Tuesday, 25 April 2017

Market Segmentation


McDonalds market segmentation in the US:


Mass marketing: here, the seller mass produces, mass distributes, and mass promotes one product to all buyers.  
In the very beginning, McDonalds offered just one type of hamburger to everyone. 
Mass marketing leads to lowest costs and prices and create the largest potential market.

Product-variety marketing: here, the seller produces two or more products that have different features, styles, qualities, sizes…
McDonald’s produced the Big Mac to offer variety to buyers rather than appealing to different market segments. 
Product-variety marketing supports that consumers seek variety and change over time.

Target marketing: here, the seller identifies market segments, selects one or more of them, and develops products and marketing mixes for each. 
 Methods of market segmentation:
Companies may divide the market into different geographic units such as nations, countries, regions, cities…
A company may decide to operate in one or more geographic locations but it must pay attention to the geographical differences in needs and wants.
E.g. McDonald’s serve corn soup in Japan, pasta salads in Rome, wine in Paris...



http://www.mcdonalds.co.jp/ 
Demographics:
Age and life-cycle: needs and wants change with age, that is why, a company may use different marketing approaches for different age and life-cycle groups.
Gender
Income
Psychographic segmentation
This is based on lifestyle
Behavioural segmentation