Entrepreneurial Marketing Principles and Practice

This assignment delves into the core concepts of entrepreneurial marketing. It examines the evolution of this field, emphasizing its distinct features compared to traditional marketing. Students will analyze various marketing tools and techniques tailored for small and medium-sized enterprises (SMEs). Additionally, the assignment explores the importance of market orientation, sustainable practices in marketing, and strategic considerations for achieving competitive advantage in a dynamic marketplace.

Marketing
Principles
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Various elements of marketing process of McDonald's........................................................3
1.2 Benefits and cost of marketing orientation for McDonald's .................................................4
Task 2...............................................................................................................................................5
2.1 Micro and Marco environmental factors that influence the marketing decision of the
McDonald's..................................................................................................................................5
2.2 Segmentation criteria used for McDonald's products in different markets...........................6
2. 3 Targeting strategy for McDonald's hamburgers...................................................................6
2.4 Buyer behaviour affecting marketing activities of McDonald's............................................7
2.5 Proposing new positioning for a hamburgers of McDonald's ............................................7
Task 3 ..............................................................................................................................................8
3.1 Product development in McDonald's to gain sustainable competitive advantage ................8
3.2 Distribution strategies used by McDonald’s.........................................................................8
3.3 Pricing strategy used by McDonald’s...................................................................................9
3.4 Promotional activities used by McDonald's..........................................................................9
3.5 Additional elements of the extended marketing mix...........................................................10
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........11
4.3 International marketing differs from domestic marketing...................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14
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INTRODUCTION
In modern era, every organization seeks for ways through which they can gain high
market shares and sales. Marketing is defined as the process of promoting and selling products in
the market. In the present scenario, the competition among business in every sector has become
so intense that it is not easy for organizations to retain their old customers and attract new ones.
Therefore, it can be stated that marketing plays very important role in businesses in order to
increases their sales and profitability. The present report is based on McDonald's which is a chain
of restaurants that operates in many countries of the world. Further, established in the year 1940,
it is considered as the world’s largest chain of hamburger restaurants (MacDonald's, 2016). This
report depicts various elements of marketing process of McDonald's. In addition to this, it also
explains some of the benefits and cost associated with marketing orientation of the organization.
The present report also highlights the micro and macro environmental factors which affects
entire decision making process of McDonald's.
TASK 1
1.1 Various elements of marketing process of McDonald's
In the current scenario, McDonald's is facing tough competition from market players such
as Burger King, KFC and Subway. Now, the brand is required to carry out effective marketing in
order to maintain its leading position in the restaurant industry (BOSE, 2010). The major
elements of marketing process of McDonald's are mentioned below as: Market analysis- The process of marketing begins in McDonald's with analysis of
market. It can be stated that before developing its marketing process, the brand identifies
changing trends in marketplace. For example, it may happen that the customers are
getting more affected by social media marketing instead of newspapers advertisement.
Therefore, in the stage of market analysis, McDonald's try to identify the factors which
affect consumer behaviour (Brassington and Pettitt, 2005). Identifying target market- The second steps in the marketing process of McDonald's is
related to identification of target customers and market. In this step, the organization
determines its target market and customers. Further, it is defined on the basis of age,
income, gender and other factors.
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 Development of marketing objectives- McDonald is also required to develop its aim and
objectives regarding marketing. One of the main reasons why the brand develops
objectives is that they act as guidelines and provides direction (Jobber and Ellis-
Chadwick, 2012). Some of the core marketing objectives of the brand include increasing
sales, market share, getting competitive advantage etc.
 Formation of appropriate marketing mix: After determining all its marketing objectives,
the organization develops an appropriate marketing mix to accomplish them. Further, it
can be considered as one of the most important part of McDonald’s marketing process.
The marketing mix consists of seven major elements which are product, price, place,
promotion, physical evidence, process and people. McDonald's defines each and every
factor of marketing mix separately.
1.2 Benefits and cost of marketing orientation for McDonald's
Marketing orientation can be defined as the process which concentrates on manufacturing
and delivering of products and services which satisfy the need of people in market at its best. In
the latter half of 20th century, the concept of market orientation started to develop among
companies. Most of the firms shifted their focus from product orientation to market orientation.
In earlier days, one of the major strategic objectives of businesses was to enhance quality of their
products and services. On a day, they operate with key aim of satisfying need and demand of
people in market through their products (Nwankwo and Gbadamosi, 2010). One of the major
benefits of marketing orientation to McDonald's is that it has helped the brand to carry out more
focused production. Further, it can be explained that by keeping consumers on priorities,
McDonald's is able to develop products and services which best satisfy the need of all its
customers. It has also helped the organization to enhance the degree of its customer loyalty.
Other than this, by delivering products which meet customer needs, McDonald's is able to retain
its old customers and attract new ones. It has also been able integrate all its function with one
core objective that is to meet the need of people in market. This has resulted in development of
more concentrated strategy. In addition to this, it has also assisted the brand in carrying out more
effective marketing, advertisement and promotional activities (Sheth and Sisodia, 2015).
McDonald's is required to bear additional cost as it is not easy to understand the changing need
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and demand of people in the market. This requires large amount of human, financial and
technical resources which can help in assessing the changing market needs.
TASK 2
2.1 Micro and Marco environmental factors that influence the marketing decision of the
McDonald's
The environmental factors that influence the marketing decision of the McDonald are of
two types and they are mentioned below as:
Macro environment factor:
Political  Health issues such as cholestrol and obesity
Employment and tax
Economic  currency rate price flucatition also affects the price of the product
 recssion time to offer low price food
Social  Animal welfare
 provide wifi
 offer healthy option in food menu
Technological  Outlets through social media
 Display machine to change thir menu
Environment  Recycle food waste
 Clean and ecofirendly disposable material
Legal  ISO certificated
 running hours
 employment and labour laws
Micro environmental factor:
Consumer Mcdonald are affected by the taste and prfrence of the consumer as people are
choosing healthier option for food as customer are getting aware for there
health. The price also plays crucial role in buying behaviour of the consumer.
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Supplier As the change in the price of raw material, packaging, can affect the rates of the
food due to which company has to offer discounts this affects the sales profit of
the company as it has to advertise their product so that with low price food
other item can be purchased.
Employees Organisation with knowlegeable staff and technical skill can increase the
business and employees having pace in doing work can delivery the product
fastly with effectiveness and new innovative helps in making marketing plan.
2.2 Segmentation criteria used for McDonald's products in different markets
McDonald's operates in various markets of the world and it is required to carry out
proper market segmentation before offering its products and services in that market. At the time
of operating in markets such as India, the brand needs to segments its market on the basis of
income. Further, majority of people in country belong to low or middle income group.
McDonald's can target these individual which belong to middle or low income group (Nwankwo,
and Gbadamosi, 2010). This will help the brand to attract more and more customers along with
increasing sales. All the strategies and action plan for McDonald's will be required to developed
in aspect of this particular segment only. On the other side of this, at the time of operating in
market such as UK, McDonald's can carry out market segmentation on the basis of age. It can be
stated that the consumption of hamburgers is done mostly by people who belong to age group of
16 to 40 (Demoss and Nicholson, 2005). Therefore, in developed markets such as UK,
segmentation of McDonald's can be carried out on the basis of age group.
2. 3 Targeting strategy for McDonald's hamburgers
After carrying out market segmentation, companies are required to develop effective
strategies for targeting. McDonald's can use various kind of targeting strategies such as
undifferentiated targeting, concentrated targeting and multi segment targeting. It can be stated
that one of the best and most suitable strategy for McDonald's hamburgers can be the strategy of
multi segment targeting. The rationale behind this is that it will help the brand to focus on one
more than one target market segment (Hills, Hultman and Miles, 2008). The organization
operates in many markets of the world and its market segmentation differs from country to
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country. Another reason why multi segment targeting is more suitable for McDonald's is that it is
cost effective. This strategy of segmentation will require great input from the management of
McDonald’s. Other than this, the brand will also need to increase its activities related to market
research and promotion. As compared to other two strategies, multi segment targeting strategy
will be more effective for McDonald’s. In undifferentiated targeting, businesses are required to
adopt a single targeting strategy and there is no market segmentation done (Lilleker, 2013). On
the other side of this, concentrated strategy deals with niche market which is also not suitable for
organizations such as McDonald's.
2.4 Buyer behaviour affecting marketing activities of McDonald's
McDonald's is an international chain of restaurant which has millions of buyer all across
the world. Buyer behaviours consist of several factors which encourages people in market to buy
products and services of one particular firm in the market. In the present scenario, social media
has developed as one of the most potential platform for businesses to promote and advertise their
products and services (Pomering, 2014). By creating official page on social networking sites
such as Facebook, McDonald's can interact with all its customers on more personal basis.
Further, before launching any kind of new product, McDonald's can post it on social media sites
in order to identify reaction of people. It can be explained that buyer behaviour has a direct
impact on all the operations and activities related to the marketing. Organization is required to
understand the important factors which affect the decision making process and behaviour of all
its customers. Along with this, it is also required to make changes in its existing marketing plan
in order to meet those factors which affects buyer behaviour. Personal factors such as age,
lifestyle, personality have great influence on the entire decision making process. It can be stated
that before developing any kind of marketing strategy, the brand is required to identify the
factors which affects the behaviour of people in market (Sodhi, 2011). McDonald's is required to
develop all its marketing plans and strategies on the basis of those identified factors.
2.5 Proposing new positioning for a hamburgers of McDonald's
Strategic positioning can be termed as the process in which companies carry out same
activities differently or do different activities as compare to what other market players are doing.
McDonald's is facing very tough competition from market player such as Burger king and
Subway. The brand is required to adopt new positioning strategy in order to maintain its existing
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market share and sales. As per its existing strategy, McDonald's has positioned itself as a very
low cost restaurant for all the people in market. It can be stated that in last few years, the
perception of customers in fast food industry has been changed. Now people have started looking
forward to consume more healthy food products (Wilson and Gilligan, 2012). Therefore,
McDonald's has an opportunity to position itself in market as a healthy food providers in the
market. As per the new positioning strategy, the brand will be required to make changes in its
existing and will need to introduce more healthier products which do not have negative
consequences. This strategy will not only help the brand in increasing its sales but will also
provide competitive advantage to McDonald's.
TASK 3
3.1 Product development in McDonald's to gain sustainable competitive advantage
sustainable competitive advantage can be termed as those attributes and skills of a
business enterprise which cannot be easily duplicated by other market players. The market in
which McDonald's operates is highly competitive. This means that people in market have wide
variety of option available with them. At the time of developing products, the brand makes sure
that it uses best quality of raw material and other ingredients (Zikmund and Babin, 2012).
Further it can be stated that two factors which provides the brand with core competency includes
its fast customers services and high use of technology. McDonald's keeps on implementing new
machines and tools which posses advanced technology. This helps the brand to lower down its
entire cost of production and make all its process more effective. The organization has always
been successful in delivering all its products and services on time. This has resulted in creating
more satisfaction among all the customers of McDonald's. In addition to this, products and
services on time has also resulted in encouraging customers to repeat purchase (Naik, Raman and
Winer, 2005). In some of its market such, McDonald's has also introduce offers such as delivery
within 2 minutes else get the entire order for free. No other market player has introduced such
kind of services or offerers. Therefore, it can be stated that it is the use of effective technology
which has helped McDonald's to deliver products and services at fast rate.
3.2 Distribution strategies used by McDonald’s
In the present era, there are various factors which supports an organization to achieve all
its aim and objective. One of these factors includes distribution system which plays a very
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significant role in success of any business enterprise (Constantinides, 2006). Organizations such
as McDonald’s are required to make sure that effective strategy and system related to distribution
is established in the brand. Effective distribution is necessary because it helps McDonald’s to
make sure that its products are available to customers on time. At the time of carrying out its
operations in any country, the brand distributes its products with the help of physical store. One
of the most interesting fact about McDonald’ is that it opens stores many places to make the
process of purchasing very convenient. As per its distribution strategy, majority of the times
McDonald’s will have its outlet on public places such as shopping malls, airports etc. Along with
this, the brand has also developed its online store from where it provides products to people in
the market (Kumar and et. al., 2011). McDonald’s is well aware of the fact that if the products
are not available to customers on time then they will move to other restaurant brands available in
the market.
3.3 Pricing strategy used by McDonald’s
McDonald’s is the brand which has been always careful regarding its pricing strategy. It
has developed its image as a very low cost restaurant in the market. Therefore, it can be stated
that the brand has adopted for a low prices strategy (Nwankwo and Gbadamosi, 2010). This has
helped the brand to attract individuals from all income group. The result of this was increase in
sales, profitability, market share and customer base of McDonald’s. With the help of using
modern and advanced technology, the brand become always successful in lowering down its
entire cost of production. Along with this, low price strategy has also provided the organization
with competitive advantage. The prices of products which are offered by McDonald’s are so
low that it attracts people which even belong to lower income group. At the time of operating at
global market, business are required to make sure that they have adopted an effective pricing
strategy. Prices of products and services has an direct impact on demand of the same.
MacDonald's low prices strategy has helped in generating more demand of all its products in
market.
3.4 Promotional activities used by McDonald's
The promotional activities adopted by the McDonald are mostly through communication
channels such as:
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 Advertising through television is the traditional ways of promoting the McDonald to
attract number of people at large which helps in promoting the product but its also makes
aware of new launch of food item and can also give more information and temp them by
offering gifts and picture form with audio is always remembered by the audience.
 Social Media is also getting popular among the mass as these are the mostly powerful
network of promoting the product at low cost. McDonald uses Facebook, Twitter and
YouTube are the weapons used by them to advertise their food item. From these mostly
young people are get attracted through this people are getting aware around the world.
As Facebook is fastest means of communicating information in less time.
 Tempting discounts and offer are also one of the technique used by the McDonald they
know that if once people enter then they will tell about their experience to other because
message from friends and colleague attracts them more to buy. Offer such buy one get
one free, offering things at discount with the other product, providing combo, providing
weekends family offers, providing coupons such as free recharge and providing loyalty
scheme to the loyal consumer this offer retain the people for longer time.
3.5 Additional elements of the extended marketing mix Process: McDonald's follows the systematic process of offering its products to its
customers by using proper planning and logistic process to sell their products in market.
In other words processes mean that everybody knows what to do and how to do it
(Brassington and Pettitt, 2005). All services need to be clearly defined. This will avoid
confusion and promote a consistent service. Physical Evidence: The level of comfort and attractiveness of a service location may
make a lot of difference to the user experience. Physical evidence of McDonald's states
about the validation of the company that is about the look and ambiance of the brand
which creates the differential image of organization in market.
 People: People are an essential ingredient in service provision recruiting and training the
right staff is required to create a competitive advantage. Customers make judgements
about service provision and delivery based on the people representing your organization.
It refers to the employees of the company, McDonald's gives training and development to
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its staff and employees that how they should offer the products and satisfies the wants of
consumers (Sheth and Sisodia, 2015).
TASK- 4
4.1 Marketing mix for two different segments in consumer markets for McDonald’s
Marketing mix consists of four major elements which are products price, place and
promotion. The marketing mix for two different segments in consumer market is mentioned
below as:
MARKETING
MIX
Marketing mix for health
conscious people
Marketing mix for students and working
professionals
PRODUCT Product The products in this market
segment will include hamburgers
and other products which will
provide benefits to health. Further
they will be free from fat and oil.
The products in this segments will
include hamburgers, fries and other
products which are offered by
McDonald’s normally.
PRICE The prices will be relatively high as
best quality of raw material and
ingredients will be used.
A low prices strategy will be adopted by
McDonald’s to attract more and more
people form this market segment.
PLACE McDonald’s will offer its products
and services to this market segment
by online store and its physical
outlet
The place of delivery will be physical
and online store of McDonald’s
PROMOTION Promotional activities will be
carried out in gyms and other health
clubs. Advertisement on
newspapers and television will be
done to create more and more
awareness among people.
Effective advertisement will be done on
television and newspapers. Promotional
events will be also carried out near
schools, colleges, universities and
corporate areas.
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4.2 Differences in marketing products and services to businesses rather than consumers
Marketing of products and services in context to customers refers to the business to
consumer (B2C) marketing. In this marketing the exchange of products and services takes place
between the McDonald's and consumers (Ali Talwar, 2013). In business to business (B2B)
marketing that is exchange of product and services between two different businesses (Demoss
and Nicholson, 2005). The ultimate goal of B2C marketing is to convert people in market into
consumers as aggressively and consistently as possible whereas, the goal of B2B marketing is to
convert prospects into customers, the process is longer and more involved.
B2C marketing the business target on the needs and desires of the customers on the basis
of which they satisfy their consumers (Hills, Hultman and Miles, 2008). In B2B, company
focuses on relationship driven marketing where the products and services are offered according
to the requirement of business.
In B2B products and services are exchanged between the manufacturer and retailer
whereas in B2C products and services are exchanged between retailers and consumers. In B2B
marketing the transaction of goods and services takes place on huge volume or on wholesale
basis (Pomering, 2014). In B2C the transaction takes place on retail basis where the customers
purchase limited quantity of products.
4.3 International marketing differs from domestic marketing
International marketing refers to the marketing of products and services at global level
that outside the boundaries of the country and it is planned and implemented in accordance with
the global viewpoints whereas, Domestic marketing refers to the marketing of the McDonald's
in its own country that is at national level only (Zikmund and Babin, 2012).
International marketing will gives the opportunity to McDonald's to cover large market area
with the large number of customers of the market (Demoss and Nicholson, 2005). The brand will
also get the advantage of availability of cheap labor and using of advance technology in their
business. In domestic marketing company has less challenges and risk as they have to operate
their business at domestic level only whereas in international marketing company has to perform
according to the international level.
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CONCLUSION
From the above report it has been concluded that using of marketing principles assist the
company to satisfy the needs, demands and desires of the customers. It can be concluded that the
different component which affect the marketing decisions of the market is micro and macro
factors. It can be stated that before operating in any kind of market, McDonald's effective carry
out its analysis. Proper market segmentation is done and on the basis of which strategies to
attract customers in target market are determined. It can be concluded that McDonald's has been
successfully because of its ability to provide products and services at very low prices as
compared to all its competitors. Other than this, it ability to deliver fast and accurate services has
helped the brand to get competitive advantage over other market players. From the above report
it can be also concluded that there is lot of differences in marketing products and services to
business and the consumers.
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