Question

Identify the major geographic and demographic segments in global markets.

Answer 1

Global market otherwise known as international markets is segmented based on different criteria such as geographic, demographic, psychographic, behavioral characteristics, etc. Let us see geographic and demographic segmentation in the global market:

- Geographic segmentation- The global market is divided into several different units identified as geographic locations namely, nation (country), states, regions, city and the rural areas. Though the company can operate in all the geographical units, it is important that they consider the changes in trends in the locations they operate to cater to the local people. Additionally, if a company does business in several countries, then the assumption for the global market segments is that though the consumers are in different country or regions, they all have the same wants and needs.

- Demographic segmentation- Since the customer’s usage or purchase behavior is purely dependant on their lifestyle, demographic segmentation is divided into demographic variables such as age, gender, income level, family size, religion, education, nationality, occupation, etc. Also, these demographic variables are measurable. Usually, national income to deduce the per capita income is the primary variables for consumer and industrial products. These variables can also be measured. The variables are studied to identify any potential market opportunities. Hence, the companies group the countries based on the income level (high, medium and low). Then, the target country with the desired income level for marketing is further selected. Thus, demographic segmentation plays a major role in the global market segmentation.