McSegments

By Alejandra Leon

When Ray Kroc took over a restaurant business from the McDonald brothers, he realized that kids were his target market.

No sooner had Kroc acquired the company than Ronald McDonald the clown was brought in to attract children to his restaurants. His insight would result in the creation of a billion dollar empire.

Kroc’s genius is that he understood his audience and identified the two main segments that would drive his business: working- and middle-class children and their parents.

The company has come a long way since the days of Ray Kroc. The global fast food giant has grown immensely over the decades thanks in part to its unique targeting ability and innovative implementation tactics.

An example of this was the launch in 1979 of Happy Meal in the United States. The meal-plus-toy packaging was an instant hit that became an American icon and still accounts for a large percentage of all McDonald’s meals sold today.

Following an IMC approach, McDonald's has gotten to know its customers and has built its advertising strategy around it. The company knows that by targeting families, it’s tapping into one of the most attractive consumer groups. As marketing and brand strategist Martin Lindstrom states: “It gets into the parents' wallets via the kids' minds.”

Though very effective, McSegmentation has become the focus of controversy regarding the company’s targeting efforts. The fact that children play such an important role in the purchasing decision has raised many questions concerning the ethical repercussions and regulations of targeting and advertising to children.

There are several reasons why McDonald’s is the number one fast food restaurant in the world, and as stated above, a very important one has been its ability to understand its customers, segment them and reach the heart of its targets. Whether the company should or shouldn’t be allowed to continue pursuing children is still up for debate.

Should children be the main consumer target for companies?

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Alejandra Leon is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She isn't ashamed to admit that she finds comfort in a McNuggets meal to brighten a hard day. Alejandra can be reached at alejandraleon2010@u.northwestern.edu.

The future of shopping

By Alejandra Leon

Retail therapy is a common getaway after a hectic day at work. And while many consumers love the experience of shopping, time is limited. There are only so many minutes to go to a store, find items you like and perhaps wait for a dressing room to then try endless clothing options on. After a while, it can cause more stress than relief.

Wouldn’t it be great to get the benefits of shopping without the hassle? Cisco Systems has been working on a solution for this problem through the new Cisco Integrated Services Router Generation 2 (ISR G2).

The technology delivers a new borderless workspace experience through service virtualization and video-ready capabilities. This means that consumers will now be able to interact with video and audio in real time and have digital payment options.

What does this mean for the shopping world? In the near future, consumers won’t have to spend time in the fitting rooms struggling with different sizes and colors. Even paying for items will take only a scan of a credit card and a digital signature.

What does this mean for marketing?

As shown in the video, a more custom made, targeted approach to reaching consumers is well underway. The implications and possibilities of this technology will help pave the way for customer centric marketing approaches that will help break through the advertising clutter by offering relevant, timely information for the consumer.

Already, smart phone applications such as MasterCard's “priceless picks” are interacting with customers by using their locations to provide customized information on relevant places such as restaurants and shops in the area that others have preferred.

These are only a few examples of how technology is impacting the interaction between businesses and consumers. With innovative technology, marketing implications become limitless.

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Alejandra Leon is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She is afraid Cisco's technology will turn her into a true shopoholic. She can be reached at alejandraleon2010@u.northwestern.edu