5 Core Marketing Concepts of McDonald’s

McDonald’s (5 Core Customer and Marketplace Concepts)

McDonald’s is a well known multinational company expanding its fast food and real estate business all over the world. It was founded in 1940 as a restaurant, which was being operated by two brothers named “Richard” and “Maurice McDonald’s”. Later it started gaining popularity gradually, and they expanded their business in different cities and countries. And Now McDonald’s has more than 36000 outlets all over the world being the largest chain of fast food restaurants.

According to Statista, in 2021, McDonald’s Revenue reached 23.22 Billion US dollars. Which is only possible with good marketing strategy of Mcdonald’s, that we are going to discuss here. We’ll be discussing the 5 Core Customer and Marketplace concepts of McDonald’s.

• 1- Need, Wants, and Demand
• 2- Market Offerings
• 3- Value and Satisfaction
• 4- Exchange and Relationship
• 5- Markets

1- Needs, Wants, and Demand

To Understand these marketing concepts McDonald’s undertake the comprehensive analysis of the market and do the complete marketing audit.

Needs:

Food is the basic need of every human and the Company is fulfilling this need very well. And their “drive through” saves customers time providing convenience and safety as well.

Wants:

Customers want a calm and good environment to sit in with their friends and family and enjoy food and quality time with them. McDonald’s also keeps this aspect in consideration and provides best services to their customers who want to dine-in.

Demand:

Demand is affected by many factors like affordability, culture or religion. And it varies all across the world. Just like in India, McDonald’s outlets do not offer Beef and Pork, they are completely vegetarian. And In Muslim countries, they make sure the food is Halal. So they are fulfilling the demand of their customers very well.

2- Market Offering

McDonald’s Offer these products, services, & experiences:

• Cheeseburgers
• Hamburgers
• French Fries
• McChicken
• Desserts
• McCafe
• Play Spaces
• Free Wi-Fi
• McDelivery
• McDonald’s Gift Cards

Marketing Myopia:

The company is using the idea of marketing myopia to avoid any problem, like initially hamburger was the main item, but they don’t sell it in some countries (e.g India). They are focusing on their customers’ demand.  And the company would not have succeeded in countries such as India if it had identified itself as a hamburger firm.

3- Value and Satisfaction

McDonald’s makes sure its customer is satisfied and gets the expected value over a product or service. Their service is relatively more efficient and meets customers’ expectations.

• The Food is as delicious as expected
• Customers who are in hurry can avail “take-away” or “drive-through”
• Customers can order food online via McDelivery
• The restaurant provides a relaxed atmosphere with free Wi-Fi, so customers can check out their work while waiting for the food.

The marketing process depends on customers’ perceived value, if it is matching their expectations.

4- Exchanges and Relationship

McDonald’s has already built its brand image through its taste and exceptional services, which is helping it to strengthen its relationship with customers. The exchange relationship with customers is helping McDonald’s to generate recurring revenue from them, and in return customers are getting better services.

• MyMcDonald’s App giving personalized rewards to loyal customers.
• The Company is spending more on technology for better customer experience.

5- Markets

McDonalds’ target market is very broad (worldwide) which covers almost all age groups from kids to elders. But according to BusinessInsider’s report, the typical McDonald’s Customer is Gen X.

McDonald’s Market Segmentation:

Demographic:

• Age 10-70 Years Old
• Students, Professionals
• Male & Female Both
• Middle Income Families

Geographic:

• 120 Countries (Urban & Rural Areas)
• 37% Stores in United States
• Europe
• Asia
• Australia

McDonald’s Positioning:

• Brand Image
• Emotional Connection and Branding
• Good User Experience
• Hygienic Food

Targeting:

• 18-50 Age Group
• Students
• Professionals
• Fast Food Lovers

The first step in Marketing Process: 

McDonald’s develops its marketing strategy by understanding the marketplace and customers’ needs and wants. Which is only possible by keeping all these 5 core marketing concepts in consideration.