Table of Contents
Company background (McDonald’s)
1.1 Various elements of the marketing process.
What is marketing?.
Evolution of marketing.
Marketing planning process.
1.2 Benefits and costs of a marketing orientation for McDonald’s.
What is marketing orientation?.
Benefits of marketing orientation.
Cost of marketing orientation.
2.1 Macro and micro environmental factors which influence marketing decisions of McDonald’s
PESTLE Analysis on McDonald’s macro-environmental factors.
Microenvironmental factors can impact McDonald’s business.
2.2 Propose segmentation criteria to be used for products in different markets.
What is Segmentation?.
Market Segmentation for McDonald’s Coffee -2015.
Market Segments Characteristics for McDonald’s-2015.
McDonald’s Market Segment in Grid.
2.3 Targeting strategy for a selected product or service.
McDonald’s targeting to offer its Coffee for 2015.
2.4 New positioning for McDonald’s Coffee.
2.5 How buyer behavior affects marketing activities in different buying situations.
Buyer decisions process.
Factors that affect our buying decisions.
Impact of buyer decision on McDonald’s marketing activities.
A business’s success depends on its effective marketing campaigns and strategies. As a result, an organization must clear the concept of marketing and its principles, and have to apply appropriately in the business operations (Lorette, 2014). This report has explained and evaluated different aspects of marketing based on a particular organization named “McDonald”.
Company background (McDonald’s)
McDonald’s, a leading brand in the world’s restaurant industry, was founded in 1954 by 52 years old salesman called ‘Ray Kroc’ in the US, which has been growing fast gaining a strong brand appeal and reaching the current momentum in the global restaurant industry. It serves millions of customers every day in its more than 33,000 restaurants by about 1.5 million dedicated and devoted workforces. McDonald’s is more popular in the US and EU than in the rest of the world due to its healthier alternative such as salads, wraps, fruits. The key products of McDonald’s are hamburgers, cheeseburgers, breakfast items, chicken products, different kinds of hot and soft drinks, sweets and desserts (McDonald’s Corporation, 2014). McDonald’s is gaining 13% sales revenue alone in the fast restaurant industry, where its seven main competitors are gaining only 47% of total sales revenues. The main competitors of McDonald’s in the United Kingdom are Burger King, Star Bug, Greggs, SubWay, Prêt Manager, local and high street restaurants, including Indian restaurants and local supermarkets such as Tesco, ASDA, Sainsbury, Morrison, Co-operative, etc. McDonald’s are available in consumer’s convenience locations including high streets, parking areas, shopping malls, visiting spots, close to historical places, motorways, Tube, Bus stops, Undergrounds and places where people come for leisure and recreation (McDonald’s Corporation, 2014).
1.1 Various elements of the marketing process
What is marketing?
According to Kotler (2012), marketing refers to the social and managerial process whereby groups as well as individuals gain what they expect and need through creating and delivering products and added values to others. In a word, this is a managerial process made and implemented by an individual or group organization. The key aims of marketing are to meet the needs and expectations of the deploying companies through improved sales target and market share, maximized profit and reduced costs, changing the needs and expectations of others individuals and groups.
Evolution of marketing
As Kotler et al. (2012) notes, the concept of marketing first started in a pre-industrial revolution which is called the simple trade era. Then, it promoted production-oriented from the 1860s to the 1920s known as the production era. Following this, sales-oriented marketing came under practice from the 1920s to the 1940s. From the 1940s the marketers introduced separate departments for marketing, which continued until the 1960s. After that, the marketers were
thinking to practice marketing activities as a company, which was continued from the 1960s to the 1990s. Next, the relationship marketing concept came under the consideration of marketers from the 1990s to 2010. Finally, since 2010 marketers have now been focusing on the newly proposed marketing concept of social media and mobile marketing.
The marketing process in the following figure shows marketing’s roles and activities in organizations, as well as the forces influencing the marketing strategies. At the core of the marketing process, a marketing key target is consumers. Following the target customers, marketers define the marketing mix including product, price, promotion, and place. Then, the marketers focus on the marketing planning process including analysis, planning, implementation and control. Next, the marketer’s emphasis on key stakeholders including marketing intermediaries, the general public, competitors, and suppliers. Finally, the marketers concentrate on business external environmental factors including political, economic, social, technological, legal, and environmental issues (Kotler et al., 2012).
Marketing planning process
According to Kotler et al. (2012), the marketing planning process includes five stages shown in figure 1.4: analysis, plan, implementation, control, and optimizations. In the first step, marketers have to analyze the overall market requirements including the business’s both internal and external environmental issues. Following this, marketers need to make plans focusing on the business aims and objectives to meet organizational goals. Then, the undertaking plans have to be implemented and adopted into the business operation appropriately so that they work effectively and efficiently. Next, the marketers must monitor and evaluate the performance of implemented marketing plans to measure their effectiveness and to control based on business performance. Finally, the marketers need to optimize the marketing plans in changing the needs of the business.
1.2 Benefits and costs of a marketing orientation for McDonald’s
What is marketing orientation?
A business can be market-oriented, sale-oriented, product-oriented, and customer-oriented. According to Kotler et al. (2012), marketing orientation refers to the company’s philosophy which focused on finding out and meeting the consumers changing needs and expectations through the company’s marketing mix. Marketing orientation works in reverse attempting to particular products and services to meet customer requirements. In a word, marketing orientation is considered as a co-ordinated marketing campaign between business and its consumers, which support an organization to adapt their market orientation to survive in a competitive market, an increasingly global economy and in the environment of customer alternative choices………………………..