How Does McDonald Promotions and Advertising Affect Their Sales - Research Proposal Example

? Research proposal: How Does McDonald Promotions and advertising affect their sales Table of Contents Research proposal: How Does McDonald Promotions and advertising affect their sales 1 Table of Contents 2 Introduction 3 Introduction Marketing can be understood as a phenomena implemented by business firms with the purpose of communicating customers regarding products and services. Theory of marketing states that it is necessary for the companies to position their products and services in the market place in accordance with the customer needs and preferences in order to gain foothold and presence. The theory also emphasise that marketing is used as a tool, medium or platform by business firms to create public image and brand (Holmes 2005). Research context A clear definition and formulation of research context is necessary as it helps in organising research efforts and ensures optimum utilisation of research process. In other words, research context lays down physical setting and environment in which research study will be undertaken. At many instances, research context is also termed and understood in terms of ‘experimental conditions’ or ‘study environment’. The underlying research study will be located and conducted in the context of national business. It is due to reason that McDonald’s is a national business as compared to regional or local business firm. In addition, underlying research study will pursue and operate in a hypothetical study environment or research context. The hypothetical study environment will be utilised to assess, determine, and prove whether advertisement and promotions affect the sales of McDonald’s or not. The assessment of the impact will help in identifying whether formulated hypothesis is profound and acceptable in the present business setting or it is no longer valid and profound in today’s business world (Simchi-levi & Kaminsky 2003). Purpose and significance of the study The selected research topic i.e., how does advertising and promotions affect McDonald’s sales figure will investigate and throws light on various aspects of marketing and their role in stimulating sales figures of the concerned company. The tools of marketing i.e., advertising and sales promotion have been used intensively by the business firms. The research study will throw light on the role that marketing and its tool can play in enhancing business position and sales potentialities (Mckenzie-Mohr 2000). The significance of research study is evident from both academic and commercial perspective. From academic perspective, the underlying research will facilitate the path of understanding implications and role of marketing. On the other hand, business firms will gain deep insight, understanding and encouragement for implementing marketing in their business philosophies with the help of present research study. Literature review Literature review makes use of secondary sources like books, magazines, journals, research papers and many more to search, gather, test, and evaluate crucial findings and results. This practice of investigating and exploring topic helps in solving research problem and outlining new findings and results. Marketing mix Ruddick (2012) throws light on the marketing mix in order to ascertain impact of promotion and advertising on McDonald’s sales. The author explains that marketing mix contain four elements viz., product, price, place and promotion. All the components of marketing mix are strive towards improving market positioning and profitability of company. Among the four components, promotion play more significant role as it create direct impact on the customers attitudes and perception. It has been identified that companies paying more attention towards sales promotion and advertising are more likely to emerge as a favourite brand and purchase choice among customers. In this regard, sales promotion and advertising are the most commonly used promotional tools. McDonald’s makes frequent and regular use of these promotional tools in order to gain favourable customer response. The regular use of these two tools is also evident that sales figure of the McDonald’s has shown growth of about 6.7% in 2012 as compared to previous year on account of sound and effective sales promotion themes and advertising (Ruddick 2012). BCG (Boston Consulting Group) According to Vorhies & Morgan (2005), BCG matrix developed by Boston Consulting Group has also outlined the role and impact of advertising and sales promotions on McDonald’s sales. The matrix measures firm’s growth rate on account of attractiveness of various factors. Cash Cows, dogs, stars and question mark are the four dimension and segments of BCG matrix on which firm’s growth and market share is assessed. Among the four dimensions, stars represent the most favourable position yielding firm high growth rate and market share. Business firms having strong foothold and presence in the market place enjoys high growth and market share. McDonald’s in one such firm recording significantly high growth and market share in the fast food industry. The growth and market share is measured in terms of sales, revenue, return, and profits figures. The high sales lead to higher growth rate and vice versa (Vorhies & Morgan 2005). Sales figure is not independent phenomena as it is interplayed, regulated and governed by various variables. Marketing and its associated variables like sales promotion and advertising influence sales potential of a company significantly. According to BCG matrix, market share and growth rate influences considerably by the sales and earnings figure of a company which is further determined by advertising and sales promotion (Birgelen, Jong & Ruyter 2006). Marketing theory AIDA (attention, interest, desire and action) is the renowned marketing theory used prominently in the field of marketing according to Arikan (2011). The theory suggests that role and affect of marketing starts evidencing and appearing from the first phase i.e., attention. Customer attention is the first phase or step of marketing and business firms are allocating adequate resources in capturing customer attention. After that, interests and desires are developed among customers regarding the products and services. The positive development of interest and desires results in purchase action. Advertising and sales promotion strategies of McDonald’s facilitate this task of customer attention, interest, desire, and action successfully (Arikan 2011). Methodology Methodology serves the axis point around which entire research study revolves. This is so because research methodology plays significant role in attaining research aims and objectives. The base and framework needed for solving research problem and attaining objectives is provided by methodology section. Research paradigm, approach, methods and data analysis approaches are the some of the crucial segment of research methodology. A detailed discussion of all these segments has been provided under the individual headings. Research paradigm This section of methodology sets the initial direction and guidance regarding the manner on how to proceed and continue on the study. The two most commonly used research paradigms are positivist and interpretative. Difference exists in terms of approach and philosophy used for proceeding on the study. For instance, research study aims to establish relationship among two or more variables uses positivist approach. On the other hand, research study guided towards exploring, analyzing, and investigating factors and variables to solve the research problem uses interpretative research paradigm (Marczyk, DeMatteo & Festinger 2005). Among the two paradigms, the underlying research study will make use of positivist paradigms. It is evident that the research study will establish relationship between the marketing and sales of McDonald’s. The relationship will be established in terms of role, importance and impact that the marketing tool i.e., advertising and sales promotion has on the sales of McDonald’s. The ascertainment of relationship will help in deriving meaningful conclusions and results. Research design and approach Research design and approach lays down the direction for selecting research methods in order to collect pertinent data and information. It is worth mentioning that collecting meaningful data and information is necessary for proving research objectives and aims. And, the direction for selecting set of data collection methods is provided by research design and approach. Exploratory and descriptive are the two kinds of research design employed frequently in research studies. The exploratory research design seems more suitable for present research study. The selected research design will explore and investigate the role and affect of sales promotion and advertising in enhancing sales figures. This exploration and investigation is necessary to prove the hypothesis that marketing through sales promotion and advertising can play significant role and impact in improving sales figures (Johnson & Duberley 2000). Likewise, inductive and deductive are the two major research approaches. Inductive research approach gathers specific information and arrives at general conclusions and results. In comparison to it, deductive research approach makes use of general information in order to derive and conclude some specific results. Deductive research approach suits with the nature and purpose of underlying research study as it will gather general information related to the impact of marketing on sale and profitability position. Such information will then be utilised further to ascertain the implication of marketing in context of McDonald’s. Research methods This accounts most significant section of research study as it is directed towards actual collection of facts and information. Facts and information related to research study is extremely important in order to solve research issue and arriving at specific results. Data and information can be collected through primary and secondary research methods. Primary research methods gather first hand and original information about the research topic while secondary data collection methods make use of already collected information gathered by someone else (Saunders, Lewis & Thornhill 2003). The present research study will make use of secondary research study as affect of advertising and sales promotion on McDonald’s sales can be identified through annual reports, profit figures, market research reports, and so on. All such secondary information sources are utilised for deriving results and solving research issue. The underlying research study will not make use of primary research methods as it does not suit with the nature and purpose of study. The nature of research study deals with internal environment of the company and therefore it would not be justifiable to select specified number of sample or respondents and analyse their responses (Jackson 2008). Ethical considerations Every aspect of research study is being conducted in accordance with the ethical guidelines and framework. This is so because conduction of research study in accordance with ethical principles and guidelines improves the trust, reliability and validity of research results. Likewise, underlying research study will also give due consideration and adhere with the ethical principles and norms in the entire research process. The ethical considerations like privacy, confidentiality, trust, consent, etc of the respondents do not seem profound in the underlying research study as it will utilise only secondary data and information (Marrelli 2005). The secondary data and information has already been collected by some other researchers and therefore it is pertinent on the part of researcher to maintain consistency and reliability of such data. In other words, secondary information or data will not be manipulated or destroyed in any manner for the fulfilment of research objectives and aims. This is so because manipulation of such gathered data will put a threat on its reliability and trustworthiness. In addition, it will also be ensured that such secondary data sources are selected with deliberate conscious and efforts. It means authenticity and reliability of secondary sources will be tested and evaluated before utilising them for the research purpose (Verhoef & Lemon 2009). Limitations Limitations are also indispensable part of research take place in each kind and nature of research work. Likewise, present research study also suffers from some kind of limitations like lack of primary information and limited availability of time. It has been identified that research area and scope is quite wide and therefore requires adequate time to investigate and explore research topic thoroughly. However, limited time availability poses a threat on study and concluded outcomes and results. In addition, lack of primary information prevents the chances of ascertaining customer responses, opinions, and views regarding marketing and its tools. Conclusion It can be said that advertising and sales promotions affect sales of McDonald’s significantly. The overall framework of the research study will be guided in accordance with this research context. The dimension of marketing is quite wide and having wide and long term impact on business firms. Business firms in current century have realised the significance of marketing for gaining foothold in the market place and to strengthen their sales and revenue figures. In all, sales promotion and advertising act as a means of enhancing and improving sales figures and ratios. References Arikan, A. 2011. Mutichannel Marketing: Metrics and Methods for On and Offline Success. John Wiley and Sons. Birgelen, M.V., Jong, A.D. & Ruyter, K.D. 2006. Multi-channel service retailing : The effects of channel performance satisfaction on behavioral intentions. Journal of retailing, 82(4), pp. 367-377. Holmes, D. 2005. Communication theory: media, technology and society. SAGE. Jackson, S.L. 2008. Research Methods: A Modular Approach. Cengage Learning. Johnson, P. & Duberley, J. 2000. Understanding Management Research: An Introduction to Epistemology. London: SAGE. Marczyk, G.R., DeMatteo, D. & Festinger, D. 2005. Essentials of Research Design and Methodology. USA: John Wiley and Sons. Marrelli, A.F. 2005. The Performance Technologist’s Toolbox: Literature Reviews. Performance Improvement 44(7), pp. 40-44. Mckenzie-Mohr, D. 2000. Promoting sustainable behavior : an Introduction to community-based social marketing. Journal of social issues, 56(3), pp. 543-554. Ruddick, G. 2012. McDonald's sales surge in the UK. [online]. Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9621705/McDonalds-sales-surge-in-the-UK.html [accessed on: 27 February 2013]. Saunders, M., Lewis, P. & Thornhill, A. 2003. Research Methods for Business Students. 3rd ed. Prentice Hall. Simchi-levi, D. & Kaminsky, P. 2003. Designing and managing supply chain: concepts, strategies and case studies. McGraw-hill Professional. Verhoef, P.C. & Lemon, K.N. 2009. Customer Experience Creation : Determinants, Dynamics, and Management Strategies. Journal of Retailing, 85(1), pp. 31-41. Vorhies, D.W. & Morgan, N.A. 2005. Benchmarking Marketing Capabilities for Sustainable competitive advantage. Journal of marketing, 69, pp. 80-94. Read More