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. 

Retailing

McDonalds retail stores are located around the world,own by different people. Witch is consider to be  franchising (is a continuing relationship in which a franchiser grants to a franchisee the business rights to operate or sell a product).  When it come to franchising McDonalds is one of the companies that is on top of their game. There are two basic forms of franchises  that are use today: Product and trade name franchising ( which a dealer agrees to sell certain products provided by a wholesaler or a manufacturer), and business format franchising ( an ongoing business relationship between a franchisor and a franchisee).  McDonalds franchisor uses business format franchising to generate business. No matter what McDonalds you go to they all will have good customer services, and rapid moving lines. McDonald’s has over 32,000 locations in more than 100 countries around the globe. They serve more than 60 million people around the world every day. 

Ch6-Consumer Decision Making.

when a consumer has the need to purchase a product they mite go through a process called the consumer decision making process. This process involves five steps which are 1. Need Recognition ( occurs when a consumer are faced with an imbalance between actual and desired states that arouses and activates the consumer decision making process), 2. Information Search ( when a costumer search for information about the various alternatives available to satisfy it), 3. Evaluation of alternatives ( occurs when a consumer compares all the alternatives society has to offer) 4. Purchase ( occurs when a consumer buys a product) and step 5. Postpurchase behavior ( is when a consumer expectation are met). Marketing managers should know this process because this is how consumers make a decision on what products to purchase. McDonalds costumer often mostly use two steps out of the five step process. Most fast food companies costumers mostly use these two steps because some people don't do information search on the food they are going to eat unless you are trying to eat healthy. Even though people may use the step evaluation of alternatives, those people may not just want a microwave burger and some fries. 

Developing a Global Vision

McDonald's is the leading global food service retailer with more than 33,000 local restaurants serving more than 68 million people in 119 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women. Many McDonald's around the world have made minor or many changes to the menu. Theses changes were made so McDonald's would become popular in the country it was in, they wanted to show the customer that they could adapt to thier culture.
                                  

For explamle in Asia you can find a McHotdog Mega Breakfast Sausage on the menu.(on top) You also can find a Sausage and Egg Twisty Pasta ( Sausage, eggs, and pasta in chicken broth and “other greens. (below)

You can gat a bacon roll in a McDonald's restaurant located in England.

Marketing Environment

McDonalds target market is demographic (location,age,race,ethnicity,gender,etc,). McDonalds restaurant is always located in ease accessible populated areas. McDonalds does not have a sertien age group they target but they usually have some type of advertisement/promotion interacting with children. McDonadls is started to target people that are trying to lose wight by add salads to their menu.

Ethics and Social Responsibility

McDonald's is always trying to make tomorrow better then today. They have always been concern about the environment, their customers, and making a positive impacting on society. If you would like to see their hole idea on social responsibility it is on their website under the page sustainability, but giveing you a brief histor of it,It tells you how Mcdonals Company vales they seek to make a progress in five focus areas: nutrition and well being, sustainable supply chain, environmental responsibility, employee experience, and community. Also on that page you can accuses other pages: Signature programs- that tells us how their programs have become a key part in their sustainability and social responsibility strategy, sustainability library- that allows you to gain information on sustainability about McDonalds,their 2011 sustainability scorecard and their open for discussion page. You can accuses their eithical responsibility on there website page McDonalds/ values,they have some topics: We operate our business ethically, we place the customer experience at the core of all we do.

Strategic Planing for Competitive Advantage

McDonalds strategic plan to a competitive advantage is to deliver consistent, locally relevant restaurant experiences to their customers and be an integral part of the communities they serve.   McDonalds has set an competitive advantage by given their customers a good environment and  low prices.  McDonalds has gained a competitive advantage by setting themselves apart  from the rest. Theirs is a cost competitive advantage. 

        

Values in action: From the start, they have been committed to doing the right thing. And they have got the polices, programs and practices in place that allow them to use their size and scope to help make a difference. Because what's good for us is good for all of us.

Mission Statement

McDonalds brand mission is to be our customers favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the plan to win, which center on an exceptional customer experience-People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers experience.

Brief History

McDonalds is one of the most popular fast food restaurant in the world. Founded by two brothers named Dick and Mac McDonalds. They opened their first restaurant in 1940 located in San Bernardino, California. Their original name  for  their restaurant was McDonalds Bar-B-Que. the brothers closed down the store for some alterations, and reopened it's doors in december of 1948 as a service drive in restaurant. In 1954 multmixer salesman ray Kroc visit the restaurant and was fascinated by the operation. Ray Kroc buys out the McDonalds brothers along with the right to the McDonalds name for 2.2 million. Kroc opened his first McDonalds in Des Plaines, Illinois on April 15, the building designed was created by Stanley Meston. In 1958 McDonalds sold it's one hundred millionth hamburger and opened  their first hamburger university in 1961, distributing hamburgerology bachelor degrees. First McDonalds restaurant with indoor seating was located in Denver, Colorado in 1962. By 1965 there were over 700 McDonalds  restaurants throughout the United States and the franchise celebrated it's 10th anniversary. The first television commercial with  the appearance of ronald McDonalds in 1966. the first drive thru opened in Sierra Gist, Arizona. The first all America high school basketball team was created in 1977. The 5,000 restaurant opened in Kanagawa, Japan in 1978. Ray Kroc passed away in 1984, in 1990 the life magazine named him as one  of "100 most important Americans of the 20th century'. In 1992 a McDonalds located in poland broke the opening day sales record.  In 1966 they launched their website: McDonalds.com. Throughout the years of 2000 leading up to 2011 there were events that occurred and new products that got introduce to the menu. For example the first HFC (hydro-fluro-carbon) free restaurant opened in 2003, also their first global campaign "I'm lovin' it" was launched in Germany. The mcgriddles were add to the menu, the happy meal celebrated it's 25th year in 2004. McDonalds 50th anniversary celebrated in 2005.  In 2006 all packaging were redesigned to show the nutritional information. 2008 McDonalds  got awarded for being green. The chipote BBQ angus third ponder was introduced in 2011. McDonalds is an on going corporation that works on inventing new products for their customers.