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Towards a better understanding of the market 3: Product development and positioning for McDonalds All Day breakfast menu

   

Added on  2020-02-05

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UNIT 4Marketing Principles1

Table of ContentsINTRODUCTION.....................................................................................................................................3TASK 1....................................................................................................................................................31.1: Various elements of the marketing process................................................................................31.2: Benefits and cost of a marketing orientation of McDonald .......................................................5TASK 2....................................................................................................................................................82.1: Macro and Micro-environmental factors influence on marketing decision................................82.2: Segmentation criteria for product in different market...............................................................92.3: Segmentation Strategy for targeting.........................................................................................102.4: Buyer Behaviour and buying situations....................................................................................122.5: Positioning for All Day breakfast menu.....................................................................................13Task 3...............................................................................................................................................143.1: Product development for viability............................................................................................143.2, 3.3: Distribution and Pricing according to market condition.....................................................153.4: Promotional activities...............................................................................................................163.5: Extended marketing Mix...........................................................................................................16Task 4...............................................................................................................................................174.1: Marketing Mix in different segments........................................................................................174.2: B2B and B2C Marketing............................................................................................................184.3: International marketing strategies...........................................................................................18References...........................................................................................................................................202

INTRODUCTIONIn the present dynamic world, businesses are seeking to gain a competitive position inthe market by attracting as much customers as possible. As such businesses need tocontinuously adapt and adjust to the changes in the market and understand what exactlywould work for them. Marketing is generally defined as the process of planning anddistribution that is carried out in order to satisfy individual goals. Alternatively, it has beendefined as a medium of communication to offer products and services of value to thecustomers and the community (Kotler & Armstrong, 2012). Considering the various ways inwhich exchanges can be made between organizations and their customers, businesses can beobserved to have particular marketing orientations. Marketing orientations generally depend on the four basic elements that define theways in which a company decides to satisfy its consumer needs and hence, position itsbrands. Product, place, price and promotion act as the four elements of marketing (Malär, etal., 2011). These elements are controlled by businesses in order to create value such that themaximum number of customers could be attracted. It is key for the management tounderstand how the elements can be varied in order to maximize profits for the company. Thefollowing study would try to provide a more elaborate understanding of the marketingprinciples by developing a marketing analysis of McDonald’s.TASK 11.1: Elements of the marketing processElements of Marketing processAccording to the American Marketing Association of America, marketing can beconsidered as an arrangement of organisations which involves various processes fordeveloping, interacting and delivering the offerings to satisfy the customers and the partners. There are two philosophies which are the main reason behind the development ofmarketing as a management process:Sales orientation philosophies- This orientation mainly refers as gimmicks as it willnot develop a long-term demand for the product. The tols which usually use in thesephilosophy are buy one get one free promotions, website banners and so on.3

Product orientation philosophies- These philosophy mainly concerned about theproduct. If company is offering a superior quality product then customer will surely buy itwithout the discount and any other offer. Marketing segmentation- The group of the customer id very diverse in nature so itwould be very difficult for marketers to target each and every customer from such diversegroup. Segmentation is considered as neither profiterole nor practical attempt for satisfyingthe customer, because of the large heterogeneous population the main aim of marketer isidentify those customer who are more profitable for business. The marketing mix- Marketing mix is also one of the important element of themarketing process as it focused on the key factors indulge in the marketing area such asproduct, price, place and promotion. There are some key elements in the marketing process. The marketing process of theorganisation is discusses as under :First the analysis of the market opportunities is necessary for a better and a clear viewof the condition of the market.It can also help in a better evaluation of the time and pricing startegies of the releaseof a new arrival.Selection of the target market is also an important step.Then, the business needs only proper management and control over the cost effectivefactors.Presently, McDonald’s is considered as an essential part of the fast food chains.Providing quick service to the customers, the main marketing strategy for the company hasgenerally focused on facilitating better customer relationshipsParticular strategies have beenimplemented by the company in order to establish a better name for itself in the market. Theprime focus of the company has been to integrate the recent marketing strategies and adapt tothe changes in consumer behavior. To that end, the company has enabled particularmarketing strategies that are hugely reliant on the various digital and technical advancementsin the present world. The emphasis on creating more digital content for the company could beseen as a shift from the traditional marketing techniques that have so far been implementedby the company. In a recent Conference the company CMO, Deborah Wahl has talked about4

the company’s present digital integration and by forging new partnerships with technologycompanies including Google and Facebook. Also, the company is presently aligned towardsdeveloping a more holistic and comprehensive approach towards building effectivecommunication channels with the customers. According to Wahl, labelling the differentchannels as digital, print or mobile could be problematic and confusing in the present worldas one channel of communication is dependent on the other (Johnson, 2016). 1.2: Benefits and cost of a marketing orientation ofMcDonald McDonald's is pursuing various marketing activities in order to increase in theremarketing orientation programme. McDonald's is a fast food chain which has existencealmost all over the world here they operating there marketing activity very effectively to toexpand there business more. McDonald's is having a prudent regulatory framework in whichthey are focused upon the making there activities and operations marketing oriented. The benefits to McDonald's out of marketing orientation:Customer satisfaction, McDonald's has adopted various marketing orientationapproaches which enable their business to develop products as per the need and demand ofthe customer.Customer loyalty, Through the effective marketing orientation approach McDonald'sis increase the worth of its brand in the eye of the customer.Competitive benefits, AS the McDonald's marketing orientation approaches isfocused upon the customer so it is providing the competitive benefit to the firm over itscompetitor. More focused production, McDonald is making the customer need a primary focusso they are producing the product as per the need of the customer. Customer will get moresatisfaction with the product. Concentrated strategy- Cost of marketing orientation will help McDonald to alignall the functions with the strategic vision of meeting the needs of customers. This will beuseful to define the proper role to the employees of the organization. 5

McDonald marketing orientation structureThe marketing operation deals with the two factors which are discussed as under :Product orientation McDonald's as famous for meals, so their targets of achieving customer satisfactionwill be obviously through by means of meals. This is termed as the product orientation. If theorganisation starts with some other new business, it is an obvious fact that it may take a muchtime to be organised in that specific industry. So, this is called as Orientation of the product.Market OrientationIt can be referred to any organisation that the business only focuses on satisfying theneeds of the customer. If customers are satisfied with some product of McDonald's, then whywould the organisation exclude the item from the menu list. It is called as orientation of themarket.The integration of the technological and digital systems can be seen as an effectiveway in which the company can improve upon its present marketing strategies. With respect tothe key marketing elements, product, price, place and promotion, changes can be made withinthe digital medium to attain a better brand position. The problem however could be in the laterealisation of the benefits of technological integrations, as other companies in the segmenthave already taken recourse to excellent marketing strategies. KFC has been brilliant in itsapproach; one of the chain’s restaurants in South Africa has developed an interactive digitaltable wherein music of local artists could be played by customers while waiting for theirorders. Simultaneously, at other parts of the world, KFC has come up with other innovativedigital integrations like the foldable digital menu, in Germany, which can be accessed by thein-store customers to order their foodsThe integration of the technological and digital systemscan be seen as an by syncing their smartphones. The focus of KFC, however, could be seento be entirely on digital incorporation, which while indicates a target specific approach thattries to attract the urban youth, also, limits their market.On the other hand, McDonald marketing is hugely reliant on product adaptations andlocalization. McDonald has been effective in coming up with country specific menus anditems that incorporate the local flavors and portray a cultural identity that is specific to that6

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