Marketing Principles: McDonald's Case Study and Analysis Report

This report provides a comprehensive analysis of marketing principles, using McDonald's as a case study to illustrate key concepts. It begins with an introduction to marketing principles and explores various elements of merchandising, evaluating the benefits and marketing costs associated with McDonald's. The report delves into macro and micro environmental factors influencing marketing decisions, suggests segmentation criteria, and examines targeting strategies. It assesses buyer behavior in different buying situations and proposes new positioning strategies. Furthermore, the report discusses developing competitive advantages, distribution strategies, pricing, promotion, and the marketing mix, including planning for different consumer segments. It also highlights the differences between marketing products and services and explores international and domestic marketing considerations. The report provides a detailed overview of marketing strategies, consumer behavior, and the application of marketing principles in a real-world context.

MARKETING AND
PRINCIPLES

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................3
TASK 1........................................................................................................................................3
1.1 Explanation of several elements in merchandising activity.............................................3
1.2 Evaluation of the benefits and marketing cost for McDonald. .......................................4
TASK 2........................................................................................................................................5
2.1 Determine several macro and micro biological science factors influencing marketing
decision...................................................................................................................................5
2.2 Suggest segmentation criteria to be used for products in various markets.......................5
2.3 Choose a targeting strategy for selected product or services............................................6
2.4 Assessment of buyers behavioral activities in different buying situations.......................6
2.5 Suggest new position for a chosen product or services....................................................7
TASK 3 .......................................................................................................................................7
3.1 Explanation of developing to prolong competitive advantage.........................................7
3.2 explanation of distribution for the convenient services to the customers........................7
3.3 Price set ups for the reflection of organizations objectives and marketing conditions.. . .8
3.4 Illustration of promoting activities integrated to attain marketing objectives..................8
3.5 Analyses of additional elements of marketing mix..........................................................8
TASK 4........................................................................................................................................9
4.1 Planning of marketing mix in two different segments in consumers markets..................9
4.2 illustrations of the differences in marketing products and services instead of consumers.
................................................................................................................................................9
4.3 Explanation of international and domestic marketing......................................................9
CONCLUSION.........................................................................................................................10
REFERENCES..........................................................................................................................10

INTRODUCTION
According to McDonald, marketing principles includes regulations and
implementations of all the plans, tactics, concepts, strategies, goals, resources according to
operate the marketing process. There are several generalizations and techniques in the
strategic marketing planning. Basically marketing or trading is a fundamental process for the
effective and efficient use of resources in order to satisfy customer needs , demands and attain
profits at the market place. In general marketing is a creation and delivery of goods and
services. It is an art of knowing the customer requirements and providing products and
services with their selection and tastes preferences (Wymer, 2011). The basic aim of trading is
maximizing the profits by increasing selling process and making more number of customers.
There are four variables in relation with the market. These are goods, geographical area.
Publicity, cost. The goods determines the overall products and services for the selling and
buying purpose. Place is a location, area, origin with respect to the distribution channels,
delivery services. Price determines the cost of manufacturing the items, product cost,
production cost, total profitable cost and overall costs related with the expenses and revenue
generation. Promotion is a concept of advertising and promoting the product through different
sources like television, interment, newspapers, adds, blogs, social media etc. this a an above
brief introduction about marketing generalizations.
TASK 1
1.1 Explanation of several elements in merchandising activity.
According to McDonald, the sole important determinants of marketing are the trade
good, cost, publicity and geographical area or location. The overall or total concept of the
marketing is completely depends upon these four variables or determinants. These are
explained as below (Quazi, 2013).
Products or commodity goods- basically products are manufactured for the selling
and buying purpose according to the consumption or utility. There are wide variety of
products available and manufactured in the market according to the consumer needs and
demands. The products are design according to the quality, costs, latest trends, selection,
demand and supply.
Price- the prices are determined with respect to the distribution of various types of
products and services according the quality and brands. For branded items the prices are
higher and for the high and low quality products the prices are tagged accordingly with

respect to the standards of quality. The prices are different for several varieties of products
like food stuffs, clothing, jewelry, footwear, accessories, electronic items and many more.
Promotion- promotion is a concept of advertising strategy to engage and diversifying
the marketing business to a greater extent. It is carried out by the help of various networking
channels like description of the products by means of television, newspaper, telephones, social
media and online shopping platform.
Location or place- location is geographical area or place of selling products. It
determines the export and import business of the products. There are different products
according to the region, locality, country, state. It is process of distribution and delivery of
various products and services according to a location. These are the above essential marketing
elements or determiners.
1.2 Evaluation of the benefits and marketing cost for McDonald
According to McDonald, benefits are related with various reasons to overcome
costumer requirements. The profits are made by the valuable and good brand of a company
and elaborated market study in order to create the correct merchandising combine strategy.
McDonald is the biggest global business enterprise corporation related with fast food items
like hamburgers, soft drinks, ice creams, French fries, several variety of beverages, salads and
breakfast items. It serves more than 650 million consumers on daily basis. The revenue
growth of restaurant increases up-to more than 25 % in the year 2007 with 22 million dollars
and more than 8 % development in processing revenue to more than 3 million dollars. The
total sales and revenue generation is owned by various 54 billion dollar franchised restaurants.
The benefits increases up-to more than 5 % over the year 2008. The overall revenue of the
increase at the rate of 4% and profits at the rate of 10%. It is a very vast industry and spread
across the world through of various branches of McDonald. The most important aspect of
profits and revenue generation is the demands of the various food products associated with the
restaurant. There is great demand of various types of burgers through its specialty and
exclusive prices among the people. These are the above various aspects and profits associated
with the McDonald (Lefebvre, 2012).

TASK 2
2.1 Determine several macro and micro biological science factors influencing marketing
decision.
Marketing environment consists of various external and internal factors associated
with the industrial surrounding in order to improve and keep successful proceedings and
human relationship with the industry trading consumers. The micro includes the minor factors
related with the company and macro is related with the major factors associated with an
industrial environment.
MICRO FACTORS
It includes the industry, suppliers, merchandising mediators, consumers, challengers
and people. These factors are associated with the company and incorporated the consumers,
market intermediaries, people, sellers, buyers with respect to the departments of assets and
improvement, commercial enterprise, human-like assets, buying, trading operations and
accountancy.
MACRO FACTORS
It consists of all the economic factors, technological factors, governmental factors,
cultural factors and societal and legal factors. These factors are not controlled by the
company. They are related with the natural environmental factors with respect to the politics,
demography and surroundings of the market. They are the external factors related with the
industry. These are the above factors related with external and internal factors.
2.2 Suggest segmentation criteria to be used for products in various markets.
Segmentation is process of distinction of various types of customers into groups,
subdivision, in the market according to different portions or groups. The foremost important
concept of sectioning is to collect the identical consumers with same selections or choices
according to the client’s mental attitude. The sameness of attitude and choices is known as
segment or section. In this process the sections are grouping according to the same
requirements, demands and expectations of the customers to a consistent marketplace
environment. The motto is to make the marketing mix in which the aspirations of customers
are same. It is the transformation or modification of assorted to consistent market by making
absolute target market. The process of sectioning is a differentiation of overall market part of
products and services in aggregating individuals according to the identical necessities.
Target merchandising price and segmentation can lead to growing of products or
services in the marketplace. Slender partition can restraint the growth of wide-band interests.

The importance of segmentation is to maximize the merchandising activities. It provides the
effectiveness in the merchandising environment. The customer satisfaction is created in the
broader prospectus. It provides the commercialism resource allocation. It creates savings and
helpful in the budgeting of markets for the buyers and the suppliers. It gives proper judgments
of different products available for the customer. It helps in the estimation of gross sales in the
marketplace. It provides different methods in order to compete with the marketplace. It helps
in executing company's aims and objectives. These are the different methods of positioning,
point of reference and sectioning according to the marketing plan of action (Lefebvre, 2011).
2.3 Choose a targeting strategy for selected product or services.
In order to develop a business, marketing strategy is very essential. Without making
any implementations or plan of action, the business cannot be develop further and it is very
difficult to create an efficient and effective business environment. The success of a product is
totally dependent on the clear-cut vision and aims. The strategy should be according to
prioritize the demands of customers and keep the permanent bondings with them. The focus
should be on targeting customers by providing complete satisfaction related with the products
and services in order to make the successful strategic implementations. There are several steps
of making strategies for the products.
FEED BACK- Feedback from the customers is very important in order to make
changes in the product and services with the help of consumer’s directions and advice. It
provide benefits to both the consumers and marketers.
PRODUCT QUALITY- It is a process of providing the quality standard products for
the complete satisfaction in order to pay amounts and investing in different services.
PRICE- The distribution of prices are according to the products quality and brands. It
is done by tagging the good and bad quality products with respect to the prices of the item
sold. These are the above planning consideration in order to target customers.
2.4 Assessment of buyer’s behavioral activities in different buying situations.
There are several factors which affects the buyer behaviors in different types of buying
situations.
Marketing determinants- it includes products, price, place and promotion. According
to these factors there is great of fluctuations in the buyer behavior.
Other factors- This includes technological, legal, societal and economical and
environmental factors that effects buyer behavior (Armstrong, 2010).

Traits of buyer according to the judgment making- there are several physiological,
societal, cultural, economic and personnel traits. The decision level is based on problems
identification through buying the products. Informative decision and alternate evaluation
steps. Other decisions are related with the purchasing power and before buying products.
Other decisions – they are based on the price of the various products. The choice and
selection according to the brand and product. Time period of the buying and amount paid to
the seller or manufacturing. The most important part of buying behavior is the negotiation
skills or bargaining power of the supplier and buyer. These are above buying behavior in
different buying situations.
2.5 Suggest new position for a chosen product or services.
Strategic positioning is process of envisages several processes with respect to the
challengers. Or carried out the same process in a distinct style or different concept or method.
The strategy of McDonald hamburger is focuses on youth especially young men. It is based
on the health state of old men. The positioning is based on low cost or differentiation. The
industry made cost friendly restaurant of blistering nutrient business order to satisfy the
families. It provides the low cost meals to the customers in order to make more revenue and
profits. The time management should be well adopted by all the McDonald restaurants in
order to do serving in a short span of time frames. There are wide varieties of food stuffs
available with reasonable prices in order to meet customer needs and demands. The adoption
of technology for billing and menu selection techniques are used to provide accurate and exact
figures of charging money from customers. These are the new implementing schemes for
positioning (Wood, 2011).
TASK 3
3.1 Explanation of developing to prolong competitive advantage
There are following steps in order to prolong sustainable competitive advantage.
Brand loyalty establishment- It aims at focusing on demand and fulfilling
consumers’ expectations by offering quality service products and building strong relations
with them. The intentions of customers are always switching to the best brands and they do
not bothering about the high or low prices instead of focus on only the quality standardized
products in order to gain full satisfaction.
Patent and trademarks- this is a best method for security and safety issues related
with products. The customers are always searching for the patented products. This tells about
the guarantee and originality of the product.

Innovation- this is carried out by keeping the products fresh and existing. Consumes
generally demanding hi-graded and existing products (Caemmerer, 2011).
Long term contract and offers- the process is all about making a permanent
customer. This can be done by providing certain benefits, offers and discounts to the
customers in of season or festival time. It helps to the suppliers for making long term business
with the consumers. These are the above methods of developing prolong competitive
advantage.
3.2 Explanation of distribution for the convenient services to the customers
There are several methods of distribution in order to handle inconvenient situation
provided to the customers.
Product description- this is a basic important part of products. The customers must
be provided with the actual descriptive products written on the menu, brochure or several
varieties of products.
Delivery services- the delivery services should be on time according to the mentioned
order details. There is a less value for the late delivery services and inaccurate products.
Quality standards- the quality standard should be maintained according to the several
variety of products. The consumers should be provided with the best quality services.
Exchange and refund process- this is carried out by product exchanging and
refunding of non-selections by the customers. It should be take place according to the dates,
prices and given time period. These re above distribution for the convenient services to the
customers.
3.3 Price set ups for the reflection of organizations objectives and marketing conditions.
Prices plays a very important role in marketplace. They provide the basic frame work
of selecting products. The main focus or considerations of the customers and marketers are
completely depends upon the prices. The marketer are searching for the best deals by
providing high prices and customers are searching for the low prices in order to attain bets
offers or deals. For marketers the price considerations are high and for customers the price
considerations are low.
The price arrangements should be based on brands, quality and uniqueness. For the
high standard quality products the prices are tagged as high. For low quality products the
prices are low and for the branded products the prices of the products are very exclusive and
high. There are several products which are in great demand. The marketers must be looking

for a greater selling production. In order to make profits the prices of these products should
remain as reasonable for making more no of customers.
3.4 illustration of promoting activities integrated to attain marketing objectives.
Promotional activities plays a vital role attaining marketing goals and profits.
Basically it is helpful for the selling of products and services by engaging more no of
customers. It is considered with the brand name or logo of the product. It emphasize on
various products and services to create the attention towards the brands and throws out light
towards the product. Advertising is carried out by the help of various networking channels
like description of the products by means of television, newspaper, telephones, social media
and online shopping platform (Bidmeshk, 2012).
The advertising strategy is always compares with the correct audience with the exact
message. The basic motto or theme of promotional activities is the reference point or marking
the gathering, communication strategy and media scheme. The most important concept of
promotional activities is to provide awareness among the customers and public about the
various products and services in order to engage them in the buying process. These are above
methods advertising in order to attain marketing goals and objectives.
3.5 Analyses of additional elements of marketing mix
The overall or total concept of the marketing is completely depends upon the variables
or determinants. These are explained as below.
Profits – the profit factor is a basic important factor in the marketing environment.
Profits are attained by means of great demand of products and services. It can be achieved by
diversifying the market business. The scope of market is increases with the help of various
kinds of products and services according g to the customer needs and demand. By this the
profits can be achieved to wider prospectus.
Performance- it is important to run a business effectively by an excellent performance
of selling and manufacturing products and services.
Plan- planning is done by what, when, how and when to adopt marketing strategies for
the development purpose. These are the above additional marketing mix elements.
TASK 4
4.1 Planning of marketing mix in two different segments in consumers markets.
Following are the different segments of marketing mix

The mixer grinder- the mixer grinder which consisting less features or typically used
only for the grinding purpose has been easily available at each and every small electronic
stores. On the other hand the mixer grinder of current and latest technological multiple
features of grinding, juices, cutter and dough maker is only available at the branded
showrooms and big retail electronic markets. This is an example of marketing mix. (Rundle-
Thiele, 2011).
the Water purifier machines like aqua-guard, Kent purifier etc. are treated bad water
against the potable water which fits for drinking purpose by removing all the impurities and
dust according to the latest ultraviolet technology and chlorination. This is an example of
marketing mix.
4.2 Illustrations of the differences in marketing products and services instead of consumers.
The Trading products and services have many sameness and distinctions. Several
differences and sameness are as follows:-
Loyalty- the product and service loyalty is totally related the marketers. Both the
product and service is delivered by the marketers. The differences are according to the quality
and standards of products and services (Randall, 2011).
Delivery- the products are ready on time for the delivery purpose with the complete
features but the delivery of services are not provided on due date.
Brand – the brand is given only to the products but it is not provide to the services
made. The satisfaction level of the customers are only to the products but not to the services.
Trust- the trust level according to customers are to the products but not on services
because of inconvenience of the services. These are the above illustrations according to the
sameness and distinctions of products and services.
4.3 Explanation of international and domestic marketing
International marketing is a process of trading across globally or worldwide. It is
traditional type of marketing with existing and modern methods of concepts and ideas. There
is a wide scope of this type of trading. The export and import business is carried out with this
type of trading. There are wide variety of products and services available in this. It diversifies
its trading opportunities throughout the world. The online mode of marketing is related with
this type of trading. There are several chances to start a business in outside the country with
this type of trade (Jaworski, 2014).
Domestic marketing is carried out within a nation only. It is not related with any type
of export import activities. There is a limited scope of diversifying the business opportunities.

The products and services are in limited amount only related with particular state, nation or
cultural aspect. These are the above considerations with respect to international and domestic
trade.
CONCLUSION
From the above discussion about the marketing principles. It can be concluded that
marketing is a creation and delivery of goods and services. There are several generalizations
and techniques in the strategic marketing planning. Basically marketing or trading is a
fundamental process for the effective and efficient use of resources in order to satisfy
customer needs , demands and attain profits at the market place. It is an art of knowing the
customer requirements and providing products and services with their selection and tastes
preferences. These are above findings of the marketing.

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