Marketing is an important process of business that allows corporate entity to create a better image in the marketplace. McDonald's is the leading fast food retailer of world's market and it is focused towards satiating the needs and wants of customers Nwankwo and Gbadamosi, The effective marketing requires to collect specific market information which is called as a marketing process.
Market analysis- The foremost elements of marketing process is market analysis in which McDonald's with analysis of market Pomering, The company major focused towards conducting marketing research via social media marketing so as to known customers behaviours. Identification of target Market : To identify target market is the major concept of business in which company identifies the needs of different segments and choose the market to which , it serve Sheth and Sisodia, The market of McDonald's is targeted on the basis of age, income, gender and other factors.
Being a brand, MacDonald designs objectives so as to follow guidelines and provides direction to the success. Formation of appropriate marketing mix: Developing of appropriate marketing mix is the most important tactic attain the objectives of business. On the basis of marketing research, company designs marketing mix such as product, price, place, promotion, physical evidence, process and people Wang and Pizam, In the corporate world , there could be seen various concepts of marketing such as product oriented concept, sales oriented concept, production oriented concept and the market oriented concept.
The marketing oriented concept is focused towards designing the product and services in accordance with the needs and wants of customers Wilson and Gilligan, The major benefit of marketing concept is noted that MacDonald is world's leading fast food retailers which has created a image as a low cost product provider. The brand is famous for its quality and low prices. The mentioned entity is witnessed not for providing food but also experience in the ways of cheerful environment, air-conditioned, friendly restaurant with innovation Zikmund and Babin, However, this concept has came up with cost as well as benefits for the company.
The major benefit of this marketing oriented concept is that MacDonald's can retain the customers by satisfying their needs and wants. To aware with the needs of customers the business has to pay monetary resources for conducting marketing research. This is considered as a cost of adopting marketing oriented concept for MacDonald.
In addition to that, market is rapidly change and market orientation strategy allows company to take a marketing decision as per customer market demand. Hence , the marketing orientation concept has benefits as well as cost for the company Ali and Talwar, Large number of macro along with micro environmental factors is present which affects marketing decisions being taken by McDonald's MacDonald's UK, McDonald carries out its operations in different markets and for the same it is necessary to undertake different segmentation criteria Hughes, Further, while serving in the market of china it is required for brand to segment its market on the basis of income level of consumers.
Majority of the people living in the society belongs to lower of middle class. Therefore, by segmenting target market on the basis of their income level business can target market in efficient manner and this can boost sales volume of the company.
McDonald’s Marketing Mix (4Ps) Analysis
On the other hand, another segmentation criterion which is beneficial for business in the selected market of UK is on the basis of age as usually hamburger is consumed by people lying in the age group of 16 to Therefore, by targeting individuals lying in this age group it is possible for business to target its market in appropriate manner Korotkov, Occhiocupo and Simkin, After undertaking segmentation criteria it is necessary to adopt effective targeting strategy so that business can easily target customers in appropriate manner Onkvisit and Shaw, In short one of the best strategy which company can adopt for targeting its customers is multi segment targeting.
One of the main reason behind selecting this targeting strategy is that it can help business enterprise to focus on more than one target segment. Business carries out operations in large number of market and segmentation criteria differs from one market to another. Apart from this, recommending multi segment targeting will provide another benefit to firm such as it is cost effective. This strategy will provide ample of opportunities to business and it will become easy to meet with the expectations of the target market in every possible manner Kotler and Armstrong, On the other hand, other type of targeting strategy is not appropriate for the business such as undifferentiated one as by adopting this company is required to adopt single targeting strategy.
Further, concentrated as a strategy supports business to focus on niche market which is also not applicable in case of McDonald. Therefore, with the help of this it can be said that multi segment as a targeting strategy can have positive impact on sales along with profitability of business Ferrell and et. Further, it is well known fact that buyer behavior is affected by large number of factors which business has to consider so that target market can be easily influenced to purchase products Richter, In the present era, every business has started to promote its products with the help of social media and it is enhancing sales volume of company.
Moreover, by promoting commodities with the help of facebook and other networking sites McDonald is attracting its customers and this is supporting in influencing their purchase behavior. Further, marketing activities of company are quite effective through which large amount of information is being shared by business with its target market. For instance if any customer prefers to consume hamburgers and different types of brands are present in the market who are offering this product.
Apart from this, it is necessary for business to consider personal factors of customers such as age, income, taste and preference of target market.
Therefore, in this buying behavior of customer is affected by marketing activities of enterprise. In order to perform efficiently in the market it is required for McDonalds to have effective positioning strategy so that level of customer satisfaction can be enhanced easily.
Page 1: Introduction
Selected product is hamburger of McDonald for which the suitable positioning strategy is on the basis of quality Priya, Baisya and Sharma, Further, it is well known fact that company like McDonald strongly focuses on quality of its products and this is one of the main reason due to which business is able to enhance its overall presence at global level. Positioning on the basis of quality and other type of attributes in the market will be one of the most appropriate positioning strategy for the business and this can assist in accomplishing overall aims and objectives of the company.
Further, McDonald carries out its operations in the market where competition level is quite high and due to this basic reason product differentiation is necessary which is possible by representing quality in the product Naik, Raman and Winer, By strongly focusing on quality of the hamburger company can develop its brand image at global level and this can assist in grabbing large number of opportunities which are being present at international level.
Therefore, the proposed positioning strategy will be fruitful for the business in every possible and can allow to respond towards the changing need and requirement of the target market in every possible manner. The company attain competitive advantages as leading the market and enjoying huge customers base. Sustainable competitive advantage is mostly meant to be powerful when it exist in the market for longer duration of time and the business who maintain the same for longer time is said to be Sustainable competitive advantage.
Cost leadership is successfully attained by the company as the operational cost is reduced and MacDonald is generating higher returns and profits Sodhi, This allows MacDonald to have earning per share and return cash dividends to their shareholders as earning long term returns. The adoption of this strategy has allowed company to increase there more brand image in the market by becoming consumer favourite food chain ,.
It has also adopt the new marker technologies as user are becoming more savvy to new techniques.
Case Study on McDonald's Marketing Principles | Assignment Help
And by providing them time to time good innovative quality food products at reasonable price. With the motive to deliver appropriate products to the target market as per their expectations it is required for company to have proper distribution strategy. For delivering products physical stores are used by firm through which convenience is provided to target market and this has enhanced brand image of business in the market. This distribution strategy of business allows business to understand need and overall requirement of target market and in turn act as development tool for the entire company Hennig-Thurau, Gwinner and Gremler, All the physical stores of McDonald are effective enough in attracting customers and it has also enhanced sales volume of the business.
It is a 3 year mortgage loan and golden arches was not able to generate funds to pay it.