b1

 b2

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McDonald’s has
adopted different approaches to the marketing mix in all franchises all over the
world, however it depends on their localization and globalisation strategy used,
products such as burgers, sandwiches , fries and drinks (Coca-Cola, Fanta) tend
to always be included in McDonald’s menu this is a standard approach. But when it
comes to other countries such as Asia where customs and laws are quite sensitive
then it requires a localised approach. After analysing McDonald’s international
marketing mix, McDonald’s has been able to become “glocal” combining both internalization
and globalization due to adding  “think global
act local” theory to every factor of the marketing mix. Organisations should be
striving to take advantages of all possible strategies so both adaptation and standardization,
this way businesses will be able to enjoy the benefits that come with standardization
for example economies of scale, we enjoying benefits that come with adaption so
addressing unique needs of local consumers and responding to local changes in the
market.

1.7

The place is
where the consumer receives the end product or service also the place is not only
the physical location but the process and management involved in bringing the customer
the end product. In china there are rules and regulation which restrict choosing
certain outlets to operate in.

In regards to
pricing McDonald’s, there are a variety of possible pricing strategies that could
be used in different countries, According to (McDonald’s UK, 2012 ) the most important
determinant of the price charged is based on the customers perception of value,
every customer has their own idea of how much a product is worth, McDonald’s had
to think about the brand and the integrity it has otherwise they may risk reducing
the profit margin without increasing sales. In China for example price is setup
is quite higher compared to other fast food outlets, they don’t have a price segmentation
(McDonalds CN, 2017) Whereas in Indian franchisees, they have implemented pricing
strategies to suit the different market segments (McDonalds India, 2017)

Businesses
use these depending on the budget they have or the marketing strategy their
using. This is one of the most interesting aspects of McDonalds because even
though they should promote its global image but they also focus on local and
community goals McDonald’s as a big brand convey one main image however can
still meet the needs of different cultures and personalities. McDonald’s standardizes
the brand name and localise advertising campaigns for example in Philippines , McDonald’s
had a advertising campaign in Manila, a video was released last year which starred
a well known Filipino actress called Elisse  Joson, which helped to promote change in the country,
McDonald’s decided create a sequel and telling the story from a different perspective
and adding an exciting twist (AboboMagazine, 2017)  the AD became a hit on social media #TuloyPaRin,
many viewers said that they could relate to the characters in the AD, the Ad was
based on ex- boyfriends perspective of a break up set in a McDonald’s restaurant,
Just like the characters in the add McDonald’s would like to touch the hearts of
thousands of their Filipino” that no matter what they have experienced in past all
is well” especially if they have a ” Burger McDo or a Crispy Chicken Sandwich” in
their hands.

–         
Sales
promotions

–         
Direct
marketing

–         
Personal
selling

–         
Public
relations & sponsorship

–         
Advertising

Main Methods
are:

Another
component of the marketing mix which is a driving force is promotion, it’s all
about communication with potential and existing consumers and its not only
about advertising apart from that there are other ways in which a business can get
their message across to consumers.(WordPress, 2014)

McDonalds is
a common example of a big brand tailoring for a specific market and using brand
adaptation on its products in regards to religious views and beliefs that
potential consumers may have for, example, McDonald’s in India have a popular
dish called ” Maharaja Mac rather then the classic beef-based Big Mac. (Telegraph, 2015) which has matches the
needs of the Indian people , Because India comprised of Hindus, who don’t eat
beef, Jains don’t eat meat of any kind and finally Muslims don’t eat meat. Hence
why if McDonald’s decided to ignore these factors it would be arrogant of them  to assume that everting works  in different parts of the world however they
didn’t, this proves their sensitivity to other cultures in the way in which
integrated itself, as a brand, product and servicesb2 .

The
marketing- mix which is also known as the 4 Ps, which was originally proposed
by E. Jerome McCarthy provides businesses with a framework for marketing
decision making, its one of the most widely accepted frameworks in marketing ( Wikipedia, 2017). Thus, using the
stated framework thoroughly, aids in analysing and understanding the market
your currently or potential willing to conquer ( Marketing 91, 2017 ) One of the main aspects of McDonald’s marketing
mix is “Product”. McDonalds understands the importance of creating a standardized
set of products, which still have the same generic taste in every country and
state which McDonald’s has a restaurant, The success of McDonald’s thus far
applying this strategy and also the ability to maintain and adapt to
environmental conditions. The term or phrase “Think global, act local ”  connotes the importance of considering
environmental challenges and that individuals should take actions into their
own communities and towns  (Wikipedia, 2017)
however it now has a wider meaning nowadays in regards to how businesses do
business, consumers have local tastes and preferences hence why the supply
chain needs to act locally to understand and meet those needs.

1.6

McDonald’s core
menu items that are standardized globally are: Big Mac, Cheeseburger, Fries and
McNuggets. The adaption of the menu reflects the different tastes and tradition
for every country in which McDonald’s is situated in, McDonald’s clearly
reflect respect for different cultures hence why every country has its own
policies and developing menu items, In India for example, they do not sell beef,
even though its part of the core menu, so that had to be adapted and so the
core menu items sold in India, are different in comparison to the rest of the
world. ( What makes McDonald’s, 2017)

When a
corporation wants to become a global powerhouse, there are challenging
decisions in regards to standardization or adaption of its operations. Both
standardization and adaption are major players which affect all departments
within the business such as the marketing mix, organizational structure, and
finance. The main reason why a company may choose to standardize or adapt operations
within the business depends on the companies attitude to different culture. (marketingphilosopher101, 2017)
Adaptation this is when the firm modifies one more element of its international
marketing program to accommodate specific customer requirements in a market. Standardisation
is achieving maximum productivity through standardisation of products and
services, service design and delivery which then helps to achieve global
economy of scale (Lee and Carter, 2012).
The standardised marketing approach is most appropriate when similar market
segments exist across countries, customers seek similar features in products
and services hence why businesses identify ways in which products could have a
universal specification. Customers have a converging expectation and need regarding
specific quality and performance of that product and service. 

1.5

Globalisation
refers to the integration of markets, economies, industries, and policy-making
around the world, this also describes the process of economies, societies and
cultures have integrated through the global network of trade communication.
Migration immigration and transportation
( Lexicon.ft.com,
2017). Globalisation is currently
redefining the way companies do business. Globalisation has created a
borderless society, due to the changes globally a common example is the free
movement of services and goods and information across. A company which has done
this successfully is Starbucks, the global expansion of Starbucks from a small
shop in Seattle, Washington in 1980s to a globalised brand, by the 90s the
brand had grown to 400 stores in the US, since then Starbucks has become a global
icon over 50,000 in over 50 countries. Starbucks has become a powerful globalized
force which has turned enjoying a cup of coffee into a fashionable lifestyle
that has been perpetuated all over the world. However like any corporation
wanting to become a global powerhouse challenges may become to arise. (Ghauri & Cateora, 2015)

1.4

In order for
a businesses to successfully internationalise, they must analyze the opportunities
in the market so all the fulfilled and unfulfilled needs which haven’t been met
by potential competitors, and then create a product and service that will satisfy
all the unidentified needs and wants of the potential consumer. Once the business
identifies potential opportunities, then they have to select a target market to
sell their products and services to. They need to identify the key benefits of products
and services they want to offer to that selected target market and what differentiates
them from the competition. Above all the business needs to adopt an appropriate
business and marketing strategies, businesses tend to fail due to not properly implementing
their well-designed marketing plans. (www.zainbooks.com,
2015)

1.3

Kotler has seen
marketing as always changing and evolving and his book ( Marketing Management,
1967) which has many editions it includes ” Rigorous analysis and mathematical
methodology to practice marketing” ( The Economist, 2017) it has influenced almost
four decades. Both Levitt and Kotler have lifted marketing out of where is has
been residing in, changing it from just sales to being seen as a strategic
function in its own right.

– Five
product levels

–  Marketing as a process of exchange and
communication

– Focusing
on customer needs

– Marketing
is the core business Function

In 1983,
Theodore Levitt published a Harvard Business Review article named “The
Globalisation of Markets”, Levitt has been credited for inventing the term
“Globalisation” even though many argued that the term had been used before such
as the New York Times mentioned this “as early as 1944” (New York Times, 2006)
however it was Levitt who made the term popular. Certain statements made in the
review changed the way certain businesses operate nearly a century later  “Gone are accustomed differences in national
or regional preferences” (Levitt, 1983) which at one point indirectly allowed
companies like Coca-Cola and McDonalds to sell standard identical products worldwide
 ( The Economist, 2009) However a few
individuals disagreed with this including Kotler. Kotler recognised the value
of Levitt’s view but argued that organisations should not ignore local and cultural
differences within the business environment, he agrees on local and global
marketing the term is known as “glocal” An example of this is McDonald’s, they
produce local dishes in addition to the universal products and services sold
elsewhere. (Management Pocketbooks, 2015). The four ideas which Kotler
suggested areb1 :

1.2

Throughout
the years we’ve seen a number of businesses taking they’re products and services
global and successfully doing this in international markets which can raise
many challenges. Many multinational companies have made drastic costly errors trying
to reach out to a global target market, however, the current fast moving
technological advances means that certain barriers such as geographical barriers;
physical distance from services and facilities and cultural communication barriers;
gender differences, prejudices, status difference (Czinkota
and rarr, 2017)
. All these factors are
disappearing now small businesses are able to sell products internationally without
physical presence in other countries (Marketing-schools.org, 2012)  

Both Ohmae (1989) and Levitt (1983) have suggested that the world is becoming more borderless,
 with the individual preferences of
consumers in a particular country being less important than the availability of
globally standardized products sold at competitive prices. Hence why the
purpose of this assignment, is to use international marketing theories and
companies as examples in order to critically evaluate the proposition that the
world is becoming borderless. International marketing is the performance of
business activities that direct the flow of a companies goods or services to
consumers or users in more than one nation for a profit ( Ghauri & Cateora, 2015) Western Europe have adopted their
branding account for differences in consumers demographics and world markets.
An example of companies who have done this very well includes: Coca-Cola who
discovered the word “Diet” carries negative connotations in Latin America and
changed the name to “Coke Lite”. UPS which is known for their brown fleet
trucks started using a different colored fleet truck after learning that their
flagship brown trucks resembled Spanish hearse.

1.1