Marketing Principles Report: Analyzing MacDonald's Marketing Approach

This report offers a comprehensive analysis of marketing principles, using MacDonald's as a case study. It begins with an introduction to marketing processes and the evaluation of marketing orientation benefits and costs for MacDonald's. The report then delves into macro and micro environmental factors influencing marketing decisions, proposing a segmentation process and targeting strategy for MacDonald's products. It also examines how buyer behavior affects marketing activities in different buying situations and explores new product positioning. Further, the report discusses product development for competitive advantage, distribution arrangements, pricing strategies, and promotional integration within the marketing mix. Finally, it analyzes marketing mixes for different consumer segments, highlighting the differences between marketing products and services to businesses versus consumers and domestic versus international marketing, concluding with a summary of key findings.

Marketing
Principles

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1various elements of the marketing process............................................................................1
1.2 Evaluation of the benefits and costs of a marketing orientation for MacDonald's..............2
2.1 Macro and micro environmental factors which influence marketing decisions....................3
2.2 Proposed segmentation process to be used for products in different markets by
MacDonald's................................................................................................................................4
2.3 Choose a targeting strategy for a selected product................................................................4
2.4 How buyer behaviour affects marketing activities in different buying situations................5
2.5 New positioning for a selected product.................................................................................5
3.1 How products are developed to sustain competitive advantage...........................................6
3.2 Distribution arrangement to provide customer convenience................................................6
3.3 Explanation about how prices are set to reflect an organisation’s objectives and market
conditions....................................................................................................................................6
3.4 Integration of promotional activity to achieve marketing objectives....................................7
3.5 Analysis of the additional elements of the extended marketing mix....................................7
TASK 2............................................................................................................................................8
4.1 Marketing mixes for two different segments in consumer markets......................................8
4.2 Differences in marketing products and services to businesses rather than consumers.........8
4.3 Difference between domestic and international marketing ..................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing involves a huge number of processes which are concerned with analysis of
desires of customers and other elements of market which may affect the organisational process,
productivity and profitability(Abdullah and Ismail Ahmad,2010). Marketing principles are based
on four elements which are known as four Ps of marketing. In this report, various elements of
marketing has been discussed which are used by business entities and managerial personnels to
get a detailed understanding of market so that they can achieve their targeted share in the
targeted market(Four Core Marketing Principles, 2016). With the information
provided in this report, users can get acknowledged of various micro and macro environmental
factors that may affect marketing decisions. How managers use segmentation criteria for
different products in different markets. Other than this a targeting strategy has been discussed in
this report through which cited firm can achieve sustainable development in the adverse business
environment. This report is based on the case study of MacDonald's which deals in fast food and
beverages. It is an American hamburger and fast food retail chain.
TASK 1
1.1various elements of the marketing process
There are various elements which are involved in marketing process these are mentioned
below : Research : managerial personnels of cited entity needs to make research over the market
so that they can gather information about various trends of market which are existing
their in market(Brennan and Binney, 2010). As these data helps an entity to provide
better products to their customers. Strategy : McDonald's need to make certain effective strategies as per the data which
have been collected from research and analysis of market and its trend so that they can
work towards the way to fulfil requirements of their customers(Burchell, Rettie and Patel,
2013). As McDonald's is dealing in providing food to its customers and hamburger is the
famous product of McDonald's hence they need to provide hamburgers with more variety
to their customer for this they should make certain strategy. Marketing Planning : Planning is necessary to get sufficient and satisfactory results from
any process. Marketing planning involves awareness of consumers about products which
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are provided by the consumers. Planning involves deciding ways to achieve the desired
objectives of cited entity. Control : MacDonald's and its management should make control over the procedure and
plans so that errors can be removed and controlled so that the efficiency of cited firm can
be maintained as well as it can grow in a positive way.
Situational Analysis :
MacDonald's and its management need to make a detailed survey on market and its
components so that they can get information which can assist them to make innovation in their
products and services. Survey helps an entity to get detailed information about the marketing
elements this will helps cited entity to get information about the requirements of
customers(Challagalla, Murtha and Jaworski,2014). They can get knowledge about the
preferences of their buyers and sellers who provide them raw material for the production of
finished goods. Hence situational analysis is necessary to understand the market situation and its
impact over the entity.
1.2 Evaluation of the benefits and costs of a marketing orientation for MacDonald's
Marketing orientation can be defined as a process which is used by cited entity for getting
information about the requirements and desires their customers through marketing mix(Corner
and Randall, 2011). The benefits and cost of marketing orientation process for MacDonald's is
mentioned below :
 Cited entity is concentrated towards the needs of its consumers. As concept of marketing
orientation revolves around understating of consumer needs hence it is helpful for
MacDonald's in understanding of consumer needs and requirements. Marketing orientation increases the efficiency of company to perform better in the
competitive market. As there are so many companies in market which deals in providing
fast food and beverages(Frederiksen, Solomon and Brehony, 2013). So in such
environment which have cut throat competition the only way to attract consumers is to
provide them better quality in the products so that their desires can be fulfilled.
Cost of marketing orientation : Promotional Cost : Marketing orientation requires promotion so that they can provide
knowledge to the consumers about their products(Principles of Marketing and
Strategy, 2016). Managers needs to promote their products through various means of
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promotion like advertising in print media and digital media. The cost which is associated
with advertising is termed as promotional cost.
 Market Survey Cost : Marketing orientation is totally depends on information about
trends and elements of market which can be acquired through survey(French, 2010).
Managerial personnels needs to make survey of market through which they can
understand various trends. These survey are a very detailed process which include time
and cost, management have to spend a lot of money for such survey analysis.
2.1 Macro and micro environmental factors which influence marketing decisions
Marketing decisions get influenced through various environmental factors. Because of
this reason MacDonald's needs to make a detailed analysis over the macro and micro
environmental factors so that they can regulate the dynamic business environment. These factors
are mentioned below : Micro Environmental Factors
1. Consumers : consumers are one of most crucial environmental factors which can impact
the business entity. Demand and satisfaction of those demands decides success of any
business entity(Gracia-Marco, Moreno and Vicente-Rodríguez, 2012). As sustainable
development of a business enterprise can only be achieved through satisfying desires of
consumers(Gordon, 2012). If MacDonald's fails in fulfilment of needs of ultimate
consumers then they can sustain in long run as well as they can achieve their objectives.
2. Suppliers : They make a vital impact over the business process of MacDonald's as they
decides price and quality of raw material which makes ultimate effect over price of its
Hamburgers and other products.
3. Competitors : Rivals in the same market offering same products to consumers also affects
through offering better quality at minimum price. Macro Environmental Factors : Factors belongs from macro environment are mentioned
below :
1. Political : McDonald's is multinational brand so it is required by them to follow rules
and law made by government of various countries.
2. Economical : Economic factors like inflation, recession and various policies like fiscal
and monetary policies affects the organisational structure of cited entity.
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3. Social : McDonald's needs to analyse the demands of society as if company will follow
the traditions of society then it will help it achieve growth but on the other hand if they
don't follow such tradition then it will affect its development.
2.2 Proposed segmentation process to be used for products in different markets by MacDonald's
Following are some steps of market segmentation which can be followed by managerial
team of cited firm : Step 1: market definition: market is a place where large number of buyers and sellers are
come together for some services(Hollenbeck, Mason and Song,2011). The Mc Donald
create their own market. They produce large number of new varieties for consumers. Step 2: create market segment: the Mc Donald start to identify market types in which
they start to get enquired about the different age,groups, gender of the market. They need
to make strategy in accordance with the various demographic factors and then need to
make different segments. So that they can achieve their goal. Step 3: evaluation of attainable of proposed market segment: the Mc Donald utilize their
market data for various its consumers in which they found the needs of every group is
different from each other. Step 4: make segment portfolio: MacDonald's start to analyse the market size, nature and
proportion(Jobber and Ellis-Chadwick, 2012). So that they can used their different media
of promotions for vary consumers behaviour. Step 5: examine the attractiveness of segments: company started to utilize the data of
various consumer behaviour and get to know about the choice of attractiveness of their
target consumers(The 6 Principles of Epic Content Marketing, 2016). So ,
from that they can produce according to the attractiveness.
 Step 6: select the target market: at the end they start producing different varieties for their
costumers by using variational strategies so from that MacDonald's can become the brand
name.
2.3 Choose a targeting strategy for a selected product
The following are some target strategies which MacDonald's can use for its various
consumers in different segments : Undifferentiated Strategies : It is a strategy which does not follow a particular market
segment but it only produce one product by targeting entire market(Ketter and Avraham,
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2012 ). So it can be cheaper but not successful to the organisation because variation is
compulsory for surviving in the market. Hence, MacDonald's produce more than one
product for its ultimate consumers. Differentiated Strategies : According to this strategy, company introduces several
products in the market for a change(Li and Wang, 2010). These different products made
the differentiated strategy so the large number of consumers can get attracts towards the
product.
 Concentrated Marketing Strategy : It means when the firm concentrate over on the one
product as compared to others product. The organisation mainly focus on one segment
properly not on others(Negricea,Avram and Eftimie,2011). It affects the business growth.
So, the MacDonald's is using differentiated strategy for their target customers. So they
can satisfy their consumers as more as they can.
2.4 How buyer behaviour affects marketing activities in different buying situations
Behaviour of buyers in market makes a vital impact over various buying situations.
Certain factors which may affect a buyer's buying situation are mentioned below : Social factors : there are certain social factors which may affect the buying decision of a
buyer. Buying behaviour of a customer depends on the group of society from which he
belongs. Cultural factors : there are some cultural factors which may affect the buying decisions
of a buyer. As culture decides the needs and requirements of a consumer hence this factor
is one of most crucial factor which affect buyer's buying decision. Personal factors : there are certain personal factors which may impact decisions
regarding buying of any product. Personal factors includes lifestyle of consumer,
financial background, economic situation, age group and personality.
 Psychological factors : psychology of customers decides what they want to purchase and
why they want to purchase(Parker and et. al., 2011). Hence psychological factors like
belief and attitude of individual and group of customers may affect their decisions.
2.5 New positioning for a selected product
Positioning of product in existing or a new market is necessary as well as positioning of
new product in existing or a new market is also necessary. MacDonald's needs to find a better
place for a new customer so that new product can grow easily and it can also generate revenue
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for cited enterprise. For this MacDonald's needs to select a target market in which they can put
their product other than this they need to select some objectives so that they can get some
guidance about what they can achieve through any product. MacDonald's launched a new
product Mac Egg for which they have ascertained that this product will not get success until it is
placed in market where there are more number non vegetarians(Reijonen, 2010). Other than this
MacDonald's launched their product Mcaloo tikki for Indian people who are vegetarians.
3.1 How products are developed to sustain competitive advantage
There are certain strategies which can be implemented by MacDonald's to sustain
competitive advantage : Cost Leadership Strategy : Cost leadership strategy can be used by entity by providing
fast food to its customers at low cost. As this will attract customers towards its products.
A survey shows that most of the customers of MacDonald's are youngsters(Rudd and
Mills, 2011). So they have less money to spend, so it will be beneficial for entity if they
provide Hamburgers and other products at low rate. Differentiation Strategy : through this strategy MacDonald's can differentiate its
products from its rival by improvising quality and price.
 Focus Strategy : as per this strategy organisation needs to focus on a specific part of
market. So that they can identify unique desires of customers from targeted market.
3.2 Distribution arrangement to provide customer convenience
There are some distribution arrangement methods which can be used by entity are
mentioned below : Offline Channels : outlets, stores and sale of products personally through selling staffs
are some mediums which can be used for distribution and selling of products. These
channels are in direct contact with organisation. Merit of offline channel is that in this
channel there is no any involvement of any other party.
 Online Channel : Now a days people are using applications and they accessing websites
for giving order. This channel for selling and distribution is cost effective and beneficial.
3.3 Explanation about how prices are set to reflect an organisation’s objectives and market
conditions
Prices of products decides the objectives of a company. Production of products needs a
lot of time and there are certain costs which are included in such products. Company aims at
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break even point, it is the primary objective of company to achieve the break even point so that
after that level they can achieve the profit. So for this they decide price of their products so that
they can achieve break even point at an earlier stage. Through cost reduction and reducing the
ultimate price of any product MacDonald's can dominate its rivals(Rusinko, 2010). Which shows
that cost reduction and price reduction are made to acquire the major share of market and to
remove rivals from targeted market.
3.4 Integration of promotional activity to achieve marketing objectives
Promotional activities can be integrated by MacDonald's to achieve their objectives and
goals. Through promotions company can acquire a major share in market. As cited entity is a
multinational company so they need to concentrate over the market which can be done through
analysis of market further they require to mention about their products to their customers. For
this they need make promotion of their products and services as they have a wide customer base.
They can make promotion through various mediums like traditional media and modern media.
MacDonald's should use modern media as most of the customers are using social media like
Facebook, You tube and Instagram(Russell-Bennett,Wood and Previte, 2013). Through these
mediums they can promote their products with less cost and more access to potential customers.
3.5 Analysis of the additional elements of the extended marketing mix
There are some elements of extended marketing mix which can be used by MacDonald's
for marketing. These extended elements are mentioned below : People : first P among the extended elements of marketing mix is concerned about those
employees who are working at MacDonald's(Sferleand et. al., 2012). Recruitment of
skilled personnels and to train them assist cited entity to get satisfactory results. Physical Evidence : Physical evidence of products should in accordance so that they can
easily attract the customers. Managers need to make more innovative presentation of their
products and services.
 Process : Final P of extended marketing mix deals with the process. The process through
which they convert raw material into finished goods and the process of selling and
distribution of goods and services.
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TASK 2
4.1 Marketing mixes for two different segments in consumer markets
Marketing mix for two different marketing segment which are created by MacDonald's
are as follow :
Marketing Mixes Segmentation on the basis of
age group
Segmentation on the basis of
tastes and preferences
 Product
 Price
 Place
 Promotion
Products depends on ability to
buy goods by various age
group.
Price should be in accordance
with the age
group(Varadarajan, 2010). As
teenagers cant spend much on
fast food
Place to supply products
should be in accordance with
the age group as company
should opt for personal selling
if there are more customers of
age group 12-16 years.
MacDonald's should promote
their products as per the age
group. For example, children
gets attracted of creative and
funny advertisements.
Product as per this segment
depends on the taste preference
of various people customers.
Price should be low so that
customer can easily afford its
food and beverages.
They should open their outlets
where potential customers are
living.
Promotional activity should
provide information about the
ingredients of products.
4.2 Differences in marketing products and services to businesses rather than consumers
There are certain differences between business to business and business to consumers.
These are mentioned below :
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Business To Consumer Business To Business
 This concept defines that consumers
buy products from business fro their
personal use(Saunders, Barrington and
Sridharan, 2015 ). They consume it and
they are also know as the ultimate
consumers. As they don't further resale
those products.
 This concept use E commerce and
various other methods to directly
distribute goods and services to its
customers.
 Consumers can buy their desired
products by getting access to website of
company or its mobile application.
 In this concept, Business organisation
purchase products and services for
business purpose. Unlike business to
consumer, business to business has a
very complex procedure.
 In this concept, firstly other business
organisation requires to make a
purchase order and then they have to
buy those product by paying for
transportation and goods.
 Online system can be adopted by cited
entity for placement of order.
4.3 Difference between domestic and international marketing
There are some basic difference in domestic and international marketing which are
mentioned below : International Marketing : International marketing is not concentrated within the limits
of countries but it flourished all over the world. In international marketing entities will
have a huge customer base with a lot of variations in demands(Sheth and Sisodia,2015).
International marketing deals with various culture and social values in order to get
success in international market a company like MacDonald's needs to understand social
value and traditions of various countries.
 Domestic Marketing : Domestic marketing is very different from international
marketing. There are some benefits as well as demerits of domestic marketing(Tag-
Eldeenand El-Said,2011). As it is concentrated within the boundaries of nation hence its
customer base is limited. But it requires less capital and there is less risk in comparison to
business operating in international market(Simpson,Taylor and Padmore,2010). Demand
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for variety in product is limited but these business enterprise may not face any challenge
regarding social value and change of tradition.
CONCLUSION
In this report various concepts has been mentioned regarding the marketing policies
which can be used by MacDonald's in its organisational process so that they can easily achieve
their targets and objectives. Further marketing planning and principles can assist cited entity to
achieve sustainable development. Readers can get knowledge about the difference between
domestic and international marketing, business to business and business to consumer etc. other
than this cost leadership strategy, differentiation strategy and focus strategy can also be used by
MacDonald's and managerial personnels for sustaining competitive advantage among its rivals.
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