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The following questions must be all answered:
1.Compare and contrast two definitions of the marketing concept. Use two relevant examples to illustrate your comments.
2.Discuss how McDonald’s apply the STP approach to segmenting their products and services. This section must be backed up with relevant theories.
3.Critically analyse how McDonald’s have branded their product and service offering and how they communicate this to their customers.
4.Based on your research draw three conclusions and three recommendations.

The Holistic marketing concept in McDonald's

This report provides with analysis of the marketing for McDonald's Corporation which is a kind of largest brand for the fast food. This essay focuses on the different kinds of marketing concepts used along with the STP methodology utilised by McDonald's. McDonald's has branded its products and services on the basis of different strategies and the same has been communicated to clients in an efficient manner. 

Holistic marketing concept is an element of the sequence on perceptions of marketing and it can be termed as a marketing policy which takes the organization as a whole and not as a body with a variety of diverse fractions (Brotherton, 2012). The integration of different departments and one strategy for all the units of McDonalds follows the Holistic marketing concept. As per this concept, even though McDonalds is formed of a variety of divisions, the divisions have to merge to scheme a constructive & amalgamated business representation in the minds of the client. The notion of Holistic marketing has got consistent marketing acts to make sure that the client is on the verge of buying their produce rather than buying from the competitors (Marketwatch, 2005).

McDonald’s has got various sections such as the accounting and finance, sales and marketing, R&D and product improvement and ultimately HR and operational units (Reynolds, 2013). therefore so as to apply a holistic marketing concept in the business, it makes sure that R&D and product improvement get the opinion of the marketing and sales teams to commence the product which is almost certain to create a centre of attention for the clients (Chons, Pizam and Mansfeld,2002). Alternatively they also have to carry out the job closely along with the accounting and finance to know about the accurate budget for the venture. Sales and marketing has to be in touch with the HR to know about the right type of individuals that they require, and ultimately, managers and operations have to formulate a plan to keep hold of these individuals.

By doing all this thing, McDonalds ensures that the right kind of client is attained (Thomadsen, 2007). This is the whole spirit of holistic marketing concept. By carrying out of the correct things jointly as a firm, the product and brand has a fairly better likelihood in being triumphant than the other constituents which work separately devoid of some holistic idea.

In the current World, client mentality is raising. Riches are getting to be plainly lesser and duty is soaring. Hence consumer purchasing is being made after bunches of allowing for (Moschandreas, 2012). Clientele seek for goods’ reviews offline and also on the web for the correct item and have grand information of the good prior to they acquire. It is expected that the consumer has efficiently settled on a buying preference even prior to he gets into the sales area (Verma, 2012). Thus, holistic marketing concept is requisite at this hour to assure that the purchaser picks the item in excess of every other item.

The Societal marketing concept in McDonald's

A major driver of Holistic marketing will be marketing interchanges. The task of marketing correspondences is to send the correct message to the targeted segment (Gerhardt, Dudley and Hazen, 2012). By moving toward different client contact focuses, a standardized message can be sent to the client. This steadiness is probably going to bring trust in the client for McDonalds’s, in this manner developing the brand image (Mishra, 2014).

McDonalds’s is a case of Holistic marketing in which the items are produced considering the client, The outlets are marked in the best possible way, the client administration is affable and the service delivery is quick. In this manner McDonalds is a superb case of Holistic marketing (Wierenga, 2002).

The societal marketing concept is another concept to be discussed. It was a subdivision of the marketing concept wherein a firm puts supply in offering back to the citizens by creation of better objects targeted for society wellbeing. This marketing concept evades the possible collisions amid buyer requirements, customer interests, and long-term communal wellbeing (Hendrikse, 2008). Though, a few businesses and enterprises are condemned for gratifying buyer needs to society's harm. Such conditions entail an additional term that amplifies the marketing concept. It is advised to be termed as the societal marketing concept, which shows that the firm’s duty is to identify the necessities, requirements and premiums of target markets and to put across the desirable fulfilments more successfully and productively than rivals in an approach that saves or rises the customer's and the populace's opulence (Swiss McDonalds, 2007).

The societal marketing concept invokes marketers to create social and honourable deliberations into their marketing acts. They should amend and manage the recurrently clashing criteria of company benefits, consumer want fulfilment, and social welfare (Datamonitor, 2010). However McDonalds has accomplished prominent deals and benefits by receiving and applying the societal marketing concept. This business makes use of a type of the societal marketing concept called as the cause related marketing. As per the characterization by Pringle and Thompson this is " an action by which an organization with a brand-image, item, or administration to market creates a rapport or association with a "cause," or various "causes," for shared advantage.

They consider it to be bearing likelihood for firms to promote their corporate notoriety, lift up brand mindfulness, grow client devotion, create deals, and increment the press reporting. They trust that consumers will gradually explore the showings of good corporate residency. Brilliant companies will respond through including "superior request" picture qualities than essentially discerning and enthusiastic advantages. Faultfinders, nonetheless, protest that cause related marketing may make shoppers feel they have contented their humanitarian responsibilities by purchasing objects in preference to giving to causes expressly. In this way societal marketing concept as linked to cause related marketing contrasts for the most part on the base that here, the organization tries to offer back to the populace (Daley, 2013).

Cause-related marketing by McDonald's

Nowadays the societal marketing concept which is the most cutting-edge marketing concept, has generally been utilized as a part of McDonalds and numerous other firms with a specific end goal to find the necessities, desires, and premiums of target markets and conveys the normal fulfilment more successfully than contenders, likewise in a manner that could enhance the general public's prosperity. (Kotler, 2017) McDonald's as a type of the globe driving fast-food business that exercises the social marketing concept in term of being all the more ecological and creates sound nourishment. Eatery organizations are taking the world's vitality client, and very nearly 80 percent the vitality eatery exercises is lost because of wasteful sustenance preparing, holding, and storing. McDonald's attempts to develop a brand as per the eco-friendly organization by making strides, for example, McDonald's has embraced recycled packages for every one of its items; besides, in 2009, July 14, the organization done the initial "green" outlet in the U.S, highlighting electric car rechargers (Higgins, 2002), additionally in 2009 McDonald's reported that it wishes to change over its UK armada of 155 trucks to keep running on bio fuel produced using reused vegetable fat from 900 eateries. They assert, it will spare 1,650 tons of carbon for every year. (Lyttelton. 2009) Moreover, individuals now don't have much stress over hunger, and they concern more about how fit is the sustenance they are eating.

McDonalds is utilized to have goodwill of junk sustenance, the organization has confronted expanding disparagement regarding the sort of nourishment it offers in the U.S., for example, eating regimen of chips and burgers that brought on heftiness in kids (Zelas, 2009). However, the organization tried to exchange the goodwill to fit nourishment by utilizing new oils to broil their items, they say the new oil creates less of the kind of cholesterol that can prompt strokes and heart failures, and it likewise lessens the extents of unsafe trans fat by 50%. moreover, McDonald's eateries is trying to redo its goodwill by propelling another crusade, the battle, called McDonald's Real existence Choices; McDonald's eateries will use the grandstand publications and leaflets including with data of calories, fat or starches on all offerings of McDonald's Real Life Choices. (Mary Shomon. 2004) All these activities attempted by McDonald's have attempted to exchange McDonald's to a sound, fit and organic brand.

McDonald's spotlights its trade techniques on five components – public, produce, Place, Price and Promotion. In view of these, the organization has improved and customized the eatery practice to adjust to the requirements of their clients around the world (Zhang, 2012). This business technique, consolidated with sound money related administration and monetary control, has conveyed solid outcomes for the organization and assisted it to precede with its development plans (McDonald's 2013).

McDonald's uses a way of franchising plan of action in keeping up and growing its operations. This plan of action is recognition for a great part of the McDonald's' prosperity and enables the organization to 'convey reliable, locally-pertinent eatery encounters to clients and be an indispensable piece of the groups it serves' (McDonald's 2013). The franchising plans of action likewise empower the knowing, usage and scaling of inventive thoughts, which help in fulfilling the clients' changing requirements and inclinations (Hugstad, 1997).

McDonald’s segmentation, targeting and positioning is a kind of the indispensable ingredients of its marketing methodology. Segmentation includes separating populace into gatherings as indicated by specific qualities, though targeting means picking particular gatherings distinguished thus of segmentation to offer items. Positioning alludes to the choice of the marketing blend the most reasonable for the target client segment. McDonald's uses versatile kind of item positioning and in like manner, the organization is occupied with periodical re-positioning of items and facilities as per alterations in the segment.  

The below table shows McDonalds STP:

kinds of segmentation

Basis of Segmentation

McDonald’s targeted segment

Geography

district

Local/ regional/worldwide

Density

metropolitan/countryside

Demography

Age

7 – 48

sexual category

Males & Females

Life-cycle phase

Bachelor phase: youthful, single persons not residing at house

recently wedded Couples: youthful, no kids

Full Nest II: smallest child 6-7 or more

Income group

Low and medium

profession

Students, workers, experts

Behaviour

extent of faithfulness

‘Hard core faithful ones’  and ‘switching to others’

Benefits looked for

Cost reimbursement, time effectiveness

individuality

relaxed & careless

User position

possible and usual fast food consumers

Psychograph

Social category

Lower, employed and middle category

way of life

McDonald’s targets submissive, Struggler and ordinary persons consistent with Cross Cultural customer description given by Young & Rubican

Essential components of the target client segment as represented in the table above fill in as the primary controlling rule for McDonald's marketing administration to manage Production, Placement, Pricing, Promotion, Processing, People, Physical confirmation components of the marketing mix.

 Branding builds up of an identity for the business, its good send services. The brand image shows the rain which customers think about the firm. Branding just is useful when the business performance and has been presenting itself in a consistent manner. The mechanic communication ways like advertisements and promotions are utilised to bring the colours, designing and emerging which make brand to be recognised. For McDonald's there is a logo which is known by almost everybody – the golden arches. All over the world in different markets, there are complications faced by McDonald's in terms of the junk food. Moreover the economy, lawful, technical amendments, societal aspects, retailing situations and different other festers have a huge impact on the success of McDonald's in the food market.

 The marketing includes the identification of needs of clients and their walls, along with their fulfilment in a manner that it is superior to the competition. Therefore McDonald's is capable of creating the recording and loyal clients. The initial point used by McDonald's is to identify the potential clients – not everybody be like whatever McDonald's offers. These identified clients are the possible people who would be termed as the key audiences.  The marketing research is carried out so that all the aspects of considers which have impact on the purchasing joys of people. These purchasing choices can also be impacted by different aspects which are beyond just the product offered.  The psychological aspects are very crucial because the imaging of specific item shows or makes the clients experience when they buy it. These factors are very crucial to client. The clients many times feel that psychological aspects are superior to the physical when if it's provided by other offerings. Why marketing management, McDonald's is capable of establishing a great position in the brains of clients. This is termed as branding of the product. 

 There are very few people in the market and they have to choose among lots of competitors. In order to ensure that long term and recording businesses forwarded, it is very important to retain the clients after their first visit itself. The clients are never the same. Each client has different taste, preference and want. The marketing researches show that there are various kinds of clients like:

  • A parent who has two kids – he would visit McDonald's to give party to his kids
  • Kids: they wish to go to McDonald's because they find it as a location of having fun
  • Business client: he would visit McDonald's in the day of working because services earthquake and food can be of high quality and even consumed within girl without having any impact on his busy working schedule 
  • Teenager school they want to visit McDonald's to try out the new money saving menu which is economical and even sometimes they visit McDonald's because of availability of free Wi-Fi. 

 These are very few kinds of clients for McDonald's and every one of them has a unique aim to come to McDonald's. By getting this kind of information McDonald's can customise the communication made to words different segments. The wants, requirements and wishes of different segments is the basis for declining the kind of Potenza persistent be offered, pricing, promotional techniques used in the place where restaurants have to be situated. So as to build up a marketing strategy that will allow the requirement so you just like it to be fulfilled, the advantages and disadvantages, strengths  and weaknesses  of the business  said to be recognised and assist carefully. This kind of assistant will find out the various things like that kind of product is suitable and how it can be beneficial in the coming times. It also decides the quality of staff members to be recruited and the kind of training to the public it to them so that the best level of customer services provided.  The market research will let the businesses to know the kind of systems and their functioning to be used so that the high level of client satisfaction is achieved. McDonald's carries out all these researchers and on that basis marketing databases and restaurant frameworks have been made. After the decision regarding strengths and weaknesses there is the integration with threats and opportunities of the market. 

Conclusions

 As per the above essays and the use of different examples it is surely feasible that McDonald's then continue to be profitable for use of old marketing concepts also. However it is recommended that the mismanagement of McDonald's and its decision makers do not know the constraints of these concepts.  There are other marketing concepts which tend to ignore the needs of clients and their desires. It is also suggested that there can be changes brought about is also in the products offered by McDonald's, after researching about the culture and residences of different areas (Aitalieva and Panasyuk, 2016). Like Starbucks has introduced stronger coffee after the knowledge about the Chinese market and their culture. This way McDonald's coin also and their culture. This way McDonald's can also focus on the targeted segment and modify its offerings. Even it is suggested that McDonald's Fitch is an eco-friendly image to the client and increase is the use of Recycled packaging showing to clients how it controls its waste and uses the reuses its cups. This way we can also be able to prove to the society that so cited marketing concept is utilised while operation and therefore business would be able to attain benefits of the same. 

 Can also be concluded that marketing management wishes to create strategies that would be many facial for the business so that great relation can be created with targeted clients.  As per the marketing concept, the aim of marketing is to know the requirements and desires of clients into Fitch consumer value by higher satisfaction and superior quality. McDonald's has to provide in a more efficient and effective way than its competitors so that its value can be improved. Therefore it is of no concern whether the marketing concept to be used is a new one or a conventional one. It is very important to know what the targeted clients require and wish. Also the business is not expected to always use the one and only concept; it can be altered by alteration of perception regarding the targeted plans. The main aim of adoption of marketing concept is to see that the most appropriate one is chosen which give is the guiding reference for suitable marketing activities. There is no harm in looking back to the constraints whenever the business makes use of which ever marketing concept in operations. Therefore McDonald's has to always ask itself how it can serve its clients in the best manner possible. 

References

Aitalieva, V. and Panasyuk, M. (2016).The Specifics Of Corporate Culture Management In a Foreign Subdivision Of Mcdonalds Company. Business Strategies, (11), p.1.

Brotherton, B.(2012). International Hospitality Industry. Burlington: Routledge.

Chon, K.S., Pizam, A. & Mansfeld, Y. (2012). Consumer Behavior in Travel and Tourism. Madison Ave, New York: Routledge.

Daley, J. (2013). Do you want truffle fries with that? Entrepreneur, 41(1), pp.124-29.

Datamonitor (2010). Mcdonald’s Corporation SWOT Analysis. London: EBSCO Datamonitor.

Gerhardt, S., Dudley, D. & Hazen, S. (2012). Franchising and the Impact of McDonald’s. Journal Of Management & Marketing Research, 10, pp.1-10.

Higgins, M. (2002). Closure in crystal size distributions (CSD), verification of CSD calculations, and the significance of CSD fans. American Mineralogist, 87(1), pp.171-175. 

Hendrikse, G.(2008). Strategy and governance of networks: Cooperatives, franchising, and strategic alliances. Heidelberg: Physica-Verlag.

Hugstad, P. (1997). Marketing the Marketing Major. Journal of Marketing Education, 19(1), pp.4-13.

Kotler, P. (2017). Philip Kotler: some of my adventures in marketing. Journal of Historical Research in Marketing, 9(2).

Lyttelton, A. (2009). Political language in Italy and Great Britain. Journal of Modern Italian Studies, 14(1), pp.66-74.

Marketwatch, (2005). Company Spotlight: McDonald’s Corporation. Marketwatch: Global Round-Up 4, no. 12, pp.78-83.

McDonald, M. (2013). Discourses of climate security. Political Geography, 33, pp.42-51.

Mishra, P. (2014). Sales management: Keys to effective sales.. New Delhi: Global India Publications.

Moschandreas, M. (2012). Business Economics. London: Thomson.

Reynolds, J. (2013). McDonald’s runs ad to knock rival Burger King. Marketing Magazine, 25 January.

Swiss McDonalds serves up contactless EMV transaction. (2007). Card Technology Today, 19(4), p.7.

Thomadsen, R. (2007). Product Positioning and Competition: The Role of Location in the Fast Food Industry. Marketing Science, 26(6), pp.792-804.

Verma, H.V. (2012). Services marketing: Text and cases. New Delhi: Pearson Education.

Wierenga, B. (2002). On Academic Marketing Knowledge and marketing Knowledge that Marketing managers Use for Decision-Making. Marketing Theory, 2(4), pp.355-362.

Zelas, K. (2009). Crest to crest. 1st ed. Christchurch, N.Z.: Wily Publications.

Zhang, Y. (2012). Discussion on Marketing Principle of Offensive Warfare. IERI Procedia, 3, pp.137-141.

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