Discuss about the Global Marketing Management and Advertising.
The study deals with Ronald McDonald house Townsville, which is an organisation that provides bedrooms to the families where the children suffer from serious illness. The marketing plan for Ronald McDonald house Townsville is developed to understand the marketing nature of the company. In order to prepare the marketing to plan the credible sources of the company’s marketing information. Furthermore, the marketing theories are analysed to evaluate the strategic planning and the process of marketing decision of Ronald McDonald house Townsville. The 7 P’s of Ronald McDonald house, Townsville is discussed along with the performance of the company related to the 7 Ps. The changing micro and macro environment of the company is focused on making the study more descriptive. Based on the current organisational performance, the recommendation is made that would help the company to enhance its performance level and productivity.
Ronald McDonald house, like all other organisations aims to carry out market segmentation in order to effective identify the target audience. The company targets the families of the children who are ill. The Ronald McDonald family rooms and the facilities for the families of the ill children help to provide the parents a retreat from the stress that they receive. The company provides financial support to the individuals suffering from seriousness illness through the RMHC Charlie Bell scholarship.
The volunteers of Ronald McDonald house are the supportive shoulder of the company at times when the customers need to relax. The volunteers perform a number of activities that helps to increase the customer satisfaction level (Wilson et al., 2012). The members work as a team as per the daily roster. The activities carried out by the volunteers include the task of housekeeping, gardening, maintaining, shopping, cooking and catering. Ronald McDonald house thus target individuals who would gratefully invest their time to become a part of the company as a volunteer.
Ronald McDonald house uses the 7 P’s of marketing as a marketing tool. The 7 p’s of marketing analyses the 7 areas of the company such as the product, pricing, promotion, placement, people, process and physical evidences (Sinapuelas, Wang & Bohlmann, 2015).
Ronald mc Donald’s house provides place for staying to the families whose children are ill and undergoes treatment in the hospital. As the families are allowed to reside within a given area, the company is effective in selling its goods and services within that prescribed area. The organisation provides more than 7,200 bedroom facilities to the families of the patient all over the world every night.
Additionally, it has many other helping hands too. RMHC`s charity programs and a focus on child healthcare has served many. Families are provided with food and a sense of safety. Along with a grant programs the Townsville house provide the people with a step towards education. Providing scholarships and volunteer schemes are also famous in its products.
Cost of the product offered is plays an important role in attracting the people. Ronald McDonald houses sets the price level of the goods offered to the customers at a very affordable rate that helps the customers to easily purchase the facility. The estimated value of the hotel cost that the families of the patient have to pay is about $700. Also, the house lets consumers pay an amount of $25 per day for the services. In order to fulfil the goals the brand seeks expert help to implement pricing strategies in the market.
Promotion being an effective tool to make the customers aware of the organisation is effectively carried out by Ronald McDonald. The company promotes its brand through direct marketing process with the help of media such as TV, online sources and social media. With a motive for well-being of the society, RMHC promotes its offered products and services in collaboration with the government.
The house invites volunteers from around the world and seeks for donators from advertisements on the internet. The website of the house adds up to its promotion factors. In addition to word of mouth, organising welfare programs, educational and recreational activities help Ronald McDonald house in attracting more people.
Ronald McDonald house has its houses located all over the country. Specifically, for the convenience of the people house are located in the safest parts of Townsville. Since, the company deals with bedrooms offered to the families of the patient, the houses are built adjacent to the hospitals or within a given distance from the hospital. This helps to create easily accessibility, which further increases the demand (Barrett & Weinstein, 2015).
Volunteers, donators, collaborators, stakeholders and all the people work together in increasing the productivity of the company. With a proper guidance by the management and the shareholders the house steadily moves towards success. The high quality service provided by the people of the company through effective communication and teamwork helps to build up a strong brand image (De Mooij, 2013).
McDonald is well known for their quick service delivery. The company is able to provide the service efficiently to the customers because Ronald McDonald house is confident about their service process. Further, the people are provided with an after-sales process at all times. The value chain process is also carried out efficiently by the supervisors.
Ronald McDonald house offers both tangible and intangible goods and services to its customers. The customers are offered bedrooms to relax with proper beds, chairs, tables, wardrobes, TV, food along with the best customer service. The ambience provided by the company is soothing and relaxing. The physical evidence of Ronald McDonald house is used as a tool to differentiate its products and services in the market from its competitors (Gordon, 2012).
Ronald McDonald house has been performing efficiently in the areas of 7 P’s of marketing. However, the company can bring about innovation in its products and offer wider variety to the customers. Efficiently allocating the resources are required to reduce the price of the product further down. Since, the customers are already spending high on the treatment, it is irrational for them to spend more on the bedroom services. Therefore, low price will be useful in increasing the price level.
With the change in the technology and the perception of the customers, the environment of the market has changed up to a great extent. The change can be viewed from two dimension namely micro and macro environment.
Ronald McDonald house observed a notable change in the microenvironment of the market such as its customers, producers, intermediaries, and the department within the organisation. Changes have occurred in the consumer behaviour that indicates a requirement for changes in the strategies of the company (Kotler et al., 2015). Customers nowadays prefer to pay little higher in order to achieve the best services therefore, it is important for Ronald McDonald house to increase the product’s quality.
Moreover, with the changes in the technology, there is the need for innovation within the organisation and in the products. Innovation in the products helps to increase the customer satisfaction level that creates brand loyalty (Sheth & Sisodia, 2015). The SWOT analysis helps Ronald McDonald house to determine the changes in the microenvironment by determining its strength, weakness, opportunity and threat.
The macro environment of Ronald McDonald house relates to the factors such as the political factors, economic factors, social and the technological factors. The PEST analyse is an effective tool that helps the managers of the company to analyse the changes occurring in the macro environment of the market. With the changes in the government, the political rules and regulations of the nation are also changed to some extent. High tax rate reduces the sales as consumers avoid paying high price for the same products and services (Lusch & Vargo, 2014)
The economic changes such as inflation, recession, changes in the interest rate accounts to the changes in the macro-environment of the market. Ronald McDonald house needs to adjust itself as per these changing factors of the economy. With the increase in the customer’s consciousness about health and the increased medical technologies, there is the reduction in the number of patients suffering from the illness (Huang & Sarigöllü, 2014). The advertising standard is another factor that adds to the changes in the market environment of Ronald McDonald house.
The company is unable to promote the brand stressing on the fact that it provides accommodation for the families of the patient since according to the advertising standards it creates a negative impact on the viewer (McKenzie-Mohr, 2013). Therefore, Ronald McDonald house needs to update itself according to the changes and adapt the changes.
Although Ronald McDonald house has a good position in the market, there are some areas that the company needs to improve in order to sustain in the market. Ronald McDonald house, Townsville needs to adopt cost-effective strategies that will help to minimise the unnecessary expenses and reduce the input cost (Hollensen, 2015). The company needs to train its employees more to increase the productivity of the labour. The efficient employees provide better customer service that transforms the potential customers into loyal customers.
Ronald McDonald house focuses on three main objectives that help the company to achieve the overall goal of the organisation, which are:
Reduce the price level of the products
Increase the number of customers of the company
Promote societal welfare.
Ronald McDonald house practices demand based pricing strategy but ignores the cost-based and the competitor based pricing that needs to be focused on. The well developed set of goals help the brand not only to maximise revenue generation but also works towards benefitting the community.
Ronald McDonald house uses the demand-based pricing strategy to set the price level, however, more effective strategies are required for the company to increase the profit margin and earn higher market shares. The concept of big-box stores or accommodation helps Ronald McDonald to achieve better access to more customers (Pavlou & Stewart, 2015). Branding strategy of Ronald McDonald house includes effective promotion through graphics, slogans via online and social media. The company allows discounts and offers on the products that attract more customers towards the company (Hartley & Claycomb, 2013). It is recommendable for Ronald McDonald house to carry out a test or survey to the customers before introducing a new marketing strategy in the market of Townsville.
Analysing the current marketing management conditions of Ronald McDonald House the following are suggested not only to improve profitability but also focus on societal welfare:
Managers need to expand business by building up new houses and more facilities in Townsville
A focus on the pricing strategy is also needed to attract customers and maintain reputation
RMH needs to emphasize efficiency of the workforce by organising schemes and programs that benefit them
Conclusion
The marketing nature of Ronald McDonald house, Townsville infers that the company has effective marketing strategy that offers the company a valuable position in the market. However, the company needs to adopt further strategies that will help the company to maintain a sustainable position in the market to continue the business with high profits in the future. The SWOT and the PEST analysis helps Ronald McDonald house to analyse the changes in the micro and macro environment of the market in which it operates. The recommended strategies such as implementing cost-based pricing strategies and competitor-based strategy helps the company to reach its goals. Moreover, technologies and innovation will help the company to grow and develop further in future.
References
Barrett, H., & Weinstein, A. (2015). Corporate entrepreneurship, the marketing mix, and business performance. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 144-150). Springer International Publishing.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes. Sage Publications.
Gordon, R. (2012). Re-thinking and re-tooling the social marketing mix.Australasian Marketing Journal (AMJ), 20(2), 122-126.
Hartley, R. F., & Claycomb, C. (2013). Marketing mistakes and successes. Wiley.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to a market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer New York.
Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2015).Marketing. Pearson Higher Education AU.
Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.
McKenzie-Mohr, D. (2013). Fostering sustainable behaviour: An introduction to community-based social marketing. New society publishers.
Pavlou, P. A., & Stewart, D. W. (2015). Interactive Advertising: A New Conceptual Framework Towards Integrating Elements of the Marketing Mix. In New Meanings for Marketing in a New Millennium (pp. 218-222). Springer International Publishing.
Rmhc.org.au. (2014). Ronald McDonald House Townsville. [online] Available at: https://www.rmhc.org.au/page/ronald-mcdonald-house-townsville [Accessed 16 Sep. 2016].
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