Marketing Principles Report: McDonald's Marketing Mix and Strategies

This report delves into the marketing principles applied by McDonald's, examining various elements of its marketing process, including research, strategy, planning, and tactics. It evaluates the benefits and costs of a marketing orientation, emphasizing customer satisfaction and long-term profitability. The report analyzes micro and macro environmental factors affecting McDonald's, such as suppliers, customers, political, economic, social, and technological influences. It proposes segmentation criteria based on demographic, psychographic, and behavioral factors, and recommends a targeting strategy. Furthermore, it explores how buyer behavior, including complex buying, variety-seeking, and need recognition, impacts McDonald's marketing activities. The report also suggests a new positioning strategy for new products and services. Additional topics include product development for competitive advantage, distribution arrangements, pricing strategies, promotional activities, and the application of the marketing mix. Finally, the report recommends marketing mix strategies for different market segments and highlights the differences between B2B and B2C marketing, providing a comprehensive overview of McDonald's marketing practices.

MARKETING
PRINCIPLES

Table of Contents
INTRODUCTION...........................................................................................................................................2
TASK 1 .........................................................................................................................................................3
1.1 Elements of marketing process..........................................................................................................3
1.2 Evaluate the benefits and cost of marketing orientation...................................................................3
2.1 Micro and macro environmental factors...........................................................................................4
2.2 Propose segmentation criteria...........................................................................................................5
2.3 Choose targeting strategy..................................................................................................................5
2.4 Buyer behavior affects marketing activities in different situation.....................................................5
2.5 Propose new positioning strategy for new product/services.............................................................6
3.1 How product/services are developing to sustain competitive advantage ........................................6
3.2 Explain distribution arrange for customer convenience....................................................................7
3.3 How price set to reflect an organization objectives and market conditions......................................7
3.4 Promotional activity to achieve marketing objectives.......................................................................7
3.5 Additional marketing mix for McDonald............................................................................................8
TASK 2..........................................................................................................................................................8
4.1 Recommend marketing mix for two different segments...................................................................8
4.2 Difference in marketing products and services to B2B and B2C........................................................9
CONCLUSION.............................................................................................................................................10

REFERENCE................................................................................................................................................10

INTRODUCTION
Marketing principles are the fundamental tools which helps in achieving desired
outcomes of the business. It includes various methods through which every business perform
distinctive activities to attract potential customers (Kubacki, Rundle-Thiele and Buyucek, 2015).
The present report is based on McDonald which provides food products in different parts of the
world. It covers various elements of marketing process which is followed by the cited firm.
Furthermore, it explains about benefits of marketing orientation and cost element of the business.
Moreover, it covers macro and micro environmental factors which affects the business
operations. In addition to this, it covers arrangement of distribution facility at workplace which
can be convenience to every customer. Besides this, report analysis additional elements of
marketing mix for the chosen enterprise. At last, it covers plan and recommend mixes for the two
different segments in consumer markets. In respect to this, it explains difference between
international and domestic marketing strategy.
TASK 1
1.1 Elements of marketing process
Marketing is known as the process in which different ways can be find out for fulfilling
the needs of customer and bring those products in market in order to satisfy needs. In addition to
this, it can be stated that there are different types of action and activities that promotes and sales
to products and services through advertisement. It makes relationship in business and customer
through creating communication, delivering and exchange offers. As per the American
Marketing Association, marketing is the activity, set of institution and process which creating
effective communication, delivering and exchange of products or services with customers.
Marketing of the McDonald considered various activities which helps to achieve
competitive advantages. In this context, includes product design, pricing strategies and
advertising (Strauss, 2016). Theses aspects can be done by process of marketing which includes
various elements. Hence, it helpful to achieve success of the cited firm. In respect to this, below
are the elements considered in marketing process of cited firm:
 Research: In order to achieve competitive advantage, McDonald want to
introduce new product in marketplace. In this context, first thing that can be done

by the business is research. In this, they identified actual needs and requirements
of the market. In addition to this, company find that what thing is the best for
achieve targets of the organization (Lefebvre, 2013).
 Strategy: Once McDonald find their data, they can make strategy for standing
product in marketplace. It will help to beat with competitors and make success in
the market. After research, the business design about the strategies which assist
to achieve goals and mission.
 Planning: After determining strategy, cited firm can plan for development of
product. It includes sales forecasting, financial planning and communication
strategy which defines how to achieve business goals. It also tracks with time to
time so that organization cannot fail to achieve business targets (Gordon, 2013).
 Tactics: At last element, organization determine where planning is to be
implement and what circumstances would be taken. It will aid to McDonald as
they easily compete with the competitors and attract potential customers.
There are certain pre-business philosophies explains under here:
 Sale oriented philosophies: In sale orientation different tools and techniques which can
be used in order to enhance sale. There are different tools which McDonald can use for
increasing sale such as discount, free website banner and buy one get one free etc.
 Product orientation philosophies: In product orientation that if you offer a superior
product or services, then customer will prefer to buy McDonald product without thinking
of any discount offer.
1.2 Evaluate the benefits and cost of marketing orientation.
Marketing orientation
Marketing orientation is a model through every business can focus on delivering products
design according to customers’ requirements. It helps to complete their needs, wants and desires
through offering them effective product and services. McDonald conduct market research
through they can satisfy customers’ needs which is main motive of their organization. It helps to

them to make better position in the market and enhance brand value of their products (Tournois
and Aoun, 2012).
Benefits and cost marketing orientation
Marketing orientation helps to attract customers easily and it make focus on customers’
needs. This means it assist to McDonald that they can match products with customers’ needs and
satisfy them easily. In addition to this, it is beneficial to them as they can reduce their expenses
which increase their cost. With the help of marketing orientation, enterprise concentrate on
customers’ so that they no need to negotiate customers. All these aspects help to them to make
long-term profitability in the business. Thus, they can occur more profits for their firm which
helps to reach for the vision of the company (Walker, 2015.).
2.1 Micro and macro environmental factors
There are two types of environmental factors which affects to the business such as micro
and macro. Micro factors create impact on the organization within the firm and macro factors
affects to the enterprise outside the business. In term of Micro factors, below are the elements
includes which create impact on the McDonalds operations: Suppliers: Suppliers have power to control success of the business because they provide
raw-material to McDonald. Thus, the cited firm need to make relations with suppliers so
that they can get raw-material time to time (Morgan, 2015).
 Customers: Ultimate goals of the business is to satisfy customers’ needs and
requirements. In this context, McDonald have direct impact towards the business
operations. This is because, when customers satisfying they buy products and services
again and again.
On the other hand, below are the macro factors which affects to the business operations: Political factors: Every country has government who make certain rules and
regulation regarding tax rates (Bryant, Courtney and Lefebvre, 2014). If government
increase tax rates McDonald need to pay more taxes. Similarly, if government

decrease their tax rates cited firm pay less taxes. As resultant, it creates directly
impact on profits of the firm. Economic factors: Economic factors includes interest rates, which create major
impact on the business. This factors generate major influence on the production and
decisions of the McDonald. Social factors: Different region has distinct culture that effect to McDonald
environment. In this context, cited firm has to make products which not harmful for
society (Pauwels, Erguncu and Yildirim, 2012). In addition to this, they need to make
products to keep customers perception towards the products. If they not follow
culture it creates negative impact on the business.
 Technological factors: McDonald need to use advance technological factors so that
they can easily attract customers. Upgrade technology help to reduce cost of expenses
towards the business (da Silva and Mazzon, 2016).
2.2 Propose segmentation criteria
Segmentation: Segmentation is known as the process of dividing a large unit into
different small units which have some related characteristics. In other words, it can be stated that
market segmentation is determined as the process which divides in consumer or enterprise
market which consistes in existing and potential customers based on some same characteristics.
Market segmentation is a process through organization can divide whole market in
various sub-parts. McDonald can divide their market in term of demographic, psycho graphic,
behavioral and geographic. Cited firm wants to introduced their new product as Manchurian in
Australia market. In respect to this, they can use demographic and behavioral segment which as
follows:
 Demographic segmentation: In this segmentation, McDonald segment Australian
market on the basis of age group. This is because, they mainly attract customers who are
college students and young generation (Borst, 2014). In other words, they can supply
their products to people who generally prefer low price products. Through this basis,
cited firm can attract Australian customers easily.

 Psychological segmentation: This segmentation is mainly used to target a certain group
of people from the whole population. It includes people lifestyle, their activities and
opinion towards particular product or services.
 Behavioral segmentation: In this type of market segmentation McDonald can segment
whole population on the basis of behavior, usage and decision pattern. For instance,
young people prefer Manchurian but old generation not using generally this type of
products. This type of segment generally used to achieve young people.
 McDonald Company can target demographic segmentation for selling its new product
that Chinese burger in Australian market. Here, it can target youngster and children for
buying its products.
2.3 Choose to target strategy
Targeting strategy is used to focus on ultimate customers on which business wants to
merchandise products and services (Levy, 2012). It is the process in which McDonalds select their
potential customers to whom business wants to target for selling their products and services.
There are various ways through cited firm can target to ultimate customers. In this context,
includes undifferentiated targeting strategy, differentiated targeting strategy and concentrate
targeting strategy. From these the organization use undifferentiated marketing strategy as
follows:
Undifferentiated marketing strategy
McDonald understand that there is no strong difference among customers’ characteristics
so that they use same thing for all people. Under this, Strategy Company will determine and
develop single marketing mix for whole market. This is use by cited firm for targeting customers
of mass-market (Lin and et.al, 2012). In respect to this, chosen enterprise use one marketing mix
for entire market. This is because they assume that all customers have same needs and wants. It
is beneficial for chosen business because it reduces lower cost of marketing research and only
single channel considered for distribution. Hence, company use this strategy to design products
to attract potential customers towards the new products of the organization.

2.4 Buyer behavior affects marketing activities in different situation
When consumer purchase products and services from the organization there are various
marketing activities considered in McDonald. Buyer behavior is made by internal and external
factors which is affects the marketing strategy (Gamburzew, Darcel and Darmon, 2016).
Thecited firm has various marketing activities which is largely depends on buying behavior of
customers. In this context, following are the buying behavior includes which affects to the
business decisions:
Complex buying behavior: In this term, customers highly involved and spend money to
purchase products and services by McDonald. Before buying any products and services they do a
lot research to gain preference of other people. In this, customers ensure quality and price for
particular products and services (Freeland-Graves and Nitzke, 2013).
Variety seeking behavior: In respect to this, customers have only few money for
investment and there are more products which has same kind of features. Generally, customers
compare to the products from another and choose best from the point of quality and cost.
Need recognition: Consumer buying decision process starts when its need realize. Here
McDonald needs to find out the needs of its customer and to know the ways to fulfill those it.
For instance if any individual is feeling hungry so that their need is food. With the help of
identifying need of customer, marketing activities of the chosen business will be enhance that
increase base of customer within the organisation.
Information search: After identifying needs consumer then customer start searching
information related to products and services. Here, information from the friends and family in
order to use the product. Through marketing information, McDonald's will easily deals with
different characteristics of customer requirement.
Evaluation of alternatives: After collecting information related to products and services
then consumer need to evaluate different alternatives on the basis of its needs and wants.
Marketing activities demonstrate various types of alternative option that are available for
operating function and operation in McDonald's.
Purchase decisions: At this stage customer need to make purchase decision for buying
the suitable product and services. For instance it family and friends of individual suggest
McDonald new product that is Chinese burger then customer may prefer to make decision for

buying its company products. In this step, marketing activities influence to customer to purchase
products from the organization in systematic way.
Post purchase behavior: When customer buy product of particular company then it will
be either satisfied or dissatisfied. Here if consumer not satisfied then it may switch to other brand
product. For instance, McDonald new product if like by customer or fulfill its needs and wants
then customer will be stick to particular company product. In this step, the company can provide
post purchase element to each customer that make proper functioning and outcomes within the
business environment. Hence, it will be done through different types of marketing activities such
as strategy and promotion, etc.
2.5 Propose new positioning strategy for new product/services
McDonald is launching new product that is Chinese burger in Australia market so it need
to use new positioning strategy for its products. At the time of positioning, it needs to distinguish
different features so that it not face any issues. Here, McDonald is required to use7 ps of
marketing mix in order to enhance sale of its products and services. The organization target
demographic segmentation where it is launching new product so it can easily set price of its
products premium. There are less competitor of the organization so it can easily use premium
pricing strategy. In addition to this organization is making hygienic food so that different age

customer can easily buy its products. Further its main target is youngster, so it can use Facebook,
twitter and other social networking sites for promoting its product and services. BY using this
sites it can easily target large number of customers. In respect to make effective position through
producing new product, following important elements are considering at workplace:
Competitive: In this way, the company can make their products ahead from competition which
assist to grow high profits and revenue within the market. Hence, McDonald's will easily
accomplish competitive advantages.
Value: This is another important element which determines effective results within the
enterprise. With the help of value creating, McDonald's will easily set their targets in different
areas.
Premium: Premium amount is charges as sum added to an ordinary element of product and
services. For example, surcharge, additional fee, etc.
Environment: Surrounding area of the company in which they perform their outcomes. In this
aspect, McDonald's need to save different elements through operations such as person, animal,
plant and many other aspects.
7Ps of marketing
Product
In the chosen business, different types of products are sold by the firm such as vegetarian
menu, non-vegetarian menu, beverages and frozen desserts. In this aspect, McDonald's is cares
about customer sentiments for their region and culture. In order to launch the new product that is
Chinese burger, the company need to make variety in it.
Price
The organisation is providing products at an affordable price with brand and core value of
product. In this aspect, cost leadership assist to make combos for supplying products in different
areas. With the help of penetration pricing strategy, the company can easily launch their new
product within the market. It will assist to attract customer easily.
Place
McDonald's is providing their products and services in different areas such as malls,
shopping complex, etc. In addition to this, they are operating in cities where they can easily
access more customer. In each outlet, the firm need to provide its new product.
Promotion

In order to make promotion, the cited firm using advertisement, TV. Radio, online
promotion and many more methods. In this way, they are mainly targeting to children with
providing happy meals.
Physical evidence
In respect to make effective physical evidence in Chinese burger, there are various
elements included by the company such as cleanness, quality, speed and transparency, etc. In this
way, McDonald's will easily maintain location, interior effective design and composition of staff
members.
People
In order to make effective function and operation, there are various people take place
who serve products and services in different areas such as crew member, equality services
treatment, etc.
Process
In this aspect, new food product is providing in effective way through distribution and
new packaging. McDonald's is investing more money in this way for producing products and
services. Hence, there are many ingredient used which serves to customers.
McDonald give importance to the new positioning strategy which helps to achieve brand
image for their new product in Australia market. In this process organization, can deliver
message regarding product and services to customers (Stead, Arnott and Dempsey, 2013). For
development of new product cited firm use following positioning strategy: Public relation: Through public relation chosen enterprise can make their position in
marketplace. In this context, McDonald can offer different services so that they can
enhance public relations. In addition to this, they can provide discounts and other
facilities for development of their products. Advertisements: With the help of advertisement, chosen organization can convey
important message to the customers (Strauss, 2016). McDonald can use various
advertisement such as newspapers, magazines and pamphlets.
 Sponsorship: This is new positioning strategy through cited firm can ensure higher sales
and created emotional support towards the people. In respect to this, they can make
products in fast servicing, low pricing and long term profitability (Bryant, Courtney and
Lefebvre, 2014).