Using a mix of promotional strategies in the marketing of goods and services is very important for all businesses. In the case study of McDonald’s they engage in a range of promotional initiatives to attract new customers and keep the same customers consistently coming back. The promotional strategies that Mcdonald’s uses include advertising, relationship marketing, publicity and sales promotions. Other companies that also use similar promotion strategies include Apple and Nike. By using a mix of promotional strategies this business can increase there profit on their goods and services by attempting to attract new customers, increase brand loyalty, encourage older customers and provide information.
Advertising is seen in our everyday life now you see it on busses, billboards and on the television. McDonald’s use advertising as a way to engage there customers in there use of television that reaches a wide range. This Ads cost a lot of money to do like in 2009 McDonald’s launched and ad for there Mighty Angus and Grand Angus an voice actor Michael Carton in which the ad would cost over $10 million which was very successful. It was so successful that named one of the most successful ads in all of McDonald’s other ads. There are 6 main advertising styles include mass marketing, direct marketing, telemarketing, e-marketing, social media marketing and billboards. These Promotional strategies in adverting allow many ways to obtain there target market
Nike Inc. has the same use of marketing mix to uses the promotional strategies which also been done by other companies. The Promotional strategies nikes use include Publicity, advertising and sales promotions All these elements included in the promotion has different benefits for the business even if they are a multi-billion dollar company with the help of professional athletes like Lebron James, Cristiano Ronaldo and Kyrie Irving. (Opinion leaders) These athletes are involved in the promotion of Nike products in the sports they play. It is important for Nike to do this so they can expand their range of customers to as many as possible. This is all a part of the target market there sports line my only be seen in advertisements by athletes so it targets people who play sports or enjoy watching it this would change extremely if they had a person who has an office job and has no relation to sport this will decrease the sales of the item. Other companies that use the same type of advertisements include Adidas, Under Amour and Jordan they all use athletes to endorse there products. The different elements of the promotion mix play and influence in providing the customer in different ways to either gain a new customer or to continue with a previous customer. Nike is close to apple with how they gain customer attention. Apple knows its customers very well and has developed loyalty in their market share.
Relationship marketing is the development of long-term and cost-effective relationships with individual customers. McDonalds in there McCafe use loyalty cards rewards people after a number of purchases they are given a free beverage. A recently launched mymacca’s site which gives customers access to exclusive offers, newsletters, free Wi-Fi and online wallet. The loyalty program was introduced in the 1990’s by Coles then was also was introduced into Coles competitor Woolworths these being Everyday rewards because of the success Coles was having with it and encouraging customers to continue shopping at their store. In a recent survey found that 4/5 tend to shop at business with loyalty cards. Ikea also uses a Loyalty program called Ikea family card. The card provides cardholders with special offers just like McDonalds the benefits include discounts and entry into weekly draws. One of these deals include every $100 you spend you receive a $10 voucher. Apple has and loyalty program that does not involve a card or anything just that it is extremely hard to change from apple to an android to apple have a hidden loyalty program.
Publicity is any free news story about a business’s product. McDonalds uses publicity as a form of promotion the publicity in news stories it gives new products in the eyes of consumers this helps to show people the product, raise awareness of a product, highlights the business and helps reduce negative picture of the item. McDonald’s news articles that show there products in a good view increasing their potential profit these include “McDonalds all-day breakfast a hit- shares hit record high”. McDonalds have used people like a well know chef in Los angles that you can make an “elegant meal” with only using McDonald food this would bring in publicity to show that they food is that good that a well know chef can create a good meal out of it. Sponsorship how McDonald gets there products onto an international events an example would be the 2002 winter Olympics the McDonalds sponsorship costed around $100million for 4 years but had smaller events that they have sponsored like local little athletics. They have also have sponsored vehicles in motor racing they have sponsored cars in Nascars they did not just sponsor one car but many cars. McDonalds has sponsored a lot of sports and having many spokespeople examples being Kobe Bryant, Michael Jordan and Yao Ming these people are all a part of the NBA. The NBA also has been the partners (fast food partner).
Sales promotions is how you interact with activities or material for the customers. Sales promotions has goals to achieve to increase their products target marketing which leads to introducing new customers, encouraging samples of goods and increasing sales. McDonalds introduced a monopoly for a promotional reward it would work by making purchases of goods that would lead to stamps for properties that could lead to prizes like cash, cars, holidays and tvs. This promotional strategy being limited-time specials its encourages new customers and people to keep coming back for the possibility of winning something and this was happening in Australia the monopoly game costed McDonalds 167 million in giveaways. Nike have also used sales promotions in offering customers specials. The specials could be done during the holidays with high percentage of products to encourage new customers. Specials don’t only come in holidays for business but of course holidays are when people are going to spend a lot of money so specials will encourage people to purchase there products.
Companies uses many was to achieve high sales by using coupons, which are discounts for items. Premiums are ways to get something more with a product like having extras added onto it like purchasing a basketball hoop and receiving a ball as well. Refunds helps to get customer satisfaction so when they may receive a broken product they may return it to get a new one or store credit. Samples are small amounts of products to test like food or lotion to see if they are interested in purchasing more and maybe developing a recurring purchase. Point of purchase display is a way to in which gets encourage customers to purchase products by having it stand out or be at the end of a purchase at the checkout to which is displays sales to which encourage customers to purchase stuff they may not need.
In conclusion, the promotional strategy have different befits, roles and achieving profit form there goods. To which they use to establish a target market to by using all the elements to encourage new customers. They adopt ways to use the promotional mix can be used to obtain the business marketing objectives.