Marketing 22064Y

Assalamualaikum w.b.t

First of all I would like to send my thankful to God because give me a good health to complete my Practical English assignment according to a specify time given to me.

In other hand, I want to thank my parent and family who support me to further my study and give an encouragement in every good thing that I have done for my study and my future. My parent motivated me a lot to achieve a flying color for my results in every semester.

I also want to give a bundle of thank to my lecturer, Madam Norazura Binti Misran who is responsible to teach me and other friends. I would like to apologize if there are mistake that I have done during the Marketing class.

Besides, I also like to thank my friend, classmates, roommates and other individual who lend their hand for me to end my assignment.

Thank you.

Laili Farhana Bt Nordin (SHM 0807 1432) Page 1

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WHAT IS MARKETING

Marketing is the process by which companies determine what products or services may be of

interest to customers, and the strategy to use in sales, communications and business

development. It is an integrated process through which companies create value for customers

and build strong customer relationships in order to capture value from customers in return.

Marketing is used to identify the customer, to keep the customer and to satisfy the customer.

With the customer as the focus of its activities, it can be concluded that marketing management

is one of the major components of business management. The evolution of marketing was

caused due to mature markets and overcapacities in the last decades. Companies then shifted

the focus from production to the customer in order to stay profitable.

The term marketing concept holds that achieving organizational goals depends on knowing the

needs and wants of target markets and delivering the desired satisfactions. It proposes that in

order to satisfy its organizational objectives, an organization should anticipate the needs and

wants of consumers and satisfy these more effectively than competitors.

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WHAT IS TACO BELL

Company History:

Taco Bell Corp. is a California-based fast service restaurant chain that specializes in Mexican-

style fast food. Taco Bell--with 1995 sales in the United States of $3.5 billion dollars--held the

largest share of the Mexican-style restaurant market in the United States. In mid-1997 the fast

food chain was owned by the giant PepsiCo empire and was expected to soon become part of

the restaurant holding company TRICON Global Restaurants, Inc., a far cry from its modest

beginnings as a hot dog stand.

Taco Bell Precursor Opens in 1946

In 1946 Glen Bell, a World War II veteran, opened a hot dog stand in San Bernardino,

California. The 23-year-old Bell decided to start his own business after working for a local gas

company and a railroad system. Having bought a gas refrigerator at a discount from the gas

company, Bell sold it for $400 and used the money to secure a lease for the food stand site and

to buy building materials. Confident that the postwar economy would support his endeavor, Bell

opened the shutters of "Bell's Drive In" for business later that year.

Bell began unassumingly, remaining a one-person operation and serving only take-out food. His

first day of business brought in $20 over a 16-hour day. Working long hours--the stand's hours

of operation extended from nine a.m. to midnight--he eventually averaged $150 a day in

business during his first year.

In 1952 Bell sold his first stand and set about building an improved version. His new menu

comprised hamburgers and hot dogs, then staples of the emerging fast food industry.

Coincidentally, just as Bell built his second stand, the McDonald brothers were building their first

fast food restaurant, also in San Bernardino. By 1955 Ray Kroc, a traveling salesman touting

milk shake machines, would link up with the McDonald brothers and form the giant McDonald's

hamburger chain.

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YUM! BRANDS, INC WOULD LIKE TO PENETRATE MALAYSIA FAST FOOD

MARKET

TASK:

Prepare a report on whether or not Taco Bell should venture in Malaysia market

1. Definition of marketing:

Here I’d choose the definition from Groonroos and Merriam Webster which state like below:

“Marketing is to establish, maintain and enhance long term customer relationship at a profit, so that the objectives of the parties involves met. This is done by mutual exchange and fulfillment of promise.”

(Groonroos)

http://www.marketingteacher.com/Lessonstore.htm

“The process or technique of promoting, selling, and distributing a product or service”

(Merriam Webster)

http://www.websitemarketingplan.com

Groonroos Merriam Webster

Marketing must considers the economic and social aspects

Groonroos state that the relationship between customers is more important because from that they can have our their regular customers

Marketing must based on the product the we want to produce

Merriam Webster stressed that marketing must be based on 4p’s which is product, place, price and promotion

Agreement between the user and the buyer is

important in order to achieve the win – win

situation.

By designing products, setting sensible,

acceptable and justifiable prices, creating

awareness and preferences and ensuring

availability and services, the marketer can

influence the sales.

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The Groonroos define marketing that the

company should consider the economic and

social aspects of marketing to stable their

marketing environment. It shows that

marketing exist to have a long lasting

relationship with customers. This focuses on

developing a close relationship with their

customers, and is particularly important in the

information and library sector, means that

Taco Bell company have their regular

customers by giving specialty to them. They

provide the best product to obtained

customers satisfaction, so marketing has

success both the customer and the

organization.

It is a logic definition that uses McCarthy's

Four Ps. In my understanding, it shows that

marketing already target our customer to

inform and educate about our organization and

our products such as Taco Bell company

advertise their product via media to promote

the product. Taco Bell company also do a

research to find the right place to make sure

the product will be easier to reach their

customer which mean it is a strategic business

to distribute Taco Bell product. At the right

price which state a suitable price for the

product by using psychological price or etc.

It only give an attention to the relationship with

consumers is more important than others. This

lead to marketing for the company cannot

sustain and increase profits.

They just concentrate on the selling of a

product or services side without concern about

the production process.

Although there are a few different between both definitions but both also agree that said

marketing is a management process. It requires planning and analysis, resource allocation,

control and investment in terms of money, skilled people and physical resources which the

Merriam Webster with 4 P’s that is a technique to planning the business that they have to cover

their whole marketing cycle including defining mission, and market research, and that they focus

on the needs of the target market that is the people you want to use the product or service or

the individual customer. While the Gronoos said that marketing is planning to consider the

economic and social aspects which is the societal marketing concept holds that the

organization's task is to determine the needs, wants, and interests of target markets and to

deliver the desired satisfactions more effectively and efficiently than competitors, in a way that

preserves or enhances the consumer's and the society's well-being. It also requires

implementation, monitoring and evaluation.

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2. Main characteristics of a marketing-oriented organization:

In my understanding, Taco Bell adopt and implement the marketing concept which is said to

be market oriented. Market orientation is a philosophy that assumes that a sale does not

depend on an aggressive sales force but rather on a customer’s decision to purchase a product.

Market orientation involves a firm essentially basing its marketing plans around the marketing

concept, and thus supplying products to suit new consumer taste.

A business that has a marketing orientation sees the needs of customers and consumers as

vital. As it develops and markets products to meet those demands, certain structural

characteristics become apparent in the business.

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Marketing Oriented

Shared value Organization

Strategy Stakeholders

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3. Explain the elements of the marketing concept

“The major feature of the marketing oriented organization is that they are aimed to stay

closer to the customers and ahead of their competitors. The reason is that the basic aim of

these organizations is to attract the customers. There are four major characteristics which

define the marketing oriented organizations including shared values, organization, strategy and

stakeholders. Firstly, all decisions of these companies consider the customers first and they

share the common value of superior quality of products. Secondly, their organizational structure

has very few layers and their policies are not very difficult. Thirdly, the strategy of a market

oriented organization is long term, flexible and participative. Finally, they consider the

expectations of the stakeholders before making any important decision.”

http://wiki.answers.com/Q/

Shared value is all decisions of these companies consider the customers first and they

share the common value of superior quality of products. Shared value focuses on the needs of

the buyer and the idea of satisfying the needs of the customer by assuming the product or

service used as the solution to the customer’s needs and wants. When, the customer will be

more satisfied and the firm will be more profitable. So that, both parties involve in the win-win

situation. For example, our customers want to buy Taco Bell product and we fulfill the demand

by satisfying their needs and want. The customer will get the product and we get money as a

return.

The organizational structure is a pattern of relationships among position in the

organization and among members in the organization. Organization structure has very few

layers and their policies are not very difficult. The purpose of the structure is to divisions work

among members in organization and to co-ordination of their activities so that people in the

organization are directed towards the goal and objectives. For example, organizational structure

of Taco Bell should has a few department like Top management, Finance, Research &

Development, Human Resource, Purchasing, Marketing and Operation to work together to build

a strong position in market environment.

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Market-oriented strategy defines goals and focuses action based on the structure of the

marketplace. Strategy that is grounded in the marketplace provides a realistic basis for aligning

day-to-day actions with long-term ambitions, setting goals and objectives, allocating resources

and focusing actions. Additional sections of the marketing plan lay out an action program for

implementing the marketing strategy along with the details of a supporting marketing budget.

The last section outlines the controls that will be used to monitor progress and take corrective

action. For example, Taco Bell has to define the organization goals and focuses. But to achieve

the goal we have to monitor our day-to-day progress to make sure our organization is on the

right strategy track.

The market orientation literature focuses upon external stakeholders as the content or

target of a market orientation strategy. This is problematic for understanding the successful

implementation of a market orientation strategy because internal stakeholders provide the link

between strategy-makers and external stakeholder targets. Anchored in market orientation,

dynamic capabilities, and stakeholder research, the study describes how internal stakeholders

in a market orientation process can impede or encourage the achievement of market-oriented

objectives by a market-oriented company. For example, entities of Taco Bell such as customers,

suppliers, lenders, or the wider society which influence and are influenced by an organization

but are not Taco Bell internal part.

Based on the characteristic of marketing oriented we can conclude that marketing

concept is focusing on customer need and wants so that the organization can distinguish its

product from competitors’ offerings. Besides that, marketing concept also integrating all the

organization’s activities, including production, to satisfy these wants. It is also can achieve long

–term goals for the organization by satisfying customer wants and needs legally and

responsibly.

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4. Costs and benefits adopting a marketing approach

BENEFITS OF MARKETING APPROACH

Customer satisfaction is the feeling that a product has met or exceeded the customer’s

expectations. Keeping current customers satisfied is just as important as attracting new ones

and a lot less expensive. Yum! Brand Inc applied a few of marketing approach in the business.

Yum! Brand Inc can achieve a customer satisfaction. Yum! Brand Inc has to concern about the

customers need such as customer’s taste, customer’s favour, customer’s interest and many

more. When we produce a product that is fulfilling their needs, customer will satisfy with us and

Yum! Brand Inc will be rewarded with repeat sales and referrals that lead to increases in sales,

market share and profits. Cost also fall because serving existing customers is less expensive

than attracting new ones. For example one of our customer is a cheese lover, so we serve the

Cheese Extreme Quesadilla to him, he will be satisfy with our product and he will repeat to buy

the Cheese Extreme Quesadilla.

Improving their product, services and marketing process to the high-quality. Produce a

goods and services that are of the quality customers expect. It will be a bonus for those

company that give high quality of products and services to customers more than they expect.

Yum! Brand Inc also can get a benefit with concern about the quality of services and products.

We design and improve the product and service to the high-quality more than customers expect.

Yum! Brand Inc produce the high quality food content, while always providing great taste.

Although, we offers a high-quality product but we sell at a lower price. Besides, trans fat and our

brands have been actively reducing artificial trans fat in our products. Now, at Yum! Brands Inc,

we are focused on improving the nutrition in each of our product. By take care about the quality,

it has a direct impact of product performance and customer satisfaction when use our product.

For example, a people who are having an obesity disease will avoid fast foods that mostly have

a lot of fat. But, by improving our product with reducing trans fat, an obesity person still can eat

fast food and choose our Diet Menu product.

A strategy that entails forging long-term partnerships with customers. The company have

to build relationships with customers by offering value and providing customers satisfaction.

Besides, Yum! Brand Inc will get a benefit by build a good relationship with customers. We must

be customer centered, winning the customer and keeping growing them by delivering greater

value. By producing a high-quality product Yum! Brand Inc can create a good relationship with

our customers. Yum! Brand Inc also can winning customers and keep their customer to repeat

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of purchases and tell others about the good experience with Yum! Brand Inc products. Yum!

Brand used an internet as an effective tool for generating relationships with customers because

of its ability to interact with the customers. For example, Yum! Brand Inc produces a product

that is fulfilling customer satisfaction, so the customer will be our regular customer. We also can

collect information about their needs and feedback by using an internet. This facility will bring a

good relationship between us because we can communicate with each other.

The company should concern about customer needs and wants. The marketer should be

aware of several trends in natural environment. It is also having to aware of changes in

customers desires. Otherwise, to get another benefit, Yum! Brand Inc has to concern about

customer care. Yum! Brand Inc should aware of several trend in natural environment. We have

to satisfy customer needs and want while protecting an environment by used a recyclable

materials and ecologically safer product. Yum! Brand Inc passionate about helping people better

themselves and their communities, we are determined to address three critical challenges that

are the health and nutritional needs of our consumers, feeding the world's hungry and

understanding and respecting the sensitive environmental and agricultural resources on which

our business depends. For example, we prepare Diet Menu for those who are concern about

healthy eating habit and we used recyclable materials such as glass for drink. We can wash it

and use it many times without pollute our environment

Continuously collecting information about customers need to ensures that the firm keeps

focusing on customer needs and wants. Market research also gives a benefit to Yum! Brand Inc.

It is because Yum! Brands Inc need to know customer’s thoughts and suggestions to our

restaurants. From the comment and suggestion, we can make changes or improvements to

cater for the needs of customers in more considerate way. After we make more improvements,

customers can benefit more and get better served. Other than that, we also prepared our

website to tell about new product, price and many more. For example, Yum! Brand Inc prepared

an online feedback form at www.tacobell.com/legal/feedback so customer can give a feedback

to us directly. Besides, we also prepared an application on Facebook that allows users around

the world to send gifts in the shape of iconic Yum! Brand Inc menu items.

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COSTS OF MARKETING APPROACH

.

A company only can serve the product to the selected target market. Not open the

market to others. It will be costly to Yum! Brand Inc when it only served the product to those

who the product is directly. We are not open the market to the other. By keeping current

customers satisfaction it is hard for us to attracting new customers. For example, Yum! Brand

Inc was target at certain part in a big city like Kuala Lumpur and Penang to run our business.

We just can serve the product for those who live in Kuala Lumpur and the capital city of Penang.

We cannot serve our product to those who live in interior place. So, our product cannot be

serving to all consumers in a given market.

It will not produce more. It only produces the product to the selected target market.

Applying marketing approach also can low the productivity of the company. Yum! Brand Inc will

not produce other more of the product because we already stress on our selected target market

even we have a lot of product choices. For example, we spend our money to improving our

product which is wanted by our selected target market to satisfy their needs and wants. So, we

no longer have much money to produce more. That is why we will low in productivity.

It involves high cost in retaining the customers. The cost of attracting the selected target

market is high. Then, it is highly cost on Yum! Brand Inc to informing customers or consumers of

the existence of the product and persuading them to buy it in any kind of way such as providing

it through internet, making advertisement, send pamphlet, and many more to get into Malaysia

market. The needs to do this great and effective kind of advertisement which in short, will cost

us a lot of money. As an example, Yum! Brand Inc will pay to TV1, TV2, TV3 and many more

when we needs their services to advertise our product through their channel. We also need to

pay to programmer because we need their service to create a Yum! Brand Inc website.

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5. Macro and micro environmental

MARKETING ENVIRONMENT

“The company marketing environment can be defined as the 'controllable and uncontrollable

elements that influence the strategic direction of the company'. The company marketing

environment can be analyzed in two broad levels. The macro environment involves looking at

uncontrollable variables that influence company strategy. This is discussed further in PEST

Analysis. The micro environment involves analyzing controllable variables close to the company

that the company does have an influence over. This usually involves undertaking a stakeholder

analysis.”

www.brainmates.com.

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Political Economic

Social Technological

Company SupplierCustomer

Competitor Public Intermediaries

Marketing Management

Micro environment

The company

Competitors

Customers

Suppliers

Publics

Intermediaries

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MICRO ENVIRONMENT

The company aspect of microenvironment refers to the internal environment of the

company. This includes all departments, such as management, finance, research and

development, purchasing, operations and accounting. Each of these departments has an impact

on marketing decisions.

In designing marketing plans, marketing management takes other company groups into

account – group such as Top management, Finance, R&D, HR, Purchasing, Marketing and

Operation. All these interrelated groups from the internal environment: Top management – sets

the company mission, objective, broad strategies and policies, Finance – finding and using

funds to carry out marketing plan, R&D – designing safe and attractive product and Purchasing

– purchase good value and quality material. In Yum! Brand Inc environment, all of department

like Top management, Finance, Research & Development, Human Resource, Purchasing,

Marketing and Operation have to work together to build a strong position in market environment.

Together all of these departments have an impact on the each other department plans and

actions. Each of the department should consider about other company department into its

account. We must have a good relationship among us to make sure our organization can

compete the others company and achieve our goals. As an example, manager from Operating

department have to work with manager from Finance department because he needs to know

company capital if he want to buy a new machine or a material to improve our product to

compete with the others.

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Organizations survive on the basis of meeting the needs, wants and providing benefits

for their customers. Failure to do so will result in a failed business strategy. We also have build

relationships with customers by offering value and providing customer satisfaction. Customers

remain loyal to us because we provide them greater value and satisfaction than they expect

from competing firms. We have to understand our customers and we have to follow them. By

producing a high-quality product Yum! Brand Inc can create a good relationship with our

customers. Yum! Brand Inc also can winning customers and keep their customer to repeat of

purchases and tell others about the good experience with Yum! Brand Inc products. Taco Bell

used an internet as an effective tool for generating relationships with customers because of its

ability to interact with the customers. For example, Yum! Brand Inc produce a product that is

fulfill customer satisfaction, so the customer will be our regular customer because we

understand and follow them.

Increase in raw material prices will have a knock on affect on the marketing mix strategy

of an organization. Prices may be forced up as a result. Closer supplier relationships is one way

of ensuring competitive and quality products for an organization. It is also a benefit for us from

stable relationships with suppliers. Supplier problem can seriously affect marketing. A

partnership with our suppliers are essentially to producing high-quality product while cutting

costs. Monitoring the price trends of suppliers key input. Here we know that the relation of

supplier with the Yum! Brand Inc also one of important thing that help us to be the most quality

product. Without good raw material, Yum! Brand Inc cannot produce good product that had

been bought by our customer. For example, me as a Yum! Brand Inc marketing manager have

to monitor Perusahaan Saudi Sdn Bhd as our pita bread supplier price trend. If their price is

higher it may force our price also increase. It can harm our sales.

Intermediaries help the company to promote, sell, and distributes its goods to final

buyers. They include resellers, physical distribution firm, marketing service agencies, and

financial intermediaries. Resellers – distribution channels firms that help the company find

customers or make sales on them. Physical Distribution Firm (logistic) – helps the company to

stock and move goods from their points of origin to their destination. Marketing services

agencies – marketing research firms, advertising agencies, media firms and marketing

consultation firms that help the company target and promote its product to the right markets.

Financial Intermediaries – include banks. Credit companies, insurance companies, and other

businesses that help finance transaction or insure against risk associated with the buying and

selling of goods. For those who seek information about Yum! Brand Inc product, marketing

intermediaries act as a mechanism to help us to promote and advertise our product. Marketing

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Macro environment

Political

Social

Economical

Technological

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intermediaries also form an important component of the company’s overall value delivery

system. Yum! Brand Inc has to create a good marketing partnership with marketing

intermediaries in Malaysia to optimize the performance of the entire system. Such as, Yum!

Brand Inc created a long-term partnership with the Milo. Throughout the partnership, Yum!

Brand Inc will conduct Milo themed promotions and will have a significant presence on national

SUKMA games telecasts on TV1, TV2, TV3 and other.

The name of the game in marketing is differentiation. What benefit can the organization

offer which is better than their competitors. Competitor analysis and monitoring is crucial if an

organization is to maintain its position within the market. Other than that, Yum! Brand Inc has to

understanding our competitive arena and competitor’s strengths and weaknesses. This includes

assessing what existing or potential competitors might be intending to do tomorrow as well as

what they are doing today. Our management might have better understood the changes taking

place, seen the competitive threat and develop strategies to counter the threat. For example,

Yum! Brand Inc has to study about Mc Donald, KFC, A&W, Burger King, Pizza Hut opportunities

and their threat.

MACRO ENVIRONMENT

“The firm has interaction and interdependence with economic, social, political, legal,

technological and cultural forces. These are called macro environmental forces. These

environmental forces define the resource, opportunities and threats available to and facing the

firm.”

www.learnmarketing.net

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The first element of a PEST analysis is a study of political factors. Political factors

influence organizations in many ways. Political factors can create advantages and opportunities

for organizations. Conversely they can place obligations and duties on organizations. Yum!

Brand Inc needs government regulation to protect innovators of new technology, the interest of

society in general and consumers. Every aspect of the marketing mix is subject to laws and

restrictions. All food manufactures in Malaysia have to follow Malaysian Food Act 1983(Act 281)

& regulations to produce the food. Food premise means premises used for or in connection with

the preparation, preservation, packaging, storage, conveyance, distribution or sale of any food,

or the relabeling, reprocessing or reconditioning of any food. Each operator of Food must

attend Operator Training Food from training institutions recognized by the Ministry of Health

Malaysia. If not training or do not have certificates of training, can be a fine not exceeding RM10

000 or imprisonment not exceeding two years. Besides, halal logos and certification issued by

private agencies will no longer be recognized in Selangor. Only the standard certification issued

by the Islamic Development Department (Jakim) and Jais will be valid. The decision was in line

with the Trade Description Act 1972, to standardize halal certification. It is my duty as a

marketing managers or our legal assistant to understand the laws and conform to them,

because failure to comply with regulations can have major consequences for our company. For

example, in Malaysia has many laws covering issues such as competition, fair trade practices,

environmental protection, product safety, halal brands and etc. I should consider all of political

and legal issues that happen in Malaysia before let the Yum! Brand Inc venture in Malaysia

market.

The second element of a PEST analysis involves a study of economic factors.

All businesses are affected by national and global economic factors. National and global interest

rate and fiscal policy will be set around economic conditions. The climate of the economy

dictates how consumers, suppliers and other organizational stakeholders such as suppliers and

creditors behave within society. When Yum! Brand Inc venture Malaysia market, it will reduce

unemployment because we will offer a job for those who are qualified with the job offer. When

the unemployment reduced, there no inflation occurs at Malaysia. On the other side, when there

have a bit problem of recession go in hand, we still can venture Malaysia market with a few

different marketing strategies for our company. Firstly, reduce production hours and the cost of

materials by improved existing products and introduce new ones. Secondly, postpone the

purchase of new equipment and materials by maintain and expand our customer services.

Thirdly, emphasize top-of-the-line products and promote product value.

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The third aspect of PEST focuses its attention on forces within society such as family,

friends, colleagues, neighbors and the media. Social forces affect our attitudes, interest s and

opinions. These forces shape who we are as people, the way we behave and ultimately what

we purchase. Besides, population changes also have a direct impact on organizations. Changes

in the structure of a population will affect the supply and demand of goods and services within

an economy. Increase in the Malaysia population and food shortage predictions are currently

leading to calls for greater investment in our food production. Social forces also affect our

customer attitudes, interests and opinions. Malaysia has composes of various races such as,

Malay, Chinese, India, and many more. They tend to have different religious beliefs that can

strongly affect for buying Yum! Brand Inc product. For example Islam, there are very sensitive

on halal issue. Yum! Brand Inc has takes it seriously by avoiding to product non-halal food like

pork. For the Hindu, they cannot eat meat. So, Yum! Brand Inc cannot suggest meat food

product for them. We need to respect each of the religion in the country.

Unsurprisingly the fourth element of PEST is technology, as you are probably aware

technological advances have greatly changed the manner in which businesses operate.

Nowadays, technology infrastructure such as the internet and other information exchange

systems runs very well in Malaysia. Technology hardware such as mobile phones, Blackberrys,

laptops, desktops, Bluetooth devices, photocopiers and fax machines can be use to transmit

and record information. We also can use the technology systems incorporating a multitude of

software which help us manage our business. For example, with the internet excess Yum!

Brand Inc joined a Facebook to make easier to collect information about customer needs. We

also can introduce our new product through it.

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6. Segment the business and consumer markets

CONSUMER MARKET

Consumer market can be defined as all the individuals and households who buy or acquire

goods and services for personal consumption. There are major variables that might be used in

segmenting consumer market.

Geographic

Dividing a market into different geographical needs and wants. A company may decide

to operate in one or a few geographical areas, or to operate in all areas but pay attention to

geographical differences in needs and wants. Taco Bell should segment their market that where

they can target people and develop goods and services for each of them to venture Malaysia’s

market. We also can focuses on the state which had been developing by a lot of changing and

become the busier town with urban density. For example, Taco Bell target to market our product

at Kuala Lumpur because Kuala Lumpur is a densely populated city. The population of Kuala

Lumpur is 1.58 million, according to the census in 2006. The population density in Kuala

Lumpur is 6502 people per sq km. Besides that, Taco Bell also target the product to be market

at Penang because Penang has the highest population density in Malaysia with 2,031.74 people

per square kilometer on the island and 865.99 people per square kilometer on the mainland. So,

we can attract more people to buy our product because they can be our potential customer

when prefer to choose quick served food.

Demographic

Dividing the market into groups based on demographic variables. Demographic factors are

the most popular bases for segmenting customer groups because consumer needs, wants and

usage rate often vary closely with demographic variables.

Age: Consumers need and wants change with age. Taco Bell segmenting the product for an

adult because mostly the product of Taco Bell is suitable to adult age such as Fresco Burrito

Supreme–Steak. Besides, Taco Bell also segment the product for kids because we serve a Kids

Meal for them.

Income: The average people in Malaysia are in the middle of income rate. So they are

affordable to buy Taco Bell product if we sell with the suitable price. Besides, we have to care

about customer value by concern on the quality of the product. So, customers don’t care to

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spend more for the good quality products. For example, Taco Bell sell The Drive-Thru Diet

Menu for RM7.62, which is affordable for person in a middle income rate to buy it.

Religion: There are the most popular religion in Malaysia are Islam, Buddhist, Hindu, and

Christian. Taco Bell has to study the culture of each religion. For example Islam, there are very

sensitive on halal issue. Taco Bell has takes it seriously by avoiding to product non-halal food

based on Trade Description Act 1972, to standardize halal certification. For the Hindu, they

cannot eat meat. So, Taco Bell cannot suggest meat food product for them. We need to respect

each of the religion in the country.

Psychographic

Dividing a market into different groups based on social class, lifestyle or personality

characteristics. People in the same demographic group can have very different psychographic

makeup. Marketers often segment their markets by consumer lifestyle. Taco Bell also segment

our markets depends on consumer lifestyle. For example, we serve The Drive-Thru Diet Menu

for those consumers who were on diet. Taco Bell also has used social class variables to

segment our markets. The Drive-Thru Diet Menu is segment to the working class person

because they are busy at a workplace so they do not have enough time to cook or to queue for

buy at our restaurant. We prepared a drive-thru concept to easier our customer.

Behavioral

Dividing a market into groups based on consumer occasion, benefit, user status, usage rate

and loyalty status. Many marketers believe that behavior variables are the best starting point for

building market segments. Benefit segmentation is a powerful form of segmentation is to group

buyers according to the different benefits that they seek from the product. Taco Bell used

benefit to segment our product. For example, customers who are on diet take benefits when we

serve The Drive-Thru Diet Menu. They do not have to take pains to prepare their own food by

following their diet menu. Taco Bell also segment the market based on loyalty status.

Customers can be divided into groups according to their degree of loyalty toward each product.

Some of our customers they buy one brand all the time. But some of our customers loyal to two

or three brands of a given product or favor one brand while sometimes buying others of our

product. By studying its less loyal buyers, we can detect which brands are most competitive with

its own. For example, some of the customer who are too care about diet will loyal to Taco Bell

Drive-Thru Diet Menu only, but some of customer who

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BUSINESS MARKET

The business market consists of four broad segments: producers, resellers, institutions and

government. Whether marketers focus on only or on all four of the segment, they are likely to

find diversity among potential customers. Thus, further market segmentation offers just as many

benefits to business marketers as it does to consumer-product marketers.

Location

Location is especially important for businesses in the retail and hospitality trades because

they rely a great deal on visibility and exposure to their target markets. But location is also

important for service and manufacturing ventures, which have such costs as advertising,

promotion, and distribution that are a direct result of where they're located. Manufacturers will

usually be restricted to industrial areas by the zoning ordinances of most towns and cities. The

main criteria for manufacturers is the suitability of shipping and loading facilities, the distance to

key suppliers of raw materials and markets, the availability of cheap fuel, and the skill of the

support staff in the local area. For example, Taco Bell has to search for the specific location to

run the business. We have to identify the distance from our restaurant with the Perusahaan

Saudi Sdn Bhd as our pita bread supplier because it is easy for us to buy pita bread.

Behavioral characteristic

In behavior segmentation, potential buyers of a product are divided into groups based on

their knowledge, attitude, uses, or responses to a product. Such behavioral characteristics may

include usage rate, buying status and purchase procedure. The purpose of this segmentation is

to comprehensively evaluating such factors as the quality and performance of the equipment to

be purchased, compatibility with existing facilities, degree of reliability, product requirements

including safety, delivery time, and the scale of the order, after-sale service and the supplier's

previous business record. For example, Taco Bell has to know the purchase procedure of

Perusahaan Saudi Sdn Bhd such as begin with determine the specifications and quantity and

delivery of materials and select Perusahaan Saudi Sdn Bhd as a supplier. Then Perusahaan

Saudi Sdn Bhd will be asked to submit cost estimates and specifications to Taco Bell to a

specified date. The specification sheets submitted by Perusahaan Saudi Sdn Bhd at their own

expense are checked by the Purchasing Department. After valid cost estimates and

specifications have been comprehensively evaluated, we will commence negotiation with them

with the most attractive proposal to discuss the amount of the contract and other terms and

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conditions. The business will be established upon conclusion of a contract. Then delivery dates

specified in the contract must be strictly observed and payment will be made according to the

payment terms specified in the contract.

Company type

Business customers can be classified according to types like company size, industry,

decision making unit and purchase criteria. It is important to make sure the quality of a material

supply to the company, the quality of service and also the price rate offer by supplier. We also

need to know about the stability of the supplier company. For example, Taco Bell needs to know

Perusahaan Saudi Sdn Bhd company type before we agree they will supply pita bread for our

company. We have to do a research about the business type, total annual sales and purchase,

export percentage, industry and many more. Perusahaan Saudi Sdn Bhd business type is

manufacturer. Total annual sales for Perusahaan Saudi Sdn Bhd are about RM35000000-

RM175000000 and the total annual purchase is about RM17500000-RM35000000. The export

percentage for Perusahaan Saudi Sdn Bhd I 11%-20% and Perusahaan Saudi Sdn Bhd is a

food industry. From the research we can accept Perusahaan Saudi to be our pita bread

supplier.

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7. Outline factors influence the choice of targeting strategy

Target Marketing involves breaking a market into segments and then concentrating your

marketing efforts on one or a few key segments. Target marketing can be the key to a small

business’s success. The beauty of target marketing is that it makes the promotion, pricing and

distribution of your products and services easier and more cost-effective. Target marketing

provides a focus to all of your marketing activities.

Taco Bell announced its entry into the kids' meal

arena, with four core menu items designed especially

for children age’s four to 10. The new meals include a

main entree, nacho chips, milk drink, dessert and toy

premium, and range in price from RM6.90 to RM8.00.

The menu was rolled-out nationally in all 4,500 stores,

timed to meet the heavy youth demand over the summer months, and will capture evening and

weekend customers into the fall and winter months.

Taco Bell target on kids by this product because nowadays market size of kids are

increase and others competitors serve a package for child. Such as Mc Donalds serve Happy

Meal and KFC serve Chicky Meal for their kid customers. So, Taco Bell needs to serve Kids

Meal to compete with our competitor to attract not only adult customer as the parent but also the

child.

Taco Bell used an attracting packaging to attract kids to buy our product. We used a lot

of attractive color like pink, yellow, orange, blue and many more. Besides, a survey of majority

school-age children in four markets found that 94% of them preferred to drink milk from a plastic

bottle rather than a paper carton. A majority of the students said the plastic bottle is easier to

open and drink from, and they perceived that milk tastes better when consumed from a plastic

bottle. The students indicated that plastic bottles are more convenient to use, even though the

traditional gable-top carton has, in recent years, added convenience features such as spouts.

So, Taco Bell chooses to serve the milk drink for this Kids Meal in a plastic bottle.

Otherwise, the raw materials for this meal are suitable for children growing process. It

does not disturb the growing process in fact it have a good nutrition on the menu such as the

pita bread that is included in the main entree.

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“Pita bread has two major nutritional benefits. The first is the amount of dietary fiber in the pita

bread. While there is only 1 gram of dietary fiber in one serving of pita bread, this is 5 percent of

your daily recommended amount of fiber. It is important to add fiber when you can, as it is the

key to a regular digestive system. Pita bread can also add protein to whatever meal you use it

for. One serving of pita bread has 5 ½ grams of protein. This is 11 percent of your daily

recommended amount of protein. Protein is important for your muscles, as it is needed for the

repair and growth of the muscles. Protein is also needed for healthy hair, nails and skin”

http://www.ehow.com/

So, the pita bread will help kid’s digestive system. Otherwise, the protein is really important for

kids in a growing process of muscles while they are still young to make it healthier. It is also

important to stronger kid’s antibody to avoid them from disease.

In the other hand, we also put together toy premium in this menu to attract kids to buy it.

We keep changing the toy to make it more interesting for kids desire to have it. For example,

Taco Bell put together The Tick Animation Taco Bell Kids Meal Toy in Kids Meal Package. The

Tick has a square-jawed, muscular, bright blue-costumed figure with antennae sticking up from

his head, The Tick is a surreal parody of superheroes, in the vein of Dave Sim's character, The

Cockroach

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Marketing and other stimuli

Marketing Other

Product Economic

Price Technological

Place Political

Promotion

Buyer’s black box

Buyer characteristics

Buyer decision process

Buyer responses

Product choice

Brand choice

Dealer choice

Purchase timing

Purchase amount

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8. Buyer behavior models

CONSUMER BUYER BEHAVIOR MODEL

Buyer behavior refers to the buying behavior of final consumers, individuals and households who buy goods and services for personal consumption. Most economists assume that consumers are economic buyer, people who know all the facts and logically compare choices in terms of costs and value received to get the greatest satisfaction from spending their time and money.

Marketing stimuli consist of 4P’s. There are product, price, place and promotion. On 6 th

September 2002, Taco Bell was produced Cheese Extreme Quesadilla as the third quesadilla

product. The limited time product contains a three-cheese blend that includes mozzarella,

cheddar, and pepper jack cheeses, and nacho cheese sauce on a grilled tortilla.

The product is $1.29 and it will be RM4.52 when we convert into Malaysia market . With

the purchase of a Cheese Extreme Quesadilla Combo, customers will get a Cheese Extreme

Quesadilla, crunchy taco and a free X Games collector cup for RM10.47 in ringgit Malaysia. The

price is reasonable in a Malaysia market because it is affordable for customers to buy it.

This product is available Suria KLCC Kuala Lumpur, Times Square Plaza Kuala Lumpur,

Gurney Plaza Penang, Angsana Plaza Johor Bahru. We choose all this shopping mall as our

connection to meet our customer. We will make sure all of our franchises serve the Cheese

Extreme Quesadilla to customers.

"The Xtreme Deal" promotes the Cheese Extreme Quesadilla and four collectable X

Games beverage cups. The cups feature popular X Games athletes including international

skateboarder Mike Frazier, pro BMX rider Allan Cooke and others to attract customer to buy our

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product. The cups will also be sold separately for an additional RM2.77 with the purchase of a

large. Taco Bell is joint venture with Milo as an official sponsor of Games events.

However, other stimuli include major forces and events in the buyer’s environment. One

of the stimuli is political. Taco Bell have to make sure the Cheese Extreme Quesadilla follow

Malaysian Food Act 1983(Act 281) & regulations to produce the food. Besides, it also have to

follow Trade Description Act 1972, to standardize halal certification

In the other hand, in social factor, population changes also have a direct impact on

organizations. Changes in the structure of a population will affect the supply and demand of

goods and services within an economy. Increase in the Malaysia population and food shortage

predictions are currently leading to calls for greater investment in our Cheese Extreme

Quesadilla production.

Taco Bell applied a technology in production process of Cheese Extreme Quesadilla.

We use a grinder cheese to blend three-cheese that includes mozzarella, cheddar, and pepper

jack cheeses.

In the buyer’s black box, they are turned into a set of observation. The buyer

characteristic influence how customers perceive and reacts to stimuli. Second, the buyer

decision process itself affects the buyer behavior. Consumer purchases are influenced strongly

by cultural, social, personal and psychological characteristics.

Cultural

Taco Bell needs to understand the role played by the culture, subculture and social class.

We have to know the most basic cause of a customer wants and behavior. We have to learn

more about Malaysian’s culture. The Taco Bell’s product should refer to the set of values, ideas

and attitudes that are shared in a society. Some customers are influences to buy our product

based on their family, friends and other important institutions. Such as, they are influences to

buy Cheese Extreme Quesadilla suggested by their friends.

Social

Consumer behavior is influence by social factor such as small groups, family and social

roles. Customers often are influenced by reference groups to which they do not belong. Taco

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Bell needs to identify the reference groups of their target markets. Mostly reference groups

expose customers to new behaviors and lifestyles, influence the customer’s attitudes and self-

concept and create pressures to conform that may affect the person’s product and brand

choices. Besides, family members can strongly influence buyer behavior. The family is the most

important consumer buying organization in society and it has been researched extensively.

Taco Bell is interested in the roles and influence of husband, wife and children on the purchase

of our products. Husband-wife involvement varies widely by product category and by stage in

the buying process. Children may also have a strong influence on family buying decisions. For

an example, when a child likes to eat Cheese Extreme Quesadilla, the parent influences to buy

the product.

Personal

A buyer’s decisions also are influenced by personal characteristics such as the buyer

lifestyle and personality. Lifestyle is a customer pattern of living as expressed in their activities,

interests and opinion. Lifestyle captures something more than the customer social class or

personality. It profiles a customer whole pattern of acting and interacting in the world. As an

example, Cheese Extreme Quesadilla is the one of our product that has a lot of calories. If the

customers are changing to the healthier lifestyle, they may change the product choice to the

drive-thru diet menu.

Psychological

The motivated customers are ready to act. How they act is influenced by their own

perception of the situation. Perception is the process by which people select, organize and

interpret information to form a meaningful picture of the world. For the Cheese Extreme

Quesadilla, customers are influences to buy the product because in their perceptions, the

product is cheesy and delicious after they look at the product’s picture.

“Next, consumer makes the buying decisions by using the buyer decision process. Clearly,

the buying process starts long before actual purchase and continues long after. Taco Bell needs

to focus on the entire buying process rather than on just the purchase decision. Consumers

have to pass through all five stages with every purchase. But in more routine purchases,

consumers often skip or reverse some of these stages.”

http://tutor2u.net/business/marketing/

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Need recognition & Problem Awareness

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The buying process starts with need recognition. At this stage, the buyer recognizes a

problem or need or responds to a marketing stimulus. The need can be triggered by internal

stimuli when one of the customer’s normal needs such as they are hungry at that time. A need

also be triggered by external stimuli. For an example they pass our Taco Bell restaurant and are

attracted by the aroma and picture of our Cheese Extreme Quesadilla product. If the need is

strong and there is a product or service that meets the need close to hand, then a purchase

decision is likely to be made there and then. If not, then the process of information search

begins.

A customer can obtain information from several sources. These include personal sources,

commercial sources, public sources and experiential sources. The usefulness and influence of

these sources of information will vary by product and by customer. Research suggests that

customers value and respect personal sources more than commercial sources. So, Taco Bell

has to identify which information sources are most influential in our target markets.

In the evaluation stage, the customer must choose between the alternative brands, products

and services. The customer arrives at attitudes toward different brands through some evaluation

procedure. How customers go about evaluating purchase alternatives depends on the individual

consumer and the specific buying situation. Taco Bell has to study our customers to find out

how they actually evaluate brand alternatives. If we know what evaluative processes go on, we

can take steps to influence the buyer’s decisions.

Generally consumer’s purchase decision will be to buy the most preferred brand, but two

factors can come between the purchase intention and the purchase decision. The first factor is

the attitudes of others. If our customer is a child and his parent feels strongly that he should buy

Cheese Extreme Quesadilla, then the chances of him to buy another products will be reduced.

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Information Search

Evaluation of Alternatives

Purchase

Post-Purchase Evaluation

Marketing 22064Y

The second factor is unexpected situational factors. The child weight may be increase if he ate

Cheese Extreme Quesadilla often. Then preferences do not always result in actual purchase

choice.

The final stage is the post-purchase evaluation of the decision. It is common for customers

to experience concerns after making a purchase decision. The customer will be satisfied or

dissatisfied and will engage in postpurchase behavior of interest to Taco Bell. This arises from a

concept that is known as cognitive dissonance. The customer, having bought a product, may

feel that an alternative would have been preferable. In these circumstances that customer will

not repurchase immediately, but is likely to switch brands next time. Therefore, Taco Bell

company would be wise to measure customer satisfaction regularly

In my opinion, Cheese Extreme Quesadilla is a product choice in a buying response. It is

because, Cheese Extreme Quesadilla is the only product that mix four types of cheese, and

beef folded into a tortilla. The best part is, it is only RM4.52. Besides that, this Cheese Extreme

Quesadilla is one of soft tacos without the lettuce but it has extra cheese and extra side of

jalapeno sauce. This product also included a free X Games collector cup. The vice President of

national marketing in Taco Bell also admits that Cheese Extreme Quesadillas have been a

tremendous product for Taco Bell.

BUSINESS BUYER BEHAVIOR MODEL

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“Business buyer behavior is vaster and involves far more dollars and items than do

consumer markets. Business buyers are organizations that buy goods and services for use in

the production of other products and services that are sold, rented or supplied to others”

http://www.uky.edu/Classes/MKT/390/notes/06.doc

Marketing stimuli for business buyer behavior also consist

of 4P’s. Taco Bell needs to buy a chairs and seating for the

restaurant from Dejell (Dongguan) Furniture Co. Ltd. Taco

Bell choose Plymold 4 Person Cluster Restaurant Dining

chairs. This seating unit for 4 would make a nice addition to

any restaurant, bar, diner, concession stand, or other

foodservice establishment. The overall measurements are

44"W x 58"D x 36"H. The swivel seats are red plastic with a black metal frame and the table is

white with a red trim to complement the seats. They are connected by a durable black metal

frame which will enhance any existing decor. This unit has some cosmetic imperfections from

use including missing caps on the legs. This item weighs 113 lbs. but we have added 50 lbs. to

the weight for packing and shipping. The price of this item is RM1312.50 for each. This item is

available at Restaurant Equipment warehouse at Dongguan City, Guangdong Province, China.

So, Taco Bell have to import the Plymold 4 Person Cluster Restaurant Dining chairs from China.

Other stimuli include major forces and events in the buyer’s environment. Firstly is a

social factor. Social forces affect our attitudes, interest, population and opinions. These forces

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The environmentMarketing OtherStimuli Stimuli

Product PoliticalPrice EconomicPlace SocialPromotion Technological

The Buying Organization Buying response

Product or service choice

Supplier choice

Order quantities

Delivery term and time

Service term

The Buying Center

BuyingDecisionprocess

Marketing 22064Y

shape who we are as people, the way we behave and ultimately what we purchase. Besides,

population changes also have a direct impact on organizations. Because of population in

Malaysia is increase and majority one family have more than three members, so Taco Bell

choose Plymod 4 Person Cluster Restaurant Dining chairs.

In technology factor, Taco Bell has probably aware technological advances have greatly

changed the manner in which businesses operate. Malaysia technology infrastructure such as

the internet and other transportation runs very well. So, it is easier for us to import the product

from Dejell (Dongguan) Furniture Co. Ltd to bring it to Malaysia.

In the buyer organization box there have the decision-making unit of a buying organization is

called its buying center. The buying center includes all members of the organization who play a

role in the purchase decision process. This group includes the actual users of the product or

service, those who make the buying and those who control buying information.

Users

Members of the buying organization who will actually use the purchased product or

service. For the buying process of the chairs, Taco Bell acted as the users because we

purchase the chairs from Dejell (Dongguan) Furniture Co. Ltd.

Influencers

People in an organization’s buying center who affect the buying decision. They often

help define specifications and also provide information for evaluating alternatives.

Buyers

The person who have formal authority to select the supplier and arrange terms of

purchase. Buyers may help shape product specifications, but their major roles is in

selecting vendors and negotiating. Taco Bell’s CEO is the buyers for our company.

Deciders

People in the organization’s buying center who have formal or informal power to select

or approve the final suppliers. It is me as a marketing manager for Yum! Brand Inc who

have power to approve chair supplier for our restaurant.

Gatekeepers

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People in the organization’s buying center who control the flow of information to other.

The supervisor of our restaurant can be a gatekeeper because he have a knowledge

about the restaurant.

Business buyers are subject to many influences when they make their buying decisions.

There are four various groups of influences on business buyers that is environmental,

organization, interpersonal and individual.

Business buyers are influenced heavily by factors in the current and expected economic

environment as economic uncertainty rises, Taco Bell have to cut back on new investment and

attempt to reduce our inventories.

Organizational factor are affected by Taco Bell own objectives, policies, procedures,

structure and our systems, and Dejell (Dongguan) Furniture Co. Ltd. must understand these

factors well. They have to know how many people from our company are involved in the buying

decisions.

Interpersonal factors often difficult to assess. The powerful are often invisible, at least to

vendor representatives. However, Dejell (Dongguan) Furniture Co. Ltd. must try to understand

these factors and design strategies that take them into account.

Each participant in the buying decisions process brings in personal motives, perceptions

and preferences. These individual factors are affected by personal characteristic such as age,

income, education, personality and attitudes toward risk.

Next step is the business buying process. Buyers who face a new-task buying situation

usually go through all stages of the buying process. Buyers making modified or straight rebuy

may skip some of the stages.

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Stage 1: Problem recognition

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The buying process begins when someone in the company recognizes a problem.

Problem recognition can result from internal or external stimuli. Internally, the company may

decide to launch a new product that requires new production equipment and materials or a

machine may break down and need new parts. As example, our chairs at our restaurants are

break down so we need the new chairs and we purchase from Dejell (Dongguan) Furniture Co.

Ltd. Externally, the buyer may get some ideas at a trade show or receive a call from a

salesperson who offers a better product or a lower price. For example, Dejell (Dongguan)

Furniture Co. Ltd. always make a call to offers their better product or to inform about any

promotion of the product.

Having recognized a need, the buyer next prepares a general need description that

describes the characteristics and quantity of the needed item. The team may want to rank the

importance of reliability, durability, price and other attributes desired in the item. We have to

study about the product before we buy it from Dejell (Dongguan) Furniture Co. Ltd.

The buying organization next develops the item’s technical product specifications. The

team decides on the best product characteristics and specifies them accordingly. Taco Bell

asked a help from an engineering team about the value analysis. Taco Bell had to study

carefully to determine if they can be redesigned standardized or made by less costly method of

production before buy the chairs for the restaurant.

The buyer now conducts a supplier search to find the best vendors. The buyer can

compile a small list of qualified suppliers. Nowadays, more and more companies are turning to

the internet to find suppliers. Many companies are viewing supplier search more as supplier

development. These companies want to develop a system of supplier-partners that can help it

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Stage 2: General need description

Stage3: Product specification

Stage 4: Supplier search

Stage 5: Proposal solicitation

Stage 6: Supplier selection

Stage 7: Order-routine

Stage 8: Performance review

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bring more value to its customers. Taco Bell has to reviewing trade directories, doing computer

search or phoning other companies for recommendations.

In the proposal solicitation stage of the business buying process, the buyer invites

qualified suppliers to submit proposals. In response, some suppliers will send only a catalog or

a salesperson. When there have any complex, the buyer will usually require detailed written

proposals or formal presentations from each potential supplier. Taco Bell will ask Dejell

(Dongguan) Furniture Co. Ltd. to submit their proposal. If they just send their catalog or

salesperson, Taco Bell will require detailed written proposals or formal presentations from them.

During supplier selection, the buying center often will draw up a list of the desired

supplier attributes and their relative importance. Buyer may attempt to negotiate with preferred

suppliers for better prices and terms before making the final selections. At last, they may select

a single supplier or a few suppliers. Taco Bell has to listed the following attributes as most

important in influencing the relationship between supplier and our company. Then, we can

select the best supplier for our company.

The buyer now prepares an order-routine specification. It includes the final order with the

chosen supplier or suppliers and lists item. In the case of maintenance, repair and operating

items, buyers may use blanket contract rather than periodic purchase orders. A blanket contract

creates a long-term relationship between the supplier and the buyer. Taco Bell have to listed the

technical specifications of the chair needed, quantity needed, expected time of delivery, return

policies and warranties to Dejell (Dongguan) Furniture Co. Ltd. We also can use blanket

contract to create a long-term relationship with Dejell (Dongguan) Furniture Co. Ltd. In this

stage, the buyer reviews suppliers performance. The buyer may contact users and ask them to

rate their satisfaction. The performance review may lead the buyer to continue, modify or drop

the arrangement. Taco Bell will ask to their customer about the satisfaction using the chairs.

With this action Taco Bell know if they can continue to buy, modify the chairs or drop the

arrangement with Dejell (Dongguan) Furniture Co. Ltd.

In my opinion, Plymold 4 Person Cluster Restaurant Dining chairs is a product or service

choice. It is because, the chairs was made by plastic and metal, which both of materials are

durable. Besides, this unit has some cosmetic imperfections from use including missing caps on

the legs. In other hand, Dejell (Dongguan) Furniture Co. Ltd. also apply a good service in their

business. It is proven by the feedback from others company that are bought chairs from Dejell

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(Dongguan) Furniture Co. Ltd. Many of the company state that the item sold exactly as

described and displayed. It is a great deal and a good transaction. They also told that the chairs

are beautiful and very fast shipping. Other than that, they received item one day earlier than

what was estimated.

9. Marketing mixes (4Ps) for consumer market segment

“Marketing is an ongoing process of arrangement and executing of the marketing merge

(Product, Price, Place, Promotion) of products, services or thoughts to create exchange

between individuals and organizations. Marketing tends to be seen as a creative industry, which

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includes advertising, distribution and selling and also anxious with anticipating the client

prospect needs and wants, which are often discovered through market research.”

http://www.articlesrfree.com/

Product

Products are the goods and services offered by the company to the target market. Marketing

mix use in a variety of ways by the firms to pursue the customer to buy and use their products.

The variety of options that firm can adopt came out from only four variable product, price, place

and promotion. Some firms like to focus on their product so they will spend more on product

packaging, quality, design, features, brand name and service, to offer the high brand products

and services to the target market. Such as Mercedes Benz is an expensive car  but have its

own niche market people feel proud to buy and drive the car just because of the product is

completely differentiated from their competitors having numerous features.

Price

Price is the amount which is paid by the customer to buy the product and service. Price can also

attract customer towards firm products and services such as Southwest Airlines offer low price

services to their customers by offering normal service. It means they want to capture the target

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Target

PriceProduct

PromotionPlace

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market on cost differentiation not on product differentiation. The price variables encompassed

the following factors such list price, discount, allowances, payment period and credit terms.

Place

Place are the set of activities which allow the firm to spread the availability of the products and

services for the customers. Physical existence is not the only criteria of place but virtual firms

like amazon, eBay is also the part of third P (place). Wal-Mart with the huge number of retail

outlets around the world moves them to the number one company in the world.

Promotion

Promotion is the way of communication to the customer about firm’s products and services. The

other 3Ps (product, price and place) message is transferred via the 4th P (promotion), target

market feel happy to know about the new product and services offered to them. Price factor in

marketing mix encompassed the following factors channels, coverage, assortments, locations,

inventory, transportation and logistics

In my suggestion, Taco Bell can segment the Fresco Grilled Steak Soft Taco from Drive-

Thru Diet Menu in consumer market by geographic and psychographic variables.

GEOGRAPHIC

A company may decide to operate in one or a few geographical areas, or to operate in all

areas but pay attention to geographical differences in needs and wants. Taco Bell should

segment their market that where they can target people by develop Fresco Grilled Steak Soft

Taco from Drive-Thru Diet Menu for each of them to venture Malaysia’s market. Taco Bell target

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Geographic

World region or country

Country region

City or metro size

Climate

Density Urban

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to market our product at Kuala Lumpur because Kuala Lumpur is a densely populated city and

Penang because Penang has the highest population density in Malaysia.

For product, Fresco Grilled Steak Soft Taco is a warm, soft flour tortilla filled with authentic

carne asada steak, crisp, shredded lettuce, diced ripe tomatoes, and Fiesta Salsa. The Dietary

Guidelines for Malaysia recommend enjoying variety of foods, Fresco Grilled Steak Soft Taco

have variety of foods in one taco which is suitable for people in urban city who did not have

much time to choose many foods in one time. Dietary Guideline also recommends minimize fat

in food preparation and choose foods that are low in fat and cholesterol. Fresco Grilled Steak

Soft Taco has 4.5 grams of fat, 160 calories. So, it is suitable for an urban city to avoid many

people get sick and have to stay in hospital with a crowded people.

Urban is a place which is at town and main point in a state. So here, we can say that the

people in urban city have more time outside their home because of good view from the

development by government for that state. So, Taco Bell should place Fresco Grilled Steak Soft

Taco at Suria KLCC Kuala Lumpur, Times Square Plaza Kuala Lumpur, Gurney Plaza Penang,

Angsana Plaza Johor Bahru. We choose all this shopping mall as our connection to meet our

customer. These will easier the buyer at town to meet Fresco Grilled Steak Soft Taco.

I suggest to pricing Fresco Grilled Steak Soft Taco at urban density geography is RM7.50. It

is a reasonable price to meet the customer and make them satisfied with the product that is

come with that price. Furthermore, it is not a big deal for people how live in big city to buy

Fresco Grilled Steak Soft Taco with that price because it is a common for them to live in a high

cost of living.

For promotion, Taco Bell needs to know that the people in urban always alert with the

development change in their town. The most suitable medium to promote is billboard because in

my observation at Kuala Lumpur there are so many billboards exist around the city. It can be

found in many kind of billboard such as an electronic billboard. So, we can promote Fresco

Grilled Steak Soft Taco through the billboard. Besides that, at Kuala Lumpur also, we can

advertise Fresco Grilled Steak Soft Taco on the body of Light Rail Transit(LRT). This is one of

way to attract people in urban to buy our diet product.

PSYCHOGRAPHIC

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Social class

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People in the same demographic group can have very different psychographic makeup.

Marketers often segment their markets by consumer lifestyle. Taco Bell also segment our

markets depends on consumer lifestyle to venture Malaysia’s market. We serve The Drive-Thru

Diet Menu for those consumers who were in dietary lifestyle.

For product, we already know Fresco Grilled Steak Soft Taco is one of our diet menus.

Fresco Grilled Steak Soft Taco has 4.5 grams of fat, 160 calories and it is a healthy food that is

really suitable for those who are in diet because they really concern about the nutrition inside

each of food they are eat. They choose foods that are low in fat and cholesterol. So, Fresco

Grilled Steak Soft Taco is the best product for them to keep their good healthy living.

For place, Taco Bell should target on big city like Kuala Lumpur and Penang. It is because

many of people who stay in that city very concern about their image and personality. They want

to look adorable, fresh and healthy because they live in a modern living and they has a carrier

that needs them to look smart.

I suggest the same rate of price that is RM7.50 because it is a reasonable price for the

Fresco Grilled Steak Soft Taco that is included with a healthy food and reduce fats and calories.

Besides, people who were on diet do not care about the price of product as long as they still can

keep on their diet and look healthy. So, they can pay the price for Fresco Grilled Steak Soft

Taco to satisfy their own need. They are also affordable to buy because majority a person who

concern about their image is a carrier person.

To promote our Diet menu product, I suggest appointing an ambassador for Fresco Grilled

Steak Soft Taco product. We can select a person in a celebrities circle or anybody who lose

their weight after eat Fresco Grilled Steak Soft Taco.

10. Criteria before market products to organization and individual customers

BUSINESS MARKET PUBLIC MARKET

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Psycographic

Personality

Lifestyle

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Multi-step buying process, longer sales cycleSingle step buying process, shorter sales cycle

Brand identity created on personal relationshipBrand identity created through repetition and imagery

Rational buying decision based on business value

Emotional buying decision based on status, desire, or price

No direct communication Direct communication occur

Customer service for the first customer Customer service build customer loyalty

Small, focused target market Large target market

http://vista-consulting.com/

Firstly, is about the buying process. B2B market needs a multi-step of buying process. The steps in the process are supplier application then further with preliminary examination. For example, Perusahaan Saudi Sdn Bhd needs to apply this multi-step buying process before supply their product to Yum! Brand Inc. But in B2C market there only a single step buying process occurs. Our customer comes to our restaurant and buy our product depend on their needs and wants. It is just a shorter sales cycle.

Secondly, in a B2B market brand identity created on personal relationship. It is because Yum! Brand Inc no needs to inform everybody that we select our supplier. We just have to build a strong relationship with our supplier in a personal way. Different with B2C market. Brand identity created through repetition and imagery. When the customers keep buying our product because of their satisfaction, they will repeat come to our restaurant. The situation shows that brand identity was created through repetition.

Thirdly, is about buying decision. In B2B market was made by rational buying decisions based on business value. For example, Yum! Brand Inc identifies the whole information about the supplier company before make a decision to buy. However, in B2C market buying decision was made by emotional buying decision based on status, desire or price. For example, our customer want to buy our product based on their need and wants without have to do a detail research about our product. They just want to know the price of the product.

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Fourth, comparison about direct communication. Direct communication cannot occur in B2B market. It is because majority of the buying selling process just on a paper. For example, supplier needs to send their application to Yum! Brand on the paper and we has to list an order also on the paper. But in B2C market, direct communication should be occurs in a buying selling process. It is good because any information can be directly told to our customer.

Fifth, all buyers are interested in quality customer service. B2B customer service comes into play prior to ever making that first sale and begins with a customer’s very first contact with that supplier, whether we call them or they call us. In B2C market, Yum! Brand customer service helps build customer loyalty where customers will be willing to pay a slightly higher price to know that they can return the product easily and can trust the source they are dealing with.

Sixth, is about specification of target market. B2B market just have a small scope of their

target market. For example, the food supplier just can target on the company that run a food

business. But in B2C market, it has bigger target market. For example, Yum! Brand can target

anybody to buy our product with satisfy their needs and wants.

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11. International marketing vs domestic marketing

“International marketing is simply the application of marketing principles to more than one

country. However, there is a crossover between what is commonly expressed as international

marketing and global marketing, which is a similar term. For the purposes of this lesson on

international marketing and those that follow it, international marketing and global marketing are

interchangeable”

http://www.marketingteacher.com/

“Domestic marketing means that the company has to market its products within the national

jurisdiction of the country without considering the effects of global competition. The product

might face global competition but marketing campaigns are targeted to the local consumer

segments. Product development and competition from the outside competitors are not

considered and sole stress is put on the local competition and local customer segments. The

disadvantage of domestic marketing could be the ignorance of global market competition which

might snatch their market share in the local market in the future.”

http://www.blurtit.com/

DOMESTIC MARKET INTERNATIONAL MARKET

Transportation cost is low, no import or duty taxes

Transportation cost is more higher which includes insurance and shipping

Easily to joint partnership Difficult to joint partnership

No barriers in social or culture aspects Great difference in sociocultural aspect

Basically less time needed to market the product

More time needed for product to reach the final consumer

Rules and regulation are understandable and easy to oblige

Totally different set of rules and regulation oblige

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In my understanding, firstly is about the transportation cost for Malaysia’s Taco Bell

higher which includes insurance and shipping rather than United State Taco Bell that only

facing low cost of transportation. For example, if there are certain materials that needed

from Taco Bell United State, there will be high cost of transportation needed to make the

thing delivered to Malaysia. Import duty will be leviable on the goods imported into Malaysia.

The rate of import duty varies according to the type of goods imported.

Secondly, both markets can joint partnership with a local firm but there is a bit different

between both markets. United State Taco Bell can easily build partnership with NBA because

they from the same country. But for Malaysia Taco Bell, it is difficult to convince Milo to be a

partnership because both organizations have to do a research about each other company.

Malaysia Taco Bell tries to find a firm that has already established credibility.

Thirdly, the different on socialculture also can be clearly showed. There are no barriers

to United State Taco Bell in social or culture aspect. It is because the socialculture surround the

organization is the common thing for them. But for Malaysia Taco Bell, there are a great

different in socialculture aspect. We have to identify each of the socialculture aspect in

Malaysia. For example Islam was very sensitive on halal issue. Taco Bell has takes it seriously

by avoiding to product non-halal food based on Trade Description Act 1972, to standardize halal

certification. For the Hindu, they cannot eat meat.

Forth, is about the rules and regulation of the state. United State Taco Bell can easily

oblige and understand the rules and regulation because the company already alert with the

rules and regulation in the state. While, in Malaysia it is totally different set of rules and

regulation oblige. This is because of rule and regulation that had been made by government on

that country must be followed. As an example, all food manufactures in Malaysia have to follow

Malaysian Food Act 1983(Act 281) & regulations to produce the food

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Fifth, we can identify the speed for both markets reach their target market. Basically less

time needed to market the product for the United State Taco Bell. It is because resident who

stay in the country familiar with Taco Bell. It is not like Malaysia Taco Bell, more time needed for

product to reach the final consumer. We need to do a promotion to give an information about

our product to customer so that they will buy it. For example, when Taco Bell would like to

launched a new product at both international and domestic market. It is easier for domestic

market to reach the customer, but it is difficult to international market to reach because the

resident in Malaysia do not really familiar with Taco Bell yet.

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CONCLUSION AND RECOMMENDATION

To start a business, Taco Bell should understand the meaning of marketing itself. As a global and wide international business, me as a marketing manager of Yum! Brand should able to know what marketing concept, marketing oriented and its characteristics and apply it in the Taco Bell business. Besides, Yum! Brand has to identify every cost and benefit when applying marketing approach.

Taco Bell should identify the target market and the factors that affect the company before entering the market. According to the report, I can conclude that marketing is functional for business organization in order to compete with other organization. Taco Bell can venture the Malaysian market and can become one of the major companies in Malaysia market if they are well studied about Malaysia environment by identifying 4Ps and the PEST analysis.

As a marketing manager, I hope Taco Bell is enthusiastically to enter Malaysia market. Taco Bell can enter the market by fulfill the criteria and follow the guideline, rules and regulation in Malaysia. Therefore, I have made some suggestion to Taco Bell: Create variety of product, dare to take a risk to try something new and prepare a feedback and suggestion form for customer to express their feeling. Know the parts of the marketing pieces and who the buyers that will buy with Taco Bell are.

The main thing is, Swatch must segment their market and select the target market to get the best answer for who they want to see their product. This shown that Taco Bell must consider that the obstacle that will be facing by them if they venture in Malaysian market. Taco Bell also needs to know why marketing is very important to target the market and get into the market.

LAILI FARHANA BT NORDIN

Marketing Manager

Yum! Brand Inc

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AMSTRONG G, KOTLER P MARKETING 6TH E (An Introduction) PUBLISHED BY PRENTICE HALL (PEARSON EDUCATION INTERNATIONAL)

KOTLER P, AMSTRONG G, ANG S H, TSE D K, TAN C T, PRINCIPLES OF MARKETING (AN ASIAN PERSPECTIVE)PUBLISHED BY PRENTICE HALL

PERREAULT W D JR, MCCARTHY J ESSENTIAL OF MARKETING PUBLISHED BY MCGRAW-HILL IRWIN COMPANIES

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http://www.marketingteacher.com/Lessonstore.htm

http://www.websitemarketingplan.com

www.brainmates.com.

http://www.blurtit.com/

http://www.uky.edu/Classes/MKT/390/notes/06.doc

http://tutor2u.net/business/marketing/

http://vista-consulting.com/

http://www.articlesrfree.com/

www.learnmarketing.net

http://www.ehow.com/

http://wiki.answers.com/Q/

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Fresco Grilled Steak Soft Taco The Tick (toy for Kids Meal)

Cheese Extreme & Beef Quesadilla Plymold 4 Person Cluster Restaurant Dining chairs

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