m1 intro to marketing
I will be explaining the similarities and differences between my two chosen businesses, Sony and McDonalds. I will be doing this analysing through Ansoffs matrix, branding and then relationship marketing.
Market Penetration: Market penetration is used by both businesses, they sell their existing products on to their existing markets, they both do this as they offer loyalty bonuses, this gets them all more sales and reduces the risk of getting new products on to the markets and them all failing, the main difference between the two during market penetration is the way they both advertise, Sony constantly advertise their products, even if they are old and a new product is just about to hit the market, on the other hand McDonalds don’t advertise existing products, they do smaller advertisement through doing special deals on the back of bus tickets and doing loyalty schemes. The pros of McDonalds doing smaller advertising is that it costs less, with the cost less there is more of a chance of them making profits, the disadvantage of the small marketing is that not as many people will see it, as they advertise on the back of the bus tickets, only people that get the bus will be able to see it, this is a lot less than most of the population watching TV. For Sony still advertising existing products, this does cost a lot of money as all their advertising is done on TV and none of smaller methods, it does cost a lot of money, with a lot of money they use this will get their profits down but will attract a lot more customers.
Market Development: The product is present, but in a new market, companies need to then advertise the product again to gain even more customers than they originally have, this ends up costing a lot of money, but does result in a large amount of sales which will further result in more profit. Sony did the new advertisement for the PS3 before the latest console PS4 came out, they did this to boost sales before the latest product. The difference between
Market Penetration: Market penetration is used by both businesses, they sell their existing products on to their existing markets, they both do this as they offer loyalty bonuses, this gets them all more sales and reduces the risk of getting new products on to the markets and them all failing, the main difference between the two during market penetration is the way they both advertise, Sony constantly advertise their products, even if they are old and a new product is just about to hit the market, on the other hand McDonalds don’t advertise existing products, they do smaller advertisement through doing special deals on the back of bus tickets and doing loyalty schemes. The pros of McDonalds doing smaller advertising is that it costs less, with the cost less there is more of a chance of them making profits, the disadvantage of the small marketing is that not as many people will see it, as they advertise on the back of the bus tickets, only people that get the bus will be able to see it, this is a lot less than most of the population watching TV. For Sony still advertising existing products, this does cost a lot of money as all their advertising is done on TV and none of smaller methods, it does cost a lot of money, with a lot of money they use this will get their profits down but will attract a lot more customers.
Market Development: The product is present, but in a new market, companies need to then advertise the product again to gain even more customers than they originally have, this ends up costing a lot of money, but does result in a large amount of sales which will further result in more profit. Sony did the new advertisement for the PS3 before the latest console PS4 came out, they did this to boost sales before the latest product. The difference between