Examining world market segmentation and brand positioning strategies

Abstract

PurposeThis paper aims to examine the conceptual as well as empirical linkages between segmentation bases and brand positioning strategies in the context of discussing practical implications for firms operating in increasingly globalizing markets.Design/methodology/approachThis paper empirically examines an inventory of market segmentation factors in relation to four global strategic positioning decision options.FindingsThe two studies reported suggest that a combined use of macro and micro‐bases to segment world markets is significantly linked to the perceived positioning strategies of global top brands, whereas firms seeking more localized positioning strategies use only micro‐bases to segment.Practical implicationsThe conceptual and empirical findings reported in this paper pave the way for embarking on promising and relevant future research that is needed to substantiate and enrich the academic understanding and managerial practice of segmentation and strategic brand positioning decisions in world markets.Originality/valueThis paper is unique in identifying a link between global brand positioning and segmentation factors.