Examples Of Global Market Segmentation

1.0 GLOBAL MARKET SEGMENTATION

Global market segmentation is the process of identifying a group of people who have interest on the products in international context. This is because marketers should attempt to identify customers in different countries who share same needs and wants. In fact, there are also differences in customers’ needs and wants across the border. For example, Mc Donald’s in Thailand serve customers with chicken and pork burger while Mc Donald’s in Malaysia serve customers with chicken, beef and fish burger. There are some variables that used to determine global market segmentation such as demographic segmentation, psychographic segmentation, behaviour segmentation, benefit segmentation and ethnic segmentation.

1.1 Demographic

Through analysing their responses, the marketers can determine if there are distinctive groupings of consumers. If the groupings do existed, the marketers will have a lifestyle profile of the consumers in each group. This can help the marketers to gain a better understanding on consumers ' lifestyles, how they purchase products that fit in with their lifestyles, what other products they might buy, and the types of advertising themes that might appeal to them. For example, Stuarts Department Stores targeted low-income people by knowing their lifestyles inside out which including their shopping habits that these people do not buy seasonal merchandise until the weather

1.5 Ethnic Segmentation

In many countries, the population includes ethnic group of significant size. In the United States, for example, the three major ethnic segments are African/Black Americans, Asian Americans and Hispanic Americans. Each segments shows great diversity and can be further subdivided. For example, Asian Americans include Thai Americans, Vietnamese Americans and Chinese Americans, and each group speaks a different language.

America’s Hispanic population shares a common language but can also be segmented by place of origin: the Dominican Republic, Cuba, Central America, Puerto Rico, and , of course, Mexico. The Hispanic American segment comprises nearly 50 million people, representing about 16 percent of the population and $978 billion in annual buying power. As a group, Hispanic Americans are hard working and exhibit strong family and religious orientations. However, the different segments are very diverse, and marketers need to beware of falling into the trap of thinking “ All Hispanics are the same,” some call the new face of opportunity the “$1 trillion Latina.” Indeed, the United States is home to 24 million women of Hispanic heritage; 42 percent are single, 35 percent are heads of households, and 54 percents are employed. From a marketing point of view, the various Hispanic American segment represent a great opportunity. Companies a variety of industry sectors, including food and beverages, consumer durables, and leisure and financial services, are