Marketing Strategy for Emerging Markets

This assignment delves into the complexities of marketing strategy within emerging markets. It emphasizes the importance of adapting traditional marketing approaches to effectively cater to the unique needs and characteristics of these markets. The discussion encompasses factors such as cultural nuances, economic considerations, and consumer behavior in shaping successful marketing plans for emerging economies.

Marketing Principles
McDonald's
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Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1 ...........................................................................................................................................4
1.1 Various elements of marketing process of McDonald's........................................................4
1.2 Benefits and cost of marketing orientation for McDonald's .................................................5
TASK 2 ...........................................................................................................................................6
2.1 Micro and macro environmental factors influencing marketing decisions............................6
2.2 Segmentation criteria for different markets...........................................................................7
2.3 Targeting strategy for range of products ...............................................................................7
2.4 How behaviour affects marketing activities in different buying situations ..........................8
2.5 New positioning strategy for selected product ......................................................................8
TASK 3............................................................................................................................................9
3.1 How products are developed to sustain competitive advantage ...........................................9
3.2 Explain distribution strategies used by McDonald’s ............................................................9
3.3 Pricing strategies used by McDonald’s................................................................................10
3.4 how promotional activities are integrated to achieve marketing objectives : ....................10
3.5 The additional elements of extended marketing mix...........................................................11
TASK- 4.........................................................................................................................................11
4.1 Marketing mix for two different segments in consumer markets for McDonald’s............11
4.2 Differences in marketing products and services to businesses rather than consumers........13
4.3 Difference in domestic and international marketing ...........................................................13
CONCLUSION .............................................................................................................................14
REFERENCES .............................................................................................................................15
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INTRODUCTION
Marketing is regarded as one of the most significant tool employed by every business in
the modern era where main motive is on enhancing awareness in the market so that sales volume
along with profitability of the enterprise can be enhanced easily (Naik, Raman and Winer, 2005).
Further, it is well known fact that every enterprise carries out operations in the market where
competition level is quite high and due to this reason need for effective marketing strategy is
must for business. Marketing principles takes into consideration different elements of marketing
which are product, price, place and promotion. By undertaking all these range of elements it is
possible for business to carry out overall operations in appropriate manner. Principles of
marketing supports organization in building its brand image and provides large number of
opportunities. For conducting the present study organization chosen is Mc Donalds which is one
of the world’s largest chain of hamburger fast food restaurant serving 68 million customers in
119 countries (Nwankwo and Gbadamosi, 2010). At present business has more than 36000
outlets all over the world. Various tasks have been covered in the study which are elements of
marketing mix, benefits of marketing orientation, segmentation criteria etc.
TASK 1
1.1 Various elements of marketing process of McDonald's
Marketing is an important process of business that allows corporate entity to create a
better image in the marketplace. McDonald's is the leading fast food retailer of world's market
and it is focused towards satiating the needs and wants of customers (Nwankwo and Gbadamosi,
2010). The effective marketing requires to collect specific market information which is called as
a marketing process.
Following points explains the different elements of marketing process of McDonald's: Market analysis- The foremost elements of marketing process is market analysis in
which McDonald's with analysis of market (Pomering, 2014). It can be stated that before
developing marketing strategies companies have to plan for market analysis. The
company major focused towards conducting marketing research via social media
marketing so as to known customers behaviours.
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 Identification of target Market : To identify target market is the major concept of
business in which company identifies the needs of different segments and choose the
market to which , it serve (Sheth and Sisodia, 2015). The market of McDonald's is
targeted on the basis of age, income, gender and other factors. Designing marketing objectives- To design the marketing objectives is the most required
task of business entity (Sodhi, 2011). Being a brand, MacDonald designs objectives so as
to follow guidelines and provides direction to the success. Major objective of business
are to increase sales, market share as well as gaining competitive advantage.
 Formation of appropriate marketing mix: Developing of appropriate marketing mix is
the most important tactic attain the objectives of business. Further, it can be considered
as one of the most important part of McDonald’s marketing process. On the basis of
marketing research, company designs marketing mix such as product, price, place,
promotion, physical evidence, process and people (Wang and Pizam, 2011).
1.2 Benefits and cost of marketing orientation for McDonald's
In the corporate world , there could be seen various concepts of marketing such as product
oriented concept, sales oriented concept, production oriented concept and the market oriented
concept. The marketing oriented concept is focused towards designing the product and services
in accordance with the needs and wants of customers (Wilson and Gilligan, 2012). This is to be
being into notice that there are four major concepts of marketing concepts such as target
marketing, integrated marketing needs of consumer, and profitability. The mentioned entity is
witnessed for adopting marketing oriented for serving the target market as well as to attain
higher profits and sales. The major benefit of marketing concept is noted that MacDonald is
world's leading fast food retailers which has created a image as a low cost product provider. The
brand is famous for its quality and low prices. The mentioned entity is witnessed not for
providing food but also experience in the ways of cheerful environment, air-conditioned, friendly
restaurant with innovation (Zikmund and Babin, 2012). However, this concept has came up with
cost as well as benefits for the company. The major benefit of this marketing oriented concept is
that MacDonald's can retain the customers by satisfying their needs and wants. Due to this the
customers are ready to pay the prices asked by the company in case the product has value added
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quality. To aware with the needs of customers the business has to pay monetary resources for
conducting marketing research. have to spend more on marketing research. This is considered as
a cost of adopting marketing oriented concept for MacDonald. In addition to that, market is
rapidly change and market orientation strategy allows company to take a marketing decision as
per customer market demand. Hence , the marketing orientation concept has benefits as well as
cost for the company (Ali and Talwar, 2013).
TASK 2
2.1 Micro and macro environmental factors influencing marketing decisions
Large number of macro along with micro environmental factors is present which affects
marketing decisions being taken by McDonald's (MacDonald's UK, 2016). For conducting
Macro analysis PESTLE has been carried out which has been shown below:
Political: This factor is associated with government laws and regulations where employment
along with tax law directly affects operation carried out by McDonalds. Apart from this, health
issues such as obesity along with cholesterol also affect company.
Economical: unfavorable situation such as recession is affecting entire economy due to which
McDonald has to offer products at low price and the overall fluctuation in the currency rate also
affects price of commodity (Darley and Blankson, 2008).
Social: This factor is linked with change in taste and requirement of target market. Further, Mc
Donald complies with changing need of customers where healthy food items are provided to
them along with WIFI system.
Technological: For performing efficiently company uses advanced tools such as machine display
to alter their menu etc.
Legal: Mc Donald strictly complies with the legal laws such as employment and labor, working
hours etc.
Environmental: With the motive to save environment business has taken various measures such
as recycling food, using disposable materials etc.
Micro factors
Consumer: Taste and preference of target market changes rapidly due to which time to time new
products are added in the existing range and this supports business in performing better. Further,
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healthy food is being offered to customers at an affordable price and this influences buying
behavior of customers (French and Bennett, 2015).
Employees: It is one of the major factor affecting McDonald as skilled workforce can enhance
business productivity and need of customers can be satisfied efficiently.
2.2 Segmentation criteria for different markets
McDonald carries out its operations in different markets and for the same it is necessary
to undertake different segmentation criteria (Hughes, 2002). Further, while serving in the market
of china it is required for brand to segment its market on the basis of income level of consumers.
Majority of the people living in the society belongs to lower of middle class. Therefore, by
segmenting target market on the basis of their income level business can target market in
efficient manner and this can boost sales volume of the company. On the other hand, another
segmentation criterion which is beneficial for business in the selected market of UK is on the
basis of age as usually hamburger is consumed by people lying in the age group of 16 to 40.
Therefore, by targeting individuals lying in this age group it is possible for business to target its
market in appropriate manner (Korotkov, Occhiocupo and Simkin, 2013).
2.3 Targeting strategy for range of products
After undertaking segmentation criteria it is necessary to adopt effective targeting strategy so
that business can easily target customers in appropriate manner (Onkvisit and Shaw, 2002).
Further, company like Mc Donald’s can consider different type of targeting strategies such as
concentrated, undifferentiated etc. In short one of the best strategy which company can adopt for
targeting its customers is multi segment targeting. One of the main reason behind selecting this
targeting strategy is that it can help business enterprise to focus on more than one target segment.
Business carries out operations in large number of market and segmentation criteria differs from
one market to another. Apart from this, recommending multi segment targeting will provide
another benefit to firm such as it is cost effective. This strategy will provide ample of
opportunities to business and it will become easy to meet with the expectations of the target
market in every possible manner (Kotler and Armstrong, 2013). On the other hand, other type of
targeting strategy is not appropriate for the business such as undifferentiated one as by adopting
this company is required to adopt single targeting strategy. Further, concentrated as a strategy
supports business to focus on niche market which is also not applicable in case of McDonald.
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Therefore, with the help of this it can be said that multi segment as a targeting strategy can have
positive impact on sales along with profitability of business (Ferrell and et.al., 2014).
2.4 How behaviour affects marketing activities in different buying situations
McDonald’s has high presence at global level and firm is indulged into practices of serving large
number of customers. Further, it is well known fact that buyer behavior is affected by large
number of factors which business has to consider so that target market can be easily influenced
to purchase products (Richter, 2012). In the present era, every business has started to promote its
products with the help of social media and it is enhancing sales volume of company. Moreover,
by promoting commodities with the help of facebook and other networking sites McDonald is
attracting its customers and this is supporting in influencing their purchase behavior. Further,
marketing activities of company are quite effective through which large amount of information is
being shared by business with its target market. For instance if any customer prefers to consume
hamburgers and different types of brands are present in the market who are offering this product.
So, in this case marketing activities of McDonald attract customers in this case and they prefer to
consume hamburger of firm rather than other brands in the market (Tapp and Spotswood, 2013).
Apart from this, it is necessary for business to consider personal factors of customers such as
age, income, taste and preference of target market. Therefore, in this buying behavior of
customer is affected by marketing activities of enterprise.
2.5 New positioning strategy for selected product
In order to perform efficiently in the market it is required for McDonalds to have
effective positioning strategy so that level of customer satisfaction can be enhanced easily.
Selected product is hamburger of McDonald for which the suitable positioning strategy is on the
basis of quality (Priya, Baisya and Sharma, 2010). Further, it is well known fact that company
like McDonald strongly focuses on quality of its products and this is one of the main reason due
to which business is able to enhance its overall presence at global level. Positioning on the basis
of quality and other type of attributes in the market will be one of the most appropriate
positioning strategy for the business and this can assist in accomplishing overall aims and
objectives of the company. Further, McDonald carries out its operations in the market where
competition level is quite high and due to this basic reason product differentiation is necessary
which is possible by representing quality in the product (Naik, Raman and Winer, 2005). By
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strongly focusing on quality of the hamburger company can develop its brand image at global
level and this can assist in grabbing large number of opportunities which are being present at
international level. Therefore, the proposed positioning strategy will be fruitful for the business
in every possible and can allow to respond towards the changing need and requirement of the
target market in every possible manner.
TASK 3
3.1 How products are developed to sustain competitive advantage
The company attain competitive advantages as leading the market and enjoying huge
customers base. Sustainable competitive advantage is mostly meant to be powerful when it exist
in the market for longer duration of time and the business who maintain the same for longer time
is said to be Sustainable competitive advantage. Cost leadership is successfully attained by the
company as the operational cost is reduced and MacDonald is generating higher returns and
profits (Sodhi, 2011). This allows MacDonald to have earning per share and return cash
dividends to their shareholders as earning long term returns. The adoption of this strategy has
allowed company to increase there more brand image in the market by becoming consumer
favourite food chain ,. it also allowed retaining customers and attaining market share. It has also
adopt the new marker technologies as user are becoming more savvy to new techniques. And by
providing them time to time good innovative quality food products at reasonable price.
3.2 Explain distribution strategies used by McDonald’s
With the motive to deliver appropriate products to the target market as per their
expectations it is required for company to have proper distribution strategy. Company like
McDonald’s has employed large number of distribution channels so that best product can be
delivered to customers as per their expectations. For delivering products physical stores are used
by firm through which convenience is provided to target market and this has enhanced brand
image of business in the market. This distribution strategy of business allows business to
understand need and overall requirement of target market and in turn act as development tool for
the entire company (Hennig-Thurau, Gwinner and Gremler, 2002). All the physical stores of
McDonald are effective enough in attracting customers and it has also enhanced sales volume of
the business. Majority of the customers prefer to visit stores of company on continuous basis and
this is one of the main reason due to which firm is regarded as leader in the market. Time to time
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business has opened new stores in the market with the motive to provide more convenience to
the target market. All the stores are located in the middle of the city so that customer satisfaction
can be enhanced easily and it is acting as a development tool for the business.
3.3 Pricing strategies used by McDonald’s
For sustaining in the market for longer period of time McDonald has adopted competitive pricing
strategy where prices for the range of products are decided by firm keeping in view prices set by
competitors in the market (Kuratko, 2013). This allows business to gain competitive advantage
and acts as development tool. Further, this also encourages target market to purchase products of
McDonald’s and firm is able to deal with its major competitors in the market (Swoboda, Elsner
and Morschett, 2012). Value added pricing is the most focused by MacDonald so as to attain the
customers towards the products. This is to be noted that the company provides value of products
by offering quality at the valued prices. For the quality of products the customers provide the
best quality.
3.4 how promotional activities are integrated to achieve marketing objectives :
Promotional activities play an important role in making a business successful. It will
enable the company managers in reaching the potential customers of customized clothing and
influence them in making a purchase decision or be a repetitive customer.(Riggs,2011) The
marketing managers of MacDonald can achieve their marketing objectives by promotional
activities which are as follows :
 Advertisement : It is a paid form of promotional activity through mass media which helps
in reaching a large number of people. The benefit of doing advertisement is that it helps
in reaching a wide audience and enhance brand recognition.. MacDonald's can advertise
heavily about its new food product on Television, radio, newspaper and can also go for
online advertisement (Kuratko, 2013).
 Online Marketing : At present there is rapid increase in the use of internet for getting
information about anything and everything. The managers of MacDonald can use online
marketing for their new customized products that they are planning to provide. Through
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online marketing company can communicate the benefits of customized products and
how they can get it (Nwankwo and Gbadamosi, 2010).
 Direct Marketing : It is one of the most powerful method used for spreading awareness
about the product. It is method used for connecting customers personally rather than
having indirect connection between the company and the consumers. The company can
do direct marketing through messaging on mobile phones, emails or by interacting to
customers through sites.
3.5 The additional elements of extended marketing mix.
Following are the additional elements of marketing mix which can also be taken into
consideration while adopting a marketing strategy:
 Physical Evidence: It depicts the quality of service the provider provides to its
customers . It act as an evidence that the service was delivered. The physical evidence of
MacDonald tells about the validation that is about the looks, sitting area, and format of
the company which creates a unique image of organisation in market (Ali and Talwar,
2013).
 Process: MacDonald follows the systematic process of offering its products to its
customer by proper planning and distribution process to sell the products in market.
 People: It refers to the employees of the company who are integral part of the
organization. MacDonald gives training and development to its staff and employees to
know how better services are to be provided to customers and fulfil the wants and desires
of customers (MacDonald's UK, 2016).
TASK- 4
4.1 Marketing mix for two different segments in consumer markets for McDonald’s
Every organization designs a marketing mix to attain the market shares and to attract the
customers towards the products and different offerings (Nwankwo and Gbadamosi, 2010). There
are four different elements of marketing mix that are to be arranged in two different segments so
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as promote sales and attaining good profits. The following table represents two different
segments in consumer market with marketing mix for McDonald’s:
MARKETING
MIX
Marketing mix for health conscious
women
Marketing mix for students and
working professionals
PRODUCT For serving the needs of customers in
this market segment, MacDonald can
come up with a healthy drink and
hamburgers that would be beneficial
for their health. The food products
must be free from fat and oil (Wilson,
and Gilligan, 2012).
For this market the company is
suggested to come with a new flavour
of burger and offer a best combo pack
which will be best than a ordinary.
PRICE The prices of this section will be
kept higher and the products will be
provided with the best quality
The food retailer must set the prices
low to attract the targeted people. The
low prices will be adopted to gain
attention of customers. s
PLACE McDonald’s can offer food products
in this segments to the retail store as
well as it can come up with online
store as well as must improve the
services at physical outlet
The delivery place will physical store
as well as the online orders of
McDonald’s (Nwankwo and
Gbadamosi, 2010).
PROMOTION The most famous promotional
strategy for the business is
advertisings and word-of-mouth . The
promotions can be carried out in
gyms as well as health clubs. The
advertisement is going to be done by
newspapers and television so as to
create more awareness among the
The effective advertisings are going to
be done at workplaces and corporate
zones for the special offers , discounts
will be provided to the student to attract
them towards the products and services.
In addition, promotional events may be
carried out near collages and corporate
areas.
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targeted people (Wilson and Gilligan,
2012).
4.2 Differences in marketing products and services to businesses rather than consumers
MacDonald deals in both B2B and B2C marketing in which operates with customers as
well as corporates (Wang and Pizam, 2011). The marketing of products to customers come under
business to business market as well as the marketing of products to corporates of third party is
refereed as business to business marketing. This is to be noted that company deals with
customers hence, it is more focused towards the customer to customers dealing, in addition to
that the company has given various franchisee to operate the business. The products are to be
exchanged between customers and McDonald's. Within business to business (B2B) marketing
the product and services are to be distributed among different markets (Sodhi, 2011). This is to
be said that the final goal of business to customers marketing is to make customers satisfied as
well as to make long terms revelations with them. In business to customers marketing, the
company is attached with the customers in a more efficient manner with an aim to attain
customers loyalty. In other words, B2C marketing the customers are to be satisfied whereas in
B2B, company focuses on making corporate relations
4.3 Difference in domestic and international marketing
International marketing is regarded as the process of promoting products and services at
international level where its main attributes are crossing boundaries of the country and is
implemented as per the global viewpoints (Sheth and Sisodia, 2015). On the other hand,
domestic market takes place when commodities are promoted within the country where market
size is not wide. In comparison between the two international and domestic marketing differs
from each other which company like McDonald’s has to consider necessarily (Pomering, 2014.).
While promoting products at international level McDonald has to consider taste and
preference of large number of customers as people living in the society belongs to different
culture, religion etc. On the other hand, at domestic level less culture differences are present due
to which it becomes easy for business to sustain in the market for longer period of time
(Nwankwo and Gbadamosi, 2010). Further, at international level more effective marketing
strategies are required for promoting products as competition level is high but on the other hand
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at domestic level competition level is moderate due to which business can easily sustain in the
market for longer period of time. Apart from this, political laws along with other type of barriers
also differ at domestic and international level (Naik, Raman and Winer, 2005). Therefore, in this
way domestic and international marketing differs and firm has to consider large number of
factors while marketing its products at both levels.
CONCLUSION
The report above presented the marketing principles in relation to a leading fast food
retailer. This was witnessed that company was focused towards satiating the needs and wants of
customers for with market research is made to identify the specific needs. From the above
report , it can be concluded that the marketing decision taken by the company are affected by
micro and macro factors. McDonald's is found able to carried out marketing practices with the
help of different elements of marketing. Segmentation is a crucial strategy that helps in attaining
attract customers and it is the major success factor that provides products and services at the low
prices. The company has competitive advantage in the form of fast services as well as the best
services and quality of products.
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