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Marketing Concepts and Principles

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Added on  2020/06/04

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This assignment delves into fundamental marketing principles. It covers essential marketing concepts like the 4Ps and 7Ps mix, explores various aspects of marketing such as tourism, hospitality, international business, and digital marketing. The assignment utilizes a range of sources including books by renowned marketing experts and academic journals to provide insights into current trends and practices in the field of marketing.

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Marketing
Essentials

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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function..................................................................1
M1. Duties of marketing with respect to marketing environment..............................................3
P2 Relation of roles and responsibilities with wider context of organisation.............................3
M2 Significance of inter-relationship between marketing and other functional unit.................5
D1 Critically evaluate the key element of marketing function...................................................5
TASK 2............................................................................................................................................6
P3 Comparison of marketing mix applied by different companies.............................................6
M3 Evaluate different tactics chosen by McDonald's to achieve business objective...............10
TASK 3..........................................................................................................................................10
P4 Marketing plan for McDonald's...........................................................................................10
M4 Produce detailed marketing plan for McDonald's..............................................................13
D2 Design marketing plan with the use of 7Ps.........................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16
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INTRODUCTION
Marketing is the tools or essential way through which Small and Big organisation can
earn growth and success. It help the business to work with each other towards maximisation of
its sales and profits. Marketing as the art and science of exploring, delivering and developing
value to satisfy basic needs and wants of target audience. It is an effective process in which
different activities are included such as targeting, research, communication, public relation and
many other direct mail (Askeland and Wright, 2013.). Marketing is more essential and vital
element for the company to improve their reputation and goodwill at marketplace. Further, it is
useful for the organisation to attract maximum number of customers towards business services
and products. In the present assignment, given company is McDonald's, it is limited services and
fast food business more than 35,000 restaurant in across 100 countries. They deals in different
variety of products such as salads, chicken sandwiches, desserts, etc. This report divided into
various parts which include role of marketing functions and its interconnection with
organisational functional unit. Marketing mix of two organisation and marketing plan of
McDonald's are shown in this project. Main aim of this report is to analysis importance of
marketing for the company.
TASK 1
P1. Roles and responsibilities of marketing function
Marketing is an essential techniques in the modern business enterprise, it covers knowing
of consumers demands, marketplace, making profitable relations, market strategy and render
quality among large number of audience. Marketing functions can be explained as the duty of the
company which assist it to recognise and source possibly successful goods for marketplace and
then supports in its promotion. There are different number of marketing functions which are
applied by the McDonald's essentially. These are shown as below:
Pricing: It is identify as essential function for the business success and development. In
this functions McDonald's set appropriate and low price for their products which support them to
attract large number of customers easily (Burke and Friedman, 2011). It also assist them in order
to maximise their sales and revenues in allotted time duration.
Product or service management: This is also known as an important and foremost
functions which benefited McDonald's in order to develop innovative food products for their
target and potentials clients like their chicken McGriddle and Breakfast Bowl.
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Distributions: This is identify as an important function for the organisation in order to
accomplish their long term objectives and targets. It is an effective through in which McDonald's
distributes their products by their own stores and across the world. Thus it is shown McDonald's
is a well established and famous restaurant in all over the globe.
Financing: Sufficient capital is necessary for the each and every enterprise to do their
business operations in successful manner. McDonald's analysis different accurate source where
they collect proper amount of money for their daily basis activities, products, services and many
other (Campbell and Martin, 2015). Accurate amount of capital benefited for the business to
maintain strong relation with customers or employees and improve profitability also.
Marketing-Information Management: It is a role of McDonald's Manager to measured
what products are well acceptable and which ones do not changes as well as sell the menu based
on that data or information.
Selling: It is a main and valuable function of marketing which is beneficial for the
McDonald's to sell their products and services across the world (Marketing Functions, 2017). It
help business entity to maximise their sales and profit in limited time period.
Promotion: In order to promote their new products and services at large scale
McDonald's apply commercials on Television and posters like on the NFL and the Olympics.
Thus, it is essential and essential element for the all organisation to introduced their new services
or products at marketplace and to the customers in easy manner (Cavusgil and et. al., 2014). This
function help business to save their time and cost as well as maintain long lasting relation with
customers.
Roles of marketing functions: Above all these roles are important and essential for the
McDonald's in different ways which are determined as below:
Main role of the marketing function is to promote growth and success of business at
large.
Key responsibility and duty of marketing functions are includes product development,
market research, communication, finance, planning, selling, promotion, distributions and
many other.
Major role is to develop long-lasting and strong relation with customers.
As a role of researcher to conduct research program which help them to analysis basic
wants and needs of customers.
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Role of marketing manager to use different tools and techniques with purpose to promote
their innovative services and products at marketplace.
As a finance manager to arrange sufficient amount of money for business activities and
functions.
M1. Duties of marketing with respect to marketing environment
Main duty and role of the marketing is to introduce new services and products at
marketplace. There are some role and responsibility of marketing in the context of marketing
environment which are explained as below:
Brand Equity: It is main role of marketing manager is to provide quality products and
services to the customers at reasonable price (Cooper, 2013). Thus, it benefited for the
McDonald's to improve their brand equity and goodwill in marketplace.
Market segmentation: In today's environment, market is volatile and dynamic, the
company needs proper segmentation which are give by the marketing manager. In this marketing
manager play vital role in the determination of clients in the large areas and advertise the
McDonald's products among them.
Monitoring of marketing environment: It is another important function of marketing
which have vital responsibility in the recognisation of innovative creations in the marketing
environment or atmospheres, this changes render constrictive outcome for the development of
new products. It involves socio-economic forces, changing market traits, legal and political
variation etc.
P2 Relation of roles and responsibilities with wider context of organisation
McDonald's is an American and fast food restaurant across the world. It was founded by
Richard and Maurice in 1940. They provide different services and products to the customers
such as Big Mac, sandwiches, Hamburgers, cheese, wraps, desserts, soft drinks, salads ad many
other beverages. All these are available in their shops which is beneficial for them to maximise
their reputation at marketplace (Desai, 2013). In the organisation different departs are work
together and have same motive to increase sales and revenues of McDonald's easily. For
achievement of long term goals and objectives, marketing play critical role in the form of
identifying basic needs and wants of customers, market trends, changes in technology and many
other. Thus, marketing is one of the main part for the development and growth of company.
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Different department of the McDonald's that are work with the help of marketing are determined
as below:
Finance Department: Main role of this department is to manage the finance, money and
accounting matters of the company. It is responsible and liable for ensuring accurate flow of
fund, right investment and accurate managing of the capitals. In order to arrange sufficient
amount of capital McDonald's use different kind of sources such as Debt factoring, mortgage,
additional capital, trade credit long and short term bank lone and so on. All these are beneficial
for the company to arrange funds for their daily basis activities (Dibb and Simkin, 2013). It is not
possible without marketing because with the help of such tool McDonald's easily understand
about what type of resource is beneficial for them as well as not.
Sales Department: Main role and responsibility of this department is set to see that entire
sales related tasks and duties are accurately managed and run in an effective manner. In this
business organisation use different sales techniques which help them to innovate their services
and products at marketplace. Beside this, marketing play critical role in providing different
aspects like banner, posters, TV and many other. Thus, marketing and sales department of the
company are interrelated with each other and have same purpose to maximise profitability of the
McDonald's in given time period.
Human resource department: It is another department which are working in the
McDonald's and have purpose to hire best candidates for the vacant position. In this manager of
the company use marketing tool because without this techniques they can not provide
information about vacant position in the company to the people (Forshier, 2012). Therefore,
marketing manager use two types of sources such as internal and external which is benefited for
the enterprise to systematically and accurately recruit best one from the large number of pool.
Thus, it shown both marketing and human resources department of the McDonald's are
interrelated.
Research and development department: This is another department which are
functioning in the McDonald's. Main role of this department is to organise proper investigation
in which they ask different questions to the large population. These questions mainly related with
the customers taste and preferences regarding McDonald's products, services, environment,
structure, culture and many other. This research is possible with the help of marketing tools such
as questioning, survey, sample size and many other. Thus , it define that marketing is important
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part for the research and development department to increase customer base in the organisation
by providing accurate information to them.
Operational department: Role of this department is divided into different parts such as;
Design of Goods and Services, Quality Management, Process and Capacity Design, Location
Strategy, Layout Design and Strategy, Job Design and Human Resources, Supply Chain
Management, Inventory Management, Maintenance and Scheduling. All these are important and
foremost role of operational manager which is achievable with the help of marketing tools and
techniques (Hauer, 2011). Further, role of marketing manager is to establish effective strategies
and policies which help them to reduce employees turnover and attract large number of
customers towards business products. Thus, without marketing Operational department do not
work effectively.
M2 Significance of inter-relationship between marketing and other functional unit
In the McDonald's different departments are work together and have common motive to
increase sales and revenues of the company. Above discussed different departments have critical
role to accomplish long term goals and objectives of organisation, recruit knowledgable people,
select effective strategy and policy, maintain long-lasting and strong relation with customers as
well as employees also. All these are achievable with the help of marketing tools and techniques
because without this company can not do their all activities and functions in proper manner.
Thus, it proof marketing and different department of the organisation are interconnected which is
good for the business success and development at marketplace. It is also essential for them to
keep their image and reputation for long time at marketplace.
D1 Critically evaluate the key element of marketing function
According to the Hughes, (2011) point of view marketing functions is more essential and
important part for the all enterprise because without this they can not introduce their new
products and services in marketplace and cannot accomplish their predetermined objectives.
There are some key element or component of marketing functions which are explained as below:
Research: It is first and foremost element of marketing function which help researcher to
conduct investigation about McDonald's products and services. Thus, it is important for the
business to improve their growth and success at marketplace.
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Strategy: An accurate and effective strategy is more important and essential functions of
marketing which is use by McDonald's with motive to maximise their sales and profit. It also
help them to enhance their reputation and goodwill at marketplace.
Planing: Planning is more essential part for the development and growth of the
organisation. In this McDonald's plan an effective policy that support enterprise to attain long
term goals and objectives.
Tactics: It is another important part of the marketing functions which play vital role in
the success and growth of company. In this role of manager is to set appropriate tactics which
help McDonald's to increase their profit and sales (Hugos, 2011 ).
TASK 2
P3 Comparison of marketing mix applied by different companies
Marketing mix is depict as the important and basic element of marketing plan (Marketing
Mix 4Ps and 7Ps, 2011). It is more essential and useful part for the each and every enterprise
because with the use of this component they easily innovate their products and services in new
market and to the customers. Further, it also business to introduced their products and services
components which cover process, place, promotions, people, product, physical evidence and
price. All these are valuable element for the development and success of company in limited time
period.
McDonald's and Pizza Hut both business are applied 7P's of marketing which is
important for them to achieve long term aims and objectives within an organisation (Lipsman
and et. al., 2012). Both companies are belongs in same study and provides beverages and many
other food products to the customers at reasonable price. These business are apply 7P's of
marketing which are determined as below:
Marketing Mix McDonald's Pizza Hut
Product Product is main element for
the success and growth of
company. McDonald's is a
well-established and famous
organisation across the world.
Company offer different
Company follow multiple
strategy of product as Pizza
Hut not only produce Pizzas,
but also sell in different variety
of other goods. They deals in
beverages, pasta, appetizers,
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products to the customers such
as vegetarian, Non-Vegetarian,
Frozen Deserts and Beverages.
In this business entity has
separate cooking equipments
and areas.
desserts etc. Size of the Pizza
is based on 3 types such as
regular, large and small. These
are based on Pan Pizzas,
stuffed crust pizzas, sausage
crust pizzas, Thin crust Pizzas
and Twisted Pizza.
Price Price of the product is mainly
based on its quality as well as
quantity also (Malhotra, Birks
and Wills, 2013). McDonald's
use different types of pricing
strategy like cost leadership,
psychological connotations,
many combos, low cost food
Franchise and many other. All
these are essential and
valuable for the company to
attract large number of
customers towards
McDonald's products and
services.
Company successfully applied
the low and high pricing
strategy which is mainly based
on product quality and
quantity. They use price
skimming strategy which is
good for them to achieve
competitive edge in limited
time period. Accurate price of
the product play vital role in
the success and development
of organisation at large scale in
an effective and efficient
manner.
Place Place is another important part
of the Marketing mix which
show growth and success of
company at marketplace.
Prime location of the company
is Malls. Shoping Complex's.
McDonald's products are
available across the world.
There are mainly three
approaches of places which is
used by the Pizza Hut to the
market in direct way
(Marshall, and Johnston,
2011). These are include
customer to dine-in, delivery
and online ordering. All these
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are important for the business
to attain maximum amount of
capital.
Promotion In order to promote and
advertise their new products
and services at marketplace,
McDonald's use different kind
of advertising via Cinema,
T.V, online, Radio, Press and
Postersites like magazines and
news papers (Mihart, 2012).
Further, they also apply
promotional methods like
merchandising, Point of sales
display, direct mail, door
drops, loyalty schemes etc. In
order to attract large number of
customers company offer
Scratch Cards service, Lucky
draws and so on.
In order to advertise their
Pizza and many other products
to the audience company use
television as a part of media.
Recently, company use print
media and exist with
innovative promotional offers
such as fresh pizza, it is
request to large number of
people in the nations. There
are different promotional tools
are used by the Pizza Hut such
as advertising, public relations,
sales promotions, coupons,
discounts, events and
experience.
People McDonald's has standard and
quality uniform for employs
for better service treatments. In
the company, different number
of staff are work in which they
need accurate services and
motivation. In this McDonald's
proper training to the workers
so that they are easily solve all
difficult issue in an accurate
Company have trained and
knowledgable workforce with
them. Entire employees who
are working in the Pizza Hut
are highly skilled. Main role of
the business entity is to
maintain the relationship with
their employees and customers
in better way (Nguyen and
Simkin, 2012). Thus, these are
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manner. important for the restaurant to
maximise customer and
employee base in the
organisation.
Process One of the main process in the
organisation is food producing
transparent to customers.
Innovative approach of
distribution and packaging.
Invented most effective
cooking equipments. Clients
are invited in order to check
the elements used in food.
Thus, it is important for the
company to accomplish their
long term aims and motive in
limited time period
(Papasolomou and Melanthiou,
2012).
There are different process
which are used by the Pizza
Hut such as manufacturing
process which is completely
transparent. In this large
number of clients are invited to
examine the ingredient. One of
the main process in Pizza Hut
is to deliver products on time
to time and free next time.
Therefore, it is beneficial and
important for the organisation
to keep strong relationship
with customers.
Physical Evidence In the McDonald's Physical
evidence is based on
Cleanness, quality,
transparency and speed. It is
more important for the
company to maintain strong
relation with customers as well
as employees also.
Pizza Hut are air conditioned
and well-designed restaurant
across the world. They have
nice interior decoration and
pleasing environment which
shows rich. Company mainly
emphasis on clean and neat
atmospheres. Workforce of the
business mainly believes that
they are rendering the top
quality products and services
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to their all clients (Pike,
2015).
M3 Evaluate different tactics chosen by McDonald's to achieve business objective
Tactics are most essential and important way for the McDonald's to maximise customer
base in the organisation. In this one of the main tactics is 7P's of marketing mix which is used by
all business with purpose to innovate or introduce their new services and products to the clients
and in the market. Further, it benefited for the enterprise to attract large number customers as
well as keep the customers and employees relationship in an accurate manner. This tactics also
important and essential for the McDonald's to develop their strong image in marketplace.
TASK 3
P4 Marketing plan for McDonald's
Marketing plan is main part for the all business to introduce all information about their
overview, mission, vision, marketing objectives, SWOT analysis, STP (Segmentation, Targeting
and Positioning), marketing budget and many other parts (Terpstra, Foley and Sarathy, 2012).
All these are highly related with company position at marketplace. Basic marketing plan of the
McDonald's are explained as below:
Executive Summary: This task mainly emphasis on analysation of the marketing
environment of company known as McDonald's. It is fast food restaurant in United Kingdom that
is known as a well-established and famous business across the world. Overview of the company,
SWOT analysis and many other that are included in the marketing plan. All these are valuable
for the company to maintain their goodwill and image at marketplace.
Overview of McDonald's: McDonald's is a biggest food chain and American fast food
restaurant across the world. This business was founded by Richard and Mauric McDonald in
1940. main purpose of this company is to provide quality products and services to the customers.
In the restaurant 375000 employees are recently work which is main strength for the company to
improve their growth and success easily. Fast food restaurant deals in different variety of
products such as hamburgers, soft drinks, chicken, salads, coffee, wraps, breakfast, French fries,
milkshake etc.
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Vision: Vision statement of the McDonald's is “Where the world buys more McDonald's
than any other fast food”. Thus it is beneficial for them to accomplish and achieve long term
goals.
Mission: “Aims and objective of the company is to be the world's best quick service
restaurant experience. It means business rendering outstanding services, quality, value and
cleanliness so that they make every clients in every restaurant smile”.
Objective: Main objective of the McDonald's is to attract large number of customers by
providing quality products and services to the customers (West, 2012). Another objective is to
accomplish their predetermined objectives and targets in limited time period.
SWOT Analysis:
SWOT Analysis of McDonald's Description
Strengths The second-largest fast food restaurant
network or chain serving clients in over 120
countries.
The most recognizable and world famous
brand in restaurant industry as well as across
the world.
Successful items which are produced by the
McDonald's to their customers such as Fries,
Big Mac, Happy Meal, Egg McMuffin and so
on.
Weaknesses Turnover of the employees is very high which
is main weakness of the McDonald's.
Negative publicity of the products and services
is another weak point of the organisation.
Customer looses because of fierce competition.
Opportunities Increasing dining-out market.
International expansion is one of the main
opportunity for the company. In this they
expand their business operations into India and
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china.
Joint ventures with wholesale like
supermarket.
Threats Changes of foreign exchange rates i.e.
Economies.
More Health-Conscious clients.
Large number of competitions is main threats
for the company.
Competitor analysis: McDonald's has different competitors which are available at
marketplace such as KFC, Burger King, Subway, Starbucks, Pizza Hut, Domino's, Dunkin'
Donuts,Wendy's, Taco Bell, Chipotle and many other. All these are belongs to same industry and
provide products and services to the customers at reasonable rate (Wilson, 2014). In order to
compete completions McDonald's use appropriate pricing strategy.
Segmentation, Targeting, Positioning:
Segmentation: Large number of the person happy to have a delicious as well as hygienic
non conventional products at their restaurant.
Targeting: Target customer of the McDonald's are children and Youth which are belongs
in upper as well as middle class also.
Positioning: Positioning of the company is well-established across the world which is
better for them to achieve long term goals and objectives in allotted time period.
Marketing budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial capital 8000 9000 14000 7000 9000
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Investment of
finance 12000 10000 20000 13000
Net Total 8000 21000 24000 27000 22000
Types of marketing
Promotion 1000 1000 1000 1000 1000
Advertisement or
publicity 6000 6000 6000 6000 6000
Direct selling 5000 5000 5000 5000 5000
Grand Total 20000 29000 33000 35000 30000
Controlling and monitoring: Marketing plan is important in which controlling and
monitoring is a last element which is define the role of manager. In this they are responsible for
entire activities and plan of business entity. Thus, it is more and main part of the company to
attain long term advantage easily.
M4 Produce detailed marketing plan for McDonald's
Marking plan is one of the main and foremost element for the all organisation because
with the help of this they can easily introduce their positions at marketplace and to the clients in
an appropriate manner (Wilson, 2014). This plan includes some essential and important
information about business strengths, weakness, segmentation, positioning, targeting, vision,
mission, objectives, budget and many other. All these are important for the McDonald's to
accomplish their long term objectives and goals in given time duration. Further better and
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effective marketing plan support the company to maintain their reputation and image in
marketplace. Thus, it is beneficial for the organisation to maximise their sales and revenues.
D2 Design marketing plan with the use of 7Ps
Marketing Mix McDonald's
Product There are different products which are offer by
McDonald's such as hamburgers and
cheeseburgers, Quarter Pounder with Cheese,
chicken sandwiches and many other.
Price McDonald’s apply cost leadership strategy as
per its foods as well as drinks which are yield
for competitive prices.
Place There are 36,258 McDonald’s food chain
restaurants in across 119 countries.
Promotion Company use different promotional techniques
such as advertising via Cinema, online, Press
Radio and Postersites like news papers ad
magazines.
People In the organisation entire workforces are
skilled and knowledgable. These are essential
for the business to gain competitive edge.
Process Main process in the McDonald's is food
offering transparent to clients.
Physical Evidence Physical evidence in the McDonald's is
classified into Cleanness, transparency,
quality, and speed.
CONCLUSION
From the above mentioned report, it can be concluded that marketing is essential element
for the company to gain competitive advantage easily. Role of marketing function is also
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important part for the growth and development of organisation. Thus, it show the interconnection
between organisational functional unit and marketing. In order to promote their products and
services in marketplace business applied different tools and tactics such as 7P's of marketing
mix, promotional techniques and many other. Marketing plan is also consider is an essential
process which help business organisation to keep strong relation with their customer's as well as
employees also. Therefore, it is the biggest strength for the company to expand their business
operation at large.
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REFERENCES
Books and Journals
Askeland, D. R. and Wright, W. J., 2013. Essentials of materials science & engineering.
Cengage Learning.
Burke, R. E. and Friedman, L. H., 2011. Essentials of management and leadership in public
health. Jones & Bartlett Publishers.
Campbell, R. and Martin, C., 2015. Media essentials: A brief introduction. Macmillan Higher
Education.
Cavusgil, S. T. and et. al., 2014. International business. Pearson Australia.
Cooper, C., 2013. Essentials of tourism. Pearson Higher Ed.
Desai, S. S., 2013. An analysis of the competitive marketing strategies of the hospitality industry
in UAE. IUP Journal of Management Research. 12(1). p.22.
Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Forshier, S., 2012. Essentials of Radiation, Biology and Protection. Cengage Learning.
Hauer, C., 2011. Marketing in the digital age. Editors' Bulletin. 7(3). pp.77-79.
Hughes, J., 2011. iPhone® and iPad® Apps Marketing.
Hugos, M. H., 2011. Essentials of supply chain management (Vol. 62). John Wiley & Sons.
Lipsman, A. and et. al., 2012. The power of “Like”. Journal of Advertising research. 52(1).
pp.40-52.
Malhotra, N. K., Birks, D. F. and Wills, P., 2013. Essentials of marketing research. Pearson.
Marshall, G. W. and Johnston, M. W., 2011. Essentials of Marketing Management. McGraw-
Hill/Irwin.
Mihart, C., 2012. Impact of integrated marketing communication on consumer behaviour: effects
on consumer decision–making process. International Journal of Marketing Studies.
4(2). p.121.
Nguyen, B. and Simkin, L., 2012. Fairness quality: the role of fairness in a social and ethically
oriented marketing landscape. The Marketing Review. 12(4). pp.333-344.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Pike, S., 2015. Destination Marketing: Essentials. Routledge.
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