Delivery in day(s): 5
Organizations involves in marketing activities in order to establish smooth sales for the goods or services provided by them. Marketing strategy is important for the organizations and consist mainly four steps which are analysis of current market environment, identification for the strategy, development of the marketing mix and measuring the effectiveness of the marketing efforts deployed by the organization. In the present context example of the three organizations would be taken in order to observe the marketing efforts on these organizations (Best, 2014). First, McDonalds has been selected and strategic importance & related marketing activities adopted for McDonalds would be observed for the company. Secondly, HSBC bank has been selected in order to understand the marketing strategy analysis for HSBC. Finally, Emirates airline has been selected and impact of marketing mix would be analyzed for the company on its consumers.
This task would explore the strategic importance of the Asian markets for McDonalds which is developing expansion plan in order to capture the Asian markets especially China through opening large number of stores in China.
The aim of marketing efforts deployed by organization would be to understand consumer demands and fulfill them through development of desired products and services (Blas, 2012). Marketing activities are important in order to understand consumer needs and fulfill them profitably. Below are the steps which are used by the organization such as McDonalds to reveal consumer desire and fulfill them:
Analysis of current situation: For McDonalds in order to make expansion in Asian and other potential markets it is important to analyze current situation prevailing in these markets through tools such as 5C’s, SWOT analysis, industry analysis, PESTEL analysis and others. This would help in order to get a fair idea on the market which company is doing to serve (Jobber, 2010).
Development of marketing strategy: Understanding market’s present situation would help McDonalds to develop the marketing strategy which can be deployed by the organization in order to attain their marketing objectives. Company would look at the different segments present in the market, segment which company want to target and positioning which would be used for targeting that segment of consumers.
Decision for marketing mix elements: Marketing mix decisions would be made by McDonalds keeping in mind consumers targeted by the company and this would help in order to attract large number of consumers. Product, price, place and promotion would be designed in order to fulfill consumer needs (Baines et al, 2011).
Implementation and control processes: Marketing efforts deployed by McDonalds would be measured in timely manner in order to ensure that efforts are directed in efficient manner and company would be able to attain objectives through these efforts.
Every organization identifies the market need of the target segment and designs their marketing mix so that it can differentiate itself through unique market offerings. McDonalds has developed their market offering in order to attract consumers through efficient service delivery model. Market orientation for McDonalds is to get into expansion mode through opening high number of stores and in China only they would be opening some 250 stores. Cost associated with the market expansion mode of McDonalds would include financial risk to the organization for getting into such a big market expansion, challenge to their supply chain management system, profits which company would gain through these stores and risk from competition from local as well as multinational players in China (Peter & Donnely, 2007). Benefits associated with market expansion in China for McDonalds would include higher amount of revenue, brand visibility and capturing higher consumer base in the rapidly growing markets such as China.
At present McDonalds has the market orientation to go for the market expansion through opening several stores in China and other neighboring countries so that company can have significant presence in these locations. Analysis of the current market in these markets would require McDonalds to understand the micro environmental and macro environmental factors impacting the business. Macro-environmental factors would be the elements which are external to the organization and can have their impact on the organization. Micro environmental factors would be those wherein these elements are governed by the internal environment of the organization and company can have control over these elements (Chambell, Stonehouse and Houston, 2012).
Macro environmental factors impacting the business organization would include the customers, suppliers, business partners, competitors, PESTEL factors and supply chain partners of the company. All these factors can have their substantial impact over business of the organization and McDonald can’t control impact of these elements on their business. For example, depending upon the strategic partnership with the suppliers, sustainability & profitability of the business can be determined. Consumer behavior towards McDonald’s products & services would define the overall business success for the organization. Industry forces or competitors would adopt different market strategies in order to deal with the marketing efforts of McDonalds and these strategies would be an important factor for deciding marketing efforts made by McDonalds in order to attract their consumers. In case a price war is started by one of the market player in fast food market for Chinese markets then McDonalds would also have to reduce their price so as to match with the value proposition offered by the competitor (Stevens, Wren and Loudon, 2005). Similarly, supply chain is one of the biggest strength for McDonaldsand in case the supply chain partners of McDonalds are not ready for such a big expansion and they are not co-operating in establishing large number of stores in China then McDonalds would not be able to go ahead with the market expansion strategy. PESTEL factors such as political environment would make impact over the business activities of McDonalds i.e. in case political environment in China is not stable then McDonald may not take the decision to go ahead with such an expansion in Chinese markets.
Micro environmental forces impacting business for McDonalds would include their strength, weakness, opportunities and threats faced by the organization. Strength for the organization would include financial strength, brand presence, market visibility and efficient business model with very good supply chain management system. Weakness for McDonald would include lesser experience in Chinese markets and foreign business identity for the brand. Opportunities faced by McDonalds would include potential for growth in Chinese markets, higher business profits and large consumer base gained through developing markets. Some of the major threats faced by McDonalds would include competition from local brands, fluctuations in global business scenarios and strict compliance in food industry.
International and domestic markets are quite different and accordingly the marketing activities adopted by the organizations would also be different. The primary difference observed between domestic and international markets would be related with the consumer behavior as organization would be aware of the consumer behavior for the domestic consumers while consumer behavior for the international consumers would be quite non-predictable for the organization such a McDonalds. Similarly, market forces which are relevant to the domestic and international marketing would also be different such as political, social, economical, legal and technological factors. McDonald is aware of these elements in US but in relation to Chinese markets there would be uncertainty for the organization to manage these external elements (Kotler, 2008).
Depending on the current market analysis, in the present task market strategy identification would be done for HSBC wherein segmentation, targeting and positioning strategy would be decided for HSBC.
Segmentation can be defined as the process wherein based on the specific attributes of consumers, several consumer base would be identified based on the products or services provided by the organization under context. Market segmentation would be done in two steps and these are to identify characteristics of the consumers and based on these characteristics to divide entire markets for making meaning consumer segments. HSBC also adopt similar process for segmentation of their products and services for identifying unique segments to which company can cater (Laermer and Simmons, 2007). There are several segmentation criteria which are followed by HSBC for differentiating their consumer base and these elements are demographic, psychographic, geographic and lifestyle related. Segments would be created based on these elements so that considerable and clearly identifiable segments are formed by the organization from the entire population which is potential consumer base for the products and services offered by HSBC.
Before making any marketing efforts for the organization, it is important to understand the target consumer segment of the company so that every market effort is directed towards the desired consumer segment of the organization. HSBC would try to explore the exact target consumer segment of the organization so that marketing strategy and marketing objectives are devised in order to capture these consumers. Target consumer segment of the company should consist of a unique set of customers and should not be broad to serve all existing market consumers. There would be several consumer segments in the market which HSBC should not serve. Different targeting strategies which can be adopted by an organization can be based on the profitability which an organization wants to attain, revenues, market visibility, geographic regions and strategic advantage etc. An organization can choose among the given strategies in order to decide on the potential consumer segment of the company and this segment would be targeted by company in order to attain their marketing objectives (Baker, 2008). In order to develop the target segment for HSBC it is important to adopt two criteria which are strategic importance and profitability of the segment. HSBC need to understand various segments from the perspective of profit obtained from the segments and the segment with higher profitability should be chosen by the organization. Strategic benefits would be other criteria which can be taken into mind while choosing the segment and in case an organization is getting strategic benefits such as long term benefits, development of brand and strategic partnership with other organizations. These strategic benefits would be important for the organization in order to develop their target segment identification criteria.
Positioning can be defined as the brand image which an organization wants to portray in consumer mind for its products or services. Every organization would exhibit certain brand features which would define the positioning of the brand in consumer mind. Considering an example of repositioning their image from the physical bank to online bank it is important that company highlight the importance of using internet banking for consumers in all their communications and benefits which HSBC would be offering to the consumers for making use of the internet banking. This would help in order to portray an image of the techno savvy bank and accordingly consumers would be motivated to make use of the internet for making their transactions. Hence it is important that there is complete synchronization in the efforts of the organization such as promotion, price, place and products/service so as to reposition their image for selected products or service.
We are considering two market segments of consumers which are targeted by HSBC for their retail banking products and these consumer segments are known as classic (low end) and imperia (high end). Marketing mix for these two market segments of HSBC can be given as under:
Product/services: HSBC would be offering premium & customized services for the Imperia segment of consumers while physical or online banking services would be offered for the classic consumers of the bank. Imperia consumers would be given the feature of home banking, advantage of preferred relationship and dedicated relationship manager for their account (Homburg et al, 2012). Classic consumers would be handled through routing banking transactions and would be charged for additional transactions.
Price: Pricing would be low for the imperia segment of consumers but these consumers would be giving higher volume as compared to the classic consumers of the bank. For example, for Imperia customer segment minimum balance limit would be GBP 10,000 and interest offered would be 4% while for classic consumers minimum balance limit
Place: For imperia consumers physical or personal banking features would be extended while for the classic consumers of the bank, HSBC would provide online banking facilities so as to reduce human intervention in the transactions made by these consumers and overall expense for these consumers can be reduced.
Promotion: Imperia consumers would be mainly consumers from big corporate or business man. Hence the promotion for these consumers would be through business magazines, personal selling, sponsorships and mass media channels. For classic consumers promotion would be done through social media, email marketing and outdoor media etc.
Hence, for the two different segments identified by HSBC there would be completely different marketing mix adopted by the bank in order to attract these segments of consumers.
2.5 Illustrate differences in marketing products and services to businesses in contrast to consumers
It is important to understand the difference for business to business and business to consumer marketing. The main difference for the two businesses would be in terms of the decision making unit as decision making unit in case of business can be owner of business or a group of people making decision over the buying situation while in case of business to consumer marketing end consumer with decision making power would be coming for purchase (Reid and Bojanic, 2010). Some of the vital differences between B2C and B2B marketing process can be given as under:
Number of customers would be high in B2C marketing with lesser volume while number of consumers would be lower and related volume would be much higher in B2B
Personal relationship is one of the major aspect for B2B marketing while it plays less role in B2C marketing efforts
Products and services offered by company to B2C consumers would be customized as per their needs while standard set of products/services would be offered to the B2C consumers
Decision making units would be the person asking for product or service while complex decision making unit would be present in B2B marketing process
Consumer behavior can be defined as the activities exhibited by consumers for making buying decision for particular goods or services. Marketing in context of HSBC would showcase identification of the needs and wants of the consumers along with development of suitable product to fulfill those needs. Understanding buyer behavior for HSBC would help in order to understand consumer needs and fulfill their marketing objectives. By understanding buying behavior HSBC would be able to understand need of consumers and accordingly services would be offered to them. This would enhance their satisfaction level and there would be a loyal customer base developed through enhanced satisfaction by the organization (Britten, 2012). It is important to track the consumer buying behavior and carry out surveys and consumer feedback activities so as to understand buyer behavior. Change in consumer behavior can be tracked through market surveys and this would help in order to get deep understanding of consumer behavior. Further it is important that as per the changes in buying behavior of consumers there are changes made in the product/service offerings of the organization so that consumers are having interest in the services or products offered by the organization.
Marketing Principle Assignment Help would help in order to understand the marketing mix activities undertaken by Emirates airline in order to attract consumer base of the organization. Since Emirates is into service marketing field so there would be 7 P’s of marketing which would be adopted for Emirates airline in order to design entire marketing mix and these would be product, price, place, promotion, people, processes and physical evidence.
For any business organizations products/services offered by the company would be the main source for creating the differentiation from other market organizations. Hence Emirates airline pays high degree of emphasis in order to design their marketing mix for obtaining competitive advantage through them. Services offered by Emirates airline would include the flight which contains different classes, service features in each class and their employees who are service passengers in order to make their travelling experience pleasant. Some of the additional features for Emirates airline would include high attention on passenger’s convenience, facility for email & SMS, TV facility in each class and deployment of latest technology tools in the Emirates flight (Kent, 2013). All these in combination form the high level of services offered by the company so as to make their passengers happy in their flight.
Emirates airline has wide network for their consumers so that their consumers can have convenience for their travelling. Emirates have established several booking shops and branches across Dubai so that consumers can directly boo their flight through these shops. Further in order to offer added convenience for consumers Emirates have their travel agents and online portal network. Online portal offered by Emirates is simple and easy to understand. First time consumers can also simply login into site and book their flights.
Further Emirates connect various destinations from Dubai so as to provide consumers added convenience so that consumers can adopt Emirates for all their travelling plans. Choosing just a single carrier for all their travelling across the world would help consumers to make bookings for flight easily and these consumers can become the frequent fliers for company thereby obtaining rewards for the higher usage of the Emirates airline. Hence distribution network of Emirates airline in terms of the booking agents, online portal and booking shops would help consumers to make easy booking for their flights (Gregson, 2008). While wide network of the company to connect Dubai to various worldwide locations would help consumers to travel through Emirates for all their travelling needs.
Pricing is an important decision which airline industry makes in order to enhance their utilization of the flights and enhance overall profitability of the business through its operations. Emirates pay high attention in order to price for making utilization in range from 90 to 100%. But at the same time company have to maintain the image of premium service provider for their consumers due to which high reduction in prices can lead to brand dilution with the low cost carrier companies. Hence, Emirates make use of the pricing aspect in order to enhance frequency of flying for consumers and offer discount for the frequent fliers and business consumers. This allows Emirates to maximize their profits & utilization along with maintaining brand image of the high end service provider airline organization. Seasonal pricing concept is also being used by Emirates airline in order to change their prices as per the lean season and peak season time. During lean season prices are slashed to half and numbers of flights are also reduced so that overall expense for the organization can reduce and consumers can take benefit of the lower pricing (Philip & Gary, 2011).
Integration of promotional activities is of immense importance for any business organization as by making integrated efforts proper promotional campaign can be created. Emirates airline makes use of highly integrated marketing campaign wherein several marketing tool such as print media, television, sponsorships, social media, email marketing and sales promotion are made by the company in order to attract their consumers towards the products and services offered by them. Print media is used by Emirates airline in order to give their advertisements in the newspaper and magazines. These advertisements are important sources to offer special service features of the Emirates airline to their target segment. Television media is critical source for Emirates airline to capture mass consumers through effective visual advertisement created by the company (Nagle and Holden, 2012). Emirates make sponsorship in sports such as Cricket and football so as to create their brand identity among the consumers worldwide. Social media tools such as Facebook, Twitter and You Tube is used by the company in order to showcase their advertisement and create viral marketing campaign through these tools. Email marketing tools are used so as to send information for the sales & offers to the large number of consumers at very low cost. Sales promotion is used by Emirates in order to give special discount vouchers and coupons to their consumers so that higher sales can be generated through offer of discount and vouchers for their targeted consumer segment. Hence it is evident that Emirates airline makes use of the multiple sources of promotion so that the promotional campaign adopted by company is highly effective thereby capturing all segment of consumers and making high impact over consumers so as to convenience them for buying products/services offered by the organization. These integrated marketing efforts would be able to generate higher value for the organization in comparison to the individual marketing tactics adopted by Emirates airline.
There are three extended elements for the marketing mix which can be used for the case of Emirates airline and these three elements are people, physical evidences and processes. Employees are an asset for the Emirates airline and company has highly trained employees who serve to the consumers in order to create overall pleasant experience for the consumers. Employees have been given proper training so that they can offer required level of services to the consumers (Kotler & Armstrong, 2009). Physical evidence would be formed through any element involved in interaction with the consumers such as logo, website, planes, employees and tagline of the company. All these elements would form an impression among consumer mind regarding the organization. Emirates airline manage its physical evidence in such a way to create the positive image with consumers. Processes are the key to any organization and processes used in running organizational operations would be important for any organization. Emirates pay high attention in order to standardize their processes and give special attention for the processes involved in consumer safety. Standard processes as prescribed by governing airline authorities are being followed in Emirates airline so that there are no undesired incidents taking place in the organization.
Present task has explored the marketing strategy development for three organizations in context i.e. McDonalds, HSBC and Emirates airline. Marketing activities adopted by McDonalds were shown in the first task wherein it was revealed that current market analysis, STP, marketing mix and control process are critical step for marketing strategy development for McDonalds (Jobber and Fahy, 2009). Difference between macro and micro elements affecting business were identified. Marketing Principle Assignment Help to HSBC, consumer segments and their marketing mix was developed for the bank. Finally, marketing mix elements for Emirates airline was designed in order to attract suitable consumer base for imparting product or services of the organization to them.
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