Introduction to Marketing Principles
Marketing principles can be defined as a range of processes through which firms get to know the needs and wants of customers. Accordingly, organizations provide services or products with the help of which they satisfy their customers. Main aim of organization is to gain maximum profit and for this aspect, marketing principles are very helpful in providing their customers with the better products or services which attract more and more customers (Yeu. and et.al., 2012). The present report is about McDonald's which is one of the fastest growing Firms as it is mostly focused on understanding their customers and accordingly, it provides products which would satisfy them. It has covered almost all the region in all around the world. In this context, it has 36000 outlets at the global level.
Main aim of this report is to understand skills which are related with the fundamental principles and concepts that underpin the marketing process. In this context, different processes and concepts used in marketing will be covered in this report. Further, it also covers the use of different marketing mix at different contexts. Lastly, it also includes the concept behind targeting, positioning and segmentation.
Various element involved in marketing process
Marketing can be determined as a process through which organizations convey information to the customers regarding their product and services. It is very helpful for the firm as it increases the level of sales and revenue (Jeon and et.al., 2015). In this context, there are mainly four elements involved in it which are product, price, place and promotion. For a firm, it is very important to know these four elements so that they could deliver their products or services effectively. Following are the different types of elements which are involved in marketing processes:
Marketing mix: There are mainly seven elements involved in marketing mix. All the seven elements are very essential for understanding the demand and accordingly, providing products and services to the customers which would satisfy them. In this context, McDonald's should be careful in setting their marketing mix so that they could understand their customers effectively.
Segmentation: It determines target audience to whom firm wants to deliver product or services. In accordance with the case, it is very important for McDonald's to determine their target audience as it would provide proper direction through which they would be able to attract targeted audience (Osman,, Johns and Lugosi, 2014).
Analysis of environment: In order to analysis business environment, there are many tools which are involved and these tools are very helpful for the organization to know drawbacks or areas in which they lack. McDonald's can use tools like SWOT, PESTLE, Porters five forces, etc.
Costs and benefits of marketing orientation of McDonald's
Market orientation plays a vital role for the organization. It is a type of model which helps organization to deliver products or services according to the needs and requirements of customers. Following are the benefits and costs of market orientation to McDonald's:
Benefit: Marketing orientation has helped McDonald's in many ways like it has helped in understanding the need and wants of customers (Paul and Roy, 2014). Most importantly, it helps in making able to satisfy customers and as a result, there are many loyal customers for McDonald's. Company frequently takes feedbacks so as to understand the requirement of customers and focus on resolving all the drawbacks. It has helped firm in increasing its sales and revenues along with developing goodwill.
Cost: In order to attract customers, company has made different target audience through which they focus on providing different types of offers according to the segmentation. One of the important strategies which is adapted by McDonald's is that, whenever they come up with new product or innovation, they provide different discount offers. This is done just to know whether the product would be accepted by customers or not (Bal and et.al., 2015). When customers get to know and start accepting the new product, then it raises the price of products and services. In order to convey their offers or new products effectively, they make use of different promotional tools like internet, newspapers, television, radio, etc. so as to attract customers.
Micro and Macro factors which affects marketing decisions
Micro and macro environmental factors highly affect the marketing decisions. Micro environment includes those factors which have direct impact over the organization. These factors are necessary to be managed by the organization (Kulkarni, 2012). On the other hand, macro environment includes factors which also affect organization but company can just take appropriate steps to reduce its impact but cannot completely overcome it.
Segmentation criteria for different markets
McDonald's provides variety of products to its customers and the requirements and needs of the customers at different places differ from country to country. There are many countries in which they developed products according to the tastes and eating habits of the customers at particular market (Ayres and Ayres-Brown, 2014). For example in India when they introduced McDonald's, it was not able to attract customers effectively as the product provided by McDonald's was not effective enough. But when they got to know the tastes and preference of the Indian customers, then developed products accordingly and it helped them to attract customers. McPaneer Wrap, McAllo Tikki Burger, Chicken Maharaja Mac, etc. are products delivered by McDonald's and are soled only in India. The cited firm is focusing on introducing Chicken Maharaja Mac at UK. From its name it is clear that it includes chicken, vegetables and most importantly it includes India masalas which makes it spicy combination. In order to introduce it to UK market, managers of McDonald's would focus on psychographic and demographical segmentation (Quek and Ling, 2013). For attracting customers of UK it would sell the product at discount rate and when McDonald's would get to know the positive response, then it would raise its price.
Targeting strategy for Chicken Maharaja Mac
After segmentation of market, McDonald's would focus on selecting appropriate strategies through which they would be able to attract customers and in competing effectively to their competitors. In this context, there are different types of targeting strategies which can be adopted by McDonald's, few of targeting strategies are as follows:
Differentiated strategy: According to this strategy, firm would focus on different market at a time. In this it has to know all the favourable factors which would help the product to attract customers effectively (Puzakova, Kwak and Bell, 2015).
Undifferentiated strategy: According to this strategy organization would focus on only one market. They would be able to focus on one market and it would be easy of the firm to know the taste and preference easily.
Concentrated strategy: This strategy would be helpful for the organization to know advantages of adopting the product in the cited market.
According to the above given strategies McDonald's should use undifferentiated strategy as Chicken Maharaja Mac is totally new for the market and through this strategy they would be able to know the impact or the likeliness towards the product. If the response of the product would be positive, then they would be able expand their product to other market as well (Gerhardt, Hazen and Lewis, 2014). In this context, they would be able to focus on particular target audience of the market and can also make change in the product according to the preferences of the customers of UK.
Impact of buying behaviour on marketing activities in different buying situations
Customers behaviour towards the product would be favourable if the firm uses promotional tools effectively. Tools like television, internet, newspapers, etc. (Ghobadian and O’Regan, 2014) should be made used. It should be used in such a way that it creates curiosity among customers and to try it. It is very essential for the firm to understand customer’s tastes. Word of mouth and advertisements play an important role in buying behaviour of customers. If the taste and preference of the customers would be positive, then it would affect the buying behaviour of customer's. They would tent to buy it and taste it at least once. Further, they should provide their customers with additional services (Bernhardt and et.al., 2015). As Coco cola has tie up with McDonald's, Coke should be provided with this product so that customers could be attracted.
Further, McDonald's can use different pricing strategies through which they would be able to attract more and more customers. In this context, they should keep the price of the product low at the starting and when customers get positive response from the customers, then they should increase the price.
New positioning for Chicken Maharaja Mac
Positioning is a process through which firm focus in developing a good image of the product among the mind of customers. It is very essential for the organization to develop good image among the mind of the customers. Through his they would be able to increases the sales for Chicken Maharaja Mac. For positioning it is very important for the business to get positioned then product should be positioned (Teeple, 2016). In the context of McDonald's, this firm has its positioning done. In relation to this, they should focus to position their product at one direction. As the product is new to UK market so they should not focus their positioning at different direction. They should first try to get the response and if they get positive response, then they should position it to other direction as well. There are many competitors for McDonald's who also focus on positioning their product. McDonald's should try to develop different type of positional strategies through which they would be able to compete effectively and could attract more and more