International Market-Segmentation:

1. Segmentation Within-country

This is done in the home country by those companies which apply global/international operations.

2. Cross-border segmentation

Segments in one country are different from those of another countryowever, some countries may have segment similarities between groups of consumers. A regional segment is possible. Even a global is possible sometimes.

Advantages of regional or global segments are:

• Opportunities for standardisation;
• Significant economies of scale in production;
• Economies in R&D and marketing costs;
• Segmentation can be done in the youth market;
• e.g. for jeans, pop records, etc and the business market (business suits
• and magazines)

The disadvantage is lack of customer responsiveness.

3. Country Groupings

• Complete countries are grouped into segments
• This is good for standardisation
• Economies of scale are realized
• Criteria used for grouping may be level of economic development or geographical proximity. This is based on a single variable.
• Advantages are convenience of management for geographical proximity
• Disadvantages are the segmentation ignores social, cultural and political differences. If whole countries are grouped by using a single variable, it is not likely that there will be a real cost or marketing advantage.