McDonalds is a global corporation with over 2,000 restaurants in more than 190 countries. Their marketing research process begins with the idea of what they want to sell, and then proceeds to develop a product that meets that need. McDonalds uses a variety of methods to gather data, including focus groups, surveys, and interviews. This information allows them to create products that appeal to their target market and help them achieve their goals for the restaurant industry.
What is the Marketing Research Process of McDonalds?
In order to develop a product or service, marketers need to first identify the target market. This is done through marketing research, which is a process of gathering data about the preferences and needs of potential customers. The purpose of marketing research is to help businesses understand their customer base and develop products or services that appeal to them.
The Process of Marketing Research
The process of marketing research follows five steps: pre-marketing, post-marketing, targeted advertising, measurement, and feedback. In pre-marketing, businesses gather information about their target market by conducting surveys and analyzing data from previous customers. They also create objectives and targets for their study, which will help them determine how best to reach their target market.
After studying their target market, businesses must then design a plan to reach them. This can involve launching ads or creating content that will reach the target audience. Once the ads or content have been created, businesses must measure how well they’re working in order to continue developing the product or service in an effort to improve its performance. Finally, feedback from consumers is gathered in order to learn what works best for them and make changes based on this feedback.
Marketing Research Process of Mcdonalds
The marketing strategies used by McDonald’s in the UK and its impact on the global market are covered in this assignment. Due to its unwavering commitment to growing its own business, McDonald’s has become a household name. They make an ongoing effort to satisfy their customers. Therefore, it is crucial to pay attention to how this business is utilizing a marketing mix strategy and attending to customer needs. This marketing assignment focuses on McDonald’s specific goals and some challenges they face in operating their company.
LO1: Understand The Concept And Process Of Marketing
1.1. The Different Components Of McDonald’s Marketing Process
Review the success of your marketing
The marketing procedure, business communications, and developments to create sales techniques for McDonald’s in the UK will all be covered in this section. For any company to compete in the expanding market, there are many different factors. These are listed below.
- Maximize sales-related activities
- Manage marketing and advertising
- Control customer comments
- carry out market analysis
- Process Elements in Marketing
Performing market research
McDonald’s marketing research focuses on identifying customer needs and addressing them more effectively than rivals. As a result, McDonald’s is adhering to the 4Ps rule to foster market competition. The needs of the customer change over time (Murray, et al., 2011). In order to adapt, McDonald’s continually introduces new products (such as food and beverages).
Examine marketing efficiency:
In order to achieve marketing effectiveness, a company must maximize its spending in order to achieve both short- and long-term success. McDonald’s researches market trends both now and in the future, but instead focuses on the company’s current resources and capabilities (Dibb & Simkin, 2011).
Manage marketing and advertising
More crucial are psychological aspects, such as the buyer’s experience during the purchase. As a result, McDonald’s marketing research has been very helpful in identifying different customer types. A company’s ability to turn a profit depends heavily on the promotions component of the marketing mix. That is advertising that is done on TV, radio, in movies, online, and through the use of poster sites, among other media (Murray, et al., 2011).
Control customer comments
Manage customer feedback gives a business the means to connect with and develop a relationship with the customer. McDonald’s has successfully carved out a great place in the hearts and minds of its patrons. Teenagers frequent McDonald’s due to the affordable saver menu; kids want to go because it’s a fun place to eat (Balmer, 2011).
Maximize sales-related activities
The development of various types of businesses is greatly influenced by marketing strategy. Optimize your sales strategy to meet customer demand and foster a positive client relationship. McDonald’s uses marketing strategies and sound business planning platforms to boost sales. McDonald’s thoroughly offers numerous menus and studies the behavior of its customers around the world.
Because of this, McDonald’s has established itself as a major brand both in the UK and globally (Kim, 2016).
Because of this, McDonald’s has established itself as a major brand both in the UK and globally (Kim, 2016).
1.2. The advantages and disadvantages of McDonald’s marketing strategy
The focus of this discussion is on the benefits and drawbacks of McDonald’s marketing orientation. The market-oriented strategy has some relative advantages and disadvantages for Boosts (Mild, et al., 2008). In actuality, product growth, distribution agreements, promotional marketing campaign growth, and pricing decisions are all included in the marketing mix. The benefits are listed below.
A business strategy has benefits in ensuring customer satisfaction. Therefore, it’s important to understand customer needs in order to quickly meet these demands.
A company can understand the needs and demands of its customers thanks to market research. The entire process gives it an advantage over rivals.
Particularly McDonald’s has a remarkable attention to detail and a passion for providing the customer with goods, services, and comfort. Because of this, the current menu has increased by 70%.
The disadvantage for a small business owner is as follows, though:
A business organization has a limited number of departments. In order to succeed in the market, the company will employ an outside firm to research the market. Sometimes it will be very expensive to hire both a private marketing firm and a market analyst (Fana & Laub, 2015). The business reported that US sales dropped 3.3% last quarter.
Customer orientation requires expensive research that small businesses cannot afford to fund. The market researcher may occasionally have trouble correctly interpreting consumer behavior. Customers’ preferences for the specific commodity vary.
An economic downturn can sometimes cause sales to be inflated, and rising material costs can have an impact on McDonald.
Consequently, the overarching idea is that taking a risk is necessary for the development of a company.
LO2: Segmentation, targeting, and positioning theories
2.1. Show macro and micro environmental factors which influence marketing decisions
This section will provide examples of some macroenvironmental factors that may affect marketing choices. Raw materials are necessary to operate an industry. To produce finished goods, the price of raw materials can increase or decrease. Sometimes a new target market can be created, or an existing one can be eliminated. McDonald’s is aware of how the environment in Marco is changing. Below are those listed.
Demographics: The study of factors like age, race, and sex, among others, is reflected in the demographic condition. Companies, however, put a lot of emphasis on demographics like household size, occupation, and education. McDonald’s is aware of how the population in the UK is changing.
Economic: A country’s economic situation is a key consideration when developing a company’s strategy. When the UK experienced the recession, many businesses were left with numerous issues. The average person didn’t want to spend more of their available funds. The marketing team at McDonald’s began to consider it. They started offering new menus for sale at reasonable prices.
Cultural changes in entertainment and eating practices are another factor. The marketing sector needs to adopt societal cultural influences in order to develop successful marketing. Culture affects a product’s preferences. All of it results in the reduction of prior needs and the creation of new ones.
Government: The ability to manage monetary policy belongs to the government. Some industries alter their future policies in response to government meddling. Particularly, the UK government’s policy is the primary daily influence on McDonald’s marketing strategy.
2.2. The segmentation criteria to be applied for those that affect marketing choices
Another method used by McDonald’s to target markets and sell products to particular customer groups. McDonald’s market segmentation process aids in understanding brand perception, socioeconomic status, and age group. Instead, this process aids in the creation of social media campaigns, outdoor advertising, etc. McDonald’s may select one of the following five market segmentation strategies prior to developing its marketing strategy.
Differentiable: Every business should segment its market based on consumer preferences. That is, every company’s market needs to be uniform within itself.
Significant: There are numerous shared traits, such as brand perception, socioeconomic status, and age group. It wouldn’t be wise to spend all of the marketing budget on market segmentation. The longevity of a market is another crucial factor.
Accessible: It’s important to think carefully about how the market is accessible. The business can reach consumers through social media campaigns, outdoor advertising, and television infomercials. It is a skill that the marketing division possesses.
Actionable: The public’s and customers’ willingness to participate in the company’s market is affected by the company’s capacity for action. Actionable introduces litigation to the market. A business can take a variety of actions, such as focusing on a particular customer, offering customers value, being goal-oriented, integrating other brands to strengthen its brand, etc.
Measureable: The volume and value of sales and business are used to calculate market segmentation. To choose the best marketing strategy, the business must understand the size of each market segment.
2.3. The targeting approach for the chosen good or service
One of the key components of McDonald’s marketing strategy is its targeting strategy. The company must first select the target market for the goods or services it will offer. Marketing for the company will be simpler if they choose their target market. There are many ways to identify a company’s target market, some of which are listed below.
1) The business assesses the impact of its good or service on potential customers. They will also specify the traits of their target market. Targeting strategy should consider the client’s intended use of the product as well as how and when they will do so.
2) The company must take into account the nature of its customers. Gender, occupation, ethnicity, marital status, income level, and age are examples of customer types. Finding out which customer type uses the company’s product the most is crucial for deciding on the targeting strategy.
3) The business must take into account which product the customer is interested in. McDonald’s must select its customer base because it is a multinational corporation.
4) McDonald’s must first list the characteristics of the product. The business must determine which product best meets customer needs. If they make a list of the best products, it will be simple to decide on the targeting strategy.
2.4. How consumer behavior affects marketing efforts across different buying scenarios
Customer behavior is a key element that impacts marketing efforts in various contexts. The marketing plan for a new product is influenced by consumer behavior in the case of its introduction. The impact of consumer behavior can be seen in various buying scenarios as follows.
Pricing: For all products and services, the customer always prefers a lower price or discounted price. The company always tries to set their price relatively lower than the other company in order to achieve this goal of attracting the customer. As a result, the business calculated its budget before implementing any marketing strategies.
Advertising: Consumer behavior has an impact on how a product is advertised. McDonald’s promotes their chosen product in accordance with the customer’s preference for the product and service.
Social media: Social media is a great resource for businesses. Today, social media websites like Facebook, YouTube, and others make it easier for customers to choose products. As a result, the business believes that advertising on social media platforms is more effective than advertising on other websites.
2.5. New positioning for a particular McDonald’s good or service
A change in positioning refers to carrying out the same tasks in a unique way from other businesses or from one situation to another. This allows McDonald’s to excel at a specific product. For instance, McDonald’s burgers specifically target adult males as customers. Two key components of positioning are low cost and differentiation. To achieve its desired growth, the company must adhere to these two principles.
In the fast food industry, McDonald creates the affordable, family-friendly restaurant. In recent years, McDonald’s has adopted a low-cost positioning to appeal to more customers. McDonald placed a strong emphasis on lowering food prices as well as delivery times. McDonald makes use of equipment that is computer-operated to lower the price of the product. Few workers and little time will be required. McDonald sets its standard for the rest of the food in the fast food industry. McDonald has made a name for itself in the food industry.
LO 3: Particular components of the comprehensive marketing mix
3.1. How products are created to maintain a competitive advantage:
For a business to establish and uphold a reputation in a cutthroat market, it must have a competitive advantage. This benefit enables a business to turn a profit while offering the customer better products at a lower cost. It increases the customer’s attraction to that specific product. A company can produce a finished good and provide services to the customer more affordably than its rivals thanks to cost leadership, which is a component of competitive advantage. Another factor is differentiation strategy, which allows the business to build a positive reputation in the eyes of the customer. For continued competitive advantage, McDonald manages service standardization and product development. The following factors determine the competitive advantage:
It is a quick service restaurant. McDonald’s is renowned for providing prompt customer service while upholding the standards of both the food and the service.
McDonald’s greatest comparative advantage is its affordable price. It contributes to the overall cost-saving use of economies of scale. The consistency of the food’s flavor is another competitive advantage for McDonald’s. McDonald’s food is renowned for its standardized cooking method. The food is prepared with the same measurements and ingredients. It gains a favorable indication of customer loyalty as a result.
3.2. How distribution is set up to make it convenient for customers
The McDonald Company has pledged to fulfill customer requests as quickly as possible. All customers at every McDonald’s counter receive quick, caring service, more menu options, and a convenient, comfortable dining experience thanks to the restaurant’s increased value-added efforts. This business spends a lot of money on employee training. McDonald’s invests a lot of money in training and upgrading the skills of its staff. To help the business grow, they also add a lot of new jobs. McDonald’s participates actively in the local communities where their restaurant is located through football programs. Additionally, McDonald contributes its portion of profits to the Ronald McDonald House. McDonald wants their restaurants to be situated next to High Street. The company also wants its restaurants to be up-to-date, clean, and fresh. Food Park will be produced all over the UK. The food that McDonald’s will deliver will taste fantastic and be reasonably priced. Additionally, they will help the farmers who do a lot for them.
3.3 How prices are set to reflect an organization’s goals and market conditions, section
Pricing for a company’s manufactured product is more crucial.
Pricing indicates how long a company will remain competitive. There are numerous methods for determining a product’s and service’s price, including.
To remain competitive in the market, a business owner may set a higher price for the good and gradually lower prices.
The producer must compare the price of their product to that of their rivals. For the purpose of business expansion, the company will change the price of the goods to a lower price, the same price, or a higher price.
Another strategy is bundle pricing, which offers two items for the price of one. If not, the business can offer a complimentary item for free when a customer buys a specific product. Free coffee is now available at McDonald’s with breakfast sandwiches. McDonald’s bundles these products with the consumer-purchased goods. The price is being set in large part by the mental approach. Pricing may indicate a product’s quality. The final cost of distribution determines a product’s price, and the manufacturer adds a markup to generate a profit.
3.4. How promotional activity is incorporated to meet marketing goals
Different businesses use different promotional strategies for their goods. A common tactic for surviving in this changing era is product advertising. The customer wants to purchase the product after seeing it advertised on television, online, and in other media. Celebrity spokespeople are used by McDonald’s to promote their menu items and beverages. McDonald’s has begun adding new menu items like sandwiches and hamburgers. One of the most important aspects of direct marketing is home delivery. The McDonald’s employee, on the other hand, makes a good impression on the customer. To track customer satisfaction, they interact with clients face-to-face. McDonald’s occasionally hosts events and broadcasts them live on social media. These actions increase customer preference
3.5. Examine the other components of the extended marketing mix.
Different marketing mix components connected to the four p’s are driving brands like McDonald’s. Below is a discussion of them.
The needs of the customer change every day. Indeed, McDonald’s makes an effort to focus on the diverse age group. As a result, they are launching new goods and services to satisfy customers. The appeal of the food is influenced by the culture to which the customer belongs. As a result, McDonald’s has set up a variety of foods and beverages around the world.
A psychological component of the customer for the product exists. If a company uses a low markup, the customer might assume that the product is of poor quality. To categorize its products into two groups, BA ($20–30) and BCV ($50–$60), McDonald’s has developed a new strategy.
McDonald’s makes use of social media to promote its goods. In addition, this business started door drops and direct mail campaigns to advertise its goods.
A public conversation about the ingredients in food products is another specific factor that distinguishes McDonald as a top brand company.
How to Conduct Marketing Research.
In order to make informed decisions about the product you’re marketing, it’s important to gather data. This can be done by conducting market research in person or through surveys. In addition, online research can be helpful in understanding your target market and their preferences.
Use Data to Choose the Product
Once you have a good idea of what your product is, it’s time to start choosing the right ingredients and packaging for your target audience. You may also want to consider whether or not to release your product before its ideal launch date. By doing this, you can ensure that your product is available at a low cost and that potential customers are aware of its existence.
Determine the Target Market
Once you have a good idea of who your target market is, it’s time to determine their needs and preferences. This will involve studying customer feedback, demographics, and other factors that will help you develop a product that meets those needs perfectly.
4evaluate the Product.
1. What is the target market for this product?
2. How do you know what customers want and need from a product?
3. What are your chances of success in reaching your target market?
4. How might you adjust your marketing strategy to better serve the target market?
Tips for Conducting Marketing Research.
When conducting marketing research, use tools like questionnaires and focus groups to get a sense of what people want and need from their product. Additionally, surveys can be used to gather information about consumer sentiment and behavior.
Get a Report
When conducting marketing research, always get a report that summarizes the findings of your research. This will help you improve the product or improve your marketing strategy. By taking the time to produce a detailed report, you’ll be able to analyze the results and make changes accordingly.
Conducting marketing research is important in order to determine which products to sell and how to price them. By obtaining data, using it to choose the product, determin ing the target market, and evaluating the product, you can improve your sales and create successful businesses.