- The segmentation f international markets can also be done on the basis of economic factors. Countries can be divided into segments on the basis of their overall income and expenditure and more directly their economic development. A country’s economic structure shapes its population’s product and service needs and subsequently the opportunities for marketing that are available in them. Segmentation of markets can also be done on the basis of political and legal factors as well.
- Factors like the form and stability of government, receptivity to foreign firms, monetary regulations, and the amount of bureaucracy. These factors almost inevitably play a pivotal role in the choices that a company makes with regard to which countries it wants to enter, with which products or services it wishes to enter etc. Cultural factors can also be taken as factors which form the basis of segmentation. Markets can be grouped and divided on the basis of common languages, religions, values and attitudes, customs, and behavioral patterns. When international markets are segmented the countries are grouped into bunches or clusters on the basis of similarities such as geographic, economic, political, cultural, and other factors. However, there are companies which choose to adopt different market segmentation approach known as intermarket segmentation in which they form segments of consumers who have similar needs and buying behaviour even though they are located in different countries. An example of companies which use such segmentation methods is Mercedes-Benz which exclusively targets the more affluent people in the world irrespective of the country that they live in.
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