Marketing Strategy of the Hospitality and Tourism Industry:
In a Hospitality and Tourism industry marketing strategy is a process that can allow to hotel industry to give concentrate on its limited resource on the greatest opportunity to increase the sale and to achieve competitive advantages. A market strategy should be give concentrate around the key concept that the customer’s satisfaction is their main goal. Attention is combined on both the body of theory and knowledge that is marketing, with a strong emphasis on applications of marketing in hospitality operation the issues which always discussing are: the field of marketing and some basic concepts; analysing marketing opportunities; marketing information and marketing research; marketing strategy based on customer, competition, and the company’s offerings, goals and abilities; the process of marketing planning; the question of the service product; the hospitality product; issues of place, price, promotion, marketing communication, and, unit level marketing. Marketing strategy is not only related with promotional and publicity activities but in the reality it is much better to put the customers needs, wants and satisfaction first. The market strategy of the hospitality industry which will set out what you hope to achieve by marketing [€±] . Therefore a successful marketing is related with following founding:
What customers think about the product an services of organization
Who buys it
The effect of competitors and stakeholders on the business
How you do the promotion of product what you sell
The Purpose of Marketing Strategy:
According to Malcolm “the Purpose of marketing is and its principal’s is identification and creation of competitive advantages”. Marketing strategy is very significant application for achieve the market objectives and it’s a formulation of plan for achieving them. Marketing Strategy is about that
(What you want to achieve in your business) and Market strategy is about (how you are doing plan to achieve your target). There are many objectives and strategies at all level in marketing. That will be advertising objectives and strategies and pricing objectives strategy for short and long term. Marketing Strategy is by which marketing objectives will be achieved and are generally concerned with seven p’s of the marketing mix: Product, Price, Place, Promotion, and People, Process, Physical Evidence.
McDonalds Corporation is one of the best restaurant chains of Hamburgers and fast food restaurant in all over the world is providing their best services to 58 million customers daily. The business was started in 1940, with a restaurant opened by brothers in Bernardino and California. They gave introduction about the ‘Speedee Service System’ in 1948 established the model of modern Fast-Food Restaurant. McDonald’s first filed for USA Trademark on 4 may on description ‘drive in restaurant services’ which was continue through the end of Dec 2009. In Sep 1961 Company filed a Logo trademark overlapping a double arched ‘m’ symbol is temporarily disfavoured in 1962 in USA, Canada, Netherlands, Germany, France, and Sweden in the term of order opening  .
Marketing Strategy of McDonald’s:
“McDonalds has become a world wide best brand for its marketing strategy”. McDonalds is continuously built its new brand by listening the suggestion of the customers and by identifying the various steps in the business marketing. Branding system of the McDonald always help to develop their personality Product or Services. The brand image present that how the customer’s view about the organization. According to me, ”every brand can get success if the behave and it represent itself front of the customers in the compatible way”. McDonald’s marketing methods such as Advertisement and Promotion are used for create the Colour, Design, image which give the brand its recognisable face. McDonalds produce it by its familiar ‘Logo’ named Golden Arch  .
McDonalds is doing marketing by following way:
McDonald’s has from many years maintained an extensive advertisement in addition by using Television, Radio and Magazines, Newspaper, Internet etc. The company make significant Billboards and signage by sponsoring events like as Olympic Games, Football match, Commonwealth Games and make cooler of Orange drink with their logo available for local events. Television is playing central role in the McDonald’s advertisement strategy. McDonald is using 23 slogans few other slogans are selected count
Marketing Mix Strategy of the McDonald’s:
According to Malcolm, “The marketing mix of the McDonalds provides the ‘Tools’ of the Trade”. The 7ps of the marketing can be manipulated to suit the needs of the marketing and environment. Marketing strategy of the McDonalds help to select their customers it wishes to deal with. Marketing mix is like as a way which guides the organization seek to achieve its marketing object through Product and services. Marketing mix is term which used to describe the marketing tools of 7ps by analysing detailed information of the McDonald’s customers. McDonald’s marketing department can ascertain information key to determining the correct marketing mix.
Product – What the McDonalds is selling
Price – How much the selling price of that product
Promotion – How you will get the customer to buy your product
Place_ Which is the suitable place for the selling of your product
People- People refer to customer, employee, management who are involved in your business the reputation of the brand is in their hands.
Process – Process have a major impact on the quality of service and on customer experience.
Physical Evidence – Physical evidence are demonstrated by an organization must confirm the assumption of the customers.
According to Malcolm, “the general policy for the product is Deletion, Modification, Addition, Design, Branding, Position, and Packaging”. McDonalds always try to remember where offering a menu to the potential customer a large amount of choice available for the customers of with regard how and where they will spend their money. Therefore McDonald’s giving fully concentration on developing a menu. Market research defines what is this, how the customer’s requirements are changing during time to time, what is fashionable and attractive product today. Marketing continuously monitoring the customer’s demands and their preference towards the product. In order to meet this change McDonald’s is producing new products and out old ones over time introducing new option help to increase its sale.
McDonald’s general pricing policies is followed for the product group in the market segment. The most important thing for the customer is price charged before buying any product. They draw a picture in their mind that the price of product is worth. The danger can be from low prize according to marketing tool is customer may be think that the low price is preferring compromised quality. It is important for organization when deciding the price to be careful of the brand. The consequence of price rising mean that the competitors match the low price mean no extra demand.
McDonald’s promotion aspect of marketing mix is covering all type of marketing communications. Promotion is the general policies of the McDonalds for Communicating with the customers such as Advertising, Sales promotion, exhibition, Public Relation, Direct mail, The Internet etc. Promotion of the McDonald’s depends upon various methods one from those is employed is advertising by the positive word of mouth. Advertising is presented on TV, Radio, In Cinemas, on line, Using Website, Using Poster site in the Newspaper, Magazines, and Slogans, Loyalty scheme, bus shelter, Demonstration etc. Promotion method is using by McDonald’s is for providing effective result of their services. TV is creating awareness about food among the people and print media is providing more detail information for supporting the promotion to get more customers and encourage them to keep on buying only their products. The main purpose of the marketing communication is getting their target customers. The McDonald’s are know about their customers to it is serving it able to communicate with them
The place is the general policy for channel and customer service levels. McDonald’s is located in a prime place almost in big cities at big malls and near the residential area. Place where the business of the McDonald’s is running is very important element the concept of place is not only related with the physical location and the distribution point of product. It contents the McDonald’s management of the wide range processes including bringing product and to the end customers. Its very significant factor for the McDonalds that Product must be on the right Place, on the right time and in the right quantity, while keeping storage.
People are the key asset of McDonald’s. It is people who are providing their best services, manners, knowledge, ability, good dealing, and body language can have a deep effect on the customers experience and on creating the customer interest towards their own product by the positive word of mouth and producing excellent fast friendly services, cleanliness and suitable environment for all their customers because of this McDonald’s employees are playing very important role in the management of decision making.
According to Ruth Gosany, “Process of the McDonald’s has a major impact on the quality of services provider and on the over all experience of the customers”. Process of the McDonald’s is related to:
The food manufacturing transparent to customers
Training of the licence
The process of inventing new equipment for the cooking
The process of using new method for the food packaging and in the services during time to time according to the marketing fashion and the customer’s requirements.
McDonald’s is using same tradition in the food from many years for services, Taste and for the better distribution in the market segment.
Physical evidence is an important element of the marketing mix which allows to the customers again to make a judgement on the McDonald’s product, quality, services, pricing etc. If any customer goes to McDonald’s the first choice of every customer will be Cleanliness, Friendly dealing, Environment friendly product and Good product. Physical evidence is a very significant part of the service mix McDonald’s always give more focus on the clean and hygienic.
According to Malcolm, ”the marketing plan means the plan which help to control and monitoring the internal and external environment of the organization it’s like a ability to gain the objectives and profitable sale”. Strategy marketing planning process is series of logical steps that help which are working through Marketing Plan. Strategy marketing planning is known as a ‘Planning system’ way of identifying the many options for the development of company, of making them definite in writing, of formulating marketing objectives which are related with the companies overall scheduling and costing mostly about achieving the objects. Marketing plan allow to the market manager with an awareness about the responsibilities and problems.
There are the following elements of the market plan:
This is including the current situation of the McDonalds in the market. It’s a detail about the product that, what are the being organization is offering and for whom and analysing your Target market and the worth trends of the market.
The plan about the objectives is setting some target of the company it’s like a application to achieve the market objectives and formulation how to achieve them.
Swot analysis is stands on Strength, weakness, Opportunity and Threats. This analysis identifying these factors which are significant and unsignificant for achieving the objectives.
This strategy analysis that who are the competitors around our business, what they are doing is they are doing same business and what the organization have to do to compete with them and what policies they have to adopt.
According to Ruth Gosany, “Market research identifying how much the business man knows about the exit and potential customer before starting any business organization must have to establish some basic knowledge related to their business”. Market research is specially identifying the Market, Market size and value of the market.
Organization have need to consider that which market is most important and worth for your business and they have to discover that who is their loyal and temporary customers and that the market for your products or services exit and decide your target that into the competitors what share of market you expect to achieve. The target of McDonald’s should be to achieve 100% share in the market.
Marketing mix strategy is providing a ‘Tool’ of trade to the organization. The 7ps of the marketing are very suitable for the need and for the internal and external environment of the market. Marketing tools help to the organization to achieve the object and goals of their perfection.
McDonalds is giving full concentration on continually monitoring the factors that are operating outside the organization and as well as inside it and it make sure that they are changing during time. For monitoring the factor in the macro environment they are visiting in the trade show and collecting competitor’s information and by reading the trade press articles which help them to keep up to date with competitors. They are also monitoring the activities of their employee and their customers.
Swot analysis is a strategy planning model which is stands for Strength, Weakness, Opportunities and threats involves in a business venture it involves specifying the venture of business and swot analysis is also identifying the internal and external factors which are suitable and unsuitable for achieve that objective.
Characteristics of the business or team which are giving advantage over other the hotel industry.
Weaknesses are external factor of the organization and disadvantage relative to others.
External chances of the industry to make greater sail and profit in the environment.
External elements which can create a trouble for the business of hotel industry.
Strength of the McDonald’s
Globalization, Public Relation & Advertising:
McDonald’s is the world’s largest hotel chain of fast food restaurant. McDonald’s a market leader in the both domestic and international market.
With the huge expansion into the market company has become a symbol of globalization and spreading an American way of life.
McDonalds have 31000 restaurants in 119 countries and they have a1.5 million employees and providing their best services to 8 million people daily.
McDonald’s have a good public relation with their customers. It is doing marketing by advertising and using electronic media and print media etc.
McDonalds is using advertising its main target is children not the young and old age people.
McDonald’s is dealing with looming marketing it could make it to difficult to make it new outlets.
McDonald’s have a pricing war with so many competitors which are creating a threat for the progress of McDonald’s..
Lack of the product innovation is another weakness of the McDonald’s  .
Use of CRM database to more accurately market to its customers target group it could identifying the Customers, Profile of Shoppers and Analysing switching cost of the product.
McDonald’s is continually giving focus on the corporate responsibility and reducing the impact on the environment and community linkage.
McDonald’s is increasing international expansion and opening a new restaurant into the emerging market of China and India.
The new Format Mc cafe has an internet wifi link which in the attracting segment of McDonald’s  .
Changing Trends are a big threat for the McDonald’s like as Government rules and regulation, weather, Inflation, Recession.
Focus by customers on nutrition and healthier lifestyle.
Competitor’s pressure and new entrance into the market they are offering a great and healthier product.
Recession is another big threat for the McDonald’s during recession rise in the economy, Income, Budget and Spending of the people all decrease.
Creating and Developing Customer Loyalty
McDonalds is giving more concentration on the customer’s needs and wants and also on the satisfaction. The satisfaction of the customers is depend upon the quality and performance of the product if it is according to the buyer’s expectations but if the product performance is rise short then the customer will be dissatisfied. Customer’s satisfaction is depends upon their past buying experience, with the friends opinion, advertisement and on the promises and information providing by marketers and competitors. Customer satisfaction is significant for the customer loyalty. Customer may be satisfied with the each restaurant they always try to gain new experience and services. To develop the customer loyalty manager and employee must extremely satisfy their customers because the customer satisfaction is more than customer loyalty.
The manager of the McDonald’s identify that who have become loyal customer and identifying the way of creating a relationship with them which leads to the customer loyalty. Relationship marketing is related with creating, Maintaining and having a good relationship with customers. Relationship marketing is developing the relationship with the stakeholder which helps to the organization to serve customers. Difference between two types of marketing:
Relationship marketing is continuously making contact with their customers and giving focus on the needs, wants, value and also on the satisfaction of the customers. This marketing is providing product according the customers expectations.
Traditional marketing is a short term marketing which is related with the orientation of single sale and episodic contact with the customers. This marketing is meets with the customer’s expectation in limited and giving less concentration on the customer’s services and satisfaction.
There are five different levels of marketing relationship that are performed with the customers:
Basic: Restaurants is selling product but does not follow it any way and not advertising for their products promotion.
Reactive: Company sells their product and encourages their customers to make contact with them by calls if they have any problem and question related with their products.
Accountable: Company is responding phone calls to their customer after short time to gain their suggestion for the improvements of their product any specific reason behind their disappointment. This information helps the company to improve its offering.
Proactive: The salesperson and other employees of the company phones to have a suggestion about the improvement of their services they are collecting suggestion for the future events.
Partnership: Company works continuously with the customers, shareholders and stakeholders to discover the best way to deliver better customers value and services.
The degree of a customer staying with a specific company there are several tips for its progress if the company is fully interested in their business they have to give more concentration on the following maters to become a loyal customers:
Under stand the real purpose of the marketing:
According to, Poll “the marketing consist only of the promotional and publicity activity, building trust and developing relation ship with the customers”. The purpose of marketing is to Create and maintain the strong relationship with the customer so they continually attached and recommend the only their restaurants.
Understand that what customers want:
Company have need to take place as close to the customers as possible. Company therefore secure functional understanding and cooperation if they are developing their business company must understand the Motivation, Requirements, Value and Priorities of the customers. Company being tuned what customers want and they have to make sure that their product meets with the present and future need of the customers.
Integrity consist with fundamental behaviour good dealing, honesty, the words of com, best level of companies services. The company who demonstrates a high level of integrity is definitely trustworthy. For developing the interest of people company have need to create the customer’s interest in their own product by producing good quality and best services. The word integrity have not meaning without trust and trust is nothing without relationship.
Word of Mouth Marketing:
Word of mouth is a foundation of the marketing and customer’s loyalty that may be by the past customers, employees they are admiring the companies’ product and services and creating the customer’s interest in the selected company’s product front of the other people by the positive word of mouth to become a loyal customer.
Brand Strategy of the McDonald’s
According to Malcolm, ”Brand is name or symbol that identify the product”. There are three components of the Brand are the Brand strategy, Brand Positioning and the Brand Personality. McDonald’s is identifying their product as have sustainable advantages so that brand is valued a figure in access of their balance sheet value is that its relationship with the customers and company brand name of the McDonald’s secure these public relationship. Brand strategy is not a stable concept it is changing during time to time. McDonald’s is changing it looking and re-establishing its brand in anew design to attract the customers by using Brand Strategy.
Components of the Brand Strategy:
There are multiple components of the brand strategy but these are not limited such as Brand equity, Brand Loyalty, Brand Awareness, Perceived Quality, Name, Symbol, Slogan etc.
Marketing equity refers to the marketing effects and outcome brand equity is like as a net result which is related with the all negative and positive linked to the marketing brand, its name, and symbol that subtract value from their product and best services. Brand equity related with brand loyalty, Name, awareness, quality of the product and Brand Association.
Brand loyalty is relating with the repurchasing and continues using the brand and positive behaviour towards the company like as positive word of mouth. Brand loyalty is more than simple repurchasing of the product. The real brand loyalty is that the customer have positive attitude toward the brand and they are creating awareness among the people about brand’s product and services.
Brand awareness is a necessary part of the brand strategy. Company is advertising by using various sources like as Event sponsorship, Slogan, Using electronic media, Newspapers, Symbol which are increasing awareness. Company must be make sure by calling and links with the customer that after purchasing the product customer remember the company again and they know about their brand and product where it is available.
Perceived quality of the product improve the price and market share. It provides a reason why customer purchasing the product, and make differentiation its mean if the quality of product is best then customer ignores the price due to the product’s quality.
Public Relationship Strategy and Tactics
All company needs to have long term Strategy marketing view and Short term ‘Tactical’ marketing operation. Strategic marketing of the company is for a long period that extends for one year, and may be cover three to five years. It’s like as a back drop against the decision which is taken by company which it determines:
The current situation of the company
What is the target of the company
How it will achieve it
A tactical planning is for a short time normally for one year and less than it. Tactical marketing plan should not complete before strategic marketing plan. The detail level of the Tactics is much grater as it refers the Scheduling and cost of the product for achievements of the first year strategic plan.
Public Relation of the McDonald’s
According to Philip Henslowe (2008) Public relation are very significant part of the marketing it includes Strategic and Tactics. McDonald’s is announcing advanced public relation because it’s more than its public health. Public relations are about the communication in the broadcast with McDonald’s and with whom it has many forms of the contacts. To make a public relation McDonald’s is using different method:
McDonald’s is attending press conference to develop their public relations with the customers. Its target media is Television, Radio, Newspapers, Internet and their website in the press conference it’s creating awareness and attracts the customer by their product and services through using media and thanks the employee and customers for their efforts and hard work.
In the over all observation I have found the real purpose of the Marketing Strategy and Public Relation and Tactics which are the significant components of the hospitality and tourism marketing strategy. McDonald’s which have huge fast food restaurant chain in all over the World is doing marketing by Advertising their product on Television, Radio, Internet, Using Slogan, And sponsor events like Football and Cricket match. For running their business smoothly it’s using Swot and marketing mix strategy which is suitable for the needs of marketing and internal and external environment of the McDonalds.
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