P5 Segmentation
Explain how and why different groups of customers are targeted for selected products at McDonalds (P5).
• Describe segmentation • Explain demographics, Geographic’s, psychographics and why companies use these methods to segment the market effectively • Explain different methods used to segment markets e.g. ACORN, Mosaic • Explain the different target markets of McDonalds – identify 4 product ranges and describe in detail the target market for each product • Describe the different needs of each target segment • Use examples specific to McDonalds
Segmentation
Market segmentation is where marketers split the market into groups with similarities that would make it easy to target their product to the consumers, if they do not do this then they could waste money and time on targeting the wrong people. The company would be trying to maximise their sales so that they can gain as much money as possible. Using market segmentation could mean a business could gain a commercial advantage as they would be advertising to a specific audience, they would be matching target audience and the product effectively.
Demographics are where the companies target market would be to a group because of their Gender, age, race/nationality, family size, occupation and education. For example McDonalds advertise happy meals to children because they would keep bugging their parents to take them to get them it.
Geographic’s are where the companies target market would be to a group because of where they live, for example an expensive store wouldn’t come to Burnley because most of the residents are working class and don’t have a lot of money.
Psychographics are where the companies target market would be to a group because of personality, lifestyle and interests. For example subway would advertise to people with a healthy lifestyle.
These segmentation methods are used to split up the market so business can find the perfect target market, if companies didn’t use these
• Describe segmentation • Explain demographics, Geographic’s, psychographics and why companies use these methods to segment the market effectively • Explain different methods used to segment markets e.g. ACORN, Mosaic • Explain the different target markets of McDonalds – identify 4 product ranges and describe in detail the target market for each product • Describe the different needs of each target segment • Use examples specific to McDonalds
Segmentation
Market segmentation is where marketers split the market into groups with similarities that would make it easy to target their product to the consumers, if they do not do this then they could waste money and time on targeting the wrong people. The company would be trying to maximise their sales so that they can gain as much money as possible. Using market segmentation could mean a business could gain a commercial advantage as they would be advertising to a specific audience, they would be matching target audience and the product effectively.
Demographics are where the companies target market would be to a group because of their Gender, age, race/nationality, family size, occupation and education. For example McDonalds advertise happy meals to children because they would keep bugging their parents to take them to get them it.
Geographic’s are where the companies target market would be to a group because of where they live, for example an expensive store wouldn’t come to Burnley because most of the residents are working class and don’t have a lot of money.
Psychographics are where the companies target market would be to a group because of personality, lifestyle and interests. For example subway would advertise to people with a healthy lifestyle.
These segmentation methods are used to split up the market so business can find the perfect target market, if companies didn’t use these