Marketing Techniques and their Effectiveness Essay Example
Marketing Techniques and their Effectiveness Essay Example

Marketing Techniques and their Effectiveness Essay Example

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  • Pages: 13 (3422 words)
  • Published: March 20, 2018
  • Type: Case Study
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The primary objective of this product is to fulfill the requirements of Coca Cola's current customers.

  1. Market development is when a company improves its already existing product r service In order to appeal to a  new type of customer.
  2. An example of McDonald's using market development Is when they created the Saver Menu. This menu consisted of products that they were already selling but they changed the price to under El. This was to appeal to students and people who were eating on a budget.

Coca-Cola employed the market development strategy by introducing the Coca-Cola Share Size 1 2 liter bottle, which is essentially the same beverage as the larger 2-liter family-sized version. However, it comes in a smaller bottle to target smaller households.

  1. Market

    ...

    penetration Is when a company promotes an existing product to its existing market.

  2. McDonald's uses the market penetration strategy with their Happy Meals. The Happy Meal is a child's meal that comes with a drink and a free toy packaged in a colorful box.
  3. To maintain customer interest and encourage return visits, this company appeals to a specific market by changing the box theme and free toy every 8 weeks.

    1. An example of Coca Cola using market penetration Is when they launched Diet Coke, this is a Coca-Cola drink although sugar was taken out of the recipe and replaced with sweeteners. Diet Coke was launched to target Coca Colas existing market by giving them a healthier alternative to the Coca-Cola drink.
    2. Diversification is when a company creates a new product and promote
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it to a new market.

  • An example of diversification being used in McDonald's marketing strategies is when they launched MacAfee in the United States. MacAfee is a coffee shop similar to brands such as Struck serving products Including cappuccinos, espressos, mochas, frappes and Iced fruit smoothies. This Is diversification because MacAfee is not targeted at the fast food eating McDonald's customer base and is not 1 org An example of Coca Cola using the diversification strategy was when they created Powered.
  • Powered is a distinct and improved energy drink, separate from Coca Cola's assortment of sugary soft drinks. Its creation was aimed towards individuals who engage in sports or physical activity. The focus of brand building and positioning is significant for Powered.

    1. Overall, branding can be defined as creating a name and image that customers can instantly recognize and differentiate against other products.
    2. Branding is important to McDonald's and Coca-Cola because their customers identify the logo or name of the company and they instantly have an expectation of the product or arrive that they will receive, no matter what country they are in.

    Companies can retain their customers by building trust in their brand.

    1. Organizations also need to be aware of buyer behavior which can be defined as the study of different types of consumers and how they purchase products.
    2. Buyer Behavior is the study of how consumers select and purchase products or services. The first stage of Buyer Behavior is need recognition and product awareness, this is where the consumer identifies a problem or that they need/want a certain

    product.

    The purchase process involves several stages for consumers. Initially, they search for information to gather research on the desired product. Subsequently, they compare prices and research other companies to assess different alternatives. Once a decision is made, the consumer proceeds with purchasing the product. Following its usage, a post-purchase evaluation takes place to evaluate satisfaction with both the product and service received. Feedback forms or surveys are frequently utilized for this assessment.

    Both McDonald's and Coca Cola place significant importance on comprehending buyer behavior. This understanding enables them to determine which products to offer and how to effectively market them. Neglecting to analyze buyer behavior would result in these companies introducing new products without knowing how to promote them or ascertain their potential success.

    Brand building in marketing involves creating a unique identity that differentiates a company from its competitors. It occurs when a company identifies an opportunity and establishes itself as a recognized brand within that specific market.

    Brand extension is the act of an established brand utilizing their name or trademark on new products in order to boost sales. Both McDonald's and Coca-Cola recognize the significance of brand building, brand positioning, and brand extension in establishing and sustaining their brands. Brand building and brand positioning serve as vital principles to ensure consistent high quality and adherence to brand promises.

    Brand extension is crucial as it decreases the likelihood of a new product failing by associating it with an existing and established brand.

    Both McDonald's and Coca Cola have successfully employed similar strategies to enhance their brand recognition. McDonald's, for instance, has developed their brand with the iconic golden arches and the

    catchy slogan 'I'm Loving it'. Similarly, Coca Cola has gained worldwide familiarity through their universally recognized logo and their renowned Christmas advertisements, which have firmly established the brand as a household name.

    Relationship marketing is a strategy where organizations offer personalized and friendly service to establish customer trust, with the goal of promoting repeat business. Although it may not result in immediate profits, relationship marketing aims to create customer satisfaction and foster loyalty over time. Satisfied customers are more likely to recommend the company's services to others and may continue using them as their parents did when they have children.

    Coca Cola enhances the personalization of their bottles by printing people's names on them, accompanied by the slogan 'share a coke with'. This strategy aims to create a more customized experience for consumers, instilling a feeling that the product has been specifically tailored for them. These individually printed bottles are typically available for purchase in random locations. Moreover, Coca Cola provides a service allowing customers to order a glass coke bottle with a chosen name printed on it. Additionally, Coca Cola operates an incentive program called Coke Zone, which rewards loyal consumers with opportunities to enter prize draws and receive complimentary gifts. This initiative motivates individuals to continue purchasing Coca Cola products in hopes of winning prizes and enjoying additional rewards.

    McDonald's employs a loyalty-type program with a monopoly theme, where purchasing their products offers opportunities to win prizes. Additionally, McDonald's emphasizes its association with children, providing training to staff regarding the importance of catering to youngsters. They also offer free toys with their happy meals, ensuring repeated visits. In contrast to relationship marketing, McDonald's

    employs transactional marketing, prioritizing single transactions for maximizing sales efficiency and volume, without establishing a connection with buyers.

    Both Coca Cola and McDonald's employ transactional marketing tactics. Coca Cola delivers its bottles to retail stores, which subsequently sell them directly to consumers. Similarly, McDonald's offers drive-through services where customers can conveniently place their orders via radio and receive them promptly, with minimal interaction between the server and customer.

    Task 2: (MI) This task involves comparing the marketing techniques of Coca Cola and McDonald's, two prominent organizations in their respective retail markets.

    Both companies use various marketing techniques, such as relationship marketing and transactional marketing, to establish their brands. While some of these techniques are similar, others vary. Initially, both companies primarily used transactional marketing. However, it is relationship marketing that has significantly influenced their development into the renowned brands they are today. For McDonald's, customer interaction during the purchasing process is typically limited. The food is prepared swiftly, and there is no further communication with McDonald's staff once it is received.

    Coca-Cola operates in the secondary sector through the manufacturing and sale of its product to retailers, who then sell it to consumers. McDonald's has effectively established itself as a family-friendly restaurant by utilizing its mascot, Ronald McDonald, and its attractive happy meal offerings. They have successfully employed relationship marketing strategies to rebuild trust and loyalty from an early age among their consumers. On the contrary, Coca Cola initially portrayed a more adult image during the late 1970s in their advertisements, which featured young women enjoying Coca-Cola drinks served on ice at bars in the sun.

    In the 20th century, Coca Cola aimed to

    establish a more family-friendly image and began airing their Christmas advertisement. This ad quickly became a beloved tradition for eight decades and played a significant role in shaping the modern portrayal of Santa Claus. The Coca Cola advert has become inseparable from Christmas, with many people feeling that it's not truly Christmas without seeing it. This strategic association exemplifies relationship marketing as Coca Cola successfully linked its brand to the holiday season, transforming from a refreshing summer drink into an essential part of the festive period.

    Coca-Cola and McDonald's have employed marketing strategies that have gained popularity among children, albeit with an unhealthy reputation. However, as children are unable to independently make consumption decisions until later in life, these companies also need to target parents.

    Coca-Cola has created sugar-free products like Coke Zero to assure parents about giving their children Coca-Cola products. This allows children to have the fizzy drink they desire while making their parents feel at ease. Similarly, McDonald's has adopted a market diversification strategy and introduced their own coffee line. This enables parents to enjoy a coffee while accompanying their child who wants a happy meal.

    McDonald's has introduced fruit and vegetable choices in its Happy Meals to address parents' worries and attract them towards the product. Nevertheless, children are still enticed by the engaging packaging, complimentary toys, and the delightful atmosphere of vibrant McDonald's restaurants. On the other hand, Coca-Cola broadcasts diverse TV ads showcasing young individuals relishing outdoor activities while consuming Coca-Cola. McDonald's commercials primarily target children whereas both Coca-Cola and McDonald's possess remarkably similar loyalty programs.

    McDonald's runs the Monopoly campaign, where customers are automatically entered into a prize

    draw with every product purchase. Some prizes are as small as a free meal. The goal is to encourage repeat visits, as winners often bring along friends who pay for products that enter them into the prize draw. However, participating in the prize draw requires customers to send a text message and wait to claim their prize, which lowers its effectiveness compared to instant-win promotions. Consumer behavior has recently shifted, with people becoming more health-conscious than ever before. As both Coca-Cola and McDonald's have faced negative media attention regarding their unhealthy image, they were at risk of losing loyal customers. To address this, McDonald's implemented the product development strategy by introducing a salad menu. This move aimed to make customers feel more comfortable indulging in a McDonald's burger by offering a salad option alongside it.

    Coca-Cola identified an opportunity in the market to create a sports drink that would appeal to the growing trend of healthy living and gym-going. They created their own sports drink called 'Powered' as a way to diversify their products. Overall, both McDonald's and Coca Cola have effectively utilized various successful marketing techniques. However, relationship marketing and innovative television advertising have played significant roles in the success of both companies.


    Task 3

    (UP) Marketing companies such as McDonald's and Coca-Cola encounter numerous limitations and constraints when promoting their products and must have a thorough understanding of the existing laws and regulations in today's market. One of these regulations is the Sales of Goods Act 1979.

    The Sales of Goods Act details the laws concerning the sale of goods and customer rights. It mandates that goods should be appropriate

    for their intended use, as described, and of satisfactory quality at the time of purchase. The Consumer Protection from Unfair Trading Regulations 2008 provides safeguards against unfair or deceptive trading practices, misleading promotions, and unethical sales methods. For example, if a store advertises a closing down sale but continues to operate, they would be in breach of these regulations. The Consumer Credit Act 2006 aims to promote fair lending practices and regulate interest rates.

    The purpose of the act is to resolve disputes between consumers and UK financial businesses, such as banks, insurance companies, and investment firms. The Data Protection Act 1998 governs the use of individuals' personal information by organizations, businesses, or the government. Its aim is to ensure fair, accurate, and relevant use of information while maintaining its safety and security. These laws promote fairness in the market for both consumers and businesses. Non-compliance with these regulations by companies like McDonald's and Coca-Cola can lead to severe consequences, including custodial sentences based on the offense.

    Negative publicity can greatly impact a company, especially in terms of consumer trust. The Advertising Standards Agency (ASA) is an independent regulator in the UK that takes action against misleading or offensive advertisements. Language is important in advertising as it engages consumers, but acceptability depends on factors such as the target market and context.

    Coca-Cola and McDonald's cannot promote themselves as healthy due to their high fat, high sugar products with little nutritional value. Violating advertising regulations can lead to consequences like being barred from airing ads or losing investment. In severe cases, legal prosecution may occur.

    Pressure groups like The Food Commission have influence over McDonald's and Coca Cola, pushing

    for healthier choices and ingredients in their products to improve public health.PETA advocates for enhancing livestock welfare at McDonald's.

    Consumerism is a social movement that empowers consumers and enhances their significance over businesses. This inclination can lead organizations to become more compliant, although it may impact production costs, subsequently affecting profit margins. Consumerism could influence McDonald's and Coca-Cola to adopt politically correct advertising approaches and be cautious in product marketing due to the growing public concern for ethics and the environment.

    Task 4: The effectiveness of marketing techniques in one organization that utilizes a variety of strategies needs to be evaluated.

    The text discusses the evaluation of McDonald's marketing techniques and strategies. Being the sixth-largest brand globally, McDonald's is renowned for its affordable fast food and pleasant environment. The company has established its brand by maintaining consistency across all its restaurants, offering iconic products, efficient service, and lively ambiance. This marketing approach has proven successful with the instantly recognizable golden arches that symbolize McDonald's and foster consumer trust regardless of their location.

    McDonald's is an international company that maintains consistency across its restaurants. However, it also adapts its business and menu to cater to local markets. In Japan, McDonald's goes by the name Nostradamus, which is more appealing in the Japanese context. In India, where Hindus do not consume beef, McDonald's replaces beef with chicken in their Big Macs. This 'global but local' strategy allows McDonald's to appeal to a wide range of customers without isolating specific cultures. McDonald's primarily targets children in their marketing efforts. They leverage their fun image, the popular mascot Ronald McDonald, and offer free toys with Happy Meals to attract

    children. In 2009, McDonald's reported total worldwide sales of $30 billion, with 10% of those sales coming from Happy Meals. The inclusion of free toys related to recent movies and popular cartoon characters helps McDonald's keep their promotions exciting and up-to-date, ensuring customer loyalty.

    McDonald's has faced criticism for targeting young children in their advertising, a practice that is effective due to the susceptibility of younger individuals and their limited understanding of health consequences. This strategy aims to create an emotional connection with the brand from an early age, which often persists into adulthood and influences future generations. It is important to note that while children are the primary focus, they rely on their parents to take them to McDonald's restaurants. Convincing parents to visit a chain known for its unhealthy menu presents a significant challenge; however, parents are motivated by an emotional desire to fulfill their children's wishes for Happy Meals.

    The Happy Meal can reluctantly attract parents because it is relatively cheaper and provides a more filling meal compared to a supermarket sandwich. Families on a long journey or a shopping trip are more likely to choose to dine at a McDonald's restaurant and enjoy a family meal for less than Ell, rather than spending more on supermarket snacks and having to sit outside without the enjoyable atmosphere and free toys to keep their children entertained. According to the Technetium Report Brochure's chart on the "Nine Mom Segments," 12% of the 1500 surveyed mothers spend the majority of their time on the go, while 13% are single and stressed. This is an ideal match for McDonald's and their renowned quick and hassle-free lunches.

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    McDonald's caters to the market by offering happy meals, "freedom in a bowl" salad, and reasonably priced MacAfee coffee that can be prepared in five minutes. However, McDonald's has faced criticism for its association with diabetes and heart disease. As people become more health-conscious, they worry about the potential health effects of consuming McDonald's food. In 2004, a documentary called 'Supervise Me' featuring Morgan Spurious was released. The film aimed to demonstrate the consequences of eating only McDonald's food for an entire month. The rules included sticking to items on the menu without choosing larger portions unless asked and trying every item at least once. Consequently, the documentary showed Spurious's deteriorating health, weight gain, and malnutrition resulting from his experiment.

    The film's release in 2004 caused a decline in McDonald's profits, prompting the company to adapt and add healthier options to their menu. To address this, McDonald's introduced alternatives like carrot sticks instead of chips in Happy Meals and launched the 'Freedom in a Bowl' salad range. These changes aimed to give customers the option of eating healthily or indulging at McDonald's. Some successful outcomes include providing affordable salad options for lunch and satisfying parents who buy Happy Meals with the inclusion of carrot sticks, which contribute to their child's daily fruit and vegetable intake.

    McDonald's also has a group of friends known as the Hummus', who reside in everyone's tummy and promote sensible eating and an active lifestyle to children through song and dance. This approach serves as another form of relationship marketing by effectively communicating with children and conveying the importance of healthy eating, all while fostering a connection with them. In October

    2013, McDonald's initiated a campaign where they distributed books instead of toys with Happy Meals. This campaign lasted for two weeks and coincided with National Family Literacy Day on November 1st. The books featured McDonald's characters and emphasized the benefits of healthy eating, encouraging children to grow big and strong with a healthy lifestyle.

    McDonald's claimed that the campaign would provide 'over a million books to families. The reading campaign is an illustration of McDonald's joining campaigns to portray themselves as an ethical company, while still promoting their products. Although McDonald's was distributing free books to encourage children to read, these books were promoting McDonald's Happy Meals. Ronald McDonald is now not only utilized to attract children to McDonald's restaurants, but he also represents the Ronald McDonald House Charities. This organization offers assistance to families in their moments of hardship, providing financial and emotional support to families coping with ill and terminally ill children.

    McDonald's strives to present itself as a more ethical company while simultaneously promoting its brand through interactions between Ronald, children, and their image of a fun and friendly company. In 2009, McDonald's introduced the 'Saver Menu,' offering affordable options like regular burgers and chicken wraps for El. This initiative made it possible for customers to enjoy McDonald's even with just El in their pockets, particularly during the recession when people had limited funds for dining out. According to Rupert Steiner, a writer for the Daily Mail, customer visits increased by 7.5% in 2009, leading to an 11% rise in sales. The Saver Menu campaign remains in effect today and is especially popular during Christmas and the summer holidays.

    In January 2014,

    a campaign featured a TV advert that showed a man at an airline check-in desk trying to maximize his baggage allowance and avoid additional weigh-in costs. The advert concluded with the slogan 'It's a Joy to get your money worth'. As reported in The Times, the Saver Menu was initially launched as The Dollar Menu in America in 2003, as a response to the escalating cost of cheese. To maintain high profits without burdening the consumers, the Double Cheeseburger was replaced with the McDougal, sold at $1 with only one slice of cheese, while a cheesier version was offered at $1.19.

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