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MARKETING PRINCIPLES
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Marketing principles at McDonalds

Introduction
While considering the marketing decisions made at McDonalds, it is essential to consider
the marketing principles- such that the assessment of the actual effect of the decisions can be
weighed. In this regard, this discussion will aim at assessing the principles as they apply towards
the current marketing plan, and suggest additional ways to optimize the entire process.
Marketing the entire brand and individual products in McDonalds case requires the
consideration of its immediate operating and sales environment. This constitutes of the suppliers,
consumers and the competition. It is imperative to position the products at an optimal position in
relation to the three aspects that govern the principle approaches. In creating a suitable marketing
mix, it is thus essential for these (inclusive of the marketing elements) to be given priority during
planning.
1.1.

TASK 1: CONCEPT AND PROCESS OF MARKETING

Elements of the Marketing Process
There are several significant aspects to consider in the McDonalds case study, including

their marketing mix based on product price promotion and the placement of the business. These
aspects of the mix are set to determine the reception of their products by the target market,
reaction to price settings and adjustments and the effectiveness of each approach to marketing
and marketing platforms. The first significant part of the process involved a concise market
research, carried out in consideration of the current situation presented by the market. Among the
information required by this step were consumption trends, competition, factors surrounding
buying habits and the overall position of the brand and its products in the market.
The research process presents the analysis with information from a viewpoint from which
a hypothesis can be generated. By considering the aspects realized about the entire company and
individual brands, it became possible to carry out a concise SWOT analysis. In this section of
marketing analysis and in order to develop conclusive results for marketing approaches, it

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became necessary to create objectives to handle each of the descriptive aspects of the SWOT
analysis. This was done such that each aim contained an achievement to limit the weaknesses
and threats, optimize the strengths, and maximize usage of opportunities. In the analysis, the
following aspects were considered closely:
Product
McDonalds primarily offers various fast foods, providing a broad range of choice by
offering choice under one establishment. McDonalds increases the chances of a client remaining
satisfied with their products. The availability of a choice restricted by both the clients needs and
the financial constraints of the cost of production are to be considered carefully while creating a
menu for the customers (Amrollahi and Akhgar, 2013). It has to be considerate of preferences of
clients (which are dynamic) and fashionable in the same sense. Some of the most representative
selections made included facilitating the growth of the Big Mac placing it at a more suitable
development stage.
Price
The significance of this element has to be considered with respect to the ability of the
consumer to purchase and their perception of quality with respect to the price set. It would,
therefore, be necessary to do a psychological consideration of the pricing of each product. The
aim is to prevent the collapse of the integrity of the product by under-pricing it, and avoiding a
price too expensive for the consumers. Similarly, it is necessary to consider the pricing of the
competitors products (Jobber and Ellis-Chadwick, 2012). The most appropriate cost for a
McDonalds product would have to be based on a minimal matching price that is only lower than
the competition, maintaining integrity but still creating a demand for the same product.
Promotions
This part of the marketing mix contains the creation of publicity, acceptance, and
preference for the overall brand and specific products. The advertising procedure picked by the
McDonalds company uses an above the line approach that involved advertising in mainstream

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media, where payments are made before the advertiser includes the brand in the marketing space.
They also integrate other methods such as point of sale display, merchandising, direct mail, and
telemarketing. All these are meant to increase the presence of the products within the market and
the awareness of the clients about the said product.
Place
The placement of a business establishment, in this case a fast food service, is valuable to
the marketing orientation intended for each of the chain outlets. The considerations to be made
include the cost, nearness to clients and convenience. By placing these variables towards the
most favorable position, it becomes possible to create a neutrally beneficial zone for locating a
McDonalds outlet. All considerations must be made to ensure the most efficient approach to
availing the product of consumption to the end user is achieved.
1.2.
Benefits and Costs of Marketing Orientation to McDonalds
Based on the initial discussion of the considerations to be made towards creating an ideal
marketing mix for this establishment, various aspects of each approach were discovered. By
orienting the company towards the realizations of the dynamics of the current market, it is
possible to optimize the products and the approach to marketing. It is, therefore, necessary to
consider each of these aspects for planning and analysis purposes. The McDonalds case presents
various characteristics of its current market presence in comparison to their need for marketing
towards their target. Among the benefits realized from marketing orientation include:
Constant Improvement
This can be achieved by setting the brand to be suited to the market by basing production
and promotion elements in the direction of the current market. It is possible to obtain an
increasing market presence simply by using the aspects learnt about the market to optimize the
products suitability to its intended consumers.
Responsiveness
From the overall orientation process, it becomes easier to modify the responsiveness of
the brand toward the market. In cases of changes in the competition, consumers or regulatory

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policies, it becomes possible for McDonalds to change the product aspects in response to market
changes (Bowman, 2010).
Creating a Checkpoint for Company Performance Analytics
In response to the creation of an achievable goal within the current market as realized in
the orientation process, the marketing team can have a known performance datum for reference.
Such a benchmark is necessary for carrying out performance monitoring and assessments.
The costs of the orientation include:
Investment of Resources
The entire process of creating an understanding of the market requires a considerable
resource output. This may limit the process as both resources and time needed for the process
may not be feasible as per the intentions of the entire project.
Modifications of Work and Products
The process may necessitate the changeover of the whole establishment to accommodate
the needs of the market orientation. Establishing the alignment of clients needs may be
informative, but the necessary adjustments may be excessively tasking and inapplicable (Ghauri
and Cateora, 2010). Overall, the McDonalds case presents various aspects of considerable
interest on the marketing choices made by their marketing team. The elements of marketing
employed can be assessed by considering the variables used by the establishment towards
creating and maintain a clientele base. It will also be necessary to examine the significance of
each benefit with respect to its cost on the company
TASK 2: CONCEPTS OF SEGMENTATION, TARGETING AND POSITIONING
2.1 Micro And Macro Environmental Factors Influencing Marketing Decisions In
McDonalds
Marketing decisions at McDonalds are governed by several factors within their micro and
macro environments. Strategies involved in production, choosing brands and marketing them
rely on the current market orientation. The markets receptiveness to products is influenced by the
macro factors of economic environment, socio cultural aspects, demography and technology.
McDonalds approach to marketing products using the four elements must consider the

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actionable extent of the market, and in this regard, there is need to consider external
environments.
The ability of consumers to purchase is reliant on local government policies on
production (taxes etc.), the economic situation and the relative monetary circulation depending
on the target market (Jobber and Ellis-Chadwick 2012). Additionally, the microenvironment will
affect costs of production, ability of the company to reach out to the consumers (depending on
labour) and resource management. In similar terms, the position of competing fast food chains
has a significant effect on the pricing that the establishment must adhere to to please its clientele.
Clients preference is arguably one of the most significant considerations towards strategizing in
marketing. The entire marketing aims at creating a satisfying experience for the consumer, such
that sales increase and demand does not fluctuate.
2.2 Recommended Segmentation Criteria for McDonalds Products in Different Markets
Behavioural segmentation is applicable in the case of the McDonalds Products,
especially since variations in consumption and sales is linked to price sensitivity, benefits from
consumption and product loyalty. By taking advantage of the dynamics involved in the
mentioned aspects of behavioural variations, segmentation can be used to optimize marketing. It
would be necessary to intensify product promotion to clients who are behaviourally inclined to
purchasing said products. Those aimed at the young savvy individual on the move would be
more inclined at products promoted on the internet as opposed to the more reserved one who
would prefer adverts in a local newspaper.
On the other hand, demographic segmentation would also be applicable, whereby the
market is divided based on dynamics as identified necessary. These may include age, gender
occupation and financial ability variably to achieve a mix of such traits classified depending on
the orientation of each market. The segments will then be targeted discretely, such that the most
attractive clientele is offered their preferred type of product. The approach to each segment

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should aim at maximization of sales to their specific type of client, such that the demography is
saturated with the product deemed most suitable for it (Jobber and Ellis-Chadwick 2012). This
approach eases marketing and optimizes resource investment in the market and in this way
increasing utility of each marketing event.
2.3 Targeting Strategy For A McDonalds Product
The Big Mac, which is essentially a hamburger with numerous dressings, is to be selected
for targeting the demographic classification of the typical young male in the working class.
These individuals are prone to accepting intake of larger amounts of food than the females of the
same demographic, and are able to afford the product on a daily basis. An aggressive market
campaign launched by an iconic individual (preferably a celebrity) would single out the target
clientele and make them accept the product as a suiting snack or substitute for a quick meal
while on the move.
The strategy in this scenario would therefore be to associate the product with the intended
consumers, such that the saturation of the product within their demographic intensifies as
compared to those of the competing companies. Additionally, it may be suitable to create a
platform for the products branding- to ensure its acceptance in the wider market on a more
permanent basis. In as much as the initial campaign aimed at creating an initial consumption
explosion, there would be need to establish control mechanisms to ensure longevity of the
product in the market. This approach should employ less adhesive marketing options, which may
include CSR, long-term endorsements and a continuing advertisement program.
2.4 The Effect of Behaviour on Marketing Activities in Different Buying Situations
Buying situations can be considered in reference to buyer behaviour, in which case it is
realized that they should influence marketing choices. Marketing executives in McDonalds will
need to consider the changes in consumer behaviour based on their descriptive characteristics
(demographics) and their environment. It therefore becomes necessary to consider such aspects
to ensure the effectiveness of the marketing strategy to be implemented. Demand fluctuations are
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primarily influenced by clients decision making-, which is affected by both internal and factors.
To understand and take advantage of these behavioural changes, it is imperative to assess the
perspective of the client towards finances, preferences, routine and change (Bowman 2010). It
would therefore be necessary to conduct a suitable market sensing process to establish the extent
of consumer behaviour in reaction to changes in their environment and the products on offer.
This will place seller at a better position concerning expected changes in client behaviour.
2.5 Proposing A New Positioning For A Selected Product Of McDonalds
Still on the Big Mac, its positioning should be changed up to make it more suitable for the
current market. The communication of this products attributes towards the select clientele should
involve a more appropriate advertising. The intended clientele would typically be less interested
in the visual attractiveness of a food, but rather more inclined towards calorie output, health
benefits and fashion-impression that come with the Big Mac. It would be better to market the
product in accordance with the mentioned perspective of the current consumers. In this regard,
consumer needs the competition and the existing communication platforms need to be employed
in the new product positioning.
The key message would therefore include a differentiated, presentation, including
considerations of the lifecycle of the Big Mac. Optionally, a celebrity would be used to endorse
the product- one who fits the profile admired by the clientele profile. Additionally, this individual
would be involved in creating attention towards the perspectives included in the product- its
price, appropriateness to the consumer for satisfaction, benefits as compared to the competition
and overall suitability to the current market (Jobber and Ellis-Chadwick 2012). In the overall
sense, the options presented by the new positioning of the product should incline the market to
favour the product. All these aspects should still adhere to the initial elements to achieve an
optimal marketing mix.
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TASK 3: TRADITIONAL AND EXTENDED ELEMENTS OF THE MARKETING MIX

3.1 How McDonald's products are developed in order to ensure competitive advantage
The development of McDonalds products is based on various principle quality standards that
aim at both client satisfaction and meeting quality standards. To ensure a competitive advantage
the process has to be timely and involve foods that are affordable to the end consumer- such that
the aspect of price as a marketing element is considered. The presentation of products follows a
protocol involving quality, consistency and innovative improvements. By following these
principles in production, it becomes possible for the clients to consistently enjoy their favourite
foods across all franchises, taste new products that are in the menu (consistent with the market
demand) and expect quality. Introduction of new products is only about the considerations made
by market orientation and pilot programs to test products. New items in the menus for all
franchise are only registered after consistent responses from consumers across various test
regions. The breakfast menu, for example, saw increased attention from consumers worldwide
after it was consistently tested positively in San Francisco and Nevada.
3.2 Distribution strategies used by McDonalds.
McDonalds, as a fast food chain requires the delivery of its raw foods to its chain outlets for
standard production and sales. In this regard, it is necessary to take in a suitable distribution
strategy aims at creating even resource placement across all its segments aim in this way ease the
uniformity of products. The establishment uses a 3- legged approach to the fusion of services
from its various suppliers, towards its production and the management of employees. By aiming
to optimize the three aspects, the top management attempts to create an approach that is
consistent- and in this way satisfying the clients. This is applied across its numerous franchise,
such that the products offered across all of these outlets are similarly presented in terms of
quality. The united presentation of products allows for even implementation of ideas that are
aimed at meeting customers requirements.
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Additionally, the business model that McDonalds uses works in relation to its competition,
such that the dynamic nature of the business in relation to the market increases clients
preference towards its preference. This aspect covers the considerations that led to McDonalds
introducing fruit salads and breakfasts to its menus. These aspects were demanded by the current
market, and the company had to modify its menus to keep the consumer satisfied (Warner 2014).
By making the necessary modifications, the company reduces the possibilities of competing
company taking over through an innovative move.
3.3 Pricing strategies used by McDonald's
In as much as the products sold by this establishment have to adhere to standard pricing
across all its outlets, there is the need by the central management organ to prescribe prices for
each of the regions with regard to their environments and the intended effect of each price to be
set. Penetration strategy applies for products, which are either being introduced into the market,
or are facing competition from other similar products in companies (Thomadsen 2007). This
generally involves the presentation of the products in a lower price that the competition (or than
should be for new items) - such that clients are eager to try them out. Examples for this approach
were observed during the introduction of healthier options for lunch including salads and fruit
options in lunch menus.
Similarly, competition based pricing applies for products facing competition from other
companies. In as much as the prices may not be set at the industry minimum, the lowering of the
price below the current attracts consumers even without need to drop past the current industry
standard (Thomadsen 2007). All through, the main consideration surrounds the creation of a
price applicable to each environment and acceptable to the intended consumers.
3.4 Promotional activities of McDonald's
Marketing in McDonalds directly involves heavy input of product promotion-, which
includes a set of activities aimed at increasing the market presence of each product. The intention
of the activities includes increasing attention of the consumers towards a product, and in this
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way, by integrating these activities into the initial marketing plan- the events contribute
significantly to achieving the intended market objectives. Among these, include the monopoly
promotion, which was initially developed its marketing store. It involves massive product
presentation into a select market. The event runs in regions where the company deems them
necessary to reintroduce the brand massively. It involves TV promotions, the consumers winning
prizes, social media marketing and press presence. The advertisements are presented trough a
compounded campaign (Warner 2014). All efforts made involve the mentioning of the products
to the consumers, invitation to visiting the franchises, trying new products and price offers for
limited time on current products.
3.5 Finally at the end of this task you are to provide an analysis of the additional elements
of the extended marketing mix for McDonald's
The extended marketing mix for McDonalds should include secondary elements that
surround the product, its environment and the consumers under consideration. In this regard,
these elements may constitute of the entire market and its characteristics- such that the marketing
team has to pick the most applicable aspects of to add to its mix. While considering their case
study, several aspects of the company emerge as the most significant, including- (people) public
relations, physical evidence of quality, and production processes (Bowman 2010). These aspects
are taken importantly in considering the marketing approaches in promotion of the products on
offer.
In the first element, the establishment takes public relations importantly, handling any
threats to its credibility as a franchise efficiency and presenting the consumers with evidence of
the same to restore faith in the brand. For example, any cases of unhygienic franchises are taken
seriously with consumer complaints being considered. The evidence of such efforts towards
quality are then heavily publicised as part of marketing the entire brand. Additionally, the
production processes for the company are presented for public consumption. This approach to
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transparency places confidence in the production process and in this regard presents the
consumers with a platform to analyse the process to their satisfaction. This acts as a secondary
approach to marketing the products.
TASK 4: USING THE MARKETING MIX IN DIFFERENT CONTEXTS
4.1 Marketing mixes for segments in the consumer markets in McDonald's
The primary approaches for taking the segments discussed previously involves
presentation of the demographic being targeted with a suitable market mix. In this case, the
demographic of the young consumers and that containing the middle class financial grouping
will be presented with marketing elements placed in suitable fashion to increase the preference of
the said consumers towards McDonalds products. The price is given priority when promoting
the product towards the middle class consumer, whereby the individuals in this grouping are
assumed limited in price choices. By marketing the products by presenting the lowered prices as
a selling point, the consumer will be more inclined to accepting the product (Bowman 2010).
Similarly, for the young demographic, the main aspect of the marketing mix will be
product. The needs of these consumers are primarily quality and presentation of the foods at
McDonalds. In this regard, it becomes necessary to create a marketing aimed at presenting the
said products as the best in the market and therefore appealing to the target market. Since the
interest of these consumers is primarily assumed the product and its presentation, these should be
the primary approaches to marketing.
4.2 Differences in marketing products and services to business rather than consumers
In as much as the McDonalds company presents concepts on marketing towards consumers,
it is possible to borrow similar concepts towards marketing products towards businesses as
opposed to consumers. However, some aspects in marketing are bound to change, as the
considerations in the marketing mix will change to suit the specific business. The change in
target market reduces the elements of the extended marketing mix (people, process and
production) and extends the significance of the primary elements of price and place (Bowman,

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2010). Businesses consider aspect of affordability and availability of the necessary product or
serves as opposed to its presentation or promotion.
In as much as the buyers of the products are still affected by the quality and promotion of
a product, the overall consumption is within the business. In this regard, the differences are
involved in the creation of a suitable promotion process. To penetrate the market of business
consumers, it becomes necessary to modify the product to fit the price and place requirements.
Additionally, the promotion process has to be personalized to each business. This may
necessitate the usage of sales representatives to attempt to forward the products to the businesses.
This approach is only applicable where the process is cost effective.
4.3 How and why international marketing differs from domestic marketing in McDonalds
Domestic marketing in McDonalds involves the creation of a suitable market presence
and maintaining it. The local McDonalds franchises rely heavily on brand promotion with
minimal input from the individual businesses. On the other hand, it may become necessary for
the processes in domestic franchises to increase aggressiveness in marketing. In as much as the
current market presence may seem consistent, new market entrants act as threats to the status of
the company as a fast food chain. Similarly, there is need to have consistency checks for its
franchises that are more reliable than current quality assessment approaches this is especially to
avoid scandals that may reduce the effectiveness of marketing by repelling potential and current
consumers. Overall, the domestic strategy should be conscious of any new events by internal
parties (franchises) or the consumers.
On the other hand, the international fronts for the company are currently aiming at further
market penetration, whereby they increase market presence, brand acceptance and larger sales
per region. It becomes possible for a brand to manifest its presence after reaching a specific
concentration within a market. By considering that this establishment has not yet attained these

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saturation levels internationally, it has to adopt different marketing strategies. In countries such
as China, India and the UK, this establishment aims at constantly increasing its sales without
compromising quality or losing cost effectiveness (Warner 2014). It is therefore necessary for the
marketing team to create a balance between the creation of the promotional activities and the
potential in the foreign lands.
Conclusion
The McDonalds Company applies marketing strategies custom to each situation, whereby
the marketing mix varies with market orientation, segments and the intention. Whereas there are
various approaches towards the creation of a consistent presence in the market, it is evident that
this establishment has achieved optimal status in regions within the United States and is
approaching similar status in other regions. The aim seems to become a permanent brand within
the fast food market, and with concise and aggressive approach to the consumers, the company
may just achieve its optimal market saturation across its regions of supply. It may be necessary to
implement the approaches depending on the returns and the potential of a market, but with
adequate resources, it is possible to dominate the entire market. Overall, the current marketing
strategy for the company is at optimal positioning to occupy consistently the market.

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References
Amrollahi, A. and Akhgar, B. (2013). Analyzing Open Source Business with Porters Five
Forces. IJCTE, pp.162-165.
Bowman, D. (2010). Market Mix and Marketing Response Models: Trends and Research
Opportunities. Foundations and Trends in Marketing, 4(3), pp.129-207.
Ghauri, P. and Cateora, P. (2010). International Marketing. 3rd ed. New York: McGraw-Hill
Higher Education.
Jobber, D. and Ellis-Chadwick, F. (2012). Principles and Practice of Marketing. 7th ed. London:
McGraw-Hill.
Thomadsen, R. (2007). Product positioning and competition: The role of location in the fast food
industry Marketing Science, 26(6), 792-804
Warner, M. (2014) Salads or no, cheap burgers revive McDonald's. New York Times, 19, 1

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