Essay
Level 3 BTEC Business Unit 3 P1,M1,D1 [1st Year]
- Institution
- Pearson (PEARSON)
Essay of 12 pages for the course Unit 3 - Introduction to Marketing at PEARSON (-)
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Task 1: Know the role of marketing in organizationsIn this task, I'll be looking at two different businesses. The two businesses that I'll be
doing is McDonalds and Adidas. I'll be describing how the marketing techniques
are used by two of these chosen organizations. I'll be describing the purpose of
these organizations of why they use marketing techniques to expand and become
known across the globe. I'll be also comparing the similarities and differences
between two organizations regarding the marketing techniques. I'll be describing
the limitation and constraints of marketing. Ultimately I'll be evaluating the
effectiveness of each marketing techniques used in the organizations.
Task 1 (P1)
Marketing is a role of individuals or organizations to sell products or services to
other firms or businesses then they resell them, and use their products or services
to support their income and work. Many huge companies do use other services and
products to sell them and start their own business and make it successful by
introducing growth strategies to gain maximum profits and compete against other
neighboring competitors.
Growth strategies is when an organization tries to gain maximum profit from their
services and products. Therefore they want a increase in market share and profit. In
order to increase the market share and profit, the company needs to take into
account with the 4 growth strategies factors. The four growth strategies factors are,
Market penetration, Market development, Product development and lastly
Diversification. Organizations can expand their profit margins by modifying prices,
services and advertisements. McDonalds market their products (Food) through
various ways such as advertisements, billboards, leaflets, and posters. Everywhere
you go you'll see information about McDonalds because it's the worlds leading fast
food company and it's everywhere you go, and it operates in more than 120
countries. There are also discount vouchers in leaflets and newspaper to bring in
more customers into McDonalds. That's one growth strategy for McDonalds to
expand their customers, and profit.
Whereas Adidas market their products by sponsoring famous and known athletes
and using them to promote their products. This is a growth strategy Adidas has to
maximize profit with the minimum loss. For example Adidas Sponsored Lionel Messi
because he is famous and known by Millions of people which follow him, so Adidas
sponsored Lionel Messi and this Increased sales of Football trainers and other
accessories. Adidas also sponsored other famous athletes to promote other of their
products in the sports industry.
Market penetration is when selling a more known products into a market that
already exists, often by increased promotion or price reductions, for example on the
internet.In a fast food industry, McDonald's could enlarge the rate of purchase
, through an advertising operation that can give consumers a reason to go to the
business more often; they could rise the price of "value meals" the more the
customers come, they could use these market actions to increase and attract
customers from other fast food restaurants. Lastly they could use marketing actions
to get new consumers in the fast food market by creating a new idea that will suit
their needs and prices. For Example McDonald's had a strategy for this summer. The
idea of the market penetration is to sell more of their current products in the
existing market, and it's low risk because the companies knows it very well. What
McDonald's is planning to do is to offer soft drinks because in summer it's hot and
everyone needs a soft drink for a cool down. So McDonald's will drop their price to
$1 and you can buy any sizes of drinks. The purpose of this is to increase customers
and this will eventually make the company gain profits, and new customers from
other restaurants. Therefore this will increase customers to buy soft drinks, and this
will make them purchase other products too. Once McDonald's has captures a lot of
regular customers they will introduce new ideas such as frappes, smoothies and ice
coffees.
Adidas uses market penetration to penetrate into new markets and this brings
loads of good things to the company. The company shouldn't change it's product to
enter the new market instead it should the products and customers that already
existed. Penetrating the new market will increase sales and customers. The strategy
can attract new customers, and ensure that all customers will receive good quality
products and excellent customer service. It can also gain customers who are not
using the product, and are using something else for example Nike. The way the
company can attract more customers is by giving out informative advertisements
and offering good prices on products. For example Adidas developed a new trainers
which was worn by Messi, and this increased sells because a lot of people
purchased it, but the price of the trainer was expensive. 1-2 years later Adidas
existed the same football trainer but it was sold at a cheap, and affordable price
therefore the sales went up which increased profit and more customers. This
example goes according to other sports products not just football trainers.
Market development involves in taking existing products or services and putting
them into new markets at the same time. McDonalds has expanded internationally,
therefore it has created products that meets consumers needs in the local markets.
For example, In Netherlands they have developed a type of burger called
"McKroket" which is a typically Dutch kroket which is deep fried, and ragout filled
patty and all this is essential to meet the consumers needs. In the Canada,
McDonalds offers Poutine because, Poutine is a traditional dish which is consumed
by nearly everyone in Canada. They have also developed McLobster, which is a
lobster roll. This strategy make sure that local customers have food to their needs
and qualities. In addition to developing new products, McDonalds will use a
strategy to modify the ingredients so it matches the customers health and needs.
For example, In India the Big Mac has beef in it and Indians are not allowed to
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