Global Market Segmentation for Digital Marketing in Bali

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For marketers, defining market segmentation is the basic knowledge for achieving efficiency in marketing activities. Not only in conventional marketing but also in digital marketing and it’s crucial. I’ve seen digital advertising set up where the coverage is too broad so it doesn’t get anything. The impression is high but the conversion is low. So it is important for marketers to know the market characters in their work area.

Why talking about the segmentation of the global market while I myself work in the Bali region which is still Indonesia. The reason is clear that segmentation based on country groups applies in Bali especially in the tourism industry. I take the example for Asian segmentation we can get China, Japan, and Korea, and for European segmentation, there’s Russia, France, UK & Germany. In addition, there is also segmentation of India and not to forget the two closest neighbors: Australia & Singapore. Surely the customer preferences from one country are not the same as other countries, with different languages and cultures.

So here I try to quote a definition of market segmentation and global market segmentation according to researchers in the marketing field.
 



 

The Market Segmentation

Market segmentation according to Philip Kotler, “is the division of the market into a homogeneous customer sub-section, where each sub-section can be chosen as the target market to be achieved with a different marketing mix.”

According to Peter D. Bennett (1995) market segmentation is “the process of dividing the market into subsets of customers who have behavioral similarities or equal needs. Each subset can be selected as a target market that will be achieved with different marketing strategies.”

And according to Webster ” Market Segmentation is a method of getting the maximum market response from limited marketing resources by recognizing differences in response characteristics from different parts of the market. This is a divide and conquers strategy for formulating marketing strategies by looking at the inherent differences in buyer behavior. ”

 

Global Market Segmentation

Global market segmentation is the process of dividing the world market into subsets of customers who have similar behavior or similar needs. Or according to Salah S. Hassan, 1992, “global market segmentation is defined as ‘the process of identifying certain segments – whether groups of countries or groups of individual consumers – from potential customers with homogeneous attributes that might describe the same buying behavior.‘”

Arthur C Fatt, 1967, in the journal “The Danger of ‘Local’ International Advertising. Stated that certain themes such as the desire to look beautiful, the desire to be free from pain, live a healthy life, and the universal love of mother and child can use in advertisements throughout the world.

According to Kotler, 1993: A market can be divided or segmented based on {1} geography; {2} demographic; {3} psychographics or behavioral variables. And the key criteria of global marketing segmentation from Warren J. Keegan in his book Global Marketing Management is {1} geography; {2} demographic (age, gender, education & employment income); {3} psychographics (values, attitudes, and lifestyle); {4} behavior characteristics; {5} the benefits sought & {6} vertical vs horizontal segmentation.

 

Conclusions

In the end, basic knowledge about market segmentation must be used by marketers to make strategies that are more targeted so that implementation will be far more effective and efficient with limited marketing resources.
 



 

 

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