Explanation of international market segmentation terms

The interpretation of international market segmentation terms is the process that enterprises divide the whole market into different consumer groups according to the different needs of consumers.

Market advantage:

This method considers three aspects and reflects the multinational environment more comprehensively. Each dimension is closely related to marketing; Taking risk as a dimension alone is more in line with the actual situation, because many countries have great potential and attraction, but at the same time there are different degrees of risks.

Each dimension consists of several factors, so each aspect is a comprehensive measure of multiple factors. For example, whether it is gross national product or income level, a single factor is not enough to represent the market potential of the whole country.

The role of international market segmentation:

Discover new market opportunities and meet potential market demand. First, accurately identify the differences in consumer demand and the degree to which demand is met, find and seize market opportunities, and avoid risks; Second, clearly grasp the strength and market share of competitors, give play to their own advantages and choose the best market;

Improve the economic benefits of enterprises, concentrate resources to optimize the allocation according to market segments and enterprise goals, and realize economies of scale; Only by determining the correct target market and deeply subdividing and analyzing the huge international market can we make the right choice.

Steps of international market segmentation:

First of all, the first step:

Enterprises believe that the world market should be divided according to the economic and technological development level of each country and the demand for electronic computers.

Second, the second step:

According to the above segmentation criteria, the world computer market can be divided into two sub-markets. Small computer market with simple demand (such as the first generation computer); A market that needs large and complex electronic computers.

Third, the third step:

To meet the first sub-market, enterprises only need to have the technical ability and production capacity to produce simple electronic computers; To meet the second sub-market, it is necessary to have a medium technical level and production capacity; To meet the third sub-market, enterprises need to have the cutting-edge technology to produce modern large-scale electronic computers and the ability to compete with the first-class enterprises of international business machine companies.

Fourth, the fourth step:

Assume that according to the resource conditions of the enterprise, it is determined to serve the second sub-market, and the following countries and regions belong to the second sub-market: South Korea, India, Singapore, Mexico, Brazil and Nigeria. In order to meet the needs of these target market countries, the company can set up assembly plants in Nigeria, Brazil and South Korea, and the needs of other countries can be met by importing from these three countries.