Essential Elements of Marketing for Business Success

The assignment discusses the significance of marketing for business success, focusing on the marketing mix and PESTLE analysis as essential tools. It explains how these elements help analyze market situations, customer needs, and opportunities, making them vital for business growth and expansion.

Introduction To
Marketing

Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
TASK 2............................................................................................................................................8
Covered In PPT............................................................................................................................8
CONCLUSION................................................................................................................................8
REFRENCES.................................................................................................................................10
1

INTRODUCTION
Marketing is identifying as an effective activity and process for communicating, creating,
and delivering offerings that have value for clients. In addition, marketing is the social procedure
by which organisations and individual obtain what they want and need through exchanging and
creating value with others (Abideen and Latif, 2011). Marketing is vital essential to each and
every enterprise. It is the key activity of researching, selling and promoting services or products
to target market. In this report, chosen organisation is McDonald which is an American fast food
company. It was founded in 1940 by Richard and Maurice McDonald. Main purpose of this
report is to analysis main factors that impacting on business's operations. PESTLE analysis,
Segmentation, Targeting and Positioning, Marketing mix and SWOT Analysis of the company is
also covered in this report. Fast food market environment, marketing mix strategy and current
marketing performance of an organisation is also including in this assignment.
TASK 1
Marketing strategy of the company within the UK fast food sector
Overview of the UK fast food market
Fast food in the United Kingdom is dominated or subjugated by maximum global brands, with
this circumstances expected to carry on over the estimate time. The convenience given by a
causal knowing of both pricing and menus by a huge proportion of United Kingdom clients plays
an important role in defending global brands from self-governing competition. Fast food market
is a growing on quick basis which is essential and important for the different organisation whose
are come under this sector. There are some main examples of fast food market such as Burger
king, Pizza Hut, McDonald’s and many other organisations (Ahlemeyer-Stubbe and Coleman,
2014). All these are well-established and famous brand name in UK and across the globe.
Main factors impacting the company’s operations
McDonald has been a valuable and well-known brand name for over half a century. Mission and
vision of company is striving to be the best speedy service restaurant in all over the world and
formalizing their values into People Promise and “People Vision.” “Quality, Service, Value and
Cleanliness also became the organisation’s motto. The first McDonald store of company was
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built in year1940 by the original McDonald brothers; Mac and Dick and. McDonald’s is a
biggest and multinational fast feed chain in United Kingdom. In the UK market, there are
different competitors of the company which highly effects on its business operations and
activities in a direct manner. Burger King, Subway, Yum, Wendy’s, In & Out, Taco BellSonic,
Jack in the Box, Carl’s Jr, Togo’s, Quiznos, KFC, Popeye’s, Pizza Hut, Round Table Pizza,
Domino’s, Wenerschnitzel etc. All these are known as competitors of the McDonald’s and
effects on its operation and functions directly. KFC is the second largest company in fast-food
sector and one of the top competitors of McDonalds. Competitors of the company will try to
succeed market share by lowering price, improving efficiency, cutting costs and innovating by
either developing new services and products or enhancing upon old ones (Alice, 2013). Thus,
competition is identify as one of the main factor the highly and directly impact on business sales
and profitability.
PESTLE Analysis is another main factor that effects on business operations and
performance at marketplace. With the help of PESTLE Analysis Company can easily know
about the political, technological, social, environmental, economical and legal situation of
country where they decide to expand their business operations. Thus, Pestle analysis of
McDonald’s determined as under:
Political factor: McDonald’s operation is highly impacted by the regime policies on the rules
and regulations of fast food operation. Presently government are controlling and monitoring the
marketing of business because of health anxiety such as cholesterol and cardiovascular
problem and fatness among the children and young in the nation. Legal authority also monitor
the license agreed for start the fast food eating place and other business rule require to track such
as for a licence company (Bulley and et .al,. 2014). Effective relationship with regime in
providing common advantages such as tax and employment is a necessity for the organisation to
succeed in any international marketplace. Company should also keep its employees by ensuring
every one the hiring, training, repatriation or compensation is according to Malaysian Labour
Law as predetermined.
Economical factor: It is another factor that pertains to the impacts of economic trends and
conditions on the macro-environment or remote of McDonald’s. Changes in economic situation
are influence on business performance in direct and indirect manner. The international economy,
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local economies and regional economies highly effects McDonald’s industry environment via the
some economic external factors like Quick growth of developing countries, Slow but constant
development of developed countries etc.
Social Factor: This part of the PESTLE analysis identify to the social circumstances that help or
edge McDonald’s business in direct manner. Social trends effects user behaviours and, in move,
impact the macro-environment and remote of the organisation in forms of revenues. In regards of
McDonald’s business, the most important socio cultural external factors are related with rising
disposable incomes, busy lifestyles in urban environments, Healthy lifestyle trend and increasing
cultural diversity (Choi, Murray and Kwan, 2011). This factor also impact on business operation,
activities and performance in a direct manner.
Technological Factor: For a Macdonald’s, technology does not provide a high effect on the
organisation and it is not important macro environment factors. On the other hand, McDonalds
have to looking to challenger’s innovation and get better itself in forms of integrating advanced
technology in supervising its operation and functions. For instance in supply chain, inventory
management system to supervise its supply, simple ordering and payment systems for its clients.
Implementation of new technology can create them an administration more efficient in the long
period. This will also create purchaser happy if results of cost savings in promotional campaign
discount or price reduction which will essential them from time to time.
Legal Factor: This is another important and main part of the PESTEL analysis which pertains to
the effect of regulations or legislation on company. Variation in legal systems as well as new
rules shapes the distant or macro-environment of company by commanding new needs.
McDonald’s business must include the some legal external factors that (Coallier, 2012) effects
on its industry environment: rising animal welfare system, increasing legal minimum wages and
growing health related set of laws in workplaces.
Environmental factor: All around the world, legal authority are now emphasising on
environmental defence. The emphasis is now on sustainability that is not just a tendency but a
modify with a long term effect. The centre is not presently on brands of business but on its
supply chains too. Popular Brands like McDonalds and Starbucks are emphasising on having
sustainable supply chains and environment friendly. Such type of brands also has a maximum
customer base. Therefore, such kind of brands is more well-liked among their clients. There are
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also a different brands that did not emphasis on their environmental responsibility have faced a
loss of goodwill. It is why everyone major companies have a well-developed and effective
corporate social responsibility policy in order to handle and manage their environment related
issues. McDonalds too emphasis on framing accurate policies or strategy that are further
environment friendly.
Marketing performance and strategy of the McDonald’s
Marketing strategy is identify as a best and essential tool for the organisation to attract large
number of customers and achieve better outcomes within predetermined time period. With the
help of marketing strategy company can easily introduce their new product and service to
customers (Conley, Stou and et. al., 2011). In other words, marketing strategy describes and
defines the objective and planning via which business are going to fulfil consumer needs and
wants in the selected target market. There is some marketing strategy and performance of
McDonald’s which are determined as under:
Segmentation, Targeting and Positioning of the MacDonald’s
Segmentation: Market segmentation is identifying as an effective process of separating up mass
market into various groups of similar wants and needs. In addition, it is the separating of
populations into different number of persons according to various characteristics. McDonald’s
applies these segmentations and segmentation criteria:
Geographic segmentation: This type of segmentation classifieds markets as per the geographic
criteria (Glynn and Woodside, 2012). In regards of McDonald’s, they break their business
operations into various geographical segments like: Europe, America, Asia, Middle East, Africa
and many other countries like Latin America, Canada etc. Beside Geographic segmentation of
company, McDonald’s optimizes and update its menu and offering quality food to suit the needs
and tastes of regional. For example: In the USA, Quarter pounder burger and Bacon
Smokehouse Burger are available.
Demographic segmentation: This type of segmentation is based on customer’s demographic
variables like family size, income, age, socio-economic status etc. There is some segmentation of
market under demographic which is follows by McDonald’s.
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 Children: Restaurant offer different toys, happy meals, goodies etc., in order to attract
children or younger segment customer.
 Young Adults: In this company target customers who belongs under the age group of 18
to 29.
 Adults: In this McDonald’s tweaked their menu and develop offering is less in healthy
and calories. Thus, it helps an enterprise to target adults and increase their business
operations.
Targeting: After segmentation, McDonald’s desires to settle on the target strategy. Beside this,
they need to choose the segmentation of market that they desire to emphasis on and set it in their
prospect strategy. Along with this, Segment size and growth, segment structural attractiveness
an, business resources and objectives are three main and important factors for evaluating
potential market segment (Hall, 2014). All these potential market segments are select by the
McDonald’s in order to target for driving business strategy, marketing and sales activities.
Positioning: It is identify to the assortment of the marketing mix element the most appropriate
for the target audience segment. Positioning is attained through a direction of 4Ps of marketing
mix, and positioning matrix indicates that definite combinations create more logic than others.
McDonald’s is a multination fast food chain in the United Kingdom that uses adaptive kind of
product positioning and as a result, an organisation is occupied in journal re-positioning of
services and products according to variation in the segment. There is some direct quote from
company’s franchise strategy document:
“McDonald’s has made own self to be the family friendly and low fast food restaurant. Business
has a small scope for a client support and a low cost product strategy”
Marketing mix elements of the company
Marketing mix is identify as an essential and useful part of marketing which is uses by the
company in order to introduce their product or service in marketplace through different
channels of promotion (Lim, 2016). Marketing mix has 7P’s elements which are determined
under this in regards of McDonald’s:
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Product: McDonalds is well-established and famous fast food Chains Company in UK.
McDonalds specialise is selling of hamburgers, cheeseburgers, chicken products, breakfast items,
milkshakes, desserts and soft drinks. McDonalds has also built-in salads, fish wraps and fruits.
Price: It is another element of marketing mix which is mainly related with the price
points and price ranges of the business’s food and beverage goods. In order to sell their products
to the customers, McDonald’s use two types of pricing strategy such as Bundle pricing strategy
and Psychological pricing strategy. In the bundle pricing strategy, company provides meals and
many other item bundles for prices that are low-priced, compared to buying each product
separately. On the other hand, under psychological pricing, McDonald’s uses prices of products
that appear considerably more reasonable.
Place: This part of marketing mix enumerates the locations or venues where products and
services are provided and where clients can contact them. Restaurants are identifying as most
famous locations where the business’s products are distributed.
Promotion: It is identify as an effective tactics that the company uses in order to communicate
with customers (Malhotra, 2015). To promote their products and services, McDonald’s use sales
promotion, advertisement, public relation and direct marketing. For example, McDonald’s gives
freebies and discount coupons for few goods and product bundles, as a mode of attracting large
number of customers. In regards of McDonald’s, they distribute their products in different places
such as Restaurants, Kiosks, McDonald’s mobile apps, Postmates website and app etc.
Process: The food manufacturing process in restaurant is entirely transparent or clear i.e.
the complete procedure is perceptible to the clients. In piece of information, the McDonald’s
allows its clients to analysis and evaluate the hygienic and clean standards at McDonald’s. The
clients are invited in order to ensure the ingredients followed in food.
People: McDonalds has a sole approach of addressing its clients, and also treats their workers
very well. The workforce working at McDonald’s restaurant has a dress code in order to follow
and an organisation focuses on its workforce to be consumer friendly, encouraging and have
fondness for people (Millette, Powley and et. al,. 2011). The service delivery of company is
provided priority and client satisfaction is of greatest significance.
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Physical Evidence: McDonalds leaves a never-ending good impression or feeling when it
comes to physical evidence as a part of marketing mix. It develops a huge effect in the
consumer’s mind. The attributes of such type of marketing mix element displayed the speed of
service, hygiene and quality, transparency and cleanliness of processes. Thus, it is essential and
important for the growth and success of an organisation within predetermined time period.
SWOT Analysis
It is identify as an effective as an effective framework used to analysis an organisation’s
competitive position by determining its threats, opportunities, weakness and strength. Swot
analysis of McDonald’s determined as under: (Moradi, Aghaie and Hosseini, 2013)
Strength Weakness
 McDonalds is a massively popular and
famous brand name and top brand
loyalty.
 McDonalds has outstanding marketing
and advertising strategy which creates
it a upper of the mind brand.
 McDonalds is a fast food restaurant
that has often been concerned in
lawsuits regarding animal rights,
environment etc.
 High calorie and High fat food claimed
to be not superior for health conscious
or mindful people.
Threats Opportunities
 Health conscious and mindful people
avoiding fast food.
 Being a international brand, business
operations of McDonalds can be
impacted by fluctuating economies,
recession, etc
 McDonalds can enhance on the active
home delivery service.
 McDonald’s restaurant centure into
open more locations and newer mark an
vets.
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TASK 2
Covered In PPT
CONCLUSION
From the above mentioned information, it can be concluded that marketing is more
essential and important element for the organisation. Marketing support an enterprise to analysis
market situation, customer's needs and wants and so on. Beside this, PESTLE, SWOT,
Marketing mix play vital role by providing accurate and relevant information of market where
they decide to expand their business operation. Marketing mix is more effective and beneficial
element for the company to introduce their product or service in marketplace and to the
customers. PESTLE Analysis support a fast food sector to analysis political, environmental,
social, technological, legal and economic situation of country. SWOT analysis is also essential
for the business to examine their strength, weakness, threats and opportunity at that place where
they decide to enlarge their operations.
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REFRENCES
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Malhotra, N. K., 2015. Essentials of marketing research: A hands-on orientation. Essex:
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Millette, S., Powley, R., and et.al,. 2011. Introduction to Marketing.
Moradi, M., Aghaie, A. and Hosseini, M., 2013. Knowledge-collector agents: Applying
intelligent agents in marketing decisions with knowledge management approach.
Knowledge-Based Systems, 52, pp.181-193.
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