Marketing Management: STP Analysis, Marketing Mix, Relationship Marketing Strategy

This document provides insights into marketing management, focusing on STP analysis, marketing mix, and relationship marketing strategy. It analyzes the STP analysis of Nest Plc, examines the marketing mix of Next Plc, and assesses the relationship marketing strategy. It also provides recommendations for developing Next Plc's marketing strategy.

Marketing
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analyse the STP analysis of Nest Plc..........................................................................................1
Examine the marketing mix focusing on the 4Ps of Next Plc.....................................................3
Assess the relationship marketing strategy with an emphasis on their current tactics................5
Provide recommendations on how Next Plc can develop its marketing strategy........................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing management is the organisational discipline which concentrates on the practical
application of marketing orientation, techniques and methods inside companies and business
venture and on the administration of an establishment’s marketing resources and actions. By
considering effective marketing plan of actions and strategies, the management can operate its
business in more developed manner (Martínez-López and et. al., 2020). For the completion of
this document McDonald is the form which is considered. It is an America Fast food
organisation which was incorporated in 1940 and is headquartered in California, US. The written
report will consider information about STP analysis and marketing mix strategy. Furthermore, it
will define about relationship marketing strategy and suggestion in context of marketing plan of
actions.
MAIN BODY
Analyse the STP analysis of Nest Plc
STP STRATEGY
This tool is one of the most popular strategic marketing methods that issued and executed
by businesses for effective reasons. It is an outstanding personification of the regular modify in
focus from a product centric tool to a customer focused technique that helps business enterprise
to develop recognise who they are exasperating to accomplish and how to place themselves for
success and enhancement. STP signifies as segmentation, targeting and positioning. It is a three
stage process that allows for the development of a specific and actionable marketing plan. The
key purpose behind this activity is to categories organisation’s customer, aim each segment team
according inclinations and needs and create situation alterations in establishment’s branding and
promoting plans to stay their needs and requirements (Visconti, Peñaloza and Toulouse, 2020).
This tool is effective and essential because it segregates broader markets in to small sections,
making it easier to expand specific techniques for reaching and engaging potential target
audiences instead of having to use a basic marketing plan that would not be as interesting or as
effective.
In McDonald, the administration of company utilise this plan of action in form of
development and the explanation of it is as:
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Market segmentation- It is a process and activity of segregating a market into diverse units of
buyers who have different needs, behaviours and characteristics and that might need divide
products and promotion programs. McDonald largely make focus on following market divisions.
Demographic- It considers of categorisation of the market into units based on alternatives such
as age, gender, family income, race and nationality etc. A one might anticipate, demographic
classification changeable is between the most popular bases for segregating customer groups
(Johnsen, 2018). Also for sensible reasons, there is often much more data available to help with
the demographic segmentation process. McDonalds offer their apprehension in following
demographic segmentation:
Age: It is one of the alternatives of demographic classification is age. In respective
company, to offer its products and provide benefits of its services, the venture segmented its
customers in form of children, young adults and adults. For children, McDonald offers a lot f
goodies, toys, happy meals etc. to get attention this younger segment customer. Young adult is
the main source of income for any business, let alone McDonalds. This market segment may be
having a non-refundable earnings that are lower than the standard, their utilization patterns are
far much more than old the other market segments. The adults is the third segment in reference to
target this segment, McDonalds tweaked its menu and made its offering less in calories and
healthy.
Income- In McDonalds, income and revenue is an important factor for establishment.
This component analysed that team is to be embattled. In the inappropriate development of
specific organisation, they focused on the category but slowly are beginning fiscal system meals
that attract the lesser to central income team.
Geographic- The marker is segregate according to geographic criterion such as country, states,
regions, cities and others, McDonalds concentrate on following segmentation. These are:
City- The administration of particular organisation makes concentration on improving country.
For instance, in Asian market, the firm concentrate on famous and capital of states and nations
where they can get attention of number of people (Olson and et. al., 2018). They focus on tourist
places, crwody and corporate areas. Along with this, they concentrate on tourist spot,
commercial area and many more.
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Psychographic- It is segmenting market into diverse groups based on social class and lifestyle of
people. McDonalds segments market on the base of psychographic alternatives like life style and
personality.
Behavioural- In this type of segmentation, consumers are classified into groups according to
their information of characteristics towards, use of or answer to a good (Gölgeci and
Kuivalainen, 2020). It is effectively supported to the demeanour of the consumers.
Benefits- Several commodities are embattled towards the benefits sought by target
audiences. For this McDonalds only focus come social class.
Loyalty status- There is two manners to improve business. To acquire new customer and
second is to keep its surviving consumers. The more loyal their target audience is to the
company. The more their consumer’s base will enhance which is one more kind of behaviour
which marketers aim. In case of McDonald, they have some advantage because they are well
understood chain international fast food company.
Market Targeting- After segmentation, the establishment requires determining on the targeting
strategy. Ventures need to assort the market segments that they want to concentrate on and put in
their future business plan of action. In McDonald, the target market includes both vegetarian and
non vegetarian customer classes. The particular enterprise has products in its menu that cater to
adults and young adults. From a long term, the establishment expected itself to be acknowledged
as a family restaurant and has been operating campaigns the same.
Market positioning- It is the final phase of this process and on finalising the market segments
that the firm wants to target, the marketer’s next phase is to design a marketing program that will
resonate with the target market or marketplaces. In context of position its commodities
accurately in the target markets, McDonald’s utilises segment insights or data regarding the
customer behaviour that are developed by market research (Zahay, 2020). By using these
insights, McDonald creates a positioning profile for each product and then the creative group
utilises these profiles to make ads targeted to reliable segments and to the general population.
Examine the marketing mix focusing on the 4Ps of Next Plc
Marketing mix refers to the set of activities and plan of actions that a business uses to
endorse its brand or commodities in the market. This tool of marketing helps in acknowledging
the commodities and facilities that are provided by the venture to its consumers. n addition to his,
it help in framing plan towards commodity providing and help in planning, developing and
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executing effective marketing strategy. With the utilisation of this plan, a business company can
make use of their abilities and avoid unnecessary costs. In McDonald, the administration of the
form can utilise it like a business technique and marketing plan of action. The explanation of this
determination and marketing tool in context of McDonald is as under:
Product- McDonald is one of the globe’s leading fast food chains, McDonalds primarily sells
hamburgers, chicken products, cheeseburgers, breakfast items, soft drinks, milkshakes and
desserts. The respective firm has also considered salads, smoothies, fish wraps and fruits. It is
widely acknowledged for its hamburgers (Hüttner, 2018). All these are the commodity plan of
action in its marketing mix. The original restaurant which was started through McDonalds
brothers, sold only hot dogs, hamburgers, cheeseburgers, milkshakes and French fries. The other
commodities sold crosswise the globe consider Big Mac, Big n Tasty, Double Cheese burger, Mc
Spicy Burger. McDonalds provides a range of breakfast sandwiches that consider bagels,
biscuits, Hamdesal etc. In beverages, Coca Cola is the primary supplier of McDonalds. It also
sells hot chocolate and other juices. It accepts the commodity according the local taste preference
and cultural identity.
Price- McDonalds considers and follows several prices bundling plan of actions that
provide bundling commodities with meals and other commodities for target audiences. To make
sure target audiences purchase more commodities McDonalds concentrates on psychological
pricing strategies in its marketing mix which appear reasonable to consumers. As part of the
promotional pricing strategy, the respective venture provides discounts or bundling on certain
commodities and combination of diverse menu products as packed together. Their pricing
strategy is also accepted to tap the lower middle section of the community. The most of the target
audiences of McDonalds are young teenagers who wish are brand conscious and want
convenience.
Place-McDonalds operate its business in approx more than 110 nations with the help of it 36000
restaurants globally. The diverse kinds of restaurants formats are Mc Drive, Mc Cafe, Mc
Express and many more. Most McDonald’s restaurants permits consumers to drive locations are
near highways that do not provide seating service (Shchepakin and et. al., 2018). The customer
of the enterprise visits these outlets and enjoys their food as well as orders online and gets their
favourites products like Hamburger and many more delivered to their doorstep. For some of the
places of globally, like Asian market that is multicultural nation, the promotional offers are
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initiated as per the specific situation like Chinese New Year. The location that is chose through
McDonalds is condition of the art and is selected after lot of consideration.
Promotion- It refers to those tools and techniques which are utilised and implemented by the
business enterprise in form of promoting, advertising and promoting commodities and facilities.
With the assistance of diverse advertising and promotional methods, the company aware about
its products and services to its consumers (Gaul and Baier, 2019). McDonalds has spent its huge
cost on advertising campaign, it makes utilisation of newspaper ads, billboards, signage sponsors
several sporting occasions such as FIFA world cup, Olympic games, Little league and others.
The respective company is utilises aggressive promotion when it comes to its marketing mix.
The TV promotion stays the prime form of endorsement; McDonald’s TV ads demonstrate
individuals involving in famous actions. They have hardly utilised any unfavourable campaign
regarding their rivals. Along with these promotions the firm consider social media tools like
facebook, Instagram, Twitter and YouTube etc. The popular celebrity spokespeople and diverse
other prominent personalities.
Assess the relationship marketing strategy with an emphasis on their current tactics
Relationship marketing strategy indicates to those marketing actions which are aimed at
developing and managing long term relationship with the consumers of the enterprise. In
McDonalds, there are diverse marketing plan of actions are considered by the establishment
make strong relationship with its target customers and these strategies make an positive influence
on the business development tactics and action of this company. The description of some
relationship marketing plan n reference to McDonald is as below:
Include social media- Use of social media approaches such as Facebook, Instagram, Twitter
and many more play an effective role in connecting and making immense relation with target
audiences. In present time, a number of people utilise social media so by utilising it as strategy,
the administration of McDonalds can aware people about their commodities and facilities that
will help in make effective relation with consumers (Koval, 2018). In addition to this, utilisation
of these marketing tools will make a great impact on the tactics of this venture such as promotion
action and publicity as in advertising form, the organisation will utilise these methods.
Building customer relation through loyalty points- It is another appropriate strategy as
diverse enterprise utilise it by remunerating customers for being faithful regarding company by
issuing bonus rewards points and cash back provides to consumers or new buyers. In
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McDonalds, the management can adopt this tool as a relationship marketing strategy which will
enable in retaining loyal customers. In particular venture, the administration provide discount,
offers and cash back options to its current and new target audiences that will enable in
developing the number of consumer and profit margins of the firm. This plan and tools makes a
positive influence on the tactics of company such as consumer service management, effective
promotion and many more that are utilised to retain clients as when individual gain these kinds
of benefits then retain with the firm till long duration.
Customer feedback or response- It is another effective marketing strategy because in
McDonalds, the company provide feedback option on its company website and mobile phone
application so that by analysing the response of them, the management will aware with the taste
and preferences and work in context of meeting or fulfilling their demands (Chonko and Hunt,
2018). This plan help in making effective relation and impact on the tactics of company such as
marketing research and determination as well as promotion as with this plan, the administration
well aware with consumer demands and other individual will also get attention regarding firm
because before taking the benefits of facilities people visit reviews. So this marketing plan of
action will help in making effective relation with consumers and endorsing the brand.
Provide recommendations on how Next Plc can develop its marketing strategy
The development of marketing strategy is important because with the assistance of
appropriate marketing plan of action, the company its products and services in manner, attract
large number of people, create awareness about products and services and build a great image
and market position in specific industry. In reference to McDonalds, the business enterprise
utilise appropriate marketing plan of action that enables in providing a range of consumer to the
particular firm. In addition to this, in this changing world, there are several technical
modifications occurring that help in making development in the marketing plan of action of
companies. There are some recommendations in reference to development of McDonald’s
Marketing strategy:
 To make improvement in the marketing plan of action, primarily, the particular venture
can profile its potential target audiences so that it can aware with their needs and
providing commodities according their needs and demands. For this, they can ordinarily
review customer feedback on company website and trends so the venture will not miss
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out on new growth options or become irrelevant with their marketing message and
information.
 It can be suggested to the company that by profiling its rivals, the particular organisation
can develop its marketing plan of action. By using it, the company can find out rivalry
advantages as well as find out the capability and weakness of its own initial activities to
assist in development of their performance compared with their competitors.
CONCLUSION
It has been summarised from the above explained content that business and marketing
strategy are effective strategy and tactics that are play a crucial function in the enlargement and
progress of company. There are several plans of actions and tools like STP analysis and
marketing mix strategy that are for the improvement of the organisation and establishment in
efficient development. Efficient relationship marketing plan of action are crucial to make good
relationship with its target audiences and make development in the commerce of establishment.
By adopting effective methods and tools of marketing, the firm can operate its business in more
developed form.
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REFERENCES
Books & Journals
Martínez-López, F.J. and et. al., 2020. Industrial marketing management: Bibliometric overview
since its foundation. Industrial Marketing Management. 84. pp.19-38.
Visconti, L.M., Peñaloza, L. and Toulouse, N. eds., 2020. Marketing management: A cultural
perspective. Routledge.
Johnsen, T.E., 2018. Purchasing and supply management in an industrial marketing
perspective. Industrial Marketing Management, 69, pp.91-97.
Olson, E.M. and et. al., 2018. The application of human resource management policies within the
marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management, 69, pp.62-73.
Gölgeci, I. and Kuivalainen, O., 2020. Does social capital matter for supply chain resilience? The
role of absorptive capacity and marketing-supply chain management alignment. Industrial
Marketing Management, 84, pp.63-74.
Zahay, D., 2020. Digital marketing management: A handbook for the current (or Future) CEO.
business expert press.
Hüttner, M., 2018. Marketing-Management: allgemein-sektoral-international. Walter de Gruyter
GmbH & Co KG.
Shchepakin, M.B. and et. al., 2018. Marketing tools of innovation development
management. Espacios, 39(31), pp.9-9.
Gaul, W. and Baier, D., 2019. Marktforschung und Marketing Management: Computerbasierte
Entscheidungsunterstützung. Walter de Gruyter GmbH & Co KG.
Koval, V., 2018, December. Marketing management in the development of tourism in Ukraine.
In Imperatives of civil society development in promoting national competitiveness: Proceedings
of the 1st International Scientific and Practical Conference (Vol. 2, pp. 167-169).
Chonko, L.B. and Hunt, S.D., 2018. Reflections on ethical issues in marketing management: An
empirical examination. Journal of Global Scholars of Marketing Science, 28(1), pp.86-95.
Online
STP Analysis of McDonald’s. 2020. [Online]. Available Through: <
http://heartofcodes.com/positioning-of-mcdonalds/>.
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McDonalds Marketing Mix (4Ps) Strategy. 2020. [Online]. Available Through: <
https://www.mbaskool.com/marketing-mix/services/17057-mcdonalds.html>.
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