related to Middle-class definition

 in the context 

of emerging markets through 

the examination of existing 

concepts and empirical 

observations (i.e dicretionary 

consumption , disposable income

 ,NMUM theoretical 

framework etc.)

    

1-Income effect/asset ownership /consumption drive

-Focus on long term migration trends out-looking short term volatility in the process

-Comparison between rising income (and resultant assets ownership ) and spending levels and effect on upward/downward migration process. 

-Comparison between traditional MC and new MC behaviors and correlation with economic crisis and booms

2-formative aspects of middle classness

address psychological and behavioral patterns of consumption related issues by examining 1)quantitative aspects of marketing and spending responses 2)qualitative characteristics of consumption

3-Value aspects of Middle ClassnessMethodology:analysis of MC world view and predispositions

Starbucks has targeted the middle class population of Santa Cruz de la Sierra with something as simple as designing a Starbucks mug for Bolivia that features the country of the city, dark green, rather than the colors of the national flag, as this region of the country has strong views against the national government, and as the article states, this new middle class is diverse and has strong political tendencies.  

 

 

To go above their marketing strategies, they should find additional ways to connect with region, this microsegment, as it varies a lot from the next target location, La Paz. To distinguish marketing in the two cities, a main strategy should involve speaking the language of the people in their adverts and menu items. The inhabitants of La Paz, speak a different dialect than those of Santa Cruz de la Sierra and the adverts in each region should reflect this. In addition, the population of Santa Cruz already has higher coffee consumption than La Paz, so they simply needed to market their brand to this population, but in La Paz, Starbucks will need to market the product, coffee and pastry items, along with their brand itself. 

The colors and dialects portrayed on adverts for each region should reflect the values and lifestyles of each city.  

Middle class is then defined as a group of individuals sharing similar market response patterns and seeking for:

 1-virtual membership to a group

  2-need for self distinction 

3-balance between belongings and spendings

Model – NMTM model creates market segmentation through the aggregation on individual consumers into groups rather than dissecting consumer groups into segments.   

Purpose - “divide a market into distinct groups of buyers” (Armstrong and Kotler, 2005 p54). This facilitates group homogeneity. 

Use – Defining target markets through three set criteria  

Benefits  

Minimizes in group differences (Mahajan and Jain 1978) reducing the margin of the study error 

Makes it easier to develop a homogenous research segment by identifying the individual consumer across different borderlines. 

Limitations  

Allocation of marketing resources and activities to form a uniform segmentation across countries specifically those where digital data is difficult to retrieve 

Time consuming to identify and develop a homogenous group across countries for the research purposes 

Isolate larger potential markets or groups 

Implication for marketers  

Approach can aid organisations in focusing on improving their efficiency and making a bigger impact on the consumer through the firms marketing programme to middle class consumer (Mahajan and Jain 1978)