At this point the marketing mix is put together.
The product life cycle
The important thing to remember when offering menu items to potential customers is that there is a huge amount of choice available to those potential customers with regard to how and where they spend their money.
Therefore McDonald’s places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is.
However, customers’ requirements change over time. What is fashionable and attractive today may be discarded tomorrow. Marketing continuously monitors customers’ preferences. In order to meet these
changes, McDonald’s has
introduced new products and
phased out old ones over
time, and will continue to do
Care is taken not to adversely
affect the sales of an existing
option by introducing a new
option which will cannibalise
its sales (trade off).
McDonald’s knows that sales
of products on its menu will
vary at different points in their
life cycle as is illustrated on
the graph to the right.
Services Talking Point Apprenticeships
Marketing at McDonald’s
The type of marketing undertaken and the resources
invested will be different depending on the stage a product
has reached. For example, the launch of a new product will
typically involve television and other advertising support.
At any time a company will have a portfolio of products, each in a different stage of its cycle. Some of McDonald’s options are growing in popularity while arguably the Big Mac is at
the ‘maturity’ stage.
The customer’s perception of value is an
important determinant of the price charged.
Customers draw their own mental picture
of what a product is worth. A product
is more than a physical item; it also has
psychological connotations for the customer.
The danger of using low price as a marketing...