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Ethnic Marketing: McDonald's is Lovin' It - Essay Example

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YOUR NAME HERE YOUR TUTOR HERE YOUR COURSE HERE DATE HERE Name of Website: Businessweek.com Date of Publication: July 8, 2010 Title of Article: Ethnic Marketing: McDonald’s is Lovin’ It McDonald’s is changing its marketing focus in order to capture the attention of ethnic consumers, such as Hispanics, Asians and African Americans…
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Ethnic Marketing: McDonalds is Lovin It
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Ethnic Marketing: McDonald's is Lovin' It

McDonald’s also realizes that whites are rapidly becoming the national minority in the United States, therefore they consider the new marketing focus (or its positioning efforts) to be a worthwhile effort in terms of population demographics. The new marketing focus is an overall change in previous business strategy referred to as Leading with Ethnic Insights in which people of ethnic backgrounds are used in advertising content. Later, marketers are asked whether these ad proposals would be effective if only Asians, Hispanics and African Americans were the entire consumer market; not whites. This new strategy has created a whole new line of products that continue to perform well in key ethnic market environments. Many ads for McDonald’s now maintain only African American actors. In fact, five of the last 10 top performing advertising for the company consisted of only black actors (Helm, 2). One example is a recent advertisement that shows a marriage ceremony with the bride and groom jumping over a broom – which is a major ethnic ritual during the wedding (Helm). This article is important in reference to the course as it shows how demographic shifts, in terms of lifestyle and population, can radically change the course of advertising for a company that has been in business for decades. McDonald’s has significant revenues from a diverse clientele, as it is common knowledge that this business is favored by many types of people across the United States and in foreign countries. It shows the importance of how advertising and positioning strategies need flexibility in order to give a business modern appeal and avoid their brand equity from becoming stale and unpopular. The points in the article holding most agreement is the nature by which new products are developed by McDonald’s using both test markets and also by appealing to specific target groups of ethnic consumers. McDonald’s, like any other restaurant in the country, runs the risk of becoming an old brand if they do not diversify their menu options and make them relevant to changing consumer attitudes and lifestyles. This primary research effort is important so that McDonald’s does not lose touch with its key customers and is able to compete effectively with other businesses that remember the importance of change. The point in the article most in disagreement is the notion that ethnic consumers are setting the trends in the country. Even though by population ethnic consumers are growing, it is still the baseline social norm that exists in the United States that has the most authority and control over trends. For example, vanity and beauty are important social trends that continue to sell products like cosmetics and plastic surgery. These are driven, usually, by the white consumer and this is noticeable in almost all advertising of this sort as it relates to beauty products. I believe that the social norms that are long-standing in this country are the most powerful and McDonald’s should not lose touch with this fact by appealing too heavily on gaining attention of ethnic consumers. Much of the company’s foundational success is attributable to the actions and lifestyles of non-ethnic consumers who still value McDonald’s and contribute high profitability to its future. The article left the following questions unanswered: 1. Even though the business knows certain tastes with ethnic consumers, how should the company position ... Read More
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