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In order to effectively select which customers to target, companies use four methods – raked segmentation, identifying target market, differentiation, and positioning (KETTLE 2009). Marketing segmentation Is used a company to split Its potential market Into categories (KETTLE 2009). This can be done in a variety of ways, based on numerous factors, including demographic, geographic, and cryptographic (KETTLE 2009). McDonald’s’ uses a variety of these.
It segments according to demographics, particularly age groups, focusing on children, youth, and families, recognizing that children have a large Impact on what food barnacles buy (Love and Saxons 2009). McDonald’s also segments geographically, taking note of cultural barriers in any location where it sets up. This is evident in places like India, where it has traded its commonly used meats such as beef and bacon for more culturally friendly meats Like chicken and lamb (Love and Saxons 2009).
The purpose of a target market is to show a company which segment is most likely to buy their product, and so reveals who to aim the marketing at (KETTLE 2009). It is obvious that children are a mall target audience of McDonald’s, particularly through the measures that McDonald’s’ takes to appeal to them. In 1974, McDonald’s launched n initiative which would serve to entice children all around the world for years to come – the ‘Happy Meal’ (Love and Saxons 2009).
Products such as this, which Includes toys, the playground, and the introduction of hosting children’s ‘McDonald’s’ parties’ greatly contributed to the image of McDonald’s as being for children. Furthermore, McDonald’s not only entices children, but the whole family, with its emphasis on low price, convenience and family fun in ad campaigns in recent years (Greece & Mailman, 1995). Differentiation of market is a strategy which McDonald’s prides itself in achieving to a 1 OFF wrought its continued innovation, and has set itself up as the epitomical fast food outlet (KETTLE 2009).
McDonald’s differentiated itself from the beginning, by creating a fun family environment through the introduction of mascots such as Ronald McDonald, and also a playground at each store for the kids (Love and Saxons 2009). Through its advertising it pushed this concept by creating an aura about the brand – if children were to eat out, the only logical option was to be McDonald’s (Sutherland & Sylvester, 2000). Positioning is a vital strategy within the marketing scheme, and one which McDonald’s sakes very seriously (KETTLE 2009).
It is all about setting up an image the resonates with consumers; that through purchasing the product of the company the consumer believes that in some way or another they are achieving a positive outcome. The main initiative which is endorsed by McDonald’s to this end is the charity called ‘The Ronald McDonald House’ which uses funds from donations which McDonald’s collects to support the local communities of each branch (fetishes. Typed. Mom 2008). Associations with positive deeds such as this assist McDonald’s in creating positive receptions in consumers’ minds, which in turn renders them to have more positive feelings towards McDonald’s, and so enables them to be more willing to spend. Management Orientation McDonald’s attempts to market its product in such a way that it appeals to everyone. Its campaigns preach fun, value, and diversity, and in this way it draws everyone in.
McDonald’s adopts the perfect attitude of management orientation, which is the customer is king, which is communicated through the marketing concept (Rich Totem 2008). McDonald’s promotes itself through its treatment of its customers – promising hem the best quality, value and diversity of products. McDonald’s was previously known for its propagation of unhealthy foods, but now has introduced various healthier substitutes – an example of the diversity and choice that McDonald’s customers are presented with (Brett Whinier 2005).