International Market Segmentation: Reviews of the main components of conducting and measurement stages

Résumé

International activities have become a crucial step for the survival and development of companies. Exporting the company's product or externalizing the company's activities in foreign countries generates considerable outcomes. It allows to increase sales numbers, minimize costs through economies of scale, manage risks, improve the competitive and negotiation power, and improve the product quality to respond to the needs and the preferences of international customers. However, to take advantage of international activities and develop relevant strategies at the international level, companies should overcome various issues and problems that may arise in the decision-making process. International segmentation identifies the similarities and differences between countries or international customers based on specific characteristics by classifying them into homogeneous groups. The classification result can help the company to determine the group of potential consumers to target, identify and select attractive and relevant markets, transfer the experience previously gained in one market to similar ones, and choose a successful method of serving international customers. International segmentation can also help marketers implement standard marketing products or programs for homogeneous consumer segments. So, marketers can target global customers in several foreign countries or set up an international marketing mix program. Indeed, international market segmentation is necessary for decision-making and solving various international research issues and has become a tool widely used by researchers and marketers. To conduct it, some steps should be followed. These steps are the same as in domestic market segmentation, with some differences. In fact, to segment, the international market, researchers and international marketers should consider and overcome significant issues, particularly in the data used or collected. This article presents a narrative review of the main reasons, components, and tools for conducting international market segmentation. The mainly topics covered are: reasons for international segmentation, segmentation bases used, databases used and data analysis techniques mostly performed.

Keywords: International segmentation, international marketing, global marketing, Segmentation bases, Data analysis techniques.

JEL Classification: M31

Paper Type: Theoretical Research