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