Marketing Principles Report: Analyzing McDonald's Marketing Strategies

This report provides a comprehensive analysis of McDonald's marketing strategies, encompassing various aspects such as the marketing process, micro and macro environmental factors, segmentation, targeting, and consumer behavior. The report begins by outlining the key elements of the marketing process, including situational analysis, strategic planning, and implementation. It then evaluates the micro and macro environmental factors influencing McDonald's, such as consumers, suppliers, competitors, political, economic, social, and technological factors. The importance of market segmentation is explored, along with the various segmentation strategies employed by McDonald's. Furthermore, the report delves into the different targeting strategies, including differentiated, undifferentiated, and focused approaches. The report also discusses the types of marketing strategies that influence buyer behavior, including social, cultural, personal, and psychological factors. Finally, the report examines positioning strategies that McDonald's can use to differentiate its products and influence consumer perception, such as for a new range of healthy meals for kids. The report provides a detailed overview of McDonald's marketing practices and strategies, offering valuable insights into the company's approach to the market.

MARKETING
PRINCIPLES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................5
2.1................................................................................................................................................6
2.2................................................................................................................................................7
2.3................................................................................................................................................8
2.4................................................................................................................................................9
2.5..............................................................................................................................................10
3.1..............................................................................................................................................10
3.2..............................................................................................................................................11
3.3..............................................................................................................................................12
3.4..............................................................................................................................................12
3.5..............................................................................................................................................12
TASK 2..........................................................................................................................................13
4.1..............................................................................................................................................13
4.2..............................................................................................................................................14
4.3..............................................................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
A marketing activity is concerned with the mechanisms and processes with finding out
the needs and wants of the consumers and also carrying out the operational activities and all the
functionalities within the organizational culture of the business corporation. For carrying out all
these functions a business entity needs to follow the norms and regulations prescribed by the
legal team within the organization and also the governing bodies of the economy in which the
corporation is operating. For these key ingredient like product design, research, promotion and
customer services this concept of marketing is much broader term(Sheth and Sisodia, 2015).
And a consumer is considered as the king of the market and is the centre of attraction for any of
the organization. The below presented scenario is focused on the analysis which is to be carried
out on McDonald's which is a Hamburger and fast-food restaurant chain. The main objectives of
the study involves the concept and process of marketing and also the elements of the concept.
Further the evaluation of the macro and micro environment is also done.
TASK 1
1.1
Advertising, selling the products and promotion of the same and and also the products to
the individuals. Providing the consumers according to their need and wants is to be the only
motive of the organization. In this concept basic activities are the crucial and most significant
element of the marketing process which are to be done at initial level and plays an important role
in the success and make backbone of the corporation(Nowak and et.al., 2015). The below
presented are the elements of the marketing process of McDonald's:-
Situational analysis.
A detailed marketing research and a survey report need to be prepared by the team
assigned by then management of McDonald's. This survey will help the organization in coping
up with the changes and the latest trends emerged in the marketing environment. For
understanding the actual needs and wants of the market and consumer, this report should be able
to determine (Alserhan, 2015). To know about the new or changing preferences and the trends in
the market this analysis helps to the organization and it will aid in the design & innovating
products in the corporation according to the consumers.

[Source- Marketing Process, 2016].
Strategic Planning
As the survey team of McDonald's is ready with the research report, the next step in the
process is constructing the strategies. By the relevant data from the report the company will be
able to develop and plan the strategies which will help the organization with the future growth
and developments and necessary modifications and other essential factors liable in tackling the
competitors and and also to succeed inn the environment (Coduto, 2015).
Planning
The concept is concerned with the planning and tracing the paths for reaching the goals
and set targets. As per the above mentioned two steps McDonald's is well aware about the
process carried further to attain the objectives and in order to do a proper and appropriate track
should be developed. And for that planning or a system should be created which should contain
the path to reach the aim of the organization (Bühler and Nufer, 2015).
Illustration 1: Elements Of Marketing Process

Implementation and control
The concept is concerned with the implementation of the plans and strategies prepared
during the coursework and also controlling of the same is done. Moreover a team is also assigned
for the rectification of the errors and for betterment and improvements in future (Kubacki and
et.al., 2015).
1.2
The below mentioned are the benefits of the marketing orientation process for
McDonald's:-
 As the concept is consumer centric the company is working by considering the needs and
wants of the customers on top priority, which helps and provides the organization a
satisfied consumers and which is very much beneficial for the corporation as the market
share will be increased (Strydom, 2015).
 In the above organization to enhance & developed the efficiency of distribution for
product this process has used. For increasing the satisfaction level of customer this
process leads to enhance the goodwill and brand loyalty of the organization.
Marketing orientation is a process which has been adopted by McDonald's and but it is
quite an expensive concept. The further is an explanation in the tabular format of the
costs incurred in this process:-
Promotional Costs The costs incurred by the organization in the
process of advertisements and selling are the
promotional costs and these costs are high and
also a good communication process &
managing maintenance costs form the entity
consumer is demanded. (Nufer, 2015).
Market survey cost Higher expenditure spend on research &
development is high. For considering the local

market trend & demands McDonald have taken
an effective market research and survey.
2.1
The below is the evaluation done of the micro and macro environmental factors for
McDonald's:-
[Source-Macro environmental factors which influence marketing decisions, 2016]
Micro Environmental factors
Consumers
The most effective factor in the organization is demand which is totally based on the
consumers(Wahab, Al-Momani and Noor, 2015).
Suppliers
Determination of the prices of the products is to be influenced by this component which
plays a key role in the micro environment of McDonald's.
Illustration 2: Micro and Macro Environmental Factors

Competitor
In the organization competitors are to be considered as most influential stakeholder because they
liable and responsible in the fluctuations of selling price, profitability and other activities
(Atwong, 2015).
Macro-Environmental Factors
Political:
As McDonald's is a multinational brand ad has its chains in many regions and economies,
so the political factor has emerged as an great challenge for the organization as the corporation
needs to cope-up with each and every countries foreign policies as well as their political
stabilities policies which are different for each country and for the efficiency of a firm they
directly influence..
Economic:
The entity have to maintain the balance between the profitability, growth, expansion and
economic policies and hence due to maintain stability in business McDonald's considers the
production cost, demand, supply, differential economic growth and exchange rate around the
globe(Totten and Cross, 2015).
Social:
McDonald's is managing the organization globally and the entity needs to consider those
factor in the economy which it operate such as cultural, religious and traditional factors. For
analysing and developing of products closely depends on the trends & demand of the consumers.
Technological:
McDonald's is making use of the latest and updated machines and appliances in their
kitchens and in the cooking processes and also in the outlets. The corporation also make the use
of the modern means and methods to operate easily their work by arranging the products in the
outlets. To manage and maintain the uniformity and quality company has adopted upgraded
technology (Cooke and Dayton, 2015).
2.2
The explanation of the importance of the segmentation process of McDonald's is
presented below:-

To attract the potential consumers and market segmentation these techniques are mostly
used and also corresponding product differentiation strategy will gives a commercial advantages
to the organization.
Demographic segmentation: As on the basis of age, gender, income, ethnic, background and
family life style this concept divides the market. Accordingly, McDonald's is a hamburger and
restaurant chain so that have the important aspect is a need to consider this segmentation. For
example, fast food plays most important role in the groups of every ages, every income group
and every field of occupation(Epuran and et.al., 2015).
Age- Fast food is the most favourable eats-bles for all ages whether he is a adolescence or a man
of old age. but the difference between both the age people is the preference regarding the same.
Income- McDonald's is a the most economical brand for fast food so it is affordable by each
and every income group.
Occupation- Businessmen and other professionals and any other individual from any
occupation can afford and buy the products of the company (Kubacki and et.al., 2015).
Psycho graphic segmentation: This segmentation is based on the people's personality, motives,
lifestyles and as per their social class. The proper attention and care of the customers the firm of
McDonald's shows(Inyang and Etuk, 2015). According to the convenience and lifestyle of
people from various countries the corporation has adopted the culture. For example:-
Social class- For offering the best range of products and fast food to each & every class of
society organization has focused.
2.3
Various consumer of the segments and those targeting strategies through which
McDonald's targets the market are explained below:-
Differentiated Strategy:
To give knowledge about their products and related features and benefits company targets to
every consumer.
Undifferentiated Strategy:

To takes decisions of sending promotional messages to audience and making them aware about
the benefits and features of its product this strategy can be used. As per the message is conveyed
the products of the company's must be readily available and must provide the same benefits to
the customers.
Focused Strategy:
The benefits communicates by a single specific segment to the future customers through a
promotional message (McClements, 2015).
Due to variety of models undifferentiated targeting strategy suits to McDonald's. For
promote the products & services and targets the large number of public this strategy plays major
role. As much as possible company uses a marketing strategy that is intended to appeal and
ignoring all segment differences that exist within the market. For selling the products company
focused on public advertisement by using undifferentiated targeting strategy. By marketing of
the product and the strategies (in which the product produce in the market) the whole entity is
based. For better sales in the outlets the company have to adopt these strategy to advertise their
products.

[Source- Targeting strategies, 2016].
2.4
Types of marketing strategies that controls the behaviour and the factors effecting the buyers
behaviour are as follows:-
Social factors:
The social factors influences the consumers buying behaviour such as form the group or
the communities to which he belongs (Gupta and et.al., 2015). In sub-culture each group is
divided like nationalities, religious and racial groups. Reference groups, family, role and status
are the most important social factors.
Cultural factors:
On the consumers buying behaviour cultural factor have a great impact. For a person’s
wants and behaviour the most basic cause is culture. For the focus on new products which might
be due to increase in new demand or wanted by customers, marketers are always trying to spot
Illustration 3: Targeting Strategies

cultural shifts. For example teenagers prefers dining mostly in restaurants so the company should
cope up with this.
Personal factors:
For influencing the buyers behaviour personal factors plays an important role. Such as
lifestyle, economic situations, self concept, age and personality are some of the important
personal factors.
Psychological factors:
Perception, motivation, learning, beliefs and attitudes are four important psychological
factors that affects the consumer buying behaviour and for influencing the buying behaviour of
the consumers these factors are liable(Kotler and Hessekiel, 2015).
2.5
Positioning strategy are those strategies which classified the products differ from the
competitors and influence to firm by efforts or change the consumer perception. To create a
positive image of product or service in the minds of target market by organization is main motive
of this technique. Positioning strategy which can be used by McDonald's for establishing their
market for the new range of healthy meal for kids are presented below:-
As if the current market strategies is simple & effective but Corporation need to some
improvements in the company's current positioning strategy to establish the market for the above
stated product. For positioning of the launch of new product the organization can make use of
Price quality approach (Amine, 2015).
The concept which is used by the positioning strategy is relationship between price and
quality, product are priced as per their quality and it will create a good and positive image about
the product in the minds of the consumers. For instance, the price of the product is more only if
the healthy ingredients and the components in the meals are more. In addition, this concept
increase the sales and profitability of the organization. (Olsen, Wagner and Thack, 2016).
3.1
The following are the approaches through which the organization is developing to sustain
the competitive advantage:-
Cost leadership:
This is a unique concept which creates the competitive advantage internally to the
organization. It states that provides the product in less cost to the consumer will surely it

increases the profits of the organization. This traditional method is mainly used by the
organization mostly to set their goals or objectives, McDonald's uses this approach to set their
objectives or to enhance the customers.
Differentiation:
According to this strategy, the business corporation have the target to differentiate their
products and services form their competitors by the change in characteristics and features of the
product. McDonald is enable for creating a unique identity in the market through this approach
and build strong image in front of peoples. Afterwards, company will be enable to charge high
prices of their product and services and enhance their profit level. The major issues in front of
every business before adopting this strategy that customers really have different needs and wants
and existing competitor are are not meeting those needs and wants (Llauradó and et.al., 2015).
Focus :
As per this strategy the company will focus only on a limited part of a market. It helps
an organization to dominate a Niche marketing. To understand the significance and unique
customer needs of their market organisation need to succeed with use of this strategy.
3.2
The below is the two main methods of the distribution strategies which can be made in
use by McDonald's :-
Every organization have their own method for distributing their products and services. These
distribution channels are directly connected by the firm, in this process there are no middlemen
or intermediaries are involved. Customer avails easily services because this medium has the
direct approach towards customers through the branches available in the region (Brown, 2016).
Moreover, At present the another channel can be use is online medium such as, websites
and mobile applications for carrying out the distribution activities for the corporation. This
concept provides that the consumer just have to visit the online portal to access easier about the
organization or about the product. For the cost effective method this form of distribution is
beneficial.
3.3
To determine the price their are Several aspects of the trade and the marketing activities
to becomes more successful. Firstly, It takes time for preparing the product so that the producer
is paid fairly. Cost of the material is also needs to take in proper account so that in trade