Question

Select a market segment for fast food. First, describe the segment. Then explain how the segment meets all five of the criteria to be considered an effective market segment.

Answer 1

There are different market segments in the fast-food business that have different reasons and criteria for consuming fast food. These reasons are based on their demographics and lifestyles. The first segment of the fast-food market is the "family treat". This segment considers eating at a fast food outlet as a treat to the family for a reward or celebration. They make decisions as a household group and not individual customers. Children are taken out by parents as a treat or reward for some good performance to eat as fast-food restaurants because it fascinates them more than a formal restaurant. This is one option that attracts kids for the attractive and delicious meals and sometimes additional gits offered with them. It attracts adults because their children are happy and satisfied with these options and they get options for their age too in the menu. The food delivery is quick and the outlets of these companies are usually easily accessible to the customers. The food is easy to eat and the facilities are comfortable and clean.

The segment meets all five of the criteria to be considered an effective market segment because it is measurable, substantial, accessible, differentiable and actionable. It is measurable because it can be measured in terms of volume wherein the families living in and around a location where the fast-food outlet is located can be identified and counted. The group can be defined by certain characteristics such as families with children, having a middle-class background which will have long term preference for this choice of food. Hence they are substantial. The group of customers are also accessible for all types of marketing and advertising. They can be easily reached out through social media platforms, outdoor advertising, TV and radio advertising etc. It is differentiable because it clearly defines as customers having families and specifically children in their family which makes it easy to differentiate them from other market segments. It is actionable because identifying and measuring them can give the fastfood companies quantified results to form business and marketing startegies to develop and grow their business based on this segment satisfaction.