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UK COLLEGEOF BUSINESS AND COMPUTING


Module Booklet
Course: EDEXCEL BTEC (HND) BUSINESS

Group: Edexcel Level

Module: Unit 4- MARKETING PRINCIPLES

Module type: Module Code: F/601/0556

Module Credit: 15

Teaching Period: (15+6 weeks)

Level: 4 (QCF)

Contact Hours: (15*3 = 45 + 6*3=15)

Lectures: 15 weeks

Assignment Support: 3 weeks

Assessment and Feedback: 3 weeks

Module Leader: Daniel Panford

Lecturer: K. A Mayah

Term Start date: 14/09/15

Day: Wednesdays

Time: 10.00- 13.00

Group, Room and Campus: Lords House

Term: Winter Term


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CONTENTS

1. INTRODUCTION, AIMS AND OBJECTIVES

2. MODULE OUTLINE AND TEACHING METHODS

3. READING AND COURSE PREPRATION

4. LECTURE WITH DETAILED COURSE PROGRAMME AND OBJECTIVES

5. ASSESSMENT DETAILS
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1. INTRODUCTION

This is a broad-based unit which gives learners the opportunity to apply the key

principles of marketing.

Firstly, the unit looks at the definitions of marketing, and what is meant by a marketing

orientation and the marketing process.

Next, learners consider the use of environmental analysis in marketing and carry out

their own analyses at both macro and micro levels. They will also investigate the

importance of market segmentation and how this leads to the identification and full

specification of target groups. Learners then consider buyer behaviour and positioning.

The unit looks at the main elements of both the original and the extended marketing

mix. This includes an introduction to the concept of the product life cycle, new product

development, pricing strategies, distribution options and the promotion mix.

Finally, learners will develop their own marketing mixes to meet the needs of different

target groups. This includes considering the differences when marketing services as

opposed to goods. A range of other contexts is examined including marketing to

businesses instead of consumers and the development of international markets.

Aim:

This unit aims to provide learners with understanding and skills relating to the

fundamental concepts and principles that underpin the marketing process.

Learning Outcomes and assessment criteria:

On successful completion of this unit a learner will:

1 Understand the concept and process of marketing

1.1 Explain the various elements of the marketing process


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1.2 Evaluate the benefits and costs of a marketing orientation for a selected organisation

2 Be able to use the concepts of segmentation, targeting and positioning

2.1 Show macro and micro environmental factors which influence marketing decisions

2.2 Propose segmentation criteria to be used for products in different markets

2.3 Choose a targeting strategy for a selected product/service

2.4 Demonstrate how buyer behavior affects marketing activities in different buying

situations

2.5 Propose new positioning for as elected product/service

3 Understand the individual elements of the extended marketing mix

3.1 Explain how products are developed to sustain competitive advantage

3.2 Explain how distribution is arranged to provide customer convenience

3.3 Explain how prices are set to reflect an organisation’s objectives and market

conditions

3.4 Illustrate how promotional activity is integrated to achieve marketing objectives

3.5 Analyse the additional elements of the extended marketing mix

4 Be able to use the marketing mix in different contexts.

4.1 planmarketingmixesfortwodifferentsegmentsin consumer markets

4.2 illustratedifferencesinmarketingproductsandservices to businesses rather

thanconsumers

4.3 show how and why international marketing differs from domestic marketing.

On successful completion of this unit a learner will:


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Be able to write a formal report based on own research and industry information

gathered through visits at different cultural and heritage sights.

Knowledge and Understanding

Indicative content:

1 Understand the concept and process of marketing

Definitions: alternative definitions including those of the Chartered Institute of

Marketing and the American Marketing Association; satisfying customer needs and

wants; value and satisfaction; exchange relationships; the changing emphasis of

marketing

Marketing concept: evolution of marketing; marketing orientations; societal issues

and emergent philosophies; customer and competitor orientation; efficiency and

effectiveness; limitations of the marketing concept

Marketing process overview: marketing audit; integrated marketing; environmental

analysis; SWOT analysis; marketing objectives; constraints; options; plans to include

target markets and marketing mix; scope of marketing

Costs and benefits: links between marketing orientation and building competitive

advantage; benefits of building customer satisfaction; desired quality; service and

customer care; relationship marketing; customer retention; customer profitability;

costs of a too narrow marketing focus

2 Be able to use the concepts of segmentation, targeting and positioning

Macro environment: environmental scanning; political, legal, economic, socio-cultural,

ecological and technological factors

Micro environment: stakeholders (organisation’s own employees, suppliers,

customers, intermediaries, owners, financiers, local residents, pressure groups and


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competitors); direct and indirect competitors; Porter’s competitive forces

Buyer behaviour: dimensions of buyer behaviour; environmental influences; personal

variables – demographic, sociological, psychological – motivation, perception and

learning; social factors; physiological stimuli; attitudes; other lifestyle and life cycle

variables; consumer and organisational buying

Segmentation: process of market selection; macro and micro segmentation; bases for

segmenting markets, (geographic, demographic, psychographic and behavioural);

multi- variable segmentation and typologies; benefits of segmentation; evaluation of

segments and targeting strategies; positioning; segmenting industrial markets; size;

value; standards; industrial classification

Positioning: definition and meaning; influence over marketing mix factors

3 Understand the individual elements of the extended marketing mix

Product: products and brands – features, advantages and benefits; the total product

concept; product mix; product life cycle and its effect on other elements of the

marketing mix; product strategy; new product development; adoption process

Place: customer convenience and availability; definition of channels; types and

functions of intermediaries; channel selection; integration and distribution systems;

franchising; physical distribution management and logistics; ethical issues

Price: perceived value; pricing context and process; pricing strategies; demand

elasticity; competition; costs, psychological, discriminatory; ethical issues

Promotion: awareness and image; effective communication; integrated

communication process (SOSTT + 4Ms); promotional mix elements; push and pull

strategies; advertising above and below the line including packaging; public

relations and sponsorship; sales promotion; direct marketing and personal selling;

branding, internet and online marketing

The shift from the 4Ps to the 7Ps: product-service continuum; concept of the extended
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marketing mix; the significance of the soft elements of marketing (people, physical

evidence and process management)

4 Be able to use the marketing mix in different contexts

Consumer markets: fast moving consumer goods; consumer durables; coordinated

marketing mix to achieve objectives

Organizational markets: differences from consumer markets; adding value through

service; industrial; non-profit making; government; re-seller

Services: nature and characteristics of service products (intangibility, ownership,

inseparability, perishability, variability, heterogeneity – the 7Ps); strategies; service

quality; elements of physical product marketing; tangible and intangible benefits

International markets: globalization; cultural differences; standardization versus

adaptation; the EU; benefits and risks; market attractiveness; international marketing

mix strategies
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Programme Specification

Accrediting Body: EDEXCEL

Course: BTEC HNC/D BUSINESS MANAGEMENT

Unit: 4 MARKETING PRINCIPLES

Wk Lecture Schedule Outcome of session Activity/seminar Resources

and formative

assessment
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Introduction to the module  Awareness to the

Address the mode of assessment module content Case study and Module outline and

Group discussion about the scenario with regards to the  Challenges to the LO group discussion qualification frame

assignment and relevant tasks to be addressed to be addressed work

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2 Concept and process of marketing Defining marketing, Case study, Power Point

evaluating of concept of activities, group presentation, activities,

marketing, analysing discussion, research, Internet websites

marketing orientation, addressing AC1.1

marketing process- elements

and evaluation
3 Costs and benefits of a marketing orientation Analysing costs and benefits Case study, Power Point

of marketing orientation – activities, group presentation, activities,

competitive advantage discussion, research, Internet websites

orientation and costs, addressing AC1.2

perceived value for money,

quality approach, analysing

costs and profitability


4 Macro and micro environmental factors affecting marketing Analysing micro and macro Case studies, Power Point

decisions environments of chosen addressing AC 2.1 presentation, activities,

organisations, stakeholder Internet websites

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analysis, PEST analysis,

Porter’s five forces


5 Buyer behaviour affecting marketing strategies Evaluating dimensions of Case study, Power Point

buyer behaviour, analysing activities, group presentation, activities,

environmental influences, discussion, research, Internet websites,

motivations and addressing AC2.4 movies

perceptions, PLC analysis


6 Segmentation of customers Evaluating and analysing Case study, Power Point

Segmentation criteria, activities, group presentation, activities,

proposing different criteria discussion, research, Internet websites

for segmentation, addressing AC2.2

recognition of different

customers and their needs


7 Targeting and positioning Analysing targeting and Visits, group Power Point

positing strategies, choosing discussion, research, presentation, activities,

relevant strategies for addressing AC2.3, Internet websites, visits

different products, 2.5

evaluating influence over

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marketing mix factors


8 Product development Analysing total product Case study, Power Point

concept, evaluating different activities, group presentation, activities,

products according to discussion, research, Internet websites

needs, analysing branding addressing AC3.1

strategies, PLC, analysing

new product strategies’


9 Place – distribution, location Analysing different Case study, Power Point

distribution strategies, activities, group presentation, activities,

importance of accessibility, discussion, research, Internet websites

convenience and addressing AC3.2

availability, distribution

channel analysis, logistics

importance
10 Price strategies Analysing importance of Case study, Power Point

price, pricing strategies activities, group presentation, activities,

evaluation, choosing the discussion, research, Internet websites

best strategy for addressing AC3.3

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organisation, importance of

price elasticity, cost

consideration
11 Promotion strategies Evaluating promotional mix Case study, visit, Power Point

elements and importance, activities, group presentation, activities,

designing promotional discussion, research, Internet websites, visits

campaign, analysis of addressing Ac 3.4

integrative communication,

PR strategies, e-marketing

analysis
12 Marketing mix – 7P approach Evaluating extended Case study, visit, Power Point

marketing mix – 7p, activities, group presentation, activities,

importance of 7p in service, discussion, research, Internet websites, visits

planning marketing mix for addressing AC 3.5

organisations operating in 4.1

different segments
13 Products vs services marketing – differences Evaluating service Case study, visit, Power Point

characteristics, analysing activities, group presentation, activities,

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importance of quality in discussion, research, Internet websites, visits

service provision, analysing addressing AC 4.2

strategies for marketing of

products and services


14 International marketing Analysing cultural Case study, visit, Power Point

differences influencing activities, group presentation, activities,

marketing, defining discussion, research, Internet websites, visits

globalisation, examples of addressing AC 4.2

international mix strategies

in global markets
15 Revision, summarising Revising and summarising Case study, Power Point

unit activities, group presentation,

discussion, research,

addressing all ACs

16 Assignment support and feedback Providing feedback All ACs Word

17 Assignment support and feedback Providing feedback All ACs Word

18 Assignment support and feedback Providing feedback All ACs Word

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19 Assessment Evaluating assessment tasks All ACs Turnitin


20 Assessment Evaluating assessment tasks All ACs Turnitin
21 Assessment Evaluating assessment tasks All ACs Turnitin

Recommended text and links:

Baines, P., Fill, C. and Page, K. (2010) Marketing.2nd edition. Oxford, Oxford University Press.

Fill, C. (2011) Essentials of marketing communications. Harlow, Financial Times/Prentice

Bradley, N (2010) Marketing Research: tools and techniques.2nd edition. Oxford, Oxford

Roman, K. and Maas, J. (2005) How to advertise – what works, what doesn’t and why.3rd edition. London, Kogan Page.

Davis, A. (2007) Mastering public relations.2nd revised edition. London,

Brassington F and Pettitt S Principles of Marketing 4th Edition (Financial Times/Prentice Hall, 2006) ISBN: 9780273695592

Kotler P et al Principles of Marketing, 5th Edition (Financial Times/prentice Hall, 2010) ISBN: 9780273743279

Journals

Campaign (Haymarket Publishing)

Harvard Business Review (Harvard Business Publishing)

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The Marketing Review (Westburn Publishers Ltd)

The Marketer (Journal of the Chartered Institute of Marketing Magazine)

Marketing Business (The Chartered Institute of Marketing Magazine)

Marketing Week (Centaur Communications Ltd)

The Financial Times and other daily newspapers which contain a business section and market reports

Websites

www.bized.co.uk Bized provides a selection of teaching and learning resources

www.cim.co.uk The Chartered Institute of Marketing’s site contains a useful knowledge centre

www.ft.com The Financial Times business sections

www.thetimes100.co.uk multimedia resource

Wk Session Update Date Signature


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Lecturer: K, A Mayah

Campus: Lords House

Contact details: kam_mka@yahoo.com

Assessment:

The module will be assessed meeting all the LO as specified by the awarding body, Edexcel.

Please read the instructions carefully while addressing the tasks specified.

Contribution: 100% Assignment

Outline Details: Assignment approx.4000 to 4500 words. Details enclosed in the assignment brief.

Teaching and Learning Activities

The module tutor(s) will aim to combine lectures with tutorial activities. This environment will provide opportunities for the student to

understand the course material through case study and text and to apply it in a practical way. The intent is to facilitate interactive class activities,

and discussion about the significant role of research in a global and local business environment.

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2.3 Teaching Ethos

The college’s approach towards teaching and learning is simple and effective. The main aim of UKCBC is to assist learners in maximising their

potential by ensuring that they are taught clearly and effectively. This will enable students to engage in the learning environment and promote

success in both their academic studies and subsequent career.

2.3.1 Methods of Delivery:

LECTURES:

These will be developed around the key concepts as mentioned in the indicative course content and will use a range of live examples and cases

from business practice to demonstrate the application of theoretical concepts. This method is primarily used to identify and explain key aspects

of the subject so that learners can utilise their private study time more effectively.

SEMINARS:

These are in addition to the lectures. The seminars are designed to give learners the opportunity to test their understanding of the material

covered in the lectures and private study with the help of reference books. This methodology usually carries a set of questions identified in

advance. Seminars are interactive sessions led by the learners. This method of study gives the learner an excellent opportunity to clarify any

points of difficulty with the tutor and simultaneously develop their oral communication skills.

CASE STUDIES: An important learning methodology is the extensive use of case studies. They enable learners to apply the concepts that they

learn in their subjects. The learners have to study the case, analyse the facts presented and arrive at conclusions and recommendations. This

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assists in the assessment of the learner’s ability to apply to the real world the tools and techniques of analysis which they have learnt. The case

study serves as a supplement to the theoretical knowledge imparted through the course work.

Plagiarism:

Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and

scope of plagiarism are presented below:

Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing the

material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another student

and submitting it as your own work.Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the

college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

Assessment:

The module will be assessed meeting all the LO as specified by the awarding body, Edexcel.

Please read the instructions carefully while addressing the tasks specified.

Contribution: 100% of the module

Outline Details: Assignment approx 4000 to 4500 words. Details enclosed in the assignment brief

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ASSIGNMENT FRONT SHEET

Unit 4- MARKETING PRINCIPLES


Learning Hours: 60 Hours. Course: HND Business – Level 4 CREDIT VALUE: 15 CREDITS Term:

Self-learning hours: 90 hours.


Module Leader: Mr Daniel Panford Lecturer: K. A Mayah Internal Verifier: Mr Dalton
ASSIGNMENT TITLE:

Learners Name Term: Batch: Intake:


Registration Number Campus:
Hand out Date: Submission Date:
Learning Assessment In this assessment you will have the Task Evidence Page

Outcome Criteria opportunity to present evidence that shows Number number

you are able to:


LO 1: Understand the concept and process of AC 1.1 Explain the various elements of the 1

marketing marketing process


AC 1.2 Evaluate the benefits and costs of a marketing 1

orientation for a selected organisation

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LO2 : Be able to use the concepts of AC 2.1 Show macro and micro environmental factors 2

segmentation, targeting and positioning which influence marketing decisions


AC 2.2 Propose segmentation criteria to be used for 2

products in different markets


AC 2.3 Choose a targeting strategy for a selected 2

product/service
AC 2.4 Demonstrate how buyer behavior affects 2

marketing activities in different buying

situations
AC 2.5 Propose new positioning for as elected 2

product/service
LO3: Understand the individual elements of the AC 3.1 Explain how products are developed to 3

extended marketing mix sustain competitive advantage


AC 3.2 Explain how distribution is arranged to 3

provide customer convenience


AC 3.3 Explain how prices are set to reflect an 3

organisation’s objectives and market

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conditions
AC 3.4 Illustrate how promotional activity is 3

integrated to achieve marketing objectives


AC 3.5 Analyse the additional elements of the 3

extended marketing mix

LO 4: Be able to use the marketing mix in AC 4.1 Plan marketing mixes for two different 4

different contexts. segments in consumer markets


AC 4.2 Illustrate differences in marketing products 4

and services to businesses rather than

consumers
AC 4.3 Show how and why international marketing 4

differs from domestic marketing.


Please see that you include the Turnitin report. Report attached: Yes If no Reason: % of the turn it in report.

This work will not be accepted without the No

Turn it in report.
Learners Declaration: I certify that the work submitted for this unit is my own and the research sources are fully acknowledged.

Learners Signature: Date:

Plagiarism:

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Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’ regulations. In this context the definition and

scope of plagiarism are presented below:

Plagiarism is presenting someone’s work as your won. It includes copying information directly from the web or books without referencing

the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework form another

student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with

according to the college procedure. (For further details please refer to the plagiarism policy and the student code of conduct.)

Due Dates
Issue Date 28/10/2015 Final Due Date 29/1/2016 18th week
Due Task- 1 4/11/2015 Final due date where e-learning will be blocked for 19th week

Due Task- 2 25/11/201


Due Task- 3 9/12/2015
Due Task - 4 23/12/2015

Guidance in addition to the Pass criteria’s, this assignment gives you the opportunity to submit evidence in

order to achieve the following Merit and Distinction grades. Assessment Grid indicating their pass, merit

and distinction:

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Unit: Marketing Principles

Outcomes/criteria: Indicative characteristics Contextualised Feedback


LO 1: Understand the concept and As per the assessment criteria specified Task 1

process of marketing for pass

Do Task 2
LO2 : Be able to use the concepts

of segmentation, targeting and

positioning
Do Task 3

LO3: Understand the individual

elements of the extended Do

marketing mix

Task 4
LO 4: Be able to use the marketing

mix in different contexts.

Merit grade Description: Contextualisation


M1. Identify and apply strategies to An effective approach to study and Has applied an effective approach to study and research by

find appropriate solutions. research has been applied successfully identifying and applying the concept of the

marketing process and its components. (AC1.1)

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M2. Select/ design and apply Complex information/data has been A range of sources of information has been used to discuss the

appropriate methods/ techniques. synthesised and processed concepts of Targeting and Positioning clearly highlighting,

where applicable, the benefits these concepts bring to


Complex information/data have been Starbucks as an organisations (AC2.3 and AC2.5)
synthesized and processed.
A range of sources of information has Has used complex information to propose Segmentation

been used criteria for both consumer and business markets.(AC 2.2)

M3. Present and communicate The appropriate structure and approach Has applied appropriate structure and approach with logical

appropriate findings. has been used development of appropriate concepts and successfully

differentiated between product and service mix and showing


Coherent, logical development of
rationale for the extended mix. (AC3.1 and AC3.5)
principles/concepts for the intended

audience
Distinction Grade Description:
D1. Use critical reflection to Conclusions have been arrived at Has applied an effective approach to study and successfully

evaluate own work and justify through synthesis of ideas and have identified each one of the marketing concepts and evaluated

valid conclusion. been justified the benefits and costs marketing orientation (AC 1.2).

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The validity of results has been Well justified conclusions have been arrived at through

evaluated using defined criteria synthesis of ideas about how each element of the extended

marketing mix plays its specific role and how the whole mix

jointly enhances an organisation’s marketing offer. (LO3)


D2. Take responsibility for Autonomy/independence has been Learner largely took own responsibility and demonstrated

managing and organizing activities. demonstrated independence in planning and managing the entire work

process. (LO1 to LO4)

The importance of interdependence has

been recognised and achieved


D3. Demonstrate convergent, Effective thinking has taken place in Effective and innovative thinking has taken place in

lateral and creative thinking unfamiliar contexts differentiating between domestic and international markets

Ideas have been generated and and the way marketing mix decisions are extended or adapted

decisions taken self- evaluation has to suit the international context (AC 4.1 and 4.3).

taken place

Innovation and creative thought have

been applied

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ASSIGNMENT BRIEF SECTION

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ASSIGNMENT Brief

Unit Number and title Marketing Process

Qualification BTEC HND Business (Level 4)


Term Start Date 14th September 2015
Deadline/ Hand-in 29th January 2016
Assessor K.A Mayah

Case Study

McDonald's Restaurants

Introduction

McDonald's is one of the best-known brands worldwide. This case study shows how

McDonald's continually aims to build its brand by listening to its customers. It also

identifies the various stages in the marketing process. Branding develops a personality

for an organisation, product or service. The brand image represents how consumers

view the organisation.

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Branding only works when an organisation behaves and presents itself in a consistent

way. Marketing communication methods, such as advertising and promotion, are used

to create the colours, designs and images, which give the brand its recognisable face. At

McDonald's this is represented by its familiar logo - the Golden Arches.

Marketing involves identifying customer needs and requirements, and meeting these

needs in a better way than competitors. In this way a company creates loyal customers.

The starting point is to find out who potential customers are - not everyone will want

what McDonald's has to offer. The people McDonald's identifies as likely customers are

known as key audiences.

The marketing mix and market research

Having identified its key audiences a company has to ensure a marketingmix is created

that appeals specifically to those people.

The marketing mix is a term used to describe the four main marketing tools (4Ps):

 product

 price

 promotion

 The place through which products are sold to customers.

Using detailed information about its customers, McDonald's marketing department can

determine:

1. What products are well received?

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2. What prices consumers are willing to pay?

3. What TV programmes, newspapers and advertising consumers read or view?

4. What restaurants are visited?

Market research

Market research is the format which enables McDonald's to identify this key

information. Accurate research is essential in creating the right mix to win customer

loyalty.

In all its markets McDonald's faces competition from other businesses. Additionally,

economic, legal and technological changes, social factors, the retail environment and

many other elements affect McDonald's success in the market.

Market research identifies these factors and anticipates how they will affect people's

willingness to buy. As the economy and social attitudes change, so do buying patterns.

McDonald's needs to identify whether the number of target customers is growing or

shrinking and whether their buying habits will change in the future.

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Market research considers everything that affects buying decisions. These buying

decisions can often be affected by wider factors than just the product itself.

Psychological factors are important, e.g. what image does the product give or how the

consumer feels when purchasing it. These additional psychological factors are

significantly important to the customer. They can be even more important than the

products' physical benefits. Through marketing, McDonald's establishes a prominent

position in the minds of customers. This is known as branding.

Meeting the needs of key audiences


There are a limited number of customers in the market. To build long-term business it is

essential to retain people once they have become customers. Customers are not all the

same. Market research identifies different types of customers. These examples represent

just a few of McDonald's possible customer profiles. Each has different reasons for

coming to McDonald's.

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Using this type of information McDonald's can tailor communication to the needs of

specific groups. It is their needs that determine the type of products and services

offered, prices charged, promotions created and where restaurants are located. To meet

the needs of the key market it is important to analyse the internal marketing strengths

of the organisation. Strengths and weaknesses must be identified, so that a marketing

strategy which is right for the business can be decided upon.

The analysis will include the:

 company's products and how appropriate they are for the future

 quality of employees and how well trained they are to offer the best service to

customers

 systems and how well they function in providing customer satisfaction e.g.

marketing databases and restaurant systems

 Financial resources available for marketing.

SWOT

Once the strengths and weaknesses are determined, they are combined with the

opportunities and threats in the market place. This is known as SWOT analysis

(Strengths, Weaknesses, Opportunities, and Threats). The business can then determine

what it needs to do in order to increase its chances of marketing successfully.

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Marketing objectives

A marketing plan must be created to meet clear objectives. Objectives guide marketing

actions and are used to measure how well a plan is working. These can be related to

market share, sales, and goals, reaching the target audience and creating awareness in

the marketplace. The objectives communicate what marketers want to achieve.

Long-term objectives are broken down into shorter-term measurable targets, which

McDonald's uses as milestones along the way. Results can be analysed regularly to see

whether objectives are being met. This type of feedback allows the company to change

plans. It gives flexibility. Once marketing objectives are set the next stage is to define

how they will be achieved. The marketing strategy is the statement of how objectives

will be delivered. It explains what marketing actions and resources will be used and

how they will work together.

The 4Ps
At this point the marketing mix is put together:

Product
The important thing to remember when offering menu items to customers is that they

have a choice. They have a huge number of ways of spending their money and places to

spend it. Therefore, McDonald's places considerable emphasis on developing a menu

which customers want. Market research establishes exactly what this is. However,

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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, and will continue to do so. Care is taken not to adversely affect the sales of

one choice by introducing a new choice, which will cannibalise sales from the existing

one (trade off). McDonald's knows that items on its menu will vary in popularity. Their

ability to generate profits will vary at different points in their life cycle. Products go

through a life cycle, which is illustrated below:

The type of marketing undertaken and the amount 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 lifecycle. Some

of McDonald's options are growing in popularity while arguably the Big Mac is at the

'maturity' stage.

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 marketing tool is that the customer may feel that quality

is being compromised. It is important when deciding on price to be fully aware of the


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brand and its integrity. A further consequence of price reduction is that competitors

match prices resulting in no extra demand. This means the profit margin has been

reduced without increasing sales.

Promotions

The promotions aspect of the marketing mix covers all types of marketing

communications. The methods include advertising, sometimes known as 'above the

line' activity. Advertising is conducted on TV, radio, cinema, online, poster sites and in

the press (newspapers, magazines). What distinguishes advertising from other

marketing communications is that media owners are paid before the advertiser can take

space in the medium. Other promotional methods include sales promotions, point of

sale display, merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty

schemes, door drops, demonstrations, etc.

The skill in marketing communications is to develop a campaign which uses several of

these methods in a way that provides the most effective results. For example, TV

advertising makes people aware of a food item and press advertising provides more

detail. This may be supported by in store promotions to get people to try the product

and a collectable promotional device to encourage them to keep buying the item. It is

imperative that the messages communicated support each other and do not confuse

customers. A thorough understanding of what the brand represents is the key to a

consistent message.

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The purpose of most marketing communications is to move the target audience to some

type of action. This may be to: buy the product, visit a restaurant, recommend the

choice to a friend or increase purchase of the menu item. Key objectives of advertising

are to make people aware of an item, feel positive about it and remember it. The more

McDonald's knows about the people it is serving the more it is able to communicate

messages which appeal to them. Messages should gain customers' attention and keep

their interest. The next stage is to get them to want what is offered. Showing the benefits

which they will obtain by taking action, is usually sufficient. The right messages must

be targeted at the right audience, using the right media. For example, to reach a single

professional woman with income above a certain level, it may be better to take an

advertisement in Cosmopolitan than Woman's Own. To advertise to mothers with

children, it may be more effective to take advertising space in cinemas during Disney

films. The right media depends on who the viewers, readers or listeners are and how

closely they resemble the target audience.

Place

Place in the marketing mix, is not just about the physical location or distribution points

for products. It encompasses the management of a range of processes involved in

bringing products to the end consumer.

Conclusion

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Once the marketing strategy is in place various responsibilities are given to different

individuals so that the plan can be implemented. Systems are put in place to obtain

market feedback which measure success against short-term targets. McDonald's has to

ensure that this is done within the confines of a tightly controlled, finite marketing

budget.

Task 1

The Key objective of this task is to exhibit an understanding of the concept and

process of marketing.

Required

1.1 Referring to the McDonald's case study explain the various elements of the

marketing process (AC 1.1)

1.2 Evaluate the benefits and costs of marketing orientation to McDonald's (AC 1.2)

Task 2

In the next task you will focus on the concepts of segmentation, targeting and

positioning (STP strategy).

Required

2.1 Show the micro and macro environmental factors influencing marketing decisions in

McDonald's (AC 2.1)

2.2 Propose segmentation criteria to be used for McDonald's products in different

markets. (Use examples of at least two different segmentation criteria) (AC2.2)

2.3 Thinking about a range of products and services McDonald’s offer choose a

targeting strategy for one of them (AC 2.3)


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2.4 Demonstrate how buying behaviour affects marketing activities in different buying

situations. Provide here examples of buying situations which marketing managers in

McDonald's should in your opinion especially consider (AC 2.4)

2.5 Proposing a new positioning for a selected service or product of McDonald's (AC

2.5)

Task 3:

In this task you will demonstrate your understanding of both the traditional and the

extended elements of the marketing mix, which are the heart of all marketing strategies.

As before, answers to this question will be based on the McDonald's case study.

Required

3.1 Explain how McDonald's products are developed in order to make sure that

competitive advantage is sustained (AC 3.1)

3.2 Explain distribution strategies used by McDonald’s. Think about customers’

convenience and satisfaction in relation to distribution channels used (AC 3.2)

3.3 Explain pricing strategies used by McDonald's. Provide an explanation of how

prices are set to reflect McDonald's’ objectives and market conditions (AC 3.3)

3.4 Promotional activity is a must for every organization. A research into promotional

activities of McDonald’s and illustrates how promotional activity used by McDonald's

is integrated to achieve marketing objectives (AC 3.4)

3.5 Finally at the end of this task you are to provide an analysis of the additional

elements of the extended marketing mix for McDonald's (AC 3.5)

Task 4:

Last task is to present your ability to use the marketing mix in different contexts.

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Required

4.1 Plan marketing mixes for two different segments in the consumer markets with

reference to McDonald's (AC4.1)

4.2 Illustrate differences in marketing products and services to business rather than

consumers. (AC 4.2)

4.3 Finally end your assignment by showing how and why international marketing

differs from domestic marketing in the case of McDonald's. (AC 4.3)

Assignment Guidelines:
 Use a standard report structure, Word-process the report and use Normal script of a

proper font size 12.

 Produce an academic report, detailing the above issues with an approx. word limit of

4000 to 4500 words.

 Complete the title page and sign the statement of authenticity.

 The Assignment sheet should be attached in the front.

 Submit the document in a folder in the form of a file as well as a soft copy on the

submission date.

 It should be uploaded on E-Learning platform before the deadline and dropped into the

drop box at your relevant campuses and get the -------- and collect the receipt of the

submission form at the college.

 Assignments submitted after the deadline will not be accepted unless mitigating and

may be entitled for a late fee.

 Collusion and Plagiarism must be avoided.

 Start each answer on a new page and pages should be numbered. Highlight each

question clearly.

 Include a Bibliography at the end of the assignment and use the Harvard referencing

system.

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 All work should be comprehensively referenced and all sources must be fully

acknowledged, such as books and journals, websites (include the date of visit), etc.

 Try to give the page numbers, publishers' details and the year of publication

 In order to pass you need to address all the LO

 In order to get a merit you need to address the characteristics of pass and address M1,

M2,M3

 In order to get a Distinction you need to address the characteristics of pass, merit and

address D1, D2 and D3.

Use a common format for the questions, for example:

 Introduction (analyse the question.)

 Underpinning Knowledge (write about the relevant theory/points)

 Applied knowledge(Data Analysis)

 Conclusions and Recommendations (summarizing the whole scenario keeping in view

pass, merit, distinction criteria.)

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Achievement Summary
The Following Sections to be completed by the assessor:

Centre Name: UKCBC


Campus: Lords House
Centre Number:
Please note that the assessor’s signature below denotes conformation that he/she has in no way
influenced the outcome of the assessment:

Assessors Name: K. A Mayah


Assessors Signature:
Learners Name (to be filled by the

Assessor)
Intake: Batch: Term: Campus:

Learners Edexcel Reference Number

Has the unit been Internally Verified? Y/N

Date of verification:
Name of the Internal Verifier:
Internal verifiers signature:
If Sampled ,Internal verifiers comments on the assignment brief:

Evidence Summary of the evidence required by the Evidence presented

Checklist student
Task 1
Task 2
Task 3
Task 4
Unit Outcomes

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Outcome Evidence for the criteria to pass, merit Assessors Internal verification

and distinction as specified in the decision decision. (agree,

student feedback and contextualised. disagree)


Task 1

The Key objective of this task is to exhibit an understanding of the concept and process of

marketing.

 Referring to the McDonald's case study explain the various elements of the marketing

process (AC 1.1)

 Evaluate the benefits and costs of marketing orientation to McDonald's (AC 1.2)

TASK 1 - LO1 AC 1.1 Explain the various elements of P1.1 (P,M,D) P1.1

Understand the the marketing process of McDonald's (P,M,D)

concept and process AC 1.2 Evaluate the benefits and costs of P1.2 P1.2

of marketing a marketing orientation for McDonald's (P,M,D) (P,M,D)

Contextualised

Feedback for Task

1(reflecting 1.1, 1.2,

Pass merit and

distinction.)
IV comments

towards

Task 1

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Task 2

In the next task you will focus on the concepts of segmentation, targeting and positioning (STP

strategy).

 Show the micro and macro environmental factors influencing marketing decisions in

McDonald's (AC 2.1)

 Propose segmentation criteria to be used for McDonald's products in different markets. (Use

examples of at least two different segmentation criteria) (AC2.2)

 Thinking about a range of products and services McDonald's offer choose a targeting strategy

for one of them (AC 2.3)

 Demonstrate how buying behaviour affects marketing activities in different buying

situations. Provide here examples of buying situations which marketing managers in

McDonald's should in your opinion especially consider (AC 2.4)

 Proposing a new positioning for a selected service or product of McDonald's (AC 2.5)

TASK 2 - LO 2 Be AC 2.1 Show macro and micro

able to use the environmental factors which influence P2.1 P2.1

concepts of marketing decisions for McDonald's (P,M,D) (P,M,D)

segmentation, AC 2.2 Propose segmentation criteria to P2.2 P2.2

targeting and be used for products in different markets (P,M,D) (P,M,D)

positioning AC 2.3 Choose a targeting strategy for a P2.3 P2.3

selected product/service (P,M,D) (P,M,D)


AC 2.4 Demonstrate how buyer P2.4 P2.4

behavior affects marketing activities in (P,M,D) (P,M,D)

different buying situations


AC 2.5 Propose new positioning for a P2.5 P2.5

selected product/service (P,M,D) (P,M,D)

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Contextualised

Feedback for Task

2(reflecting 2.1, 2.2,

2.3, 2.4, Pass merit

and distinction.)
IV comments

towards

Task 2
Task 3:

In this task you will demonstrate your understanding of both the traditional and the extended

elements of the marketing mix, which are the heart of all marketing strategies. As before, answers to

this question will be based on the McDonald's case study.

 Explain how McDonald's products are developed in order to make sure that competitive

advantage is sustained (AC 3.1)

 Explain distribution strategies used by McDonald's. Think about customers’ convenience and

satisfaction in relation to distribution channels used (AC 3.2)

 Explain pricing strategies used by McDonald's. Provide an explanation of how prices are set

to reflect McDonald's’ objectives and market conditions (AC 3.3)

 Promotional activity is a must for every organization. Research into promotional activities of

McDonald's and illustrate how promotional activity used by McDonald's is integrated to

achieve marketing objectives (AC 3.4)

 Finally at the end of this task you are to provide an analysis of the additional elements of the

extended marketing mix for McDonald's (AC 3.5)

TASK3 - LO 3 AC 3.1 Explain how products are P3.1 P3.1

Understand the developed to sustain competitive (P,M,D) (P,M,D)

individual elements advantage

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of the extended AC 3.2 Explain how distribution is P3.2 P3.2

marketing mix arranged to provide customer (P,M,D) (P,M,D)

convenience
AC 3.3 Explain how prices are set to P3.3 P3.3

reflect McDonald's objectives and market (P,M,D) (P,M,D)

conditions
AC 3.4 Illustrate how promotional P3.4 P3.4

activity is integrated to achieve (P,M,D) (P,M,D)

marketing objectives
AC 3.5 Analyse the additional elements P3.5 P3.5

of the extended marketing mix (P,M,D) (P,M,D)

Contextualised

Feedback for Task

3(reflecting 3.1, 3.2,

3.3, 3.4, Pass merit

and distinction.)
IV comments

towards

Task 3
Task 4: Last task is to present your ability to use the marketing mix in different contexts.

 Plan marketing mixes for two different segments in the consumer markets with reference to

McDonald's (AC4.1)

 Illustrate differences in marketing products and services to business rather than consumers.

(AC 4.2)

 Finally end your assignment by showing how and why international marketing differs from

domestic marketing in the case of McDonald's. (AC 4.3)

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TASK 4 - LO 4. AC 4.1 Plan marketing mixes for two P4.1 P4.1

Be able to use the different segments in consumer markets (P,M,D) (P,M,D)

marketing mix in AC 4.2 Illustrate differences in P4.2 P4.2

different contexts. marketing products and services to (P,M,D) (P,M,D)

businesses rather than consumers


AC 4.3 Show how and why international P4.3 P4.3

marketing differs from domestic (P,M,D) (P,M,D)

marketing.
Contextualised

Feedback for Task

4(reflecting 4.1, 4.2,

4.3, Pass merit and

distinction.)
IV comments

towards

Task 4
Merit grades M1 M2 M3 P1 P2 P3 P4

awarded
Distinction D1 D2 D3 Resubmit :

grades awarded
Any other comments

Grade given by the Assessor:

Pass Merit Distinction

Assessors Signature: Date:


IV Grading Check: Comments if any:

Agree

Disagree Modify grade to

IV signature:

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Date:
Students feedback:

Student Signature: Date:


Plagiarism:
Any act of plagiarism will be seriously dealt with according to the colleges and awarding bodies’
regulations. In this context the definition and scope of plagiarism are presented below:
Plagiarism is presenting someone’s work as your won. It includes copying information directly
from the web or books without referencing the material; submitting joint coursework as an
individual effort; copying another student’s coursework; stealing coursework form another student
and submitting it as your own work. Suspected plagiarism will be investigated and if found to have
occurred will be dealt with according to the college procedure. (For further details please refer to the
plagiarism policy and the student code of conduct.)

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