Marketing Process, Strategies, and Analysis: McDonald's UK Report

This report provides a comprehensive analysis of McDonald's marketing strategies within the UK market. It begins with an introduction to the marketing process, emphasizing the importance of understanding consumer needs and preferences. The report then delves into a detailed examination of McDonald's marketing mix, including product development, pricing, distribution, and promotional activities. It explores micro and macro environmental factors influencing marketing decisions, proposing segmentation criteria and targeting strategies for different markets. Furthermore, the report analyzes buyer behavior and its impact on marketing activities, offering insights into product positioning and strategies for achieving a competitive advantage. The analysis extends to distribution methods, pricing strategies, and the integration of promotional activities to achieve marketing objectives. The report concludes with a discussion on planning marketing mixes for different consumer segments and differentiating marketing approaches for products and services. Overall, the report offers a thorough overview of McDonald's marketing principles and their application within the competitive fast-food industry in the UK.

Marketing Principles

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explain the various elements of the marketing process...................................................1
1.2 Evaluate the benefits and costs of a marketing orientation for a selected organisation.. .2
2.1 Show macro and micro environmental factors which influence marketing decisions.....2
2.2 Propose segmentation criteria to be used for products in different markets....................3
2.3 Choose a targeting strategy for a selected product/service..............................................3
2.4 Demonstrate how buyer behaviour affects marketing activities in different buying
situations.................................................................................................................................4
2.5 Propose new positioning for a selected product/service...................................................4
3.1 Explain how products are developed to sustain competitive advantage..........................4
3.2 Explain how distribution is arranged to provide customer convenience..........................5
3.4 Illustrate how promotional activity is integrated to achieve marketing objectives..........6
3.5 Analyse the additional elements of the extended marketing mix.....................................6
TASK 2............................................................................................................................................7
4.1 Plan marketing mixes for two different segments in consumer markets..........................7
4.2 Illustrate differences in marketing products and services to businesses rather than
consumers...............................................................................................................................8
4.3 Show how and why international marketing differs from domestic marketing...............8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing played a significant role which can create the demand of the product and
services. It can help to attain the organisational goals and objectives effectively. Marketing
process helps to identify the needs and preferences of the customer and make their product
accordingly. This report is based on the context of McDonald which is one of the leading food
chain in UK. The provide a wide range of products to its customer with high quality with the
lower price (Sheth and Sisodia, 2015). The purpose of this report is the significance of marketing
principles and how the company can using their marketing strategies like segmentation, targeting
and positioning. It can help to attain the organisational goals and objectives effectively.
TASK 1
1.1 Explain the various elements of the marketing process.
Marketing process is essential for each and every business to analyse the current and
future needs of consumers and making their products and services accordingly. There are four
important elements of marketing process which can help McDonald to make and implement their
marketing strategies accordingly:
Situation analysis: Situation analysis in the first stage of marketing process can help to
identify the needs and desires of consumers. It is important for company to design their food
products according to the needs of their consumers. There are various tools which can be used to
analyse the situation in market (Armstrong and et. al., 2014). It involves SWOT analysis which
can help to understand the strengths and weaknesses along with threats and available
opportunities in the market.
Marketing strategies: It is another important stage which can help to identify suitable
marketing strategies for McDonald. Marketing manager conducts the market research which
helps to know the actual need of their consumers (Kotler and et. al., 2006).
Marketing mix decisions: It is another significant tactical decision made by the marketing
manager. There are following marketing mix of McDonald which includes:

 Product: In includes products of company like burger, cold drinks and ice-creams.
Marketing manager is required to make their products unique in terms of taste, quality
and hygiene. Price: It is another marketing mix decision which is needed to set company’s products
pricing lower than its rival firms. Distribution: Distribution network of McDonald is too strong and thus, it can provide
competitive advantage to them.
 Promotional campaign: Marketing manager of organisation is required to focus on
attractive promotional strategies which can help to increase the sales of company.
Implementation and control: It is another important stage which needs effective
implementation and control over marketing plan and strategies that can help to attain the
organisational goals and objectives effectively (Pride and et.al., 2012).
1.2 Evaluate the benefits and costs of a marketing orientation for a selected organisation.
Marketing is one of the significant functions of success of every business unit. It can help
to make the organisation successful in the long run. There are three important things which
include market, competition and consumers. These factors can directly affect the business
operations. Marketing tools can help to make strategies and marketing plan so that they can
attain specific goals in the desired manner and within stipulated time period. All these
approaches can be used by company according to the market situation. But presently, the firm is
using customer orientation approach which is helping it to provide long term growth. This
orientation can focus on the customer’s needs and preferences. It can lead to increase the
customer satisfaction level and sales of company (Wang, 2007).
2.1 Show macro and micro environmental factors which influence marketing decisions.
Business environment is having a significant influence on the marketing decisions. It
involves internal and external environment that can affect the overall business operations of
company. Marketing decision involves judgement regarding company’s products, price
promotion and distribution. There are following factors which affect the decisions of marketing:
Micro factors: Micro factors are related with the internal environment of company.
These factors are under control of the firm. It involves customers, competitors, staff, suppliers
and investors. Employees affect the product related issues of business unit (Rudd and Mills,
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2011). Customer needs can get changed over a period of time due to which, it is required to make
appropriate changes in their products and services. Apart from that, competitors can also affect
the pricing policies of company.
Macro factors: These factors are related with the external environment of firm that are out of
control of a business unit. It includes political, environment, economical, legal and technological
factors. These factors can indirectly affect the marketing decisions. If these factors are
favourable for the firm, it can lead to increase the profitability and sales of company.
2.2 Propose segmentation criteria to be used for products in different markets.
Segmentation refers to divide the large market into small segments and then offering
products and services accordingly. It can be based on demographic, socio graphic, income level,
behavioural and other aspects (Hills and et. al., 2008). There are various segmentations that can
help McDonald to design their products and services accordingly:
Demographic segmentation: Marketing manager can divide the UK market as per the
age of their customers. It requires dividing market into age like 18-25 years which can help to
make strategies and design their products accordingly. Thus, they can increase their market base
and profitability which is a core objective of each and every business.
Income level segmentation: It can be another basis which can be used by the marketing
manager of McDonald. They can make their products according to the income level of
consumers. They can make premium price products for their high income consumers and low
price products to its target segment of people with middle income.
2.3 Choose a targeting strategy for a selected product/service.
Targeting strategy can help the firm to increase number of customers for their food
products. Market segmentation can help company to make their products according to the needs
of their target market. For example: marketing manager of company can target the youth and
make their products accordingly (Dann, 2010). It is also important for the firm to make all their
promotional strategies in concentrate to their target audiences. They can provide their product
range at the lower price that can enhance the revenue of company and ultimately, increase their
profitability.
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2.4 Demonstrate how buyer behaviour affects marketing activities in different buying situations.
Buying behaviour of consumers is having a great influence on the marketing activities of
business unit. It involves consumer tastes, preferences and other decisions regarding the
behaviour of consumer at marketplace.
Dissonance buying behaviour: This approach is related with the specific brand choices
of consumers towards their products. For example: a consumer can select McDonald’s burger
over other business units (Ferguson and Hlavinka, 2006).
Habitual buying behaviour: This is another behaviour of a consumer in which
consumer always use a product of specific brand over other brands. It can give the competitive
advantage to company.
Variety seeking behaviour:
2.5 Propose new positioning for a selected product/service.
It is one of the essential parts of marketing which can help to ware of their products in the
mind of their customers. The main purpose of positioning strategies is to provide a unique use
and brand value in consumer’s mind (Gordon and et. al., 2006). Positioning strategies can help to
McDonald to aware customers about their products and services. They can create uniqueness in
their products and services like for example: in UK, marketing manager of McDonald focused on
family and for this, he promoted products such as “Happy Meal” which increased the demand of
the same to a great extent. Apart from that, firm can also focus on youngsters and provide them a
wide range of products by promoting them for occasions like birthday celebration. It can lead to
increase the output and revenue of company.
3.1 Explain how products are developed to sustain competitive advantage.
There are various strategies to be used by the marketing manager of McDonald to gain
competitive advantage over its rival companies. There are following strategies to be used by the
firm:
Cost leadership: It is one of the significant strategies which can be used by various
companies to gain competitive advantage. The marketing manager is required to provide their
products at lower cost to its customers. It can lead to increase the market share and sales of
company. To attain the cost leadership, they can use various tools to reduce their cost of
production. They can use their resources at the optimum level. It can help to decrease the cost of
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production and increase profitability of firm (Stead and et. al., 2007). The organisation can also
use advanced technology and automation in the overall system can give the competitive
superiority over its rival business units.
Differentiation: Differentiation is another significant strategy which can help to the firm to
make their products which can differ form their rival firms in terms of quality and price.
Focus: The business unit can also design their products according to customer’s need. It
means that they can focus on the niche market to provide them premium products. It can
ultimately help to increase their revenue (von der Heidt, and Quazi, 2013).
3.2 Explain how distribution is arranged to provide customer convenience.
Product distribution plays a significant role in the success of any business entity in world.
McDonald is having a large distribution chain which helps it to reach at large number of
customers at a time. The organisation is having one of the leading food chains in UK. Their
distribution network provides advantage to the firm. There are following approaches that can be
used by company to distribute their products like:
Offline: It is a traditional and common method which can help the business unit to sell
their products to its customers. Firm is having a large food chain which can provide their
products at the right time to target customer(Corrigan, 2011). Apart from that, firm is also having
their vending machines which can help to sell their products easily to its customers.
Online: This is another method which can help the firm to make customers order through
online. Here, on time delivery can help to improve the customer satisfaction level. In today’s era,
various customers are not having time to visit food centre and thus, online ordering can help the
firm to sell their products and services to that segment. It can lead to increase the sales and
market share of company with increased customer base.
3.3 Explain how prices are set to reflect an organisation’s objectives and market conditions.
Pricing of product plays a prominent role in enhancing the sales and profitability of
company. Marketing manager is required to carefully design McDonald’s pricing strategies
which can help to increase the growth of company. There are various pricing strategies that can
help to provide the competitive position in market. It leads to increase the output and revenue of
business unit. These strategies are given as below:
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Penetration pricing strategy: It is one of the important strategies which can be used by
various business firms. Company is needed to use this strategy at the time of launching new
product in the market. Main objectives of this strategy is to make customers aware about the
products at lower level (Papasolomou and Vrontis, 2006). It can help to increase the sales and
market share of business unit.
Bundle pricing strategy: It is one of the unique strategy which can be used by McDonald
that can provide competitive advantage in the market. In these strategies, firms can provide a
bundle of products over individual offerings at lower prices. For example: the firm can provide
meal to its customers over different products. The advantage of this strategy is that it can lead to
raise the sales and making products with optimum utilization of resources.
3.4 Illustrate how promotional activity is integrated to achieve marketing objectives.
The role of promotional activities can help in attaining the marketing objectives in an
effective manner. There are various promotional activities which involve personal selling,
advertisement, public relation, direct marketing and sales promotion, etc. All these promotional
tools can help to promote the firm’s products and services along with making customers aware
with their brand and products (Munoz and Huser, 2008). For example: McDonald can use
advertisement to promote their products. Advertisement involve electronic media, print media
and social media. These tools can be used to increase the sales, build brand value, to promote
new products and services and for maintaining their profitability which is the core objective of
any business unit. Public relation is another important tool which can help to build and maintain
long term relationship with their existing customers. For example: if company can launch the
new products, they can send message to their customers. Public relation can help to improve the
communication between various stakeholders. Therefore, all promotional techniques can be used
by the organisation to attain marketing objective effectively.
3.5 Analyse the additional elements of the extended marketing mix.
There are various marketing mix which involves product, price, promotion and place.
These marketing mix can help to attain the organisational goals and objectives in an effective
manner. Apart from that, firm is also having additional marketing mix which is known as
process, people and physical evidence. These extended marketing mix is as follows:
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Process: Process is an important element of the firm which can help make their valuse
chain more effective. It involves process which starts from acquiring raw material from its
suppliers, converting to the same into finished products and delivering it to the end consumers.
Marketing manager is required to make efficiency in the process (Gunasekaran, Ngai and
McGAUGHEY, 2006).
People: This is another extended marketing mix which is related to the customers and
organisation’s staff. It is the responsibility of marketing manager to provide effective training to
their staff. It can help to enhance the customer services and increase productivity and
performance of their employees.
Physical evidence: It is one of the significant elements which is related to the consumer
behaviour. Buying behaviour can affect the business activities of company. Marketing manager
is needed to maintain the brand value of firm through providing quality products and services to
their customers.
TASK 2
4.1 Plan marketing mixes for two different segments in consumer markets.
Marketing mix for two different market segments involve geographic and demographic
segmentation for McDonald as given below:
Marketing mix of geographic segmentation: Product: Marketing manager can make and design their products on the basis of age.
They can offer a wide range of products to their target market (Sheth and Sisodia, 2015).
It can help to increase the sales of firm and to attain the customer loyalty and increase its
market share. Price: Pricing is another important element which can be used by the firm according to
young generation of UK market. It can help to increase their revenues and profitability. Place: As a marketing manager of the firm can focused on the distribution system so that
it can help to available their products to its customers.
Promotion: Promotional activities of products can be done according to the language and
cultural factors. They can use social media for promoting their products to target audience.
Marketing mix of demographic segmentation:
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 Product: In the demographic segmentation, product can be designed according to various
factors like income, profession, age, gender and so on. For example: company wants to
focus on the young generation as target group. For example: firm can provide food to
health conscious customers and for that, they can use organic materials which can
increase the market in this segment (Armstrong and et. al., 2014). Price: Price is another element which can affect the sales and profitability of firm.
Marketing manager makes sure that they can set their price lower as compared to its rival
firms. Place: Marketing manager can also open a different distribution centre for health
conscious customers.
 Promotion: Marketing manager of the company can use innovative and creative
promotion tools to promote their products which can help tom aware their products more
effective.
4.2 Illustrate differences in marketing products and services to businesses rather than consumers.
Difference between business to business and business to consumers as given below:
B2B Marketing B2C Marketing
B2B marketing focused on promoting products
and services to its business users.
B2C marketing is to promote the goods and
services to its customers or end users.
It is focused on the logic of product and
services.
B2C focuses on the benefits of goods and
services.
Payment can be made after delivering the
products and services.
Payment tools can be online or offline
according to the customer preferences.
4.3 Show how and why international marketing differs from domestic marketing.
Difference between international and domestic marketing as given bellow:
International Marketing Domestic Marketing
It is a process where goods and services
beyond the national boundaries.
On the other hand trading activities within the
national boundaries.
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International marketing served a large area. In the domestic marketing served a limited area
as compare to international marketing (Kotler
and et. al., 2006).
In international marketing risk can be
unlimited.
In domestic marketing risk is limited.
Deep and detailed research report required to
understand their customers needs.
There is no requirement of such kind of
detailed report.
There are large capital is required to operate
business activities (Pride and et. al., 2012).
It requires limited capital as compare to
international marketing.
CONCLUSION
As per the above mentioned report it has been concluded that marketing elements played
a prominent role in the business unit. This report it expanded about the internal and external
factors of business which can affects the business directly or indirectly. How McDonald can uses
their marketing mix and marketing strategies which can help to promote their products more
effectively. It can help to attain the short and long term organisational goals and objective.
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