Marketing essentials - McDonald's
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This document discusses key marketing concepts and strategies. It defines marketing and outlines the marketing process as identifying customer needs and developing products and services to meet those needs. The marketing concept of fulfilling existing customer needs while also satisfying new needs is explained. The roles and responsibilities of marketing managers are presented, including market research, developing marketing strategies and plans, managing the marketing mix, and measuring success. Current and future marketing trends involving social media, mobile, and location-based marketing are also summarized.
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Marketing essentials - McDonald's
- 1. Marketing Essentials Marketing Concepts and Internal Relations 02.03.2017
- 2. Introduction…. Definition Marketing Process Marketing concept Role and responsibilities of marketing manager The benefits and costs of marketing Marketing trends current and future Situation analysis (SWOT) Ansoff Matrix Marketing mix(4Ps) Conclusion
- 3. Definition…. Marketing is the activity, set of institutions, and processes for creating, communication, delivering and exchanging offerings that have value for customers, clients, partners and society at large. The management process through which goods and services move from concept to the customer. Needs and Wants Satisfaction of needs and wants through ideas, products and services Marketing
- 4. Marketing process. Marketing process is a five stage cycle generally, that seeks to establish a clear direction and unified purpose for fulfillment of customer needs.
- 5. Marketing concept Marketing concept is the idea to identify the met and unmet needs of the customer, then try to fulfill the met needs first which are already being fulfilled by other competitors, but simultaneously satisfy the unmet needs by introducing new methods and improvement in the product time to time.
- 6. Role and responsibilities of marketing manager Market Research: To have good knowledge of customer regarding B2B and B2C. Marketing Strategy: Implement Situation Analysis, set objectives, design strategy, introduce new tactics, performs action, collect feedback. Management of Marketing Mix: The cost strategy, process of selling and how to promote and advertise. Measuring success: Gather website hits, sales figures, market share data and customer reviews.
- 7. The Costs and Benefits of Marketing… Costs: (1) Advertising and Marketing Costs (2) Investment of Time (3) Drip Marketing Benefits: (1) Promotion of Business (2) Enhanced Brand recognition (3) Improving the businesses profits
- 8. Marketing trends current and future…. Current Trends: (1) Social Marketing (2) Relationship Marketing (3) Green Marketing Future Trends: (1) Mobile App Marketing (2) Livestreaming (3) Location Marketing
- 9. Situation analysis (SWOT)… Strengths: • Strong Brand • Customer Intimacy • Product Innovation • Supplier • Integration Weakness: • Limited Product List • Low depth and width of product • Unhealthy Food menu Opportunity: • Entry into Breakfast category • Low depth and width of product • Introduce healthy food Threat: • Trend toward health consciousness • Increased competition S W O T
- 10. Ansoff matrix…
- 11. Marketing mix(4Ps) Generally, marketing mix is the combination of controllable elements of the product’s marketing strategy which consists of 4Ps (product, price, place and promotion), it is about placing the right element at right place and right time. McDonald’s marketing mix includes different approaches that meet business concerns in various markets around the globe. For example McDonald’s emphases on print media mostly in those countries where such media is prevalent.
- 12. Conclusion… Today, in this fast-moving continuously changing world, the need for goods and services are growing at an alarming proportion due to which there is more competition and competitors ruling in the marketplace. Therefore, most companies adopt different strategies in order to serve their customers in a more good and efficient manner than their competitors. McDonald’s as a brand need to ensure its quality being superior and also need to upgrade its products to remain in the race. Only 15% of the total number of restaurants are owned by the company and the rest of the restaurants are operated by franchises. McDonald’s should always be in the process to implement its quality assurance check on every franchise without any compromise to secure the brand’s name. It is most beneficial for McDonald’s to introduce new deals with continuation to phase out old deals which are at decline stage of Product lifecycle or McDonald’s can also implement revitalization strategy on old deals.
Editor's Notes
- Marketing as a concept is comprised of three fundamental concepts. These are: buyer orientation; a business to put into practice a buyer orientation; and a long-lasting buyer and community welfare (Cohen, 1991). The target of any marketing department of any company is to use correct marketing technique and creating correct marketing message to teach consumers that how would they be benefitted by using their company’s product over other products from different competitors within the societal norms and circumstances. McDonald’s uses different marketing tools with respect to different cultures, such as McDonald’s reengineered their menu and introduced veg burgers for vegetarian Indians to satisfy their appetite.
- A roles and responsibilities of a marketing manager are to observe the market segment before implementing strategy. The strategies of marketing for B2B are different from B2C. A strong brand is important to both B2B and B2C markets, but for different reasons. With B2C, a strong brand can encourage the consumer to buy, remain loyal and potentially pay a higher price. But in B2B markets, brand will only help the company to be considered, not necessarily chosen. McDonald’s has mostly dependable on B2C market segment where there is a direct interaction with customers. Before implementing any strategy by marketing manager, he should consider some questions: Is it profitable? Will it require the introduction of new or modified products? Is the customer and channel well enough researched and understood? The marketing manager uses these four groups to give more focus to the market segment decision: existing customers, competitor customers, non-buying in current segments, new segments. McDonald’s is currently following above mentioned strategy, to focus on market segments. For serving synonymously to the existing customers they are coming up with different menus as per change in taste and preference of their customer. Also by keeping in mind their rivals they are introducing products to compete them e.g. to answer KFC they came up with chicken McNuggets, Chicken select . They are adopting pricing policies for non-buying customer and as well as new segments.
- Benefits of Marketing An obvious advantage of marketing is the promotion of your business; getting the recognition and attention of your target audience across a wide ranging or specific market. Going hand-in-hand with this is the enhanced brand recognition. Over time potential customers and members of the public will begin to associate your logo and your brand with your business. Every business needs to spend money to make money’. Investing in marketing is no different. The most important advantage of marketing is therefore quite simply improving the businesses profits by boosting sales. Costs of Marketing The first disadvantage of marketing in general is the cost. Adverting and marketing costs money. If you don’t do the proper research then you might end up throwing money away. Wasting marketing efforts by targeting the wrong audience using an inappropriate medium would be a serious and costly mistake. So it is important to do your research beforehand and keep your costs to a minimum. As well as the financial cost, marketing your business will require investment of time. Researching the appropriate marketing strategy, designing and writing the adverts, getting them published, dealing with any response. It’s important to spend time keeping track of how successful or not your marketing campaign is. A potential disadvantage of marketing here is the risk of time wasted for an unsuccessful campaign. Research shows that people in general have to see a piece of information between 3 and 30 times before it sinks in. So the obvious disadvantage of marketing here is the fact that your marketing campaign will need to be ongoing and consistent. Increasing costs and time spent on it. This is where drip marketing comes in.
- Current Trends: (1) Social Marketing: It is the umbrella term that covers various activities that fit in technology, social media, and construction of picture and word. Social Marketing needs to be creative to attract more and more people with minimum resources. (2) Relationship Marketing: It is the concept of doing business, a planned orientation that concentrates on keeping and improving current customers rather on acquiring new one. (3) Green Marketing: Now a day, Green products are in a boom and environmental friendly products are encouraged by the society. This type of marketing incorporates a wide range product modifications, activities, packaging changes etc. Future Trends: Mobile App Marketing:Apps may work better for brands which are more transactional, such as Starbucks, rather than luxury and higher-end stores such as Gucci, which the customer may not frequent every week. (2) Livestreaming: If you used Facebook Live, Periscope, or one of the many other livestreaming platforms and tools in 2016, expect to use it more in 2017. “Live video is the cure for synthetic content,” says Tessa Wegert, “and brands that embrace the opportunity to take consumers inside their factories and test kitchens, to their photo shoots and runway shows, and backstage at the concerts and events they’ve been sponsoring for years will be rewarded with increased loyalty and affinity.” (3) Location Marketing: Also called contextual marketing, location marketing is all about hitting the right person with the right message at the right time using geo-targeting, geo-fencing and beacons. When you hook this trend — using mobile devices and augmented reality games like Pokemon GO to track a customer’s location and wearable technology to track their habits and even vital signs — with the personalization trend mentioned above, the possibilities presented to marketers are endless. Not only can you target a customer by location, you can tailor your message to the customer’s stage on the buyer’s journey.
- It is an instrument to analyze the company and its circumstances which helps the marketer to concentrate on vital issues. SWOT stands for strengths, weaknesses, opportunities and threats, whereas threats are negative and opportunities are positive external factors. Conversely, strengths are positive and weaknesses are negative internal factors. Strengths: The largest fast food chain in the world. Makes over $27 billion a year. Locally adapted food menu to market diverse. Partnerships with the best and big brands like coca cola, Heinz ketchup and others. Weaknesses: Negatives publicity, heavily criticized for offering unhealthy food to its customers. Unhealthy food menu. Most low-level employees are under paid and as seen as low skilled. Opportunities: Introduce healthier food. Change customers habits and find new customers group. Use mobile technology to be more trendier. Threats: Expensive lawsuit. Trend towards healthy food. Emergence of local fast food restaurant.
- Penetration is when trying to sell the existing product to existing customer's. For example, by changing packing, pricing, and adding extra features. For example Cadbury in India is pushing for chocolates to be used as small gifts instead of more traditional sweet used during Diwali festival. http://www.marketing-equity.com/2011/09/few-examples-of-ansoff-matrix.html Product Development Is when bring out new product for existing customers, because changing in consumer behaviour. For example McDonald's bring out Salad to retain its existing customers, many of whom were becoming more health conscious. Market Development Introducing an existing products in different markets with few differences to suit that market. It is a very common example when entering different country. For example McDonald's introduced the McArabia a flatbread sandwich, to its restaurants in the Middle East. It use the same chicken patties and every other ingredient as McChicken Sandwich in usa or Europe. Diversification When markets introduce a totally new product to a completely new market, the engage in diversification. Diversification is strategy for company growth. For example McDonald's introduced Mccafe to its menu in 2009. By starting Mccafe McDonald's was offering new products that were not available in traditional McDonald's menu. Which attracts customers that usually don’t come to McDonald’s to eat fast food.