Internet Marketing: McDonald's and Global Challenges

This report delves into the multifaceted world of internet marketing, exploring its role within a modern marketing context. It examines how selected organizations, particularly McDonald's, leverage internet marketing strategies, including social media and online advertising, to connect with customers and promote products. The report highlights the benefits for customers, such as instant comparisons, clear product information, and 24/7 accessibility, as well as the advantages for businesses, including increased efficiency, opportunities for sales growth, and supply chain optimization. Furthermore, it analyzes the application of the marketing mix (product, price, promotion, and place) in the context of internet marketing and discusses the challenges of globalization, such as payment security and meeting customer expectations, that businesses face when using the internet as a marketing tool. The report concludes by emphasizing how internet marketing has enhanced McDonald's efficiency, effectiveness, and overall success in a global market.

Internet Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Describe the role internet marketing has within a modern marketing context.....................1
P2. Describe how selected organisations use internet marketing...............................................2
P3. Explain the benefits to customers of a business using internet marketing...........................2
P4. The benefits and opportunities to the business of using internet marketing within the
marketing mix of McDonald's.....................................................................................................4
P5. Internet marketing has made a business of McDonald's more efficient, effective and
successful....................................................................................................................................5
P6. The challenges of globalisation face by McDonald's when using the internet as a
marketing tool.............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Internet marketing, or online marketing, refers to advertising and marketing efforts that
use the Web and email to drive direct sales via electronic commerce, in addition to sales leads
from Web sites or emails. Internet marketing and online advertising efforts are typically used in
conjunction with traditional types of advertising such as radio, television, newspapers and
magazines (Online Marketing Made Simple: A Step-by-Step Guide. 2017). This report will cover
the role internet marketing has within a modern marketing context, use of internet marketing by
selected organisation, the benefits to customers of a business using internet marketing. The
benefits and opportunities to the business of using internet marketing within the marketing mix
of a selected business. How internet marketing has made a selected business more efficient,
effective and successful, the challenges of globalisation facing a selected business when using
the internet as a marketing tool.
P1. Describe the role internet marketing has within a modern marketing context
An innovative idea can go a long way toward creating a successful small business. But
ultimately, a company can't be profitable unless it can convince consumers to try its products
(Jones and Vijayasarathy, 2015). The Internet is a channel that businesses can use to advertise,
connect with customers and make sales. The roles of internet marketing are given below: Web Advertising- Marketing is one of the vehicles businesses use to attract customers.
The Internet provides a platform to place advertisements with the potential to reach
millions of consumers around the world. Several advertising options are available on the
Web. You can place banner and text ads on popular websites that are relevant to your
particular business. For example, if you sell your own brand of hot sauce, you might
consider buying ads on food-oriented websites such as Allrecipes.com, focusing on pages
that feature recipes that use hot sauce. The Web as a Sales Channel- The Internet also gives retailers an additional channel to
sell products. Thirty years ago, a retail store without a physical storefront was all but
unheard of. Today, you can buy almost anything you want on the Internet by visiting a
company's website. This lets you sell more products without the cost of having to rent out
and stock additional retail floor space. Market Research- Gathering information about the preferences and habits of consumers
is an essential part of marketing (Sung, 2015). If you don't know what your customers
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want, how much they are willing to pay for products, and who your competitors are, it is
difficult to offer the right product to the marketplace. The Internet can be used to gather
consumer data through Web-based surveys, email surveys and online tools that let you
track user activities and preferences.
 Communication and Customer Service- Building a base of loyal customers that come
back and buy products repeatedly is essential to creating a successful small business. The
Internet can help companies improve customer service by giving customers an additional
channel of communication that is available at all hours of the day.
P2. Describe how selected organisations use internet marketing
Internet Marketing McDonald’s- McDonald’s was found in 1937 by Dick and Mac
McDonald in California. They first started in an octagonal food stand, on Huntington Drive
(Route 66) selling hamburgers for ten cents and all-you-can-drink orange juice for five cents
McDonald’s does a lot of internet marketing especially with the help of social media, because
this saves a lot of time, effort and money. They also use role models as Justin Timberlake to
attract more customers especially focused on the youth.
They use Facebook, twitter and blogs to know what their consumers desire, also to
promote the new products that they are introducing. For example, at Facebook they use sharing
and liking for promotion (Rahimnia and Hassanzadeh, 2013). McDonald’s generally posts fewer
than five updates a month yet each one attracts several thousands ‘likes’ and comments, which is
more than the brands that posts several times per day. Furthermore, McDonald’s UK hasn’t made
any effort to reward its Facebook fans in any way. Many brands run Facebook competitions,
with Ikea’s warehouse sleepover being a notable example.
It posts several updates each day to entertain its 995,000 followers, however it tends to
avoid tweeting anything too quirky or off-message and instead remains resolutely focused on
promoting it products. This could be because this Twitter feed was the subject of a fairly major
social fail in 2012 (Sheikh, Shahzad and Ishak, 2016). McDonald’s used the hashtag
#McDStories to promote video content of their suppliers talking about McDonald’s ingredients.
P3. Explain the benefits to customers of a business using internet marketing
The internet has changed customer shopping habits and with rapid technological developments
accessing the internet has become easier than ever. People can access the internet whenever and
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wherever they like. Why do people like using the internet? Listed below are some of the benefits
of the internet for the customer. Customers Stay Updated- The internet has changed customer shopping habits and with
rapid technological developments accessing the internet has become easier than ever.
People can access the internet whenever and wherever they like. Why do people like
using the internet? Listed below are some benefits of the internet for the customer. Instant Comparisons - Customers Can Compare Prices and Features- One of the greatest
advantages for the customer is that they can compare products or services they wish to
purchase from the comfort of their own homes (Clarke, 2015). Instead of having to visit a
number of different retail outlets, the user simply has to open different internet window
tabs to compare prices or features of the product/service they wish to purchase. Many
retailing websites offer the facility where different products they sell can now be easily
compared. There is also price comparison websites that customers can use to get the best
possible price for their products. Clear Product Information For The Customer- Websites offer clear and consistent
product information to all internet users. There is little chance of misinterpretation or
mishearing what the sales person said as in a retail store. The internet has comprehensive
product information whereas in a shop the customer is reliant in the knowledge of their
sales advisor. Transparent Pricing Available 24/7- The price of products can be easy for the consumer
to find out ; customers can access pricing information from a range of sellers with a few
internet clicks (Parker, 2014). Customers can take advantages of pricing that may change
regularly or take advantages of special offers that last for a limited period as they can
access pricing information 24 hours a day/7 days a week. Whereas prices for products
offered for sale in retail premises can only be accessed whilst the store (or when store
telephone lines are) open. Track Your Purchase and Choose Delivery Dates- Many websites allow consumers to
track their purchase from when it is ordered through to when they are dispatched and
delivered to them. This reassures the consumer and makes them feel that they are
obtaining a good service online (Suki and Suki, 2013). Some sellers also allow the
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consumer to choose the delivery address for each purchase and select their own delivery
date and time. Reduction in Personal Carbon Footprint- Looking after the environment and the world
we live in is important for many customers. When consumers shop online they use their
cars less and their personal carbon footprint is reduced. Retailers can support carbon
reduction by sorting deliveries so that purchases by customers living close to each other
can be delivered on the same day.
 Shopping 24 hours A Day 7 Days A week (24/7)- There is no time restriction on when a
consumer can shop online; the internet is available all day every day. Many online sales
now start at midnight on a particular day encouraging customers to shop all hours of the
day (Semerádová and Vávrová, 2016). For example many retailers will start post
Christmas sales on the 26th of December at 00.00.
P4. The benefits and opportunities to the business of using internet marketing within the
marketing mix of McDonald's
Having identified its key audiences a company has to ensure a marketing mix is created
that appeals specifically to those people. The marketing mix is a term used to describe the four
main marketing tools (4Ps), product, price, promotion and the place through which products are
sold to customers. Market research is the format which enables McDonald's to identify this key
information. Accurate research is essential in creating the right mix to win customer loyalty.
In all its markets McDonald's faces competition from other businesses. Additionally, economic,
legal and technological changes, social factors, the retail environment and many other elements
affect McDonald's success in the market.
Market research identifies these factors and anticipates how they will affect people's
willingness to buy. As the economy and social attitudes change, so do buying patterns.
McDonald's needs to identify whether the number of target customers is growing or shrinking
and whether their buying habits will change in the future. Market research considers everything
that affects buying decisions (Ahmad, Darbari and Purohit, 2016). These buying decisions can
often be affected by wider factors than just the product itself. Psychological factors are
important, e.g. what image does the product give or how the consumer feels when purchasing it.
These additional psychological factors are significantly important to the customer. They can be
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even more important than the products' physical benefits. Through marketing, McDonald's
establishes a prominent position in the minds of customers. This is known as branding.
P5. Internet marketing has made a business of McDonald's more efficient, effective and
successful.
Below are the points which show that internet marketing has made a business of
McDonald's more efficient, effective and successful:
1. Opportunities for business efficiency- The increasing availability of the web gives
McDonald's all kinds of opportunities to speed up their interaction with both suppliers
and customers. This can lead to a number of efficiencies.
2. Supply chain efficiencies- A business will always be both a buyer and a seller, buying
products from other businesses, buying product from others and selling to others or
private consumers. A company like McDonald's has to buy the raw materials to use
before it can produce them in finished products (Duermyer, 2017). For business working
with supply chain creates smother faster ways of dealing with the firms they regularly
buy from.
3. Opportunities to increase sales from existing customers- Businesses that adopt internet
marketing strategy do so because they can see the opportunities either to improve sales
with in the marketers they already serve or to enter complete new markets. As internet
penetration increases and more business uses online strategy the web will become the
accepted method for marketers.
P6. The challenges of globalisation face by McDonald's when using the internet as a marketing
tool
While the internet offers marketing benefits and opportunities it also throws up many
challenges generated by an increasingly global marketplace (Jones and Vijayasarathy, 2015).
These challenges have to be prepared for. Businesses such as McDonald's must go through the
challenge of facing potential threats online on the internet.
1. Payment Security- The internet offers the chance to use direct channel of supply to
clients or customers this process is known as disintermediation in the tendency to cut out
the middle man.
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2. Meeting Customer expectation- The internet continues to raise customer expectations
and this is a challenge to all online business. The 24/7 availability and convenience of the
internet has been reinforced wit increased personalisation and price transparency.
3. Challenge of delivering- The internet continuously increases customer expectations
importantly customers are starting to expect higher levels of reliability responsiveness
convenience speed and speed in terms of both time taken visiting the site and in delivery
times once the order is placed.
CONCLUSION
From the above report, it has been understood that internet marketing is essential element
to generate profits and promote businesses effectively and efficiently. In the context the
identified areas are the challenges of globalisation face by McDonald's when using the internet as
a marketing tool such as payment security, etc. Various benefits and opportunities to the business
of using internet marketing within the marketing mix. From the context, it has been analysed
internet marketing has made business more efficient, effective and successful. The role internet
marketing has within a modern marketing and use of internet marketing by the organisation also
been evaluated.
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REFERENCES
Books and Journals
Ahmad, S. S., Darbari, M. and Purohit, H., 2016. Application of Evolutionary Algorithm in
Supply Chain Management for Internet Marketing. In Software Engineering Perspectives
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Clarke, A., 2015. Search engine optimization 2016: Learn SEO with smart internet marketing
strategies. CreateSpace Independent Publishing Platform.
Jones, J. M. and Vijayasarathy, L. R., 2015. Internet Shopping: Findings from an Exploratory
Study and Research Propositions. In Proceedings of the 1998 Academy of Marketing
Science (AMS) Annual Conference (pp. 349-349). Springer, Cham.
Parker, B. J., 2014. Innovating the marketing curriculum: Establishing an academic major in
internet marketing. Atlantic Marketing Journal. 3(2). p.13.
Rahimnia, F. and Hassanzadeh, J. F., 2013. The impact of website content dimension and e-trust
on e-marketing effectiveness: The case of Iranian commercial saffron
corporations. Information & Management. 50(5). pp.240-247.
Semerádová, T. and Vávrová, J. N., 2016. Using a systemic approach to assess Internet
marketing communication within hospitality industry. Tourism Management Perspectives.
20. pp.276-289.
Sheikh, A. A., Shahzad, A. and Ishak, A. B. K., 2016. The mediating impact of e‐marketing
adoption on export performance of firms: A conceptual study. Journal of Technology and
Operations Management. 11(1). pp.48-58.
Suki, N. M. and Suki, N. M., 2013. Consumer online shopping behavior: The effect of internet
marketing environment, product characteristics, familiarity and confidence, and
promotional offer. International Journal of Social, Management, Economics and Business
Engineering. 7(3).
Sung, C.G., 2015. A Study on Internet Marketing Strategy of an Online Women’s Apparel Brand
‘INMAN’.
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Duermyer, R., 2017. How to Start an Online Marketing Business. [Online]. Available
through:<https://www.thebalance.com/how-to-start-an-online-marketing-business-
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Online Marketing Made Simple: A Step-by-Step Guide. 2017. [Online]. Available
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