Marketing Principles Assignment : McDonald
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Added on 2020-02-05
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Our study is based on McDonald's. It is an American Fast Food Company. This study will discuss the concept of marketing, including current and future trends. It will explain the different marketing processes. It will evaluate the role and responsibility of marketing managers. This report will analyze marketing influences and interrelates with other functional departments. It will discuss the value and importance of the marketing role. It will explain the marketing mix of McDonald's and the marketing planning of McDonald's to achieve business objectives
Marketing Principles Assignment : McDonald
Added on 2020-02-05
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MARKETING PRINCIPLES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Explanation on elements of marketing process.....................................................................11.2 Benefits and cost of marketing orientation...........................................................................2TASK 2............................................................................................................................................22.1 Micro and macro environment factors affecting marketing decisions of MC Donald..........22.2 Segmentation criteria for MC Donald ..................................................................................42.3 Targeting strategy for MC Donald........................................................................................42.4 Impact of buyer behavior on marketing activities of the firm ............................................52.5 New positioning for the product .........................................................................................5TASK 3............................................................................................................................................63.1 Ways in which products are developed to sustain competitive advantage...........................63.2 Arrangement of distribution of the product..........................................................................63.3 Way in price are set to reflect objectives and market conditions..........................................63.4 Promotional activity of MC Donald and way in which they are integrated in order toachieve marketing objectives......................................................................................................73.5 Extended elements of the marketing mix..............................................................................8TASK 4............................................................................................................................................84.1 Marketing mix for two different segments in consumer market with reference to MCDonald ........................................................................................................................................84.2 Difference in marketing a product to business rather than consumers.................................94.3 Way in which international marketing is different from domestic marketing ...................10CONCLUSION .............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONMC Donald is a company that is operating a restaurant chain across the globe. In thisreport an attempt is made to understand the marketing efforts of the company. In respect to thismarketing concepts like market segmentation and targeting etc are discussed in detail. In todayera it becomes very difficult to perform market segmentation. This is because with passage oftime all variables of market segmentation are changing. Hence, on the basis of current marketsegmentation strategy firm during its entire life span cannot do proper targeting of the targetcustomers. Firms need to evaluate their market segmentation in proper manner time to time. Inthis report market segmentation techniques are described in detail and along with this appropriateway for market segmentation is also proposed for MC Donald. After targeting of targetcustomers’ product is positioned by the firms. In respect to this positioning strategies are alsodiscussed in detail and its model is also explained in the report. On analysis of positioningstrategies it has been find out that there are many unique ways that can be adopted in order toposition a product. Companies can position product on the basis of quality, technology and priceetc. Firms by selecting optimum position strategy can increase sale of their product. Afterdiscussing positioning strategy distribution channels are described in detail. In the report newproduct development process is explained in detail. Under this entire phase of productdevelopment is described in detail in the report. Competitive advantage of new productdevelopment is context of this model is also explained in the report. Apart from these porter fiveforces analysis is also explained in the report. Under this, environment forces like economic,social, political, and legal and technology factors are described in detail.Apart from thismarketing environment is also discussed in detail in order to understand way in which they affectmarketing decisions of the firm. After this marketing mix is described in detail and for differentsegments different marketing mix are proposed. At the end of the report, difference betweenconsumer and business marketing is described in detail. This is done in order to help reader inunderstanding that there is a huge difference in the consumer and business marketing andwhatever strategy applied in case of consumer marketing does not applied for business marketingAlong with this domestic marketing is also differentiated from international marketing. This isdone in order to make clear understanding that consumer behavior of the people vary from nationto nation. Due to this reason similar tactics cannot be applied on all nations.1
TASK 11.1 Explanation on elements of marketing processMarketing refers to any efforts that a firm made in order to sell its product. Withoutproper marketing a product cannot be sold in the market even it has good features. Some of theelements of marketing principles are as follows.Integrated marketing- It is a marketing in which several channels of communications areused by the firm. This concept states that message delivered through several channels ofcommunication must go in same direction. If all messages will communicate message indifferent direction then it will not put positive impact on people. MC Donald is followingthis concept and under different channels of communication it convey same message. Insuch messages it makes an attempt to make people aware about its product and feelpositive in regard to same (Cravens and Piercy, 2008). If from one channel ofcommunication MC Donald communicate that it is innovating its food making process.While from another channel of communication it state that its product is good in quality.Then people will not be able to focus on single factor. Some people will pay attention onthe innovative factor and some on quality. Hence, big change will not be observed insales. But if MC Donald communicates its product quality through all channels ofcommunication then people attention will go on single point and demand for product willincrease. Marketing audit- Marketing audit is a technique by using which managers identify thesuccess of their marketing efforts. Today, consumer behavior is changing very quicklyand it become very difficult to prepare effective marketing strategy. Tactics that weresuccessful in one period of time become failed in other time period. Hence, this techniqueis used by MC Donald tomeasure effectiveness of its marketing efforts. MC Donald inthis regard collects data from its all restaurants and identity restaurants where morepeople are comes. Moreover, by doing data analysis it also identify that in which areawhich products of MC Donald are mostly consumed. By doing this company getsinformation which can be used for advertising a product.SWOT analysis- SWOT is done in order to identify company strength and weakness.Further, these are tally with available opportunities and threats that are prevalent in the2
market. By matching with each other MC Donald identify areas where it needs to makeimprovements.StrengthPresence in the wide geographicnetwork.Unique product portfolio.Innovative product manufacturingprocess create different image of thecompany.Product is acceptable in all nations byall religions. Weakness Less promotion on traditional media.OpportunitiesIncrease in employment rate willincrease demand for fast foods.Reduced inflation rate will boostdemand for MC Donald products.Middle class people income level isincreasing in countries like India andChina and there is a lot of scope ofgrowth for MC Donald in these nations.ThreatReceiving stiff competition from smallretailers and Chinese restaurants.Marketing objectives- MC Donald prepare objectives in order to measure effectivenessof strategy (Hollensen, 2015). These objectives are divided into small objectives in orderto ensure that major objective will be achieved on time.1.2 Benefits and cost of marketing orientationMarketing orientation is a concept which states that products must be customized as pertarget customer requirements. Firm must not stick to its existing product line in such a highlycompetitive market. If same will be done then organization will be finished.Service and customer base- It state that quality service must be provided to the peopleand it must be sure that they do not face any difficulty while taking a service of thecompany (Jüttner, Christopher and Baker, 2007). MC Donald understands this thing and3
it is putting heavy stress on its service quality. It is continuously innovating its servicedelivery mechanism in order to make sure that service will be delivered on time and insystematic manner.Due to this reason its product gets wide acceptability across theglobe.Marketing research- MC Donald is conducting marketing research time to time in orderto track changes in consumer behavior of the people. It adopt this practice earlier and bydoing this research it also identify possible changes that can occur and impact that thesechanges will put on the people willingness to buy (Wilson and Gilligan, 2012). Afterpredicting future situation company formulates a strategy in order to maintain peoplewillingness to buy its product.There are following types of market orientation and their merits and demerits are as follows.Production orientation- Under this orientation firm believes in generating economies ofscale at the production place in order to keep its product price low. The main merit of thistechnique is that firm create loyal customer base of those people who prefer low priceproducts and does not give importance to quality. But main demerit of this orientation isthat in this firm compromise with product quality. Hence, such kind of firm cannot attractthat customer’s that give a due importance to the quality of the product.Product orientation- In this sort of orientation firm believes that by producing andselling superior quality of product it can develop loyal customer base. The main merit ofthis orientation is that firm is giving importance to the quality which every buyer wants ina product while purchasing a product. But main limitation is that quality alone not sell aproduct cost is also a factor which is given due importance by the buyer while making apurchasing decision.Sales orientation- In this firm focusing on selling a product by estimating their needs andwants without conducting a research. The main disadvantage of this orientation is thatwithout conducting a research a product is prepared while may lead to failure of theproduct in the market. The main advantage is that in this orientation firm makes anattempt to make product as per people need. Hence, if need is estimated in accuratemanner then firm product can gain a wide acceptability in the market.Market orientation- Companies following this technique assume customer as a marketking and they develop product and market strategy after doing a thorough research on the4
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