McDonald's - Understanding Concepts & Processes Of Marketing

Added on -2020-02-05

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MARKETING PRINCIPLES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1................................................................................................................................................11.2................................................................................................................................................22.1................................................................................................................................................32.2................................................................................................................................................42.3................................................................................................................................................52.4................................................................................................................................................52.5................................................................................................................................................63.1................................................................................................................................................73.2................................................................................................................................................73.3................................................................................................................................................83.4................................................................................................................................................83.5................................................................................................................................................8TASK 2............................................................................................................................................94.1................................................................................................................................................94.2................................................................................................................................................94.3..............................................................................................................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONIn today’s era, the world is becoming highly attentive on getting directly connected withconsumers and making the marketing experience more personal. Thus, it focuses on marketingprinciples which involve a range of processes in which the major emphasis is given on actualneeds, wants and desires of consumers. It consists of marketing mix that states about the total ofactivities that starts from transfer of goods and ends with making it reachable to ultimatecustomers (Armstrong and et.al., 2014). However, the process does not ends here as it alsofocuses on the satisfaction level of target people so as to make the business run in the long run.In the present report, there will be study made on understanding the concepts and process ofmarketing. Also, the concepts of segmentation, targeting and positioning will be discussed. Apartfrom that, individual elements of the extended marketing mix will be highlighted in the reportalong with using the marketing mix in different contexts. In order to understand all theseconcepts, the firm, McDonald’s has been selected that is one of the leading fast food restaurantchain serving people across the world.TASK 11.1Marketing process has several steps which differ as per the nature of business. InMcDonald’s, there are four key elements in its marketing process which are like:Analysing marketing opportunities – In case of McDonald’s has to launch a new productin the market, it analyses the existing opportunities and finds out current and futuremarket trends with assessing internal and external environment as well. Through this,firm becomes able to evaluate the strengths and weaknesses of business along withcompetitive forces at work and market forces that can affect its operations (Henley,Raffin and Caemmerer, 2011). Choosing target customers – After that, markets are chosen by the organisation in whichproduct will be launched, that is, the target customers to whom McDonald’s is going tooffer the creation.Developing marketing strategy – Later, after selecting the target customers, marketingstrategy is made which includes value proposal, targeting, segmenting and positioning ofthe product that is to be launched (Jobber and Ellis-Chadwick, 2012).1
Making marketing mix decisions – These decisions help the firm in using tactical tools forattracting new customers and beating the competition through increased sales. Also,marketing mix decisions help in providing a better value to its customers in against ofwhat they spent on purchasing products of McDonald’s. Implementation and control – This is the step where finally formulated strategy isexecuted in a planned manner (Lefebvre, 2012). Also, it is assessed here that whetherprocess is going on as per decided or not. If not, corrective measures are taken by thefirm so as to make the strategy successful.1.2Firms can develop their offerings on the basis of either product oriented or as permarketing oriented approach. However, McDonald’s is using marketing oriented approach inwhich it is making decisions that mainly emphasises on customer’s needs and wants. Thisapproach involves both; benefits and costs associated with it. Some of them are like:Customer centric – McDonald’s give high importance to its customer’s needs anddemands and satisfy the same in an effectual manner so that they can be retained in thelong run (Freiburg and Karlsruhe, 2012).Providing competitive advantage – This approach also proves to be helpful for gainingcompetitive advantage over others as when products are made with keeping inconsideration the actual needs of customers, firm gains the benefit of full use of goods.It ensures competitiveness over other competitors in the market. Offering customer benefit – Along with that, marketing oriented approach helpsMcDonald’s to create buyer value that ultimately results in increasing loyalty ofcustomers towards firm and they purchase products on frequent basis (Arslan andAltuna, 2010).Increased prices – As company is spending their money on conducting research forassessing latest trends of the market so as to render highest level of satisfaction tocustomers, it increases the price of products. It is because; company has to recover itsexpenses with their sales.Ineffective predictability – In marketing orientation, it becomes difficult to develop theproduct as all customers have diverse choices and preferences. So, to satisfy all becomes2

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