International Markets Segmentation

Academic Year: 2016/2017 2nd Term Instructor(s): Professor João Borges de Assunção

Introduction: Segmentation has been defined as the cornerstone of modern marketing. However, as competitive pressures on companies grow, short term implementation replaces the conceptual frameworks and analysis inherent in segmentation analysis and strategies. Simultaneously, most companies are facing increasing pressures to internationalize. As such, country segmentation becomes the first naïve approach to segment international markets, as a natural first step in the internationalization process. This course is designed to provide a conceptual and analytical platform to deal with both conceptual and practical issues related to the segmentation of international markets. In particular students will learn to use some statistical techniques to segment international markets.

_____________________________________________________________________________ Organization of the course: This course is designed as a master level course in marketing that focus on applications of segmentation methods to international marketing contexts. The conceptual topics covered in the course will include:

Social and cultural elements in world markets;

Strategy alternatives for entry and positioning in international markets;

The adaptation standardization dilemma;

International marketing as segmentation on a geographic base. The segmentation methods used in this course will include:

Clustering methods (K-Means);

Mixture Models. The class uses a combination of lectures, cases paper discussions

_____________________________________________________________________________

Grading:

The course will use a variety of evaluation moments and tasks: 1.Homework (15%). The course has two homework assignments. The first is to conduct a clustering analysis of a Tablet PC dataset. The second is to conduct a mixture model segmentation of the same dataset. The first is due on November 13thand the second on November27th (tentative). 2.Class Participation (15%). Based upon contribution to the quality of the class (especially case discussions and homework), interest, attendance and participation. 3.Group Project (25%). Students should organize themselves in 6 groups of 5 students. The main goal of this project is to have students apply and develop an international market segmentation approach to a specific business or brand. The project should contain the following three elements:

i) An applied approach to a market in which segmentation is important;

ii) An applied approach to segmentation involving more than two countries as

markets;

iii) The project should use one quantitative technique to conduct the segmentation.

Due by December 3rd. Groups will make a presentation of the project in class. 4.Final Exam (45%).

____________________________________________________________________________ Extra Costs (case studies, platforms...): Not applicable.

_____________________________________________________________________________ Bibliography: João Borges de Assunção, Associate Professor, received a PhD in Management from University of California, Los Angeles, an MBA from UNL and a Licenciatura in Management from UCP. He was Dean of CATÓLICA-LISBON (1996-2001). He was a Professor at the Graduate School of Business of Columbia University (1990-94) in the Marketing and International divisions. His research interests include: Marketing, Marketing Strategy, Pricing, Promotions, Marketing Research, and Dynamical Models of Consumer Response. He has conducted consulting and strategic training for companies in the following industries: telecommunications, retailing, services, technology and utilities. He is the coordinator of NECEP a research group that studies

the short-term behavior of the Portuguese economy. He was an Economic Advisor to the Portuguese Prime Minister (2002-04). Since 2006 he is Economic Consultant with the Portuguese President. He is also a member of GSPA (Group of Societal Policy Analysis) an advisory body of the European Commission, a member of the Supervisory Board of TAP and Chairman of the Supervisory Board of Eurocash (Poland).

_____________________________________________________________________________ Bibliography: BOOKS: Dibb, Sally and Lyndon Simkin, (2007), “Market Segmentation Success: Making it Happen, Haworth Press.

Keegan, Warren (2014), “Global Marketing Management”, Pearson.

Kotabe, Masaaki and Kristian Helsen (2008), “Global Marketing Management”, John Wiley & Sons.

McDonald, Malcolm and Ian Dunbar (2004), “Market Segmentation: How to Do it, How to Profit from it”, Elsevier.

Wedel, Michel and Wagner Kamakura (2000), “Market Segmentation: Conceptual and Methodological Foundations”, International Series in Quantitative Marketing CASES:

Fashion Channel

Abercrombie & Fitch PAPERS:

Agarwal M. K. (2003), “Developing Global Segments and Forecasting Market Share: A Simultaneous Approach Using Survey Data,” Journal of International Marketing, Vol. 11 (4), pp. 56-80.

Aurifeille, J.-M., Quester, P., Lockshin, L., Spawton, T. (2002), “Global vs international involvement -based segmentation: A cross-national exploratory study,” International Marketing Review, Vol 19 (4), pp. 369-386.

Craft S. H. (2004), “A Factor Anlaytic Study of International Segmentation Performance Measures, “Journal of Euromarketing, Vol. 13 (4), pp. 79-89.

Dibb S., Stern P., Wensley R. (2002), “Marketing Knowledge and the Value of Segmentation,” Marketing Intelligence & Planning, Vol. 20 (2), pp. 113-119.

Hassan S. S., Craft S., Kortam W. (2003) “Understanding the new bases for global market segmentation,” Journal of Consumer Marketing, Vol. 20 (5), pp. 446-462.

Levitt, Theodore (1983) “The Globalization of Markets”, Harvard Business Review.

Sausen K., Tomczak T., Herrmann A. (2005), “Development of a taxonomy of strategic market segmentation: a framework for bridging the implementation gap between normative segmentation and business practice,” Journal of Strategic Marketing, Vol. 13, pp. 151-173.

Steenkamp J.-B. E. M., Hofstede F. T. (2002), “International Market Segmentation: Issues and Perspectives,” International Journal of Research in Marketing, Vol. 19, pp. 185-213.

Vernon, Raymond, (1966), “International Investment and International Trade in the Product Life Cycle, The Quarterly Journal of Economics, Vol. 80, No 2, (May), pp 190-207.

Yankelovich, Daniel and Meer, David (2006), “Rediscovering Market Segmentation”, Harvard Business Review, February.

Walters, P. (1997) Global Market Segmentation: Methodologies and Challenges, Journal of Marketing Management, Vol. 13, pp. 165-177.

_____________________________________________________________________________ Contact(s) and Office hours: Email: jba@ucp.pt _____________________________________________________________________________