The Global Marketplace and McDonalds

Bus 306-02 Principles of MarketingTanja Kuehni

Elisa LokmagozianAndrew Mirto

Erik Sharp

AgendaWhat is global marketingGlobal marketing environmentDeciding to go globalDeciding on the market and how to enter Global marketing program and

McDonaldsGlobal marketing organizationWhat we learned

What is Global Marketing

Global firms:◦Operate in over 100

countries

Global firms ask the questions

http://globalebrands.com/mcdonalds-winning-at-global-marketing-strategies/

Looking at the Global Marketing Environment

International trade system◦ Tariffs, Quotas,

Exchange Controls etc.

The economic environment◦ Industrial Structure◦ Income Distribution

http://www.globalresearch.ca/the-globalization-of-fast-food-behind-the-brand-mcdonald-s

Looking at the Global Marketing Environment

The political-legal environment◦Differ country to country

The cultural environment◦Understand cultural traditions, behavior, and

religion

Deciding Whether to Go Global

Risks:◦ Language◦ Laws and politics

Reasons to go global◦Global competition◦Customers demand◦Growth opportunitieshttp://2012books.lardbucket.org/books/modern-management-

of-small-businesses/s19-going-global-yes-or-no.html

Deciding Which Markets to EnterInternational marketing objectives and

policiesRank potential markets based on:◦Market size◦Cost of doing business◦Competitive advantage

Decide which markets offer greatest long-run return on investment

Deciding How to Enter the Market

Export◦ Indirect◦Direct

Joint Venturing◦ Licensing◦Contract

manufacturing◦Management

contracting◦ Joint ownership

http://www.extendedthinking.com/services/new-market-development/

Deciding How to Enter the Market

Direct investment◦ Foreign – Based

assembly or manufacturing facilities

Deciding on the Global Marketing Program

Adapt or standardize?Recognizing cultural differencesFind the right balance

Deciding on The Global Marketing Program

McDonalds Products

International marketing◦ Involves recognizing

different needs Different menus catering

to the communitieshttp://sixthseal.com/2012/06/only-in-germany-beer-and-bubble-tea-at-mcdonalds/

McDonalds and Promotion

Promotion◦McDonalds keeps all

of the famous items world wide

◦ “Everything is affordable, portable, great-tasting, and distinctly McDonalds”http://www.valetmag.com/the-edit/current-affairs/092109.php

McDonalds Promotion Ad

McDonalds and Promotion

International promotion◦Culturally sensitive◦ Local food trends◦Distinctly McDonalds

http://www.burgerbusiness.com/?p=11939

McDonalds and Price

Adapt to local currencies and income levels◦Big Mac Switzerland:

CHF 6.50 ($7.13)◦Big Mac US: $4.20

(on average)http://marketingchristianbooks.wordpress.com/2012/01/02/ebook-price-trends/

McDonalds and Distribution

International distribution◦ Supported by

franchisees, the corporation, and affiliates

Deciding on the Global Marketing Organization

Recommended organization according to global size:

◦Export department◦International divisions◦Global organizations

What We Learned

References http://www.aboutmcdonalds.com/mcd/our_company/

mcdonalds_system/what_we_do.html http://www.businessdictionary.com/definition/market-

segmentation.html http://www.aboutmcdonalds.com/mcd/our_company.html http://www.aboutmcdonalds.com/mcd/our_company/

amazing_stories/food/catering_to_local_tastes.html http://en.reingex.com/Master-Executive-Global-

Marketing.shtml http://florentflora.wordpress.com/tag/books/ http://www.oddee.com/contrib_6695.aspx http://www.mcohio.com/24831 http://www.kingstonchamber.com/content/ronald-mcdonald