Marketing Segmentation for Mcdonalds Assignment

Marketing Segmentation for Mcdonalds Assignment Words: 1706

Choose an advertisement of your choice and write your comments according to the following guidelines: 1. What is the main message of the advertisement? (20 marks) The main message of the advertisement is to maintain sales by as follow:- a) To introduce a new product like the Bubur Ayam McD (McDonald’s Chicken Porridge) . b)To announce the modification of the product package like the change of the price by using the McDonald’s coupon and the special offer available during the festival season. c) To catch new customers entering the market for the first time during the festival promotion time. ) The changing needs of the target audience. As people grow in their lives, they have more requirements and purchasing needs. McDonald’s is aware of these changes and aims their messages accordingly. e) The competitive nature of the marketplace. People forget about the McDonald’s products if they are not constantly reminded of the benefits to be obtained from using them. There are many advertisers like the McDonald’s out there trying to attract the same customers or consumers , thus it can be very dangerous if McDonald’s as the advertisers to relax their efforts. ) With the help of the increased sophistication of advertising helps to build and maintain McDonald’s brand name, image and relative values of the poroduct may be lower in the opinion of the customers as perceived by them if McDonald’s does not keep in pace with the competition for advertising. e) McDonald’s products have to be updated and improved as the advances in the technology and the customer expectations could mean that a change in the basic presentation of McDonald’s product is necessary , e. g. the introduction of fast food in the neighbour.

McDonald’s provides efficient service by opening 24 hours a day so that we can dine in our meals whenever we want in. They provide a head start meal with selling a spread of breakfast delights from as early as 4am at cheap prices. The outlets of the McDonald’s are strategic located in convenient places for customers to patron. 2. List the possible objectives of the advertisement. (20 marks) The possible objectives of the advertisement is to inform the customers of the latest promotion and activities or events, persuade them to patronize the restaurants to dine in meals thee and remind them of the latest discounts and special offers.

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The following is the services they provide to attract customer to come and visit their outlets. When food is concerned, they bring in rice into their menu in the restaurant in order to adopt the local culture. For example, Bubur Ayam McD (McDonald’s Chicken Porridge) As for the drive-thru lane, the food McDonald’s implements ‘Made for you’ serving concept , for instance they put certain investments to redesign their old kitchen with the new equipment from the McDonald’s Corp requirement Following the specification of the US standard.

For example, their counter is linked with kitchen. When service is concerned, they set to serve first for the senior citizen and pregnant woman for not caught in the long queue during ordering their meals has to be well-packed within a minute after placing the order. McDonald’s tends to be production-orientation in a situation where the priority of management is given a time frame to increase the efficiency of production and also to increase the rate of output in a time given. As for the marketing-orientation is a more modern way of doing business.

The priority of the McDonald’s management is to focus on the customer needs which emphasis to gain marketing information through research, leading to the analysis of markets to identify target market segments in which the organization can best serve their customers. By having identified a target market, the organization then adjusts its organization and formulates a marketing mix of product, price, place, distribution and promotion so that customers will be provided with the right product, in the right place, at the right time and at the right place.

The basic belief of the marketing-orientated management is that prosperity for the Organization comes from gaining and keeping satisfied customers. Always remember that the customer is king, and the organization exists in order to serve them. 3. Identify the target group of the advertisement. (20 marks) Answer They are the family which order family meals and buys toys for their children, like buying M happy meal there are 6 toys available to collect while stocks last from 25 Oct- 21 Nov 2007. The toy characters is from the Dream Works titled the Bee Movie which will be shown in cinemas by 7 Nov 2007. Under the headline Hot toys in the attached leaflet) Teenagers prefer to have social gatherings and birthday party there, students make use of the environment to discuss their homework after school, high income earners have appointments with customers and associates during their lunchtime or anytime of the day and low income earner will have meal there when they want to have a taste of fast food. We can enjoy a great value breakfast at McDonald’s restaurants from Monday to Friday. ( Under the headline of the attached leaflet ???Hot Weekday Breakfast Special at RM 4**)

We can catch Live screenings of League and Championship football matches at selected 24-hour selected 24-hour restaurant. For match times, visit www. mcdonalds. com or any of the McDonald’s restaurants. (Under the headline of the attached leaflet ??? Come down to Mac tonight, Hot Football Action at our 24-hour restaurants. We can enjoy the Double Spicy Chicken McDeluxe as it double the spice, the Spicy Chicken McDeluxe as we can bite into the crispy, spicy all-time favorite. The Spicy Ayam Goreng McD is the premium quality chicken pieces fried it’s quality.

And the Spicy Chicken McNuggets is the spicy, tender chicken bites can shared with the whole family. ( Under the headline of the attached leaflet ???Hot Sensations! ) The McDonald’s restaurants and the McDonald’s Dessert Centers offers the Cornetto Mcflurry and the Cornetto Sundae with the favour of strawberry and chocolate. (Under the headline of the attached leaflet-Hot Cool Dessrts) 4. Comment on the market segmentation, target segment and positioning strategies used in the advertisement. (20 marks) Answer

In segmentation, targeting and positioning, McDonald’s must identify distinct subsets of customers in the total market for a product where any subset might eventually be selected as a market target, and for which a distinctive marketing mix will be developed. The following represents the sequential steps in conducting segmentation, targeting and positioning exercise for any given product market. 1. Select base(s) for segmentation and identify appropriate market segments. For example, the age target group and the income target group. 2. Evaluate and appraise the market segments resulting from the first step. . Select an overall market targeting strategy. 4. Select specific target segments. 5. Develop a product positioning strategy for each target segment. 6. Develop an appropriate marketing mix for each chosen target segment in order to support the product positioning strategy. The final step in the appraisal of segmentation, targeting and positioning is developing appropriate marketing mixes. This involves the design of marketing programmes which will support the chosen positional strategy in the selected target markets. The company must therefore determine the ‘4 Ps’ of its marketing mix, i. e. hat price, product, distribution (place) and promotional strategies will be necessary to achieve the desired position in the market. Segmentation variables should be examined in detail, especially new segments. These should then be authenticated in terms of viability and potential profit. Targeting investigates specific segments in terms of how they should be approached. Positioning relates to how the product is perceived in the minds of consumers and a suitable marketing mix should then be designed. Geographic segmentation consists of dividing a country into regions that normally represent an individual sales person’s territory.

In bigger companies, these larger regions are then broken down into areas with individual regional manager controlling salespeople in distinct areas. In international marketing, different countries may be deemed to constitute different market segments. 5. Explain the effectiveness of choices of words used in the advertisement. (20 marks) The consumers now prefer to have more choices in their meals and the business time opens round the clock as mentioned in the headline “Serving all day and all night”, prompt the customer to have meals in the morning till night.

A “consumer oriented” advertisement would focus primarily on satisfying consumers’ needs. For instance, identifying and offering products that will satisfy customers need . In order to produce a product that will meet those needs, so that the product will sell by itself. The effectiveness of the advertisement are to increase sales by informing new and existing customers of the products’ existence and also to increase primary demand.

Another effectiveness of the advertisement is to communicate a specific message to A massive selected market in the most cost-effective manner. Some effectiveness of words used in the advertisement are to induce the trial of the product to the consumer or the customer , intensify usage of the product in the market, sustain preference of the product by the consumer, confirm product imagery by locking in memory hook in the consumers’ mindset for example like the capital M for McDonald’s, increase awareness of the product from the target group as being the consumer.

And to build ambience for the place and environment suitable for young ,adult and old to dine in, for instance, the outlets of McDonald’s are strategic located in convenient places for customers to patron. Beside that, the main purpose of advertising are to stimulate demand as most of the advertising is aimed at initiating sales, increasing sales or stemming a decline in sales. It is to create owner ness as this is especially true of new products or new models of the existing products, sales obviously cannot increase if consumers are unaware of the products’ existence.

More over, by reinforcing the consumers’ beliefs to the products as this is to bolster and enhance satisfaction with the purchases that have already made. They serve to alleviate cognitive dissonance or feelings of regret / dissatisfaction of the consumers . Most of all, it is to keep the product in buyers’ minds as a reminder advertisement and is usually used for mature products like McDonalds’.

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