| Segmenting international markets |
| A lot of people I know have been discussing over and over again whether a general/standard, differentiated/customized or concentrated marketing approach should be adopted when opening new markets. All sides have for and counter arguments... when entering a new market, after researching it ... adopting a standard marketing and segmentation strategy grants you the "privilege" of low costs (with marketing expences, but not only) but with the counterpart of low/medium profit and medium/low adaptability to the market. Actually, the last two are interdependent with the fact that having a low adaptability to the markets needs, standards aproaches and products implies not reaching a part of the market whose needs are more special and definite. MOST of companies go for the standard approach of a market due to the costs and risks; risks from the company's standpoint. But when looking at the market and how its segments would receive the SAME, standard product, doubt comes in our minds. Going for a differentiated/customized segmentation and marketing campaign implies first of all higher costs. Comparing to the gain and income many might say that it's not worth it as the profit is low, medium at best. However, the adaptibility to the customers needs is sensitive and loyal small markets are born. This on the condition to keep getting the product in the shape, size and attributes that cover their concrete unique needs now. The company's focus is low as it tries to satisfy more and more, very different small markets, that, at the same time, very rarely grant the guarrantee of solid profit. A concentrated marketing approach implies low costs as it goes for one, specific target in the whole market. Keeping it to one well defined group, as needs, the adaptability is high, resulting in high satisfaction of customers and a loyal market. Thus, income from trading is high. Of course, after making a review of all three alternatives the majority of you might say that the last approach is the best as advantages and costs; you might be right. But this is not the point. The point in all of this relies in one word; the word is FOCUS. If a company is able to keep its focus on a certain group in the market, covering at best capability their needs, controlling costs and always adapting and innovating according to the prefferences of the customers, ownership of that market will last a long time. Profit being high (big income - low costs) the company has the chance and opportunity to think about targeting other markets. Again, with FOCUS on its product and needs of buyers. It's all about FOCUS. Period. Loose your focus and sales will go down, costs will rise, customers and employees will begin being disatisfied with the company. PepsiCo has twice the assets of the Coca-Cola Company but half its income. Do you know why? Yes,...they're OUT OF FOCUS. The rest is just words and history....if not bankrupcy. |
| Standard vs. customized vs. concentrated marketing |
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| International business International marketing |