Comprehensive Marketing Analysis and Strategies for McDonald's Report

This report provides a comprehensive analysis of McDonald's marketing principles, covering various aspects such as the marketing process, including market analysis, target market identification, and marketing objectives. It examines the benefits and costs of a marketing orientation, and explores the micro and macro environmental factors influencing marketing decisions. The report delves into market segmentation strategies, target market selection, and how buying behavior affects marketing activities. It proposes a new positioning strategy and discusses product development, distribution, pricing, and promotional strategies to sustain a competitive advantage. Furthermore, the report covers the extended marketing mix, marketing mixes for different consumer segments, the differences in marketing to businesses versus consumers, and the nuances of international marketing within McDonald's. The conclusion summarizes the key findings and insights from the analysis.

Marketing Principles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1The various elements of marketing process......................................................................3
1.2 Benefits and costs of marketing orientation to McDonald's.............................................4
TASK 2............................................................................................................................................5
2.1 Micro and macro environmental factors influencing marketing decisions......................5
2.2 Segmenting McDonald's products in different markets...................................................6
2.3 Choosing target strategy for a range of products and services.........................................7
2.4 How buying behavior affects the marketing activities in different buying situations......7
2.5 Proposing a new positioning strategy for selected product or service.............................8
TASK 3............................................................................................................................................8
3.1 How McDonald's products are developed in order to make sure that competitive
advantage is sustained............................................................................................................8
3.2 Explaining distribution strategies.....................................................................................9
3.3 Explaining pricing strategies............................................................................................9
3.4 How promotional activity is integrated to achieve marketing objectives......................10
3.5 Additional elements of extended marketing mix............................................................10
TASK 4..........................................................................................................................................11
4.1 Plan marketing mixes for two different segments in consumer markets........................11
4.2 Illustrating differences in marketing products and services to business rather than
consumers.............................................................................................................................11
4.3 How international marketing differs from domestic marketing within McDonald's.....12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing principles includes set of strategies, processes, methods and standards that
help the organization to fulfill their marketing objectives like product development, customer
satisfaction and attracting more number of customers. Also, marketing helps in providing best
information to users so that sales of the firm can be enhanced. Business also tries to develop
effectual marketing tactics in order to develop communication among large set of audience (Dibb
and Carrigan, 2013).
In the current scenario, McDonald organization has been undertaken which is the best
known brand in the world. Business also focuses on building its brand through listening
effectively to its customers’ needs and requirements and fulfilling it in order to attain customer
satisfaction. By delivering the best quality products at effective prices it helps the firm to build
brand image in the market (Dinnie, 2010). Also, there are different marketing communication
methods i.e. advertising, promotions etc. which are used in order to create effective color, design
and images of the firm and make it a recognizable brand. Furthermore, marketing is the best way
which helps in identifying customer's needs and requirements and meeting those needs in an
effective way so that tough competition can be given to the rivals.
TASK 1
1.1The various elements of marketing process
Marketing can be defined as the process of communication among business and
consumers in order to attain desired objectives. Marketing can be stated as the business
orientation that aims at satisfying needs of consumers and attaining satisfaction. The different
elements of marketing process of McDonald's are as follows- Analyzing market and
environment- Here, it can be stated that management of McDonald is required to carry out
proper analysis by adopting strategic tool such as PESTEL, SWOT, Porter's Five Forces and
Value Chain analysis etc. so that proper market analysis can be done (Glanz, Bader and Iyer,
2012). Identifying the target market- Further, business is required to specify its target market
segment within UK and other countries so that suitable products can be provided to them. For
instance, it can be identified that people of UK prefer Chicken burger as compared to any other
variety so the company is required to focus on producing that thing to enhance sales as well as
customer satisfaction. Setting marketing objectives- McDonald's marketing objectives involves

profit maximization both in short and long term perspectives and increasing the sales in order to
enhance the brand value image. Further, business also aims to focus on corporate social
responsibility to attain desired goals. Dealing with different marketing mix elements-
However, the main significance of dealing with different elements of marketing mix states that
needs and wants of target customer segment needs to be fully understood by the management of
McDonald's (Henley, Raffin and Caemmerer, 2011). Implementation and control- It is the last
element of marketing process which helps in assessing the level of effectiveness of marketing
tactic and also essential improvement is required within certain aspects of marketing strategy that
requires changes within internal and external business environment.
Satisfying customer needs and wants- It is essential for McDonald's to provide adequate products
and services so that consumer satisfaction can be attained.
Marketing audit- It is a systematic way through which business can plan its strategies, objectives
and thus enhance the company marketing plan to attain goals.
SWOT
Strength- Business possess effective advertisement to enhance customer base. It also enhance the
brand image of firm in market. Further, it provides best working condition for its employees.
Weaknesses- People mostly avoid it due to health reasons.
Opportunities- Business has the opportunity to grow in different developing markets.
Threats- It possess threat from local businesses.
1.2 Benefits and costs of marketing orientation to McDonald's
It can be evaluated that business enterprise is required to develop its products and
services on either product oriented approach or on marketing oriented approach. Through the
marketing orientation approach, business aims to react what customers require. Thus,
management of McDonald's is required to make appropriate decisions on the basis of customer
needs and wants to attain satisfaction (Hung and Lin, 2015). The benefits of marketing
orientation approaches are business focuses on customer centric approach i.e. business aims to
provide significance to client's needs and wants and produce the product which is desired by the
customer so that best results can be attained. Also, firm aims to enhance brand value in front of
customers that helps in increasing customer loyalty and gaining high brand image within the fast
food market. McDonald's also focuses on developing its products and services as per the needs

and requirements of customers so that they can give tough competition to its rivals (Das and
Samanta, 2015).
On the other side, marketing orientation also includes some adverse effects as one of the
main disadvantages of using this approach is that it leads to enhance the cost of the company
because it involves huge market research. In terms of using marketing orientation approach,
McDonald should have good experience in understanding needs of customers. Furthermore, in
order to gain success in this approach, latest technology should be available as well as the unique
strategy (Poolton and et.al., 2006). In addition to this ethical marketing helps in applying
marketing ethics to business process so that morale and brand image of firm can be maintained,
TASK 2
2.1 Micro and macro environmental factors influencing marketing decisions
Macro and micro environmental factors that influences the marketing decisions of
McDonald's are as follows-
Macro environmental factors
The political factors state that McDonald's functions in more than 100 countries and thus
it faces different political factors across the world. In general, it is essential for business to
comply with government regulations in regard to health and hygiene factors. Also, government is
taking strict actions against certain fast food industry because it has been increasingly noticed
that it leads to heart and cholesterol problems among people (Ruckman, Saraf and Sambamurthy,
2015).
Further, economic factors evaluates that it is essential for McDonald to make decision
whether to import raw material from outside or to buy the product loyally is one of the crucial
factor while another factor is the tax rate. It is essential for the management of company to
analyze the tariff involved in imported raw materials. Also, the rate of unemployment affects the
business as well as people are not able to increase their spending pattern.
Another factor is social factors which state that change in lifestyle of people affects the
sales performance of McDonald's. People are becoming conscious towards their health and thus
avoiding eating junk foods. Thus, it affects the sales performance of the firm in market.
In regard to this, technological factors may seem to play a very limited role within fast
food market. It can be assessed that if business employs high technology than it helps in

improving performance of management and productivity increases while saving time and
resources. For instance, installing computing devices helps in satisfying consumer’s needs
(Kotler, 2008).
Further, it is essential for the business to care about environmental factors such as air and
water pollution. For instance, McDonald's found that its polystyrene packaging are having
adverse impact on environment and thus it is essential for business to overcome such problem in
order to break the criticism which affects the sales performance of business.
At the end, legal factors such as employment and labor law, corporate law and tax
requirements etc. needs be to be considered by McDonald in an effective manner (Graa and
Dani-elKebir, 2011).
Micro environmental factors
It involves internal factors that influence the functions of McDonald's. It involves the
suppliers who are essential part of internal business.
McDonald possesses its own suppliers and they have very close relationship with them.
Thus, it is essential for the business to make timely payments and cooperate with them in
professional manner so that productivity can be improved. Furthermore, another factor that
influences business is its competitors (Hassan and Craft, 2005).
McDonald's possess certain strong competitors such as KFC, Burger King, and Pizza Hut
etc. However, all such competitor’s own good brand image and market share in order to give
tough competition to McDonald's. Thus, it is essential for McDonald to analyze its competitor’s
power and their marketing strategy with the aim to overcome the rivals. Moreover, McDonald's
is serving wide range of customers daily. Hence, firm provides best value to their customers as
they are their first priority and tries to ensure maximum satisfaction (Havaldar, 2010). It involves
all the stakeholders in business that helps in satisfying the needs and wants of customers and
attain satisfaction.
2.2 Segmenting McDonald's products in different markets
Market segmentation can be stated as the way in which the whole market is divided into
varied parts such as geographic, demographic and psychographic segmentation.
In geographic segmentation it states that the entire market is divided into various parts.
For instance, the entire geographic area involves wide range of customers and thus from such

market target consumers need to be selected by McDonald's by keeping in the mind their needs
and preferences (Zhuang and et. al., 2006). However, because its wide applicability such
technique has been effectively used by businesses.
Furthermore, another segmentation criteria involves demographic segmentation in which
the market is divided into different demographic factors such as income, education and age. For
instance, McDonald is required to undertake income and religion demographic factors while
providing food products to their target customers.
Moreover, psychographic segmentation can be stated as the market which is divided into
different factors such as attributes, beliefs and attitude of people etc. McDonald's undertakes
such segmentation techniques because it has been analyzed that taste and preference of people
differs from culture to culture variation. Thus, it is essential for business to provide suitable
products as per their requirements (Brooksbank, 2001). For instance, McDonald does not provide
beef related products within India as it affects the culture of people living in India. Thus, because
of such reason more number of people prefers to consume the products of company and in regard
to this they are gaining high market share and profitability.
2.3 Choosing target strategy for a range of products and services
There is a wide range of products and services available within McDonald's menu such as
Burgers, Fries, drinks, muffins etc. Moreover, there are different targeting strategies adopted by
firm in order to carry out their business practice. Undifferentiated targeting strategy can be stated
that in such strategy business does not serve its product within one particular market or to
specific consumers (Caemmerer, 2009). However, through following such strategy business tries
to capture larger market share within particular geographic area. For instance, FMCG
organizations widely used such technique. Another tactic is concentrated marketing strategy that
states that it is specific and within it unique consumers are targeted by business to use the
products. For instance, BMW adopts such technique because its products are high price and are
connected with the lifestyle of people.
At last, multi-segment strategy helps business to set wide range of products to attract
target people as per their taste and preferences. Thus, such strategy has been adopted by
McDonald's management as business offers wide range of products i.e. burgers, fries and
desserts etc. to attract people with different needs and wants. For instance, business provides
burgers to huge customer base and as per their income level and gain high sales and profits.

However, through adopting such strategy McDonald's attains huge success within market
(Ferguson and Hlavinka, 2007), In differentiated segmentation business focuses on two or more
market segments and thus develop proper market mix for varied segmentation.
2.4 How buying behavior affects the marketing activities in different buying situations
The behavior of buyer can be stated as the pattern of people purchasing the products and
services and their factors that influences the buying decisions of other people. In regard to this, it
affects the buying behavior of consumers. Therefore, it is essential for the marketing manager of
business to determine the different buying situations of people in order to attain profit
maximization. Thus, in order to attract people business is required to develop attractive
advertisement and involve effective logo and characters so that buyer behavior of people
enhances (Freytag and Munksgaard, 2011). For instance, the marketing manager of McDonald is
required to carry out proper market research upon the buying habit of people such as they prefer
coming to McDonald with their family or friends because of its unique product line and taste of
burgers. Thus, such factor influenced the buying pattern of people and enhances the brand image
of firm in market.
Moreover, the different feedback collected from buyer behavior and business unique
selling price helps the marketing team of McDonald to develop an advertisement approach that
stimulates the target people to visit the restaurant. Further, there are different other factors such
as influence groups, opinion leaders etc. that influences the buying decision of people. Therefore,
marketing team of business also focuses upon such factors by providing them good quality taste
and service that is not given by other competitors (Gönül and Carter, 2012). Thus, it helps in
increasing the brand value of firm in terms of market share and profitability.
2.5 Proposing a new positioning strategy for selected product or service
It can be evaluated that positioning a product helps in creating a distinct image in the
minds of consumers. Thus, through developing a unique image of product or business among
target market helps in differentiating the product and services that from others. For instance, taste
and price range of Burger is the best positioning strategy that influences the target people to
consumer the product. Technology is one of the important way that helps in positioning the
product in the minds of consumer (Yannopoulos, 2011). For instance, McDonald undertakes
innovative technology such as computing devices for billing so that customer does not have to
wait for long time.

Further, quality is another factor that is used by business in order to differentiate the
products from that of competitors. For example, McDonald advertises their products by adopting
the features of quality and taste to grab attention of clients. Thus, quality is the best positioning
technique which influences the target market to purchase the product. Also, quality of service
influences the positioning the product. It is essential for business to provide best quality of
service delivery to clients as it creates a good image on the minds of clients (Cooke, 2000).
TASK 3
3.1 How McDonald's products are developed in order to make sure that competitive advantage is
sustained
It can be evaluated that businesses are required to bring continuous changes in the
product and services so that competitive advantage can be attained. Thus, in order to sustain
competitive advantage within McDonald firm is required to expand its product line instead of
focusing on same product. By following product development company will be able to beat their
competitors and get major position in the market. Furthermore, they need to conduct market
research in order to get information about the market trends as well as the needs of customers. At
the last stage, McDonald is focused on monitoring the ability of its products that are available in
the market in order to identify the loopholes exist in their product and services (Belohlavek,
2008). Due to this aspect, pilot testing is conducting by the organization that helps in launching
new product in the market. By considering these all the aspects that are mentioned above,
organization will be able to gain competitive advantage over rivals such as KFC, Burger King
etc..
3.2 Explaining distribution strategies
There are different methods that help in distributing the product and service to consumers
with the objective to gain customer convenience and satisfaction. McDonald is required to
undertake such distribution methods that help in satisfying the needs of target market.
McDonald's uses franchisee distribution channel which is commonly used within chain stores in
order to distribute products as it avoids investment and liability of operating a chain. Here,
ownership is not sold to the person who operates the chain. Thus, the main advantage of
undertaking such type of method helps in reaching target base and providing them products
conveniently (Codita, 2011).

Also, it fulfills the main aim of business i.e. of reaching the clients quickly and enhances
sales. Thus, McDonald is using such model for distributing the product line and which is the
main reason behind its success. While, there is another strategy such as indirect channel of
distribution in which it involves intermediaries i.e. wholesalers and retailers. There is wide range
of FMCG businesses who sells their products through such distribution channel in order to reach
the customers (Doyle, 2009).
3.3 Explaining pricing strategies
Pricing can be stated as the process that helps business to set the price at which they are
able to sell its products and services and develop marketing plan. It is essential for business to
undertake best pricing strategy so that it influences customers to regularly visit the store. Thus,
the marketing team of firm is required to set such prices of their products that attract consumers
to purchase the product and improve the profitability of firm. Also, McDonald should analyze its
objectives and market conditions such as if there is prevailing recession within the country then
firm is required to penetrate its prices so that more number of consumers can be attracted to buy
the burgers at cheap prices (Ennew and Waite, 2013).
McDonald's undertake price penetration strategy in which it sells the products at a low
price with the aim to capture larger market share. It is also feasible for businesses whenever they
are entering into new market with new product. McDonald undertakes such strategy and provides
products such as burger and fries at affordable prices in order to gain satisfaction. Also, setting
prices as per market conditions and analyzing the purchasing power of individual helps firm to
gain success (Hoffman and Bateson, 2010).
3.4 How promotional activity is integrated to achieve marketing objectives
Promotional activity is the best method that helps in carrying out effective marketing
strategies through advertising, sales promotions and mouth publicity. Thus, all such methods
helps firm to effectively promote company's products among target consumer in order to attain
marketing objectives. McDonald promotes its products by producing television advertisement so
that wide range of products can be promoted in order to enhance sales. With the help of
advertisement in television it influences wide range of customer by showing unique images of
products that are appealing in nature (Kardes, Cronley and Cline, 2012).
Business also promotes its products on social media in order to popularize the brand
among people. McDonald uploads its menu items upon its Facebook page and regularly updates

the offers and discounts so that it attracts people and also influences them to visit the store.
Moreover, McDonald also adopts sponsorship program in which firm sponsors particular sports
events that by placing hoardings of visual advertisements on t-shirts, trophies etc. to provide
information to people regarding the product range and thus integrate in order to attain marketing
objectives of firm (Greenberg, 2010).
3.5 Additional elements of extended marketing mix
There are varied additional elements available in the extended marketing mix such as
people, process and physical evidence.
People involve the human resources and management of McDonald that helps in
exposing the organizational culture to customers and other people to attain marketing objectives.
However, HRM is highly responsible in regard to select dynamic employees for working within
different departments so that best customer services can be delivered (Martin, 2009). Also,
proper training, mentoring and coaching should be given time to time in order to enhance the
skills, knowledge and capabilities of employees.
Further, process is the way through which the product is delivered to consumers. For
instance, McDonald is required to undertake systems such as uniformity of offering products,
service delivery and service consumption. However, business is required to develop its processes
and simplify it so that they can reduce the waiting time for clients and gain satisfaction.
Another method is physical evidence that involves infrastructure and ambiance of
restaurant which should be neat, tidy and safe (O'Cass and Julian, 2003). Also, the services
delivered to people should be friendly and quick so that it attracts customer to visit the restaurant
regularly.
TASK 4
4.1 Plan marketing mixes for two different segments in consumer markets
Following are the two different marketing mix segments within consumer market for
McDonald involve both for high income and low income people.
Firstly, for high class people, costly products will be served to them as per their lifestyle.
While, the price will also be kept high for such products that are targeted to high class individual.
However, in order to distribute the product McDonald owns franchisee model so that it can
conveniently reach the target market and enhance the sales of business (Julian, 2003). In addition

to this, business here focuses on promoting the products through social media or internet and
business magazines to attract targeted people.
On the other hand, marketing mix for low income people states that here the product
provided are of low prices as people cannot afford high range products. Also, price of the
product is kept to be minimum in order to ensure that lower class people can afford it. However,
the place of distribution is the same i.e. franchisee method because firm does not want to lose its
market share and brand image. At the end, promotion of product is done through newspapers,
leaflets and television so that McDonald can attain customer satisfaction (Rhodes, 2011).
4.2 Illustrating differences in marketing products and services to business rather than consumers
Marketing of products and services in terms of business and consumers are different from
each other. Main difference between both type of marketing is that organization needs more
investment to attract customers by making promotional plan, while, in case of business clients
McDonald needs less amount of investment as compared to attracting customers. In terms of
conducting marketing for business clients, products has been sold in bulk quantity, while,
customers purchases products in single quantity or more but less than business clients. At the
time of doing marketing for customers, emotional factors is considered as it helps in attracting
more number of customers while in case of business clients, emotional factor does not work and
both parties need to make practical decisions (ADVANTAGES AND DISADVANTAGES OF
ALTERNATIVE CHANNELS OF DISTRIBUTION. 2012). Thus, these are the major differences
in between consumer marketing and business to business marketing.
4.3 How international marketing differs from domestic marketing within McDonald's
It can be evaluated that there are wide differences between international and domestic
marketing as the scope of international marketing is high as compared to domestic marketing. In
international market, business has a chance to provide wide range of products to satisfy the needs
of clients. While, at the time of doing domestic marketing availability of wide range of products
is less as compared to international marketing. In terms of political factors organization needs to
follow all the rules and regulations of the government of that country while operating in
international market (Marketing strategy. 2009). Whereas, political factors have minor
importance at the time of conducting business in the domestic market. In case of international
marketing many languages and different types of culture are needed to be considered as they put