Unit 3 P1 P2 P3

3507 Words Feb 23rd, 2011 15 Pages
UNIT 3: INTRODUCTION TO MARKETING
P1
In this task I am going to describe how marketing techniques are used to market products in two organisations I have selected which are Tesco and MacDonald’s.

Tesco is an international grocery and a general merchandising retailer in the United Kingdom. It’s the third largest retailer in the world and the second largest by profits. There are Tesco stores in fourteen countries in North America, Asia and Europe. Tesco are also known for being the grocery market leader in United Kingdom
McDonald's is the world's largest chain of fast food restaurants, serving more than 58 million customers daily. In addition to its signature restaurant chain. McDonald's restaurant is operated by a franchisee, an affiliate,
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There is also another risk that the new products which has been produced will eat into the market share of existing products which is being sold by MacDonald’s, for instance if they sell a quarter pounder cheese burger for £1; then if they produce a new product such as a cheese burger which is four times bigger than a quarter pounder cheese burger for £2. This will eat some of the existing product because instead of customers purchasing the quarter pounder cheese burger they will purchase the new product which is the cheese burger four times larger than the cheese burger the reason for this is because it’s new on the market and value for money because it’s more for less.

The final strategy MacDonald’s can use for growth is Diversification. This is when a business decides to sell new products in a new market. MacDonald’s may open a new store in a different location such as Bangladesh and sell new products like the four times bigger cheese burger I was discussing about earlier on. This could more likely put MacDonald’s in risk because and they wont have much knowledge about the new market. If they know selling a new product in an existing market might be risky then selling a new product at a new market would be twice more risky. The reason for this is because they won’t know if the new product is going to succeed they don’t have much knowledge about the market

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