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P2 introduction to marketing

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Introduction

Introduction In this assignment I will go through how marketing mix is applied to service or a product for two organisations called KFC and Mc Donald's. I will choose a product from each of these businesses and the talk about the product, price, promotion and place. Marketing mix Marketing mix consists of 4p's. These are product, price place and promotion all offered by an organisation to potential customers. The marketing mix is a set of tools that work to achieve company's objectives. Price - The price is the amount a customer pays for the product. The price is determined by a numbers of aspects, which are material costs, market share, product identity and the customers thought of the product price. Price is determined by what customers notice about the price of the product. Researching about pricing is important because it indicates what customers are looking for as well as what they want to pay. For example Gillette the manufacturer of razors, deodorant and shaving foams seeks to provide the world's market with products that have affordable prices and targets a particular market segments. Such as young adults who wish to buy low priced razors and deodorant. Product - products must meet customer requirements whatever these might be. For many products is simple the physical item that customers of businesses might be buying or selling. For example a customer buys a new BMW 6 series, that's the product. Place - Place is also known as distribution. ...read more.

Middle

Psychological pricing is used to play on customers views. This is very effective as the consumer is tricked into thinking that the burger is cheaper than 1 pound. Then comes the cost- plus pricing, this is when you calculate the average cost plus a mark up to see if they made any money on top. The price of the product does change. Cheese burger price may increase if the costs of dairy products and beef rise. So some stores will need to raise the price of the cheese burger and other products to counter financial loss. Other businesses competing with McDonalds will have a difficult time competing with McDonalds, especially private businesses. A cheese burger in high street fast food restaurant like PFC (perfect fried chicken) will sell cheese burger at �1.10 or more. Customers will go to McDonalds rather than these shops because they will be saving money in McDonalds. Place McDonalds are located primarily in public places where there are a lot of busy roads and people shopping for example Oxford Street. Oxford Street is a location in west London where many people go and spend hours buying clothes and food. This kind of location will increase the demand of their products and services because many customers will be coming in the restaurant to place an order. A busy place will always increase sales. McDonalds is also located in most shopping centres in the UK. McDonalds have relatively few sites on the motorway due to less demand of customers. ...read more.

Conclusion

Price The retail price of a chicken fillet burger is 1.99p. The price has been set to make customers believe they are actually saving money but they are only saving 1pence. Psychological pricing is used to play on customers views. This is very effective as the consumer is tricked into thinking that the burger is cheaper than 1 pound. Then comes the cost- plus pricing, this is when you calculate the average cost plus a mark up to see if they made any money on top. Place KFC are located mostly in public places where there are a lot o busy roads and people shopping for example Oxford Street or Bethnal green. Street is a location in west London where many people go and spend hours buying clothes and food. This kind of location will increase the demand of their products and services because many customers will be coming in the restaurant to place an order. A busy place will always increase sales. KFC have quite a lot of sites on the motorway due to KFC being popular with drivers. These KFC restaurants will often have a drive though service so customers can buy their products quickly. Promotion KFC has free chicken wings promotion for its UK stores. KFC also promotes there business and products such as their chicken zinger burger one the signature dish of the company in bill boards, TV and internet. By doing this KF will attract many customers as they can. KFC also accepts vouchers, such as free Ice cream. ?? ?? ?? ?? Karimul Islam P2: Describe how the concept and principles are applied to the marketing of products in two organisations Unit 11: introduction to marketing ...read more.

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