Introduction

The process of marketing involves three key functions viz.

market segmentation, targeting, and market positioning.
Marketing segmentation concept is closely connected with the
marketing mix. Market segmentation involves identifying the
basis on which market needs to be segmented. Targeting
involves selecting the target for segmentation. Positioning
involves developing position to target the segments. Market
segmentation is about aggregating prospective buyers into
groups that have common needs. The groups that result from
market segmentation are called market segments.

Meaning / what is marketing

segmentation? :
Markets consist of buyers, and most often than not,
these buyers have heterogeneous preferences. Thus, it is
impossible for an organization to serve all these buyers with
varied needs. Therefore, the notion of market segmentation is
introduced. Market segmentation involves the process of
identifying segmentation variables, or bases, and developing
profiles of resulting segments. By going after segments instead
of the whole market, companies have a better chance to deliver
value to consumers and to receive rewards for close attention
to consumer needs.
Compaq, IBM and IPC are multinational companies
that have branches worldwide. This is evident from their
websites that cater to people from different countries. Compaq
serves over 40 countries including Japan, Korea, Sweden, the
United Kingdom, and the United States, just to name a few.
IBM, on the other hand, provides service to more than 60
countries in the world. Its customers are from Chile, South
Africa, Taiwan, the United Kingdom, the United States, and
the list goes on. IPC, a local firm, also serves no less than 30
countries overseas: Thailand, China, Germany, India, the
United Kingdom, the United States, etceteras.
One marketing mix for all segments will not be effective
and for introducing different marketing mixes, segmentation is
a basic requirement.
Market segmentation means dividing the total market into
different sub markets that have similar characteristics with
reference to consumers. The individual buyers within each
segment are similar in regard to their wants, expectations and
buying power and marketing programme will be drawn for
each group in order to enhance consumer satisfaction and
sales promotion. This approach of market segmentation is
better as compared to the approach of treating the entire
market for a product as one entity and use only one marketing
mix for the market (market aggregation / mass marketing
approach). Market segmentation is a new consumer - oriented
philosophy and is consistent with modern marketing concept
which is consumer – oriented. This promotes sales and also
offers more satisfaction to buyers of that group. Here, the
producer employs a ‘rifle’ approach and not the “shotgun”
approach. This means he pinpoints the target (customers
group) and draws specific plan to meet their needs rather than
fixing broad target (all customers) and preparing one general
plan (marketing mix) to meet the needs of all customers. it is
an accepted fact that markets are not homogenous.

Definition of market segmentation:

 “The act of dividing a market into distinct groups of
buyers who might require separate products and / or
marketing mixes”.
----- Philip kotler.

“Marketing segmentation in the process of dividing the

total heterogeneous market for a good or service into several
segments, each of which tends to be homogenous in all
significant aspects.”
-------- William J. Stanton.

Features of Market Segmentation:

a) Segmentation means dividing total market:

Market segmentation means dividing the total market
into small parts / segments on certain well defined bases for
marketing.
b) Objectives of segmentations:
The objectives of market segmentation are: sales
promotion, consumer satisfaction and achieving marketing
objectives / targets.
c) Facilitates Sales promotion:
Segmentations facilities the introductions of suitable
marketing mix for each segment to promote sales in each
segment.
d) Desegregating Process:
Segmentation is the process of dividing the total
market into a number of sub-markets for efficient marketing.
Here, heterogeneous market is broken into a number of
relatively homogenous sub-markets.
e) Facilitates combination of 4Ps:
 Segmentation is useful for selecting target market is
broken and promotion sales in that specific market by using
an appropriate combination of 4Ps.
f) Operates as combinations of 4Ps:
Market segmentation is better than market
aggregation as the current marketing trend is shifting from
mass marketing strategy to target marketing strategy.

Objectives / Needs of Market

Segmentation / Why Markets Are
Segmented:

a. To select most suitable market segment and to prepare

appropriate marketing strategy / programme for
selected segment.
b. To promote sales and also to offer convenience and
satisfaction to consumers.
c. To make the marketing activity consumer-oriented.
d. To find out new convenient and promising markets for
marketing company’s products.
e. To study purchase potential of buyers and to exploit it
fully through appropriate marketing mix.

Procedure of / step in market

segmentation:

 Survey of existing market: the market segmentation

procedure begins with the survey of existing total market
in order to find out the necessary information with the
consumers, market competition etc. the researcher can
 allocate necessary information with the help of
questionnaire, actual visit to the market and by referring
to different reports and surveys published.
 Scrutiny of marketing information: after survey and data
collection, the researcher has to analyze the data in
order to draw conclusion and also to form a number of
suitable segments for framing marketing strategies.
 Cluster profiling: in this stage each cluster is profilied in
terms of its distinctive features. Such features are noted
as per certain variables like demography.
 Selection of promising segment: in this stage, specific
segment which offers higher potential and is convenient
from the marketing point of view is selected. This
segment will be treated as target market for marketing
purpose.
Finalizing appropriate marketing mix: after the selection
of segment, the firm will have to decide the marketing mix

Reasons for Market Segmentation:

As already stated, segmentation is the basis for
developing targeted and effective marketing plans.
Furthermore, analysis of market segments enables decisions
about intensity of marketing activities in particular segments.
 A segment-orientated marketing approach generally
offers a range of advantages for both, businesses and
customers.

Better serving customers needs and wants

It is possible to satisfy a variety of customer needs with a
limited product range by using different forms, bundles,
incentives and promotional activities. The computer
manufacturer Dell, for instance, does not organize its website
by product groups (desktops, notebooks, servers, printers etc),
but by customer groups (privates, small businesses, large
businesses, public/state organizations). They offer the same
products to all customer groups. Nevertheless, they suggest
product bundles and supporting services that are individually
tailored for the needs of each particular group. As an example,
Dell offers to take on all IT-administration for companies. This
service provides a huge potential for savings for corporate
customers. However, it would be absolutely useless for private
customers. Thus, segment-specific product bundles increase
chances for cross selling.

Higher Profits
It is often difficult to increase prices for the whole market.
Nevertheless, it is possible to develop premium segments in
which customers accept a higher price level. Such segments
could be distinguished from the mass market by features like
additional services, exclusive points of sale, product variations
and the like. A typical segment-based price variation is by
region. The generally higher price level in big cities is
evidence for this.
When differentiating prices by segments, organizations have to
take care that there is no chance for cannibalization between
high-priced products with high margins and budget offers in
different segments. This risk is the higher, the less
distinguished the segments are.

Opportunities for Growth

Targeted marketing plans for particular segments allow to
individually approach customer groups that otherwise would
look out for specialized niche players. By segmenting markets,
organizations can create their own ‘niche products’ and thus
attract additional customer groups.
Moreover, a segmentation strategy that is based on customer
loyalty (see loyalty ladder model) offers the chance to attract
new customers with starter products and to move these
customers on to premium products.

Sustainable customer relationships in all phases of customer life cycle

Customers change their preferences and patterns of behavior
over time. Organizations that serve different segments along a
customer’s life cycle can guide their customers from stage to
stage by always offering them a special solution for their
particular needs.
For example, many car manufacturers offer a product range
that caters for the needs of all phases of a customer life cycle:
first car for early twins, fun-car for young professionals,
family car for young families, etc. Skin care cosmetics brands
often offer special series for babies, teens, normal skin, and
elder skin.

Targeted communication
It is necessary to communicate in a segment-specific way even
if product features and brand identity are identical in all
market segments. Such a targeted communications allows to
stress those criteria that are most relevant for each particular
segment (e.g. price vs. reliability vs. prestige).

Stimulating Innovation
An undifferentiated marketing strategy that targets at all
customers in the total market necessarily reduces customers’
preferences to the smallest common basis. Segmentations
provide information about smaller units in the total market
that share particular needs. Only the identification of these
needs enables a planned development of new or improved
products that better meet the wishes of these customer groups.
If a product meets and exceeds a customer’s expectations by
adding superior value, the customers normally is willing to
pay a higher price for that product. Thus, profit margins and
profitability of the innovating organizations increase.
Higher Market Shares
In contrast to an undifferentiated marketing strategy,
segmentation supports the development of niche strategies.
Thus marketing activities can be targeted at highly attractive
market segments in the beginning. Market leadership in
selected segments improves the competitive position of the
whole organization in its relationship with suppliers, channel
partners and customers. It strengthens the brand and ensures
profitability. On that basis, organizations have better chances
to increase their market shares in the overall market.
Measurability of the base for segmentation:
Different variables such as age, social status and
purchasing power are used for market segmentation. Such
variables must be clearly measurable for dividing the
consumers.
Heterogeneity of consumers:
Consumers purchasing a product should not have
uniform features as segmentation will not be possible if
uniformity exists among the consumers. Heterogeneity as
regards income, social status, cultural backgrounds, likes and
dislikes is useful for rational segmentation of consumers into
different groups.
Easy accessibility:
Market segment selected for use should be easily
accessible to the market firm. The marketing mix can be used
effectively only when the segment selected is easily
approachable through advertising, sales promotion, better
quality products and so on. The segment which is not easily
accessible may not give expected results.
Criteria for Market Segmentation:
There are a huge number of variables that could be used for
market segmentation in theory. They comprise easy to
determine demographic factors as well as variables on user
behavior or customer preferences. In addition, there are
differences between private customers and businesses. . The
outcome of the segmentation process should yield "true market
segments" which meet five criteria, hence following table
shows the most important traditional variables for
segmentation.
Kotler mentions five criteria for an effective segmentation:
Measurable: It has to be possible to determine the values of
the variables used for segmentation with justifiable efforts.
This is important especially for demographic and
geographic variables. For an organization with direct sales
(without intermediaries), the own customer database could
deliver valuable information on buying behavior (frequency,
volume, product groups, mode of payment etc).
Relevant: The size and profit potential of a market segment
have to be large enough to economically justify separate
marketing activities for this segment.
Accessible: The segment has to be accessible and servable for
the organization. That means, for instance, that there are
target-group specific advertising media, as magazines or
websites the target audience likes to use.
Distinguishable: The market segments have to be that diverse
that they show different reactions to different marketing
mixes.
Feasible: It has to be possible to approach each segment with
a particular marketing program and to draw advantages
from that.

Bases of market segmentation (consumer

market):
Consumer goods market may be segmented by using any
one of the following variables / bases:

Major Segmentation Varialbles

of Consumer Market

Geographic Demographic Psychographic

Segmentation Segmentation Segmentation

Behavioral
Segmentation
1) Geographic segmentation:

Geographic
Segmentation

Region

City or
Metro Size

Climate

Density

In geographic segmentation, the market is divided

into different geographical entities such as states, districts,
cities, and taluka places. Geographic segmentation is
possible by using region (area) or climate as basic
variables. Here, the assumption that consumer needs and
responses vary geographically. Different market location
have different costs, demand and other features which
formulating an appropriate marketing strategy. In
geographic base, regional differences in terms of
topography, climate, and its density are used as base for
market segmentation.
Geographic segmentation is commonly used for the
preparation of marketing plan and also for the allocation of
territories to salesman or distributors. Most of the national
level manufacturers split up their sales area either state
wise or district wise. In India geographic segmentation is
possible on certain considerations such as rural-urban
climate, areas covered by states and so on.

2) Demographic segmentation:
 Demographic
Segmentation

Age Education

Family Religion
Size
Family Life
Cycle Race

Gender Generation

Income Nationality

Occupation Social
Class

In demographic segmentation, demographic

variables such as age of the customer group, sex, family
size, family life cycle, income, expenditure pattern,
occupation, education, language, religion, race, nationality
and rural-urban base are used for the segmentation of
market. Demographic variables are used extensively for
market segmentation as the base for segmentation is clear
and easy to use. Required data for demographic
segmentation are easily available in census reports and
other published reports.
HMT (public sector undertaking) have segmented its
market on the basis of sex and are manufacturing separate
wrist watches for male and female buyers. Watches of
different prices in both the categories are brought in the
market. Producers of confectionaries (biscuits etc.) segment
their markets on the basis of age. The same is the need
special models and manufacturers adjust their production to
suit female customers, small children, youth and so on.
India, population base is used extensively for market
segmentation.
Demographic segmentation is important as the
nature of demand is closely related to various demographic
variables particularly income levels of customers.

3) Socio-economic segmentation:

In the socio-economic segmentation, differences

amongst population in terms of income-consumption levels,
castes, communities, religion, and others cultural aspects
are taken as variables for dividing the consumers in
different the consumers in different groups. The population
is differentiated for marketing efforts on these
considerations. In India, such segmentation is necessary as
the society is divided into different groups on socio-
economic-cultural factors. In India, people have different
cultural background. Naturally, suitable segmentation for
the purpose of marketing is useful.
Socio-economic segmentation is used extensively as
information in this regard is more easily available. The
lower class, middle class, working (labour) class is one
example of economics classification. Here, ability to pay is
the consideration for segmentation and is used extensively
by many manufacturers.
4) Psychographic segmentation:

Psychographic
Segmentation

Social Class Lifestyle Personality

Upper Self-Confident
Smokers
Class

Middle Impulsive
Class Defiant

Lower Status -
Casual
Class Conscious

Careful

In psychographic segmentation, certain

psychographic variables such as social class and social
status, life-styles or personality characteristics are used for
segmentation. Manufactures of cars, textiles and home
furnishings divide their customers on the basis of life-
styles. Such segmentation is also possible on the basis of
reading habits and leisure activities. Marketing efforts are
adjusted according to such variables.
In the case of psychographic variables, relevant
information for segmentation is not readily available and
has to be collected through behavioral research. Moreover,
segmentation on psychographic variables is complicated as
it is always difficult to expose individuals to a battery of
psychographic tests and to find out their specific personality
traits. In addition, consumers behave / react differently from
what they say.
Some examples of psychographic segmentation are:

 On the basis of social class: upper class, upper middle,

lower middle, etc.
 On the basis of personality: self-confidence, ambitious,
aggressive, sociable etc.
 On the basis of life-style: liberal, conservative, religious,
health and fitness conscious.

5) Behaviorist segmentation:
 Behavioral
Segmentation

Benefits Usage
Rate

Use Occasions Loyalty

Life Cycle
Readiness
Events Stage

User
Status Attitude

In the behaviouristic segmentation, the buyers are

grouped on the basis of their knowledge, user status,
loyalty, pattern, attitudes and response to the product. This
is useful in order to find out what role price / package /
colour / service can play in influencing buying decisions.
This regular segmentation is also called product related
segmentation as the response of consumers is used as base
for grouping of consumers into different convenient groups
for marketing purpose. In India, the supply of consumer
items, electronic goods, two-wheelers, cosmetics such as
ladies spray perfume or agents’ after –shave lotion, etc. is
fast increasing. The incomes of people of all categories are
also increasing. People are willing to spend more on goods
and services. This creates proper background for
 behaviouristic segmentation of buyers for marketing
purpose.
6) Segmentation as per marketing:
In the marketing conditions segmentation, the
variables used for grouping of markets are like the kind and
availability of distribution of channels and the intensity of
competition. Different channels of distribution are used for
large scale distribution of goods, particularly consumer
goods. Similarly the intensity of the competition is more in
certain areas like big cities and less in rural/ remote areas.
The market segment where competition is intense, the
marketing programme will be at variance with the segment
where the competition is less intense. Similarly, the
marketing efforts will be comparatively easy to introduce
where the distribution channels are easily and economically
available than the one where they are not.
7) Segmentation as per marketing conditions:
In the volume of purchase segmentation, the
quantity of purchase or the potential quantity of purchase is
taken as a base for segmentation. Here, the buyers will be
classified as bulk buyers, retail buyers, regular buyers and
one time buyers. The features of these groups can be used
for adjusting marketing programmes meant for them.

Conclusion:
 The bases of market segmentation explained above
need not be treated as exhaustive. It is possible to group
consumer markets into more categories for the purpose of
marketing. It is also possible to use two factors jointly for
purpose of segmentation. After all, markets segmentation is
a means and not the end in itself. Segmentation is for the
convenience of producer in his marketing effort. It is for
consumer satisfaction and also for raising the sales and
profitability of marketing effort. After segmentation the
market, the producer has to study the features of each
segment as well as the potential and actual competition in
each segment. Thereafter, he has to select one or more
target markets (segments) for concentration his marketing
efforts. Thus, target market prepares proper background for
the effective use of “Four Ps” i.e. the product, the price, the
promotion and the channel of distribution. This can be
proved my following figure:

product

Product P ri c e

place
distribution

Market targeting
 Target Marketing involves breaking a market into segments
and then concentrating your marketing efforts on one or a few
key segments.
Target marketing can be the key to a small business’s success.
The beauty of target marketing is that it makes the promotion,
pricing and distribution of your products and/or services
easier and more cost-effective. Target marketing provides a
focus to all of your marketing activities.
So if, for instance, I open a catering business offering catering
services in the client’s home, instead of advertising with a
newspaper insert that goes out to everyone, I could target my
market with a direct mail campaign that went only to
particular residents.
Market targeting is basically the process of evaluating the
attractiveness of each segment identified and consequently
selecting to focus on one or more segments. It is obvious that
Compaq, IBM and IPC have chosen to target at multiple
segments. They practice differentiated marketing in which the
firms design different programs for each segment. Compaq has
products and services tailored to satisfy the needs of the
diversified customer base. IBM offers many hardware and
software packages for different segments in the computer
market. IPC has different programs catered for people in
different regions. Generally, differentiated marketing
generates more total sales than undifferentiated marketing.
Specifically, the advantages of target marketing are:
Marketing opportunities and unfilled ‘gaps’ in a market may
be more accurately appraised and identified. Such gaps can be
real (e.g. sweet, strong, harsh or mild) or they can be
illusionary in terms of the way people want to view the product
(e.g. happy, aloof, silly or moody). In the case of the former,
product attributes can fulfill these criteria whereas for the
latter these attributes might well have to be implanted in the
minds of customers through an appropriate advertising
message. Market and product appeals through manipulation of
the marketing mix can be more delicately tuned to the needs of
the potential customer.
Marketing effort can be concentrated on the market segment(s)
which offer the greatest potential for the company to achieve
its goals - be they goals to maximize profit potential or to
secure the best long-term position for the product or any other
appropriate goal.

Evaluating Market Segments:

This is part of
marketing strategy --
evaluating business
opportunities in the
context of what
resources we have to
commit and what we
want to do. It links
directly to Strategy.

Selecting Target Segments:

 Focuses on what
consumers have in
common rather than
Undifferentiated Marketing
(Mass Marketing)
what's different. The
original Coca-Cola
was marketed to
everyone.

Prepares many
separate offerings for
many different
markets. Coca-Cola
Differentiated Marketing today offers dozens of
(Segmented Marketing) different kinds of coke,
including this one that
I drank safely when I
was pregnant - no
caffeine, no sugar.

A product for one

small group. The
Concentrated Marketing drink Clearly
(Niche Marketing) Canadian is aimed at
a very small target
market.

One special bottled

drink for one special
person or group. A soft
drink manufacturer
Micro Marketing might bottle a drink in
(Local or Individual a special memorial
Marketing) bottle for a local high
school to sell at a fund-
raising event. This
would be micro-
marketing.

More on Levels of Market Segmentation:

 Henry Ford offered any
Mass Marketing colour "as long as it's Undifferentiated
black"

GM offers a different kind

Segment
of car for all kinds of Differentiated
Marketing different people

Ferrari is something special

Niche Marketing for a very small special Concentrated
group

Micromarketing
Something special just for Local or
- Local and 1-on-1 you, yes, just you! Individual
Individual
 Market Positioning

After segmenting a market and then targeting a consumer, one

proceeds to position a product within that market. Positioning
is all about 'perception'. As perception differs from person to
person, so do the results of the positioning exercise. For
example, what you perceive as quality, value for money, etc, is
different to someone else's perception.

Choosing a Positioning Strategy:

In the positioning task, the important thing in the real world is
to know what dimensions of your product are most important
to the consumer and to concentrate on those. A positioning
map with price and quality is obvious; try to think of one that
is particular to your product class. Don't waste time on
unrealistic strategies -- we'll make the highest quality
thingamajig and sell it at rock bottom prices. Think
realistically. Below are some common dimensions for some
common consumer products.

Shampoo
dandruff control - harsh or light
perfume level
conditioner included or not

Beer
high or low calorie
dark or light
domestic or imported
brand name or store brand
Watch
sporty versus dress
gadget-ridden or simplicity itself
level of accuracy
(does a 3-year-old need a watch
accurate to a millisecond?)

Furniture
sturdy, long lasting
antique or contemporary
heavy or light
service level
delivery options

Dog beds
warmth, portability, ease of washing
price may not be a particularly
important variable -
how much is the doting owner willing
to pay?
Positioning maps:
Products or services are 'positioning map'. This allows them to
be compared and contrasted in relation to each other.
Marketers decide upon a competitive position which enables
them to distinguish their own products from the offerings of
their competition (hence the term 'positioning strategy').

The marketer would draw out the map and decide upon a label
for each axis. They could be price (variable one) and quality
(variable two), or Comfort (variable one) and price (variable
two). The individual products are then mapped out next to
each other any gaps could be regarded as possible areas for
new products.
Six-step template for successful
positioning:
1. What position do you currently own?
2. What position do you want to own?
3. Whom you have to defeat to own the position you want.
4. Do you have the resources to do it?
5. Can you persist until you get there?
6. Are your tactics supporting the positioning objective you
set?
Case study:

McDonald’s: ‘I’m lovin’ it’

McDonald’s adds love with new global theme – B&T

Marketing & Media, 13/6/2003.
McDonald’s unveils new global campaign – B&T Marketing
& Media, 3/9/2003.
On September 21, 2003, McDonald’s aired its new global ‘I’m
lovin’ it’ ad campaign in Australia. This is the first time that
McDonald’s has run a single set of commercials concurrently
in over 100 countries around the world, and represents part of
a major brand revival strategy for the fast food giant.
McDonald’s also unveiled pop performer Justin Timberlake as
the star of this new global campaign. Timberlake was chosen
because he ‘is absolutely connected to today’s consumer
attitudes and trends. His cultural relevance is right in tune
with McDonald’s new direction,’ says Larry Light,
McDonald’s executive vice president and global marketing
chief. McDonald’s aims to rejuvenate the company’s brand
strength with new and innovative ways using a campaign that
is fun and exciting and bound to appeal to customers
worldwide. With plans to sponsor Justin Timberlake’s 35-city
2003 European Tour, which starts in Germany later in the
year, McDonald’s will no doubt connect with its all-important
‘young adults and kids’ consumer segment. But what are the
implications of using such a celebrity as the face of
McDonald’s? When so many Australians are battling with
issues of obesity, will such a marketing pull create more health
issues for kids and young adults?
TALKING IT OVER AND THINKING IT THROUGH!
1. What is positioning?
2. How should a company decide on a positioning strategy?
How McDonald has’s positioned itself in the past?
3. Describe the positioning strategy behind the ‘I’m lovin’
it’ campaign used by McDonald’s.
4. Do you agree or disagree with the use of Justin
Timberlake in McDonald’s advertising campaigns?
Why/why not?
Solution:

(1) In positioning is the technique by which marketers try to

create an image or identity in the minds of their target market
for its product, brand, or organization. It is the 'relative
competitive comparison' their product occupies in a given
market as perceived by the target market.
Positioning is something (perception) that is done in the minds
of the target market.
A product's position is how potential buyers see the product.
Positioning is expressed relative to the position of competitors.
The term was coined in 1969 by Al Ries and Jack Trout in the
paper "Positioning" is a game people play in today’s me-too
market place" in the publication Industrial Marketing.
(2) a) A company should position itself in the market in the
following ways:-
Product Attributes: What are the specific products attributes?
Benefits: What are the benefits to the customers?
Usage Occasions: When / how can the product be used?
Users: Identify a class of users.
Against a Competitor: Positioned directly against a
competitor.
Away from a Competitor: Positioned away from competitor.
Product Classes: Compared to different classes of products.

(b) They were in their 20’s or something, but to keep them

coming back, the fast-food giant employed a multi-faceted
marketing plan that went where the young-adult action is - be
it the beach, pop concerts, or even the after-hours bar scene.
Traditional media won't reach this key demographic,
McDonald's Corp. (MCD) officials have decided, so they're
tapping into iPods and using blogs and other alternative
communications methods to deliver their pitch.
Indeed, the array of attempts to reach young adults is as
varied as McDonald's menu.
Web sites such as www.mcdonaldslatenight.com feature
popular music stars, as well as a way to record one's own
voice. That site also invites young people to sign up for late-
night "text deals" sent to their cellphones.
Other technology-inspired communication: a bar mirror that,
when activated by a motion sensor, shows an ad for
McChicken sandwiches.
Although it carries risks, McDonald's views the bar scene as
an obvious marketing venue for young adults. In Seattle, its
franchisees give bar patrons free rides home on weekends -
perhaps via a McDonald's drive-thru. Drink coasters offering
morning wake-up calls, along with a suggestion that they eat
breakfast at - you guessed it - are another popular ploy.
One bar coaster is aimed at preventing an intoxicated person
from driving. It shows a Double Quarter Pounder hamburger
and asks how many patties the person sees. If he answers
incorrectly, the coaster's backside suggests "Take a cab."
On a lighter note, McDonald's has hired a pair of young
comedians to tour the country this summer in an RV and show
up where 18-to-34s are likely to be. One recent stop:
Chicago's North Beach, for a company-sponsored volleyball
tournament.
It's all part of what McDonald's senior director of U.S.
marketing, Brian O'Mara, says is a significant, ongoing effort
to position the McDonald's brand as "being forever young,
and a little more relevant" to those who grew up on McFood
but no longer meet their friends at PlayPlaces.
"We're trying to be where they're at," O'Mara says. "They're
not typical consumers of media - not watching prime time at
night."
McDonald's sees iPods as an obvious alternative. "Podcasts
are a huge opportunity for us," says Kay Butler, a
Minneapolis-area franchisee who chairs a company committee
on the young-adult market.
But in pursuing a trend-setting consumer group that
represents 23% of the population, the company acknowledges
it must be careful not to "do anything that would be out of
character for McDonald's. We're a family business," O'Mara
says. Moreover, "We know we need to be real and credible to
this consumer. We're not trying to be cool," he adds.
To be sure that it's not going too far, the company uses focus
groups, Internet-based panels and blogging to "keep a pulse
on how they feel about us," O'Mara says. And Butler notes that
"we employ a lot of young adults, so we're able to find out
what works for them."

(3) Superstar Justin Timberlake Featured in English

Language Vocals
September 2, 2003 – (Munich, Germany) – “I’m lovin’
it™.” “ich liebe es™.” This simple expression of pleasure in
everyday life made its way into the vocabulary of McDonald’s
47 million daily customers in more than 100 countries as the
Golden Arches launched its unprecedented worldwide brand
campaign from Munich, Germany. “I’m lovin’ it” was the
centerpiece of a new marketing strategy that connected
McDonald’s with customers in highly relevant, culturally
significant ways around the world. Key to this campaign was
five new cutting-edge, high-energy television commercials that
reflect the lifestyles and attitudes of today’s customers and
culture. Several of the English language spots feature vocals
by 2003 Triple MTV Video Music Award Winner, Justin
Timberlake. The commercials air first in Germany that begun
in September 2, 2003 and roll out worldwide throughout that
month. The U.S. launch was scheduled for September 29. “The
‘I’m lovin’ it’ campaign was unprecedented in McDonald’s
history as more than 100 countries unite behind a single brand
message to our customers,” said Larry Light, McDonald’s
Executive Vice President and Global Chief Marketing Officer.
“It’s much more than just a new tagline or commercials –it’s a
new way of thinking about and expressing our worldwide
brand appeal to the consumer.” The first McDonald’s
worldwide campaign ever produced outside the U.S., “I’m
lovin’ it” was the culmination of a breakthrough “competition
of ideas” held in February among McDonald’s top
international advertising agencies to spark a new brand
attitude and direction. It was created by Heye & Partner, a
longtime McDonald’s agency based in Unterhaching,
Germany, near Munich, and a member of the DDB Worldwide
Communications Group, Inc.
“We challenged our agency partners to put aside everything
they knew about us and come up with fresh, original thinking,
all of it with today’s customers in mind,” said Light. “‘I’m
lovin’ it’ represents the best of what we felt were a number of
outstanding ideas, many of which will be incorporated into
future marketing programs.”

Superstar Justin Timberlake Featured in New Campaign

In addition to singing vocals in the global launch
commercials, Timberlake made cameo appearances
throughout the campaign. He also worked with McDonald’s
on developing new and innovative ways to connect with
today’s culture and young consumers. In addition,
McDonald’s plans to sponsor the Justin Timberlake 2003
European tour, which took place in November in Germany.
“Justin is perfect for the McDonald’s brand and our ‘I’m
lovin’ it’ campaign, which is based on connecting to our
customers in fresh, modern, relevant ways,” said Light.
“That’s what Justin and his music are all about.”
(4) ‘Yes’ we agree with the use of Justin Timberlake in
McDonald’s advertising campaigns because we think that
being today’s one of the best Pop Singers Justin was the right
pick to advertise for McDonalds as it is spread all over the
world and as Justin Timberlake who is also popular in music
and who recently won in 2003 Triple MTV Video Music
Awards. As he was very popular among the kids as well as the
adults. McDonalds used his popularity and they also
sponsored Justin Timberlake’s European in 2003. And as
Larry Light the, McDonald’s Executive Vice President and
Global Chief Marketing Officer said in September 2003 that
“Justin is perfect for the McDonald’s brand and our ‘I’m
lovin’ it’ campaign, which is based on connecting to our
customers in fresh, modern, relevant ways,” said Light.
“That’s what Justin and his music are all about.”
So as the above statement itself describes that Justin
Timberlake was the right choice by McDonalds. And it was not
a wrong decision by them.