(PDF) Hospitality Marketing Essentials Assignment

Hospitality Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1. Key roles and responsibilities of marketing .........................................................................1
P2. Interrelationship of marketing function with other business functions................................1
LO2 .................................................................................................................................................2
P3. Comparison between ways in which enterprises uses marketing mix..................................2
LO3 .................................................................................................................................................5
P4. Market Plan (covered in power point)..................................................................................5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is a vital function in an organisation and it includes promotion, advertisement,
sales and deliver of goods from producers to customers. In hospitality industry, marketing plays
a major role by building relationships with customers. This report is based upon McDonald's
which is an American based fast food company which is one of the largest food chain and serves
in around 100 countries. (McDonalds, 2019)This report covers basic and significant roles and
responsibilities of the marketing function within McDonald's and the way in which marketing
helps other functional units to achieve better results. It also covers comparison between ways in
which marketing mix is applied by hospitality organisations to achieve various objectives of
businesses.
LO1
P1. Key roles and responsibilities of marketing
In an organisation, there are various roles and responsibilities which are performed by
marketing function. It helps the business in achieving its objectives by formulating effective
marketing plan and strategies and for achieving profits and maximising sales. In McDonald's,
marketing performs various roles and responsibilities which are elaborated as follows-
Market Research- It is an organised efforts of people to collect information regarding
target customers and market. This function helps in formulating an effective business strategy
that helps an enterprise in achieving its goals and objectives. McDonald's indulge itself in
appropriate market research for identifying customer's tastes and preferences and than produce
fast food accordingly (Baker and Magnini, 2016). For instance, because of market research, this
enterprise provides different flavours of burgers as per the demand of customers of various
countries.
Market Strategies- Another important role played by marketing function in wider
organisational context is that it helps in formulating various marketing strategies such as market
penetration, diversification, product and market development and so on. McDonald's uses
different strategies of marketing in order to stay in market for a long period of time. It keeps on
expanding its franchise by using market development strategy and right now it has around
37,855 franchises in the world.
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Product Development- It includes developing or introducing a product in target market as
per the demand and preferences of customers in the target market (Bowie and et. al., 2016). It
can be done in two manners, either by launching a brand new product or by adding certain
features to the existing product. McDonald's keeps on updating its products by adding on new
flavours as per the demand and needs of its target customers. It offers different products and
covers all categories of customers.
Promotion- Another important role which is played by marketing is to promote and
advertise company's products and services among customers. Promotion is a form of
communication that is utilised to provide information to customers about a particular good or
service. Basically, it helps the organisation in making customers aware about the existence of a
specific product in market. McDonald's uses various promotional measures in order to promote
its products among customers such as television, social media, hoardings, and so on.
Marketing Information System- It helps the organisation in providing necessary
information about certain factors such as controlling, planning and implementing marketing
strategies. For instance, it helps the company in depicting its data which is related to logistics
that is based upon real time and it also helps the company to distribute working network in a
proper manner. McDonald's uses it for acquiring necessary information about different factors
which can be uses for company's functioning.
Monitor Market Environment- Marketing function is not limited to organisational
context only but it has certain roles and responsibilities in context of marketing environment.
Marketing helps the business in monitoring the environment of marketing and than develop a
specific product or service accordingly (Dinçer and Alrawadieh, 2017). It helps the company to
become more responsive towards changing business environment such as changes in fashion,
trends, economical, social, political or any other factors. McDonald's always keeps an eye to its
changing marketing environment and develop products thereby.
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P2. Interrelationship of marketing function with other business functions
Marketing functions is a process which helps a company to enhance and identify
potential products for market in which company is operating giving them a competitive
advantage. All organisation needs to make effective operating plans to attain business objectives
with customers satisfaction (Dzhandzhugazova and et. al., 2016). Therefore when they are
developing plans coordination and cooperation of different functional units is important. These
interrelationship of marketing and other functional units of McDonald's and how they are
integrated with each other is seen below;
Marketing and Finance Department
Finance plays a vital role in business operations, so finance team make sure that all
business operations are taking place in their financial capabilities. Marketing staffs first concern
while conducting market research for studying McDonald's market is budget and therefore, they
stay in close touch with finance team to meet their needs for research. Budget is also important
aspect for promotion and distribution of products offered by McDonald's. These elements
connects finance and marketing team to see requirements and availability of adequate funds to
perform marketing activities (Tanford and Malek, 2015).
Marketing and Production Department
Production and marketing functions are interdependent, development and designing of
new products is based on market research which is role of marketing function to perform.
Marketing team of McDonald's will study market, gain knowledge of customers needs and
requirements and their willingness to pay (Han and Yoon, 2015). According to results acquired
by research conducted by marketing staff, production team analysis forces of demand and supply
to produce good to serve customers of McDonald's. Also they'll see if new innovative products
needs to be developed in relation with regular changing tastes and preferences of people. Food
quality and production can be done by keeping in mind given specification by customers and
satisfying their expectations.
HR and Marketing Department
Job of HR team is to fill organisation with skilled potential employees or workforce.
Marketing team require best staff to conduct research, introduce new product ideas, meet
production requirements of company and have creative sales team to sell existing and new
innovative products (Jolliffe, 2016). All these tasks are possible to take place effectively if HR

people hire best skilled staff for these jobs directly relating HR with marketing activities. Smooth
functioning in McDonald's operations and successful application of marketing strategies will
only be possible when their ground staff is effective. Those employees who serves to customers
have direct communication with them knowing exact expectations of consumer. If they are not
skilled enough to satisfy guests they are of no use to McDonald's also, affecting their business
and productivity.
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Customer Relations and Marketing Department
Marketing department is responsible for market study and understanding consumers
needs for research they use internal and external environment. Customer relations department is
a subset of marketing team. They on behalf of marketing team conduct surveys and take
feedbacks form customers which marketing team uses to develop new products and better
marketing plans. McDonald's marketing staff can use this type of information to improve its
existing products and to add innovative new products in its menu also sales strategies can be
benefited as well (Kotoua and Ilkan, 2017).
LO2
P3. Comparison between ways in which enterprises uses marketing mix
Marketing mix refers to the combination of all factors and forces that are under the
control of a company for influencing customers to buy its products and services. Each enterprise
uses this analysis to appropriately formulate marketing plan in order to achieve business goals
and objectives (Marketing Mix of McDonald's, 2018). Here, the comparison of McDonald's is
done with other large fast food chain named Subway which is also an American based restaurant
franchise that deals in selling sandwiches and salads.
Marketing Mix McDonald's Subway
Product This organisation deals with
food and beverages products
and has various product lines
hamburgers, sandwiches,
salads, beverages, snacks,
desserts, shakes, Mc Café, and
so on (Li, Wang and Yu,
2015).
This fast food giant serves
various range of products such
as sandwiches, meals, desserts,
beverages, giant subs, muffins,
and so on.
Price This organisation offers its
products by using two pricing
strategies which are bundle
and psychological. In bundle
pricing strategy, it offers meals
Subway uses differential
pricing strategy for pricing its
products which is higher than
its competitors. This strategy
is based upon value generation
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and other products at discount
rate and in psychological, it
offers its products at
affordable prices.
(Ladeira and et. al., 2016).
Place It has around 37,855
restaurants worldwide and
serves its products in around
100 countries which are
United Kingdom, Canada,
Japan, Germany, Netherlands,
France, Sweden, Hong Kong,
Austria, Belgium, and so on.
This enterprise serves its
products through franchise and
is one of the fastest growing
franchise in the world. It has
more than 44,000 franchise in
the world and operates in
around 112 countries such as
Brazil, United Kingdom,
Australia, Mexico, India, and
so on (Sheresheva and
Kopiski, 2016).
Promotion For the purpose of promoting
its products in the target
market, the most common
measure used by this
enterprise is television
advertisement. In its
advertisement, it informs
customers about the discount
and offers that it is offering for
its various products. It uses
slogan of 'I am loving it' in its
advertisement which has
attracted large number of
customers. The other
promotional techniques used
It uses various promotional
measures to promote its
products among customers
such as it uses public relations,
sales promotions, television
media, social media, and so on
for promoting its products in
the target market. In its
advertisement it uses slogan of
“eat fresh” to promote high
quality and freshness of its
products.
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by it are radio, social media,
print media and other online
promotional measures
(Lordkipanidze, 2018).
People It has its employees that treat
and greet customers with
respect. These workers has a
dress code which they follow.
Each outlet of McDonald's has
a manager that manages and is
responsible for its daily routine
activities and proceedings.
It has talented and quality staff
that always treat its customers
with a smile. Its chefs are
responsible for its unique taste
which is loved by customers.
Process It uses sophisticated equipment
that is used for the purpose of
processing food, its packaging,
distribution, and so on. It
makes its products available to
customers by providing them
door step delivery. It has a
mobile application and website
which allows customers to
order online and after they
place their order, it provides
them fast food delivery service
(Oskam and Boswijk, 2016).
Subway offers high quality
service to its customers and
customers can easily grab its
tasty meal by simply going
into its outlet (Martínez,
2015). Moreover, it also offers
home delivery service to its
consumers by allowing them
to order online and by offering
online payment option.
Physical Evidence McDonald's has a friendly,
clean, and hygienic
environment. Moreover,
helpful workers also act as its
physical evidence. It also has a
It has well maintained workers
which can act as its physical
evidence. Moreover, its
attractive ambience is eye
catching for customers (Pike,
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recognizable yellow 'M' logo
which represents brand image
of this company.
2015).
LO3
P4. Market Plan (covered in power point)
CONCLUSION
From the above report, it has been concluded that marketing is an vital function for each
enterprise and performs various roles and responsibilities. It helps the organisation by making
people aware about the products and services. In addition, it has also been concluded that
interrelation between marketing and other departments that helps in smooth running of a
business. Further, it includes that for formulating an effective marketing strategy, it is important
for an enterprise to appropriately use marketing mix.
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REFERENCES
Books & Journals
Baker, M. A. and Magnini, V. P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
Dinçer, M. Z. and Alrawadieh, Z., 2017. Negative word of mouse in the hotel industry: A
content analysis of online reviews on luxury hotels in Jordan. Journal of Hospitality
Marketing & Management. 26(8). pp.785-804.
Dzhandzhugazova, E. A. and et. al., 2016. Innovations in hospitality industry. International
Journal of Environmental and Science Education. 11(17). pp.10387-10400.
Han, H. and Yoon, H. J., 2015. Hotel customers’ environmentally responsible behavioral
intention: Impact of key constructs on decision in green consumerism. International
Journal of Hospitality Management. 45. pp.22-33.
Jolliffe, L., 2016. Marketing culinary tourism experiences. In The handbook of managing and
marketing tourism experiences (pp. 363-378). Emerald Group Publishing Limited.
Kotoua, S. and Ilkan, M., 2017. Tourism destination marketing and information technology in
Ghana. Journal of destination marketing & management. 6(2). pp.127-135.
Li, X.,Wang, Y. and Yu, Y., 2015. Present and future hotel website marketing activities: Change
propensity analysis. International Journal of Hospitality Management. 47. pp.131-139.
Ladeira, W. J. and et. al., 2016. A meta-analysis of the antecedents and consequences of
satisfaction in tourism and hospitality. Journal of Hospitality Marketing &
Management. 25(8). pp.975-1009.
Lordkipanidze, R., 2018. The Strongest Key to Global Hospitality.
Martínez, P., 2015. Customer loyalty: exploring its antecedents from a green marketing
perspective. International Journal of Contemporary Hospitality Management. 27(5).
pp.896-917.
Oskam, J. and Boswijk, A., 2016. Airbnb: the future of networked hospitality
businesses. Journal of Tourism Futures. 2(1). pp.22-42.
Pike, S., 2015. Destination marketing: essentials. Routledge.
Sheresheva, M. and Kopiski, J., 2016. The main trends, challenges and success factors in the
Russian hospitality and tourism market. Worldwide hospitality and tourism
themes. 8(3). pp.260-272.
Tanford, S. and Malek, K., 2015. Segmentation of reward program members to increase
customer loyalty: The role of attitudes towards green hotel practices. Journal of
Hospitality Marketing & Management. 24(3). pp.314-343.
Online
McDonalds. 2019. [Online]. Available Through: <https://www.mcdonalds.com/us/en-us.html>
Marketing Mix of McDonald's. 2018. [Online]. Available Through:
<https://www.marketing91.com/marketing-mix-mcdonalds/>
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