Market segmentation is a business concept that entails the division of the general market of a product into consumer subsets, which are made up of individuals who share similar preferences. Segmentation demands the diversification of the marketing strategy to succinctly address the various needs of the different clients in the market. Companies that engage the market segmentation framework respond to the knowledge that two different individuals cannot a-priori share similar preferences.
McDonald’s comprises one of the major global companies in the world today. The company engages market segmentation in the extension of its services to its large client base. The market segmentation metric engaged by the McDonald’s corporation is age. Essentially, the company extends different advertisements at different times with the intent of capturing the curiosity of individuals who project different ages in the society. McDonald’s company has the Ronald McDonald’s advertisements which majorly target the children. The company also has the quick breakfast advertisements which are intended for the adult customers of the corporation. Therefore, the company engages the psychographic approach to appeal to its diverse customer base.[“Write my essay for me?” Get help here.]
Despite the efficiency of the strategy, there is a need to assess four factors before engaging market segmentation. Firstly, there is a need for the clear identification of the segment to be engaged (Recklies, 2015). Likewise, there is a need for the determination and measurement of the effective size. Accessibility comprises the next factor. The last factor is addressed by the appropriateness of the strategy to the company’s resources and policies. McDonald’s company, through the different advertisements, responds to the diverse nature its customers. [Need an essay writing service? Find help here.]Essentially, one advert clearly targets children while the other targets adult. This is reflective of the clear identification factor. Alternatively, McDonald’s adverts can reach multiple households at once which was inspired by the successful measurement of the effective size. Likewise, the adverts, given that they are projected over the television, embody accessibility. The advertisements are appropriate given that they are family oriented. Furthermore, given its large revenue reserve, McDonald’s can financially support the initiative.
Recklies, D. (2015, February 8). Market Segmentation – Why is it Important? Retrieved October 12, 2016, from The Manager.Org