Marketing Principles: Analysis of McDonald's Marketing Strategies

This report provides a comprehensive analysis of marketing principles, using McDonald's as a case study. It begins with an introduction to the core elements of the marketing process, including environmental scanning, segmentation, targeting, and positioning. The report evaluates the benefits and costs of a marketing orientation for McDonald's, emphasizing customer satisfaction, service, and customer care. It explores the micro and macro environmental factors influencing marketing decisions, such as demographic, economic, and technological factors. The report then delves into market segmentation, proposing criteria for different product markets, and examines targeting strategies, including cost leadership and product differentiation. Buyer behavior is analyzed in various buying situations, and new product positioning strategies are suggested. The report further discusses product development for competitive advantage, distribution strategies for customer convenience, pricing strategies, and promotional activities within the marketing mix. Additional elements of the extended marketing mix are also explored. The report concludes by planning marketing mixes for different consumer segments, differentiating between B2B and B2C marketing, and highlighting the differences between domestic and international marketing approaches. References are included to support the analysis.

MARKETING PRINCIPLES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
AC 1.1 The various elements of the marketing process..............................................................1
AC 1.2 The benefits and costs of marketing orientation for McDonald's restaurant..................2
TASK 2............................................................................................................................................2
AC 2.1 Macro and micro environment factors which influence the marketing decision............2
AC 2.2 Propose segmentation criteria to be used for products in different market....................3
AC 2.3 Choose a targeting strategy of a selected product and services......................................4
AC 2.4 Demonstrate how buyer behaviour affects marketing activities in different buying
situations.....................................................................................................................................5
AC 2.5 Propose new positioning for selected new products/services.........................................5
TASK 3............................................................................................................................................6
AC 3.1 Explain how products are developed to sustain competitive advantage........................6
AC 3.2 Explain how distribution in arranged to provide customer convenience.......................7
AC 3.3 Explain how prices are set to reflect an organisation objectives and market condition 7
AC 3.4 Illustrate of how promotional activity is integrated to achieve marketing objectives....8
AC 3.5 Analyse the Additional elements of the extended marketing mix..................................9
TASK 4............................................................................................................................................9
AC 4.1 Plan marketing mixed for two different segments in consumer market.........................9
4.2 Illustrate differences in marketing product and services to business rather than customer 10
Difference between B2B and B2C Marketing approach...........................................................10
AC 4.3 Show how and why international marketing differs from domestic marketing...........11
REFERENCES..............................................................................................................................12

INTRODUCTION
In this Investigation, we would discuss about to the explanation the various elements of
the marketing process and also evaluation of the benefits and costs of a marketing orientation for
a McDonald's restaurant firm. Furthermore, we have sowed micro and macro environment
factors which influence the marketing decision of business. We would take a look at proposed
segmentation criteria to be used for selected products in different markets. We would have
demonstrated how buyer behaviour affects marketing activities in different buying situations.
We will explain how distribution is arranged to provide to sustain competitive advantage.
Ultimately, this investigation covers the plan marketing mixes for two different segmentation in
consumer marketing and how and why international marketing different from domestic
marketing as well.
TASK 1
AC 1.1 The various elements of the marketing process
Marketing definition: American marketing association: Marketing is the activity, set of institution and process
of creating, communicating, delivering and exchanging offering that have value for
customers, client, partners, society at large(Aboody, Levi and Weiss, D., 2017).
 Chartered institute of marketing: Marketing is the management method, which is
responsible for recognising, anticipating and satisfy customer necessity to gain.
The marketing elements of the marketing process is the divided into four parts which are
all formulate for gaining your all targeted customers aims. In these some factors are performing
consistently. These all four steps are as following:s Environmental scanning: This approach defines about to, in the marketing process, it is
necessary to scan current scenario before having marketing process of a new product.
There are many elements from which they can use their current marketing scanning to
know about to the current demands of the products in the market(Baldarelli, 2017). Segmentation: After conducting environment scanning, there are requirements of having
segmentation of all the product which would be marketed by the company. They need to
classification of their product to targeted customers in order to accomplish there goals
and objectives effectively.
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 Targeting: The company need to target their customer in marketing process before
moving forward to the product development and marketing of these products. There are
must be targeted their all customers in terms of having effective results of their marketing
process(Bhojraj and Libby, 2015).
 Positioning: There must be a proper positioning of their product and services in the
market. In the approach company need to have position of their product and services in
the market in which they want to furnish their services.
AC 1.2 The benefits and costs of marketing orientation for McDonald's restaurant Marketing orientation and competitive advantage: Having a marketing orientation is
majorly beneficial for McDonald's restaurant in terms of generating more marketing
chain and customers in the current marketplace(Huynh, 2017). Marketing orientation
provides the customers to know about to the firm's products and service which is
necessary to get competitive advantage in the complex market nowadays. Corporation
would be able to introduce their best offers to their customers with the assistance of
orientation which would make great competitive advantage for the firm. Customer satisfaction: This is the most essential part for every firm to gain more
portability and productivity within the company. McDonald's restaurant always try to
make their customer satisfy by providing their better product and services. Marketing
orientation provides some important value by furnishing best services and offers to their
customers to satisfy their needs and demands effectively.
 Service and customer care: In this approach, there are many of the elements in the
McDonald's restaurant which provides the best services to their customers more than
their competitors in the market(Vann, 2016). Marketing orientation provides make the
firm to develop their product and services according to the customers demand and also
create value for customer care with the help of having feedback and providing quality of
product and services within the business.
TASK 2
AC 2.1 Macro and micro environment factors which influence the marketing decision
There are two type of external marketing environment which are micro and macro, these
factors are not in the control of marketers but they still making great impact on strategic
marketing strategy(Kravet, 2014).
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 Macro environment: There are different macro environmental elements which influence
the marketing decision which are demographic factor, economical factor, technological
factor, political and legal factor and social and cultural factor etc. these all elements make
micro environment of every country and every marketing decision of a firm is taken
under the consideration of all these factors, such as there mare several constitutional rules
and provision in the different-different countries which make impact on the marketing
decision by taking all the action according to the legal obligation and duty. Furthermore,
technological factor also make influence in the macro level environment by
implementing several latest and updated technology while making strategic marketing
decision in terms of generating more profitability and productivity within McDonald's
restaurant.
 Micro environment: There are also many elements of micro environment factors which
influence the strategic marketing decision(Maria, 2015). These factors are
stakeholder(corporation's own employee, suppliers, customers, inter-mediators, owners,
financiers etc. which make a great influence on marketing decision. Such as the supplier
could make a negative impact on the firm when they hold the supplies of products when
they are one of the major manufacturer of their products in the market and the buyers is
not an essential part of supplier business. The supplier's product and services is a part of
the buyer's finished enterprise.
AC 2.2 Propose segmentation criteria to be used for products in different market Segmentation criteria: This is the method which is used by the McDonald's restaurant
for creating segmentation in the strategic marketing exercises(Millo, Barman and Hall
2016). Usually, it is the process in which total market is divided into their different-
different groups. In the McDonald's restaurant there are numbers of their foods products
are featured to provide their services to their targeted customers. However, this firm also
can divide their products into various segments such as age group of children, young, old
and females preferences in the food and develop their products to their targeted
customers. Demographically criteria: McDonald's restaurant need to develop their all products and
services at the different-different region to know about to the progress of the company
and scenario of product customers satisfaction as well(Swift, 2016). They need to
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develop their foods products according to their different-different customer preferences to
their various region all over the world to provide them all reliable services which is
demanded by their customers. Demographic criteria must be divided into their
appropriate way to know local food habits and preferences and furnish them with better
test and quality in the products.
 Gender: McDonald's restaurant firm required to develop their products and marketing
strategy according to Gender segmentation. There are many female persons who is bigger
customers the business more than male customers. And also corporation need to develop
their products and marketing services according to the gender preferences.
AC 2.3 Choose a targeting strategy of a selected product and services
McDonald's restaurant is one of the largest chain by generating revenue all over the
worldwide. Firm is always focusing on provide their best product and services to meet their
customers needs and demands(Wu and Naidoo, eds., 2016). McDonald's restaurant furnish the
best food products like burgers, sandwiches, ice tea and soft drink etc. in addition to this, there
are following strategy for the firm in terms of increase their market shares and sales at various
regions. Cost leader strategy: In this strategy, McDonald's restaurant need to furnish their better
product and services at less price than their competitors to make a positive impact on
their customer's mind(Bona, 2018). The restaurant also required to examine their internal
and external barriers of production process and remove them in terms of generating more
profit in the firm. McDonald's restaurant should give offer on burger product to attract
costumes towards their burger products. Product differentiation: In this strategy, there are many of the products which are selling
by McDonald's restaurant different from their customers in context of quality and test.
They must use few refresh ingredients in making process of burger and produce it unique
to their competitors in the market. Restaurant also need to promote their products at
differentiate level form others to let their customers know their offers and tests in their
burgers products in the market to make them effective from the others in the market in
terms of increasing McDonald's restaurant market shares at several regions at all over the
world.
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 Development of core competencies: McDonald's restaurant need to formulate their core
competencies level in their sales and customer service provider team to develop their
product and services in terms of develop their competencies level in the market.
AC 2.4 Demonstrate how buyer behaviour affects marketing activities in different buying
situations Buyer behaviour: Buyer behaviour includes the factors of customers needs, requirements
and intention concerning about to buying behaviour of the customers in terms of making
their all changes in their products and services(Bernstein, 2018). Buying behaviour of
final consumers is understandable by who purchase the products form the market for their
efficient needs and requirements in the market. Environment influence:There are many environment factors who influence marketing
activities in different buying situation of McDonald's restaurant. In the McDonald's
restaurant product's their product which are suitable for various region in the different-
different situation like cold drinks are suitable for more summer, hot offices are available
for winter time, who influence the buyer to purchase different product according to their
preference and environmental suitable.
 When clients are more tending towards the service offered by the seller: McDonald's
restaurant is engaged in furnishing the best quality of fast food products and services. In
terms of make their sales and services effective(Wilson, McCabe and Smith, 2018).
Provide efficient services such as best customer services, fast product serving and no
manipulating in client purchasing decision-making etc. moreover, firm could provide
some additional benefits to the customers such as effective offers, movie ticket gift
vouchers and so on.
AC 2.5 Propose new positioning for selected new products/services
 Positioning: There must be a proper positioning of McDonald's restaurant's product to
sell there new products in the new market. It is concerned about to the selling their foods
products at various new region to raise their productivity and sales in the new targeted
market. Nevertheless, positioning approach is used for make clear though about to the
new product in the new market on which company and sales team needs to concerning in
ascertained approach. McDonald's restaurant need to formulated appropriate positioning
argument in which all the essential elements would be taken into implementation such as
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demand, target market, client's choice of action etc. and another intent in find out
approach. It is also observed that customers are more inclined towards business climate
and their product and services which define the company success in new market.
McDonald's restaurant required to develop their new products in burger criteria and add
some testy ingredients and spices to make it better(Spyropoulou and et.al., 2018).
Positioning must be cleared in terms of achieving their targeted goals and customers in
the firm. McDonald's restaurant need to changes their existing marketing strategy and
working system so that effective suitable action plan could be developed in determined
approach. The firm must formulate some strategic marketing strategy in term launch their
products in the new market and make some improvement according to the local people
preference test to make in more successive in the new region. And there also need to
implementation of proper marketing in these areas tin which McDonald's restaurant is
going to launch their new product to get effective response from targeted customers.
TASK 3
AC 3.1 Explain how products are developed to sustain competitive advantage
There are several ways in which McDonald's restaurant company can get more
competitive advantages by their product development according to their customer demand. The
McDonald's restaurant could make add some updated features and new products to gain more
competitive advantage in the firm. There are many foods products which are selling by
McDonald's restaurant nowadays at various place in the world(Datta, Ailawadi and van Heerde,
2017). There must be product development on regular basis for sustainable development for the
business in recent nowadays. There are some updates in the fast food menu in the firm to develop
the quality of products and services. McDonald's restaurant can analysis from their customer
survey in terms of gain more knowledge about their product development and essential changes
in their products and services. McDonald's restaurant need to ask their customers and employees
in the business in terms of gain more experience to develop a relevant product according to the
customers' demand and requirements to sustain efficiently in the market. They need to analyse
their product life cycle at regular basis to know about to product succession and position in the
market and also review them at regular basis. According to the survey and feedback of customers
McDonald's restaurant need to formulate a reliable strategy to modify their products and services
according to the new policies of the products. Form the data gathered from survey, the firm need
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to develop their new product strategy and implement their strategy to develop new products to
make more competitiveness in the recent market and make efforts to be more efficient service
provider in the market than their competitors. It would help the McDonald's restaurant to sustain
more competitive advantage in the market.
AC 3.2 Explain how distribution in arranged to provide customer convenience
Distribution is concerned about to the supply and demand of the McDonald's restaurant
products and services in appropriate manner(Patil and Bach, 2017). The firm must formulate
their good distribution channel of furnishing their goods and services to raise the effectiveness of
customer convenience. So the McDonald's restaurant need to setting up their new branches at
various region in the country and all over the world in order to raise the customer convenience
and productivity and sales as well. Integrated distribution channel: There must be an appropriate distribution channel in
terms of better furnishing of their products and services in effective manner to all targeted
customers within the business. All the McDonald's restaurant stores should be located at
the major place of the city and mall to show the people to their availability at various
level in the city to make them more effective in the firm(Smyth, Fellows, Liu and Tijhuis,
2016). All the stores must be filled with their all features and highly talented employees
and workers in terms of not being any fault in the business regarding their customer
convenience. McDonald's restaurant need to improve their order taking process and
make a proper order taking process of fast food and also reduce the time of production by
effective techniques to improve customer convenience.
 Franchisee: Franchisee set up of McDonald's restaurant must be in proper manner. It
should be on major location of the city and mall so that customer can easily find out the
location and take the services easily. McDonald's restaurant need to set up their all the
franchisee in major cities because these are mostly peoples requires to have fast meal.
This activities help the McDonald's restaurant to improve their distribution quality and
increase customer convenience.
AC 3.3 Explain how prices are set to reflect an organisation objectives and market condition Pricing strategy: Pricing strategy is most essential part of every organisation to know
abut their long term objectives and market condition. Pricing policy of McDonald's
restaurant must be in proper manner(Rezaei, Wee and Valaei, 2017). It is not so high to
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make their customer avoid their services and products. If prices are high of the firm then
it wants to be strong financially. So financial policies of every product must be favor in
both company and customer. Market condition: there are several market condition which influence the pricing policies
of the company. There are many competitors of McDonald's restaurant in the market who
competing them by providing best services at cheapest price. McDonald's restaurant
needs to formulate their pricing policies in terms of reduce their pricing and manage it in
the favor of both company and customer to accomplish their objectives and marketing
condition effectively. Brand image: nowadays, there are several companies who is trying to make their brand
image to attract those customers who are loyal of this brand products and have faith in
them(Burgess, 2016). McDonald's restaurant need to provide their quality of product and
services at low price to compete their competitors in the market to accomplish their
targeted objectives and achieve the best market position.
 Product life cycle: There must price of product high in the initial level of every new
product of McDonald's restaurant to generate more profitability from their new products
by maintaining their products life cycle at a good level and modify their products quality
and features at their weak level of product life cycle.
AC 3.4 Illustrate of how promotional activity is integrated to achieve marketing objectives Promotional activities: This the activities which helps any company to accomplish their
marketing objectives and targets(Babin and Zikmund, 2015). In this approach, there are
several exercises of promoting their new products and services to attract their customer to
know about their effective products and services and these all activities of McDonald's
restaurant helps to achieve their all marketing goals and objectives. Some activities are as
following: Advertising: This is the approach which is used by McDonald's restaurant to promote
their effective product and services in terms of accomplishing their marketing objectives.
Advertising is most essential part of McDonald's restaurant to know their every targeted
customers to know about to their newly launched products and services also know about
their offers and vouchers furnishing on various products and services. If McDonald's
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restaurant give their advertisement of new products in television, then their customer
would be attract to buy their products.
 Internet and online marketing: There are many ways of internet and online marketing of
McDonald's restaurant to promote their products and services at effective level. It is the
most vital alternative to promote our products and services in terms of achieve marketing
objectives and targets. McDonald's restaurant can use of this option to take online orders
of their fast foods products and also formulate services to provide door to door serve their
products and services. This all excuses would assist McDonald's restaurant to achieve
their marketing objectives efficiently.
AC 3.5 Analyse the Additional elements of the extended marketing mix
The 4p's are also known as product marketing mix. But nowadays, there are more
services comes to introduce in the market which could not justify the marketing mix. There are 3
more factors which are essential of describe marketing of services(Herrmann,nand Herrmann-
Nehdi, 2015). Which are as following: Process: McDonald's restaurant needs to strike between customisation and standrisation.
A process which is clear define for the service provider. Within this process, there should
be a defined areas in which, there customer needs and preferences must be
accommodated to furnish a new experience. This process defines about to McDonald's
restaurant product-services process must be clear at all level to determine their service
efficiency by their customers to make a positive effects on the customer mind.
 People: This is the essential part of every service marketing mix. When an individual are
providing services which is not different from the services itself. In the McDonald's
restaurant there are many employees working as a service provider, if they make any
mistake while furnishing services then it would create negative impact on the mind of
their customers at a various level. McDonald's restaurant must hire their all relevant
employee in terms of increasing their efficiency level of the business.
TASK 4
AC 4.1 Plan marketing mixed for two different segments in consumer market
Marketing mix describe about to the activities in which McDonald's restaurant must be
cleared in terms of accomplishing of its product. The elements of marketing mix are price,
product, promotion and place.
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 Product: There are two type of fast food product of McDonald's restaurant which are
most durable product using by youngster nowadays. These products are bacon roll and
burger, which are most using products of this firm(Ruben, Paparoidamis and Chung,
2015). These products must be promoted at high level to make them more productive to
the firm. In McDonald's restaurant burger is more productive to the business in terms of
generating profitability.
 Price: There are two products which prices must be not high and not so much low in
terms of generating profit to the McDonald's restaurant firm. Both product are serving at
a high level in the company outlets. So in the terms of raise their durability in the market,
company should make some attractive price policy for both products' bacon roll and
burger to increase their productivity and profitability of the firm and make these products
more popular nowadays.
 Place: youngster prefer to buy all these types of products online option because they have
a lot of knowledge of e-commerce companies process. Both products would make sure to
sell at their high level at the stores and online, adult person always buy their products and
services physically, they do not believe to buy them online method because they are not
sure about to the product quality to buy online. Online place is the best option to increase
their selling within the business.
 Promotion: Both the products must be well promote in order to increasing their selling
and productivity within the business. Promotion is most viral part of every product to
increasing the selling of the products and promoting their marketing activities.
McDonald's restaurant try to cover their all promotional and marketing activities in order
to make them popular and increase their sales volume.
4.2 Illustrate differences in marketing product and services to businesss rather than customer
Difference between B2B and B2C Marketing approach
Ground Business to Business Business to customer
Concerning Centering of logic of product Centering on advantages of
products
Distribution channel There is usually only one
distribution channel
Consumer could demand
numbers of distribution
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