4p Mcdonald
The 4Ps
At this point the marketing mix is put together.
The product life cycle
Sales
Time
Decline
Maturity
Growth
Development Introduction
i. Product
The important thing to remember when offering menu items to potential customers is that there is a huge amount of choice available to those potential customers with regard to how and where they spend their money.
Therefore McDonald’s places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is.
However, customers’ requirements change over time. What is fashionable and attractive today may be discarded tomorrow. Marketing continuously monitors customers’ preferences.
In order to meet these changes, McDonald’s has introduced new products and phased out old ones over time, and will continue to do so. Care is taken not to adversely affect the sales of an existing option by introducing a new option which will cannibalise its sales (trade off).
McDonald’s knows that sales of products on its menu will vary at different points in their life cycle as is illustrated on the graph to the right.
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Services Talking Point Apprenticeships
Glossary I.T.
Marketing Construction
Marketing at McDonald’s
The type of marketing undertaken and the resources invested will be different depending on the stage a product has reached. For example, the launch of a new product will typically involve television and other advertising support.
At any time a company will have a portfolio of products, each in a different stage of its cycle. Some of McDonald’s options are growing in popularity while arguably the Big Mac is at the ‘maturity’ stage. ii. Price
The customer’s perception of value is an important determinant of the price charged.
Customers draw their own mental picture of what a product is worth. A product is more than a physical item; it also has psychological connotations for the customer.
The danger of using low price as a
At this point the marketing mix is put together.
The product life cycle
Sales
Time
Decline
Maturity
Growth
Development Introduction
i. Product
The important thing to remember when offering menu items to potential customers is that there is a huge amount of choice available to those potential customers with regard to how and where they spend their money.
Therefore McDonald’s places considerable emphasis on developing a menu which customers want. Market research establishes exactly what this is.
However, customers’ requirements change over time. What is fashionable and attractive today may be discarded tomorrow. Marketing continuously monitors customers’ preferences.
In order to meet these changes, McDonald’s has introduced new products and phased out old ones over time, and will continue to do so. Care is taken not to adversely affect the sales of an existing option by introducing a new option which will cannibalise its sales (trade off).
McDonald’s knows that sales of products on its menu will vary at different points in their life cycle as is illustrated on the graph to the right.
Page
Services Talking Point Apprenticeships
Glossary I.T.
Marketing Construction
Marketing at McDonald’s
The type of marketing undertaken and the resources invested will be different depending on the stage a product has reached. For example, the launch of a new product will typically involve television and other advertising support.
At any time a company will have a portfolio of products, each in a different stage of its cycle. Some of McDonald’s options are growing in popularity while arguably the Big Mac is at the ‘maturity’ stage. ii. Price
The customer’s perception of value is an important determinant of the price charged.
Customers draw their own mental picture of what a product is worth. A product is more than a physical item; it also has psychological connotations for the customer.
The danger of using low price as a