Segmenting and Targeting Markets

This chapter focused a lot on market segmenting. A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. We get these market segments from the process of dividing a market into meaningful relatively similar and identifiable segments or group. This is known as market segmentation. This is important because it helps marketers define customer need sand wants more precisely. According to this chapter market segmentation plays a key role in the marketing strategy for almost all major organizations. I believe this because to sell well you have to communicate with your customers and you can't do that if you don't them. That's why market segmentation is so essential; it helps you to know your customers better.

There are five types of segments to categorize people in known as the segmentation bases. The first is geographic segmentation which is segmenting by region of the world, market size, market density or climate. The next is benefit segmentation. This is the process of grouping customers into market segments according to the benefits they seek from products. The third is Usage-Rate segmentation which is dividing a market by the amount of product bought or consumed. To bring McDonald's back into relevance I will explain the next two with my company because those are the two types it uses.


                                    Psychographic segmentation

Psychograpchic segmentation is based on personality, motives, lifestyles, and geodemographics. McDonald's shows that they really care and know their customers because, they even went as far to this in another country. McDonald's has adopted itself according to the convenience and lifestyle of the Indian consumers, as India has a huge vegetarian population so McDonald's came up with a different and new product line which includes items like Mc Veggie burger and Mc Aloo tikki Burger. They also made McDonald's as a place to relax and even for entertainment. 

                                     Demographic Segmentation

Demographic segmentation is segmenting markets by age, gender, income, ethnic background, and family life cycle. "McDonald's offers different products like Happy Meal which includes a free toy for kids. For families it has made different outlets and meals which are suitable for takeaways and drive-thru. McDonald's has made its environment which is suitable for students of school to hang out with their friends and can get their lunch at McDonald's."