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In this paper, a detailed analysis of the relevance of marketing concept in today’s world has been presented. Moreover, a managerial report is given on the implementation of marketing concept in McDonald’s Pl. The analysis on the influence of company’s chosen philosophy at its strategies and external environment is also given in the write-up. In the end recommendation have been made on how to implement successfully marketing concept as a management philosophy Introduction For any organization to compete in the rapidly changing market has to adopt a certain systematic approach to ensure its progress in the future.
The company has to adopt a specific philosophy by making a decision that how it will harness its strengths to show progress and satisfy the consumers (Kenton et al, 2007, p. 86). The philosophy has to be selected on what tools the company should use in order to achieve its desired goals and objectives and how the firm can manage and market its products and services effectively. There are four fundamental marketing philosophies that a firm can choose from production, sales, marketing and social marketing concepts.
Overview of the Company McDonald’s is a fast food chain of around 30,000 restaurants in more than 100 entries. The fast food chain serves about 52 million customers each day and is considered one of the largest food retailers (Paul & Roy, 2014, p. 99). It is part of an American daily life. The company has developed various management strategies and business programs for motivating resources and to progress in the fast food market. McDonald’s provides the best opportunity to evaluate organizational philosophies and their influences with the organization.
Marketing Concept Marketing concept is a management philosophy that relates organizational goals with customers’ satisfaction. According to Kettle and Keller (2012) argues that the marketing is a concept of penetrating business within the existing market. Identifying and satisfying the stated and unstated needs of the clients can only achieve the objectives of a firm. Marketing is the process of management responsible for identifying; anticipating and satisfying the customer needs align with the company objective (JIM, 2001).
The needs of the customers are not obvious all the time and they also keep on changing. It does not mean that the manufacturers forget about creativity and innovation and only strive to meet the customers’ satisfaction but they would encourage innovation so that the clients get satisfied. The concept of marketing orientation is based on the knowledge that sale is not dependent on aggressive promotional forces but on the decisions of the consumer to buy a specific good or service. Those companies, which adapt this strategy, design and manufacture their products as per the needs of the customers.
Their agenda is to make profits by satisfying their customer. Many organizations from today’s world have chosen this philosophy and brought the organization to success such as Disney, Procter & Gamble, Toyota, McDonald’s, Nikkei and many others. McDonald’s Implementation of Marketing Concept McDonald’s is one of the most famous and successful companies that have adopted marketing concept philosophy in its business operation. The first thing that comes into people’s mind for fast food is McDonald’s. The organization has a huge brand equity, which helps to gain various competitive benefits.
The reason of the achievements of the company is considered to be the strategy to prioritize client satisfaction with its managerial process (Melodic, 2014, p. 10). Around the world McDonald’s, deliver services with best quality and customer value. Understanding the needs of customers in different regions the company changes its recipes and services accordingly. The fast food chain adopts the strategy as per the taste and preference of each country. It gives importance to the culture and religion of its customers.
For instance in Malaysia, Indonesia and Saudi Arabia McDonald’s restaurants serve only hall meats, where as in India beef items are not part of the menu. This gives it distinguishing position in the fast food business. The firm keeps on doing customers surveys and researches to monitor the quality of its product and revise and the level of client satisfaction. The management keeps on doing brainstorming for cutting costs, increasing quality and speeding up delivery in order to bring greater value to its consumers. McDonald’s has made a new brand image with the new marketing campaign call “I’m loving’ it” in order to expand its growth.
The company is trying to fit into every person’s lifestyle no matter from which region he is. To understand the preferences of the customers it is important for any organization to build quality relationship with them. McDonald’s Strategy Influence Its Business Structure McDonald’s in China McDonald’s open its first store in city of Sheehan, Southern China in 1990. Before starting the business there, McDonald’s management carried out a business research of about 5 years through which the company gathered information about the income level of the people and the likes and dislikes of Chinese people in food (Han, 2008, p. 5). The management decided to redesign the internal environment of the restraint as per the Chinese culture and customs. Even the size of the chairs and counters were re-designed as per the height and physical structure of the Chinese people. In he beginning, McDonald’s wanted to promote its American Burger in China but it did not achieve the same success that KEF had. The reason behind this is that Chinese do not like meat as much as they like chicken, which is the main ingredient in Cuff’s burger.
After understanding the core issue, the company tried to add chicken in most of their dishes in order to achieve client satisfaction. McDonald’s in France The French people are not happy about the storming fast food chains. In order to boost its sale in France, McDonald’s remodeled its restaurants by introducing wood- beam ceilings, hardware floors and armchairs. The company also add new flavors into their dishes to satisfy the French Clients (French & Smith, 2013, p. 1356). The food items prepared solely for the French customers are Brioche, espresso and other sandwiches.
McDonald’s in other countries adapts this strategy as well. For instance in Canada, the fast food chain has started Canadian feature breakfast. Mac. Chicken Premiere is added to the menu in Belgium. Thus, to cater the needs of its clients McDonald’s make all possible efforts and that is the reason for the progress of the firm in today’s rapidly evolving food chain market. McDonald’s Strategy Influence Its External Environment Health issues Now-a-days people are becoming more conscious about their health and living standards.
McDonald’s as a fast food restaurant has faced difficulty in Justifying its presence in such rapidly growing health consciousness. People think that fast foods are harmful for health and are opting for more nutritious and healthy options (Han, 2008, p. 72). According to a report of World Health Organization, fast food items cause obesity in kids and can also cause cancer. Issues regarding health have become a major obstacle for the fast food business as a whole. Many customers have switched to the healthier offerings by fast restaurants such as Cuff’s mashed potatoes and Subways sandwiches.
In order to face the challenge McDonald’s has also come up with healthy dishes such as salad and other options in the menu card. Focus on Children McDonald’s always gives special attention to the children of every region it is working. The Happy Land of McDonald’s offers happy meals that also have a toy in the food box (Vaginal, 2001, p. 97). McDonald’s management has initiated computers with games that help the children to check their imagination power and help in boosting he brand. The reason why McDonald’s focus on children’s needs are: Children are the biggest customer group of the food chain.
Since, the beginning children like the atmosphere of McDonald’s. The cartoon characters and the colorful environment of McDonald’s tend more and more kids to become the potential consumers of McDonald’s products and services. To make McDonald’s a family brand it was important to give priority to children’s’ needs and wants. The rates of the kid’s meals are low but it tends the company to get greater benefit as the kids do not generally come alone to the restaurant. Generally, they are accompanied with their parents or some elder siblings.
By maintain brand loyalty with kids McDonald is can get fit into the today and tomorrow’s culture. This helps the brand to build the loyalty of the future generation as well. The concept of “happy children” can bring in the entire “happy families”. Marketing Concept in Today’s World Marketing concept is considered a relatively new philosophy of business management. However, the essence of the concept was emerged before the Industrial Revolution. The needs of the business changed with change of time (Gunrooms & Lie, 2014, p. 220). The philosophies of products and services became marketing philosophies and concepts.
Marketing Concept is regarded as the formula of operating an organization or doing a business. The relevance and need of marketing concept in today’s business world can be Judged by observing the rate of globalization among organizations. Today no organization can limits its sale to a single society; rather it needs a number of different help to compete the rivals. The organization in order to expand their business in different markets have to understand the needs of the customers as per their culture and social values. Otherwise, the company cannot achieve the desired goal.
It will also not be able to make its mark in the new market. For that, it has to gain the confidence of the consumers that will be gained by catering their needs and wants. Recommendations and Conclusion To sum up it can be said that is a company does not identify the client’s needs, reasons behind the shifting of customers’ interest and rapidly changing social trends; it will not be able to cope up with the market. Before adapting the marketing concept, McDonald’s was focusing on adding new outlets and witnessed 50% increase in the umber of restaurants within 5 years.
However, in 2003, the company decided to evolve its image and despite of increasing the number of restaurants tries to increase the sale in existing outlets. For that, it was needed that the customers get attracted to the brand. In order to attain profitable growth, build brand loyalty and encourage customer sot visit to the restaurants more often the organization has to give preference to the client’s needs and requirements. Management philosophies help in building beneficial relationships with customers. Marketing concept defines marketing as a method to determine the deeds of the customers and to enhance customers’ value.