(solved) Marketing Principles McDonald's

Marketing Principles
McDonald's
1

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
2

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.
3

 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
4