Concept & Process Of Marketing | McDonald's Report

Added on -2020-02-14

| 24 pages| 7633 words| 50 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 6 of 24 pages

MARKETINGPRINCIPLES
TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31.1 Various elements of the marketing process...........................................................................31.2 Benefits and costs of a marketing orientation........................................................................4Task 2...............................................................................................................................................52.1 Micro and macro environmental factors influencing marketing decisions............................52.2 Segmentation criteria.............................................................................................................82.3 Targeting Strategy..................................................................................................................82.4 Buyer's behaviour in different buying situations...................................................................92.5 Positioning strategy..............................................................................................................10Task 3.............................................................................................................................................103.1 Development of product/services to sustain competitive advantage...................................103.2 Distribution strategies..........................................................................................................103.3 Pricing strategies..................................................................................................................113.4 Promotional activity.............................................................................................................113.5 Extended marketing mix......................................................................................................11Task 4.............................................................................................................................................124.1 Marketing mixes for two different segments.......................................................................124.2 Differences between business buyers and consumer buyers...............................................134.3 Differences in international marketing and domestic marketing.........................................15Conclusion.....................................................................................................................................16References......................................................................................................................................172
ILLUSTRATION INDEXIllustration 1: SWOT Analysis.........................................................................................................8INDEX OF TABLESTable 1: Cost-Benefit Analysis........................................................................................................5Table 2: PESTLE Analysis..............................................................................................................6Table 3: SWOT Analysis.................................................................................................................8Table 4: Different Buying Situation..............................................................................................10Table 5: Marketing mixes for two different segments...................................................................13Table 6: B2B v/s B2C....................................................................................................................14Table 7: International Market v/s Domestic Market......................................................................163
INTRODUCTIONMarketing principles can be referred to as the ideas which form the basis for productpromotion strategies. Most of the business organization uses a variety of marketing principles forthe purpose of optimizing the market performance of existing product in order to successfullylaunch this product into a new market (Aaker, 2011). It is vital for the company to adopt variousmarketing principles. This present report describes the marketing principles of McDonald's.Further, this report also describes the concept and process of marketing in the context ofMcDonald's and also the concept of segmentation, targeting and positioning. Moreover,discussion has been made on the extended marketing mix of McDonald's and also the usage ofmarketing mix in different context of McDonald's.TASK 11.1 Various elements of the marketing processMarketing process basically means the process which is followed by firms in order todiscover unfulfilled customer needs and bring product in the market which satisfies those needsof the customers. Marketing process is also followed by McDonald's in order to identify andsatisfy the needs of customers in an effective manner (Ferdous and Hossain, 2011). There arerange of elements involved in the marketing process of McDonald's which are enumerated asfollows:1.Situation Analysis: Firm do thorough analysis of the situation and find opportunitiesand threats available for the success of McDonald's. With the use of scanning tools suchas SWOT, PESTLE and value chain analysis, McDonald's assesses the whole businessenvironment in order to identify the favorable and unfavorable elements prevailing in theinternal and external environment (Michman, 2006).2.Marketing Strategy: After analyzing best opportunity which will satisfy the customer'sneed, McDonald's moves ahead in forming strategy which can be applied upon the targetmarket. It is done in order to attract customers towards the brand for satisfying theirneeds. These strategies involve segmentation, targeting and positioning activities.3.Marketing Mix Decisions: Product, price, distribution and promotional decisions will bemade at this level and McDonald's will decide that which product needs to be introduced4
and in which market, it will be launched, pricing strategy to be used and along with that,location decisions will also be taken (Rangaswamy, 2013).4.Implementation and Control: At this stage, company will implement all the decisionsthat have made at earlier stage. Thus, after implementation of all the decisions,McDonald's will assess its impact on the organizational working and on its employees.Further, marketing manager will also put a control measure over the variations andnegative consequence which is identified during or after the implementation (Widmier,2007).1.2 Benefits and costs of a marketing orientationThere are basically four types of orientation which are adopted by organization in orderto sell their products effectively. In the contemporary world, marketing orientation is widelyused by the companies in order to survive in this competitive market. Marketing orientation canbe described as a business model which is focused to deliver e products as per the needs, desiresand requirements of customers. It has been adopted by McDonald's so that it can provide foodproducts according to the needs and preferences of customers (Melewar and Alwi, 2012). Bydoing this, company gains many benefits. On the other side, firm has also to pay cost for it. Various stages of marketing orientation are mentioned below as: Product orientation- Product orientation can be termed as the process in whichorganizations completely ignore the need and demand of people in market (Michman,2006). Further the products are developed only with the a prime objective ofmaintaining its quality. Organizations that has adopted this process believes that if theywill be easily able to gain attention of customers by providing them best qualityproducts. The main focus of an product oriented company is to enhance the overallquality of its products and services. Production orientation- It is an kind of approach that focuses on the production andmanufacturing process of an organization. Further businesses with such kind ofapproach always seeks for enhancing efficiency of their processes and operations. Oneof the key focus of business is on process of production rather than on determined whatto produce (Ferdous and Hossain, 2011). Some of the important characteristic of this5
approach includes narrow product lines, packaging that focus on protecting the productand production cost that its completely based on pricing. Sales orientation- This is a kind of approach which focuses on promoting and increasingsales of an organization irrespective of what it manufactures or supplies. As per thisconcept companies believes that more and more customers can be attracted if anaggressive sales techniques is used. Effective promotion and strategies that are focusedon price are some of the essential elements of sales orientation approach.Marketing orientation- It is an approach that focuses on meeting need and demand of allcustomers in a particular market. In addition to this, needs of customers are kept onpriority and all products are developed according to the same. Market research isconsidered as one of the most important aspects of this approach. Other than this, it canbe also stated that the companies which has adopted the concept of marketingorientation measure and evaluates all their activities related to marketing at regularintervals. Societal orientation- It is an approach where organizations operates with an objectivesof societal interest. At the initial stage, companies assess the interest of people in societyand then it delivers products according to the same. Companies which adopts thisapproach maintains a balance between profit margin and interest of society. Thus, benefits and costs of adopting marketing orientation are described as follows:Table 1: Cost-Benefit AnalysisBenefitsCostMarketing Orientation provides benefits to thecustomers by building buyer value which willaid firm to acquire customer loyalty and repeatpurchase.There is the involvement of extensive andexpensive research and thus, it adds more costto the company.This helps in responding demand in a quickermanner which is created in the market. If,McDonald's responds to the demand earlierthan it may gain the advantage of first mover(Cooper, 2000). There is a greater risk involved whileconducting market research becauseMcDonald's might underestimate the marketand due to which wrong results can beinterpreted. 6

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Premium

$45

Q&A Library Access

Chat support

12

Document Unlocks

4

Answer Unlocks

Students who viewed this