Companies use target marketing to make products relevant to various consumers.
Specific segments of the population are identified, and products are positioned to appeal to those segments.
McDonald's Approach
McDonald's uses segmenting as a central part of their marketing strategy.
Unlike traditional consumer packaged goods companies, McDonald's organizes by consumer segments, not brands.
Example: Instead of brand managers for Big Mac or French Fries, McDonald's has segment managers.
Segment Managers include: Director of Young Adults, Director of Women/Moms, Director of African-American Consumers, Director of Hispanic Consumers, etc.
Segment Insights
Segment insights are crucial for accurate target marketing.
Insights are developed through ongoing market research about consumer behavior.
Insights help describe products in a compelling way for specific segments.
Consumer Insights Focus
Insights focus on values, needs, and lifestyles of each segment.
Segment teams create a positioning profile for products based on insights.
Creative teams use these profiles to produce targeted ads.
Example: Southwest Chicken Salad Marketing
General Market: Emphasized the variety of ingredients in the salad.
African-American Consumers: Messaging focused on the salad being a hearty and exciting option.
Hispanic Consumers: Ingredients resonated with cultural and heritage aspects.
Asian Consumers: Variety and new tastes were highlighted in advertising.
Success of Target Marketing for McDonald's
Target marketing has increased overall sales for McDonald’s.
McDonald's employs hundreds to keep consumer information current and relevant.
Insights ensure marketing is compelling and results in business growth.
Conclusion
Understanding consumer segments and tailoring marketing efforts is fundamental to McDonald's strategy.
Ongoing research and consumer insights drive successful marketing campaigns.