Contents

Introduction:..........................................................................................................................................2
Various elements of marketing process:................................................................................................3
Situation analysis:..............................................................................................................................3
Marketing strategy:............................................................................................................................3
Marketing mix decisions:..................................................................................................................4
Implement and control:......................................................................................................................4
Benefit and cost for marketing operation:..............................................................................................4
Marketing environment:.......................................................................................................................5
Macro environment:..............................................................................................................................5
PESTEL analysis:.....................................................................................................................................6
Micro Environment:...............................................................................................................................7
SWOT analysis:......................................................................................................................................7
Five M’s of marketing:...........................................................................................................................8
McDonald’s marketing segmentation criteria:.......................................................................................9
Target strategy for McDonald’s:..........................................................................................................10
Cost plus price strategy:...................................................................................................................11
Buyers’ behaviour that affects marketing activities in different buying situation of McDonald’s:. .11
New product’s positioning in the market:............................................................................................12
Competitive advantage of McDonald’s:..............................................................................................13
Distribution is arranged to provide customer convenience:.................................................................13
Pricing strategies that helps McDonald’s marketing campaign:..........................................................14
Cost plus pricing method:................................................................................................................14
Promotional activity that helps McDonald’s to run their marketing activities:....................................14
McDonald’s marketing Mix:...............................................................................................................15
Products:..........................................................................................................................................15
Price:...............................................................................................................................................16
Promotion:.......................................................................................................................................16
Place:...............................................................................................................................................16
Marketing mix:....................................................................................................................................16
Differences of doing marketing campaign between organisations and customers:..............................16
Tactic:..............................................................................................................................................17
Media:.............................................................................................................................................17

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 Clients and customers:.....................................................................................................................17
Difference between international and domestic marketing:.................................................................17
Conclusion:..........................................................................................................................................18
References:..........................................................................................................................................18

Introduction:
Marketing is the activities that organisation adopts into their strategy to send
their messages to their targeted customers. Main target of marketing for an
organisation is to let customers know about the product and services that an
organisation provides and ready to provide for their targeted customers and
clients. It is very important for every organisation to run their marketing
campaign by following systematic ways. Therefore large organisations always
open a separate division for their marketing purposes. Marketing department
always works to increase the demand of the products and services. As a result
the organisation can reach to their target on time.

McDonald’s is a well known fast food restaurant in most of the developed

countries of the world. They have large chain of restaurant in 119 countries.
They are operating their businesses successfully and in most of the location,
they have achieved competitive advantages as well.

As a newly appointed marketing manager of McDonald’s, I would like to run a

marketing campaign in London. It is because I believe marketing has given a
strong back up for McDonald’s to achieve their successes and it is very
important to develop marketing strategy continuously to continuously rule
among the competitors.

This report will show the concept and purpose of marketing. The audience will
be about to use the concept of segmentation, targeting and positioning of
marketing as well. It will also help the audience to understand the individual
elements of the extended marketing mix and it will also show the marketing mix
in different context. All of those would be on the base of McDonald’s so that
the audience will clearly understand the necessity of new campaign of
McDonald’s and management of McDonald’s provide all support to run the
campaign.

2
Various elements of marketing process:
Main target of marketing is to send the message to the targeted customers and
make sure that the customers respond on it. Therefore it is important to follow a
formalized way of marketing campaign. McDonald’s can follow four steps for
their marketing process.

Situation
Analysis

Marketing
strategy

Marketing
decision mix

Implementation
and control

Situation analysis:
At the beginning of marketing campaign decision making process, McDonald’s
management can look on their present position. It is because present situation
helps management to take decision. Management can evaluate their present
position by using different formalized methods. SWOT analysis, PEST analysis,
PESTLE analysis is the method that McDonald’s can use. (marsdd 2012)
Marketing strategy:
There are mainly four points that McDonald’s can look on at the time of setting
marketing strategy. Those four points are as follows,

 McDonald’s can evaluate strengths and weaknesses of their present

position.
 They have to develop a perfect strategy for their marketing campaign.
 They have to build a standard market strategy.
 McDonald’s manager will implement the strategy and monitor that
strategy to make sure that the strategy is working perfectly. (marsdd
2012)

3
Marketing mix decisions:
McDonald’s can get different choices at the time of determining their marketing
mix decisions. It mainly depends on how deep they want to achieve at the time
of marketing campaign. McDonald’s can follow 4P’s analysis to determine their
marketing Mix. For 4P’s are as follows,

 Product
 Place
 Price
 Promotion
Implement and control:
This is the most important part of decision making. McDonald’s will implement
their strategy and will monitor their strategy to make sure that the strategy is
working perfectly. It could be possible that, there should be some gaps into their
strategy. Therefore if the management find any gaps after implementing the
strategy then they will take steps to fulfil those gaps. (marsdd 2012)

Benefit and cost for marketing operation:

Main target of McDonald’s marketing campaign is to send message to their
targeted customers to let them know about McDonald’s product and services.
The campaign would be done to keep their existing customers and to become
attracted by new customers as well. Mainly McDonald’s is a customer oriented
organisation and therefore their main target is to get as much customers as they
can.

Innovation and efficiency move McDonald’s to become a customer oriented

organisation. Marketing Campaign helps McDonald’s to get more customers
which help them to achieve competitive advantages. On the other hand, large
numbers of customers are helpful to get good profit as well. (McDonald’s 2008)

By six ways McDonald’s marketing policies help McDonald’s at the time of

running their business. Those Six points are as follows,

 McDonald’s marketing department takes steps to determine that, each and

every customer are getting unique experiences while they are at store.
 By using marketing campaign, McDonald’s makes close relationship with
their targeted customers.

4
  Marketing campaign helps McDonald’s to find out their customers
preference and expectations.
 Marketing department suggests McDonald’s to put their products on
promotion and that helps them to boost their sales.
 Marketing department suggests McDonald’s to follow formalized pricing
method and that helps them to increase their profits.
 Marketing department runs an audit in specific areas to find out the gaps.
Those audits could be on Service, Quality, Value and Cleanness.
(McDonald’s 2008)

On the other hand, there are some threats in Marketing Campaign.

McDonald’s operates their business in different countries of the world.
Therefore they have to make sure that, their marketing campaign strategy
does not harm any of the community of the world. Otherwise that could
cause them to lose a group of customers. (McDonald’s 2008)

As a newly appointed McDonald’s marketing manager, I would like to carry out

a marketing environment situation analysis. At the time of doing this work, I
will use SWOT analysis, PESTLE analysis, Five M theory to identify and analyse
Macro environment, Micro external environment, Micro internal environment
and tools and techniques suitable for each market situation.

Marketing environment:
McDonald’s is one of the leading fast food restaurant brands of the world. At
this situation McDonald’s can set up a new strategy which will be held to
increase existing market share through market stimulation.

Macro environment:
Macro environment of a business is the factors that influence the organisation
for decision making. Macro environment consists of major external and
uncontrollable factors which affects on an organisation’s performance and
strategy. By using PESTLE analysis an organisation can evaluate its macro
environment (Assignment point, 2014)

5
 6
buy McDonald’s food then the business will not be profitable.
If local people near McDonald’s store are not economically good enough to
(Assignment point, 2014)
new country. On the other hand, local business rules are also very important.
A country’s political issue is very important at the time of held a new store in a
Local legal issues are considerable for decision making process
Legal
Health and Safety issue is important for decision making process
Mcdonald's main raw materials are Beef, Potatos and Chicken which is not
available in all over the world.
Environmental
Mcdonald's Price plan depends on local economy where people has abiltiy to buy
Mcdonald's food.
Nowadays People try to place order by online. But Mcdonald's does not provide
that facilities.
Technological
McDonald's use modern technology for internal maintainance.
Etinic origin effects on Mcdonald's.
Social
Mcdonald's can not provide traditional food which sometimes effects on business
Tax rate effects businesses and different country's tax rate is different.
Inflation rate effects on businesses which has long time strategy
Economical
Some countries governments are putting restrictions to issueing Franchises
Political
Mcdonald's is making good relation with government by giving taxes.
decision making process.
be evaluated by using PESTEL analysis which would be helpful for marketing
Technological, Environment and Legal. McDonald’s macro environment could
Full meaning of PESTEL analysis is stands on Political, Economical, Social,
PESTEL analysis:
Local ethnic origin is also needs to take place at the time of decision making
process. For example, if McDonald’s keeps serving beef and chicken burger
only in the place where most of people are vegetarian then McDonald’s will
not be profitable (Assignment point, 2014).

It is also very important for McDonald’s to use modern technology.

McDonald’s can advertise by using their website which would be almost cost
free and by that way their advertising campaign would be successful as well in
modern world. (Assignment point, 2014).

Micro Environment:
Micro environment consist closely related factors of a business. Micro
environment factors of a business are directly related to its operation and
success. Therefore it is very important to evaluate a business by using Micro
environment factors. SWOT analysis is helpful for McDonald’s to evaluate its
micro environment factors at the time of marketing decision making process
(Learn marketing, 2012).

SWOT analysis:
Full stand of SWOT analysis is Strengths, Weaknesses, Opportunities, and
Threats. McDonald’s can evaluate its micro environment factors on the base of
SWOT analysis.

7
 Strengths

McDonald's market share is the largest fastfood market share of the world.
Mcdonald's advertising budget is $2billion per year
Food menu is favourable for local people
McDonald's has happymeal for children which attracts children

Weaknesses

food menu does not contain healthy food

High employee turnover
low differenciation

Oppertunities

Healthy food's demand could be increased

could start home delivery facilities
Online order facility could be implied

Threats

Rival restaurant's developing

trend towords healthey food
Currency flactuation
tax rate differenciaion
chains of local fast food restaurents

SWOT analysis would be very helpful for McDonald’s at the time of decision
making process. McDonald’s can use their opportunities to eliminate their
weaknesses and can develop their marketing chain. Rival fast food restaurants
always try to attract the customers but McDonald’s can overcome that threat
by using strengths.(Strategic management, 2012)

Five M’s of marketing:

Five M’s theory is also helpful for decision making process of marketing.
McDonald’s can evaluate its Macro and Micro environmental factors for their
marketing decision making process.

8
 McDonald's targeted market is general people

Market it's food is not costly but standard so every socities'

people like it.

Mcdonal's maintains health and safty rules

Message Their custoemr service is good

Can do advertise in Newspaper, magazine, webside

Media Media depends on local people's preference. For

example in London Mcdonald's use Newspaper for
advertising.

Mcdonald's has promised time to serving food

Moment They maintain perticular time to prcess the food.

Mcdonald's is world famous fast food restaurant

Method They have kids meal which other fast food does not
provide
Their food is cheap and they have meal deal facilities.

(Mooij, 2004)

McDonald’s marketing segmentation criteria:

McDonald’s can follow segmentation criteria to become attracted by more
customers. Segmentation criteria of marketing are to divide their activities by
different segments and change one or more small segments to get attraction of a
group of customers. McDonald’s segmentation criteria can be divided by
4caterories.

9
 Demographically
Demographically

Market
Geographically
Geographically
segmentation Physographycally
Physographycally
of
Mcdonald's

Behaviorally
Behaviorally

This report has already shown SWOT analysis on McDonald’s. In there it has
shown lots of opportunities. As a marketing manager of McDonald’s in London
area, I can take lots of advantages from that. First of all, most of the people in
London uses internet at their home. Therefore McDonald’s can develop their
website and can allow customers to place their order. By that way customers
can avoid the queue and they would like to have McDonald’s as they can check
McDonald’s products and offers easily. It saves employee hours as well.

On the other hand, they can start home delivery service in London. In London,
people do not like to come out at winter time. On the top of that, they might like
to have their meal at home. By considering that situation, McDonald’s can start
home delivery service and by that way the organisation can get a group of
customers. In addition, they can start taking orders by online and over the phone
as well. It helps them to same employee hours as well. (newmarketing blog
2010)

Target strategy for McDonald’s:

According to BBC, McDonald’s has already run different surveys to know
about their customer’s expectation from them. Survey is the method that
different organisation use to get opinion from large amount of population.

10
People in London are very health conscious. Therefore the survey has shown
that, a large amount of people in London avoids McDonald’s because
McDonald’s food menu contains a large amount of calories. Therefore it could
be suggested that, McDonald’s can add healthy food into their food menu to get
a group of health conscious customers. Thus they can add fruit bags into their
menu.
Cost plus price strategy:
McDonald’s can add cost plus price strategy into their strategy. It would be
helpful for them to calculate costs and selling price. Cost plus price strategy also
helps organisations to find out their variable cost and reduce the cost. By
looking at that situation the organisation can adopt cost plus price method for
their pricing. It is simple to calculate as well.

McDonald’s management can find out the unit cost of the products and simply
add a percentage on it as profit. By that way management can easily control the
profit margin as well.

Management of McDonald’s can review the variable costs and can take steps to
reduce it as well. To do that, they can renegotiate with their suppliers to reduce
the raw material price. They can directly contract to the firm as well to avoid the
middle man expenses.

If McDonald’s reduce their costs then their selling price will go down as well.
As a result Marketing department could use that advantages and use that to their
marketing campaign. By that way the marketing campaign will be able to get
more customers and the campaign would be successful.
Buyers’ behaviour that affects marketing activities in different buying situation
of McDonald’s:
McDonald’s has stores in different countries of the world. Different counties
cultures are different and people’s buying habits also effects on the base of the
culture. Therefore McDonald’s cannot use the same strategy for all the stores in
the world. On the top of that, people from different parts come to London.
Marketing department of McDonald’s can consider all the cultures at the time of
doing campaign in London. (CIM 2013)

According to a marketing research, People take five steps before buying a

product from the market. Those five steps are as follows,

11
 Need
recognition and Information Information of Post-perchase
Purchases
problem search alternativeness evaluation
awareness

McDonald’s have to keep an eye on those parts to make sure that, people buy
products from them and customers come back again after getting the products.
(CIM 2013)

New product’s positioning in the market:

It is important to determine about the product positioning before starting a
marketing campaign. It helps at the time of decision making process as well.
McDonald’s can follow the following diagram at the time of determining the
product positioning into market.

12
According to the diagram, McDonald’s would be market development part
when they will start home delivery service and online order taking service. It is
because they will use same products in the new market. (B. Carroll 2013)

Competitive advantage of McDonald’s:

The position of an organisation in a market among same type of organisation
determines competitive advantages. Michel porter has shown three ways that an
organisation can get competitive advantages. Those are cost leadership,
differentiation and focus.

As this statement has already shown above that, the organisation can easily gain
cost leadership competitive advantages by reducing cost of the product and
selling products by very lower price. It would be helpful for marketing
department to run successful campaigns as well. Cost plus pricing method
would be helpful for them to achieve competitive advantages on the base of cost
leadership way. (Site 2013)

McDonald’s main rivals in London are Burger King, KFC etc. McDonald’s can
differentiate their products and services by developing their website and starting
home delivery services.

Their main target is focus on customers. Therefore they can take steps to get all
kind of customers. For that they can introduce new products like fruits bag to
get health conscious customers. (Site 2013)

Distribution is arranged to provide customer convenience:

McDonald’s has different branches in different parts of the UK and moreover
they have branches in 119 countries of the world. As a result it could be said
that, they have long chain in all over the world and all of their branches
maintain same taste of the foods and same good customer services. Tourists
from different countries come into the UK and they find same flavour and
feeling as they get at home.

McDonald’s in London provides additional facilities than their competitors as

well. They provide wifi facilities to their customers and they have toilet
facilities in most of their branches as well. They play music to make sure that

13
the customers are getting comfortable environment and their decorations inside
the stores are also favourable for the customers.

All the above points’ help McDonald’s to get new customers and a large
number of loyal customers as well. (McDonald’s 2004)

Pricing strategies that helps McDonald’s marketing campaign:

This statement has already shown that, McDonald’s can easily control their
pricing activities by using cost plus pricing method. In addition they have to
control the variable costs of the product. Normally cost of a product can be
divided by two groups. One is fixed costs and another one is variable costs.
Fixed costs are fixed but McDonald’s can control variable costs. Therefore it
could be said that, Management of McDonald’s can review the variable costs
again and take steps to control that. If cost of the products reduces then the
organisation can reduce the selling price by keeping same profit margin. Low
price products with good quality would be helpful for the marketing department
to get more customers.

By looking at that situation, McDonald’s can try to reduce their raw material
costs by renegotiating with their suppliers, they can reduce the labour costs by
taking steps to reduce the labour turn over and they can keep an eye to reduce
other variable costs as well.
Cost plus pricing method:
Cost plus pricing method is very effective method to setting up the selling price.
It is very simple as well. The organisation can find out the unit cost of the
product and on the top of that they can put a percentage as profit to find out the
selling price of the product. Therefore the management can decide the profit
margin and control the selling price easily. (BBC 2004)

Promotional activity that helps McDonald’s to run their marketing

activities:
McDonald’s put their products on different promotion to increase their revenue.
It also helps their marketing department to make them attractive in front of the
customers. At present McDonald’s has already put their products in different
meal deals. As a result customers become happy to get lots of foods by lower
price and they buy the product. Therefore McDonald’s revenue goes up and net
profit goes up as well.

14
McDonald’s has kid’s meal. It helps them to become attractive in front of the
children. As a result children come to McDonald’s and they become familiar
with McDonald’s from their childhood.

In addition, McDonald’s can put their products on promotion in online when

they will develop their website. They can provide offers to their customers like
if they order online and spend a certain amount then they will get free home
delivery service. It would be helpful for marketing department to arrange a
successful marketing campaign. (McDonald’s 2013)

McDonald’s marketing Mix:

It is important for every organisation to set up a target on the base of marketing
mix at the time of decision making process to run a marketing campaign.
Marketing campaign would be set to achieve all the objectives of marketing
mix. Therefore McDonald’s can set up their marketing mix target on the base of
4P’s theory.

Product

Burger
King's
Promotion Price
marketing
mix

Place

Products:
It is very important for every organisation to provide good qualities products.
Customers always expect good quality products. All the stores of McDonald’s
follow health and safety rules at the time of preparing their products and their
products qualities are been monitoring by a separate division of McDonald’s.
(McDonald’s 2013)

15
Price:
In London, McDonald’s prices of the products are lower than their competitors.
Customers always expect to have good qualities products by lower price.
McDonald’s is able to do that.
Promotion:
Above statement has already shown that, McDonald’s put their products in meal
deal to get more customers. Promotion activities are helpful for marketing
department as well.
Place:
It is important to select suitable place at the time of running marketing
campaign. McDonald’s can run their marketing campaign in different public
places in London they can put their advertisement in local news paper and
different internet social sites.

Marketing mix:
Above statement has already shown that, it is essential for every organisation to
achieve marketing mix objectives to successfully complete marketing
campaign. Different authors have shown different marketing mix. It mainly
depends on the organisation that how dip they want to achieve from their
marketing campaign. There are different objectives that mainly show by P’s.
There are 4P’s, 7P’s, 12P’s and even 28P’s objectives of marketing mix. It has
shown that, McDonald’s can use 4p’s objectives at the time of running their
marketing campaign. Those 4P’s are Products, Price, Promotion and Place.
Most of the organisation uses that 4P’s objectives for their marketing campaign.
(Interdciplinary business research 2009)

Differences of doing marketing campaign between organisations and

customers:
Different type of organisations does their business with different type of
customers. Some organisations do business directly with the customers and
some does business with other organisation. Therefore marketing department of
an organisation does their marketing activities on the base of the type of the
organisation. Business to business marketing happens when the organisation
does business with other business organisations. On the other hand, Business to
customer marketing happens when one organisation does their business directly

16
with the customers. There are lots of differences between business to business
and business to customers marketing process.
Tactic:
Organisation use different promotions and technique at the time of doing
marketing for business to customers. Normally it is not essential for that type of
marketing to send their agents to each and every customer. They can use radio,
TV, local newspapers etc to send their message to their customers. On the other
hand, B2B business sends their marketing agents to their targeted customers. In
that situation the agent would be smart as they sometimes negotiate with other
business organisations.
Media:
Both type of marketing department use social media to run their marketing
activities. However B2B uses social Medias like LinkedIn and B2C marketing
depart uses social Medias like face book, twitter etc. (bostinno.streetwise)
Clients and customers:
B2B gets clients that stay long term with the organisation. Their clients make
large deals as well. On the other hand, B2C customers might be loyal for the
organisation but B2C organisations cannot guarantee about their clients. They
can be move anytime. (bostinno.streetwise)

Difference between international and domestic marketing:

When an organisation run their marketing activities and extend goods and
services across the border of a political area then it called international
marketing. On the other hand, when an organisation does their business in local
areas then it called domestic marketing. There are lots of differences between
international marketing and domestic marketing.

International marketing gets lots of scope as their marketing area is large. On

the other hand, domestic marketing do not get scope like international
marketing because their marketing area is abundant by their organisation’s
business area.

International business effects directly at the time political relationships between

two countries do not go well. However domestic marketing do not affects for
outside politics. (differencebetween)

17
International marketing can use modern technologies at the time of running
their marketing activities. They can contract by using modern technologies with
their clients. On the other hand, Domestic marketing use technologies that is
famous in their local areas. For example, domestic marketing cannot send email
to their customers if their local areas customers do not use internet.
(differencebetween)

Conclusion:
Finally it could be said that, Marketing helps the organisation to increase their
revenue and increase the value of the organisation. None of the organisation can
reach to their goal without doing marketing activities. Therefore it is essential
for all organisations to continuously develop their marketing strategies.
Improved marketing strategy could be helpful for the organisation to achieve
competitive advantages as well. It is important for all the marketing departments
to follow formalized marketing methods at the time of doing marketing
campaign. It helps to finish their marketing campaign successfully.

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