MARKETING PINCIPLES TABLE OF CONTENTS Introduction 1 Task 11
Added on 2020-01-21
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MARKETING PRINCIPLES
TABLE OF CONTENTSIntroduction......................................................................................................................................1Task 1...............................................................................................................................................11.1 Various element of marketing process of McDonald.......................................................11.2 Evaluate the benefit and the cost of market orientation to McDonald.............................2Task 2...............................................................................................................................................22.1 Influence of micro and macro factors...............................................................................22.2 segmentation criterion used by McDonald.......................................................................32.3 Range of products that McDonald offers.........................................................................42.4 How buying behavior affects the marketing activities in different buying situations......42.5 New positioning strategy for hamburger of McDonald...................................................6Task 3...............................................................................................................................................73.1 How McDonald products are developed so that the competitive advantages are sustained................................................................................................................................................73.2 Distribution strategy adopted by McDonald....................................................................83.3 explain the pricing strategy adopted by McDonald..........................................................93.4 Analyzing the promotional activity is used by McDonald's to achieve marketing objectives................................................................................................................................................93.5 Analyzing the additional elements of the extended marketing mix...............................104.1 Plan Marketing Mix for both the segment for McDonald..............................................114.2 Differences in marketing products and the services to business rather than consumers124.3 Difference between international marketing and domestic marketing...........................12CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................16
INTRODUCTION Marketing principles can be defined as a process of formulation and execution ofschemes and strategy. Formulation of strategy refers to measuring the situation in which themanagement operates. Strategic management refers to the related idea of strategic formulationand strategic conceptualization of plan. In this context, present report is based on McDonaldwhich is a largest fast food chain. Further, McDonald has become best known fast foodrestaurant. Moreover, cited company has almost 200 eating outlet and firm is promising todouble the chain in the coming decade (Cullen, Connor and Mangan, 2004). Further, this report is based on the study of McDonald, the largest eating outlet in theworld. The concentration is given on corporate objectives, external and internal analysis of thefast food center. The target of McDonald is lowering the cost and addressing through onlineservice offerings is the aim.TASK 11.1 Various element of marketing process of McDonaldIdentification of the selling goal: McDonald targets specific segment of population in theUK and other countries where the restaurant chain of the company operate.Making aim for the company: With uncertainty, McDonald is mainly concerned withbasic survival. To fulfil financial objectives of this financial institution uses themarketing technique retrenching which means keeping the brand vital and keeping profitlevels high. This in turn helps bank during inflation and deflation and keeping thesustainable growth (Blythe, 2013).Coming up of different Process – In eating outlet, to enhance their market shares,marketing plans start with the general strategic business plan. McDonald addresses thisthrough physical, offline and online service offerings. With this they need to research thetarget market then identifying rivalry (Tapp and Spotswood, 2013).SWOT analysis: It consists of strengths and weaknesses as well as opportunities andthreats which are present at marketplace. Supply chain management is one of the mainstrength of McDonald which helps it in expanding their business operations and functionson the large basis. Whereas firm have major threat from their competitors such asDomino's, subway etc. Thus, y converting the weaknesses into Strengths Company cantake advantage from opportunities which are available in the market.1| P a g e
Environmental analysis: McDonald's also needs to undertake environmental analysiswhich helps it in assessing the factors which have high level of influence upon the growthand profitability aspect of the firm. Thus, company needs to make analysis of political,economic, social, technological, legal and environmental aspects. Through this,McDonald is able to frame appropriate marketing strategies and policies.1.2 Evaluate the benefit and the cost of market orientation to McDonaldThe cost and benefits of the market are Cost- The changes in preferences of customerswill affect the functioning of McDonald all over the world. High risk is associated with theexposure and it leads to the uncertainty to carry out the various operations. The major issue isrelated to the licensing, permits and approval which they need in the context to expand in theother country. These are the cost that this eating outlet has to face.Benefits- The return on equity and asset is high as compared to different eating outletswhich are present in fast-food industry of UK. The dividend yield is very high as it is marked asthe world strongest eating outlet as it is represented in different countries. Various range ofoffering of the financial resources in respect to the various sectors and to become the largest fast-food chain by market offering.TASK 22.1 Influence of micro and macro factorsAccording to research, thousands of customers of McDonald find this eating outlet mosttrustworthy. They are for interest, easy carrying of food or parcel. McDonald offers bothpersonal and business services to their B2B and B2C consumer. This fast-food company tradewith the both inbound and outbound business people an example of employee commitment is theself-directed employee task group. Media helps the company to be known by its brand.McDonald, the largest fast food chain must look after its food quality (Yu and CAI, 2007). Microenvironmental factors include suppliers, competitors, public, employees as well as investorswhich closely affects the marketing strategies and policies of an organization. Thus, McDonald'sneeds to be taken into consideration all these factors while making decision in relation tomarketing of product or services.On the other side, macro environmental factors are those which generally impactcorporate performance from outside sources and some of them have been explained as below:2| P a g e
Political factors– Political relation McDonald has never been participating in governmentalactivities and has never provided aid for political activities. Whereas, in conformity with itssight and foreign mission to be acknowledged as a company that is far-famed for beingprotective McDonald systematically works for social upbringing for the society in line withthe Institution’s Societal Obligation policy that is CSR activities.Governmental policiessuch as increase or decrease in demand can affect McDonald.Economic factors- McDonald’s perspective on the mindset of the fast-food outlets staycomparatively non-fluctuating. This is done in terms of quality growth, working capital andearnings. This in turn helps the eating outlet in having adequately powerful opposition to theinternational economic fluctuations.Social factors- Corporal societal responsibility (CSR) programs undertaken by McDonaldmainly focus on rising the quality of educational activity in UK. These activities are chieflycarried out by adjacent communities to eating outlets and other areas. Execution of CSRprograms yield economic aid, scholarships, launching of McDonald’s new restaurant andexploding children motivation to eat. These activities are likewise held in collaboration withdifferent social group having broad and evidenced track record.Technological factors- With upcoming of advancement in data technology, globalization andfiscal activity consolidation united with rising cases and issues, provide McDonald as acomplex business. The Data Technology Guidance committee is accredited to ascertain andmonitor the different online eating business program.2.2 segmentation criterion used by McDonaldThe segmentation criteria used by McDonald are done on the basis ofdemographic segmentation. In McDonald, there are many fast food items that are of differentprices for different income customers. Thus, this is the key factor for the eating outlet in order tocarry out the various operations in the market of UK. McDonald wants the customer to be wellaware about the various services in order to compete with the other and provide good customerservice. Competition is very intense in the eating industry. McDonald leverages all the activitiesby the use of the social media in order to deal with the customer directly. According to thesesegmentation strategies the purchasing power of employees are been seen and evaluates. This inturn helps the company to know there customers and can walk towards the achieving the marketfor McDonald,3| P a g e
2.3 Range of products that McDonald offersIn broad terms, this strategy helps the McDonald to attain growth with same range ofservices of Hamburgers within existing market of UK. The primary intention behind using thisscheme is to intensify the market portion. According to the present case, McDonald can exercisethis strategy in order to raise their level of transactions. Yet, operating in such a competitivemarketplace it is crucial for the eating outlet to indulge in brave attempt so that it can hold itsplace in the present market as well as gain market share. Moreover, it said that the managementof McDonald to exercise this strategy to heighten fast food operations in present marketplace is astrategy which emphasis shows the advantage of Hamburger for a particular market segment.McDonald undertakes differentiated targeting strategies to achieve success in the competitivebusiness environment. It offers fast food product or services to their customers by taking intoconsideration needs and wants of them. McDonald provides offers different products tovegetarian and non-vegetarian customers and there by satisfy their needs and expectations. Thisaspect reflects that firm offers wide range of product and services according to their desires.2.4 How buying behavior affects the marketing activities in different buying situations.Consumer buying behavior is considered as a mental and emotional processes andorganization in this strategy fast food outlet seeks development by targeting its existing servicesto the brand-new market sections. Yet, sensing of the existing scenario of McDonald andexploding rivalry, it is crucial for the management to intensify their business by targeting itsactive scope of service to contrary market segment. This buying behavior could show importantfunction in raising eating outlet business to online so that they target many customers and yieldbetter results and outcomes. Moreover, by the means of this McDonald can conveniently coverbig geographical locations. However, this activity is centering on increasing commercialactivities through existing and new service range (Yu and CAI, 2007).4| P a g e
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