Business Studies

Describe methods of marketing segmentation and targeting using a real-word example. Discuss the various market segments for the example you have provided. Explain how each segment is targeted. When possible, include links to relevant marketing content that illustrated the targeting for each segment. In replies to peers, discuss whether you agree or disagree with their assessment of the brand’s market segmentation and targeting.

ANSWER

Methods of Marketing Segmentation and Targeting

Market segmentation and targeting entails recognizing the firm’s prospective consumers and picking the clients to follow as well as generate value for the directed consumers (Dolnicar, Grün, and Leisch, 2018). Psychographic, demographic, geographic, and behavioral segmentation are considered the four marketing segmentation and targeting methods. Demographic segmentation involves the potential grouping of consumers by concentrating on particular traits such as gender, age, earnings, family standing, and occupation. McDonald’s segments into varying groups in the U.S market, such as teenager groups, especially students. They have priced their products to retain the groups of people and offered amenities such as Wi-Fi to attract students.

Psychographic segmentation breaks customers into segments that influence consumers’ buying behaviors, such as lifestyle, values, beliefs, activities, and opinions (Dolnicar, Grün, and Leisch, 2018). McDonald’s greatly values consumers’ patterns of leisure and work and their lifestyle by psychographic approaches. Some consumers come into urban locations between 12 pm and 6 pm as working class trying to grab something for lunch or dinner. Others include individuals who come in between 6 pm, and 12 am, mostly in the evening. Therefore, different groups are drawn by their lifestyle, which means that McDonald’s has to cater to the different lifestyles.

Geographic segmentation entails targeting people who live in a particular location with similar wants, needs, and cultural considerations. McDonald’s is an international fast-food chain. Therefore, McDonald’s must segment in varying regions correctly to maintain its dominance globally. This is done by adjusting menus to suit the preferences of different countries.

Behavioral segmentation entails dividing customers depending on their behavioral patterns in shopping consumers (Dolnicar, Grün, and Leisch, 2018). The behavioral approach has played an essential role in building loyalty among consumers who feel like McDonald’s offers cheaper and better faster foods than its competitors. McDonald’s realized that there are other consumers that value time over cost benefits. These groups have cared less about how much they have saved by eating at McDonald’s but focus on having a meal that offers energy calories for a certain period. Therefore, McDonald’s has developed different services that have satisfied the needs of the consumers.

References

Dolnicar, S., Grün, B., & Leisch, F. (2018). Market segmentation analysis: Understanding it, doing it, and making it useful (p. 324). Springer Nature.