Principles of Marketing: McDonald's Case Study and Analysis Report

This report provides a comprehensive analysis of marketing principles, utilizing McDonald's as a case study to illustrate key concepts. It begins with an introduction to the core elements of marketing, including product, price, place, and promotion, and then delves into the benefits of market orientation. The report examines both macro and micro environmental factors influencing marketing decisions, alongside segmentation criteria, and targeting strategies for new products. Furthermore, it explores buyer behavior, new positioning strategies, and product development processes. The analysis extends to customer convenience, pricing strategies, and the marketing mix, including its application to different market segments. Finally, the report contrasts different product and service types, and discusses the differences between global and national markets. The report leverages McDonald's as a practical example to illustrate the application of marketing principles within a real-world business context.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
1.1 Marketing elements.........................................................................................................3
1.2 Benefits related to orientation of markets........................................................................4
2.1 Macro and micro environmental factors ..........................................................................5
2.2 Segmentation criteria .......................................................................................................6
2.3 Targeting strategy for new products.................................................................................6
2.4 Buyer behaviour that affects marketing ..........................................................................7
2.5 New positioning ...............................................................................................................7
TASK 3............................................................................................................................................8
3.1 Explain how products are developed ...............................................................................8
3.2 customer convenience......................................................................................................9
3.3 Prices reflect an objectives and market conditions........................................................10
3.5- Marketing mix elements...............................................................................................11
4.1 Marketing Mixes for different segments........................................................................11
4.2 Differences types of products and services...................................................................12
4.3 Difference between Global and National Markets.........................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing involves large range required by products according to the
needs of consumers and then delivering it to them on the basis of their
demands. There are 4 elements of marketing processes which are known as
basic 4P's required by the company. They are known as main marketing
concepts. But there are other 3P's on which the basic elements are
thoroughly dependent on the part of providing the products and services to
the consumers. The Mc Donald uses all the elements of marketing in order to
provide products and services which cater to the requirements of targetted
consumers. The consumers are benefited by the way of getting the right
product available in the market. This is essential and major element because
even though the product is superior in quality but if the price is not according
to the needs of the consumers then also the sales of the company decreases.
TASK1
1.1 Marketing elements
The marketing process consist of various determinants are the
elements which caters the delivery regarding the products or services as
required by consumers in day to day life. The various elements of marketing
process are
 Product- The product can be defined as anything that can be offered to
the consumers which have a unique shape, size, colour and name. The
product is not only the physical product but it can be any service which
can be provided to the consumers. The Mc Donald is providing various
products like Burger, French Fries, etc. and also provide services such
as home delivery, proper packaging, etc.
 Price- The price is anything which an individual pays in order to buy
any product or service. The prices are decided on the basis of features
and qualities of the product and service. The Mc Donald has been

delivering the products and services on the effective cost basis as per
the choice of consumers.
 Place – The identical area where the product or service is sold and
delivered. The place can be of 2 types physical or non physical.
Physical place means that the product is actually available in the
stores and non physical place means that through online display of
goods and services which helps the consumers in choosing variety of
products at their home. The Mc Donald has been delivering the
products through orders from online App and websites which helps
them in gathering more consumers.
 Promotion- The techniques or the methods which are being used to
deliver product or service to the consumers. The Mc Donald has been
promoting its products through big celebrities and reputed
personalities as its a big brand name in market.
1.2 Benefits related to orientation of markets
The business process refers to all the elements that focuses by
delivering desired products and services to customers according to the
required needs and desires (Frank ,2010). Mc Donald company cares about
the customers requirements. As company's Aloo tiki is regarded the famous
and most delicious item which caters to customers benefits for it.
Advantages
 To analyse the market trends of current nature:- As the business
firm plans for marketing related to product and service delivery it will
help them to analyse trends of marketing related to current nature of
products and services in competitive markets.
 To find customers desire regarding all the elements of making
it useful to consumers:- The company needs to identify needs or
demands. Then accordingly make changes based on their product line-
up.

 Attracting customers through packaging and labelling:-
Packaging and labelling are considered to be the most attractive
element for every customer. Mc Donald use their special packaging
and provide products to customer such that they get attracted to it.
(Henley, Baffin, and Camerae, 2011).
Costs
 Advertising cost:- Company uses advertising in order to
introduce and launch their products and services in the
environments. The firm uses the slogan and many other
advertising activities. They are considered to be the compulsory
cost for an organization
 Promotional sales cost- The firm uses promotional tool sin order
to p[provide effective products and services at the increase of
sales of the products.
2.1 Macro and micro environmental factors
Environmental factors refers to all environmental features that are
required to analyse marketing situations in terms of providing goods and
services to the customers. The various micro/ macro factors that are required
to deliver products and services. These are
 Income of consumer is considered an important element because the
income decides how much a consumer can pay to buy the desired
product or service. The Mc Donald provides the products to consumers
by keeping the prices so nominal that every consumer feels that it is
affordable for them.
 Social Factors are considered important for an organization because an
organization needs to deliver products and services keeping in mind
the social values and ethics which are to be considered within an
economy. The company tries to analyse the social values by providing
such ingredients to their products that are acceptable to the economy.

 Technological Factors are the factors that are required to be adopted
by the company in order to provide effective and efficient products and
services. Through international value chain every outlet of Mc Donald
needs to adopt technology catered by that country for which they are
delivering the products and services.
2.2 Segmentation criteria
Market segmentation refers to segmenting markets that can be based
on 5 elements
 Geographical Segmentation- It means that the products and services
offered by the company in one area may be different from that of other
area. This is because of the fact that the products offered by Mc
Donald in U.K. And U.S.A are different as they have different types of
resources.
 Demographical Segmentation- The likes and dislikes , taste and
preference, behaviour of consumers can be different in different areas.
As far as Mac Donald is concerned the behaviour of consumers in UK
and USA may be different because the purchasing power and taste of
taste of consumers are also different.
 Psychological Segmentation- This means that the lifestyle of
consumers affects buying behaviour of products and services. The Mc
Donald provides such products and services which affects the lifestyle
of consumers because the consumers feel energetic and enthusiastic
in using the products and services.
2.3 Targeting strategy for new products
The company has adopted customised marketing in the way that
individual customers are unique in purchasing of products and services and
companies design marketing elements for each customer in separate way.
The Mc Donald has adopted various customised marketing strategies in the
way that every customer has different attest and preference for buying the
products and services. In fact in each country the company has adopted the

strategy based on the purpose of providing the products according to the
needs and demands. The customised marketing is based on the major
decision that customers are considered king of market and they have pool of
options in developing the products and services of the company. Every
customer is different in all the aspects of marketing and they provide
individual products to the company. This is the major reason in developing
the company's products and services.
2.4 Buyer behaviour that affects marketing
Marketing or buying behaviour refers to the all buying situations in
which every situation affects the market in creating development for
products or service or providing low priced products.
 During the time of Festivals the companies try to adopt schemes that
help them to capture large share of market in the way that every
consumer wants to buy the products and services during festival times.
Mc Donald has adopted this strategy as in times of every festival the
company offers different products to different consumers.
 Daily Buying means during regular business days the companies try to
develop products and services for only few customers . During daily
working days the companies try to deliver same product or few
products for less consumer base.
 End season sales means that companies try to provide discounts at the
time of ending seasons because the companies are trying to sell out
their whole stock from the market.
2.5 New positioning
Position of products and services develops in creating and choosing distinct
place in the minds of consumers with regards to all the factors related to
marketing. It refers to brand, product and service loyalty along with goodwill.
Every company should select and target the market for which product or
service caters. The Mc Donald has adopted the positioning strategy of family
friendly low cost restaurant because it provides low cot products and

services to the families or friends who cater to eat fast food in their
restaurant. Another major strategy which is being adopted by the company
is decrease of wait time and increase of sales volume. The decrease of wait
time will help the company in providing quality goods at reasonable time but
by increasing the volume of sales the production will increase. So for every
company its very essential to adopt less wait time with high sales volume.
TASK 3
3.1 Explain how products are developed
Product development refers in making and creating new products and
services in the market and introducing them for the best use of targetted
audience. Companies generally always makes new products and services
that increase their sales. Product development takes place as new products
and services that changes overall product features or add some value to the
existing products.(Glass-man, and Braun, 2010). It is fully dependent on
company's strategy and goals. As MC Donald make their aalu tikki product
and after sometimes add some flavours to it that changes the products and
services. This is an addition to existing product and the product enters the
new product stage,
 Companies start developing the products and services by generating
product information. Without knowledge the company can't develop
products and services.
 After generating complete knowledge the company starts on functional
aspects of developing products and services.
 Micro and macro factors are absolutely needed to analyse the
opportunities.
 Companies must be able to analyse marketing opportunities
(Armstrong, and et. al 2014).
 SWOT analysis describes how to chose marketing opportunities and
competitors available within the market.

 Companies plan to develop new products and services. Companies are
completely dependent on technical requirements of the consumers and
other requirements which are necessary for developing new and
innovative products.
3.2 customer convenience
Companies provide their products and services to the targetted
consumers and this process is known as distribution of product. Companies
follow many channels to distribute their products in the targetted and
chosen markets. Mc Donald also follows many marketing strategies and
many distribution channels to reach their targetted customer(French,2010).
Mc Donald has adopted intensive and vertical marketing networks of
distribution channels of marketing. The company analyses and provide
effective ingredients to develop the marketing environments.
Intensive distribution:- This strategy refers to the demands of the
consumers on which every consume want the products and services on time.
Companies provide goods to chosen customers on the basis of products and
services they want to have. It strategies based on marketing environmental
designs which help them to reach customers at any time and at any place.
As Mc Donald many restaurants are open 24 hours and provide goods to
customer and satisfy customer need.
Vertical marketing network:- In the case where companies develop
their agent and creates different firms globally to sale companies product on
the behalf of the business personalities (Rudd, and Mills, 2011). In global
markets every business firm sets and authorises sales agents that are
required to sell companies products inn terms of providing certain additional
condition. As Mc Donald have opened many outlets in global environments
which help them to sell different types of products and services . It has
adopted a chain system in every market.

3.3 Prices reflect an objectives and market conditions
Companies must adopt many types of pricing strategies for
international markets. Companies and business firms make their pricing
strategies according to the needs of the customers and many times
according to their competitors products, prices, and promotional strategies.
Each and every-company follows some pricing strategies like- penetration
pricing, focused based pricing, price skimming.
As Mc Donald has adopted so it uses pricing strategies which help
them to sale their products and services.
 Price skimming- In this pricing the companies try to set higher
values for their products which are considered depending on the
bargaining power of consumers the prices are decided.
 Penetration Pricing- In this pricing the companies provide new
products and services to the consumers based on their
responses and for this the companies follow low pricing formulas.
3.4 - Promotional activities achieved in order to develop objectives
Companies try to follow many promotional activities to achieve
marketing objectives of the firm. They make plans and adopt various
strategies to complete desired or chosen targets and responses made by
targetted customers (Abdullah, and Ismael Ahmad, 2010). Promotional
activities are used in companies which will help them to increase goodwill
and introduce new and innovative products in the markets. Companies try to
use many advertising activities based on marketing objectives.
 Advertising:- Companies hire different advertising agencies and then
uses advertising strategies to promote their products and services in
market. Companies use advertising elements like magazine-
advertising, television-advertising and other methods related to
advertising which can be helpful in developing and increasing the
brand's popularity.
 Personal selling:- A company find targetted customers and
accordingly sell the companies products and services. In such a case

every company makes their agents and these agents sell the product
and delivers them as per the requirements of consumers in the
environment(Pre-eclampsia, 2012). As Companies try to provide home
delivery , it is an advantageous option to all the customer as they
receive goods and services at their home in committed time.
3.5- Marketing mix elements
Marketing elements are the elements which are considered helpful in
increasing companies overall production and operational activities and many
other things. The modern 3 elements are-
 People- The people refers to the employees of the organization that
create and develop products and services for the consumers. The
people who are satisfied by the technique company is using makes
effective and efficient products and services.
 Physical Evidence- This process helps the company to register
complain against any consumer who is misusing their products and
services in case the product develops harmful activity.
 Process- The process refers to the action plan which is made by every
company in order to develop raw materials to finished goods. The
process normally starts with research about marketing problem and
then continues till finally its solution is achieved.
TASK 4
4.1 Marketing Mixes for different segments
As business firms plans to identify all the segments based on consumer
behaviours they help them to develop markets based on many other factors
of marketing mix. As Mc Donald deal in many countries so they have to
follow different marketing mixes in order to provide different products
required by the consumers . The same marketing mix may cause damage,
loss to the product and the product can be harmful for the company as well
as consumers. So Mc Donald also has to adopt various marketing mix

elements while dealing in UK and USA . This is because the element which
UK adopts may not be there in ISA and vice versa.
4.2 Differences types of products and services
Every organization develops own products and services which are
different from competitor's products and services . Its the choice of
customers to chose marketing organization who will provide them better
service. AS Mc Donald provides the products in terms of Burger King and
Subway they use different elements of selling and distributing products and
services which will help the company to gain competitive advantage in terms
of other business firms. Both the companies uses different strategies but to
remain in market for long time the company needs to adopt such type of
policies which will help the consumer in getting better quality products and
services.
4.3 Difference between Global and National Markets
Markets Globally Domestic Markets
All basic and modern elements are
considered
Only basic elements are considered
To provide products to large To provide products to small
consumers.
Broader Scope Narrow Scope or no scope
Distribution and Credit controls are
straight forward
Complex distribution and credit control
Easy to predict competitors
behaviour
Hard to predict competitors behaviour
CONCLUSION
Through the above research report it has been concluded that there
are 7 marketing elements that need to be analysed and implemented by the