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Various Elements of the Marketing Process - McDonald's


  • Unit No: 4
  • Level: Undergraduate/College
  • Pages: 19 / Words 4847
  • Paper Type: Assignment
  • Course Code: F/601/0556
  • Downloads: 668
Organization Selected : McDonalds


Marketing is considered as the essential and most significant part of each and every organisation. It is the management and study of exchange relationship. This concept is used to develop, satisfy and keep the customer for long time. In addition, marketing is valuable and useful element which is used by the all business with aim to accomplish their long term goals and objectives within predetermined period of time. As per the American Marketing association , marketing is a significant element for the success and development of company and it is having direct and strong relation with performance or effectiveness of enterprise (Alserhan, 2016). This report is based on McDonalds, it is an American fast food business which was founded by Richard and Maurice McDonald in 1940. They provide different products and services to the customers with the help of different tools and technique's of marketing. This assignment is divided into different parts including different elements of marketing process, costs and profit of a marketing. Elements of marketing mix and promotional activities is also determined in this report. International marketing and market segmentation are also covered in this study.


1.1 Various elements of the marketing process

Marketing is identify as a social process by which groups and individuals obtain what they want and need through developing and exchanging value and products with others (7 Key marketing principles,2018). In other word, marketing is the set of institution, activity and process for developing, communicating, exchanging and delivering offering that have value for partners, customers, clients and society at large. This concept play vital role for identifying the basic demands, needs and wants of the customers (Bernstein, 2015). It is also essential for satisfy the customer requirement in an effective and systematic manner.

Marketing process: It is an effective process of evaluating market opportunities, creating the marketing mix, choosing target markets and handling the marketing effort. Target audience stand at the middle of marketing process.

Elements of marketing process: There are different types of elements which are used by the McDonalds with motive to attract large number of customers as well as gain competitive advantages easily. Some components of marketing process are determine as below:

  • Situational Analysis: This process includes different elements which highly effects on business performance including Pestle, Swot, stakeholder and porter's five force analysis. SWOR analysis includes strengths, weakness, threats and opportunities of the business that effects on the profitability and productivity of the company (Corrigan, 2011). Main strengths of the Mcdonald is its well-established image across the world. PESTLE and Porter's five model is more effective and valuable part for the organisation to expand their business operations and activities at international and different way.
  • Marketing Objectives: It is another process which is define the marketing objective of the company. Beside this, marketing objective and aim of the Mcdonald is to satisfy customer needs and wants by providing quality in its product and services at reasonable price. Such kind of objective always help the firm to accomplish their goals and mission. It is essential because they can display how the enterprise will good from marketing, training the workforce and managing all activities accurately.
  • Marketing strategy: It is identify as a long term plan in order to attain certain goals and objectives within predetermined period of time (Donovan, 2011). Segmentation, Targeting and Positioning is known as an effective marketing strategy which play vital role in the success and growth of company. People willing to have a delicious and hygienic non conventional meal at a restaurant is the segment of company. Business entity target youth and children from upper and middle class. Position of the firm is an fun filled fast food joint or restaurant the entire family to enjoy.
  • Marketing Mix: It is most important and vital process which is used by each and every company with motive to introduce their innovative products and services in marketplace. This activity includes 7P's considering product, price, place, promotion, process, physical evidence and people. All these aspects are highly essential for the growth and development of company within predetermined time period.
  • Implementation and Control: It is a last phase of management procedure that consist of controlling and implementing strategy management activity as an entire in order to ensure that it is lunching or operating in proper manner. It is the role of McDonald manager to control all activities in an appropriate way as well as maintain strong position at marketplace.

1.2 Benefits and costs of a marketing orientation

In order to meet the demands and needs of the customers, McDonald set an appropriate strategies or plan of action for marketing orientation. There are some advantages and cost of a marketing orientation are determined as below:

Marketing Orientation in McDonalds: It is identify as an effective tool which is followed by the restaurant to get customer centric. Main motive of the company is to make strong and long term relationship with customers as well as making maximum amount of capital. They are highly emphasised with the changing requirement and taste of clients and introduce innovative products as per them (Ennew, Waite and Waite, 2013). It increase the interest of buyers and attracts large number of customers towards the recently lunched product of business. However, they serve hamburgers and food for both kind of people including vegetarian and non-vegetarian. Thus, it is essential for the business entity in order to retain their strong position at marketplace.

Customer Profitability: In order to adopting best and effective marketing orientation tool, restaurant is capable in order to create more sales from their food zone. Beside this, prices of their all food items such as Mac Puff, Burger and many other are not maximum but quality of such products are high. In marketplace, there are different challengers of the McDonalds such as Dominos, Pizza Hut, KFC and so on are highly influence on the business performance. All these are another food business due to which McDonald needs to retain its quality products and services so that customer loyalty and profitability can be increased. Further, company service various sort of burger in various states according to the taste and culture of people.

Customer Retention: It is another benefit which assist the enterprise to maximise their growth and success at different level. In this market orientation play important role in knowing the customer requirements effectively. For keeping their clients, company serve speedy services with different discount coupons and many other benefits to them. Company service happy meal services to their all target customers in which they can obtain various gift items including toy for children (Fill, 2011). Furthermore, business comes with lucrative or profitable schemes and service for its available clients which assist in retaining maximum for buyers. Such kind of practices also support in influencing buyers to purchase goods repeatedly from restaurant.

Thus, all these are highly essential and important for the company to maximise their sales as well as accomplish long term objectives easily. It will also support the enterprise to expand their business operations and activities at international marketplace. Thus, it proof it marketing orientation is significant and valuable for the long term growth and progress of organisation.


3.1 Products are developed to sustain competitive advantage

In order to achieving maximum competitive edge or benefits is one of the essential and main motive of each and every enterprise. Due to this, business entity can distinguish themselves from their challengers and create positive goodwill in the marketplace and in the customer's mind (Gordon, Carrigan and Hastings, 2011). For this, there are different valuable factor of marketing mix of McDonalds which is important for the company to gain competitive advantages within predetermined period of time. Therefore, 4P's of the McDonalds are explain as below:

4P's of marketing mix



McDonalds is trying to increase their market share by innovating its new services and products such as crunchy scold shake. Service such good assist them in maximising customer base from various segment known. Further, by financing maximum in research and development department, McDonald is capable in order to create more beneficial or essential for psychographic segments (Henley, Raffin and Caemmerer, 2011). Due to this, business is capable to add few substances as well as developing is more effective for those person who are health conscious.


Value perception of the customers is more significant in order to determine product price. McDonalds have increased more section in the food sector and get the top brand through their high strategy of price. They primarily target upper as well as middle income level group and try render them quality in their services and products with hygiene aspects on a top price. Under this buyers are still prompt in order to give for it via its quality.


McDonalds has chosen the crowded area for innovating their new services or products and opening an unique store (Hershey and Wood, 2011). New schools, colleges and shopping malls are the more attractive areas where business wants and needs to innovate its healthy and new beverage.


McDonalds have observe very well within the concern of their promotional scheme or strategy. It easily identifies that their competitive edge is extremely sustained through the accurate advertisements via banners as well as television in various country of city.

3.2 Distribution is arranged to provide customer convenience

For this accurate and effective distribution strategy for the specified products of McDonalds such as Crunchy cold shake. In this they can outset its consumer shakes packets and develop it gettable to different shops as well as franchise also (Jobber and Ellis-Chadwick, 2012). These type of packets or bundles will also be existing for buyers as steps of their door after requiring it online. Therefore, McDonalds will follow two kinds of distribution strategy including level one and level zero. Under level one, meaning of these strategy is to serving product at retail outlet. In cause of level zero, company delivering their new products packets at door step. Both are most effective and beneficial distribution channels for the company to fulfil basis needs and wants of the customers easily. Further, it reduce the distribution channel cost which business is capable in order to serve accurate products at perfect time period with better quality. All these are provided by the company using different options such as home delivery and take away. Thus, it support them in attracting large number of clients as well as achieve their comparative edge and increasing market share via the online delivery of their new products. With the assist of these type of option clients can prefer their closest location of the shop.

3.3 Prices are set to reflect an organisation’s objectives and market conditions

In order to setting an effective pricing strategies of each and every business is highly reflects the objectives and market situation of company. McDonald is extremely emphasised with high and middle income level of group. In this business, it is quite important for them to chose better strategy of price which renders more return to customers. At the first phase, business entity requires to keep its product or service pricing minimum so that company can easily attract various number of clients (Kotler and Armstrong, 2013). One of the effective and essential modes in to create accurate marketplace for its recently launched packet product. Due to this, restaurant will select psychographic pricing strategy in which product prices that will be fix up as £0.99, £1.99 and many other, it will support in rising the sales. However, McDonalds is expanding their business operations and activities in various nations through in which they are facing various economic conditions. By rendering better taste and quality as per the preferences and needs of customers, in this they are capable to render more value for their fund or money. In this respects, it can be being that restaurant is favouring its pricing strategy in order to develop loyalty minimum pricing at first phase and attract many-sided clients.

3.4 Promotional activity is integrated to achieve marketing objectives

Promotional is more important and essential way to attract large number of customers and gain competitive advantages easily. Thus, it is significant strategy for obtaining maximum sales volume for the recently launched packet goods. In order to develop accurate marketing plan for their newly beverage firm can advertise through banners, cash coupons, discounts at shopping malls and various country close by franchises of restaurant. It is undertaken into consideration for maximum publicity (Lees-Marshment, 2014). Beside this, it can be identify that business can also turn via the brand endorsement from the famous celebrities. Thus, it is identify as an essential way in order to attract large number of customers towards business products and services. Another distribution channels of the company is its online delivery which assist the company to maximise their sales and revenues. In this respects, McDonalds can advertise their products and services on social media considering Twitter, YouTube, Facebook and many other which support to increased awareness among the people in an effective and efficient manner. Along with this, company offered discount voucher to their regular customers via SMS to keep majority of clients. In this way, McDonalds can make an effective and accurate strategies for advertising its hygiene forces as well as exciting serving for their clients. Thus, promotional activities is essential for the organisation to attract various number of clients in a systematic and effective manner (Legrand, Chen and Sloan, 2013). Thus, it will support the business to accomplish their targets and objectives easily which is benefited to the enterprise to gain competitive advantages within an organisation.

3.5 Additional elements of the extended marketing mix

There are different extended factors or parts which are more and equally essential for the development of organisation other than product, place, promotion and price. Other factors are process management, physical evidence and people. All these are highly significant factors for enterprise which supports in creating their customers satisfied and happy.

3P's of marketing mix



McDonalds hire workers and train them by providing effective training to them. It is essential for the company to serve standard and quality goods to the clients each and every time. Thus, employees are identify as key resources and important factor of firm that support in rising the competency or capability in the marketplace and also assist in achieving a benefits over the competition (Legrand, Chen and Sloan, 2013.).


It shows that how goods is made or assemble for this business entity are having better area of open kitchen so that buyers can go via the process in an easy manner. McDonalds follows the self ordering and self services process in which demands of the products are placed and monitored by clients themselves over the counter.

Physical evidence

These part of the marketing mix is identify as an environment which restaurant renders to its target and potentials clients at the period of spending quality time as well as refreshment. Company has always tried in order to retain its store atmosphere by rendering happening situation to entire customers and employees as well as also give clean environment to them (Newman, 2012). Further, entire hygiene factors that must be included by them at period developing products.



4.1 Plan marketing mixes for two different segments in consumer markets

Marketing mixes for 2 various section in consumer markets including latest launched beverage crunchy cold shake and Mac Puff. Thus, 4P's of both products are determined as below:

4p's of marketing Mix

Crunchy cold shake

Mac Puff


In order to create its existence in available sector, McDonalds have to establish this beverage. It benefited to the company to attract different number of teenagers easily (Shank and Lyberger, 2014).

This product is also made by the McDonalds with purpose of keeping it in the mind of families and kids. It is identified as a light food product.


At the first phase they retain the price of their products minimum with aim to targeted both middle and high income class of group.

Price of Mac Puff is very normal and not high due to which an enterprise is capable to attract various range of customers.


For lunching and establishing Crunchy cold shake, McDonalds have chosen franchises stores with the shopping or purchasing malls. Other than shops, business entity also produce their specified products on their own websites and render free home delivery which help the company to keep their strong position at market.

Mac Puff is available at each and every store of company by rendering wide base of facilities to them (Sheth and Sisodia, 2015).


In order to advertise their specified product, McDonalds can follow celebrity endorsement and banner promotion in purchasing malls with motto to attract various range of clients.

In order to promote such kind of product, McDonalds follows above the line tools in which firm develop advertisements or promotion by purchasing entire its hygiene's factors.


4.2 Differences in marketing products and services to businesses

There are many changes in promotional events of McDonald's as their main aim is to deliver product which are effective for increasing sales and profits. There is difference in promotional events for ultimate consumer and middle men. As there is use of techniques through which they can attract people to take their franchisee (Sheth and Sisodia, 2015). There are various ways through which McDonald's promote their product such as television advertisement, social media, hoarding, side walkers, etc. There are various changes which are required to be taken while marketing products to consumer and business. As there are various outlets of McDonald's in various parts of company, so in this case there is requirement of policies through which changes are required to be taken. While making policies for attracting consumer managers of McDonald's has to accept changes which are making policies for upliftment of sales. To attract consumer managers of McDonald's come with

  • Buy one get one free offer
  • attractive gifts
  • discount coupons
  • free delivery services,
  • Combo offers
  • weekend offers, etc.

This attracts them to come with use of factors which are essential to be taken part in various promotional events. There are various consumers which visit McDonald's stores, so it is essential to analysis customer and then make policies. It is essential to know what has to be done through which changes are taking place very frequently and offers changes appropriately. At the time of weekends, festive season, etc, more and more people visit outlets so they tries to provide utmost benefits to consumers.

While for attracting business manager has to make policies through which commission of middle men increases. Stock must be readily available through which there will no waiting time. Policies must be taken to increase sales by advertising product more and more there is requirement of reducing cost and providing facilities available in efficient way (Smith, 2012). There are factors which has to be considered such as while opening new outlet. There must be use of techniques through which more and more people can be attracted towards opening outlet. As McDonald's operates in various parts of country, so in this case they have to give their franchise to people residing in particular area.

There is use of discounts commissions through which McDonald's can promote their new product which are promoted by sale personnel there must be some monetary as well as non- monetary benefits which are helpful for enhancing knowledge of society. To promote product, it is essential that manager must deliver complete information to them , so it can be delivered in effective and efficient way. While making use of techniques which are competent to perform business objectives in appropriate way through which ultimate customer gets satisfied. While launching new product, then manager of McDonald' must keep its price low and commission for middle men must be higher so they are ready to convinces consumer for purchase of new products (Smith, 2014). Outlets must be designed in way through which children are ready to visit McDonald's outlet.

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4.3 Differentiation between international marketing and domestic marketing

Both domestic and international marketing are considered as an effective and essential tool for the business entity to maximise their business operations and activities internationally and globally. Thus, it is important and beneficial for the organisation to achieve long term goals and targets within predetermined period of time.


International Marketing

Domestic Marketing


It alludes to marketing activities that are beyond geographical boundaries of a nation (Smith, 2014).

It is the process of marketing comprising manufacturing, promotion, selling and distribution of goods and services within nation's boundaries.

Government Intervention

As the firm has to deals with rules, regulations and laws of various nations it has more involvement of government

It has low government interference due to uniformity of legislations and rules and regulations to be almost same between various states within nation.

Resources Required

International marketing deals with variety of consumers having varied tastes and demands (Alserhan, 2016). Thus it requires more more financial, human and other resources to provide requisite quality and quantity of goods/services to its international customers.

Domestic marketing involves fulfilling demands of one set of customers thereby it requires lesser financial, hr and other resources .

Market Aspect

Diverse markets that are fragmented

Market conation homogeneous and various segments.

Market Research

International marketing requires in-depth study related to foreign market,buying behaviour, needs and demands of various customers, competitors present etc. It is quiet costly.

In domestic marketing, it is relatively easy and less expensive to conduct a market research as a firm requires to do a small survey which is sufficient to revel market conditions.


International marketing is subject to a number of barriers related to language, cultural, social and many more which make it very difficult to formulate separate marketing strategies for different nations keeping in mind all these factors.

Domestic marketing have to deal with limited no of barriers (Bernstein, 2015).

Product Mix

In international marketing strategies related to product mix are definite in accordance to foreign market .

In domestic marketing however a company decides its product mix with a view to attain customer's satisfaction and high sales volume.

Use of Technology

International marketing gives a firm advantage to have an access and utilizing latest technology of various nations.

In domestic marketing there is limited use of technology by a firm

Capital Requirements

It involves huge capital investments (Bernstein, 2015).

Domestic marketing requires less capital in comparison to international marketing


As it deals at global level having varied customers, competition and a no of products, a firm needs to keep developing new strategies related time to time depending upon nation to nation.

Company can implement same strategies with minute modifications.

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From the above mentioned report it has been concluded that marketing is more important and essential element which is follow by all organisation to maximise their sales and turnover. It will also support to gain competitive advantage within predetermined period of time. There are different tools and technique's are used by the food company with motive to attract maximum base of clients. They use elements of marketing process which is important for them to recognise various strategies to expand their business operations intentionally. Market orientation is benefited to the firm to achieve their long term objectives easily. 7P's of marketing mix is one of the best and useful aspects for the company because with the use of these they can easily introduce their new products in marketplace. Company offer Mac Puff and Crunchy cold shake, in this they need to increase awareness among customers so that they try to use different kind of promotional technique's which assist them to attract various customers as well as maximise their sales also.


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