B2B Marketing Strategies and Implementation
Added on 2020-01-15
22 Pages7255 Words214 Views
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MARKETING PRICNCIPLES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Elements of the marketing process.......................................................................................31.2 Benefits and cost of market orientation ...............................................................................4TASK 2............................................................................................................................................42.1 Macro and micro environment factors affecting marketing decisions..................................42.2 Market segmentation criteria used for different products in different market .....................62.3 Targeting strategies for the firm’s.........................................................................................62.4 Way in which buyer behavior affect marketing activities....................................................72.5 Positioning of new product ..................................................................................................7TASK 3............................................................................................................................................83.1 Development of product to sustain competitive advantage .................................................83.2 Way in which distribution is arranged to provide customer convenience ..........................83.3 Ways in which price is determined to reflect an organization objectives.............................93.4 Promotion activities of Mc Donald ....................................................................................103.5 Additional elements of the extended marketing mix..........................................................10TASK 4..........................................................................................................................................114.1 Marketing mix for different customer segments.................................................................114.2 Difference in marketing of product to the consumers and business firms.........................124.3 Reason due to which domestic and international marketing are different for Mc Donald.12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONMc Donald is world leading restaurant chain with presence in several nations across theglobe. This report is prepared on marketing principles under which marketing concepts arecovered and their practical applications are also explained in context of Mc Donald. In starting inthe report marketing process is explained and benefits as well as costs are also explained indetail. After that environment analysis is done and concepts of market segmentation, targetingand positioning are also discussed in detail in the report. Marketing mix is widely used inmarketing practice and due to this reason same for different customer's segment is given in thereport. At the end of the report, difference between consumer and business firm marketing isdiscussed. Along with this, difference between international and domestic marketing is alsoexplained in detail.TASK 11.1 Elements of the marketing processUnder marketing process, the strategy is formulated for the firm by doing situationanalysis. Following is the marketing process.Marketing environment- It is the first stage in the marketing process and under this thebusiness environment is analyzed in context of marketing as a discipline of themanagement. On the basis of analysis of business environment managers gets lots ofinformation about the competitors and other components of the external businessenvironment that directly or indirectly affects firm’s marketing efforts. Thus, on the basisof this information McDonald’s Mc Donald formulate a business strategy for its business.Marketing strategy- On the basis of information which is collected from the analysis ofbusiness environment marketing strategy is formulated by the firms. Mc Donald in orderto give stiff competition to its competitors does appropriate market segmentation for itsproduct (Hollensen, 2015). After doing market segmentation, it selects its targetcustomers from which it can maximize its sales. In the last stage, Mc Donald positions itsproduct on the basis of its USP or unique selling proposition. In this way, entiremarketing strategy is prepared by using information that is collected in the first stage ofmarketing process.
Evaluation and control- This is final stage in which Mc DonaldDonald’s top managersevaluate company’s performance and identify deviation in their performance (Wilson.and Gilligan, 2012). If they feel that tactics are not implemented properly then they takenecessary actions to make sure that tactics will be implemented properly.StrengthGood advertisement of the products.Well established brand name.Pleasant environment in restaurant.Offer products at affordable price.WeaknessLess advertisement of the product.Opportunity Scope for growth of business indeveloping nations like India.ThreatInfluence of Chinese restaurants isincreasing across the globe.Threat from local restaurants indifferent nations.1.2 Benefits and cost of market orientation Marketing orientation is simply a concept under which the company provides quality ofgoods and services to its target customer in order to satisfy their needs and to increase theircustomer base. Following are the cost and benefits of market orientation.Increase customer's base- Mc Donald is providing quality food with delicious taste tothose who visit its restaurant. By doing this it helps in increasing the customer base.Since inception the firm is focusing on preparing excellent quality food. Due to thisreason it quickly creates its good image among the people and manages to expand itsrestaurant chain globally. Market research benefits- By conducting market research, the company gets lot ofinformation from the people regarding their purchase pattern and buying behavior(Moutinho, 2011). With the passage of time trends in these factors also get changed.Thus, people needs, wants and demands also get changed. Hence, it is necessary to bringinnovative change in the product on time in order to make sure that firm will be able toretain its customers. The organization time to time conducts such kind of research and
innovate their product portfolio. Hence, in this way marketing orientation conceptbenefits the organization.Service and customer care- In today era, merely serving a product is not sufficient it isnecessary to provide excellent service to its customer. Mc Donald is taking care of thisfactor and it not only serves good quality food to the people but also provide excellentservice to them in order to satisfy their needs (Beverland and Lindgreen, 2010). This isthe reason due to which Mc Donald is today’s one of the successful business in the world.Types of market orientationProduct orientation- Under this orientation company assumes that product can be sold onthe basis of product strength and its specialty. They think that it is product features thatwill motivate customer have to buy a product. Hence, it can be said that this marketingorientation has a practical applicability.Production orientation – In this orientation firm believe in producing a product in largequantity. They believe that marketing does not so much influence people purchasedecisions. Hence, it can be said that this orientation does not have any practicalapplication. Sales orientation- In this orientation companies assume that product must be sold byhook and crook. Means whole focus is given methods by using which customer can bepersuaded to purchase a product. Due to unique way of selling proposed by thisorientation companies are widely using same.Marketing orientation- Marketing orientation believes that product must be sold bysatisfying needs of the customer's. Means that product must be advertised on the basis offeatures that can be used for marketing of a product in proper manner. Due to increasedcompetition this kind orientation is widely used by the firms.Societal orientation- Under this orientation product is prepared in such a way that lead towelfare of general public. This orientation is directly related to public and due to thisreason it is widely used by the business firms.
TASK 22.1 Macro and micro environment factors affecting marketing decisionsFollowing are the micro and macro environment factors that affect marketing decisions ofthe firms.Micro environmentCompetitors- These are those entities which are giving competition to the Mc Donald inmarketing practices. Normally, before preparing a market strategy firm analysis theircompetitor’s marketing strategy in order to remain one step ahead of them. On the basisof evaluation of the competitor’s marketing tactics Mc Donald formulate its marketingstrategy in order to give stiff competition to its competitor.Customer's- These are those entities that play a key role in revenue generation for McDonald. Today, customers are not loyal towards any company product and they consumeother company product also. Hence, Mc Donald needs to take some steps in order tomake sure that it will be able to develop loyal customer base.Suppliers- Mc Donald is importing many types of edible items from different nations. Itdoes this through suppliers. Many times relationships with the suppliers get bitter and thisaffects firm’s performance. Hence, Mc Donald needs to increase its suppliers in order tomake sure that its import does not get hamper due to bitterness in relationship with fewsuppliers.Employees- These are those who working in the Mc Donald premises. It is theirperformance due to which people like to visit Mc Donald restaurant. Hence, mentionedfirm needs to make sure that employees of the firm will further give a better performance.PESTEL or Environment analysis Economic environment- It refers to the country economic conditions which directlyaffect business of the firms. This impact may be positive or negative on the firm in termsof revenue earning (Sheth and Sisodia, 2015). Mc Donald prepares its advertisementbudget by evaluating current profit and future economic environment. Hence, it can besaid that economic environment indirectly affects firm’s marketing decisions. Social environment- Social environment refers to people culture, belief, customs andattitude. These factors affects people preference related to the product. Mc Donaldunderstand this thing and it country wise as per people taste bring changes in its product
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