are similar in their Groups customers who are similar in their segmenting dimensions.segmenting dimensions.

Customers can be grouped by their Customers can be grouped by their response to need satisfaction or response to need satisfaction or preferencespreferences

Preferences can be mapped on a chart.Preferences can be mapped on a chart.

Deodorant

High moisturizing

Clustering of Preferences in Bar SoapsClustering of Preferences in Bar Soaps

Nondeodorant

Low moisturizing

1

23

5

4

8

6

7

Product PositioningProduct Positioning

How consumers think about brands in the How consumers think about brands in the market.market.

Product space map:Product space map:– Which attributes are importantWhich attributes are important– How products are rated on these attributesHow products are rated on these attributes– How consumer preferences are clusteredHow consumer preferences are clustered

“Product Space” Representing Consumers’ Perception for Different Brands of Bar Soap

Deodorant

High moisturizing

Positioning of Different Bar SoapsPositioning of Different Bar Soaps

Nondeodorant

Low moisturizing

1

23

5

4

8

6

7

• Zest

• Lever 2000

• Safeguard

• Dial• Lifebuoy

• Lava

• Lux

• Dove

• Tone

MispositioningMispositioning

Adaptation may be necessary to match Adaptation may be necessary to match global product to local market.global product to local market.

Overcoming mispositioning:Overcoming mispositioning:– AdaptationAdaptation– Lower priceLower price– Established brandEstablished brand

Targeting StrategiesTargeting Strategies

Universal segmentUniversal segment

Unique segmentsUnique segments

Uniform positioningUniform positioning

Adapted positioningAdapted positioning

Targeting StrategiesTargeting Strategies

Universal Unique

Uniform

Adapted

Positioning

Local Market Segment

Nike IKEA

Mobile phones

Volvo

Pampers

Levi’s

Honda Prelude