The market segmentation approaches MD could use besides age/generational segmentation. Introduction: MD is a fast food outlet primarily offering burgers and targets the millennial segment of the market. It had made its name because it had world class supply chain along with a fast process of preparation of burgers available at lower prices. It is the biggest player in the burger and fries segment but in the last decade it began losing its customers significantly to other competitors in the market who focused more on fresh food. Its CEO made certain changes to address the priorities of the millennial segment like using fresh ingredients and introducing new customizable range of burgers. These changes were welcomed by the millennial segment along with some other changes in décor, self-service, etc. Not all changes were welcomed in the similar manner, some back fired too. But it has seen improvements in its profits after making such changes and is hoping to understand and respond to the preferences of the customers in a much better way. Besides using age/generational market segmentation, MD could use the following segmentation approaches- Geographical segmentation It could segment the population based upon the location of the customers. They can be segmented into different categories country-wise or region-wise. Demographic segmentation Customers can be segmented on the basis of income into lower income, middle income and higher income groups, or on the basis of their occupation as students or professionals. These income groups can be offered products as per their purchasing power . For example- premium products can be offered to the high income groups and affordable burgers could be introduced for middle income groups. Different products can be offered to students and professionals based upon their preferences. Psychographic segmentation Customers can be segmented as per their tastes and religious beliefs. Customers who consider beef eating as not a part of their religion, can be offered vegetarian options so that their sentiments are not hurt.

MARKETING:REAL PEOPLE,REAL CHOICES

10th Edition

ISBN: 9780135199893

Author: Solomon

Publisher: RENT PEARS

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Purchase Process

Purchasing refers to the act of procurement of products or services from a market of resources. The procedures used to accomplish the acquisition of the requisite resources are referred to as the purchasing process. Consumer behavior, customer strategy, …

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Chapter 7, Problem 36C

Chapter 7, Problem 38C

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Solution Summary: The author explains that MD is a fast food outlet primarily offering burgers and targets the millennial segment of the market.

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