Marketing Report: Analyzing McDonald's Strategies and Principles

This report offers a comprehensive analysis of McDonald's marketing principles, examining various aspects of their strategies. It begins by introducing core marketing concepts and then delves into the elements of the marketing process, including identifying opportunities, selecting target markets, developing strategies, and managing the marketing mix. The report explores the benefits and costs of a marketing approach for McDonald's, emphasizing customer-centricity and competitive advantage. It then investigates the impact of micro and macro environmental factors on marketing decisions, including customer behavior, employee contributions, supplier relationships, and competitor analysis. The report also examines McDonald's segmentation criteria, targeting strategies, and the influence of consumer behavior on marketing activities, with an emphasis on different buying behaviors and new product positioning. Finally, the report discusses product development to sustain competitive advantage and distribution methods for customer convenience, highlighting the importance of adapting to market dynamics and consumer preferences.

MARKETING PRINCIPLES

INTRODUCTION
Marketing is the process in the organization to promote a brand and company and to
increases the success rate of the products produce by the business entity to identifying the
needs and wants of the consumers (Armstrong and et. al., 2014). This function of the
organization is related to from of the communication between the customer and the company
for the purpose of gaining the profit and consumer wants to purchase the products for satisfy
his needs to use the products. This the main concept of the marketing is to communicate the
right message to the right person so that they can purchase right product according their
needs. The marketing process involves the many type of concept of the buying behaviour,
segmentation factors and targeting of the customers. Its use for the better understand the
principles of the marketing. This report based on McDonald's marketing principles are used
for identification of the customer needs and wants, determine the segmentation tools and
strategy to use in the targeting the new customers. The principle of marketing is based on
various aspects are products, price, place and promotion. McDonald's company provide the
many varieties of fast food like burger, pizza, drinks and many small meals. The main
purpose of the company to make market reputation to provide the best quality of the fast
food.
TASK 1
1.1 Different kinds of elements of marketing process
Marketing- It can be termed as one of the main functions in company where the
seller and producer make products as per the demand and choices of customers and timely
deliver the same to ultimate clients (Sheth and Sisodia, 2015). It is process related to the
social process to determine he needs and wants of the consumers and exchanging products
and services on the basis of the client’s needs.
Marketing process-
Identifying marketing opportunity- Researcher find the opportunity in the market to
analysing the current and future market trends, new resources, capability, internal and
external factors of the environment.
Select the market target- The next step of the marketing process involve the
company need to identify the customers and target the customers by the survey of the

different markets. McDonald's choose the different age and choice of the customers for their
products.
Marketing strategy- After target the customers that the business entity to select the
strategy applying by the best alternative (Nwankwo and Gbadamosi, 2010). This company
focus on the different marketing strategies to influence the large number of the customers in
the marketplace to target the right market.
Marketing mix decision- Organization determines the marketing mix elements for
products and services. It includes the products, price, place and promotion elements as well as
company tries to sale their goods on profitable price and get higher profit.
Control- At the end step of the marketing process it depend on the implementation of
the right strategy and the controlling the strategy in a manner.
1.2 Benefits and costs of a marketing for McDonald's
An organization can develop the new products based on other products befits and
costs in the market to use the oriented approach. The business entity is depend on the
products oriented approach is based on hat a company things for the customer needs and they
making product as per customer choice and the decision there no involvement of the buyers.
On the other hand the marketing approach is used for the success of the organization (Wang
and Pizam, 2011). This approach is based on customer demand and needs for the produce
products by the company according to the customer preferences. There are various benefits of
marketing approach-
Customer centric- McDonald’s give the attention to those customers they take their
customer as a priority bases and fulfil the needs of the customers.
Addressing demand- Company perform and react on the customer demand.
Make customer benefit- This approach help to the organization to target the large
number of the customer and they create value for loyal customer.
Reasonably competitive advantage- Company develop the product as per the demand
of the clients that the business try to create the extra beneficial products and maintain the
large number of buyer in the competitive market.

TASK 2
2.1 Effect of macro and micro environmental factors on marketing decisions
Micro-environment- These elements are includes by the McDonald's business environment-
Customers- These are main factors of the company effect on the business and attract
and retain of the buyers by providing best quality products.
Employees- The employees of the company play an important role in the success of
the enterprise and give the best services to the customers by its contributing its efforts
(Abdullah and Ismail Ahmad, 2010).
Suppliers- This factor are important for the company to supply the goods and create a
chain to achieve the competitive advantage and provide the products to end users.
Competitors- McDonald's have many competitors in the market and its use the
different type of marketing strategies to achieve the competitive advantage.
Macro environment- This factors determine the threats and opportunity of the business
entity.
Demographic factor- This factors are impact on the different segments they are
involve country region, education level, norms, culture, age difference and occupation.
Economic factors- This factors are based on company production and consumer
decision. If there any changes in the prices that it directly affect the price of the product.
Political factors- McDonald's always follow the government rules of the marketing
process because this factor of the legal development is related to the organization and the
market.
2.2 Segmentation criteria used for different products in distinct markets
McDonald's is a big organization in the international market and its very good brand
image and the products of the company is liked by the customers. McDonald's whole market
is dividing into different segments to use the following segmentation types-
Geographical variables- Every business entity can segment their market in the market
segment they include country, city, states and local markets (Gordon, 2013). McDonald's
focuses of target population the person who are interested in buying their products.

Demographic variable- McDonald's can easily segment its market on the basis of the
age, status, education and income on the people. The company sell their product on the basis
of demographic variable and they convince people according their income status.
Chorographic variable- McDonald's conduct market survey for understanding the
nature of the consumer and they can segment their market on the basis of buyer’s feelings,
thoughts, interest, social status, life style, class, personality etc.
Behavioural variable- This segment is totally based on the buyer’s behaviour in
which how a person can behave, react and give response at the time of purchasing are
included.
2.3 Targeting strategy for a selected product
Many companies use various types of targeting strategies to target the market (Von
der Heidt and Quazi, 2013). Targeting strategy that help in the organization in selection the
one or more segments depend on the available resources and capabilities of the company.
McDonald's it is very important to choose the strategies for the targeting as the success of the
marketing process. The company plan depend on the fact to how well the company to select
the market segment. Product positioning and market segmentation are interrelated with the
each other and the company present the products as per the segmentation of the market. The
company spend huge amount of rupee to promote their product and making awareness among
the customers. Huge sale introduce to the huge profit and the profit is responsible for the
growth in organisation. Under this process the company improved the customer satisfaction
and loyalty and the company follow the mass marketing strategy.
2.4 Effect of consumer behaviour on the marketing activities undertaken in distinct buying
situations
Buyer behaviour can be termed as act of customer at the time of making purchase
decision about a product of firm. It is a mental and emotional process in which the buyer
behaviour of the consumers is observed during searching the product, purchasing and
consumption. The involvement of the buyers behaviours is depend on tangible and intangible
value of the products. There are some kind of buying behaviour of the consumer-
Complex buying behaviour- Consumer buying a product want some expertise advice
for purchasing a product. In this situation the clients are involved and spend the time in this

process (Dann, 2010). McDonald's try understand the different behaviour of the customer and
create a good relationship.
Variety seeking behaviour- Some customer buy the common products they
involvement and spend low time in the taking decision. They have same option of the same
products so they check the variety of the products (Lefebvre, 2012). McDonald's have many
products with different quality and taste and they attract the customers for the products and
the mostly customers are attracted by the prices and quality.
Dissonance buying behaviour- At the time of buying some products the customers
have high interest and involvement with the product but these are not available in large
number of variety.
2.5 New positioning strategy for a selected product/service
A company use the strategy for get the high position and set the image into the mind
of the customer. The positioning of a product means is to present the product in the best
possible way to different targeted customers. McDonald's is going to make a healthy and
tasty food especially for the kids and old people (Gordon, 2013). The position of the products
should be basis on the health issues not on the price or its competitor’s basis. Product
positioning and market segmentation are related with each other and the organisation present
the product as per the market segmentation. In different positioning strategy create a message
regarding its products and deliver the message by the different medium like television,
online, magazines etc. and achieve the good outcome, low price and emotional support.
McDonald's create a good position in the market with the quality of the food and its services
provide to the customer.
TASK 3
3.1 Developing product to sustain competitive advantage
Company developed a advantage in the market to improve the quality of products.
McDonald's use the various strategy and approach to gain the competitive advantage in the
market. The different idea on introduction the products development and the organization get
the new idea with the help of the meetings, brainstorming techniques. Organization choose
the idea to offer the healthy foods and drinks to the customers (Dollatabady, Amiri and
Bidmeshk, 2012). The development of the concept involves the how the product could be

develop company image in the market. McDonald's analysis the business profile to generate
new products for gaining the competitive advantage. Tasting the product in the new market as
well as test the new market with launching the new product. Implementation of the
techniques in the process of the new producing products in the market. After technical
implementation of the strategies and the approaches to set the pricing of the products.
3.2 Arrangement of distribution for offerings customer convenience
Organisations use various distribution method to provide service to the customers.
This strategy enables the company to make the best quality product available to the end
consumer (Sandıkçı, 2011). McDonald's is going to make and launch a healthy products and
drink so that the company must sure about the place where most of its consumers are present.
The organization is targeting the kids and young adults than the places like malls, cafeterias
are best places for the products. This company also use the intensive distribution strategy the
customer will buy the products if it is highly available in the market. The company us the
various type of distribution channels to provide the products to their customers. Company
first of all its produce its products and services which are sell to the customer directly. The
organization development the multi-format elements to provide the right products at the right
place to the right consumer with the friendly behaviour by the employees. There are different
types of store in the different malls. The company use the right place for the easily
convenience by the large number of the customers. Company focus on the big malls to near
by the large society of the people and easily convenience by the all age of the customers.
3.3 Prices are impact on organisation’s objectives and market conditions
Company uses different type of pricing strategy for decide the prices of the products.
This strategy are the different type are given below-
Penetration pricing- Company use this strategy the price low than its competitors to
easily capture the market. Thus the organization capture the market they try to create the
aware about its products.
Price skimming- Many companies keep the price of the products is very high. These
prices falls according to the demand and supply chain (Wood, 2012). the prices of the
products is reducing by the demand by the customers.

Premium pricing- In this situation the price is based on the quality of the product.
This price is mainly proves to be good for organization if it wants to enter in the new market.
Economy prices- The company produce the quality of the products are low. This
situation is good when the product is new at the market place.
McDonald's follow the pricing according to the market situation and determine the
competitors pricing (Lefebvre, 2011). The product quality is high and the cost of products is
low other than the competitors thus the organization controlling the cost of the raw material,
labour cost and other some inputs cost.
3.4 Promotional activity is integrated to achieve marketing objectives
Promotions is one of the most important element of marketing mix and different
organisation use different activities of promoting their product or service in the market. The
organization marketing department wants to achieve its objective related to the marketing it
should related with the promotional activities. The main aim of these activities to make the
consumers aware of the new products going launch soon in the market. The organization
have spent a lot of money in these activities to promote their brand. McDonald's us the
following way to promote their marketing objectives-
Advertising- This tool a part of the promotion mix to use the many companies to give
the awareness about the new products in the market. Advertising of the products offered by
McDonald's is very important as it can communicate the message of the organization to the
customers. Its use the Television, radio, newspaper and magazine.
Publicity- This element to promote a products is very easy that the customers
purchase a products and satisfy the products quality to give the information to the others as
well as create a good image of the company create the new customers.
3.5 New elements of the extended marketing mix
In the marketing mix there are some additional elements like People, Process and
Physical Evidence.
People- This factors of the marketing mix represent behaviour of the organization
(Wymer, 2011). The workers of the McDonald's should be well dressed and its responsibility
of the company to provide the training for the development of the personality and
communication skills.

Process- This element includes the manufacturing and production activities of the
company. For McDonald's delivery the products, the production of the finished products all
comes under this element (Donovan, 2011). Marketing management of company should
focus on the effectiveness of this process as well as on issues in the production process. Thus,
the marketing message given by the company should not reach the desire customers.
Physical evidence- It includes the services delivery by the employees, provide the
facilities by the worker to the customer. Services are delivered by the friendly and quick way.
The physical appearance of store should be clean, safe and healthy and the facilities are
dynamic and modern. These are the service which are intangible to customers like ambience
of the bank branch and the premises. If handled the properly of the all physical evidence is
also works as an end product.
TASK 4
4.1 Marketing mix in different customers segments.
There is some major aspect included in marketing mix of McDonald's like place,
product, price and promotion. The organization segment is based on market type, consumer
behaviour, demographical, geographical, physiography etc. This company operating its
business in the current business environment. The products for the UK have some difference
because the climate of the prices. Marketing mix for the different segment in customer market
for the new products of the company-
Marketing mix for demographical- The different age factor of this element is considered are
as follows-
 Product- The company product includes the healthy foods and drinks, the products
involved the low sugar and low calories.
 Price- The pricing strategy policy could be used at the initial level according to the
products life cycle (Brunswick, 2014).
 Place- The many customer can get the products are easily available in the malls.
 Promotion- Use the many advertising tools such as television, newspapers etc.
Marketing mix for Psycho-graphic- It includes the different life style factors in considered
on this marketing mix factor.
 Product- The product with best quality and not affected on the kids health.

 Price- This element based on the pricing strategy as the consumers of this segment
will have high spending power on the products.
 Promotion- Its use the magazines for promote their products in the market.
4.2 Marketing products and services for business and customers
Marketing product and service are key part for business organisation as well as
customers in different way. These product and services differ for customers and related to
level of need recognition, level of influence and level of decision making. Services are also
plays different role for business (Brennan and Binney, 2010). Service purchase id depended
on personal references, reputation, facilities of the service provider. The number of the
customer in the market is always same. The McDonald's company is looking for the business
buyers then it has to keep the new sales force are updated from the new information of the
industry such as numbers of the competitors with the quality of the products. Product price of
products of Subway is higher than McDonald's. All the competitors target the same customers
in the different market.
4.3 International marketing different from domestic marketing.
Organization know the difference in the marketing products domestically and
internationally are given below-
Scope- International market have the large scope than the domestic market.
Profit- The creating the high profit by the international market than the domestic
market.
Political relation- The domestic market has nothing to do for create the new political
relation but the international marketing to create the good relationship with the different
countries.
The marketing the product to across the boundaries McDonald's also identifying the taste,
culture of the customer in the marketing at the international level (Reijonen, 2010). The
organization needs to research on the different taste and needs of the customer. The political,
economic, social conditions in the international market are differ from the domestic market.
The company face the new challenges in the international market. The different nature of the
international customer and purchasing decision the pattern of the totally different form the
domestic customers. In the international market have different culture and regions also play

the important role in the market that a company promote the products in the outside of the
national boundaries.
CONCLUSION
On the basis of this report are concluded that the marketing principles play vital role
in organisations performance and the total operation of an industry is based on these
principles. Marketing is explained as the tool of providing service and product to the potential
buyers and customers. The company follow the marketing principle use in the identifying the
elements of the market related to the company functions. Identify the Micro and macro
environment factors that effect on the business process and principle of the marketing. It’s
also determine the segments of the market and targeting strategy for target the new
customers. In this report identify the different buyer behaviour and the products are develop a
competitive advantage in the market. For fulfilling the needs and demand of the consumer the
company should produce on the basis of marketing orientation approach. There are many
approach the organisations conduct a marketing survey for know about the needs and
preferences of the customers and the new market trend. Organisation should perform in
political and legal environment just to reduce complexity. The firm needs to do market
segment on the basis of internal and external environmental factors.