Marketing Report: McDonald's Strategies, Theories, and Models Analysis

This report delves into the marketing strategies employed by McDonald's, examining various theories and models to understand the company's approach. It begins with an introduction to marketing and its importance, followed by an exploration of key marketing theories such as Maslow's Hierarchy of Needs, the consumer decision-making process, and Porter's five forces. The report then moves on to analyze relevant marketing models, including the McKinsey 7S model, the Ansoff Matrix, and the BCG Matrix, to evaluate McDonald's strategic planning and growth opportunities. Furthermore, the report covers different marketing strategies, including segmentation, targeting, and positioning. The analysis provides a comprehensive understanding of McDonald's marketing structure and the strategies it uses to achieve its business goals. The report concludes by summarizing the key findings and providing relevant references. This report, contributed by a student, is available on Desklib, a platform offering AI-based study tools.

Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1: Marketing Theories......................................................................................................................3
Maslow's Hierarchy of needs.......................................................................................................3
The consumer decision-making process......................................................................................4
Porter's five forces.......................................................................................................................5
2: Marketing Models........................................................................................................................6
McKinsey 7S model.....................................................................................................................6
The Ansoff Matrix.......................................................................................................................7
The BCG Matrix..........................................................................................................................7
3: Range of Strategies......................................................................................................................8
Segmentation................................................................................................................................8
Targeting......................................................................................................................................8
Positioning...................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is one of the major terms of the business operations, where management of the
organization set a marketing team for covering purposes related to the marketing. There are
many strategies are uses by the marketing team to run their marketing activities in the particular
market effectively. Without marketing no one organization can easily achieve their business
goals in a specific time period. The marketing play great role in the promotion of the products
and services of nay organization. Currently many of the successful companies has hired some
highly qualified and skilful marketers in their business environment to achieve their decided
goals. Marketing is the organizational process which creating good relationship and satisfying to
the customers. This is the most powerful way to gain high attention of the people towards brand.
This report discusses the marketing structure for the McDonald's, and specially focuses on the
various marketing strategies which company currently employ in their business environment.
1: Marketing Theories
There are various theories are comes under the marketing which help to the companies to
get productive results from the marketing process.
Maslow's Hierarchy of needs
Maslow's hierarchy of need is basically a motivational theory which is based on the five
independent levels of human needs. In 1943, Abraham Maslow first introduced the Hierarchy of
needs theory. These main five levels of basic human needs are discusses below;
1. Physiological Needs: These needs refers to the basic needs of the humans called; water,
air, food, home, cloths, fire, and shelter etc. these are also main needs of the humans,
because without these all the elements humans are not easily able to survive in the world.
2. Safety Needs: Safety is also one of the major needs of human life (Glanz, Rimer and
Viswanath, 2015). These needs include environmental, physical and emotional safety,
and protection etc. There are some additional needs are also included in the safety term,
where humans need protection from the animals, job security, family protection, financial
security, security related to the health, etc.
3. Social Needs: Social needs of the humans include the need for care, love, belongingness,
affection, friendship, romantic attachments, and community groups, etc.

4. Esteem Needs: These needs are comes at the fourth level of humans basic needs. Esteem
needs are divided into two parts, the first one is internal esteem needs, which includes;
confidence, attitude, motivation, achievement, self-respect, competence, and freedom etc.
and the second one is external esteem needs, which includes; power, standard,
recognition, status, admiration, and lastly attention, etc.
5. Self-Actualization Need: This need include self potential and capability term of the
human, which indicates the growth factor in the daily life where human wants to live in a
progressive channel (Geisler and Wickramasinghe, 2015). In this need humans are desire
for achieve more creativity, knowledge, opportunities, and social service etc.
The consumer decision-making process
The consumers decision-making process according to the marketers cover in the five
major points. In which the decision-making process start with the specific need of the consumers
and finish at the point where they buy the needed product. This process of the consumer is
describe below;
1. Problem recognition: This is the first stage of the consumer decision-making process
where the consumers feel any need of the product. They feel something unsatisfied wityh
any particular product, and then they start preparing decision for buying that product,
which fully satisfied them after consumption.
2. Information search: In this stage consumers are take information about the particular
product in the market (Wedel and Kannan, 2016). They analyse the actual value of that
product. In the process of information search consumers are try to know all major aspects
of the products through near market, internet, magazines, advertisements, etc.
3. Evaluation of the alternatives: This is the third stage of the consumers decision-making
process. In this stage consumers analyse the alternative products of the product which
they want to buy. In which they compare the different products on the basis price,
availability, design, benefits, etc. and at the final result consumers go for buy that product
which suitable for their buying efficiency.
4. Purchase: In the purchase stage consumers are completely decided about what, where,
when they buy the product. This stage also refers to the actual purchase. On the basis of
for the mcdonalds reviews, feedbacks, and comments of the previous buyers, consumers
are comes the logical conclusion to buy any product and service in the market.

5. Post-Purchase evaluation: Post-Purchase evaluation is the final stage of the consumer
decision-making process (King and Baatartogtokh, 2015). In which consumers are
already buy a product, buy if next time they need to that same time of the products, in
that case they will purchase according to the previous experience of the product.
Consumers will also buy product on the basis of product's satisfaction level.
Porter's five forces
Porter's five forces model is an important analysis tool for the Mcdonald's which help to
determine the competition intensity in the market. These major forces are discusses below;
Bargaining power of the buyers: This force refers to the power of the customers or buyer in the
market. Currently the bargaining power of the customers in the Mcdonald's company is very
strong, because customers have many other options available in the market to buy products and
services which Mcdonald's is offering (Isaak, 2017). In that case company need to give them best
of best services to always take their attention.
Bargaining power of the suppliers: When there are many suppliers for any particular product
in the market in that case bargaining power of the suppliers is become weak. In other hand if the
number of the suppliers are very less for any product, in this situation the bargaining power of
the suppliers is become too strong. In the case of Mcdonald's, the company mostly needed
potatoes and chicken as a raw material for their products, and currently in the market there are
many suppliers of potatoes and chicken. So, the bargaining power of the suppliers is very weak
in the Mcdonald's.
Competitive rivalry: Currently there are huge competition in the fast food market. Many
multinational fast food companies are working in market as competitors of the Mcdonald's, but
competitive rivalry aspect is too strong of the company because currently this is one of the
trusted brands in the fast food market. Company has successful in the build strong customer base
in the market. So, it is currently working as a popular fast food brand in the international market.
Threats of new entrants: For start business in the fast food market is very challenging for the
new entrants, because there are already highly reputed fast food brands are working in the market
(Moss, Neubaum and Meyskens, 2015). Suppose any new company wants to enter this market, in
this case that company need to invest high capital and effective business strategies in the new
business activities for face existing competitors.

Threat of substitutes: Company offering some special or exclusive range of the food in their
restaurant, and many of the people are crazy for eating the products of the Mcdonald's. In that
case the threat of substitutes is strong in favour of company. Customers have many additional
food products in the market, but when they look specially for the burger, in this case they always
prefer company as a first choice.
2: Marketing Models
Companies are using many effective marketing models in their business environment to
gain productive results from the procedure of marketing. It includes some major marketing
models below;
McKinsey 7S model
In 1980s the McKinsey 7S model was introduced. This is a useful framework for the
effectiveness of organization. These 7S model are discusses below;
1. Strategy: This is the first part of the Mckinsey 7S model. In which companies are need
to make specific business strategies to run their organizational operations in productive
way (Lilien, Rangaswamy and De Bruyn, 2017). This element is also helping in to gain
competitive advantage in the market.
2. Structure: The structure refers to organize all business departments and units in
systematic channel to run all business activities smoothly. This is the responsibility of the
upper management to prepare a logical chart to analyse the flow of all business activities.
3. Systems: Systems indicates the determination of how business goals are done, and what
kind of changes are needed in the business system to achieve the decided target
(KENTON, W. 2019). It is help to analyse the current business condition in the business
environment.
4. Skills: Skills are very necessary element in the business operations, where employees of
the company are use their skills and abilities to cover any task in productive way.
5. Staff: Staff refers to employees of the company which help in the achievement of
business goals. Without productive staff performance no one company can achieve their
target in specific time period.
6. Style: Style represents the managing way of upper level management. It includes the
interaction and communication values of the manager and the leader in the business

environment. Manager's effective style is compulsory for put positive impression on the
employees.
7. Shared Values: It includes the norms and standards which help to improve employees
behaviour and management actions in the organization. This is very important to make
healthy and positive environment in the workplace.
The Ansoff Matrix
The Ansoff Matrix is a strategic tool of the planning which is uses by the many of
businesses to plan and analyse their useful strategies for growth (Saboo, Kumar and Park, 2016).
It includes four major strategies which companies are uses for grow their business environment,
and also analyse the risk factors of all strategies. These four growth strategies are as follows;
Market Penetration: In the market penetration the company go to achievement of growth with
products which already existing in their market segment. The aim behind the market penetration
is to increase market shares of the company.
Market Development: According to the market development growth strategy, company need to
target their existing products to launch in the new market segment to gain specific growth in the
business environment.
Product Development: In the product development strategy the company develop or produce
the new products in their business environment for selling in the existing market segment
(Ravishanker, Venkatesan and Hu, 2015). This growth strategy helping in the gain competitive
advantage in the particular market.
Diversification: This is the fourth growth strategy of the Ansoff matrix. In which company jump
into new businesses for gain more profits from different business. In that case company need to
develop or produce new products for provide into new markets.
The BCG Matrix
The BCG Matrix is also knows as growth market share matrix which help to businesses
for long-term strategic planning, and also help in analyse the growth opportunities for the
business. The BCG Matrix is designed by the Boston Consulting Group. This is divided into four
parts, which are based on market growth analysis and market share;
1. Cash cows: It refers a company in a slow growing industry which has high market share.
Cash cows are the highest profitable brands which are still gaining a specific income.
Products which comes under cash cow can be 'milked' to products of fund star.

2. Dogs: Products which are comes under the Dogs category always have low share with
low growth. These products staying for the long term in the market, because its market
growth is really very low in comparison of other products.
3. Stars: Products included in the starts have high market share and also high growth. In
this the growth of the products are totally rapid, and market share are dominant (Dew,
2019). The star products are generally seen as leading products of the market.
4. Question Marks: This is also known as problem child in the terms of BCG Matrix.
Products which included in this category have low market share, and high growth. The
question marks have able to high market share and reach in starts, because it has specific
potential in it.
3: Range of Strategies
STP (Segmentation, Targeting and Positioning) is an important framework in the
marketing that simplifies the marketing segmentation process. Explanation of these all strategies
are included below;
Segmentation
Segmentation refers the division of expanded market into small market segments. The
market segmentation help to Mcdonald's to run their business activities according to the
environment of the particular market. This also help to manage business operations in systematic
way. Many other companies are also divides the broad market into small segments for focusing
on the individual needs of the market. Company need to implement this strategy in their business
environment to retain more customers in the market. It is productive to the business to gain more
customer base in small areas. It will provide great business growth opportunities to the company
in the fast food market.
Targeting
When company creates market segmentation within the broad market, company need to
implement various marketing strategies in that small market segments according to the
individuals tastes of particular segment (Kim, Park, and Jo, 2016). This is the second stage in the
STP marketing strategy. Company need to analyse the basic needs of the different market
segments related to the fast food products. Then try to produce such products which people are
specially need from the company. It is necessary for the Mcdonald's to stand with the many of
the competitors in the fast food market. Company also need to target people according to the

income status of the people. In which company able to launch different price range products for
the different income group people. With the help of targeting market strategy company's
performance increase day by day, and at the final result company easily achieve their decided
business goal.
Positioning
This is the last stage in the STP strategies in which company need to set perfect position
of the products in the target market. It is very helpful to the business save huge time and cost of
the company, because with this company able to provide products direct to those people which
actually wants it. This is one of the most important steps of the company. In which company
finally ready to offer their products and services after the process of market segmentation and
targeting (Panigrahi and Subudhi, 2016). It is also important in the gain competitive advantage in
the fast food market. The perceptions of the customers highly impact the positioning of the
products in the market. In that case company Mcdonald's need to run such effective promotional
strategies in the market to put well impression of the brand on customers.
CONCLUSION
It can be concluded that in the business environment such marketing theories called;
Maslow's Hierarchy of needs, the consumer decision-making process and porters five forces help
in understand the consumer behaviour in the market. In which according to the consumer
behaviour and their needs, the company is able to provide them that products which they actually
want. There are various marketing models are also playing great role in the achievement of
business objectives. These models are help to the company to improve their performance in the
market. These are necessary because there are huge competition in the fast food market, and
these have provided various useful ways to deal with the competitors in the market. It also
included three major marketing strategies; segmentation, targeting and positioning, which is help
to the Mcdonald's to fulfil individual customer needs in the different market segments. These all
marketing tools are too much important for achieve decided business goals.

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