Marketing Management's Ability to Develop and Maintain Successful Transactions with Its Target Customers

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Executive summary

"Macroenvironmental forces The larger societal forces that affect the whole microenvironment - demographic, economic, natural, technological, political and cultural forces." - Kotler et al

Macroenvironmental forces need to be studied by organisations as they can both provide opportunities and pose threats.

The fast-food industry is a consumer service; two organisations that operate in the fast-food industry are McDonald's and Hungry Jack's. McDonald's was chosen because it is the primary operator in this market and holds the greatest market share. Hungry Jack's was chosen because the product they offer is the most similar to McDonald's. I thought it would be interesting to compare marketing strategies of two organisations that offer a fairly similar product.

McDonald's is the market leader both in Australia and throughout the world. Hungry Jack's is positioned more as a market follower.

Companies use target marketing to tailor for specific markets. There are three components involved in target marketing: market segmentation, market targeting and market positioning. McDonald's primary target markets are seniors, adults and teenagers however the most heavily targeted segment is children. Hungry Jack's also essentially segment their market using demographic variables.

The final step in target marketing is developing a marketing mix. These tools are also known as the four P's and in the case of services, the seven P's. They are product, price, promotion, place, people, process and physical evidence.

With the marketing mix of McDonald's compared to Hungry Jack's, the major difference is that McDonald's promote their product using the marketing mix more evenly. Hungry Jack's use many elements of the marketing mix similar to McDonald's, however they are not as heavily promoted and are more interested in promoting the physical product.

Table of contents

CONTENTS

Title Page

Executive Summary

1. Introduction

2. The Macroenvironment

2.1 Demographic forces
2.2 Economic Forces
2.3 Natural Forces
2.4 Technological Forces
2.5 Political Forces
2.6 Cultural Forces

3. Organisations within the fast-food industry

3.1 Market Position
3.2 Target Markets
3.3 The Marketing Mix

3.1 3 Product
3.3.2 Price
3.3.3 Promotion
3.3.4 Place
3.3.5 People
3.3.6 Process
3.3.7 Physical Evidence

4. Conclusions

References

1. Introduction

"Marketed services (consumer services) - A market transaction by an enterprise of an entrepreneur where the object of the market transaction is other than the transfer of ownership (or title, if any) of a tangible commodity." - M. Gabbott, G. Hogg

This assignment will focus specifically on the fast-food industry from within the consumer services area.

"Fast-food - Serving foods that can be prepared quickly, such as hamburgers, frankfurters and fried chicken." - C. L. Barnhart, R. K. Barnhart

The fast-food industry comprises both tangible and intangible components; for this reason the product/target market sits directly in the center of the Product-Service Continuum. If we use McDonald's as an example, the tangible component is the hamburger, fries or item which is purchased. While there is also an intangible element, this is things like the expected level of service from the staff, the ability to have a hamburger cooked "without pickles" if desired, the expected environment of the restaurant, etc.

2. The macroenvironment

"The larger societal forces that affect the whole microenvironment - demographic, economic, natural, technological, political and cultural forces." - Kotler et al.

2.1 Demographic forces

"The study of human populations in terms of size, density, location, age, sex, race, occupation and other statistics." - Kotler et al.

The demographic environment is of great importance to marketers as it involves the study of people, and it is people that make up markets. There are a number of...
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