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The report is a detailed discussion through which an organization like Mc Donald’s can achieve success and beat the other companies to stay in the Apex in this competitive world of marketing, the article is divided into subtopics starting with the introduction where the organization has been introduced, then the parameters have been discussed, with the help of these parameters the McDonald’s organization has been measured up. The first one is service quality where it is defined first than there is a detailed discussion of it and than the second topic is customer relationship marketing through which the McDonald’s keeps the track of its customer and then the managing people has been discussed in detail and the last parameter is service communications through which the organization conveys information to the customers. Then the recommendation is given and lastly, the report ends with a conclusion. This report gives out reasons why McDonald’s has been on the top of the fast-food chain.
McDonald’s came into existence in this world of marketing during the1940s it was opened by Maurice McDonald and Richard McDonald in California almost 77 years ago, McDonald’s went corporate in the year of 1955. Mc Donalds has around 37000 outlets by 2016 They mainly sell burgers fries and soft beverages. The report focuses on the four service management excellence through which McDonald’s has to go through before an outlet can associate itself with the brand. Service quality Gronroos(2010) says that everyone has an expectation whenever they visit an organization for the service they will get. Service quality is a tool for measuring how well an organization delivery service with the comparison of customer or guest presumption.
Service quality is a measure between guest expectations and service that they get from the organization. The author speaks that there are five approaches to define service quality. The first one is the transcendent approach, the product based approach, the user based approach, the manufacturing based approach and lastly value-based approach. Lovelock et al (2010) say that Trandescent approach generally deals with a metaphysical aspect of quality. It cannot be defined properly but can only be achieved through experience another word transcendent approach of service quality depends upon the experience of people. The author speaks that the product-based approach says that service quality can be measured by the characteristic of the product that an organization sells. The user-based approach looks after the properness of the product for use. Manufacturing based approach define quality as the degree to which set of a characteristic of the quality fulfills the requirement. The value-based service quality is creating sustainable service based on use for customer and people getting that service. Service quality is always important with respect to the service excellence.
According to Porter M.E (1985) the most important to a factor which will help the organization to stay ahead in the competition, product differentiation and cost leadership. The author has observed that throughout the past years the quality has increased and improved a lot in this world of competition. According to Easton, G.S & Jarell, S.L (1998) service quality also helps in increasing corporate performance rituals to expand in the market and also gives an advantage in this competition. According to market share and profitability acts as a bridge between quality and benefit Hence quality is the backbone of a well-known organization.
Managing Quality Gronroos(2010) talks about quality issues which cannot be fixed the short period of time but customer who has concern regarding the quality of the product manufactured by the organization then it should be resolved as soon as possible, if not done on time the customers will be dissatisfied with the organization and your organization would lose valuable customer. The author also says that Service quality gap model is an important model through which an organization can understand customer comfort from the service they are providing all the products they are selling. According to the author, there are major 5 gaps in the service quality that are needed to be managed by the organization to stay ahead in this competitive market. The first gap is the gap between the customer’s expected service providers management of that perception, gap number two is the management of perception of the organization and transforming that perception into service quality, the number 3 transition of perception into service quality and Service Delivery, the fourth gap is between service delivery and external communication, and the last gap the fifth one is perceived service and expected service. The author has also given a few ways to bridge the gap.
Quality assurance- means that the checking of standards of service during the service delivery process so that the standard of service or product is maintained by the organization while they interact with the customers. The best way to assure it is to get approval from a reputed company such. (Wright 2001) Total quality management- very commonly known as TQM. To see whether the process which is existing right now in the organization is under control the statistical process control is the best way to learn that. This system gives a feedback on the service live, then and there. Inspection and Control-according to Payne and Frow(2001) Inspection and rectifying is the best way to improve service quality. Services are provided by the humans hence the mistake is inevitable, but reacting on that mistake is what makes the service a better in quality and improving on it will help the organization to provide the customers a better service.
Petrakas, (2015)says that McDonald’s is a benchmark when it comes to service in the fast-food chains, this is because they have applied the procedures that have been mentioned or discussed above some way or the other in the various outlets spread across the world. They have connected systems through which they monitor the operations of each and every outlet and maintains an uniformity in their service throughout the world with minor adaptations to the local regions. A very good example is Mc Donald’sIndia which has a veg burger which they had to adapt to their menu as most people in India are Vegetarian. The menu might change a little bit but the service delivery process of Mc Donald’s is same all across the world.
Customer relationship marketing Zeithaml et al (2008) say that relationship marketing is the way of doing business by maintaining a very good contact between the organization’s existing customers and new customers who join to the organization in the recent times. This provides the customers a feeling of belongingness towards the organization. Zeithaml et al (2008) say that organization income through customers hence to bring customer I into the shop it is a very difficult task for the organization. T the toughest task of an organization is To earn the trust of the customer, hence once the customer is loyal to a particular brand the brand should be loyal to them and provide them with benefits so that they stay stuck to the brands of the organization.
According to to Kandampully, (2006) customer retention can be increased with the help of CRM by having a good relationship between the guest and the organization. Woodruffe (1997) says that any organization is considered to be successful when a brand becomes a daily object meaning the product is known as its brand name. A very good example is the brand Xerox which is a brand making photocopy machine it became so popular let people talk to the word photocopying and started a word using Xerox. To get to this kind of position organization should be attentive towards the customer and always look after there needs. The organization should be able to provide the customers with solutions to any problem they face. There’s always the question why should an organization retain their customers.
Parasuram et Al(1985) say that customer retention is very important as it helps an organization get a steady flow of revenue. In today’s market feedback is very important for any organization hands when an organization old customers who are loyal to their brand they can get more and more positive feedback which helps the new customer to trust on the organization. As the customers are old and loyal to the company the company can do experimentation and launch products on the market. The author also says that maintaining old customers is way cheaper than making new customers as it means more and more investment in the market. According to love locket Al (2010), a very good way of customer relationship marketing is customer Loyalty program in which an organization shows their part of loyalty to the customers who are loyal to them. There are 4reasons why customer loyalty should be promoted 1 psychological reason 2Economic reason 3 technical or functional reason four contractual reasons. Psychological Customers my developer loyalty towards an organization just because of a single person who is working in that company and they have a been able to gain the trust of that customer a very good example the family doctor or a Bank advisor. This totally depends on the psychology of the guest or customer.
Economic In business markets, customer loyalty is economical and helps a brand to grow in this competitive market. If an organization has to grow to get new customers each and every day they would have to invest more money and time to earn their trust. Technical/ functional These days people are getting more Advanced day by day hence an organization needs to adopt this change and embrace it so that they can reach to the people through this method.
Contractual The customer is made bound to be loyal to a company by legal documents for certain period of time, this is done so that the customer get accustomed with the organization and later on sticks to the organization. Customer feedback Shanker (2010) explains that the customer is the best employee to improve any organization from its current status. Customer feedback can be taken in many forms such as written feedback, direct feedback etc. The customers help to point out the mistakes that an organization has been doing and help to improve them to serve them better. Singh and Tariyal,(2015) said that McDonald’s is very good in relationship marketing they have one of the best customer retention method they have kids menu with toys and games to play, they have happy hours where the customers can have their favorite burgers for less price, they have home delivery systems and also have food pickup and drive-thru facility, they interact with the guests and take their feedbacks and also study the market and launch product according to it.
Lovelock et Al (2010) say that People are the person who is working in the organizations in other words employees are the people, they are skilled enough to be the part of the organization but still, they require to harness their skills so that they can cope up with the changing world. According to the author’s employees are the face of the organization hence they should be taught to carry themselves according to the organization’s rules as they are the one interacting with the people. The people need to be trained properly so that they can carry themselves well and shine the organization’s name. They interact with the people hence they should be well trained and educated enough. To get the best employee from the crowd Woodruff(1995)says that the organization requires to follow the same procedure of that through which they can attract the customers. The realization requirement stage than the hiring process starts and then the training process starts. Training is a vital part for an employee as it helps them to harness their skills and develop themselves in this process they are also helping the organization to grow and stay ahead in the competition.
Micromanaging means giving the employees the power to take responsibility. This motivates the employees and a motivated staff helps the organization to achieve success. The McDonald’s train their staff well and uses it’s resources well, they have well defined Standard Operating Procedures and they teach it to their employees, the employees are well-motivated people and represent the McDonald’s in a good way and is always happy to help. (Jargon 2016) According to Morris B(1999) the other name for Service communication can be marketing Communications this is a tool or combination of the tool through which an organization communicates with the customers who are already a part of their organization or the targeted customers.
Marketing Communications are the marketing mix which is basically made up of 4P’s price, promotion, place, and product. The author also says that the most important one is the promotion of this topic. The promotional mix can be described as the method by which an organization informs the customer about its product and services it provides. There are a few ways of service communications such as Advertisement can also be said as paid presentation through mass media such as televisions, radios, billboards, print ads, banners etc as the technology that one thing nowadays there are apps also which helps in Service communication. Personal selling is also a process by which an organization promotes itself where a person or a salesman approaches any customer and speak directly to them about the product of the service. Morris (1999) also says that Direct marketing is a method by which your organization reaches to consumers through websites catalog distribution promotional letters and outdoor advertising. Another way an organization and convey its message that the organization is good through goodwill in which the existing customers talks about the products and services of the organization to a new customer and explains him the benefits provided by that organization hence through this process an organization reaches to a new person.
McDonald’s has A grade service communication process through which it connects to it targeted customers, it uses mass communication such as Televisions a lot to promote its product, they also make miles stones claiming the distance and a McDonalds outlet out there, they have big banners of Mc Donald’s, then they keep placards on the table through which they can inform their customers with information. McDonalds has stringent standards due to which it ensures consistency among all outlets that are under the McDonald’s but there is an issue of flexibility amongst the McDonald’s in other countries and as they have such consistency in them that their product has not degraded over time but now lacks behind the competition as other companies are now developing each and every day. Mc Donald’s has come up with lot of good things such as happy meal where they target towards the kids who fall for the toys that they give with each food, they brought happy hours and combos to bring down the prices so that the students and teenagers can also have or enjoy their food but in overall they don’t have variety in their food menu.
The employees should be trained continuously so that they can cope up with the developing competition. (Jargon,2016) It could be concluded that McDonald’s is one of the most successful fast food chains which went up the ladder very quickly and is on top of the rank in the fast-food chain competition due to its service quality, good customer relationship marketing, good employee training and good Communications between the organization and customer.
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