Unit 4 Marketing Principles Assignment - McDonalds

Marketing Principles Assignment McDonalds

Unit 4 Marketing Principles Assignment - McDonalds


This assignment is based on the marketing principles and has been divided into 4 Tasks. Task 1 is an individual written report. It is based on the scenario of Sleep well. It will explain the various marketing elements and the benefits and costs of the marketing orientation for it. Task 2 is based on the video of Mc Donald’s segmentation, targeting strategy, positioning and buyer’s behaviour. Task 3 is also an individual written report that will cover the concepts like competitive advantage, distribution process, promotional activities and extended marketing mix elements. Task 4 would a written report on marketing mix planning, differences in the marketing products to business and differences between the domestic and international marketing.


In this task a report would be prepared as a marketing consultant for the importance of setting up a marketing department in Sleep Well.

Q1 Explain the various elements of the marketing process.

Marketing process and its department set up is very crucial for the business strategy. It helps in the alignment of the objectives of the company with that of the customer requirements. The various elements of marketing process for Sleep Well are explained as under:

  • Scanning of the marketing environment – This is an element that helps in the complete scanning and research of the market in terms of the customer requirements, needs and the trends that have been prevailing for the specific products. For example with regard to Sleep Well, it would be kind of mattresses that are preferred by consumers.
  • Following a strong and sound marketing strategy – This would comprise of following a strong strategy in terms of the target market, segmentation criteria and positioning of the various products.
  • Implementation of the marketing tactics – This would be developing the various marketing mixes in terms of the products, pricing, place and the promotional activities with regard to product (Bearden, 2006).
  • Monitoring and Control Process – This is one of the key elements for taking the control by consistent monitoring process for the products of the company.
  • Evaluation, Assessment and improvisation – This is the most important element as helps in the assessment, evaluation and measuring the performance of the products with consistent improvisation.

Q2 Evaluate the benefits and costs of a marketing orientation for the selected organization.

In case Sleep Well would measure the kind of costs and benefits that the competitors have kept in the market then surely they would be able to label their products accordingly. This would help them in targeting the right set of customers with right processes and labelling the products with right pricing strategies. Costs and benefits that would be assigned and associated with various products help in the forecast and measuring the benefits that the company will realize in the longer run. Right costs and pricing benefits also helps in the fighting of the competition. It targets the right market gaining the competitive advantage. Sleep Well can study and analyse the market so that it may get to know on the right kind of processes, practices and procedures that it has to follow in the longer run. Sleep well will gain benefits in terms of the building the reputation or image of the brand, realizing the benefits of the products that it has been manufacturing and gaining of a competitive strategy with the marketing advantage over other competitors.


This is the task that is based on the case study of Mc Donald’s.

Q1 Show macro and micro environmental factors which influence Mc Donald’s marketing decisions.

Micro and Macro environmental factors play a very important role in taking various marketing decisions by McDonalds. The micro and macro factors that affect the marketing decisions for Mc Donald’s are:
Macro factors will comprise of the PEST factors like political factors, economic factors, social factors and technological factors (Kotler & Levy, 1969).
Political Factors – These are the factors that are like duties, taxes, inflation rate and the governmental policies and regulations with respect to the fast food industry.
Economic Factors – They affect theorganisations of McDonaldsmarketing decision and are changes in the rates of the currencies of the base country with respect to the new location, the company has been opening up the office.
Social factors – It all depends on the social styles, trends and the likings of the people that will determine the kind of products that the company has been manufacturing.
Technological Factors – These are the technologies or the infrastructure that will help in the effective and efficient production and distribution of the products. 
On the other hand the micro environment will have the following factors:

  • Customers
  • Suppliers
  • Distributors.
  • Media
  • Banks
  • Employees
  • Trade Unions.

It could be said that micro environment is the internal environment of the company that comprise of the various stakeholders that are associated with it (Brassington & Pettitt, 2005). 

Q2 Propose Segmentation Criteria to be used for products in different markets for Mc Donald’s.

Segmentation is said to be a process in which a company develops the plan for targeting a specific segment so that it will be focussing and developing an actions plan towards it. This segmentation process will be based on the social styles, economic trends, age groups and other parameters. It helps in defining the areas and the segments which the company can target so that it may realize its revenues. For example in case Mc Donald is operating in the Muslim countries then it will not bring about products with the Pork as Muslims do not eat pork. On the other hand in India, cow is respected and therefore beef related products cannot be sold in this market. It has burgers and rolls for each and every segment of the consumers. They will be ranging from low spicy to high spicy burgers, rolls, wraps and other associated products. Segmentation helps the company in developing the products as per the targeting or chosen segment thereby gaining success in its sales.

Q3 Choose a targeting strategy for a selected product/service for Mc Donald’s.

Mc Donald has to develop a target strategy before its launches the product into the market. For example say the company develops Potato Wraps with a low spicy range. This is important that this product is targeted to the right set of customers. These may be old age and children. These potato wraps are low spicy therefore will be liked by the people who do not consume much spices. These are the children and the old age people. It has to find out the place where the maximum concentration or population of the targeted audiences exist. Mc Donald has to keep its products as per the affordable rates as this is not an earning class and cannot afford high rate products. The company needs to promote the products on the kid’s channels on media and even outside the schools and colleges so that children could try these products and helps this process in pitching the sales (Kotler & Armstrong, 2013). 

Q4 Demonstrate how buyer behaviour affects marketing activities in different buying situations at Mc Donald’s.

It is the buyer who has to be satisfied and made happy by the products and services of the company. In case Mc Donald will provide to the right segment and position its products on the right customers then it will help in targeting and high sales. It is important that before a product is fully launched and taken out in the market, it is being tested to receive the customer feedback. This feedback helps in making the complete evaluation of the product. Then based on the buyer’s behaviour and responses, the company can mould and modify its products so that best out of it is derived. Mc Donald has to diversify its products as per the buyer’s responses and feedbacks. This will help the company in making and taking the correct action plan.

Q5 Propose new positioning for a selected product/service at Mc Donald’s.

Positioning refers to the target strategy of positioning or placing the products to its right customers. This helps in saving time and other resources from going waste. Mc Donald has to position its products in the areas as per the target and positioning parameters and strategies that it has developed.

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This task will be based on Unilever Company.

Q1 Explain how products are developed to sustain competitive advantage.

Competitive advantage is gained when a company has unique features and attributes in its products that are missing in various other competitive products available in the market. Unilever has varied products with many features that make it different and competitively advanced among its competitors. It has special offers and high quality attributes in its products and services that it provides to its consumers. It has been consistently taking feedback and doing product evaluation and assessment so that it could find out the changes that have to be introduced in its products so that they suit the customers. Unilever has been manufacturing goods as per the requirements of the country and its people so it does operations as per the requirement.

Q2 Explain how distribution is arranged to provide customer convenience.

Unilever has got a wide network of its suppliers, associates and vendors from where it procures the raw material for conversion into the finished goods. It has been setting up its warehouses and the distribution set up very openly so that it may arrange for their products storage and further distribution to the suppliers, wholesalers and the distributors. Unilever always believes in the creation of the backup system that helps it to maintain consistency in the delivery and supply of the goods and products. It is also timely benchmarking its products and services so that the consumers are satisfied and they keep consuming its products and keep giving their feedback on the products for improvisations.

Q3 Explain how prices are set to reflect an organization’s objectives and market conditions.

Prices that the companies have been setting are the basis of determining the objectives and the company’s targets. It helps the company in either taking the mass customizations and or gaining low cost leadership. Pricing even decides the fate of the company for a longer run. Based on the competitive benchmarking, production costs and even the budgets of the targeted customers, the costs and pricing of a product is set. Pricing strategies are being followed by the companies in order to tap the right customers. Unilever has different pricing strategies and varied products in different range. It helps in satisfying all kinds of customers. It has pricing for the various segments of its targeted customers so that it does mass capturing of the FMCG market through its variety in products.

Q4 Illustrate how promotional activity is integrated to achieve marketing objectives.

It all depends on the objectives, aims and the aspirations of the company that the promotional activities and the decisions related to it would be taken. In case Unilever has to sell its cloth washing soap which is cheapest among all available in the market then it will capture the market by the promotional activity that compares this with all others declaring it to be cheapest. It all depends on the objective and the purpose behind the products and the services that the promotional activities would be decided accordingly. Marketing objectives act as the basis for taking the right decision towards the promotional strategy and the kind of activities that have to be organized for them. It helps in taking the decision on the kind of methods, techniques, ways and criteria of doing the promotions. It declares and forecast the time period and the intensity of promotions that have to be carried out. There are various media sources through which the marketing could be carried out like: pamphlets, newspapers, online marketing and brochures etc. Later on the basis of the promotional mix, the promotions objectives are set and achieved (Kotler, 1975).

Q5 Analyse the additional elements of the extended marketing mix. 

There were 4 marketing mix: Product, Price, Place and Promotion. Later 3 more elements were added namely: Physical Evidence, Process and People. Physical evidence is the marketing that is liked by people through the ambience, cleanliness and hygiene being maintained in the outlets of the Unilever. There is systematic process that Unilever has been thinking of in each and every activity so that its processes, practices and the structures are successful. Unilever has to define its target audiences and the people and then accordingly it must target them.


In this task there would be discussion on the scenario and answering of the questions like marketing mixes, differences in domestic and international marketing etc.

Q1 Plan marketing mixes for two different segments in consumer markets.

In this there would be discussion on the market mixes for the two different segments of Mc Donald. The burgers are small sized and king size for the potato type.
Marketing mix for this potato burger is
Product– Small Size burger with potato studding has been developed by the company for the children and teenagers whereas on the other hand king size burgers are set up for the hunger and needs of the adults. Therefore each burger has different kind of target customers. It will have differentiation in terms of addition of more stuffing in the potato burger for children and that of adults (Hernandez, 2002).
Price– Pricing for the small burger will be as per the pocket money of the children whereas the pricing for the king size burger would be higher.
Promotions – Based on the target audience and the customers, the products would be promoted accordingly.  

Q2 Illustrate differences in marketing products and services to business rather than consumers.

Customers are differently satisfied compared with the marketing of products and services to that of the businesses. There is a requirement of emotional, religion and social factors to be considered while doing the marketing to the consumers. On the other hand in case marketing would be carried out for businesses on the basis of proper logic and reasoning. The entrepreneurs will not spend even a single penny in case they will not see their advantage in it. It is very important to focus on the mutual benefit that would be obtained from the products and services in order to tap the order or the tender. Before this proposal, it becomes imperative to study the market requirements, kind of suppliers and business associates that are related or linked with the various kinds of businesses. Whereas for customers it is important to first assess their needs and then sell the products of right type and kind to them. This will help in bringing satisfaction to them. Once customer becomes loyal he will always remain loyal. On the other hand business will look for cost effectiveness and benefits thereby attracting and negotiating with various other vendors and the associates.

Q3 Show how and why international marketing differs from domestic marketing.

Although marketing involves the similar activities yet the domestic marketing is very different from the international one. It is due to the major difference of the kind of environment, governmental policies, rules and regulations, kind of competition that exists and the differences in the marketing principles and processes that have to be adopted. There is a change and shift in the likings and trends that are adopted in both the kinds of markets. It is therefore essential to understand the customer so as to do maximum and optimum level of selling of goods (Bagozzi, 1994).


It could therefore be stressed out that marketing principles and concepts are very important to be studied in order to tap the potential elements of market and even establish the place in the market. All the companies have been studying, analysing the elements like micro and macro factors, segmentation, positing and marketing mix to lay down the benefits of marketing.


Bagozzi, R. P. 1994. Measurement in marketing research: Basic principles of questionnaire design. Principles of marketing research, 1, 1-49.
Bearden, I. 2006. Marketing: Principles and perspectives. Academic Internet Publishers, Inc.
Brassington, F., & Pettitt, S. 2005. Principles of marketing. FT Prentice Hall.
Donovan, R. J., & Henley, N. 2003. Social marketing: Principles and practice (pp. 57-90). Melbourne: IP communications.
Getz, D. 2000. Explore wine tourism: management, development & destinations. Cognizant Communication Corporation.
Hernandez, S. A. 2002. Team learning in a marketing principles course: Cooperative structures that facilitate active learning and higher level thinking. Journal of Marketing Education, 24(1), 73-85.
Kotler, P. 1975. Marketing for non-profit organizations.
Kotler, P., & Levy, S. J. 1969. Broadening the concept of marketing. The Journal of Marketing, 10-15.