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Title: Marketing
Description: Btec Business level 3 marketing unit. Awarded a distinction grade for this assingment.
Description: Btec Business level 3 marketing unit. Awarded a distinction grade for this assingment.
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Alex Fisher
Investigating marketing techniques
Introduction
I work as a Marketing Manager for a top marketing company
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The businesses I will be looking at are McDonalds and Apple
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This also includes finding more out about their market and customers and
advertising their products to gain interest
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These targets should be achieved within a
certain time frame
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Organisational objectives are the main
goals, purpose and mission of a business that have been established by the management
and then communicated to the employees
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Next there is offline marketing this covers any advert that is placed
outside of the internet for example a billboard advert
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Ansoff Matrix
The Ansoff matrix is a tool that business use in order to plan out future growth of their
business
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These segments are:
•
•
•
•
Market penetration
Diversification
Market development
Product development
How Mc Donald’s have sued the Ansoff matrix
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They have also introduced a delivery service again
catering for people who live busy lives and need that easy and quick service
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Mc Donald’s have
used product development through introducing new products to their stores such as the
pizza mc puff and the mc Arabia chicken to cater for the Arabian Mc Donald stores
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Next Mc Donald’s have used market
development by introducing stores into countries that have never had a Mc Donald’s before
for example in 2015 Mc Donald’s opened their first store in Kazakhstan
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Another way they have managed to use market
development is through there clever pricing strategy depending on the economy of the
country that the store operates in
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80 which people can afford
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62 this means that Mc Donald’s products are affordable to a large customer base
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Mc Donald’s have
introduced Mc café which aims to allow them to compete with Starbucks and costa
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How Apple have used the Ansoff matrix
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They have used market penetration through the fact that they release a new iPhone every
12 months this adding to the variety of their existing products on offer meaning that
customers have more choice to choose from
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This therefore attracted
customers who may already have had an iPod to by the iPod shuffle as they saw it as more
convenient and more portable
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Finally, Apple have sued
diversification they have done this through many different ways perhaps the most
successful way Apple did this is through iTunes
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Apple have also expanded into different markets as well though through
there Apple Tv and even into watches this therefore attracting more customers to their
products and therefore increasing the sales that apple make
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If a business successfully uses branding well it
can give the business a useful market advantages over there competitors
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Brands do have an impact when it comes to the customers though process on whether they
want to purchase the product or not
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Brand extensions
Brand extensions are where the business decides to introduce new products in order to
increase their sales
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Successful example of brand extensions
would be Virgin
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This greatly increases Virgins sources of profits as they have more
products and services that can potentially make them a profit
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This position is often
based on the opinion of the customers and what they think of the brand
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Or for example
Apples market position would be that they are innovators of technology and that their
products are premium quality and smart
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Relationship marketing and lifetime value
Relationship marketing is when a business tries to build up their relationship with their
customers, they try to do this through their marketing activities
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Lifetime value is the
term used by a business which aims to determine the total revenue a business can get from
a customer over the course of their “lifetime”
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Firstly, there
restaurants have a fun and family atmosphere to them, they achieve this through the
colours used and layout, as Mc Donald’s try to cater to families as they often come into
stores in at least 3 therefore that’s at least 3 customers at a time meaning more sales
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Mc Donald’s emphasise how their
products are fresher and that they use British suppliers and support farmers this is a positive
for their customers as they want to support the farmers and so by buying Mc Donald’s
products the customers feel like they are doing a good thing
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Apple attempts to do relationship marketing in a different way to Mc Donald’s
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Therefore, they aim to make their
products as reliable as possible as if the customers have an Apple product that doesn’t work
effectively then they will not buy another which is exactly what Apple does not want
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So, if you are treated with respect then the
customers feel better the staff aim to unleash the inner genius of the customer
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Apple focus on what the customers want and when
they release their newest product, they make sure they have identified what the customers
are after from it and try to include it that way the customers will be much more likely to buy
the product
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Marketing constraints
Marketing constraints are laws that prevent businesses from taking advantage of their
customers
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The consumer protection act- This law prevents suppliers asking for payment for products
that you haven’t asked for but may have received
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The person who has received the sweets also doesn’t have to
send the sweets back
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The goods sold must be of
satisfactory quality and must work and be fit for purpose
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Under the sales of goods act the customer who bought the product has up to 6 months to
return the product as long as it does not meet on of the regulations mentioned before
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Finally, it is the retailer’s responsibility not the manufacturer of the good
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The data protection act- This law outlines how businesses can and can’t use your personal
information
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They must
also not keep it for any longer than they need to keep it
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Consumer credit acts-The act aims to protect anybody who buys goods on credits
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Businesses must allow the
financial ombudsman service to help the customer if the customer falls behind on their
payments
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Consumer protection from unfair trading regulations- This law prevents marketers from
using aggressive sales tactics in order to achieve sales form the customer
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Examples of things that the marketer can’t lie about are advertising products that don’t
exist
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What is ASA?
The advertising standards authority is the UK’s independent regulator which monitors
advertising across all media
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The punishments that ASA can impose are ask the TV, radio and publisher to take down the
advert that is causing a problem
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Finally, the most severe punishment is that they can refer the advertiser to the
office of fair trading to potentially face prosecution
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The advert featured a cowboy with a
razor and a gun and so the regulator got the advert moved to a 9pm showing as it was
believed it was harmful to children and trivialised gun and knife crime
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They I’m to make people aware of the issues they have in order to gain
support this can lead to the businesses gaining a bad reputation and negative publicity
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Some examples of pressure groups are:
• Fathers for justice
• Greenpeace
• Campaign for real ale
• Action on smoking and health
• People for the ethical treatment of animals
The impact that pressure groups have on businesses is that they lead to businesses receiving
bad publicity for the mistakes that they are making
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Comparing how Mc Donald’s and Apple have used Ansoff matrix
Both Apple and Mc Donald’s have achieved major growth as businesses and both are still
using the Ansoff matrix in order to grow and develop their businesses
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Apple have gone
into technology related markets such as TV and watches whereas Mc Donald’s have decided
they want to enter healthier markets due to the changing market of food and customers
caring more about the food they are eating
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Apple have managed to add more applications to their products to
improve customer satisfaction they have also manged to improve the specifications of their
products for example the camera on their iPhone
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Mc Donald’s have also added competitions like
monopoly which creates a hype around going to Mc Donald’s in an attempt to win the prizes
which to do this customer must buy a Mc Donald’s product
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Use of product development-Both Mc Donald’s and Apple have used this and improved
their products by adapting them to market trends
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However, when it comes to the difference’s Mc Donald’s are regularly releasing
new products such as taste of America this satisfies more customers and although Apple are
innovating and releasing new products, they do not do it as often as Mc Donald’s this may
be to do with the effort that is required
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However, the two
have done it differently Mc Donald’s have only just recently started to enter the online
markets whereas Apple have only just started going into some countries this could be to do
with Apple being a much newer businesses than Mc Donald’s
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Apple have diversified there businesses much more than Mc Donald’s though
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Whereas Mc Donald’s have
stayed with food although diversified into things such as the mc café and they did attempt
to enter the hotel market but that didn’t work out to well
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Apple and Mc Donald’s have both used distinctive logos that are very easily recognised by
people all over the world
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Mc Donald’s have branded slightly differently Mc Donald’s have
branding on everything they produce just to boost their influence in people and so they are
constantly in the public eye to encourage people to purchase something from them
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Due to the reputation of Apple and what they produce they have been able to explore many
new and emerging markets from Tv to music meaning they have been able to satisfy many
customers
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They have also extended to cafes in order to
compete with Starbucks and Costa which could be a success
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Apple are seen by
the customers as being premium and innovators in technology and due to this and the
loyalty customers have to them and their reputation, they can charge premium prices for
their products because they know people will purchase them
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The differences are clear Apple are seen as
premium and luxury whereas Mc Donald’s are seen as not being the highest quality but
tasty food and fast service whilst also having family orientated restaurants
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I believe that Mc Donald’s have used the Ansoff
matrix effectively in some respects however certain parts they could improve
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Mc Donald’s have also launched online ordering
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Sales and profits allowing Mc Donald’s to grow even more
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The second way that Mc Donald’s have used the Ansoff matrix effectively is that they have
been able to effectively develop their products in order to change with consumer demands
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This is good for Mc Donald’s as
it means that by developing their products which they offer to customers they have been
able to satisfy more customers and also improve the quality of what they are selling
meaning that customers enjoy the experience more and are much more likely to come back
and that will therefore lead to more sales and an increase in profit for Mc Donald’s
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They as a business
have not been able to diversify their business enough
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The reason for this could be to do with the reputation
that Mc Donald’s have built up on them being cheap not the best quality potentially not the
healthiest but nice food
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The fact that Mc Donald’s haven’t been able to diversify their business is a
bad thing because it means that they are limited to one specific market limiting the profits
that they are able to make
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If the fast food industry was to
shrink and there was less demand for fast food, then Mc Donald’s would be severely
affected as they have no other products in other markets meaning they have nothing to fall
back on
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This is essentially the way that Mc Donald’s encourage
existing customers to increase the number of products they buy
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In the
modern age social media is a great tool for businesses to promote their products and the
fact that Mc Donald’s don’t do this as much as other businesses could mean they are really
missing out on potential sales and therefore their profits are not as high as they could be if
they did do this
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So social media is the best way for Mc Donald’s to
attract these types of age groups and such a big customer base would be useful for Mc
Donald’s as it would provide more sales
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By using it Mc
Donald’s have effectively been able to develop their products to make them more desirable
to their customers
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By creating new products that they believe customers want
using feedback from the customers this has meant that the customers are much more likely
to want to buy the products on offer and therefore Mc Donald’s will sell more therefore
meaning the business can continue to grow
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I do believe
that Mc Donald’s should try to diversify their business if they can into another market as I
do see fast food becoming more and more frowned upon for being unhealthy and if people
stopped buying it then Mc Donald’s would be in trouble
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In
conclusion though I do believe that Mc Donald’s have used the Ansoff matrix well as it has
allowed them to develop their products and make them better and more attractive to
consumers and it has allowed them to enter many new markets like online and emerging
countries meaning they can capitalise on peoples new found wealth
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Effective
Mc Donald’s use of branding is extremely effective
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Mc Donald’s have managed to establish with customers that
no matter when you go into a Mc Donald’s you will get exactly what you order they have
created the reputation for consistently tasty food which for any restaurant is very important
as ultimately that is what will bring customers back to the store
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For example, there food is perceived by customers as being
cheap and unhealthy which ultimately may put people off buying it
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Evaluation on Mc Donald’s use of brand extensions
Title: Marketing
Description: Btec Business level 3 marketing unit. Awarded a distinction grade for this assingment.
Description: Btec Business level 3 marketing unit. Awarded a distinction grade for this assingment.