Strategic Marketing Management Report: McDonald's Strategic Analysis

This report provides a comprehensive analysis of McDonald's strategic marketing management. It begins by defining strategic marketing and its role within an organization, differentiating it from tactical marketing. The report then delves into the strategic marketing process, including goal setting, market review, strategy formulation, execution, and evaluation. It highlights the linkage between strategic marketing and corporate strategy. The core of the report examines the value of strategic marketing planning models, such as the Ansoff Matrix, and explores the connection between strategic positioning and marketing tactics, including segmentation, targeting, and positioning. Furthermore, it discusses the merits of relationship marketing within a strategic context. The report also covers appropriate marketing strategies for market opportunities and growth, including market penetration, product development, market development, and diversification. It analyzes the impact of external environment changes and internal strengths and weaknesses on marketing strategy, proposing strategic marketing responses. The report concludes with a detailed examination of McDonald's marketing strategies, providing a practical case study of strategic marketing principles in action.

STRATEGIC
MARKETING
MANAGEMENT

EXECUTIVE SUMMARY:
Strategic marketing is a process which is adopted by firms of development of a plan of
action which are based on certain factors such as customers satisfaction level, external
environment etc. for development of competitive advantage and core competencies in the
market. This report is based on McDonald's which is a American fast food store which is having
a world wide presence. There are many various approaches which are used in this report such as
SWOT analysis, PESTLE analysis which will help McDonald's in forming their strategies. There
is a link between corporate strategy and strategic marketing, which helps in analysis of process.
Such tools and techniques are very helpful in development of strategic marketing plan which will
include various factors related to external and internal environment of company.

Table of Contents
EXECUTIVE SUMMARY:............................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Role of strategic marketing in Organization.........................................................................1
1.2 Process involved in strategic Marketing...............................................................................3
1.3 Linkage between strategic marketing and corporate strategy:..............................................4
TASK 2............................................................................................................................................5
2.1 The value of Model used in strategic marketing planning:...................................................5
2.2 - The links between strategic positioning and marketing tactics..........................................6
2.3 Merits of Relationship marketing in a given strategic marketing Strategy:..........................8
TASK 3............................................................................................................................................9
3.1 Appropriate Marketing to establish opportunities and growth in market. ...........................9
3.2 Plan how to use marketing Strategies in the market:..........................................................12
3.3 Appropriate marketing objectives for Market. ...................................................................13
Task 4.............................................................................................................................................14
4.1 Impact of changes taking place in the external environment for making a marketing
strategy......................................................................................................................................14
4.2 Internal analysis to identify strength and weakness of marketing strategy:........................14
4.3 Proposed strategic marketing responses with the key emerging themes in a marketing
strategy......................................................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
Books and Journals .......................................................................................................................18
.......................................................................................................................................................18

INTRODUCTION
Strategic marketing can be defined as a procedure which is used for development of plans
and strategies which is considered for increasing customers satisfaction. This is a tool which can
be used for getting a competitive advantage from various rival firms and management will be
able to differentiae their products from other competitors. With the help of strategic marketing
plan organization will be able to meet their objectives and this will help in development of plan
and various objective swill be achieved through this marketing plan(Brooksbank, Subhan, and
Miller, 2018). This report is based on McDonald's which is company founded in the year 1940
in America. Its headquarters are present in Chicago, United states and they are having world
wide presence. This report includes some topics which are various techniques, tools sued for
making strategies of marketing, This report includes explanation related to different methods
which companions used to make strategic marketing techniques. With he help of this a firm will
be able to attain overall objectives in an effective manner.
TASK 1
1.1 Role of strategic marketing in Organization
Every marketing plan plays a very important role in removing all the barriers which can
occur in the process of maximization of profits. Marketing strategy performs the function of
supervising all the activities related to selling and this assists in smooth performance of every
functional division in company. Strategic marketing is used for environmental analysis,
analysing various rivals in the market and prediction of coming trends. On the other hand,
Tactical marketing is a action which is used for implementation of marketing strategies in
companies(Camilleri, 2018). If organisation is having a motive of increasing the profit
percentage then in this case the tactics they will be using is reduction of cost which will help
them in increasing the profit percentage. Below mentioned is the difference between strategic
marketing and tactical marketing as two important tools used by organisations:
Strategic marketing Tactical marketing
Strategic marketing consists of those activities
which can help in achievement of overall goal
This deals with strategic plan being supported
by overall actions of company.
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set by the organisation
The time frame in case of strategic marketing
is for long term
In case of tactical marketing the time period
involved is short term
This can be unstructured and is related to
external environment of the organisation
Tactical marketing is structured and this is
related to internal functions and operations in
business
Example of strategic marketing in companies
is launching of a new product(Chiarini, 2015).
Example of this tactical marketing is price
discounting which can be used as a tool of
tactical marketing in organisations.
Strategic marketing is basically concerned with
defining the market and developing a
competitive position in the market.
Tactical marketing is used in case of day to day
marketing of companies.
Marketing strategies outlines overall mission, vision and marketing goals which help in
achievement of organizational goals using some strategic tools. The marketing mix consists of 4
P's which are products, price, place and promotion(Chernev, 2018).
 Product: This refers to products which are sold by the organizations to their customers.
In case of McDonald's comprises of various beverage and food related products which
are burgers, snack, deserts etc.
 Price:It refers to the prices of the products which impacts the buying decision of
consumers. McDonald's uses two types of pricing strategies:
Psychological strategy of pricing: This is one of the pricing strategy which is
dependents on consumers perception. McDonald's tries to keep its prices low so as to impact
consumer's psychology.
Bundle strategy pricing: This pricing strategy attracts customers with bundle of offers
being offered by McDonald's such as Happy meal.
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 Place: It refers to the place where products are being sold. McDonald's is using e
commerce as a source of having online presence which helps in increasing their customer
reach.
 Promotion: There are various promotional activities which companies undertake in order
to increase their sales. McDonald's uses digital media sources also to inform and persuade
their customers.
1.2 Process involved in strategic Marketing
Step 1: in this step organizations try to define their goals, that is overall mission and
objectives. Mission statement is reason behind existence of every organisation. This helps
Companies in gaining a competitive advantage by companies. The vision statement of
McDonald's is to provide a place to their customers which is unique and a best experience in
terms of ambience & the quality of food. This mission statement is related to overall gaols and
objectives of companies(Lee, Kozlenkova and Palmatier, 2015).
Step-2 : Review of position:
After mission, goals and objectives are set the next step is to review the overall position of firm.
Consumers are also analysed in this step which is related to market analysis, carrying out
PESTLE analysis and internal analysis of the company through SWOT analysis. MacDonald's
will also be using these tool in order to analyse the company based on various different aspects.
Step-3 Formulation of strategies of marketing:
After the organization has understood what is the mission statement and perception of their
customers. In the next step overall marketing strategies of firms keeping in consideration 4P's
which are price, product place and promotion. In this step McDonald's will try to identify their
target market and target customers. After deep analysis of them various marketing startegis will
be formed by company(Lidstone and MacLennan, 2017).
Step-4: Execution and Implementation:
In this step McDonald's will be implementing the overall strategy which they have formed in the
earlier mentioned steps. They will have to consider ways which can help in enhancement of
overall process and making important modifications.
Step-5: Evaluation and modification:
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This is the last step in this the results of the earlier implemented strategy is evaluated and if there
are any modifications required then those have to be done in this step. McDonald's will b
evaluating their overall Strategy formulation in this step.
1.3 Linkage between strategic marketing and corporate strategy:
Strategy is a process or a plan which is to achieve a anticipated goals of organization. Strategies
helps in communication of the unique position of firm in the market with the help of various
marketing tools(Pedron. and2016). Such techniques help in creation of a differentiation position
in the market. There are three levels of strategies in organizations:
Strategic marketing and corporate strategy are two poles which are opposite of each
other. Strategic marketing helps in laying down a framework to attract more customers with the
help of products and services which the organization is dealing in. whereas corporate strategy
acts as a guide which helps organizations in knowing what is the work which they have to do and
in which direction(Paley, 2017). The structure of both the strategies is same but the purpose for
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STRATEGY
CORPORATE
STRATEGY
BUSINESS UNIT
STRATEGY
FUNCTIONAL
STRATEGY

which they both re formed are completely different from each other. Also, various element which
these strategies are dealing in are almost similar to each other but corporate Strategy will be
driving the firm towards achievement of long term goals. Where as strategic marketing are
usually focussed on preparation of strategies for achieving short term objectives of companies.
TASK 2
2.1 The value of Model used in strategic marketing planning:
Strategic marketing plan is a very essential document which is used by organisations to
survive and they use many different strategies in various marketing platforms at a particular
point of time which are digital media platforms, social media strategies, content writing etc.
Marketing plan is very essential to map out various strategies to sell organization's products to
consumers(Milichovsky and Simberova, 2015).
A strategic marketing plan can be referred to as a creative process where organization
aims to execute their marketing strategies and ensure a stability in all business processes. A
strategic marketing plan consists of following stages:
 Positioning of organisation: This component of marketing plan will be used to shape the
existing position of the company based on various financial outcomes. SWOT analysis as
a tool is used to analyse the position of organization.
 Goals & Strategies: A Strategic plan is not complete if the implemented strategies and
goals are not properly stated. The strategies are converted in targets and then into reality
which will help in moving of organizations functions towards accomplishment of goals.
 Evaluation of market opportunities: The strategic plan of marketing should be used to
evaluate various opportunities in market. After market is being evaluated it becomes easy
to understand where should the resources be used(McDonald, 2015).
 Defining the market: Target market is defined which gives the idea of consumers
preferences and demands, needs, desires after doing the research.
 Budgeting: Strategic plan is completed when budget is prepared and implementation is
done. There are many important decisions made at this phase which are allocation of
responsibilities.
One model which is being discussed in the marketing strategy is the Ansoff Matrix.
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 Market Penetration: This is the strategy which is used by the organizations to increase
the sale of their existing products in the market. McDonald's will be using this strategy to
grow their market in which various elements of marketing mix will be used to penetrate
in the existing market.
 Product Development: This strategy is more risky in comparison to market penetration.
Product development will be used by firms to increase the sale of new products in the
existing market. McDonald's will be changing some aspects of their marketing mix which
can be promotion, product will be changed in this Strategy.
 Market Development: This strategy is having more risk and is complex in
understanding the market. Existing products are used and they are introduced in the new
market. McDonald's will be doing change in the marketing mix is considered as a route
used for distribution of products(Lidstone and MacLennan, 2017).
 Diversification: This strategy is involving highest risk as compared to all the different
strategies. McDonald's will be using this strategy when they are willing to diversify
themselves into a known area.
2.2 - The links between strategic positioning and marketing tactics
Segmentation, targeting and positioning is a analysis which is conducted by the
marketing managers of McDonald's so that they are able to analyse the overall effectiveness and
after that various strategies can be formed in accordant with the situation. After evaluation of the
information collected by the manager of the company and STP analysis is described as below:
 Segmentation: It is referred to a method which organizations use to do analysis and then
identify the requirements of customers. In this customers requirements are identified and
then various segments are formed in the market place. In this customers of same group
are divided into segments. McDonald's divide their customers based on these four
segments of market is divided which is demographic, geographic, psycho graphic and
behavioural.
Type of segmentation Criteria Target segment of
McDonald's
Geographic In this McDonald's uses a In this company tries to select
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segmentation criteria based on
density and region.
a international and domestic
geographic area.
Demographic Criteria used for various
segments are gender, age,
income, occupation and
various stages of life
cycle(Lee, Kozlenkova and
Palmatier, 2015).
McDonald's is focussing on all
segments of customer who are
between the age group of 8 to
45 years of age.
Behavioural Criteria selected for this
particular segment are
personality, loyalty, benefits
and status expected.
In case of McDonald's they are
using of customers who are
loyal and who are switching
over brands.
Physco graphic Criteria for this segment are
lifestyle and social class.
McDoanld is segmenting their
customers based on social
class which are lower class,
middle class and working
class.
 Targeting: This is defined as a method which organizations determine, so that they are
able to develop and customize their products according to the requirements of their
customers. In context of McDonald's the brand is targetting all segments of customers
which can be kids, family and teenagers. After that according to the expectations of those
customers various products are customized in terms of flavours, content and also price.
 Positioning: This can be defined as a technique which is adopted by the company so that
they are bale to develop various concepts and image in mind of their potential customers.
Through this company can reach to their customers. In case of McDonald's it is gaining
popularity between children and this is helping them to create a effective position in the
market(Kitchen. and Burgmann, 2015).
By evaluation of such factors project manager of company will develop strategies which
are related to business operations and through their products which can attract more customers.
This will help in attracting large number of customers which can help them in earning higher
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profits and increased market share. Which will lead to achievement of overall objectives of
company.
2.3 Merits of Relationship marketing in a given strategic marketing Strategy:
Relationship marketing is also a form of strategy which is designed to create more
customers loyalty, increase interaction and consumer engagement for a long period of time. It is
used to develop communication and strong connection with the customers which is for long
period of time. The two major goals of relationship marketing:
Consumer retention: This means various sections of the organization which help in
increasing the loyalty of their customers in the organization. Customer retention programs have
a major aim to provide support for the organization in maintaining their level of sales(Keszey,
and Biemans, , 2016).
Customer satisfaction: This term is related to the amount of satisfaction which a
consumer derives while using the products of organisation. This level of satisfaction further
helps in deciding whether a customer loyalty will be there or not. As a highly satisfied customer
will only be able to do repeated purchase. McDonald's uses various social media platforms to
analyse whether customers are satisfied or not.
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