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CHAPTER INTERNATIONAL MARKET SELECTION VTHN ngocvth@uel.edu.vn 01 Segmentation process 04 Market selection process, Regional, trans-na8onal 02 and global segments 05 Evalua8ng overall foreign 03 Global market segmentation procedure, and strategy market por=olios MARKET SEGMENTATION The process of classifying customers into homogeneous groups with similar demand and/or preferences (Bruning et al , 2009, p 1500) A process whereby unique customer groups can be identified in country-based/ individual consumer-based groups (Bruning et al , 2009, p 1500) MARKET SEGMENTATION - Interna(onally oriented firms largely depend on resource based advantages, high quality products (tradi(on, chance, or produc(on philosophy), and long-term personal rela(onships and commitment in developing their niche strategies - can generate specializa(on - involves costs, risks, and possible weaknesses - analysis of market behavior: channels, customer segments, or use occasions as well as the geographic dimension SEGMENTATION SCENARIOS Country segments Regional segments - Similarity across regional level Transnational segments - Segments based on similar needs across a group of countries - Country clusters Global Segments - Segments transcending national boundaries with common needs GLOBAL SEGMENTS ! “Homogeneous entities categorized by psychographic and behavioural similarities” (Doole, Lowe & Kenyon, 2018) ! “ defined based upon market variables other than national boundaries (Hassan, 2011) ! Share core values, attitudes and aspirations ! Recognition that world markets consist of similarities and differences as distinguishing characteristics ! Segmentation across markets rather than within - consumers, not countries ! Problem if geographically spread GLOBAL MARKET SEGMENTATION “The process of identifying specific segments, whether they be country groups or individual consumer groups, of potential customers with homogeneous attributes who are likely to exhibit similar responses to a company’s marketing mix” (Hassan & Katsanis, 1991) GLOBAL SEGMENTS Teenagers Affluent consumers Technology geeks Interna/onal business travelers Similarity of needs depends on product categories e.g high-tech consumer durables, travelrelated products GLOBAL SEGMENTS “Global consumers are willing to put their money where their heart is when it comes to goods and services from companies committed to social responsibility” “China remains an engine of growth for luxury goods as the country’s middle class con

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