Question1
McDonald's Company is one of the largest food chain globally known for its production of delicious fast food. Originally, McDonald's was a barbeque restaurant but has then expanded its line of product and opened over 35,000 outlets globally. For instance, McDonald has introduced salad line that serves a mixture of iceberg lettuce and cherry tomatoes. In addition, McDonald restaurant launched a premium line that consists of large chicken sandwiches and coffee products. Even though McDonald's is at the forefront in delivering quality fast foods, it can expand its product line to increase total revenue. For instance, the management can consider introducing a new line of catering services. In this case, it can deliver food to several corporate events. Instead of focusing on fast food products only, McDonalds can extend its product offering by delivering food for breakfast and lunch for corporate events.
McDonalds established a corporate social responsibility program of delivering healthy foods. It has faced many criticisms of delivering unhealthy products that add cholesterol to people. For this reason, the introduction of catering services into their product line will match their product mix of delivering healthy food. The introduction of this catering service will be helpful to the company since more people will have a taste of their new product line and for this reason, more customers will be attracted to the company. More people will want to eat the healthy food in different outlets. The result of more customers is an increase in market share as well as total revenue.
Question 2
Innovation refers to the process of improving processes, ideas and products that a company has. In this case, companies can generate new ideas for improving products or even implementing effective strategies to improve operations within the company. Incremental innovation is a situation in which a company improves technology that is recently using to a more advanced one. In other words, a company is transforming existing knowledge and resources. On the other hand, radical innovation is a situation in which a company considers old technology or resources as obsolete and opts to use new knowledge and resources. Both types of innovation techniques can be considered good for companies. However, the most preferred is incremental technology.
One reason for choosing incremental innovation is that incremental innovation is a cost saving technique. A company may opt to buy new laptops for the purpose of wireless Internet. In this case, the management can use the old computers and improve their technology by installing cables for the internet that can be used in the old computers. For this reason, there will be an improvement in technology as well as saving expenses. Secondly, incremental innovation has reduced risk in terms of product innovation. Incremental innovation requires gaining additional knowledge from what was customers already know. For instance, when Toyota Company introduces an advanced model of Toyota Prius, it only needs to advertise the advanced features of the new model. However, radical innovation means that Toyota Company introduces totally new features that customers may not prefer, for this reason, Toyota Company will undergo a loss due to production if new models.
Response
This is quite a good post as it has explained clearly the advantages of using continuous innovation. I agree that continuous is better for companies as it is less risky. A company is more likely to experience losses when using radical innovation as the production of new products may defer with customers preferences. For this reason, there will be a drop in sales. In addition, I agree that continuous innovation is cost saving, as companies need to educate people on the advanced feature in the introduced products. On the other hand, radical innovation that needs learning from scratch and customers may find it hard to understand.
Please note that the answers should be in your own words; all submissions will be subject to plagiarism checks. Remember to answer all parts of each question and use formal language and marketing terms. You will not need any external sources since the topics are nothing new and were covered during the course and available in the slides and the book.
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Answer the following questions in approximately 250-300 words each.
• These topics have been covered during the course; no external references are required.
• Please use formal language in your responses and check for grammar/typos
• Submit the final document as a MS Word attachment at the drop box link on D2L. 1.
1)Select a service of your choice (a hotel, restaurant, or airline brand) and discuss how the Four I's of services apply to this service. What are some properties (of this service) that a typical consumer of this service may evaluate (in the context of the consumer purchase process)? Classify these properties as search, experience, or credence.
2.For the new product idea you came up with (you also discussed the marketing planning process for this product in the mid-term), assume you are in charge of evaluating, then choosing the appropriate promotional mix. What are the advantages and disadvantages of using each of the several alternatives available for promotion in the case of this product? Explain what the final promotional mix would/should look like and the rationale for your choices.
• Note: Your answer should be an explanation of decisions you would make for this specific product, not and general advantages/disadvantages discussion. If you have already used this product in the weekly discussion for the last couple of weeks, please use another product idea, and contact me if you need any clarification.