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Mcdolds Term Paper

Essay/Term paper: Ray kroc and mcdonald's marketing strategy

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In order for McDonald"s to reach its goal of "par excellence", it must use the full meaning and definition of marketing. Marketing is giving the target market what they want, when and where they want it, at a price they are willing to pay for it.

For McDonald"s to achieve its "par excellence", they must focus on the fact that there is an ever changing market and that the wants and needs of consumers are constantly changing. Since McDonald"s has been around for forty-one years, it is safe to say that they are the father of the fast food industry and that they have set an example for others to follow.
When Ray Kroc bought the first McDonald"s in , he focused on what people wanted. With this focus came the utilization of Mr. Kroc"s theory of QSC ( quality, service, and cleanliness ).
QSC successfully got McDonald"s off the ground, but as times changed, the company saw many more market segments and opportunities. In the "s and "s once again McDonald"s lead the way in the fast food industry. The changes we saw included, for example, the fact that women were now a major part of the work force and dual income families were becoming a more common occurrence. McDonald"s became a mastermind of marketing toward specific markets by pioneering ideas such as breakfast menus, healthier choices and alternatives, and "adult" foods. McDonald"s has truly evolved into a world power by paying attention to the needs and wants of the changing market and adjusting to these needs.
Ray Kroc saw early on what needed to be done. He changed what was at one time a product orientation, into a marketing orientation. Back in , this was still a new type of management. From the beginning, Kroc was already in the forefront of marketing.
Marketing orientation focuses on the customer and what they want in a product, rather than product orientation which focuses on the product itself. McDonald"s has taken every aspect of marketing orientation and utilized the philosophy to its fullest. McDonald"s has focused in on the customer needs and wants, sometimes even putting the ideas into the consumer"s mind before they even knew what they wanted or expected. McDonald"s could deliver! They have done extensive market analysis and product development based on this analysis. They have packaged their food and priced it exactly to the market segment which they have targeted.
Showing McDonald"s innovations in marketing even further, is its early adaptation of societal marketing. Societal marketing takes into account the overall concerns of the target market, the environment, for example. McDonald"s got rid of their one time innovative styrofoam packaging and replaced it with more environmentally sound paper packaging. They stress the fact that they are environmentally aware, by reminding us not to litter, etc., on their various forms of packaging. Another example if societal marketing is the Ronald McDonald House. This is probably McDonald"s largest community service project. It demonstrates the way that McDonald"s is willing to give something back to the very communities that support the company. These examples as well as the various events that McDonald"s promotes, such as the Olympic Games, puts their name worldwide. This makes it difficult for us ever to forget of the existence of McDonald"s.
McDonald"s also uses a theory referred to as relationship marketing. Relationship marketing is defined as marketing to protect the customer base. The customer is viewed as an asset and the company"s marketing goal is to attract, maintain, and enhance customer relationships.
There are five main criteria that must be met for a successful relationship marketing strategy and they are as follows :
1) There needs to be an ongoing and periodic desire for the product or service by the customer.
2) The service customer controls the selection of the service supplier.
3) There are alternative suppliers of the service.
4) Customer loyalty is weak and switching is common and easy.
5) Word of mouth is an especially potent form of communication about the product.
All of these criteria are met by the fast food industry, and McDonald"s has generally had a very successful relationship marketing strategy, especially through the implementation of the QSC program.
McDonald"s has definitely exceeded the definition of success. How many other businesses can say they have served billions and billions? McDonald"s has done an incredible job taking an intangible product and virtually dissipating any perception of risk associated with service products. Whether someone orders a burger, McNuggets, or a fish fillet, they know that their expectations will be met every time.

A clear solution for McDonald"s to continue its success is to stay focused. For years, McDonald"s has had the unique ability to adapt to the changing market, and that, along with their QSC program and innovative product development, has kept them on top. As long as McDonald"s seems to make our lives easier, by giving us a consistent, valued product, the company will always be in existence.


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Marketing is part and parcel of everyday life with every transaction being marketing or a business initiative of some kind. As Mullins & Walker () put marketing is a social process that involves those activities that are necessary to enable individuals and organizations to get what they need or want by conducting exchanges with other people so as to establish a continuous exchange relationship. It is also possible to say that marketing is in vain if relationships are not created with the consumers to enable the firm get repeat buying from the customers. The strong brands not only in the UK but also around the world have worked hard to ensure that people know their brands in a sense that they have made it possible for people to establish a personal attachment to the brands. This kind of loyalty is what makes organizations excel and post impressive financial results. Through this therefore it is possible to see the value of communication in business. Relationships are only built through constant communication with the customers and this happens through a variety of ways. For companies to succeed they need to have an integrated promotional mix in which they pass information to consumers to increase their presence in a given market and to increase customer understanding of their products and services. The Integrated marketing communication hence is a process of building and continuously reinforcing mutually profitable relationships with various stakeholders such as employees, consumers and the general public, through the development and coordination of a strategic communications program that enables stakeholders to make a constructive contact with the company brand through different media (Fill, ).

Context Analysis

At the initial stages of marketing communication is the idea of context analysis which essentially refers the process of determining and understanding communication drivers which are likely to have an effect on the brand. In context analysis, market research data about the target audience is highly appreciated. The needs, motivations, attitudes and decision making characteristics are very important kinds of information for a successful marketing communications plan (Fill, ). The information explained above is usually available at this time of the planning process because it is gathered from the marketing plan. Fill () says that context analysis will usually contain information on several but related contexts which enhances the marketing communications plan. The information thus emphasizes on the business context, the stakeholder context, the organizational context and the environmental context. The main purpose of the content analysis therefore is to understand the current situation if the product brand or the company. The current situation will then help the management in crafting the marketing communications plan (Pickton & Broderick, ).

McDonald’s business context

The company is rated as among the UK’s top super brands with local and international recognition. The company is a leading global food service retailer with over 30, local restaurants that serve over 68 million people in a day. The company has a physical presence in over countries around the world. The company values safe, quality food. It believes in affordability and convenience and providing the customers with an enjoyable experience through a service that they can always count on. The company’s business foundation is based on the espoused values that promote a culture of doing things the right way. It believes in responsible business and follows ethics for doing business (McDonalds, ).


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