McDonald's Marketing: Principles, Segmentation, and Strategies

This report provides an in-depth analysis of McDonald's marketing principles and strategies. It examines the elements of the marketing process, the benefits and costs of marketing orientation, and micro and macro environmental factors affecting the business. The report proposes segmentation criteria and targeting strategies, discusses how buyer behavior influences marketing activities, and suggests a new positioning strategy for new products or services. It also explores how products and services are developed to sustain competitive advantage, explains distribution arrangements for customer convenience, and analyzes pricing strategies and promotional activities. Additionally, the report recommends a marketing mix for different segments, differentiates between marketing products and services to B2B and B2C markets, and compares international and domestic marketing strategies. The analysis uses McDonald's as a case study, providing practical insights into marketing principles in action. Desklib offers this solved assignment and many more to help students excel.

MARKETING
PRINCIPLES

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1 Elements of marketing process..........................................................................................................3
1.2 Evaluate the benefits and cost of marketing orientation.....................................................................4
2.1 Micro and macro environmental factors............................................................................................4
2.2 Propose segmentation criteria............................................................................................................5
2.3 Choose targeting strategy..................................................................................................................5
2.4 Buyer behavior affects marketing activities in different situation......................................................5
2.5 Propose new positioning strategy for new product/services...............................................................6
3.1 How product/services are developing to sustain competitive advantage............................................6
3.2 Explain distribution arrange for customer convenience.....................................................................7
3.3 How price set to reflect an organization objectives and market conditions........................................7
3.4 Promotional activity to achieve marketing objectives........................................................................7
3.5 Additional marketing mix for McDonald..........................................................................................8
TASK 2.......................................................................................................................................................8
4.1 Recommend marketing mix for two different segments....................................................................8
4.2 Difference in marketing products and services to B2B and B2C.......................................................9
4.3 Difference between international marketing and domestic marketing and strategy to develop market
in foreign market.....................................................................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCE............................................................................................................................................11

INTRODUCTION
Marketing principles are the fundamental tool which helps to achieve desired outcomes
of the business. It includes various methods through every business perform distinctive activities
to attract potential customers (Kubacki, Rundle-Thiele and Buyucek, 2015). Present report is
based on McDonald which provides food products in different parts of the world. Present report
covers various elements of marketing process which follows by cited firm. Furthermore, it
explains about benefits of marketing orientation and cost benefits for the organization. Moreover,
it covers macro and micro environmental factors which affects to the business environment. In
addition to this, it covers distribution arrangement of the business which is can be convenience to
every customer. Beside this, report analysis additional elements of marketing mix for the chosen
enterprise. At last, it covers plan and recommend mixes for the two different segments in
consumer markets. In respect to this, it explains difference between international and domestic
marketing strategy.
TASK 1
1.1 Elements of marketing process
Marketing of the McDonald considered various activities which helps to achieve
competitive advantages. In this context, includes product design, pricing strategies and
advertising (Strauss, 2016). Theses aspects can be done by process of marketing which includes
various elements. Hence, it helpful to achieve success of the cited firm. In respect to this, below
are the elements considered in marketing process of cited firm:
 Research: In order to achieve competitive advantage, McDonald want to
introduce new product in marketplace. In this context, first thing that can be done
by the business is research. In this, they identified actual needs and requirements
of the market. In addition to this, company find that what thing is the best for
achieve targets of the organization (Lefebvre, 2013).
 Strategy: Once McDonald find their data, they can make strategy for standing
product in marketplace. It will help to beat with competitors and make success in
the market. After research, the business design about the strategies which assist
to achieve goals and mission.
 Planning: After determining strategy, cited firm can plan for development of
product. It includes sales forecasting, financial planning and communication
strategy which defines how to achieve business goals. It also tracks with time to
time so that organization cannot fail to achieve business targets (Gordon, 2013).
 Tactics: At last element, organization determine where planning is to be
implement and what circumstances would be taken. It will aid to McDonald as
they easily compete with the competitors and attract potential customers.
1.2 Evaluate the benefits and cost of marketing orientation.
Marketing orientation

Marketing orientation is a model through every business can focus on delivering products
design according to customers’ requirements. It helps to complete their needs, wants and desires
through offering them effective product and services. McDonald conduct market research
through they can satisfy customers’ needs which is main motive of their organization. It helps to
them to make better position in the market and enhance brand value of their products (Tournois
and Aoun, 2012).
Benefits and cost marketing orientation
Marketing orientation helps to attract customers easily and it make focus on customers’
needs. This means it assist to McDonald that they can match products with customers’ needs and
satisfy them easily. In addition to this, it is beneficial to them as they can reduce their expenses
which increase their cost. With the help of marketing orientation, enterprise concentrate on
customers’ so that they no need to negotiate customers. All these aspects help to them to make
long-term profitability in the business. Thus, they can occur more profits for their firm which
helps to reach for the vision of the company (Walker, 2015.).
2.1 Micro and macro environmental factors
There are two types of environmental factors which affects to the business such as micro
and macro. Micro factors create impact on the organization within the firm and macro factors
affects to the enterprise outside the business. In term of Micro factors, below are the elements
includes which create impact on the McDonalds operations:
 Suppliers: Suppliers have power to control success of the business because they provide
raw-material to McDonald. Thus, the cited firm need to make relations with suppliers so
that they can get raw-material time to time (Morgan, 2015).
 Customers: Ultimate goals of the business is to satisfy customers’ needs and
requirements. In this context, McDonald have direct impact towards the business
operations. This is because, when customers satisfying they buy products and services
again and again.
On the other hand, below are the macro factors which affects to the business operations:
 Political factors: Every country has government who make certain rules and
regulation regarding tax rates (Bryant, Courtney and Lefebvre, 2014). If government
increase tax rates McDonald need to pay more taxes. Similarly, if government
decrease their tax rates cited firm pay less taxes. As resultant, it creates directly
impact on profits of the firm.
 Economic factors: Economic factors includes interest rates, which create major
impact on the business. This factors generate major influence on the production and
decisions of the McDonald.
 Social factors: Different region has distinct culture that effect to McDonald
environment. In this context, cited firm has to make products which not harmful for
society (Pauwels, Erguncu and Yildirim, 2012). In addition to this, they need to make
products to keep customers perception towards the products. If they not follow
culture it creates negative impact on the business.

 Technological factors: McDonald need to use advance technological factors so that
they can easily attract customers. Upgrade technology help to reduce cost of expenses
towards the business (da Silva and Mazzon, 2016).
2.2 Propose segmentation criteria
Market segmentation is a process through organization can divide whole market in
various sub-parts. McDonald can divide their market in term of demographic, psycho graphic,
behavioral and geographic. Cited firm wants to introduced their new product as Manchurian in
Australia market. In respect to this, they can use demographic and behavioral segment which as
follows:
 Demographic segmentation: In this segmentation, McDonald segment Australian
market on the basis of age group. This is because, they mainly attract customers who are
college students and young generation (Borst, 2014). In other words, they can supply
their products to people who generally prefer low price products. Through this basis,
cited firm can attract Australian customers easily.
 Behavioral segmentation: In this type of market segmentation McDonald can segment
whole population on the basis of behavior, usage and decision pattern. For instance,
young people prefer Manchurian but old generation not using generally this type of
products. This type of segment generally used to achieve young people.
2.3 Choose targeting strategy
Targeting strategy is used to focus on ultimate customers on which business wants to
merchandise products and services (Levy, 2012). It is the process in which McDonalds select their
potential customers to whom business wants to target for selling their products and services.
There are various ways through cited firm can target to ultimate customers. In this context,
includes undifferentiated targeting strategy, differentiated targeting strategy and concentrate
targeting strategy. From these the organization use undifferentiated marketing strategy as
follows:
Undifferentiated marketing strategy
McDonald understand that there is no strong difference among customers’ characteristics
so that they use same thing for all people. Under this, strategy company will determine and
develop single marketing mix for whole market. This is use by cited firm for targeting customers
of mass-market (Lin and et.al., 2012). In respect to this, chosen enterprise use one marketing mix
for entire market. This is because they assume that all customers have same needs and wants. It
is beneficial for chosen business because it reduces lower cost of marketing research and only
single channel considered for distribution. Hence, company use this strategy to design products
to attract potential customers towards the new products of the organization.
2.4 Buyer behavior affects marketing activities in different situation
When consumer purchase products and services from the organization there are various
marketing activities considered in McDonald. Buyer behavior is made by internal and external
factors which is affects the marketing strategy (Gamburzew, Darcel and Darmon, 2016). Cited

firm has various marketing activities which is largely depends on buying behavior of customers.
In this context, following are the buying behavior includes which affects to the business
decisions:
Complex buying behavior: In this term, customers highly involved and spend money to
purchase products and services by McDonald. Before buying any products and services they do a
lot research to gain preference of other people. In this, customers ensure quality and price for
particular products and services (Freeland-Graves and Nitzke, 2013).
Variety seeking behavior: In respect to this, customers have only few money for
investment and there are more products which has same kind of features. Generally, customers
compare to the products from another and choose best from the point of quality and cost.
2.5 Propose new positioning strategy for new product/services
McDonald give importance to the new positioning strategy which helps to achieve brand
image for their new product in Australia market. In this process organization, can deliver
message regarding product and services to customers (Stead, Arnott and Dempsey, 2013). For
development of new product cited firm use following positioning strategy:
 Public relation: Through public relation chosen enterprise can make their position in
marketplace. In this context, McDonald can offer different services so that they can
enhance public relations. In addition to this, they can provide discounts and other
facilities for development of their products.
 Advertisements: With the help of advertisement, chosen organization can convey
important message to the customers (Strauss, 2016). McDonald can use various
advertisement such as newspapers, magazines and pamphlets.
 Sponsorship: This is new positioning strategy through cited firm can ensure higher sales
and created emotional support towards the people. In respect to this, they can make
products in fast servicing, low pricing and long term profitability (Bryant, Courtney and
Lefebvre, 2014).
3.1 How product/services are developing to sustain competitive advantage
In this days, different techniques can be used by the business which helps to achieve competitive
advantages for their organization. In respect to this, below are the strategies can be used by
McDonald through they can sustain competitive advantages:
Products and brand: Through making brand image of the products, McDonald can achieve
sustainable competitive advantages for their business. In order to make, product effective they
can include physical benefits in existing products through business can achieve high growth as
compare to competitors (Tournois and Aoun, 2012).
Product development: With the help of product development McDonald can achieve competitive
advantages for their business. In this context, they can develop product through follows some
steps. It includes idea screening, concept development, business analysis, testing and technical
implementation.

3.2 Explain distribution arrange for customer convenience
There are various types of distribution channel which can be used by McDonald for
customers’ convenience. Organization have to choose those channels which is available for
customers’ convenience so that they can easily access product anywhere (Morgan, 2015). In this
context, below are the channels includes which can be used by chosen enterprises:
Franchising: McDonald can establish their store in different areas so that customers can easily
access services and products where they feel convenience. For instance, they determine new
stores in Australia market where they can easily attract potential customers. In addition to this,
customers can purchase products their nearby stores easily.
Personal selling: On the other hand, McDonald can also use personal selling for selling products
to customers. In this method, customers have choice as they can get products at their own place
(Bryant, Courtney and Lefebvre, 2014). Further, they have no need to anywhere for purchase
products and services.
3.3 How price set to reflect an organization objectives and market conditions
Price strategies could be set by different types through organization can achieve their
objectives. In respect to this, includes penetration pricing, skimming pricing, premium pricing
and economy pricing. From the various types of pricing strategies, McDonald can use
penetration pricing strategy through they can offer their product at very low price than the
competitors. As resultant, they can attract potential customers and gain market share very high.
At starting level, it helps to the business as they can attract all types of people whether they are
high income level of not. Thus, they will be able to enhance growth of their business as well as
brand image (Pauwels, Erguncu and Yildirim, 2012)..
3.4 Promotional activity to achieve marketing objectives
Promotion is also marketing mix elements which can be done by various methods. In
McDonald, promotional activities such as advertising, public relations, personal selling and sales
promotion help to achieve marketing objectives. In this context, below are the activities that can
be used by chosen enterprises:
 Advertisement: Marketing department of the McDonald promote to the activities which
helps to achieve marketing objectives. In this, they can advertise their products in
newspapers, magazines and other pamphlets (Kubacki, Rundle-Thiele and Buyucek,
2015).
 Personal selling: In order to sale products personally, chosen organization can enhance
their performance in various marketplace together. In respect to this, they can contact
every customers’ and satisfying their requirements.
 Public relations: With the help of public relations, McDonald can enhance their business
in new market. In respect to this, they will able to offer discounts and other facilities to
customers. This will help to them as customers refer to other people towards the business
products and services (Strauss, 2016).

3.5 Additional marketing mix for McDonald
Marketing mix helps to promote products in new markets. In this context, includes
product, price, place and promotion. In now days, additional elements include in marketing mix
of McDonald which are as follows:
 People: Management and employees of McDonald are very important source for
marketing activities. They satisfying customers through offer them effective services and
products. In addition to this, management of the business also responsible for employees
of firm. This is because, they provide them coaching, training and various other facilities.
It will helpful to enhance their skills and performance towards the objectives of the
enterprise (Stead, Arnott and Dempsey, 2013).
 Process: Marketing activities of McDonald connect with the various fundamentals
through organization offer products and services to customers. In respect to this, they
adopt process such as offering product/services, product/service delivery and
consumption of this product/services.
 Physical evidence: It includes products/service delivery, infrastructure and facilities
provide to customers. In respect to this, cited firm need to provide all service and
products very quickly and friendly so that customers again come towards the organization
products and services. Physical evidence considered store facilities should be nice,
effective and healthy (Morgan, 2015).
TASK 2
4.1 Recommend marketing mix for two different segments
In respect to this, marketing mix considered in Australian market on the basis of
demographic and behavioral segment which are as follows;
Demographic segmentation
Product In order to develop the new product of
McDonald, offer Manchurian in their menu
for Australian market.
Price For development of new product, chosen
business can use penetration pricing strategy
so that they can offer products and services at
low price to attract potential customers
(Bryant, Courtney and Lefebvre, 2014).
Place In order to develop the new product,
McDonald offer product in Australia market.
Promotion For promoting the products and services, cited
firm can use various strategy such as
advertising, personal selling and public
relations.

Psycho graphic segmentation
Product In new product development cited firm can
offer product Manchurian in Dubai on the
basis of buyer behavior and lifestyle.
Price McDonald use same pricing strategy as to
demographic segmentation. They can use
penetration pricing strategy. It will helpful to
them as they can attract those customers who
have low income level.
Place Chosen enterprise can establish their products
and services at new market of Dubai. They
can establish new stores (Pauwels, Erguncu
and Yildirim, 2012).
Promotion McDonald can use same promotional strategy
as demographic segmentation. They can
promote their products in Dubai market
through public relation, personal selling and
advertisements.
4.2 Difference in marketing products and services to B2B and B2C
Different types of customers have distinct needs and demands. Thus, McDonald need to
develop the products according to market demand. In this context, below are the difference in
marketing of products and services to B2B and B2C:
Basis B2B B2C
Meaning B2B means selling the products
and services by one business to
other organization.
In B2C means selling the products
and services to ultimate customers
for their personal use.
Marketing McDonald have no need to
marketing for sell products and
services to business. This is
because, their aim to satisfying
ultimate customers.
However, chosen enterprise
marketing for their products and
services through offering them
discount and other benefits (Bryant,
Courtney and Lefebvre, 2014).
4.3 Difference between international marketing and domestic marketing and strategy to develop
market in foreign market
Basis International market Domestic market
Meaning International marketing means
selling the products and services
outside the boundaries of country.
Domestic marketing means selling
products and services within
country.
Purpose Organization has a purpose to
enhance market share through
developing products in foreign
Enterprise has purpose through
domestic marketing to fulfil basic
requirements of the people within

market (Kubacki, Rundle-Thiele
and Buyucek, 2015).
the place.
Documentation In international marketing
McDonald has various
documentation required.
In order to develop product in
home country, cited firm has very
less requirements of
documentation.
For implementation of marketing activities in foreign market, McDonald can use various
strategy. In this context, they can recruit sales agents, developing franchising and make other
physical stores. In respect to this, chosen business can enhance their market share in various
parts of the world (Bryant, Courtney and Lefebvre, 2014).
CONCLUSION
From the above report, it can be concluded that, elements of marketing process are very
helpful to develop new product in different market. In respect to this, cited firm conduct research
program and develop various strategies which helps to the. Furthermore, it can be summarized
that marketing orientation is play major role to sustain competitive advantages in the business. In
addition to this, it included micro and macro environmental factors that affect to the business
decisions. In respect to this, macro factors highly affect to the marketing activities on the basis of
political, environmental, economic and social factors. Moreover, report covers segmentation
criteria on the basis of demographic and psychographic. In this, chosen business develop their
new product on the basis of age group to target all the people through same method. At last, it
explained about the difference between domestic and international marketing through
organization can achieve profits from different region.
REFERENCE
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