Training and Development Methods Analysis

This assignment delves into the realm of training and development methods. It examines different approaches used to enhance employee skills and improve organizational effectiveness. The analysis covers the strengths, weaknesses, and suitability of various methods for diverse training scenarios. Furthermore, the assignment highlights the importance of effective communication in fostering a successful learning environment.

MARKETING PRINCIPLE
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TABLE OF CONTENTS
INTRODUCTION....................................................................................................................................3
TASK 1.....................................................................................................................................................3
1.1 Various elements of the marketing process in McDonald's............................................................3
1.2 The benefits and costs of marketing orientation to McDonald's....................................................4
TASK 2.....................................................................................................................................................4
2.1 The micro and macro environmental factors influencing marketing decisions in McDonald's.....4
2.2 Segmentation used for McDonald's products in different markets................................................5
2.3 Targeting strategy for McDonald's fries.........................................................................................6
2.4 Buying behaviour affects marketing activities in different buying situations................................6
2.5 Positioning of a McDonald's Fries................................................................................................7
TASK 3.....................................................................................................................................................7
3.1 Product development to gain competitive advantage ....................................................................7
3.2 Distribution strategy adopted by McDonald's ..............................................................................8
3.3 Pricing strategy adopted by McDonald's........................................................................................8
3.4 Promotional activity used by McDonald's.....................................................................................8
3.5 Extended elements of marketing mix for McDonald's..................................................................9
TASK 4...................................................................................................................................................10
4.1 Marketing plan for two different segments for customers .........................................................10
4.2 Differences in marketing products and services to business rather than consumers....................10
4.3 International marketing differs from domestic marketing in McDonald's...................................11
CONCLUSION ......................................................................................................................................11
REFERENCES.......................................................................................................................................12
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INTRODUCTION
In the modern era, marketing plays a significant role in enhancing sales and profitability of an
business enterprise. Organizations nowadays have started to use traditional and modern marketing
tools to attract customers. In simpler words marketing can be defined as the process of promotion and
selling services and products to people in market (Talwar and Ali, 2013). The present report
demonstrates marketing principles associated with McDonald. Further established in the year 1940,
McDonald's is an American based chain of restaurants. Along with 1.9 millions employees, the brand
is considered as one of the largest employer in private sector. This report explains important elements
of marketing process of McDonald's. Other than this, it also includes the targeting strategy which has
been adopted by the brand. This report depicts how McDonald's develops all its products to gain
competitive advantage in this marketplace.
TASK 1
1.1 Various elements of the marketing process in McDonald's
Marketing is a combination of different activities such as product design, pricing, strategies,
promotional activities etc. These activities will done by the process which is known as marketing
process (Griffith and et. al., 2014). This process acts as backbone of marketing and helps in promoting
goods in the market. Marketing process has four elements which are as follows:
1. Research: To expand the business of McDonald's or to launch any new product, company will
do first marketing research as it provides information about its availability in the market and
also to identify the tastes and preferences of consumer. McDonald's also conducts research in
the market to find the consumers requirements and innovative method that can be adopted by
company in order to meet need of its consumers.
2. Strategy: After research, company focuses on marketing strategy to spot out position of its
product as well as company in the market by using SWOT analysis. Such type of analysis
provides information about present condition of internal environment through describing
strengths and weaknesses of company. Whereas, external environment is analysed through
identifying opportunities and threats available in the market. McDonald's strategies are related
to give excellent food quality with great service in order to attract large number of customers.
3. Planning: Company focuses on various pre-implementation activities such as location or area
where they will set up their McDonald's outlets. Moreover, organisation also concentrates on
blueprint of activities that relates to budget allocation and outlets establishment in UK in order
so that organizational objectives can be accomplished in effective manner. Company also
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focuses on the sources from which they can get funds.
4. Tactics: This is the last step in the marketing process which is focused to implement above
elements in the organisation. By implementing this, McDonald's can attract large number of
customers, compete with competitors, increases its sales performance, etc. Smart tactics
include giving offers, vouchers and discounts to the consumers to achieve the goals of
organisation.
1.2 The benefits and costs of marketing orientation to McDonald's
Marketing orientation is combination of products and services development activities in
appropriate manner that facilitates organization to meet the requirements of customers. McDonald's
marketing orientation is all about a unique combination of various marketing tactics and strategies so
that company can fulfil the operational opportunities as well as customer’s requirements. McDonald's
can give benefit to the customer by rendering new experience as well as good quality of products with
a clean environment (Gruber-Muecke and Hofer, 2015). McDonald's follows market oriented approach
which brings some benefits and costs to the organisation. Benefits for McDonald's in terms of using
market orientation include that it helps in providing excellent food quality to the customers according
to their tastes and preferences. Other benefit can include that organisation is giving low rate food to the
customers by addressing their demands. McDonald's is producing more and more products to increase
the level of demand as well as supply which result to increase their profitability It also helps business
to to gain better opportunities in the market.
Cost of marketing orientation includes the expensive research which is comprehensive as well
as costly because it demands high spends of money in the marketing research. To attract more
customers, company should focus on the tastes and preferences identification of consumers which may
increase the overall cost of organisation. Using new technologies for making innovative products and
services, company has to pay more for the marketing orientation.
TASK 2
2.1 The micro and macro environmental factors influencing marketing decisions in McDonald's
Micro Analysis (Helms and Nixon, 2010):
Strenghts
 Famous brand worldwide.
 High brand loyalty.
 Good promotional activities.
Weakness
 Poor franchisee management.
 High fat and calorie food.
Opportunities
 Improve home delivery service.
 Produce new innovative products.
Threats
 Health conscious people are the major
threat.
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 joint venture in newer markets.  Competitors like KFC, Burger King,
Domino's etc.
Macro Analysis (Cheverton, 2008):1. Political factors: McDonald's is meeting the requirements of the governments which
avoidsthe issue of licence for franchisee. Government is also focussing on the health related
policies for the consumers' health which has also been followed by firm. To expand business
globally, organization has to deal with the fluctuation in tax rate and interest rate available in
the international market.2. Economic factors: Company work culture is affected by the changes in inflation and exchange
rate. Economic factors includes demand and supply, wage rate, inflation rates, etc.3. Social factors: McDonald's has make positive impact on their loyal consumers and company
also knows the tastes, preferences and requirements of its consumers which facilitates in
betterment of products and services. By knowing all these characteristics, company is serving
its customers through best quality of food with the satisfied service.4. Technological factors: McDonald's effective tool for marketing is its promotional activities
such as social media advertisement, etc. Improvement in technology and expansion of supply
chain may also help to increase the business of organization. Company can also provide free
Wi-Fi facilities and clean environment to its customers (Team FME, 2013).5. Legal factors: legal aspect is also important for any organisation and McDonald's, also needs to
focus on diverse legal factors to create ethical work conditions . Legal factors can be tax
obligations, standards of the employment, equality act requirements, non-discrimination policy
etc.
6. Environmental factors: Social responsibility of McDonald's is influenced by the environment
of particular region in which company operates its business. Company uses recycle things and
biodegradable substances in their products and also considers optimum utilization of resources
for their products in order to serve good quality food to their customers and ensure the safety of
environment.
2.2 Segmentation used for McDonald's products in different markets
Segmentation can be done on the whole market on the basis of different aspects. Types of
segmentation are geographic, demographic, psycho-graphic and behavioural in which various markets
are divided (Budeva and Mullen, 2014). Two different segmentations are as following:
 Geographic segmentation: This segmentation is done on basis of size of population,
environmental factors of the region or area etc. McDonald's French fries is the signature food
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of company which is purchased by the customers worldwide because it is only product which
provides convenient food habits. For this, organisation has can focus on geographic aspects to
discover its customers because it is highly likeable product for all the ages of people and its
revenue is also increasing day by day.
 Psychographic segmentation: In this, the market is segmented on the basis of customers'
thoughts, beliefs, feelings, values, lifestyles, social class, tastes and preferences etc.
McDonald's fries is suitable to all types of social class and its tastes and preferences because
customers used as a side products which is purchased by all types of customers. Fries is the
product of McDonald's and the company has brand value so people is presenting itas the high
class product of the popular brand. Fries meets the needs and requirements of the customers
and liked by all social class of people.
2.3 Targeting strategy for McDonald's fries
McDonald's is targeting all customers that belongs to diverse age groups for its different food
products and services because the company provides all types of products that can attract large number
of customers. McDonald's is making targeting strategy for the company's signature food products i.e.
Fries which are highly populated all over the world. Fries are light food product which is preferred by
the customers and the company is targeting children and youth but it is considered by all ages of the
customers.
McDonald's fries is easily affordable by all the customers and the company is also giving
flavours in it and customers is purchasing it. For children, it is the good meal which is made of
potatoes and children enjoys it whereas for others it is a side food products which they take with
burgers or with others food products. Fries can be eat during snacks time and it is easily digestible
food products as compared to others and people are loving it (Shiels and et. al., 2013). The company
others products is depend on the tastes, preferences and lifestyle of the customers and according to the
region of the target market. The company is targeting all types of customers whether they are health
conscious or not because it is cooked in 100% vegetable oil which is good for the health.
2.4 Buying behaviour affects marketing activities in different buying situations
Buying behaviour affects the company's sales and its performance by analysing customers'
needs and requirements and their purchasing power to buy the products. One of the situation can be in
context of recession, the company is facing tough time because of low sales and less people are
visiting McDonald's and by this it is affecting the performance of the company (Michael, 2010). In
other situation, the economy is going in good pace and customers are visiting to the McDonald's. It is
also one of reason that the organisation is serving their food products in their usual price. In this
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context, consumer buying behaviour will be good which leads to high in sales performance as well as
customer ratio will increased which leads to profitability of the organisation (Hjort and et.al., 2013).
2.5 Positioning of a McDonald's Fries
Product positioning is marketing technique for the products to showcase its brand value to the
targeted market. For positioning the organizations promote its product through promotional activities
like television advertising, distributing leaflets and pamphlets about fries and giving them some
discounts on it and offering vouchers etc. to attract customers (Kengthon, 2011). The success of the
product also depends upon their experts, fast service, innovative idea, good quality and reasonable
price etc. Proper and effective positioning may leads to high sales performance and large number of
loyal customers. McDonald's is positioning its fries among the customers on large scale because it
made by the fine potatoes of the UK and it is widely famous among its loyal consumers (Urde and
Koch, 2014).
TASK 3
3.1 Product development to gain competitive advantage
Every organization is required to make sure that the product or services which it is offering,
satisfy the need and demand of people in market at its best. Nowadays the fast food industry is facing
intense competition and it is not easy for organization such as McDonald's to gain sustainable
competitive advantage. Start from the beginning, McDonald's has been very particular about
development of its products. In order to gain competitive advantage, the brand has developed a
strategy in which the products and services are developed by taking culture, taste and preferences of
people in market into consideration. McDonald's operates in different countries of the world and in
order to maintain its present market share it is required to be very careful. Sustainable competitive
advantage is gained by developing products as per the culture and taste of people in country (Bradley,
2013).
For example in market such as India, it has introduced vegetarian hamburgers which has gained
attention of people. On the other side, in Singapore market, it is providing non- vegetarian burgers
which includes chicken and beef. Intensive research of market is carried out by McDonald's to
understand changing taste and need of customers. On the basis of this, products of the brand are
developed. No other market player is providing such kind of products in the market. This has helped
McDonald's to gain competitive advantage and sustain the same. The organization has always been
successful in meeting the taste and customers expectation which has resulted in increasing customer
loyalty and satisfaction.
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3.2 Distribution strategy adopted by McDonald's
McDonald's is very particular about its distribution system which is used to provide products
and its services to its customers. At the initial stage, distribution of products was done with the help of
McDonald's outlets. Further with the passage of time, it started to expand its outlets into other
locations of UK so that it can become more convenient for people to buy products of McDonald's.
Along with the increasing competition, the brand started to distribute its all its products with the help
of online store along with physical outlets. It adopted the concept of home delivery wherein people
were just required to place order online. McDonald's has always ensured that its customers do not have
any kind of difficulty in finding the products and consuming the same (Hartline and Ferrell, 2010).
Now in many countries McDonald's is distributing its products with the help of physical outlet and
online store. The brand is well aware of the fact that the market possess intense competition and if
people in market do not find it convenient to but products of McDonald's then they may shift to some
other brand. Therefore, McDonald's always seeks for expanding its number of outlets in every country
where it operates.
3.3 Pricing strategy adopted by McDonald's
McDonald's is facing tough competition form market players like Subway and Burger King. At
the time of developing its pricing strategies it has been always careful. The brand has established its
image of being a low price burger provider in every country where its operates. In situation of intense
competition, the strategy of one brand has an direct impact on the activities and operations of other
market players. McDonald's always try to adopt modern and up graded technology which can support
in lowering down its entire cost of operations. In addition to this, it has developed good relationship
with all its suppliers. Therefore, it can be stated that use of high end technology and suppliers are some
of the factors which assist McDonald's to lower down the cost of its operation's. This further results in
offering products at low prices to people in market. Other than this, it can be stated that by delivering
quality products at low prices, McDonald's has attracted people from all the market segments (Pitta
and Scherr, 2009). Major targeted segment of the brand has always been those individual's which falls
in middle income group but it has also attracted people from high and lower income group.
McDonald's major objective is to become leading chain of restaurants all across the globe. This low
price strategy is helping the organization to attract more and more customers.
3.4 Promotional activity used by McDonald's
In the modern era, promotion has started to play very important role in attracting customers.
There are some tradition as well as modern tools of promotion which are used by McDonald's. The
chain of restaurants uses above the line promotional tools such as advertisement on television, posters,
8

radio etc. On the other side of this, it also Talwar, V. and Ali, H., 2013carry out effective sales
promotions. Direct mail, telemarketing, offers and schemes. At the time of operating in such as
competitive marketplace, it is not easy for McDonald's to attract new customers, in addition to this, the
organization is also required to make sure that it retains its existing customers and enhances their
loyalty. Therefore, McDonald's lays emphasis on various kind of promotional tools and techniques to
make the people in market aware of the products which it is offering. Advertisement on newspapers,
magazines, television, internet etc. are placed by McDonald's. Most of the time these ads are related to
any new product, offer or discount which has been introduced in the market. With the help of effective
ads the brand makes people in market aware and encourage them to buy products of McDonald's
(Varey, 2012).
On the other side of this, promotional activities are also carried out on social media sites a such
as Facebook and Twitter. McDonald's has developed its official web-page and account on these social
networking sites to interact with customers and attract them. At the time of developing and carrying
out any kind of promotional activity, McDonald's makes sure that right message is reached to the right
target audience with the help of right media. Some of the core marketing objective of McDonald's
includes increasing market share, sales, customers base etc. All the promotional activities are
developed only to achieve these objectives. (Gretzky, 2010).
3.5 Extended elements of marketing mix for McDonald's
Earlier the marketing mix of organization used to consist of four major P's which were products
price, place and promotion. Now the marketing mix has extended and includes three more elements
which are people, process and physical evidence (Vargo and Lusch, 2004). Extended elements of
marketing mix for McDonald's is mentioned below as:
 People- All the people which work in McDonald's have standard uniform which they are
required to wear. The brand has always taken care of all its employee and understand their need
and demand at its best. Workers of McDonald's are highly skilled and motivated which
supports the organization to deliver satisfactory products and services to customers.
McDonald's also provides regular training and development sessions to all its workers so that
they can get better opportunities related to employment and growth (7 P's of marketing mix.
2015).
 Process- McDonald's has always been transparent in its entire process of manufacturing. This
has become one of the major factor which has contributed in getting high degree of customer
satisfaction. All burgers, fries and other products are being developed at McDonald's in front of
customers. The brand has also maintained appropriate hygienic standard in all its process.
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Another interesting fact of McDonald's process is that sometimes the brand also invites
customers to observe and check the ingredients of products which McDonald's manufacture.
 Physical evidence- McDonald's has also developed hygienic and clean outlets in every
locations where it operates. Further cleaning staff has been appointed which clean the sitting
area and stores at regular intervals in a day. McDonald's has followed an standard ambiance
and interior in all its outlet all across the world. In addition to this, the brand has also
maintained an effective decorum in all its stores.
TASK 4
4.1 Marketing plan for two different segments for customers
The marketing plan for two different segments with reference to McDonald's is provided below
as:
 Marketing objective- The two different segment which can be targeted by McDonald's includes
working professional and students. The objective will be to increase sales, profitability and
market share of the brand (Kolassa and et.al., 2012).
 Strategies- At the time of targeting two different market segment, McDonald's will adopt two
different strategies. Combo meals with additional ingredients will be offered to students in
order to attract them. On the other side of this, heavy burgers and rice can be served to working
professional. In order to promote products to students, event can be carried out by McDonald's
at schools, colleges and universities. Promotion for working professional carried out by emails,
discounting coupons etc. Further the organization can also provide free home delivery to
working professional during their lunch hours. The pricing strategy will be low price strategy
for both the market segment.
 Implementation of plan- Advertisement will be carried out on newspapers, televisions and
radio regarding the new meals and offers which has been introduced by McDonald's for its new
market segments. On the other hand, existing customers will be communicated with the help of
email and text messages. The plan will be monitored at regular interval so that the best possible
outcomes can be received.
4.2 Differences in marketing products and services to business rather than consumers
Business to Business (B2B) Business to Consumers (B2C)
 McDonald's deals with chain of restaurant
businesses to sell its food products.
 There need large number of investment to
sell the products to the business (Kramer,
2014).
 McDonald's directly sells their products to
the customers.
 There is a small investment as compared
to the B2B.
 The company promotes its products
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 The company doesn't need any
promotional tools for promoting the
products because the company has its
connection.
 Product price is high because they are
directly selling to the big restaurants
which has big margins.
through promotional activities like
advertising, social media, online websites
etc.
 Product price is low because the company
has to increased more customers to their
French Fries (Burnaz and Bilgin, 2011).
4.3 International marketing differs from domestic marketing in McDonald's
International Marketing Domestic Marketing
 They should have good political relations
with other countries.
 McDonald's have to compete with other
competitors (Paul, 2008).
 The organizations has to follow rules and
regulations regarding health related issues.
Talwar, V. and Ali, H., 2013
 Management should follow the local
political guidelines.
 McDonald's is established food company
which has its brand image.
 The company is following rules and
regulations regarding health related
policies (Madsen and et. al., 2015).
CONCLUSION
From the above report it can be concluded that there are various factors which has helped
McDonald's to become one of the leading brand in the world. It can be concluded that the organization
has always respondent quickly to the changing taste and preferences of people in the market. At the
time of operating in a particular country, McDonald's develops its products by keeping culture and
taste of people in mind. Other than this, it can be also concluded that the quality products at low prices
has helped the brand to attract customers from all income group. McDonald's is facing intense
competition from brands like Subway and Burger Kind and therefore, it is required to carry out
effective marketing in order to attract more customers.
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