Mcdonald's Marketing Assignment - Doc

Added on - Dec 2020

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1MARKETING*Definitions of Marketing:Important for externalMarketing is the process of identifying present consumers wants and needs andanticipating future consumers wants and needs, then analyzing and interpretingthis information in order to design products meeting customers’ requirements inthe future in a profitable manner.Marketing is to launch the right product for the right segment of consumers atthe right price, in the right place, and using the right promotional strategies.*The relationship between the marketing departments and the remaining of thebusiness’s departments:None of the business’s departments operate solely neither on separateislands. All business departments therefore collaborate and operate line inline to achieving the overall objective of the business organization.The marketing department has to communicate and collaborate with thefinance department for instance as marketing activities and the preparation ofan appropriate marketing mix needs finance. Hence the marketing departmentwill have to organize the provision of such resources with the advice and thehelp of the finance and accounting department.The marketing department communicates and coordinates with the HRMdepartment as well for example the marketing department might need extrasales people to market the products and advertise those products, therefore ithas to contact the HRM department to see the availability of the needed staffwith the needed skills.The marketing department will as well coordinate and communicate with theproduction department as the marketing department will be responsible forthe conduct of the marketing research and for identifying the present and thefuture consumers’ wants and needs. The results of this research will be sentto the production department to produce a good that meets customerssatisfaction.
2*Definition ofMarket:A market is any place where a large number of consumers or customers meet withsuppliers or sellers in order to exchange money with products. A market doesn’t haveto be at one place, it might be face to face, online shopping, or using the fax/telephoneto order.Markets might be local serving a certain area, for example a dry cleaning outlet.A market might be national serving the country as a whole, for examplenewspapers.A market can be international serving different markets at different countries; forexample McDonald’s.*What are the main features / characteristics of the market/markets where businessesoperate?1.Market size2.Market growth3.Market share*Definition of Market Growth:Some markets might be growing and others might be declining according to PESTFactors. The market growth is measured by the percentage difference in the marketsize over a period of a year. This could be based on market value or volume. Forexample if the sales value increase form 100 000 $ to 200 000 $ then the difference is100% increase in the market size.*Definition of Market size:The size of the market is either measured through the volume of sales ( numberof units sold) or through the value of sales ( price * quantity). Attention must betaken into considerations when comparing the size of different businessesaccording to value and volume as some businesses might be small in sizeaccording to their number if units sold but large according to the value of theirsales.*Definition of market share:Important for the external
3The market share concept shows how much share the business holds within themarket, it shows the businesses sales compared to the total sales of the marketas a percentage. The market share concept shows how much foothold thebusiness has within the market. The larger the Business’s market share, thisbusiness will be considered a market leader whereas other businesses withsmaller market share will be considered as market followers.*What is meant by a market leader?Important for the externalA Market Leader is the business with the largest market share; this is thebusiness dominating the market setting the pace and determining usually theprice and the strategies in the market.*What are the benefits of being a market leader?1.Market leaders have the highest proportion of sales in the market; thiswould lead to profit maximization.2.Market leaders have the highest sales in the market thus they enjoy fromeconomies of scale and a lower unit cost.3.Market leaders enjoy a good standing in its own market and a marketingadvantage.Yet1.The market share is calculated either according to the value of salesor the volume of sales so a business might be a market leaderaccording to one of the criterions whereas if the criterion is changed,the position of the business in the market will change as well.2.Time changes and thus the result of market share changes, a businessmight be market leader now but after a month figures change and thebusiness’s position in the market will change as well.3.The type of products sold might influence the calculations as well.
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