Mnykh O.

Rudenko A.

English

Mnykh, O. B.

eLibrary National Mining University

Mnykh O., Rudenko A. O.B. Mnykh, research supervisor Lviv Polytechnic National University  FACTORS OF SUCCESS IN THE SEGMENTATION MANAGEMENT ON INTERNATIONAL MARKETS  Market segmentation is one of the main marketing features for countries, regions and individual companies. In recent years, the issue of energy efficiency and reduction of the negative impact of food crisis has become particularly important. It encourages researchers and marketing practitioners to implement innovative solutions related to changes in marketing geography, redistribution of market power between different regions and economic activities more actively and thoughtfully. For example, the technology of getting relatively cheap energy will quickly spread from China throughout the world, as cheaper energy enables to increase the viability of the economies of most developing countries, and those related to the transition economies, including Ukraine.  The economic division of the world into major economic zones will create more restrictions for global financial institutions and therefore will dramatically reduce financial ground, on which the U.S. economy and its global dominance are based. Noticeable increase in capacity of domestic markets of China and India contributes to the gradual reduction of their dependence on U.S. and EU markets. Accordingly, not only speculative flows of financial capital in the global section will change, but the exchange rates of currencies of other countries against the dollar as well. It is obvious that the countries with so-called "dollarization" of the economy, including Ukraine, will suffer more because the U.S. will make the partners that keep their money in dollar assets "pay" for the deterioration of its international position. Devaluation of national currencies in many countries will reduce the value of money as the main factor in international transactions and will increase the value of technology, primarily in manufacturing, management and promotion of innovation. Technological factors will play an important role for Ukrainian companies with a high proportion of material costs in the cost of production to provide for the conditions of their life in crisis. The role of demographic factors in international competition (especially in the long run) can significantly increase compared to the current level: markets of India and China are becoming attractive for many European and American companies. Japanese experience in marketing geography changes to strengthen the competitiveness of national economy is noteworthy. Thus, the increase in the number of domestic plants in Japan at the beginning of the new millennium occurred as a result of cyclical cessation of investment in foreign companies owing to sound strategic segmentation of manufacturing operations for domestic and foreign. According to the Ministry of Economy, Trade and Industry of Japan (METI) the number of domestic manufacturing and assembly plants decreased from 1633 in 1993  to 830 in 2002. In order to form the competitive advantages through savings in operating costs in the early 90s of the twentieth century, manufacturers of electrical equipment transferred their scientific, research and development activity to other Asian countries. However, this practice of international marketing eventually led to unwanted leakage of technology and loss of competitiveness, which forced the management segment the production into domestic and foreign operations in order to expand its presence in Asia and simultaneously prevent the occurrence of adverse side effects. In addition to automation, keeping technological processes in the "black boxes" and strengthening of corporate affairs to protect patented technologies, the manufacturers of electrical equipment opened domestic plants in 2003 again in order to maintain control over critical processes. It meant the development of a new phase in the efficient allocation of corporate resources in Japan and in the whole region, which allowed to bring some manufacturing operations back to Japan. Re-opening of factories in Japan was partly due to the desire to compete in global business. The electrical industry was the first branch, which had to deal with the problem of leakage of technology. The material flows at the international level changed due to the placement of their own technologies and production processes in "black boxes" and moving the production back to Japan. Segmentation makes it possible to better understand and cater for the needs of consumers, focusing limited resources on the most advantageous ways of their use. For example, in 2011 German concern BOSCH offers motorists a new series of panels whose design involves the latest technological achievements - fully serviced battery BOSCH SILVER. The peculiarity of these batteries is that batteries of BOSCH SILVER series include more than 30 types of batteries designed for 95% of the Ukrainian car market. The success of the world's leading companies shows that segmentation means constant monitoring of market, consumers and their needs. These companies use segmentation as part of the strategic planning process, because the chosen strategy of segmentation influences the decision making processes concerning commodity, pricing, marketing and communication policy.  

FACTORS OF SUCCESS IN THE SEGMENTATION MANAGEMENT ON INTERNATIONAL MARKETS

http://ir.nmu.org.ua//bitstream/123456789/2421/1/FACTORS%20OF%20SUCCESS%20IN%20THE%20SEGMENTATION%20MANAGEMENT%20ON%20INTERNATIONAL%20MARKETS.pdf

FACTORS OF SUCCESS IN THE SEGMENTATION MANAGEMENT ON INTERNATIONAL MARKETS

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