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Btec Business Unit 10 D1

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BTEC BUSINESS LEVEL 3 | UNIT 10 | D1 (D1) Evaluate the effectiveness of the use of techniques in marketing products in one organisation
In this assignment I will evaluate how effective the techniques are when used for the new McDonalds products. Marketing techniques is a useful tool to market McDonald’s products; however their usefulness can be criticized. I will also discuss the validity and reliability of the data used to evaluate the effectiveness of the marketing techniques.
Market Penetration
McDonalds uses market penetration technique to market its products to existing target markets. The whole point is to sell more of the existing products to current market segments. McDonalds is a fast food outlet and provides goods at a very cheap price therefore its main target market is students and young professionals, McDonalds has used market penetration to encourage its market segment to buy more and has therefore introduced offers such as a free hamburger, cheeseburger or McFlurry with the purchase of an extra value meal. McDonalds also offers saver menu meals which come at a cheaper price and are offered to all customers. The advantage of this technique is that customers will buy McDonalds products more regularly and in bigger quantities, which will increase sales and therefore profit. The offers mentioned above will generate demand for the products and increase market share, however there are drawbacks to this type of marketing strategy. The disadvantage of such a technique could be that; such low prices may not generate a lot of profit as production costs will only decrease if demand increases which might take time. McDonalds would also have to promote such offers which can be quite costly. Competitors might use the same technique and put prices even lower, meaning McDonald’s existing customers will buy similar products elsewhere.
Market Development

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