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Concepts of Marketing

   

Added on  2020-01-07

22 Pages6229 Words255 Views
Leadership Management
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Contents:Introduction ................................................................................................31.1Explain the various elements of the marketing...................................................41.2Evaluate the benefits and costs of a marketing orientation for a selectedorganisation............................................................................................52.1 Show macro and micro environmental factors which influence marketingdecisions.........52.2 Propose segmentation criteria to be used for products in differentmarkets.....................72.3 Choose a targeting strategy for a selected product/service.......................................82.4 Demonstrate how buyer behaviour effects marketing activities in differentbuying...........92.5 Propose new positioning for a selected product/service........................................103.1 Explain how products are developed to sustain competitive advantage .....................113.2 Explain how distribution is arranged to provide customer convenience......................123.3 Explain how prices are set to reflect an organisation’s objectives and marketconditions...123.4 Illustrate how promotional activity is integrated to achieve marketingobjectives...........133.5 Analyse the additional elements of the extended marketingmix...............................144.1 Plan marketing mixes for two different segments in customermarkets........................151
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4.2 Illustrate differences in marketing products and services to businesses rather thanconsumers................................................................................................164.3 Show how and why international marketing differs from domesticmarketing...............16Conclusion................................................................................................18References................................................................................................19IntroductionIn the new arena of business world, the succession of business really depends on the propermarketing strategy. In modern business era marketing activities becomes more complex tocreate market share. Organization like McDonalds needs to follow several marketingstrategies while it enters into international market. Here in this assignment it will bedescribed several marketing process and benefits of marketing orientation of McDonald’s.Several micro and macro environmental factors will be discussed. Also it will be made atargeting strategy for a product of McDonald’s. Moreover, it will be discussed the way ofdeveloping products to sustain competitive advantage in market. In addition, a marketing mixplanning will be illustrated here.2
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Explain the various elements of the marketing processIn the tasks of marketing the main theme lies in proper delivery of products and services tothe desired customers and to acquire more customers and retain them. Here another maintheme lies on that is, making loyal and satisfied customer. Therefore marketing process willbe smooth the more objective will be gained. In McDonald’s also a general process formarketing is maintained. That process is mentioned below.Marketing process in McDonald’s: Situation analysis  Marketing Strategy  MarketingMix Decisions  Implementation & Control.Figure 1.1: Marketing Process of McDonald’s (Self Designed)In the very first step of situation analysis it is maintained carefully about the execution ofinternal resources & external analysis. Such in the case 5C analysis, past analysis & SOWTanalysis is included (Grönroos, 2004). And Then in McDonald’s marketing strategy isadopted for identifying the customer need and satisfy that. Then marketing mix is concludedwith the combination of product, price, promotion and place. At the last the strategy chosenfrom various options is implemented and control actions are taken.Evaluate the benefits and costs of a marketing orientation for a selected organizationIn the new era of information technology expenditure on marketing is huge. It is calculatedthat companies expend around 350 billion dollars each year. But the amount is not the samefor every company. Companies advertising expense depends on the size & financialresources. More over in the new arena of business the concept of occasional advertisement isarrived (Hennig & Gwinne, 2002.). But before investing on marketing and advertisement thecompany thinks about the benefit & return from the cost are occurring.3
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McDonald’s invests a lot on marketing and advertising to make it top in the list of world’sfood chain. As a matter of food it is more important for the company to make concern in thequality of food but as the world’s largest franchise is this, so a huge amount of currency isinvested in the field of advertisement. A dynamic survey says that McDonald’s spend morethan 990 million dollars each year. The advertisement generally goes on the tv channels ofvarious countries. And all this advertisement made McDonald’s the largest food chain in theworld marked as the major benefit of marketing.BenefitsThere are several benefits of marketing orientation which include, customer value,responds to demand, fulfilling demand. McDonald's focuses on customer value whichincludes needs and wants related to products or services. An organization provides reliableproducts at a reasonable price to their buyers. It affects the performance of the organizationbecause buyers are satisfied with the services which are provided by the employees andwhich increases the numbers of consumers. Apart from this, corporation identifies thedemand of the consumer in the market for developing new product. By taking regularfeedback from customer, the employee can make improvements in their products. It helpsorganization to maintain relationship with customers as well as goodwill in the market. Customer centric approach is important for the company which offer positivecustomer experience which is beneficial for the long term growth. An organization strives forsatisfaction of consumer to sustain in the marketplace. In this way, McDonald's developsCRM software for understanding the customer and needs which helps to collect the datarelated to the customer information and enhance the consumer experience. On the other hand,McDonald's faces many challenges because various competitors sell the products in Foodindustry like Burger king, KFC etc. but organization has uniqueness of the products and servelow cost to their buyers.Marketing orientation plays significant role in the organization and it is required bythe businesses to pay extra cost regarding the same. Company research to identify theconsumer needs and wants under which manager takes the feedback and conducts the survey,all these activities organized by the firm increases the cost of operations. In this way,McDonald's also needs to pay amount of advertising cost to carry out activities such as printthe brochures, banner advertising, all the expenses incurred by the firm. All these activitiesare conducted by the manager which results in increasing the overall cost of operations.4
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Apart from this, company is not able to predict the some changes in future and due to this, theorganization suffer some losses. 2.1 Show macro and micro environmental factors which influence marketing decisions As a food chain, McDonald’s is affected by the various channel of environment from internal& external pressure. The macro environment refers the combined factors of the economy andposition & the Micro environment refers the combined factors of the specific industry.Macro environment of the McDonald'sPolitical- Government make regulatory frameworks and policies for theorganization’s growth and development. McDonald's has closely considered thesefactors to create an effective impact on business day to day operations. Furthermore,this helps in developing pricing, distribution channels and promotional activities.Economical- It includes exchange rate, inflation, bank rate, growth rate, employment,education rate etc. It directly affects business prospects of the food industry.McDonald’s undertakes effective market research for enhancing business operationsand productions. This factor helps in evaluating the business cost and growth factor.Higher growth rate helps the business to increase its sales and profits. Social- The market trends and consumer preferences for food and health awareness ischanging in the market. Company focuses on target customer under that it producesthe products and services according to the buyer’s taste and preferences.Technological- It plays significant role in the fast food industry. By using advancetechnology, organization improves day to day operation and productivity for reducingwaste time, resources. Company provide Wi-Fi facility at the restaurant area whichhelps in attracting more and more customers. Environment- Environmental changes directly impacts on raw material and availableresource in the organization. McDonald's adopts sustainable practises to operate in thecompetitive business environment. For example, it supplies the products in the paperbag.5
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Legal- Anorganization can follow the rules and regulatory framework. The businesspolicy of McDonald's is developed according to the local regulations and governmentpolicies.Figure 1.2: Macro and Micro environment of McDonald’s (Self designed)If done a synopsis on the macro environment factors of McDonald’s here will be, agents,distributors, suppliers and other distributive intermediaries and firms that are competing(Alserhan, 2011). On another extent the other series of factors include political environment,social environment, economic environment, geographic environment, legal environment,cultural environment, technological environment etc. So here the environmental factorsconsist of the people, organization and forces outside the firm. Also there is a sub-division ofthe macro environment of the company.If drawn attention on the micro environment of McDonald’s will be found out the factor overwhich the firm has control or which can be used in gaining information for marketing6
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