Business Marketing

Business Marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption." Mcdonalds focuses on its strategic alliances with suppliers for their coffee. Along with their great marketing skills they still need to maintain the great alliances they have for their new McCafe line. McDonalds and McCafes in many national markets are part of the rainforest alliance. All McDonalds outlets and McCafes in Ireland and Australia for two examples offer only Rainforest Alliance coffees.

So far in the U.S. markets Franke Espresso Super automatics are being installed along with Bunn brewers. Three roasters are now the primary coffee suppliers for the U.S. McDonalds and McCafe outlets. They are located regionally: Gaviña, Vernon, Califorinia, distant lands of Tyler, Texas; and S&D coffee of Concord, North Carolina.S & D is currently the largest supplier of McDonalds' coffee plus all of its tea. According to Distant Lands, the McCafe rollout took six years of preparation, closely working with a McDonalds team to realize a unique espresso taste. These roasting companies are privately held and maintain their own ongoing coffee roasting and packaging activities, for their own brands or for the store brand/private label sectors. F. Gaviña & Sons, owned and managed by the Gaviña family, reportedly generates more than 100 million dollars in sales, of which 15% is from McDonalds. Gaviña sources coffee to more than 3,000 McDonalds/McCafes in the western U.S, and 98 in Orange County. 

McCafe is not just for McDonalds to become excited by, the entire coffee industry from trees to bars to office and vending services to store shelves ought to be caught up in this major new development, potentially the most vigorous coffee sales initiative since Starbucks' rise. Espresso, especially with McCafe, is gaining a vast new drinking market. And it might as well bring a significant young market to the drink, which coffee needs. Certainly no one should doubt the power of McDonalds or its new commitment to coffee. Here again we watch what could be a brighter future in the brewing for coffee.

Segmenting and Targeting Markets

Market segmentation- The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.


McDonald's offers not only hamburgers like it did when it first open, but also chicken patties that are offered in crispy or grilled. Fish, chicken, and beef wraps are also available to costumers.Different types of salad (Premium Bacon Ranch Salad,Premium Bacon Ranch Salad with Crispy Chicken,Premium Southwest Salad) are offered to the health costumers. With these different chose of produtcs they can attract more customers. They focus on selling to young kids to adults. Market segmentation is also useful when setting up in a different country because not every country eats beef, pork, or chicken.  For example in china the offer you Rice Burgers, where the burgers are in between, not burger buns, but two patties of glutinous rice (below).


Having a different market segmentation will help become more liked.


There are many different types of segmentations geographic, demographic, age, gender, income, ethnic, and family life cycle.


Target market - A gruop of people or organizations for which an organiztion designs, implements, and maintains a market mix intended to meet the needs of that group, rsulting in mutually satisfying exchanges.


The target market of the happy meals are to young kids and tweens. Extra value meals are aimed at generation Y and up.

Developing and Managing Products

McDonalds in the United States 8 product lines and 154 products on their menu serves 68 million people per day.They feed such a large number of people and  have such a large diverse menu of foods. So how do they add a new item to the menu? Well first off by taste. Taste is by far the most important factor. They also follow trends and the way people are eating. How long does it take to make the menu? The menu process can be very long, but it depends on the product. 

Integrating Marketing Communications

Promotional strategy is the most favorable use of the constituent of promotion: advertising, public relations, personal selling and sales promotion. McDonalds focuses on advertising to their target market by focusing on the overall marketing objectives. McDonalds uses mass communication to communicate with their audience. That is ideally the most efficient way for McDonalds to reach their large audience. By providing us with commercials and outside advertising we are fully aware of McDonalds and the message they are sending. The internet has made a huge impact on the marketing environment. You could simply search McDonalds and their website will come up with everything you need to know about McDonalds including their menu. They show the exact dates of when something new came to the menu. They even have a separate menu for the new McCafe.

Ch-10 Product Concepts

  McDonalds sells many different products to their customers. The ingredients that come in that product whether they want it or not. There are four different types of consumer products: convenience products, shopping products, specialty products, and unsought products. 
Convenience products- are inexpensive item and has little shopping efforts.
Shopping products- more expensive item and in fewer stores.
Specialty products- a buyer spends alot of time seeking for a perticular item and wont except any other product to replace it.
Unsought products- a product that no ones knows much about or a product buyers dont look for as much.
  The consumer product McDonalds sells is a convenience product because the products they sell are not expensive and they are very easy to accesses because there is a McDonalds almost on every corner. McDonalds first started it sold only about 6 items. Its main focus was on burgers. As they grew and expaned nationaly and gobaly in the 1960s they had to expand thier meun. Now they have about  90 different items on their menu.

Sales Promotion and Personal selling.

McDonalds is a world wide franchise,  able to create a positive influence on consumer purchase behaviour due to its high brand equity. Sales promotion (promotion activities targeting the ultimate consumer) world be the most common way to consume customers in this situation. One way they use sale promotion is by distributing coupons, you can acces these coupons threw a new paper, on the back of the recite of a McDonalds purchase, threw the internet and another way is threw catalogs. Another way the might use sales promotion is threw Premiums, even thought this method intertwines with coupons. The way they use premium is by offering a free or half off on the price of the same item they purchase. For example in the winter McDonalds might offer two for one deal with a small coffee.


The infamous McDonald’s Monopoly sweepstakes advertising promotion of McDonald’s and Hasbro has been offered since 1987. This long running promotion certainly creates a relationship and encourages repurchase.

Advertising and Public Relation's

McDonald's puts forth a large percentage of their advertising budget on TV Advertising. McDonald's also advertises on the radio and newspaper. They spend on average $3,000,000 a month on advertising alone.