Marketing Principles and Strategies for McDonald's: A Detailed Report

This report delves into the marketing principles applied by McDonald's, a global fast-food giant. It begins with an introduction to fundamental marketing concepts and then examines the various elements involved in McDonald's marketing processes, including research, strategy, and planning. The report analyzes the micro and macro environmental factors that impact McDonald's marketing decisions, such as suppliers, customers, political, economic, and social factors. Furthermore, it explores market segmentation strategies, target market selection, and the influence of buying behavior on marketing operations. The report also covers positioning strategies, competitive advantages, and distribution channels employed by McDonald's to gain market share. The report concludes with a summary of the key findings and insights into the application of marketing principles in a real-world business context. This report, contributed by a student, is available on Desklib, a platform offering AI-based study tools.

MARKETING
PRINCIPLES

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 ..........................................................................................................................................3
1.2...........................................................................................................................................4
2.1...........................................................................................................................................5
2.2...........................................................................................................................................6
2.3...........................................................................................................................................7
2.4...........................................................................................................................................7
2.5 ..........................................................................................................................................8
3.1...........................................................................................................................................8
3.2...........................................................................................................................................9
3.3...........................................................................................................................................9
3.4.........................................................................................................................................10
3.5 ........................................................................................................................................10
TASK 2..........................................................................................................................................11
4.1.........................................................................................................................................11
4.2.........................................................................................................................................12
4.3.........................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCE ................................................................................................................................14

INTRODUCTION
Marketing principles are fundamental instruments through organization perform various
activities (Allyson Dooley, Jones and Iverson, 2012). In this organization build strategy then they
are performing various tactics which helps to achieve goals of the business. Marketing principles
also deliver value to customers and it is beneficial to society which make opportunities to
enhance profits of firm. Present report is based on McDonald which is one of the largest
restaurant from various resorts. It has more than 1200 restaurants in UK and 97000 employees
who are working together to deliver high quality food and services. They offer to the people
culture of flexibility, opportunity, equality and diversity in different countries (About
McDonald's, 2016). This report helps to understand various elements of marketing process and
benefits for the cited firm. Furthermore, it covers micro and macro environmental factors which
influence marketing decisions. Moreover, it proposes segmentation criteria and target strategy in
different marketplace. In addition to this, report analysis additional elements of marketing mix
for chosen enterprise.
TASK 1
1.1
There are various elements through organization can make successful plan for the
business (Llauradó, Aceves-Martins and Giralt, 2015). In McDonald it consists various activities
such as product design, determination of pricing method, strategies and advertising, etc. In this
context, below are the process of marketing elements which can be considered in cited firm:
 Research: If McDonald wants to launch their new product for enhance market share,
they need to conduct market research. With the help of research, the company can easily
identify suitable area and customers requirements from the products. Thus, cited firm can
easily demonstrate things which are requires to development of products in other
marketplace. In addition to this, market research also useful to provide important message
at environment so enterprise can easily recognize target and segment (Lee and Hoffman,
2014).
 Strategy: Once McDonald conduct research they recognize data which are requires for
developing products at marketplace. After this, organization find their strength and
weaknesses through they can increase or decrease it respectively. Further, they determine

strategy to overcome weakness for their business. For example, in new marketplace cited
firm can easily attract customers because it has high market share and customers can
easily recognize it (Cadwallader, Atwong and Lebard, 2013). On the other hand they are
unable to complete their mission easily so that with the help of strategy organization can
overcome their weaknesses. As resultant, it is helpful to beat competition and succeed in
the market.
 Planning: Now McDonald can make their plan for reach towards the goals of business.
In this context, they can make marketing plan including forecasting, financial planning
and many more benchmarks within the firm. It reduces wastage of time because it
determines time to time performance within the plan.
 Tactics: With the helps of tactics organization can easily implement plan to attract
potential customers (D. Newton, J., J. Newton, F. and T. Ewing, 2013). It will assist to
them to beat with competitors and increase sales which helps to provide better services to
customers.
1.2
Marketing orientation is a model which focus on delivering products designed according
to customers desire, needs and requirements. With the help of this, McDonald identified needs
and wants of customers and then make products accordingly. Further, it involves monitoring on
the competitors actions and their effects on customers taste. With the help of marketing
orientation, chosen enterprise make strategies that concentrate on establishing the products and
services to meet with customers demand and requirements (Savell, Gilmore and Rosengren,
2015).
Benefit and cost marketing orientation of McDonald
Marketing orientation is very helpful to McDonald as they can understand current market
share. Along with this, they also understand about customer perception of the products and make
improvements in it. In this context, chosen business attract customers through their effective
packaging style. Further, it delivers long-term profitability to the organization which helps to
enhance market share of cited firm. In addition to this, company make ultimate goals which
develop many loyal customers towards the business (Bodet, 2013). As a result, loyal customers
buy more products in larger volumes. Beside this, enterprise also enhance their investments

which assist to more growth of the company in new markets. Thus, they can easily concentrate
on customers requirements without any difficulties.
2.1
There are two types of environmental factors which create impact on external
environment of McDonald. In this context, below are the micro factors which influence to the
marketing decisions of cited firm:
Suppliers: Suppliers are those persons who have power to control success of the business. In the
cited firm, mangers need to manage relations with the suppliers so that they can get raw-material
time to time (Khajeh, Dabestani and Fathi, 2015).
Customers: Customers are different types such as B2B, B2C, local and international, etc.
McDonald provides their products according to customers needs and wants. In this context, if
customers change their taste and preferences, cited firm have to change their products
accordingly.
Resellers: Sometimes product of the McDonald perceive by third party or market intermediaries
such as resellers and wholesalers, etc. In this context, cited firm need to develop various resellers
which do marketing of the products (Robertson and Kelly, 2013). For example, if resellers is a
reputable name then it creates reputation of the products as well.
There are many factors of macro environment which affect to decisions of the
organization. Thus, below are the macro factors which also influence yo the decisions of chosen
enterprise:
Political factors: Political factors includes government policy which involve policies related to
tax which influence to the decisions of McDonald. This is because, company need to pay taxes
according to changes in tax rates (Khajeh, Dabestani and Fathi, 2015).
Economic factors: Economic factors includes inflations and interest rates which create big
impact on the cited firm. It creates impact on the business in term of recession and prosperity.
For example, if in a country has higher interest rates on investment it decreases costs to borrow
money.
Social factors: Change in social trend can also create impact on the demand of McDonald
products. In this context, company have to make products according to customers preferences.
Thus, it can be stated that changes in social system also affect to business decisions that they
should supply products accordingly (Hayes, 2015).

Technological factors: New technology create new products and processes in the cited firm. In
today's time customers wants effective services which can be done only through new technology.
As resultant, it influences to the McDonald decisions that they should adopt advance technoly
which helps to provide better services.
2.2
Market segmentation is the best aspects which helps to develop new products in the
marketplace. In this context, McDonald can introduced their new products as choumins in their
stores. In this, they can determine different types of products such as simple choumin and mixed
vegetables choumins, etc. In order to develop the operations in new market they can offer it to
Africa and Ireland market (Gordon, 2013). In this context, they can segment their product on the
following basis:
 Demographic segmentation: In this segmentation McDonald can introduced their
products to targeting young age of people. They can demonstrate variety of different
choumins in Africa marketplace.
Illu
stration 1: Micro and macro factors
Source: The impact of micro and macro
environment factors on marketing

 Geographic segmentation: On the geographic basis McDonald can introduced their
products in Ireland market. In this context, they can target individual who are living at
different places. With the help of this, they can establish their products at various places
in one market.
2.3
When organization select their target market, they need to develop product through
focusing on segmentation criteria (Yusuf, Sukati and Chin, 2014). It will help to McDonald as
they can easily establish product in mass market. In this context, below is the target strategy that
can be used by cited firm:
Differentiated marketing
When market show various target segment, company can use differentiate marketing
strategy. In this McDonald can design specific market segment for each segment. In this context,
they can easily exploit difference between marketing segments and their product which
establishes in new marketplace. In respect to this, cited firm can follows multi-segment targeting
strategy and develop distinct marketing mix for each. Beside this, before deciding this strategy
company should compare benefits and cost which occur to develop targeting (Tournois and
Aoun, 2012).
2.4
Buying behaviour is influences by internal and external factors that determine reasons for
buying products and services within the organization. This behaviour affect to the marketing
strategy which helps to develop and promote the products and services of business. In this
context, below are the elements which affect to the marketing operations in different situations of
McDonald: Supply and demands: Supply and demand considered ratio of supply and demand
towards the products of McDonald. It can be affect to the cited firm in term of that supply
is high and demand is scared (Morgan, 2015). Similarly, when products and services
scared it enhances demand of the products and services. This will assist to the business as
they can easily market to the products.

 Routine behaviour: Routine buying behaviour is a programmed that consumers' response
for certain types of products. In this context, those products including which can be
purchase on a week-to-week basis.
 Complex decision-making: Another type of buyer behaviour is complex decision-
making. In this condition, customers are mainly associated with pricing and scarcity of
the products. In McDonald customers firstly doing lot research to identify perception
regarding new products (Phillipson, Gordon and Janssen, 2016). In this context, they
make their decisions on the basis of relatives, peers and friends references.
2.5
Positioning can be done by various methods which helps to develop operations of the
McDonald in new marketplace. Main aim of the company is to establish brand of the product
which has different position in marketplace. Further, they demonstrate the brand of the product
which can competing from others in the mind of customers. It includes various aspects such as
attributes, objects, application and different perception. In this context, cited firm can adopt
pricing positioning strategy. In this aspect, they trying to develop product quality according to
customers interest so that cited business will be able to entered into new marketplace (da Silva
and Mazzon, 2016). Along with this, organization can also adopt positioning strategy which is
based on product process. In this context, chosen business can develop their products on the use
basis.
3.1
For attaining competitive advantage McDonald can use following factors through they
can develop new product in the market:
 Understanding to the competition: When McDonald develop their new product in
Ireland and African marketplace, they need to understand competition of the products.
This can be done through conducting market research which determine taste and
preferences of the products and services of different customers. In this situation, cited
firm use various techniques such as online marketing, distributing vouchers and promote
to the events so that they can achieve competitive advantage at workplace (Grönroos,
2004).
 Make public relations: It is essential to develop new products that cited firm have to
make public relations to launch new products in marketplace. This is because, public

relation play very important role for achieve sustainability in new areas. With the help of
this, McDonald can introduced their products through magazines, newspapers and
banners that assist to them to targeting right people (Khajeh, Dabestani and Fathi, 2015).
 Cannibalize the organization products: It is the best way to retain current market share
with improving new products. Main aim of the organization is to achieve competitive
advantages. This can be done through making similar products as to competitors so that
McDonald can attract potential customers.
3.2
Distribution channel is helpful to arrangements of products according to customers
convenience. McDonald wants to demonstrate distribution channel which helps to keep low cost
for convenience to attract customers. In this context, below are the elements through cited firm
can arrange distribution for customers convenience: Physical and online stores: McDonald can provide physical as well as online store to
customers (Yusuf, Sukati and Chin, 2014). In this context, it helps to customers that they
have various choices. Along with this, customers can easily access products through
online stores which save time. As resultant, it is very convenience to the customers. Based on different organization: On the other hand, McDonald can also arrange
products and services through different businesses. In this context, organization can use
different products and services in new branches so that at different places customers
easily access products and services (Allyson Dooley, C. Jones and Iverson, 2012).
 House to house selling: Cited firm can also make convenience to customers through
selling their products house to house. It is helpful to targeting female who are generally
not able to visit physical stores.
3.3
There are various pricing strategy through organization can develop their products and
services in new marketplace. In McDonald it is very crucial factor that demonstrate awareness of
customers regarding products and services. At starting level, when business introduced new
product they have to determine low price so that customers can easily attract towards the
operations of firm. Thus, they can use penetration pricing strategy so that potential customers
attract towards the chosen organization (Llauradó, Aceves-Martins and Giralt, 2015). Along with
this, company can attract customers to make attractive design of products and services in new

marketplace. Beside this, it is helpful to enhance marketing conditions of chosen organization
which make it distinctive in front of people from competitors.
3.4
For achieving objectives of the organization, McDonald requires following various
promotional activities. In this context, they can make attractive products so that they can enhance
market share and profits of the firm. Thus, below are the promotional activities they can use in
their business: Provides coupons: It is very helpful part of promotional activities (Cadwallader, Atwong
and Lebard, 2013). With the help of this, McDonald can provide various coupons to
customers when they are visiting first time to store. Cited firm can give coupons to
customers such as discounting and buy one get one, etc. Thus, they can promote their
new products and develop existing in new marketplace. Offer discount: Along with coupons, organization can also offer discount to customers
when the introduced new product in marketplace. It will assist to business, as they can
enhance sales of new products easily (Robertson and Kelly, 2013). Further, they make
discounting to provide products in bulk price so that customers can buy it easily. Thus,
cited firm can enhance their new operations in different places. Public relations: With the help of public relation, McDonald also increase their sales. In
this context, they can introduce new product and said to people for refers to new people.
Along with this, it also helpful to make high reputation of the organization in new
marketplace. Public relation can be done through making good relations with customers
and providing them better services than the competitors (D. Newton, J. Newton and T.
Ewing, 2013).
 Social sites: In today's time for promotion of the product social sites is the best for
development of products. This is because, nowadays every person using social sites and it
helps to make brand image of the company. In this context, cited firm can use Facebook,
Twitter and other media, etc.
3.5
Additional and extended marketing mix elements is an integral part of the services of
organization. It demonstrates blueprint of the design of new product and services of every

enterprises. In this context, below are the additional elements which considered in McDonald
business unit: People: People are the employees of cited firm who deliver effective products and
services to customers (Bodet, 2013). In this context, they perform various roles and
responsibilities which make healthier workplace of McDonald. Further, chosen business
provide safe and comfortable working environment so that they will be able to deliver
qualitative services in the organization. Physical evidence: It is another element in marketing mix which is essential part of
McDonald. It is not tangible element but it can be deliver through making best services
within the organization (Gordon, 2013). In respect to this, cited firm can offer table,
chairs, lighting and good food, etc. so that customers can satisfy with the operations of
the enterprise.
 Process: Service process is the way through organization deliver things towards the
customers. For example, McDonald is famous for giving quickly services in their stores.
In this context, organization can deliver products which is very important parameter to
deliver right things to customers as soon as possible (Morgan, 2015).
TASK 2
4.1
There are various segments such as age, income, demographic, geographic etc.
McDonald's is a renowned brand and operating its business globally. According to the segment
choice, needs get changed and company have to offer them such products which are likable by
individual, thing assists in increasing brand name of the organization and gives monitory benefits
to cited firm (Hwang, Lin and Wu, 2013). Geographic segment impact on the marketing mix
activity, corporation has to offer them products which are more demanding in such location.
Marketing mixes for the two different segments in consumer markets are discussed below:
Marketing Mix Ireland Africa
Product Irish people are much more
clam and cool behavioural
persons. They like to eat such
food which are simple and
Africa is the modern country,
people like non vegetarian
food a lot because of the
climate is too hot here, so meet

hygienic. In the Indian market,
McDonald's offers wide range
of vegetarian substance to
consumers (Joplin and et. al,
2003).
with the demand McDonald's
provide them Delicious non
veg hygienic food.
Place In this geographical location,
income level of persons are
average and less people prefer
to go on such branded outlets.
McDonald's has few physical
stores in Ayerland.
Africa is the advanced country,
people like to have quality
food. In Afracia there are
number of stores of
McDonald's.
Price Prices is depended upon the
competition level of the
market. If competition is high
than McDonald's increases its
products cost. Ayerland is the
small country, less competition
is there for the cited firm.
In Afracia, it has good
business so McDonald's adopts
cost plus pricing policy to get
higher returns (Kapferer,
2012).
Promotion In Irish market McDonald's
uses advertisement,
promotional programs to
market its products.
In Afracia, it implements
online marketing strategies to
enhance the brand name of the
organization.
4.2
Business to business (B2B) is differed from business to consumers (B2C). McDonald's is
working well in international and domestic market. It always analyses the needs and demands of
consumers and offer then such delicious food which they like most. It always pays attention on
needs and wants of service users and to attract them it offers them attractive discounts. KFC is
the biggest competitor brand of McDonald's.

In B2B marketing, corporation gather relevant information of various firm which resell
the products to end users. Their performance, business, profit, products, services analyses by the
firm But in B2C marketing technique, company pay focus on analysis needs and demands of
consumers so that it can serve better services (Hwang, Lin and Wu, 2013). This will help in
increasing sales of the business unit.
4.3
There is huge difference between international and domestic marketing. Both have to
follow different rules and norms to run business significantly (Hernandez, 2002).
Area Global marketing Domestic marketing
Political relationship Whenever organization deal in
international market, it has to
make connection with political
parties so that no critical
situation occurs.
There is no need to make
relationship with political
authorities. Because business
is operating within the limited
area.
Technological advancement In global marketing, firm has
benefit of knowing about the
latest trends and technologies.
It can use it for enhancing
performance of the
organization (Grönroos, 2004).
When company operates
business in domestic
boundaries so it become
difficult for the firm to adopt
such expense techniques. They
run business with existing
equipments.
Barriers In global marketing firm has to
face cultural, language,
legislation, tradition, currency
etc. barriers.
Here no barriers faced by he
company and it can run
bushiness smoothly.
CONCLUSION
From the above report it can be concluded that marketing elements is very essential
parameter which helpful to identified potential customers. In this context, chosen enterprise do it
through research, marketing strategy, planning and use various tactics. Furthermore, this report

summarizes that cited firm can target to the people through differentiate marketing strategy.
Moreover, organization can segment to market on the basis of demographic and geographic
segmentation for promote the products in new marketplace. In addition to this, various factors
affect to the marketing activities of the enterprise such as supply and demand, routine behaviour
and complex decision-making. Beside this, firm can position to the business which help to make
it distinct from the competitors. Along with this, organization can achieve competitive advantage
through various elements. In this context they can understand the competition of their products
and services, they can make public relations and cannibalize products of their firm. At last, it
summarizes additional elements of marketing mix which used by cited business for promoting
new products of company.

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