This paper aims to discuss different marketing tools and techniques of marketing in terms of McDonald’s business. Then, this study analyzes the current position of McDonald’s and environmental factors related to marketing management to increase the brand image of McDonald’s in the market and increase the number of shares.
McDonald’s is a popular food service company and it has a well-established firm in the UK. The success factor of the McDonald’s is basically on the marketing management function that indicates the three-legged system. McDonald’s has applied the decentralized business method to grip the market and established the brand image. The differentiation strategy of McDonald’s is strong enough then the competitors in the market. This system helps McDonald’s to attract and retain the target consumers. The relationship pattern with the customers depends on the marketing philosophy of the firm. McDonald’s has used holistic marketing philosophy to gain customers’ acceptance and success of the firm.
The finding of this paper shows that the new food items of McDonald’s seem to be very popular that can be used to increase the portion of customers’ segments across different regions. As the single product for the key segments, it can be predicted that the sales, as well as production cost, will be high due to the amounts seem to below. The marketing strategy in the targeting strategy will be cost-effective as well as easy. By focusing on concentrated marketing, McDonald’s will be capable to evaluate the segment by introducing different new foods for particular segments.
Table of Contents
1.0 McDonald’s philosophy: the Holistic Marketing.
1.1 Concept of marketing.
1.2 Conventional marketing concept and philosophies.
1.3 Marketing Orientation.
1.4 Holistic Marketing.
2.0 McDonald’s Environmental Marketing Analysis.
2.1 Impact of Brexit issue on McDonald’s.
2.2 Economic impact on McDonald’s.
2.3 Impact of advanced technology on McDonald’s.
2.4 Changing customer behavior
2.5 Healthy eating trends.
3.0 Brand Extension: McHalal Burger, McHalal Chicken Rap, and McHalal Kebab Role.
3.1 STP Processes.
3.2 Marketing Mix.
3.3 Extended Marketing Mix.
Appendix A: Overview of McDonald’s.
Appendix B: McDonald’s relationship marketing.
Appendix C: McDonald’s socially responsible marketing.
1.0 McDonald’s philosophy: the Holistic Marketing
An effective marketing process serves this purpose. Using an effective marketing process starts with understanding the present market situation and identifying customer needs. This paper discusses and analyzes the marketing policies and techniques of McDonald’s. An overview of McDonald’s is included in Appendix A. This paper first discusses McDonald’s philosophy of holistic marketing. Then, this paper analyzes McDonald’s environmental marketing. Finally, this paper focuses on McDonald’s brand extensions including its STP process, marketing mix and its implementation.
1.1 Concept of marketing
According to Kotler (2018), marketing is a process done by business organizations to promote their products and services towards their target and potential customers. Rampton (2017) said marketing is a set of activities used by organizations to increase buying or selling of products and services.
1.2 Conventional marketing concept and philosophies
The conventional marketing process is a type of marketing process that mainly comprises one or more autonomous retailers, producers and wholesalers. Each of the components of vertical marketing is self-reliant as well as works in an independent way with others.
There are different types of marketing philosophies which are production concept, product concept, selling concept, marketing concept and social marketing concept. In terms of production concept, it states that consumers will easily approve the products which are usually available as well as costly (Kotler, 2018). By gaining high efficiency in the production system, the low cost and distribution on the mass scale is a usual focus of managers. In terms of the product concept, this recommends that the customers will easily favor the products which have good performance, better quality, and other attractive attributes rather than a usual product. According to Kotler (2018), the selling concept reflects that the consumers would not purchase enough of the products of the business organizations except the comprehensive promotional and selling activities are accepted by it.
In the case of McDonald’s, in the current market environment, McDonald’s follows these marketing management concepts in its business to target more customers towards its business and satisfy the new customers by focusing on their demands and needs at the current marketplace (McDonald’s Annual Report, 2018).
1.3 Marketing Orientation
Customer orientation: Customer orientation and competitor orientation consist of different activities that are involved to achieve effective information about both competitors and customers in the target market by distributing it through businesses (Kotler, 2018). McDonald’s focuses on the understanding of both current and future distributors and the creation of greater value for both current and future distributors.
Competitors’ orientation: Competitor orientation indicates the knowledge of the existing strategies, weaknesses and strengths and capabilities of the business organization. For example, McDonald’s’ focuses on effective knowledge on the developing technologies in the current market.
Inter-functional orientation: Inter-functional orientation refers to the incorporation of a business organization’s several areas, transversal to an organization as well as not as a marketing disquiet (Kotler, 2018).
1.4 Holistic Marketing
The present marketing world is changing in nature. Only one strategy of marketing is not suitable or applicable for a longer period. Most companies give importance to service quality and customers satisfaction to grip the market (Aashish, 2018). But the marketing strategy should be flexible and suitable for the present situation. At present; most firms like McDonald’s are depending on holistic marketing philosophy. According to this philosophy; business firms consider all related internal &external issues that directly or indirectly affect the business functions (Aashish, 2018). Aashish (2018) stated that firstly; the internal and external factors are to be found and then analyzed factors to take accurate decisions on the marketing functions. In the case of McDonald’s, this philosophy is very suitable to grip the global market. This philosophy is very helpful to take decisions on marketing functions including relationship marketing, performance marketing, integrated marketing and internal marketing………………..