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Lesson #5: Effective Marketing Makes All The Difference

Article Overview: “We're not in the hamburger business,” said Kroc. “We're in show business.” Kroc understood that it was all in the message; the success of McDonald’s was going to be based on how the company was perceived by the public. Thus, Kroc spent much time and effort developing an effective marketing plan.

Lesson #5: Effective Marketing Makes All The Difference

“We're not in the hamburger business,” said Kroc. “We're in show business.” Kroc understood that it was all in the message; the success of McDonald’s was going to be based on how the company was perceived by the public. Thus, Kroc spent much time and effort developing an effective marketing plan.

First and foremost, Kroc decided to focus on marketing at the local level. It was by thinking big, but acting small that Kroc was able to expand the chain into a global powerhouse. In the eyes of Kroc, each McDonald’s that he helped erect was a local business and also part of a local community. Thus, each franchise had to be marketed and tailored to its unique needs and those of its surroundings.

In order to do this effectively, Kroc focused on marketing within the four walls of each unique store. By insisting that his franchise operators lived in the communities where they worked, Kroc was ensuring that they would be better equipped to understand the unique dynamics of their locations. This principle of neighbourhood marketing became one of the keys to the entire system.
Much like Kroc had encouraged suggestions from his staff in a bottom-up manner, he also recognized that marketing had to be executed in a bottom-up strategy. Kroc understood that it was in each unique neighbourhood franchise that the retail war would be won or lost. Thus, while each McDonald’s outlet kept the basic standards in terms of “QSC” (quality, service and cleanliness), marketing needs were tailored to each.

Kroc devoted a large part of the McDonald’s budget towards hiring regional advertising agencies. He believed having these local representatives who could work “on the ground” would help ensure that even as the company’s national stature and spending continued to grow, it could retain its overall localized system. These field executives would organize grand openings, birthday clubs and also help initiate a wide range of community programs.

Community involvement was extremely important from Kroc’s point of view, but not simply for altruistic purposes. Kroc was an astute businessman who understood that community involvement was a key part of an effective marketing strategy. Contributing to the local neighbourhoods in which McDonald’s restaurants were located would improve public attitudes towards the expanding chain.
This tradition of giving back that Kroc initiated so many years ago remains an integral part of the McDonald’s corporate philosophy. From Hurricane Katrina and the Tsunami in South East Asia, to the Florida Hurricane and Camp Mickey D’s in San Antonio, Texas, McDonald’s continues to build its community presence.

As the company carries on its expansion process today, it is increasingly embracing new forms of marketing and promotion. From celebrity endorsements to sports alliances, McDonald’s is making strategic moves into the worlds of music, fashion, sports and entertainment. And, while it undoubtedly has a national marketing presence, McDonald’s has not lost sight of Kroc’s original goals of creating predictable but unique restaurants, custom tailored to each individual neighbourhood.

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Article Tags: advertising agencies, birthday clubs, cleanliness, effective marketing, entire system, four walls, franchise operators, global powerhouse, grand openings, local community, marketing plan, mcdonalds, national stature, neighbourhood, principle, quality service, regional advertising, show business, surroundings, unique store



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