Marketing Mix Model Analysis and Strategic Decisions for McDonald's

This report provides a comprehensive analysis of McDonald's marketing strategies using the marketing mix model. It begins with an introduction to marketing and its importance in business, then focuses on McDonald's as a case study. The report examines the 7Ps of the marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence) to understand how McDonald's positions itself in the market. It explores the company's diverse product offerings, pricing strategies, global distribution, promotional activities, operational processes, and customer service. The report critically evaluates the marketing mix model for developing marketing decisions, discussing both its positive and negative impacts on management. The analysis includes a situational analysis of McDonald's, highlighting how the marketing mix model aids in analyzing the market situation and developing effective strategies. The report concludes by emphasizing the importance of situational analysis for effective marketing decision-making, particularly for achieving organizational objectives and sustaining growth. The report references several academic sources to support its findings.

Marketing Across Boundaries

Table of Contents
INTRODUCTION...........................................................................................................................1
Marketing Mix model to analysis business situation ............................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing is the process of introducing products and services to desired customers of the
organisation. Main motive of creating marketing is to capture business market and also
customers from market. In this present report relevance marketing concepts and model which is
associated with situational analysis is to be discussed. Chosen organisation in this report is
McDonald's (Dwivedi and McDonald, 2018).
Marketing Mix model to analysis business situation
marketing mix model of McDonald's organisation
McDonald's is a company which is well known for its huge supply of fast food services.
Company sells variety of quality food and beverages throughout the world which is in more than
100 countries (Dudovskiy, 2016). Therefore, to analyse their market situation marketing mix
model has been applied and its factors are as follows-
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Product- with name itself McDonald's is known as world leading fast food restaurants
which sells breakfast, burgers, fries, chicken, sandwiches, snacks, desserts, shakes, salads and
drinks (Dawes and et.al., 2018). McDonald's has diversified products which they offer to their
customers. Such products are Egg McMuffin, Egg white delight McMuffin, Hotcakes, Hash
browns, quarter pounder with cheese, double quarter pounder with cheese, double cheeseburger,
vanilla shake, hot fudge sundae, McCafe, and many more. Therefore, company provides variety
of products to customers which helps company to attract them.
Price- McDonald's has high bargaining power of customers. Company has wide range of
their pricing techniques which includes valure pricing, going rate, cost plus pricing, price
discrimination. These are the most widely used techniques of McDonald's. Therefore, to retain
customers, companies are doing everything to retain them therefore, company also providing
products which is in fair range (Filbert and Anthony, 2018). To engage customers in organisation
they are also providing low range of products by which customers engage in their organisation.
They do huge investment for developing food quality in their organisation. McDonald's has
strong brand image therefore it is important for them to maintain their brand image by engaging
customers in organisation (Tomczak, Reinecke and Kuss, 2018).
Place- place refers to distribution. McDonald's is a global brand which has their business
in worldwide. Therefore, they have effective strategies to provide availability of their products
across the places in which they develop business operation. Company have high range of
distribution strategy to provides its products to customers. To attract customers, McDonald's do
home deliver of their products and open their restaurants 24 hours per day. There are many local
brands and international brands who offered substitute products but this does not affect sales of
the McDonald's.
Promotion- McDonald's have effective advertising strategies which helps them in
attracting customers in organisation. McDonald's is a well-known brand and also has captures
overall customers of the business market therefore, company have to do effective advertising
which is with newspaper, magazines, internet and by directly communicate customers through
social media (De Mooij, 2018). McDonald's also use effective techniques for the promotion of
their sales. This promotion technique overall helps them in attracting customers and to develop
loyalty from them.
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Process- to achieve business growth McDonald's do set in activities which increases their
overall performance in providing the best type of services to customers of organisation. Food
preparation of company is transparent which attract customers in organisation by which
customers will easily able to see food preparation. This strategy of the company is so effective
which overall helps organisation in developing loyalty from them.
People- McDonald's generally have good range of people in organisation. As a report
they hired approximately 97000 people to work in their organisation in UK. McDonald's also
invest huge amount money to provide training and development activities for their employees.
Infect McDonald's invest ₤40 million to provide training to their employees (Franceschelli,
Santoro and Candelo, 2018).
Physical evidence- this refers to physical environment evidence of the company in which
included factors are visitors and customers. This physical evidence is the process which creates
an effective impression on customers so that performance and profitability got increases of
organisation in business market.
Critical evaluation of business model for developing marketing decision of marketing
manager
By developing situational analysis of McDonald's company it is argued that marketing
mix model helps management in analysing market situation of the company. This helps
managers both positively and negatively in developing decisions for organisation.
Its positive impact is that by creating situational analysis of the company, marketing
managers will able to develop effective budget of products and also helps in analysing product
which has more demand from customers which helps them to sustain growth of the organisation
in business market (Dolnicar, Grün and Leisch, 2018). It analyses whole situation of organisation
regarding their price, process, products, people, physical evidence. Therefore, for management it
helps in developing effective strategies which helps in achieving organisational objectives.
Negative impact of developing situational analysis is that, whole planning of organisation
will have to change and marketing managers has to develop new effective policies to promote
and to increase profitability of the products. Marketing mix model only provide analyse of
companies strategies but in does not provide macro environmental analysis of business. Political,
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economic, social, technological, legal, environmental factors are need to be analysed for better
development of strategies in an organisation.
CONCLUSION
From the above study it can be concluded that marketing plays an important role in the
organisation for developing decision. This report has covered situational analysis of two
organisations that McDonald's. Further, in this report impact of situational analysis for company
is explained. Therefore, it can be concluded that for developing effective marketing strategies,
managers will have to do situational analysis of the business for better performance of the
organisation.
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REFERENCES
Books and Journals
Dawes, J and et.al., 2018. Forecasting advertising and media effects on sales: Econometrics and
alternatives. International Journal of Market Research. p.1470785318782871.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Dolnicar, S., Grün, B. and Leisch, F., 2018. Step 9: Customising the Marketing Mix. In Market
Segmentation Analysis (pp. 245-254). Springer, Singapore.
Dwivedi, A. and McDonald, R., 2018. Building brand authenticity in fast-moving consumer
goods via consumer perceptions of brand marketing communications. European Journal of
Marketing.
Filbert, A. and Anthony, W., 2018. The Impact of Marketing Mix of 4Ps (Product, Price, Place,
and Promotion) towards Repurchase Intention with Customer Satisfaction as the mediator:
In the Case of Uniqlo. iBuss Management. 6(2).
Franceschelli, M.V., Santoro, G. and Candelo, E., 2018. Business model innovation for
sustainability: a food start-up case study. British Food Journal. 120(10). pp.2483-2494.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Planning the Marketing MixMarketing
mixMarketing mix planning. In Strategic Marketing (pp. 171-221). Springer Gabler,
Wiesbaden.
Online
Dudovskiy, J., 2016. McDonalds 7Ps of Marketing. [ONLINE]. Available through
<https://research-methodology.net/mcdonalds-7ps-of-marketing/>
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