Why segmenting globaly?

We all need somehow to consider market segmentation as a business alternative. The rational for an effective market segmentation lies on two major issues:

We cannot sell all products/services to all customers and obviously we cannot afford to do that on a long-term basis.

The mass marketing definition of Anderson and Vincze (2004,pp.226) covers me theoretically to a great extend: "attempt to sell to everyone in the market assuming that demand is homogeneous; one marketiong mix is used for all customers".

A number of organizations though are getting a strong global presence in expanding their international portfolio of business. In this sense, marketers strive hard to accomodate a macro or micro perspective in their global segmentation variables.

Complicating the segmentation issues in global markets is the need for internationally perfoming companies to make strategic positioning decisions in an increasingly competitive and transparent marketplace in order to leverage brand equity and achieve economies of scale.

In short, the strategic necessity does not stop at the selection of desirable market segments, but also includes the need to position brands effectively relative to the market segment (Hassan and Craft, 2005).

Levitt (1983) introduced the concept of “segment simultaneity” in his thought-provoking article describing the globalization of markets. He described this phenomenon as the "proletarianization" of global markets where everyone, everywhere wants to have and enjoy world brands - for example, consume McDonalds burgers in China or regularly wear/buy clothing from the Spanish retail giant ZARA. What he described, in fact, was the existence of similar market segments and consumers in different countries for whom low price and high quality would be common criteria for making buying decisions. Is that though the case?
Do we think globally and act glocally?
Can we convince global consumers of the necessity to buy P&G products worldwide?

In fact, market segmentation strategy must be examined to determine the best bases for global brand positioning. Global consumer markets are best understood as groups of buyers who share the need and desire for a product and the ability to pay for it, not just those who share a national border (Hassan and Craft, 2005). We should not forget that buyers in a given - clearly defined market segment seek similar benefits from, and exhibit similar behavior in buying a product. Although these consumers may live in different areas of the world and come from very different backgrounds and value systems, they have commonalties in association with a given global brand. Many of these similarities are associated with the brand image and the lifestyle it projects (Luqmani et al., 1994).

To be continued...