Strategic Marketing Management: A Detailed Analysis of McDonald's

This report provides a detailed analysis of McDonald's strategic marketing management, covering key aspects such as the role of strategic marketing, its linkage with corporate strategy, and various strategic marketing models. It delves into internal and external environmental analyses, identifying growth opportunities and strategic responses using tools like SWOT, PESTEL, and Porter's Five Forces. The report also examines the significance of relationship marketing and its merits within a specific marketing strategy. Furthermore, it assesses the major trends impacting McDonald's marketing strategy over time, including an internal analysis of the company's strengths and weaknesses, concluding with insights into enhancing competitive advantage and overall strategic effectiveness. This document is a student contribution and is available, along with other study tools, on Desklib.

Running head: STRATEGIC MANAGEMENT
Strategic Management
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Executive Summary
The report has helped in analysis of the strategic marketing management of the McDonald’s
Restaurant. Proper analysis of the process of the strategic marketing management along with
importance of relationship marketing has been discussed that plays an essential role in the
organization. The different internal analysis has been done in order to gain more competitive
advantage in the economy against the other competitors. Furthermore, the strengths and
weaknesses has been analysed in order to understand the position of McDonald’s in
comparison to the other competitors.

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Table of Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................4
Role of Strategic Marketing in Organization.........................................................................4
Linkage between Corporate Strategy and Corporate Strategy...............................................6
Assessment of different models utilised in strategic marketing planning..............................7
Task 2.........................................................................................................................................8
Meaning of Positioning in Strategic Marketing.....................................................................8
Relationship Marketing..........................................................................................................9
Analysis of merits of relationship marketing in respective strategic marketing strategy....11
Task 3.......................................................................................................................................12
Key factors and trends in the External Environment...........................................................12
Growth opportunities identified...........................................................................................14
Strategic Marketing Response..............................................................................................15
Porter’s generic strategies....................................................................................................15
Objectives of the company...................................................................................................16
4Ps of marketing..................................................................................................................16
Task 4.......................................................................................................................................18
Major Changes in Trends over time to have on Marketing Strategy of McDonald’s..........18
Internal Analysis of McDonald’s.........................................................................................18
Conclusion................................................................................................................................20
References................................................................................................................................22

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Introduction
The report helps in analysis of the role of the strategic marketing management that is
played by the organization along with involvement of the different processes that are
involved in the strategic marketing. Furthermore, the linkage between the strategic marketing
strategy along with corporate strategy has to be discussed as to assess the different models of
the entire strategic marketing. Proper internal and external environment analysis is required
to be done as to ascertain the possible growth along with the opportunities that exists in the
organization. The relationship marketing has to be analysed and identified in an effective
manner in view of the customer relationships.
Task 1
Role of Strategic Marketing in Organization
Strategic Marketing is the process of creating, arranging along with execution of the
different moves to get an aggressive edge of the business. Marketing is defined as the process
of planning along with executing the pricing, conception, promotion and distribution of the
different ideas, products along with services as to create different exchanges that helps in
satisfying the organizational and individual objectives. The strategic approach along with the
functional approach to the marketing is captured by McDonald along with Kotler in the
literatures (Best 2009).
Strategic marketing means STP marketing that includes segmentation, targeting and
positioning the different products and services as to gain the operational efficiency. The
target market has to be chosen wherein the organization wants to sell the products and this
will be fruitful for the organization as well. Furthermore, the marketing mix has to be
gathered wherein this will disclose the means of how the organization will be selling the

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products (Singh, Quamina and Kalafatis 2017). The respective company has to gather the
different the Ps of the marketing in accurate kind of combination as this is crucial part as to
analyse the availability of the different distribution channels along with analysis of the design
of the strategy as well.
Furthermore, the main goal of the strategic marketing in the different organizations
includes the loyalty among the different customers and this will command the entire business
sector as well. Proper analysis of the processes of the strategic marketing is required to be
done in an effective manner to gain competitive advantage in the entire market (Neuman
2016). The strategic management marketing in the organizations will increase the entire
productivity and profitability of the organizations. Furthermore, the satisfaction of the
customers is essential in nature and this has to be analysed by the customers itself and this
will assist the company in gaining more competitive advantage in the entire economy as well
(Adebamowo et al. 2014).
Three Phases of Strategic Management
Planning Phase
This is one of the vital as this helps in investigating the different kind of inner
qualities along with shortcomings along with change in the innovation and gives proper
description of the firm condition in an effective manner (Neuman 2016). This particular stage
includes four segments that helps in providing outline of the different prospects of the
organization effectively as well.
SWOT analysis: It helps in defining the qualities, shortcomings that can be faced by
the organization and this can affect the reputation of the organization as well. Proper
competitor analysis along with analysing the differences in the patterns of the business of the
organization is required to be analysed and identified effectively (Best 2009).

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Market product focus and goal setting: Product along with marketing goals are
essential in nature as this helps in increasing the strengths along with rectifying the
weaknesses, grabbing different kind of opportunities and avoiding the different threats that
can hamper the business (Herman 2016).
PESTEL Analysis: This is the step wherein the different factors have to be analysed
that can affect the growth of the company. Furthermore, the respective analysis will weigh
things in a much objective balance and this encourages the company for strategic planning for
their growth in the long run (Neuman 2016).
Competitor Analysis: The porter’s five forces model analysis is essential in nature as
the main purpose is to analyse the weaknesses and strengths of the competitors within the
entire market. The different strategies will help in providing distinct advantage along with
removing the different barriers (Khan et al. 2018).
Market Programme: This is the stage of marketing mix wherein it includes the 4Ps
and the entire budget is being prepared with proper estimation of the revenues, profits along
with the different expenses (Herman 2016).
Implementation Phase
The respective implementation phase consists of the four stages that includes finding
appropriate kind of resources, design of the marketing organization, proper development of
the schedules and execution of the program effectively (Khan et al. 2018). Management of
the different resources is essential in nature as planning will help in involving marketing of
different items along with analysis of the marketing and time should be allotted as to
understand the particular errands.
The annual objectives include providing different kinds of services and products to
the customers and satisfy the different requirements in an effective manner. Furthermore,

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proper analysis is essential and it is required as to increase the growth opportunities of the
company effectively. The main objective is to increase the productivity and profitability of
the company along with gaining more customer base in the company.
Furthermore, the policies that are required to be implemented by the organizations is
to take care of the different kinds of health and safety of the different employees who are
working under the respective company. Additionally, the compensation and the salary
structure have to be analysed and adopted in an effective manner as this will help in
providing more support to the employees and this will help in providing more support to the
employees as well.
Lastly, the resources that are required in the implementation of the programmes
include the different kinds of monetary support and other kind of policies and resources that
will satisfy the needs of the company effectively and appropriately.
Strategy Evaluation
The evaluation of the strategy is essential in nature as this is the main assessment
process that will help in providing the executives along with managers for the performance
information about the different programs as to meet the business goals and objectives.
Concept Phase
On the other hand, the outcomes are compared with plans in order to analyse the
changes that has been occurred. There are different approaches that helps in assessing the
viability of the methodology that is promoting in nature.
Strategy vs System helps in characterising the different kind of objectives along with strategy
characterises the different activities that has to be performed in order to gain such objectives
(Herman 2016)

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Ambiguous vs Quantifiable helps in characterising the different turning kind of points as to
accomplish the various objectives (Tricarico 2015).
Contingent vs Noteworthy helps in analysing and characterising the different objectives that
has to be achieved through implementation of strategies effectively (Cascio 2018).
Linkage between Strategic Marketing and Corporate Strategy
Both the terms strategic marketing along with corporate strategy are being utilised
interchangeably along with the differences lies in the aim. The main aim and purpose of the
corporate strategy is to earn maximum profit for the company. On the other hand, strategic
marketing is to increase the sales of the different products. Corporate Strategy is defined as
the hierarchically the highest kind of strategic plan of the entire organization and this will
help in defining the corporate goals and ways of achieving within the strategic management.
The mission and vision are the part of the strategy and there are different analytical
techniques to help the company in performing effectively. On the other hand, there is proper
linkage between the two strategies that has been explained as follows:
In view of McDonald’s restaurant, the linkage along with the interrelationship
between the two has been designed in an effective manner to analyse the two strategies
effectively.
Value Chain: It is defined as the main process of making, communicating along with
delivering the product by accurately understanding the needs and wants of the different
customers. Furthermore, it links with corporate and strategic marketing and the first link is
market sensing that is identifying the target market along with the next link that is the new
offering that is making along with delivering the product. Furthermore, the acquisition of the
customers is essential wherein the promotional activities are being carried in order to attract

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the different kind of customers (Ruggiero 2014). Furthermore, the last linkage is the
fulfilment management and this is related to product supplying in an effective manner.
Core Competency: It is the entire quality that is required wherein the company adopts
as to analyse the entire differentiation and then differentiate from the different competitors.
The core competencies are developed as the corporate kind of strategy; however, this has
been advertised as strategic marketing by the entire company (Herman 2016). Furthermore, it
can be analysed the different core competencies are developed under the corporate strategy
and this will help in improving the different efficiency of the organization as well. In strategic
marketing and in corporate marketing, the core competencies include the different kinds of
having long term objectives and this helps in bridging the gap between performance along
with opportunity.
Assessment of different models utilised in strategic marketing planning
Planning of strategic marketing – It is managerial and operational process that has
helped the company in applying and making the marketing strategies that is effective in
nature.
Models- There are different models in the planning of the strategic marketing that
helps the entire company in evaluation of analysing whether the business is performing better
than the other kind of competitors in the market (Herman 2016). Furthermore, it assists in
identifying the different growth opportunities and strategies for the near future. The four
models that are being utilised in the process are as follows:
 Ansoff Matrix – It is one of the models and matrix that has helped McDonald’s in
identifying the different kind of opportunities that will assist in growth of the entire
company (Ansoff 1958). The matrix includes the four stages of growth that includes
market development, product development, diversification and market penetration. It

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is used in strategic marketing process of planning. This is used to identify that
overarching strategy that the business must use and then inform the different tactics
that can be used in the marketing activity as well. There are times when an
organization will adopt the different strategies to reach the different markets as well.
 BCG Matrix- This respective model was introduced by Boston Consulting Group and
this is also known as the growth share matrix and this consists of the four parts such
as dog, cow, star and question mark (Best 2009). The respective matrix is designed as
this will help in long term strategic planning and this will assist the business in help
the business to consider growth opportunities by reviewing the portfolio of the
different products and services and discontinue or the development of the products as
well.
Task 2
Meaning of Positioning in Strategic Marketing
Positioning Map is defined as the diagrammatic technique that is utilised by different
organizations as to visually display the different perceptions of the different customers or the
potential kind of customers as well. The proper and accurate positioning helps the company
in gaining and creating awareness among the various customers. The product positioning is
one main kind of positioning that can be pursued by the different organizations and this has
been adopted by McDonald’s wherein they have introduced various marketing of new
burgers and fries that can attract the customers effectively (Best 2009).
On the other hand, marketing tactics is defined as the method that helps in promoting
the different products of the entire business as to increase the actual sales and the effective
kind of tactic of marketing helps in analysing the customer needs and satisfying them with
their needs fulfilment as well. Furthermore, kit assists the entire business in utilising the

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various resources that are scarce in nature in an efficient manner to maximise the entire
promotion of the different products effectively as well (Yang, Wang and Jin 2014).
There are different range of marketing tactics that can be used by the organization as
to establish and reinforce the positioning. McDonald’s uses such product positioning
technique in an effective manner in which they can promote the new items that are included
in the menu. From the positioning map, it can be analysed that positioning map is essential in
nature as to gain more competitive advantage in the economy and be successful in
comparison to the other competitors. The product positioning strategy will help the company
in gaining more customer base in the entire economy effectively.
The product punch line can create huge influence on the minds of the customers that
can provide them with a brief overview of the different kind of positioning of the product is
effective or not in nature (Best 2009) For instance- Introduction of chicken and egg burger as
a combination can create a huge positive influence on the minds of the customers and this can
be approached by the respective restaurant to the college or office goers as well.

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Relationship Marketing
Proper relationship marketing is essential to be done by different companies in
perspective of client relationship management. This helps in spotlighting on the reliability of
the different clients and gaining the different short-term objectives as well (Best 2009). The
main objective of the relationship marketing or showcasing is to create different associations
of the clients towards the brand that will help the company McDonald’s in creating and
becoming the lead in comparison to the other competitors in the market. The relationship
marketing is essential in nature as this helps in creating stable relationship between the
business and the customers as this will help in getting continued success in an effective
manner (Hastings and Saperstein 2007).
In McDonald’s, proper strategic marketing strategy has to be adopted by them as this
will help the entire organization in gaining more customers in the market. Furthermore,
McDonald’s is one big name in the food and beverage industry wherein this is required by the
company to analyse the promotional mix and the product mix strategies that are being used
by the different competitors in the market. Furthermore, McDonald’s has to ascertain various
objectives in such a manner that will help them in attracting more customers in the market
(Rucker and Rucker 2014).
McDonald’s has tried to focus on the customers who are the office goers and
bachelors who prefer healthy yet nutritious kind of food. Furthermore, the respective
company has created strategy to promote the new food items in a unique manner that will be
attracting the customers in the market (Rucker and Rucker 2014). Lastly, in order to continue
the business in an effective and efficient manner, the respective company has utilised
different strategies of marketing as to seek more attraction from the different customers and
this will increase the entire sales of the company as well in the future.