Marketing Management

[Eburscon]

For many years McDonald's enjoyed worldwide success built on a few well-known, highly standard conditions. The company with the Golden Arches served a simple menu - hamburgers, french fries, and milkshakes orsoft drinks. The food was priced low, its quality was consistent, and it was served speedily from establishments that all looked alike and were extremely clean.

In recent years, however, McDonald's has seen its growth rate slow down and its dominant market position slip. Why? The changes been occuring in the company's external environment.

We will start with the population picture. Foir many years McDonals's main customer group was young couples with several kids. Today, people are marrying at a much later age and families have fewer children, so Mc Donald's traditional customer base is eroding. Then there are the cultural changes. Also consumers have become more health conscious. let's face it - burgers, fries, and shakes are not exactly at the top of dietitians menu recommendations today.

Consumers want convenience. in the past they hopped in the car and drove to McDonald's. Today they can pop something into the microwave oven or phone domino's to have a pizza delivered. Another challenge came as consumers became more concerned about physical environment. McDonald's polystyrene hamburger packaging was attacked by people who demand the sue of recycled and or/ biodegradable products. Paralleling all these challenges were the growing number and effectiveness of competitors.

s:-

a) i) Identify and discuss the major environmental changes being faced by McDonald's. ii) What course of action should the company CEO pursue to regain its dominant market position?

b) What king of distribution channel would you recommend for the following products and why?

c) i)Personal computers  ii) Industrial lubricant

[ailwyn]

a) i) Identify and discuss the major environmental changes being faced by McDonald's. The changes been occuring in the company's external environment.

the population picture. For many years McDonals's main customer group was young couples with several kids. Today, people are marrying at a much later age and families have fewer children, so Mc Donald's traditional customer base is eroding. the cultural changes. Also consumers have become more health conscious. THE burgers, fries, and shakes are not exactly at the top of dietitians menu recommendations today.

TODAY, THE  Consumers want convenience. in the past they hopped in the car and drove to McDonald's. Today they can pop something into the microwave oven or phone domino's to have a pizza delivered. Another challenge came as consumers became more concerned about physical environment. McDonald's polystyrene hamburger packaging was attacked by people who demand the sue of recycled and or/biodegradable produc ts. Paralleling all these challenges were the growing number and effectiveness of competitors,like  KFC / HAMBURGER KING

ETC

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ii) What course of action should the company CEO pursue to regain its dominant market position?

THE  CEO  SHOULD

APPRAISE THE MARKET AND ENVIRONMENTAL CONDITIONS WHICH NEED TO BE FULFILLED FOR GLOBAL MARKETING TO BE A VIABLE OPTION IN A GIVEN MARKET.

The  PESTLE    factors play an important role in the value creation opportunities of a strategy IN   ANY   GLOBAL  NATIONS. Below    you  will  find examples of each of these factors.

Political(incl. Legal)   

-Environmental regulations and protection [what  are  the  government regualtions/ protection laws  that  must be  observed ]

-Tax policies

what tax  hinder the business and what  taxes  incentives  are available]

-International trade regulations and restrictions

[ does  the  government    encourage  exports / with  high tariffs  on  imports]

-Contract enforcement law/Consumer protection

[does  the  government  enforce  on  consumer  protection ]

-Employment laws]

[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

-Government organization / attitude

[ does  the  government  have  a   very  positive  attitude  towards  this   industry]

-Competition regulation

[ are  there   regulation  for  limiting  competition]

-Political Stability

[ politically ,  does the   government    have   a  very   stable  government ]

-Safety regulations

[ has  the  government      adopted  some  of  the  modern  safety regulations]

================================================================= Economic     

-Economic growth

[  what  is  the economic growth rate  /  what  are  the  reasons ]

-Interest rates & monetary policies

[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

-Government spending

[is  government  spending  is  significant   and  is it   under control ]

-Unemployment policy

[what  is  the  employment / unemployment  policies  of the government ]

-Taxation

[  has  the  taxation    encouraged  the  industry ]

-Exchange rates

[ is   there  well  managed   exchange  controls  and  is it  helping  the  industry]

-Inflation rates

[ is  the  inflation  well   under  control ]

-Stage of the business cycle

[ is  your    industry  is  on  the   growth  pattern]

-Consumer confidence

[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

================================================== Social  

-Income distribution

[is there   balanced   income  distribution   policy ]

-Demographics, Population growth rates, Age distribution

[ what  is   population   growth  and  why ]

-Labor / social mobility

[ what   are the  labor  policies  and  is  there  labor  mobility]

-Lifestyle changes

[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

-Work/career and leisure attitudes

[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

-Education

[ what  are  the  education  policies /  is  it  successful ]

-Fashion, hypes

[are  the   people    becoming  fashion  conscious ]

-Health consciousness & welfare, feelings on safety

[ are  the  people     becoming  health  consciousness]

-Living conditions

[ is the  living  conditions   improving  fast  and  spreading  rapidly]

=========================================================

Technological  

Government research spending

[is  the  government    spending  on research  and  development]

Industry focus on technological effort

[are  the   industries    focused  on  using  improved  technology]

New inventions and development

[ are  new  inventions     being   encouraged  for  developments]

Rate of technology transfer

[ is  the  rate  of  technology  transfer  is  speeding  up ]

(Changes in) Information Technology

[ is  the   information  technology    rapidly  moving  and  is  there  government  support]

(Changes in) Internet

[ is the   internet  usage    rapidly  increasing   and  why]

(Changes in) Mobile Technology [is  the   Mobile   technology    rapidly developing  and  is there  government  support]

===================================================

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ALL   THESE  FACTORS  AFFECT  THE  INTERNATIONAL  MARKETING

-in various  combinations

-at  different  times

-at  various  emphasis

===========================================================

MARKETING  DEPARTMENT  MUST  STUDY   THESE  FACTORS

IN DEPTH   AND  THEN  USE  THE   4 Ps

1.PRODUCT

2.PRICE

3.PROMOTION

4.PLACE

*Fashion trends

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MEETING   THE  NEEDS.

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*Consumer values

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MEETING   THE   CONSUMER  VALUES.

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*Changing attitudes of society

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MEETING   THE  NEEDS  OF  SOCIETAL  MARKETING.

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*Organised consumer groups and pressure groups

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  POSITIONING   THE  COMPANY / PRODUCTS.

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=========================================================

*Cyclical fluctuations

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MEETING   THE  SEASONAL  NEEDS.

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Population trends

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MEETING   THE  CHANGING  / DEMANDS  NEEDS   OF   THE  GREY MARKET.

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Industry sector trends

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  POSITIONING   THE  PRODUCTS  AS  PER  THE  INDUSTRY  TRENDS/  NEEDS.

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Availability of materials

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY   SUITABLE  POSITIONING  OF THE  COMPANY / PRODUCTS.

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*Average disposable incomes

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING  THE  MARKETING  MIX  EFFECTIVELY.

--------------------------------------------------------------------------------------------

*Competitiveness compared with overseas companies

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING   THE  MARKETING  MIX  EFFECTIVELY.

--------------------------------------------------------------------------------------------

*Changes in the structure of the population(e.g. impact of declining birthrate and an ageing population)

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING   THE  MARKETING  MIX  EFFECTIVELY.

--------------------------------------------------------------------------------------------------------------- *Population drift to and between capital cities MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING   THE  MARKETING  MIX  EFFECTIVELY.

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* Product  range

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING   THE  PRODUCT   MIX  EFFECTIVELY.

--------------------------------------------------------------------------------------------------------

* Marketing and channels of distribution

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING   THE  CHANNEL    MIX  EFFECTIVELY.

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* Price structure

MARKETING  MUST  RESPOND  TO   THESE  CHALLENGES / OPPORTUNITIES

BY  MANAGING   THE  MARKETING  RESEARCH   EFFECTIVELY.

=================================================

IN  ALL  THE  FACTORS,  THE  ORGANIZATION  WHICH  RESPONDS

TO  THE  INTERNAL /EXTERNAL   FACTORS,

WITH  TIMELY  ACTION  PLAN,  WILL  SURVIVE /  EXPAND.

WHILE  THE  ONES  WHICH   DO  NOT  RESPOND TO  THE  INTERNAL/EXTERNAL   FACTORS,

WITH  TIMELY  ACTION  PLAN,  WILL CONTRACT/ PERHAPS  DEMISE.

=========================================================== THE   FOLLOWING  ACTION  PLAN  IS  A  MUST

STRATEGIC  PLANNING  PROCESS

STEP  1  ---Assess  the  previous  period's  plans.

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STEP  2--Analyze / review  customers / constituents satisfactions.

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STEP  3

-Assess  the  internal  organization  situation [SWOT ]

[strengths-weaknesses-opportunities-threats]

-Assess  the  external   environment  [ PEST ]

[political - economic-social-teconology ]

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STEP  4 -set  strategic  directions  for  the  company

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STEP  5

-determine / identify  SWOT  for  each  units

*marketing *sales *manufacturing *supply  chain

*finance

etc  etc

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STEP  6 -determine  the  requirements  for  performance  levels.

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STEP  7 -identify   and  evaluate  objectives/   strategies

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STEP  8

-choose  strategies/objectives/goals   for  the  next  period.

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STEP  9 -create  corporate  STRATEGIC   plan

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STEP  10

-development  of  operating  plan/ for  units

*marketing *sales  *manufacturing *supply  chain *finance

etc  etc

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STEP  11

-development  of  budget / for  units

*marketing *sales  *manufacturing *supply  chain *finance

etc  etc

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STEP  12 -development  of  implementation plan.

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STEP  13 -monitoring  system   for  the  corporate  plan.

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STEP  14 -contingency  plans .

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STEP  15 -Rewards ./ incentives  for  achievements.

============================================== A  STRATEGIC  ACTION  PLAN.

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b) What kind of distribution channel would you recommend for the following products and why?

c) i)Personal computers The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

Goods and services often pass to consumers through multiple channels. While increasing the number of ways in which a consumer can find a good has the potential to increase sales, it also creates a complex system that can make distribution management difficult. In addition, the longer the distribution channel the less profit a product manufacturer might get from the sale.

THE  RIGHT  APPROPRIATE  APPROACH  FOR  DISTRIBUTION  

-direct  to  the  retailers

Who  will  provide  sales /after  sales service  to  the  individual  buyers.

1. Make it a priority. Devote resources to channel management – preferably at least one dedicated manager whose sole responsibility is to manage those relationships and build the marketing programs to drive revenue through the channel.

2. Develop measurements and track performance. Know who your best sales performers are at each point in the channel. By tracking orders, volume and total revenue at each point, you can identify and improve underperforming partners and keep your top performers happy.

3. Communicate! Build relationships at each step of your channel. If you’re not talking with your partners, how can you identify problems and solve them? And how will you know whether your programs are working and how to make them better?

4. Drive revenue through the channel. Take ownership of the marketing campaigns that will drive revenue at all levels through the channel. Your partners have to focus on building their own customer base, not marketing just your product(remember that you’re not the only solution they offer).

5. Avoid pricing conflicts. Establish a pricing strategy and stick to it. If channel conflict arises because of price, attempt to resolve it ASAP.

6. Address conflicts swiftly. Since distrust and channel conflict is common, it’s important to address problems quickly to find a solution. @@@@@@@@@@@@@@@@@@@@@

ii) Industrial lubricant THESE  ARE  INDUSTRIAL PRODUCTS.

HENCE  THE  DISTRIBUTION  CHANNEL

-first , to  the  major  industrial  wholesalers.

-who  in turn  will   sell  to  their  network  of  industrial  hardware  retailers.

THESE  RETAILERS  WILL  SELL/ ADVICE/SERVICE   THE  END USERS.

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