Introduction:

This report is based on various principles of marketing and its practices. The marketing organizations McDonald's have found by McDonald brothers, their con concept of fast food was perfectly fit for America with time squeezing, and family-oriented life cycle. Kroc has bought a small chain for $2.7 million, its motto was QSCV it consists of quality, cleanliness, services, and the values. These goals were mainly used by McDonald for focusing on customer needs. By applying all these values to McDonald's that was founded perfect for the concept of fast food. They deliver the food for customer’s convenience, the quality of their foods very good at an easily affordable price. Hence the McDonald company was grown faster for becoming the largest fast feeder in the entire world. The McDonald fast-food company have more than 32000 restaurants in the entire world, & now they are serving more than 60 million customers pre-day, and their sale per year approximately $ 79 billion. This report will consist of three different portions. The first portion of this report will describe the key concepts of marketing to increase the business organizations' productivity with increment in their profitability. This portion will also include the terminology that can apply to the McDonald organization like its product strategies, promotional strategies, and its branding. The second portion of this report will discuss different marketing strategies, & other strategic programs that will help the McDonald organizations to achieve its major goals and objectives, it will also provide the Information about the objectives are achieved ethically. The third and last portion of this report will concepts of marketing & principle that McDonald organizations are used for their daily organizational operations.

 

 

 

 

 

 

Explain key marketing concepts and terminology applicable to McDonald’s:

The McDonald's is one of the larger fast-food organization, it was founded by the McDonald brothers. The very first restaurant of McDonald organizations was in the San Bernardino, in 1948. and that time also McDonald's was the largest fast feeder organization and provided its services and food with more than 30000 restaurants and that time its sales per year were approximately $40 billion. The McDonald organization was grown up faster and in 1970 it was again started for searching and finding new ways to attract more customers by applying various strategies of marketing. The McDonald organization became the 1^st happy meal provider in the world. They provided suitable meals for children with various free toys.

Marketing concepts:

The concepts of marketing are like a strategy of the organizations that they implement it to increase their sales, provide the services to their customers with more satisfaction, make a great profit, make improvement in their productivity, take the better decision for their business organizations, promoting their business in the particular market place, take the various advantages over their competitors. There are five main concepts are available for marketing that is adopted by various business organizations related to the sales, products, foods, services, and others, the McDonald organization is also used these five different concepts of marketing.

1. Concept of products.
2. Concept of production.
3. Concept of selling.
4. Concept of marketing.
5. Concept of societal marketing.

The McDonald organization is to apply these five different concepts of marketing to run their business more effectively & efficiently around the entire world with its all branches in different countries and cities.

1. Concept of products:

The 1^st marketing concept that is used by McDonald's organization is the concept of products. The McDonald organization has several products in the form of a different food category. The basic concept is that “the customer or consumer will always in favor of cheaper or affordable products with good quality” means customers will always buy the product that will come with good quality, and lower prices, and better performance. With this concept of a product, the marketing strategies are mainly focused on continuously improving the products as per customer demands. The quality of the product and its performance are the 2 most important parts of the strategy of marketing.

In the case of McDonald's organization, there are products is food provided by McDonald’s with this concept of marketing McDonald’s design its food according to the marketing and customers' demands. In this the McDonald organization is focused on the packaging of their products or foods, quality of its foods, looks of its foods, and the desirability of food, these whole things include the tangible and non-tangible products and services. The McDonald provides both types of food vegetarian & non-vegetarian that make their customers more attracted to their customers.  McDonald provides a large verity of food with effective marketing strategies and concepts.

2. Concept of production:

The 2^nd concept of the marketing that is used by the McDonald organization is concepts of production. The McDonald organization is manufacturing their foods with bets chefs, and at the place with proper cleaning to make the food fresh and good quality. The main focus of this concept on “consumer or customer is always in favor of the cheaper and easily available product”. This concept of marketing is the very oldest management orientation of marketing, and it guides the sellers. The McDonald organization is used this for making their food with good raw material and raw food, they produce food at low and easily affordable rate for the food, this low price strategy of the McDonald organization is helping them to attract more customer and gain their trust on food and the delivery services. The place of food or product making and selling for the McDonald organization is many locations that are the same for providing fresh food and effective services.

3. Concept of selling:

The 3^rd concept of marketing that is used by McDonald's organization is the concept of selling. The selling of McDonald’s per year now is approximate $79 billion, and this profitability is the result of their marketing strategies and concepts. The main focus of this concept is on “consumer or customer will not purchase the product of organizations until it will come at a larger scale for promotion and selling efforts”. The McDonald’s is now at the larger positions among the related fast food provider organizations. The selling concept of McDonald's is very effective in selling their food at an effective price and of good quality. McDonald is positively used this concept and they manufacture the food daily.

4. Concept of marketing:

The 4^th concept of marketing that is used by McDonald organizations is the concept of marketing. This concept is mainly focused on “achieving the goals and objectives of organizations are depends on getting knowledge of wants and needs of the target market place & providing much better satisfaction as compare to its competitors”. McDonald's is working with the marketing concept to target the food market, and ethically provide the services and products.

5. Concept of societal marketing:

This concept is mainly focused on “strategy of marketing have to provide values to its customers in that way in which society and customers are maintained easily and efficiently”. by this concept, McDonald is provided its food services with sustainable, environmentally, and social responsibilities to meet the consumer's needs. This concept of societal is shown the welfare of humans with the highest priority before the satisfaction and profits.

All these terminologies of marketing concepts apply to the McDonald organizations to achieving its objectives as well as providing bet food products to their customers.

 

 

 

Marketing strategies and programs that helped McDonald’s achieve their objectives:

The strategy of marketing is the set of various actions that guide & set outlines for decisions to choose the best way for creating, promoting, distributing, the products and services of the organizations at lower or affordable prices for their customers.

In the McDonald organizations, there are following marketing strategies are used:

1. Paid advertising strategy:

In the strategy of marketing, McDonald's is using advertising their products & services, it uses traditional approaches for advertisement, like print media, and TV, nowadays it also uses social media for advertisement.

2. Relationship strategy:

In this marketing strategy the main focus on attracting or building more customers. With this marketing strategy, McDonald's has enhanced its consumers and make improvements in the loyalty of the customer.

3. Undercover marketing:

With this marketing strategy, McDonald's focuses on product marketing when most of the customers are not aware of their products & services but nowadays everyone is aware of their services and food products.

4. Internet marketing:

With this strategy, McDonald promotes their food products on the internet and provide various offers like buy one getting one free, 50 % off, etc. This strategy is very helpful for McDonald's to achieve its goals ethically.

5. Transactional strategy:

Selling the product is a very challenging work. With this strategy, McDonald is encouraging more customers to purchase their food with effective discounts, coupons, and more many offers, this strategy helps McDonald to increase its sales & motivate its customers for purchasing their food products with effective offers in an ethical way.

6. Marketing mix:

This strategy of marketing is consisting of 5 different P’s that help the McDonald to achieve its goals ethically.

1. Product.
2. Place.
3. Price.
4. Promotion.
5. People.

All these marketing strategies are used by McDonald's branches in its entire organization to achieve the business objective as well as providing the best fast food services & products to their customers along with satisfaction.

Marketing concepts and principles used in McDonald’s daily organizational operations: 7Ps, STP:

The McDonald organization is used these 2 marketing principles and concepts in their daily organizational operations:

7 P’s of McDonald’s marketing:

This marketing principle of 7 P’s is consists of 7 different types of P factors that stand for different concepts. These are as follows.

1. Product:

This strategy includes how McDonald is manufacture, design, the products so it can make increments and enhancement in the experience of the customer. For McDonald's, the product is a physical service or the product that they offer to customers. McDonald's focuses on the product limit in terms of its width and depths, they first observe the behavior of their customer and then they produced their menu according to the marketing demands as well as the needs of their customer. The product strategy of McDonald's is effective and “it helping the McDonald organization to achieve their goals and objectives effectively and in an ethical manner”. 

2. Place:

The place is like a channel for distributing the products or the food products of McDonald's organization. This factor is very important and essential for business organizations because the place makes the products, & services accessible for all the customers and consumers. For the McDonald organization, the place is important to provide their services & food products to its customers the place of food making and manufacturing is mainly used for distributing the services & food products to provide fresh food. In the US approximately 50 percent of McDonald's food distributors are on a distance with each other.

3. Price:

The strategy of pricing is also important for the marketing of McDonald's. Their restaurant provides specific pricing values to the customers like the provide food products at low prices and healthy food, happy meal, combo meals, family meals menu of happy price, and it improves is sales of their services and food products.

4. Promotion:

The strategy of promotions for McDonald's is also an important aspect of marketing, they use traditional approaches of advertisement their food products like print media & TV. Nowadays they also using social media and the internet for promoting their food products with attractive offers.

5. people:

The McDonald organization understands the significance of their employees as well as their customers, they believe that if their employees will work happily then they can get more customers happily for their organizations.

6. Physical evidence:

It directly related to the storing appearances, & ambiance etc. In the McDonald organization, the ambiance is mainly focused on making their customers comfortable, lively, and fun-loving.

7.  Process:

The process strategy of McDonald's is a normal strategy that is used to deliver services and food products to its customers. The McDonald is focused on the presentation of food, serving process

STP:

The STP is a modern approach of marketing, in this approach

19. Segmentation.
20. Targeting.

16. Positioning.

 

 

1. Segmentation:

It is a process of dividing the total market into various groups in which customer’s needs and requirements are similar. It facilitates the McDonald to get more information about their customers and take competitive advantages by providing more effective services. For McDonald the segmentation is done is 2 different types.

• Geographically: This is based on different segmentation of different locations. The McDonald organization is divided its entire market into various geographical segments.

50. America.
50. Asia.
50. Europe.
50. Other countries.

• Demographic: it is mainly based on the segmentation according to the age of McDonald’s customers.

50. Children.
50. Adults, 18 to 30 years old.
50. Adults.

2. Targeting:

After the process of segmentation, the McDonald’s is focusing on its targets. McDonald’s selects the market for marketing their food products, and they select the different segments for targeting the customers and market.

3. Positioning:

The process of positioning is the last step of the STP strategy. After selecting the final segment the McDonald’s develop the planning for objectives and market, and sets the position for the different segments and targets.

 

 

 

Conclusion:

This report was based on the various principles of marketing and its practices. In this report, the marketing strategy and marketing are discussed for McDonald's. In the first portion of this report, various key concepts of marketing for increasing the productivity and running the McDonald organization and all these marketing concepts apply to McDonald for effective marketing. In the second portion of this report, different types of marketing strategies have discussed that help the McDonald organization ethically achieve its goals and objective. In the third and last portion of this report, 2 important marketing principles and the strategies are described for McDonald’s that are used for their daily organizational operations. One of the recommendations for McDonald’s is to minimize the use of selling concepts of marketing and make the pricing strategy more effective for all the people who love fast food.

 

 

 

 

 

 

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