Influence of Marketing on Customer Behaviour

This assignment delves into the profound influence marketing exerts on consumer behaviour. It examines various marketing strategies, including promotions, branding, and market research, and analyzes their effects on purchasing decisions. Students are expected to demonstrate a comprehensive understanding of how marketing tactics shape customer perceptions, preferences, and ultimately, buying actions.

Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
MARKETING CONCEPT.....................................................................................................1
MICRO AND MACRO ENVIRONMENT...........................................................................2
MARKET RESERACH.........................................................................................................4
MARKET SEGMENTATION/ TARGETING......................................................................6
MARKETING THEORY.......................................................................................................8
CHANGING MARKET CONDITIONS.............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business is one of the main component which help in upliftment of society. There are
various actions which help in achieving targets in better way. There are many departments in
organisation which have various activities to perform, such as marketing, purchase, sales,
accounts, etc. (Berthon and et. al., 2012) There are possibilities that management of company has
to modify these policies as per requirement of customer. It is essential that modifications must be
convey to workers so that they can perform activities in better way. This report is based on
McDonald, which is top in food and beverages industry. This organisation was founded in 1940
by Richard and Maurice McDonald. This company deals in various country and they have huge
list of product , some of them are as follows- Big Mac, Hamburger, Double Cheese burger, etc.
There is discussion about marketing department and its importance. In this report, there is
discussion about micro, macro environment, marketing research , segmentation and targeting,
marketing theories. This report tells about market conditions as well.
MAIN BODY
Marketing is one of the important department in McDonald. It is essential that company
must take care of marketing personnel so it helps in expansion of business. There are various
ways to market product such as advertisement, newspaper, hoardings, etc. There are many
factors which affect business in positive or negative way (Brown, 2013). McDonald is the brand
which is known by every age group, this is result of brand and trade name and promotional
events. There are various policies which help in achieving targets on time. There is requirement
of time as well as funds so marketing manager must give emphasise on adopting best method.
There is requirement of proper planning and it is essential to take care about activities performed
by subordinates as change in policies affect business of McDonald. Business operates in society
and there are various contingencies which affect business.
MARKETING CONCEPT
Marketing concept is one main which helps in performing marketing task in better way.
Characteristics of marketing concept are-
Marketing report tool- There are various tools which help in performing activities in
better way. It is essential that company must use best and effective techniques which help to use
tools in effective and efficient manner (Chen, Wang, and Wang, 2010).
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Marketing research- This is important task which McDonald must do. As per this
features, there is requirement of basic knowledge about market fluctuation. This helps in
satisfying need of society.
Marketing planning- Planning is one of the basic function performed by Marketing
department. There is requirement of various strategies which set guidelines how to achieve
targets and increase sales (De Vries, Gensler and Leeflang, 2012).
Integrated marketing- This says that there are many functions performed by McDonald
to get best results out of marketing. But it is essential that company must cooperate with different
departments. so this helps in smooth running of business.
Customer satisfaction- This is one of the main objective of company. Business runs to
earn profits and this can be possible with good quality of product and services. Marketing
department must know what is demand of society and perform activities in that way. There is
requirement of research so competitors policies can be known and accordingly McDonald has to
modify it.
MICRO AND MACRO ENVIRONMENT
Micro and macro factors affect business in positive and negative way. It is essential to
consider them and act accordingly. Micro and macro environments are components of business
and it is important to make changes as per change them (Grönroos, 2011). This helps in
achieving targets in better way and it creates good relations with customer as well.
Micro environment- These factors are part of organisation and are directly related to it.
Top level management has to frame policies after considering these factors. This helps them to
perform actions in smooth way. Components of micro environment are as follows-
Customer- This component is most important and it is required to be considered at the
time of planning. Customer helps in improving sales of organisation. There are possibilities that
due to change in trend; company has to change product so that they can satisfy demands. This
change can be communicated by marketing department to production and other related units.
Employees- Top level management can frame policies for achieving targets, but this is
actually performed by lower level subordinates. There is requirement of various motivational
techniques through which performance of workers get improved (Hair and et. al., 2012).
Competitors- Food industry is one of the most competitive sector of industry. There is
requirement of research and best techniques for analysing market so they can know what is
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demand of customer. It is essential that company must emphasise on it otherwise there consumer
will switch to other brand.
SWOT Analysis:
Strength
McDonald's has good brand image in market.
Its product like Fries, Big Mac, etc. They have
good brand image in market and they have
good balance sheet position.
Weakness
Reducing market share, taste and quality of
product of McDonald's are weakness of this
company. They modify their product gradually,
this affects their customer range.
Opportunities
They can expand their venture through various
modes. They can enter in dinning sector or
they can correlate with various other brands.
China and India are big countries where they
can expand business.
Threat
Core competition in fast food sector, increase
customer awareness, health consciousness
among society, change in exchange rates are
some threats for McDonald's.
Macro environment- There are some factors which are not in control of management but
it indirectly affect business (Hoffman and Fodor, 2010). It is not possible to control them but it is
essential to modify plans and policies accordingly. It is essential that company must perform task
in better way so they can cope up with external factors. Components of macro environment are
as follows-
Basis
Political There is important role of government in
performing activities. It is essential to make
policies as per government norms, otherwise
there will interference of government and it
affect brand name. McDonald's has to perform
activities in better way and this gives them
edge to analyse government policies and then
take effective efforts.
Environmental McDonald deals in various parts of world.
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There are changes taking place in business, so
this affects business operations. Marketing
department must keep this factor in mind and
perform activities. Due to change in climatic
factors it is essential that McDonald's has to
take care of raw material such as potato,
bread, cheese, etc.
Social This is essential factor which help in
expanding business. In case of change in
demand of consumer McDonald has to make
alter their policies accordingly.
Technological There are many types of technologies which
are used by McDonald to perform business
operations. Technology is changing very
frequently, but it is not possible for company to
accept each and every change. There is
requirement of proper analysis and then adopt
best technique which is fruitful in growth of
organisation.
MARKET RESERACH
Meaning- Market research helps in performing marketing activities in better way. In this
process company get know about demand of consumer and hence they perform activities in
better way. It is essential that organisation must gather information in better and effective
manner so it can be used for achieving targets. There are many discussions related to operations,
consumers, sales, etc. There is important role of market research in achieving targets in better
way and on time (Huotari and Hamari, 2012).
Importance of Marketing Research
Consumer based research- Marketing research works for collecting information about
consumer and then plan activities accordingly (Jobber and Ellis-Chadwick, 2012). There is
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requirement of various approaches based on consumer, their satisfaction is base of growth of
organisation.
Direction and monitoring- Research performed by top level management of McDonald
helps in achieving targets. This provides guidance to workers and it helps in directing employees.
There is important role of manager in directing and monitoring to perform activities ion better
way.
Growth opportunities- When McDonald perform research in market, then they came to
know about market trends and this helps in achieving business operations in better and effective
manner. Research provides a chances of growth to McDonald which has positive impact on
brand name (Kim and Ko, 2012).
Competitive environment- There is much competition in Food industry, so there is
requirement of various policies which provide assistance to grow. Management of McDonald has
to regular analyse market, so it helps in achieving targets on time.
Improving sales activity- There are many factors which help, company to achieve targets
in better way. It is responsibility of marketing department to improve sales. McDonald serves
variety of products as per need of customer.
Qualitative and Quantitative research
Qualitative Research- There is need of data which help in performing activities. There are
possibilities that company use data which can be unstructured and semi structured. This data
differs from perception of personnel (Kotler, 2011). It is essential that company must use
techniques which help, them to know what can be done to improve satisfaction among customer.
Some methods are- focus groups, individuals interviews, etc. Sample used in this research is
small and this gives appropriate results.
E.g. There are many people discussing about product of McDonald. In this there is some
managers which keep eyes on thoughts of managers. It helps in planning things as per need. This
helps in improvement of sales.
Quantitative Research- There is use of data which is effective by sorting. It is essential that
company must use that data to achieve task in better way. There is check done to use data for
business purposing. There is requirement of various policies which might get affected due to
decision of management. In this research there is surveys done among people to know reaction
about product. Paper , mobile interview are some examples of quantitative research. It is
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essential that company must this data promptly, so there will not be adverse result of it (Kozinets
and et. al., 2010).
E.g. These days McDonald's use of mobile application to know about views of customer
regarding new product. But there is one disadvantage that talks about irresponsive of customers.
This may give bad or negative results of survey.
It is important and tough task to collect information from customers. There are
possibilities that due to change in policies there is requirement of collection of data which is
helpful in get correct and appropriate information (Michaelidou, Siamagka and Christodoulides,
2011). McDonald's can use comment diary, feedback from customer, etc. There is requirement of
various policies which help in achieving targets on time and it helps in know what can be done to
improve characteristics of product of McDonald's. Mobile Applications, side walks are also
effective in knowing feedback.
PRIMARY RESEARCH
This research is effective because there is personal contact with customer. It is helpful in
changing policies. It is essential that company has to select optimum sample size otherwise there
are possibilities of wrong decision which affect business growth. Personal interview, telephonic
interview, questionnaire, etc. are some sources of primary research. McDonald's use mostly
questionnaire and customer personal review this is beneficial for knowing review about product
and services they are serving.
SECONDARY RESERACH
In this research there are different sources such as newspaper, text books, internet data,
etc. There are possibilities that company has to use this data after proper analysis because this
data can be old and irrelevant. This research is less preferred by management of McDonald's.
MARKET SEGMENTATION/ TARGETING
There are some important activities which are necessarily part of achieving goals and
targets. It is essential that company must emphasise on them so better results can be achieved.
There are possibilities that due change in customer demand McDonald has to change product and
services. STP is one of the effective management technique which help organisation to achieve
targets in better way. There are less chances of adverse results (Murphy, 2010). As per this
technique there is requirement of various flexible plans which help in achieving task.
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Segmentation- In this process there is some bifurcation which help in knowing what has to be
done. There are many customers in society and it is essential to perform activities as per need of
customer. There are variety of products in McDonald's which satisfy demands of different age
group.
Benefits of Segmentation Increase in competition- This is one of the effective and beneficial factor for McDonald's.
Segmentation is beneficial for achieving targets and improvement of sales. This is
effective with the help of change in plans and policies.
 Customer retention- This is one of the best advantage which help in growth. There is
important task which help in achieving profits (Ries and Trout, 2013). It is essential that
company has to perform activities through which they can activities in better way.
Importance of Segmentation Communication- There is important role of communication in achieving targets. There
are many changes taking place in business and it is important to communicate to
employees. Segmentation gives a target for which company has to work.
 Improvement in profit- Profit is basic objective of company (Berthon and et. al., 2012).
There is requirement of proper planning which help organisation to achieve targets.
Through this technique there is improvement in performing activities in favourable
direction.
Targeting- In this step, company analyse to whom they want to target. It is essential for them to
market there product. McDonald's basically works for young generation, it is essential that
company must market product in way which attracts targeted customer.
Benefits of Targeting Concentrate on few group- This is effective as there is definition of some people which
are target consumer of McDonald's. This technique has positive impact on achieving
business objectives (Brown, 2013). There is requirement of proper planning which is
effective in growth of association.
 Loyalty and trust factors- As there is definition of targeted customer, so management
works as per their demand. It helps in creating loyalty among customer.
Importance of Targeting
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 Cost effective- When company plan things then they first know for whom they have to
work. This technique helps in approaching correct audience and hence there will no
wastage of resources.
 Optimal utilisation Of resources- There is requirement of many resources to complete
business objectives. Targeting helps company to make policies through which they can
use resources in effective and efficient manner.
Process Of Segmentation and Targeting
 There are many activities which help company to perform activities in better way. It is
essential that establishment must first analysis market. There is difference in consumer on
thee basis of geographic, lifestyle, personal needs, hobbies, etc. (Chen, Wang and Wang,
2010)
 Then managers must focus on performing activities in way which is effective for
company. There is need of proper policies which are effective for targeted person. It is
essential that company must use targeting which help in creating good relations with
customers.
 At last there is requirement to know what has to be done to place brand in market which
helps in improving policies in better way. This is effective through achievement of proper
targeting and segmentation. To promote brand it is essential that company must give
emphasise on needs of workers (De Vries, Gensler and Leeflang, 2012).
MARKETING THEORY
There are many theories which help company to perform activities in better way. It is
essential that management of McDonald's help in achieving task in better way. This affects
business in positive way. There is requirement of manager which can plan activities as per
requirement of business organisation. Management theories helps in achieving task effectively
and efficiently, which can be benefited by joint efforts of managers and employees. There are
many outlets of McDonald's having different approaches which help in generating income. There
is difference in culture, religions, trends of society which help affects business operations. It is
important that company has to make policies which assists image of company. Product- McDonald's deals in fast food segment. It is essential that management must
know to whom they target. There is change in policies of company, it is necessary to
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convey to employees. There is requirement of various raw material to deliver best quality
product to customers. So there is requirement to change decision as per product. Place- McDonald's operates in carious part of world, so there is requirement of strategies
which satisfy demand. There is difference in demand, climatic conditions, etc. so it is
important to deliver goods on time. It is essential to keep eyes on temperature of place
where things are delivered. If there is delay in delivery of product then it affects sale of
company. Channel of distribution is one of the main component which helps in delivering
raw material on time (Grönroos, 2011). Price- McDonald's has many competitor in industry. It is essential that company has to
perform activities which reduce the cost of product. It is essential that organisation has to
select source which helps in achieving targets i.e. profit maximisation and production.
There must be use of techniques which help in reducing defects which ultimately
profitable for company. Promotion- This is one of the main activity on which management of McDonald's. These
days there are various options through which they can perform probational activities.
This activity is time and cost consuming so there is requirement of planning which
provide assistance to association. McDonald's launch new product in market but it can be
known to society through promotional events, so there is requirement of best source
which attracts targeted consumer (Hair and et. al., 2012). Process- There are some process which is followed to convert raw material into useful
ones. There is requirement of reducing processing time and cost too. There are many
manufacturing tools which help company to achieve targets on time. Physical evidence- Physical evidence is one of the effective manner which help company
to give some proof. Physical evidence can be in the form of discounts, combo packs, etc.
This is requirement of various techniques which help in creating awareness among
people. People- People means targeted customer. They are source which help in achieving targets
of company. It is essential to analyse their needs so policies can be modified as per
requirement.
PROMOTION MIX
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In promotion mix there are various factors which has to be considered. They are
discussed as under- Advertising- There are different approaches which are used to advertise product. It is
essential that company has to expand money for it and deliver featurwes of product to
customer. McDonald's use TV, Newspaper advertisement, Hoarding, etc. which help in
telling about new proper to society. Personnel selling- In this style, McDonald's personnel advise customers who visit their
outlet to try new product. In this there is personal contact between customer and sales
personnel. Through this method feedback about product can be gathered at the same time.
 Sales promotion- This is the style used to increase sales. McDonald's has many discount,
combo offers to attract customers. They give new and attracts gifts to children so they
like to visit outlet again. This is effective with new and innovative packages, coupons and
offers.
(Source: Elements of promotion mix, 2018)
CHANGING MARKET CONDITIONS
There are changes taking place in business environment. Then these above mentioned
points are helpful in achieving targets. It is essential that company must use techniques are
effective for achieving goals. There are many factors which create hurdle. Management of
McDonald's has to frame flexible policies which can be effective towards achieving objectives.
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Illustration 1: Promotion Mix

When there is change in business policies then manager has to modify there strategies so they
competent with external factors of company. Leader has to motivate workers to give their best so
it helps in increasing sales. Burger King, KFC, Domino's, etc. are core Competitors of
McDonald's (Hoffman and Fodor, 2010). So to make good and ,long relation with customer it is
essential to frame policies after analysing competitor's. In case they will rigid to their policies
then consumer will switch to some other product. Business environment is not predictable so in
case of change there is requirement of modification in policies. Employees are main elements
which help in achieving task and they perform activities to attract consumer. Top level
management work in framing policies, but actual operation is performed by subordinates so there
must be proper guidance.
SOCIAL CHANGES AND GOVERNMENT POLICIES
Due to change in government policies, it is essential that company has to analyse market
and take proper actions in better and effective way. There is negative impact on business due to
environmental and governmental policies. It is important to perform actions after analysing
market in better and effective. It is necessary that organisation has to make changes in their
product and services as per alteration in customer need. McDonald's can create good and long
term relations with customer if they give priority to their need.
Political changes in country affects business. McDonald's has to consider changes so they
can perform actions in better and effective way. To make smooth running of business there is
requirement of accepting government norms. When there is increase in tax rate, then McDonald's
are abid by them. This company runs in various parts of India and there is difference in politi9cal
policies so it is essential to consider place where it is operating.
CONCLUSION
There is essential role of marketing department. There are possibilities that due to change
in market conditions, manager musty take care and frame policies again. There is requirement of
proper guidance which help in performing activities in better way. As business runs to earn profit
and this can be done with the help of customer satisfaction. Marketing helps in growth and
expansion of business. This is main department which assist in development of business. There
is requirement of proper technical which help in performing activities. As change in business
environment, there is requirement of proper modifications in business policies so plans can be
implemented in better way. Marketing department helps in knowing changes of society and then
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apply in operations. There are many alterations in products and services so it is essential to
deliver to society, so it helps in growth of business. Change in policies can be policies with joint
efforts of management and subordinates.
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