UNIT 3: INTRODUCTION TO MARKETING
In this task I am going to describe how marketing techniques are used to market products in two organisations I have selected which are Tesco and MacDonald’s.
Tesco is an international grocery and a general merchandising retailer in the United Kingdom. It’s the third largest retailer in the world and the second largest by profits. There are Tesco stores in fourteen countries in North America, Asia and Europe. Tesco are also known for being the grocery market leader in United Kingdom McDonald's is the world's largest chain of fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain. McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. Marketing defines the social process by which groups and individuals obtain information so they can produce products/ services which are demanded by consumers to satisfy them by meeting their needs and requirement.
There are three types of marketing techniques which are growth strategy, survival strategy and branding strategy.
Growth strategy is the best known description of the strategies for growing a business in 1957. Growth strategy has been identified into four categories which are market penetration, market development, and product development.
Market Penetration defines consumers who are likely to purchase a product, for instance if you were producing video game for the Playstation3 to be sold in the USA, your market would consist of people in the USA who owned Playstation3 consoles. You can grow your business by increasing the number of people in the market who purchased your product.
Market Development defines when a company markets an existing product to a new market, such as a Playstation3 games, you might sell your product in England. There have been no changes to the products. It’s just being sold to a different market.
Product Development defines when an organisation develops a new product to sell to sell to existing customers.
Diversification defines when a business markets new products to new customers. The organisation may produce a new product in an area that it understands or it may enter a completely new unrelated area.
MACDONALD’S & GROWTH STRATEGIES
Market penetration is one of the strategies Macdonald’s can use for growth. Macdonald’s sells existing products which are fast food to the market such as Burgers and chips. Both the consumer and products that are being sold which are fast food stay the same. The reason for this is because Macdonald’s sell the regular food mostly to the regular customers. The risk is also less for the business to fail, the reason for this is because Macdonald’s knows the market and the market knows the products which are fast food being sold by MacDonald’s.
Market development is another strategy Macdonald’s can use for growth. Macdonald’s can sell existing products in a new market which are the specific fast food they are required. For instance Macdonald’s may decide to open up another store in a new destination such as in another country or sell in another region. Market development is actually quite risky if u doesn’t research on your new market the reason for this is because you must understand the new market where you will be selling your existing products.
Product development is the third strategy which could be used to grow MacDonald’s. MacDonald’s could sell their new products to an existing market. But before they start planning to produce the new product it is vital that they carry out research and development in order to come up with a new product...
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