In this assignment I am going to evaluate the concepts and principles applied to the marketing of products by McDonalds and make recommendations.
Marketing Concept strengths and weaknesses.
Production Concept: The production concept is the process of making and distributing the products to the business outlets. Some businesses only focus on its production process rather than the distribution process. The whole production concept consists of quality control of the product, testing and measurement of the product. The marketing concepts strengths are that it allows McDonalds to focus on specific four stages. McDonalds are able to justify the stages of its products and the business. It enables McDonalds to understand their product specifications, quality of the product, product volume, product appearance and the consistency of the product. The distribution concept enables McDonalds to distribute its products to different outlets within the world and this increased demand of certain products. With the production/distribution McDonalds can satisfy customers needs regardless to their demographic segment. This shows that they have met their aims and objectives of and these aims and objectives could have further development in order to remain successful in the fast food industry market. In reality the production concept does not really have an impact on McDonalds business activities because they do not really concentrate as they think it is not necessarily to their sector. The reason that McDonalds does not really concentrate on the production concept because it saves them additional money for distribution which is more effective and has a positive impact on McDonalds business.
Selling Concept: This is when a business persuades, informs and encourages customers to purchase their products through aggressive promotion. McDonalds uses the selling concept because customers know about their prices and products, that is because it suits every segment, the products are affordable. Also the promotion techniques McDonalds use are very effective and this increased demand of a product and a larger customer base, this is because McDonalds has always tries to keep customers interest on a high level. McDonalds use vouchers as part of their promotion, these vouchers are often given on busy days in town. These vouchers last for a long while and this increased the customer base because McDonalds base their selling campaign of its overall brand and lifestyle. McDonalds is already successful selling its products because they make people aware of the quality of their products. Also the menu counters are also part of their promotion and this helps customers to have a clear remembrance of McDonalds products because they are descriptive and eye catching. The menu counters helps to give a feel about the product before it is been purchased. This also makes McDonalds business look more distinctive as well. McDonalds segments its market by using policies of cheap prices and by the characteristics of its products. The selling concept plays an important role of McDonalds business because they use aggressive and rational promotion such as advertising to encourage and persuade consumers to purchase a product from McDonalds. The selling concept combines with the marketing mix and promotional mix because McDonalds adapt the products they offer, the price, the place, where it would sell best, and the type of promotion they would need to gain the specific target audience interest. The selling concept increases the brand awareness of McDonalds. With the selling concept it enables McDonalds to increase its customer base because they use different types of methods of promotion to reach its segment and customers have become more familiar with McDonalds brand. For example at the end of 2003 McDonalds launched a new menu called the Pound Saver menu; the menu represents great value and savings on selected items on the menu. The majority...