Unit 3 Introduction to Marketing

Unit 3 Introduction to
Marketing

Contents
Unit 3 Introduction to Marketing...............................................................................................1
Introduction................................................................................................................................3
Task One....................................................................................................................................4
P1 Describe how Marketing techniques are used to market products in two organizations..4
P2 Describe the limitations and constraints of Marketing.....................................................5
M1 Compare Marketing Techniques used in marketing products in two Organizations......5
D1 Evaluate the effectiveness of the use of techniques in marketing products in one
organization............................................................................................................................6
Task Two....................................................................................................................................7
P3 describe how a selected organization uses marketing research to contribute to the
development of its marketing plans.......................................................................................7
P4 Use Marketing research for Marketing planning..............................................................7
M2 Explain the limitations of marketing research used to contribute to the development of
a selected organization’s marketing plans..............................................................................8
D2 Make justified recommendations for improving the validity of the marketing research
used to contribute to the development of a selected organization’s marketing plans............9
Task Three................................................................................................................................10
P5 Explain how and why groups of customers are targeted for selected products..............10
Task Four.................................................................................................................................12
P6 Develop a coherent marketing mix for new product or service......................................12
M3 Develop a coherent marketing mix that is targeted at a defined group of potential
customers..............................................................................................................................12
Conclusion................................................................................................................................13
References................................................................................................................................14

Introduction
Every organization has a large aspect for Marketing to play a big role to make them ahead of
the competitors. Nevertheless; Marketing is essential in every sector alongside with business.
Organizations work with their strategies to get down into the market and get a strong hold but
the term refers to the application of the unique strategies & steps and gaining customer
satisfaction in the end. In such case; not only the fulfillment of an objective is ensured, but
also the growth of an organization is maintained. Marketing makes a reflection of an
association with a view to creating a large brand identity and also to having one step ahead of
the others.

Task One
P1 Describe how Marketing techniques are used to
market products in two organizations (M1) (D1)
One of the largest coffeehouse in the world; known as Starbucks has a stronghold in the
global market having more than 20000 stores around. Starbucks has been offering frosty and
hot beverages, sandwiches, baked goods and snacks since they first opened their store in
America by three partners.
The McDonalds is the world’s largest fast-food giant serving hamburgers; having 35000
outlets around the world. Alongside with burgers; meals, beverages, pork, fish-items etc. are
served by McDonalds in 119 countries. The marketing techniques of the two companies are
discussed below:
 Market Penetration: McDonalds applies market penetration with Big Mac; a big
hamburger as a symbolic product of the company. Starbucks provides free beverages
alongside with coffees to customers who have birthdays as the birthdate of every
customer is recorded in the information system.
 Market development: by developing a new market for the present market;
McDonalds always comes up with different menus like happy meal, savers menu,
coffees etc. Starbucks focuses on their existing consumers through serving tumblers
and mugs.
 Product development: McDonalds ensures their product development through using
forequarter and flank from British and Irish beef cattle to ensure a better quality.
 Diversification: McDonalds tries to catch new markets by opening two hotels in
Switzerland. Starbucks applies diversification through entering into hospitality
industry since 2001.
 Branding: Starbucks uses their branding capability through their logo to let the
customers know about their recognition.
 Brand-Extension: Starbucks uses their brand names on new products while
providing customer value such as mugs, tumblers etc. (Baker, 2013).
The marketing techniques used by Starbucks and McDonalds are apparently similar but
different in functions and application; for which the grasp of the global market is still after by

the competition. The comparison of the marketing techniques of the Starbucks and
McDonalds are like they imply diversification through entering into hotel industry and
hospitality management. The “Golden Arch Hotels” are the renowned four-star facilities at
Zurich, Switzerland that is built and run by McDonalds. Being able to comply with the
industry; the company has succeeded to enter a new market and compete with full potential.
Market penetration through attracting non-user of the product or persuading existing
consumers to grow consumption by McDonalds is done efficiently and with a proper manner.
On the contrary, delivering free services or special buffet for star customers done by
Starbucks is one of the unique applications of penetrating market. McDonalds develop their
items through putting beef patties and club bread as a reflection of product development
where the Starbucks put extra service like mugs and tumblers for market development as
well.
According to Urban and Hauser (2010), the effectiveness of the marketing techniques based
on the product of a company depends on the planned approach, functions and the
implementation. McDonalds ensures the product consistency through quality & taste which
are done by developing a sophisticated supplier networked operation and distribution system
across the borders.
The product development through making MCVEGGIE burgers has grabbed newly targeted
market which prefers vegetable to meat. Using demographic segmentation with age as the
parameter; McDonalds focuses on the young generation, children, and adolescents.
Nevertheless; McDonalds uses market development through providing free toys for children
with happy meals to create more attraction. In such mode, almost 90 percent of the target
market of children in every country prefer to have a meal in McDonalds. The Growth strategy
through adding restaurants, maximizing sales and profits at existing restaurants as well as
improving international profitability has made an enormous reflection of the effectiveness of
the implication by McDonalds.

P2 Describe the limitations and constraints of Marketing
Various limitations containing the obstructions and the constraints of Marketing are
mentioned below:
 Consumer Protection from Unfair Trading 2008: proper treatment from the staffs
of the companies are ensured in a proper manner. In such case, good customer value
and customer satisfaction are ensured.
 Consumer Credit Act: All the customers are highly appreciated and treated well by
the financial loan the business serves. Not only that; the customers are updated
frequently about their accounts like annual statements.
 Sale of Goods Act: proper advertisement of the product specialty is highly
maintained by Sale of Goods act where the companies ensure their product’s level of
functions to serve their customers.
 Data Protection Act: Customer information is highly protected and secured which
are maintained by the companies that record. Starbucks uses the birthdates of the
customers to provide free special services and ensures the secrecy; except is required
by the police or NHS.

Task Two
P3 describe how a selected organization uses marketing
research to contribute to the development of its
marketing plans
McDonalds works with Qualitative research that is designed to make an image of a range of
behavior and the perceptions of the target audience’s leading to specific topics or issues with
references. Quantitative research refers to asking customers for their opinions in a structured
way while producing a strong survey, to get a reliable result. McDonalds works for the
information about products, the level of interest, change of the market, the inclusion of
questionnaires which are provided by Quantitative research.
Primary research refers to the first-hand information. In that case; handing out questionnaires,
conducting interviews with customers will derive the information about the experience of the
customer based on the product. According to a survey; McDonalds find out that 75% want
healthier food, 50% said the food provided could be of better quality, 80% said that price was
too high. According to that research, McDonalds has to sustain the quality to the standard
alongside with fresh ingredients; establish a budget to ensure cost effectiveness. Secondary
research deals with the second-hand information which provides data containing the progress
of the competitors, current fashion, dynamic demands, the current price of a general product
which McDonald’s takes help with a view to keeping ahead of KFC, Subways etc. Not only
that; McDonalds uses cost effective to see inter-connection with the monetary inputs and
desired outcomes and generation of sales (Imms and Ereaut, 2012).
P4 Use Marketing research for Marketing planning
With a view to having a better marketing planning; performing a better marketing research is
necessary for any organization like Starbucks or McDonalds. As a concept to track the
environment the company’s operating in or planning to launch a new project, product etc.
McDonalds uses PESTLE; illuminating the political situation of the country; the prevalence
of the economic factors, the importance of culture, the current level of technology, the impact
of the legislation on the company and the impact of the environment on the company. In
order to comply with the functions inside & outside the company; SWOT analysis is used by
McDonalds. McDonalds has the strength of providing unique products within cheap costs to

markets like Big Mac. On the contrary, the weakness of the company reflects the improper
ability to reach lower class people. Not only that; according to a survey, most people prefer
grill & crispy beef to the staked beef alongside with availability of vegetables. But the
company has opportunities to reach lower class people through extending free services with
standard costs as opportunities. In such case, cost limitation is threat for McDonalds as it is
tough to maintain the production cost and also make the free service available at the same
time. Moreover, SMART objectives are performed in operation of both Starbucks and
McDonalds; which leads to proper specification, measurable or understanding, possible and
achieving, resourced and time-bound determinations. The objectives are specified, possible to
achieve and can be done with resource and proper time. To exemplify; after having a survey,
McDonalds find out that 60% customers want the meet crispy in the bread, 15% customers
priority of lettuce and tomato. In such case; McDonalds can set their marketing objectives
through perceiving the need of the customers through the survey, meeting quality standards
by grilling the beef in a proper manner & provide lettuce or tomatoes, limiting the cost
according to the addition, keep pace with the quality standards and so on.
M2 Explain the limitations of marketing research used to
contribute to the development of a selected
organization’s marketing plans
Several marketing research methods contain limitation for which companies cannot sort out
all data needed properly. These limitations are described below:
 Time-boundary: customers cannot reach to companies through questionnaires for the
scarcity of time.
 Biased data: customers fill the answers of the companies in accordance with the
biased point of view.
 Inflexibility: customers feels pressured as they cannot find flexibility during
interviews with the companies.
 Invalidity: secondary research sometimes provides invalid and backdated data.
 Vague: secondary research sometimes fails to provide vague information which does
not make any impact on decision-making process.
 Failed expenditures: costs made during researches for making better marketing plans
sometimes get failed; so that the expenditures get wasted.

D2 Make justified recommendations for improving the
validity of the marketing research used to contribute to
the development of a selected organization’s marketing
plans
Recommendations for improving the validity of the marketing research of Starbucks are
described below:
 Reliability of data: the source of primary research by Starbucks with a view to
conducting development should be reliable and trustworthy.
 Short questionnaires: questionnaires made by Starbucks must not be long enough to
make customers tired of answering all of them. Furthermore; short & smart
questionnaires will make the customers impressed.
 Time-saving: the customers will have their time saved by Starbucks by providing
short and impressive questionnaires to them.
 Relevance: Starbucks should sustain the relevance in accordance with the context.
 Unbiased questions: providing unbiased questions will lead the customers to the
honest answers and these will ensure the validity and helpful for Starbucks.
 Focus Group: focus group; where a group of people is brought for discussion or
debate, helps to find the accurate information for Starbucks to make a correct decision
(McDonald, 2008).

Task Three
P5 Explain how and why groups of customers are
targeted for selected products
According to Cahill (2006), market segmentation refers to the process of defining & dividing
a mass market into identifiable classifications having similar needs and wants. Various ways
because of which customers are targeted for specified products at Alton Towers are discussed
below:
 Business to Business Market
 Business to Consumer Market
 Geographic segmentation
 Demographic segmentation
 Psychographic segmentation
 Lifestyle
 Target groups like ACORN, MOSAIC etc.
In selecting Business to Business Market; McDonalds can specify two groups including:
 Officials
 Businessmen
In selecting Business to Consumer Market; McDonalds can select four groups including:
 Youth
 Families
 Children
 Moving customers.
In B2B market, McDonalds can select officials around their outlets and the employees of
various firms. These officials are mass targeted customers as well as the business men who
are moving and have strong demand for the outside foods. In B2C markets; McDonalds can
select youth generation fantasized about outside food and children who love to eat outside.
Families and moving customers also love to spend time and can be targeted. Not only that;
organization’s mission is suited with the selected customer groups alongside with the ability
to serve. Furthermore; McDonalds has targeted a group of markets of ages within a range of

15 to 45, middle income ratio ranging to 50000 dollars, urban people according to geographic
segmentation.
Task Four
P6 Develop a coherent marketing mix for new product or
service.
Marketing mix includes 4ps that are product, price, place & promotion which are the
elements to showcasing when developing a new product.
Product: McDonalds can develop a new product through market researches like
MACVEGGI. The unique characteristics of the product are necessary to ensure a
good showcase to customers.
Price: McDonalds can set the price set adjustable to all targeted segments having
different purchase powers. In that case, the market for the product will expand.
Place: McDonalds distributes foods and beverages through their outlets in very busy
and local places and regions; to ensure the reach to the targeted group’s even officials.
Promotion: McDonalds can promote the new product through providing extra
features and advertising them through medias, online techniques, personal selling,
sales promotion, TV commercials etc.
M3 Develop a coherent marketing mix that is targeted
at a defined group of potential customers
A coherent marketing mix which is targeted at a defined group of potential customers are
described below:
Product: product range; a set of same products should be brought to potential
customers. Not only that; values should be given more priority as the benefits should
be much better than features as well as the product life cycle.
Pricing: To reach the potential customers; penetration pricing is essential alongside
with price skimming, premium pricing, captive product pricing etc. Economy pricing
is also necessary alongside with proper value to target groups of customers like rich
people. Product line pricing can help making the continuity to the product sale.

Place: products should be door to door to reach customers by online orders, physical
presence and making more outlets to have accessibility to customers alongside with
expansion.
Promotion: maintaining public relations is highly essential alongside with personal
selling. Different Media and online Medias must be operated for better promotion to
the potential customers to realize about the continuous development of the product.

Conclusion
The overall concepts of marketing; its objectives, techniques, limitations, marketing research,
marketing planning, market segmentation, marketing mix are discussed above in a proper
manner.

References
1. Cahill, D. (2006). Lifestyle market segmentation. New York: Haworth Press.
2. Imms, M. and Ereaut, G. (2012). An introduction to qualitative market research.
London: Sage.
3. Urban, G. and Hauser, J. (2010). Design and marketing of new products. Englewood
Cliffs, N.J.: Prentice-Hall.
4. McDonald, M. (2008). Malcolm McDonald on marketing planning. London: Kogan
Page.
5. Baker, M. (2013). Market development. Harmondsworth: Penguin.