Question 2 Essay

b) Analyse the importance of using a mix of promotional strategies in the marketing of
goods and services. Make reference to a range of case studies within your response
Introduction
Promotional Strategies are vital in the marketing of goods or services, a mixture of
promotional strategies intend in communicating messages to the target market about their
products, whilst generating interest and making the product widely recognized. The
importance of promotional strategies is widely evident in corporations such as McDonalds,
Zara And Apple.
Apple - Advertising
Advertising is a pivotal component of the marketing mix, benefiting businesses across the
spectrum from SME’s to Transnational corporations through marketing their goods and
services, attracting and persuading customers to purchase their products.
It refers to conveying a message to the broader group, spreading brand awareness,
expanding customer bases, and ultimately generating revenue.
A notable exemplar of advertising strategy is evident in Apple's turnover under Steve Jobs'
strategic vision in 2011. Jobs adopted the "Keep it Simple" approach, removing complex
information in Apple's advertisements, in order for consumers go contemplate its product.
This strategy, coupled with compelling slogans like "Think Different," and “1000 songs in
your pocket” played a pivotal role in reshaping Apple's brand identity.
The result was a staggering $19.6 billion in revenue generated from advertising services and
estimated to reach $30 Billion by 2026. Jobs focused on conveying how Apple products
elevate the quality of life, marking a departure from intricate technical details.
However, this simplicity has its drawbacks, with consumers potentially overlooking intricate
features, bugs, and software nuances. Consequently, Apple invests a portion of its profits in
support services, such as the Apple Genius Bar, to address consumer inquiries.
Despite this limitation, Apple's utilization of advertising through digital platforms has
undeniably enhanced individuals' lives, facilitating easier access to the internet and music,
and producing a positive cash flow for the incorporation.
McDonalds – Relationship Marketing

Relationship marketing is an important strategy for businesses to provide services,
emphasizing long-term customer retention over immediate sales.
Relationship marketing refers to building strong connections with customers through
benefits like discounts and rewards. This approach prioritizes brand loyalty, high satisfaction
levels, and a pleasant service, encouraging repeat business. Relationship marketing is
evident in McDonalds, through its loyalty programs, initially using cardboard cards and now
the My Maccas app. Through primary data collection, McDonald's provide discounts and
benefits on products that are in demand through rewards and points. McDonald's CEO,
Chris Kempczinksi, highlighted the My Maccas app's success, with over 40 million downloads
in the US in 2022. Mymacca’s focus on relationship marketing, caused customer retention
through loyalty programs. By the end of Q4, McDonald's had around 50 million active loyalty
users in their top 6 markets. However, McDonald's relationship marketing, faced challenges
due to external factors like the Ukraine-Russia War and earlier impacts from Covid-19 in
2020. Temporary closures and political conflicts led to an 11% revenue decline in Russia and
Ukraine, while Covid-19 contributed to an 8.9% drop in McDonalds sales. Despite this,
McDonald's successful relationship marketing, exemplified through the My Maccas app,
results in 50 million satisfied users. This strategy ensures efficient service, and the
importance of relationship marketing for Goods and services.
Zara – The Communication Process

Communication is the most important aim of any promotional campaign when marketing
goods or services. The communication process spreads product information to potential
customers. Market research helps businesses develop strategies for their target audience.
Zara, relying on word-of-mouth marketing, leverages individual perceptions to influence
potential customers and build its reputation. Zara's highly effective word-of-mouth
marketing minimizes traditional advertising costs, relying on customers to spread the brand
through physical interaction and social media. This strategy is successful, as it creates a
strong brand image and a loyal customer base for the trendy, affordable clothing line. Zara's
2022 revenue reached €27.8 billion, with a net income of €3.8 billion. Notably, it achieved a
20% return on equity and a 12% return on assets. Zara’s positive word of mouth acted as
valuable and important form of promotion for their goods and services. However, Zara has
spent zero on advertisements and endorsement policies, this led them to be in danger
during the Covid-19 crisis, e-commerce was an option for Zara however word of mouth was
non-existent due to individuals being quarantined. Their sales fell by 44% in the first quarter
of 2020 and a net loss of USD$482 million. Despite this, Zara has effectively utilized the
communication process strategy. Which in effect, caused them to have a consistent positive
cash flow prior to covid-19 and after Covid 19, whilst act as an important tool in marketing
their goods and services
Conclusion
In conclusion, it is important for a business to implement a mix of their Promotional
strategies when marketing their good or service. McDonalds, Apple, and Zara have
successfully implemented Relationship marketing, Advertisement and communication
within their business environment. Allowing them to generate interest in their goods and
services while becoming recognized worldwide.

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b) Analyse the importance of using a mix of promotional strategies in the marketing of

McDonalds – Relationship Marketing

Zara – The Communication Process

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