Question

Describe how marketers segment international markets. What is intermarket segmentation?

Answer 1

Answer

Intermarket segmentation can be defined as the process of selecting large consumer segments across a wide range of different countries which targets integrated brands positioning irrespective of geographic or national boundaries. The main motive behind the formation of Intermarket segmentation is to form different groups or segments of consumers on the basis of their similarity in their day to day requirements and buying habit. It aims to fulfill consumers demand and to serve them better

The main task of marketers in the process of Intermarket segmentation is to study consumer behavior and the ongoing trends in the international market. The marketers can segment international market using the following criteria of segmentation, they are as follows;

(1) Geographic Segmentation: Here segmentation mainly done on the basis of geographical location units such as nation, states, regions districts and cities. The company can operate either from few locations or from all location but can keep eye on the local variations in different geographical locations. It can target both local as well as the global market in order to fulfill consumers demands.

(2)Demographic Segmentation: It is mainly done on the basis measurable population characteristics which include age, gender, income, level of education and occupation, these characteristics help identification of different consumer for the process of segmentation. The different demographic variable helps in the formation of consumers groups or segments.

(3) Psychographic Segmentation: In this segmentation process the consumers are classified on the basis of their attitudes, values, lifestyles or personality.

(4) Behaviour Segmentation: In this type of segmentation, the main purpose is to analyze the consumer's behavior regarding the buying of any particular products in the market. The behavior can include how often the consumer is buying a product or consumer status. It also gives the main focus on a pattern of product users by a particular consumer in the market.

(5) Benefit segmentation: The market classification is done on the basis of consumer’s benefits, getting from the product available in the market.