Ray Kroc

Ray Kroc
In order for McDonald’s to reach its goal of “par excellence”, it must
use the full meaning and definition of marketing. Marketing is giving the target
market what they want, when and where they want it, at a price they are willing
to pay for it.

For McDonald’s to achieve its “par excellence”, they must focus on the
fact that there is an ever changing market and that the wants and needs of
consumers are constantly changing. Since McDonald’s has been around for forty-
one years, it is safe to say that they are the father of the fast food industry
and that they have set an example for others to follow.

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When Ray Kroc bought the first McDonald’s in 1955, he focused on what
people wanted. With this focus came the utilization of Mr. Kroc’s theory of QSC
( quality, service, and cleanliness ).

QSC successfully got McDonald’s off the ground, but as times changed,
the company saw many more market segments and opportunities. In the 1970’s and
1980’s once again McDonald’s lead the way in the fast food industry. The changes
we saw included, for example, the fact that women were now a major part of the
work force and dual income families were becoming a more common occurrence.

McDonald’s became a mastermind of marketing toward specific markets by
pioneering ideas such as breakfast menus, healthier choices and alternatives,
and “adult” foods. McDonald’s has truly evolved into a world power by paying
attention to the needs and wants of the changing market and adjusting to these

Ray Kroc saw early on what needed to be done. He changed what was at one
time a product orientation, into a marketing orientation. Back in 1955, this was
still a new type of management. From the beginning, Kroc was already in the
forefront of marketing.

Marketing orientation focuses on the customer and what they want in a
product, rather than product orientation which focuses on the product itself.

McDonald’s has taken every aspect of marketing orientation and utilized the
philosophy to its fullest. McDonald’s has focused in on the customer needs and
wants, sometimes even putting the ideas into the consumer’s mind before they
even knew what they wanted or expected. McDonald’s could deliver! They have done
extensive market analysis and product development based on this analysis. They
have packaged their food and priced it exactly to the market segment which they
have targeted.

Showing McDonald’s innovations in marketing even further, is its early
adaptation of societal marketing. Societal marketing takes into account the
overall concerns of the target market, the environment, for example. McDonald’s
got rid of their one time innovative styrofoam packaging and replaced it with
more environmentally sound paper packaging. They stress the fact that they are
environmentally aware, by reminding us not to litter, etc., on their various
forms of packaging. Another example if societal marketing is the Ronald
McDonald House. This is probably McDonald’s largest community service project.

It demonstrates the way that McDonald’s is willing to give something back to the
very communities that support the company. These examples as well as the various
events that McDonald’s promotes, such as the Olympic Games, puts their name
worldwide. This makes it difficult for us ever to forget of the existence of

McDonald’s also uses a theory referred to as relationship marketing.

Relationship marketing is defined as marketing to protect the customer base. The
customer is viewed as an asset and the company’s marketing goal is to attract,
maintain, and enhance customer relationships.

There are five main criteria that must be met for a successful
relationship marketing strategy and they are as follows :
1) There needs to be an ongoing and periodic desire for the product or
service by the customer.

2) The service customer controls the selection of the service supplier.

3) There are alternative suppliers of the service.

4) Customer loyalty is weak and switching is common and easy.

5) Word of mouth is an especially potent form of communication about
the product.

All of these criteria are met by the fast food industry, and McDonald’s has
generally had a very successful relationship marketing strategy, especially
through the implementation of the QSC program.

McDonald’s has definitely exceeded the definition of success. How many
other businesses can say they have served billions and billions? McDonald’s has
done an incredible job taking an intangible product and virtually dissipating
any perception of risk associated with service products. Whether someone orders
a burger, McNuggets, or a fish fillet, they know that their


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