Marketing Strategy for McDonald's

The given report is about a marketing strategy for McDonald's, covering various aspects such as market research, segmentation, targeting, positioning, and budget allocation. It aims to help the organization achieve its goals by maintaining a balance between consumer needs and wants and organizational objectives. The report also highlights the interrelationship of different functional units in a business organization and their shared aim. The assignment includes references from relevant books and journals.

Marketing essential

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Introduction to the concept of marketing including current and future trends ......................1
2. Overview of different processes in marketing........................................................................2
3. Roles and responsibility of marketing manager in McDonald's.............................................2
4. Interrelation of marketing with other functions of the organization ......................................3
5. Importance of marketing role in McDonald's ........................................................................4
6. Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.................................................................................................4
7 Compare the ways in which McDonald's applies the marketing mix to the marketing
planning process to achieve business objectives and its comparison to Subway.......................5
8. Produce and evaluate a basic marketing plan for the chosen organisation............................6
Marketing plan...........................................................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is a process of selling the products and services by making different
advertising. It is the way through which targeted customers can be reached. In this present report
McDonald's has been chosen for assessment. McDonald's is a leading fast food restaurants chain
which serves fast food in all over the world. It was founded in the year 1940 by Richard and
Maurice McDonald. This present report will focus on Roles and responsibility of marketing
manager in McDonald's. In addition to this, different processes in marketing will be described in
detail. Furthermore, marketing plan will be prepared in which all internal and external factors
that affect the organisation will be analysed in detail.
1. Introduction to the concept of marketing including current and future trends
The concept of marketing is a belief that an organization should examine needs of
customers and make appropriate decisions for achieving a competitive advantage in the market
by fulfilling those needs (Campbell, Martin and Fabos, 2018). Marketing is a concept or ideas
that is adopted by most of the companies all around the world. It is very useful and effective in
promoting goods or services in the market to attract more and more customers. Marketing
concept used earlier was very different and traditional as compared to the current marketing
techniques utilized by organizations. Before the development or advancement of marketing
methods companies used to promote their products and services on newspaper, radio etc. But in
present society marketing is a combination of previous trends that have been improved upon for
example print, TV ads etc. New strategies are focused upon inbound practices, some of the most
common marketing methods used by organizations today are -
 Targeted emails
 Social media marketing
 Text message advertisements Internet video advertisements etc.
Past and current trends in marketing
Globalization – It is a macro trend that affected marketing as well as every other aspects of a
business or organization. The marketing managers in older times were only focusing on a small
or domestic market as there were low competition and fewer options available for the
organizations. But it is not same in present business environment (Pappas, 2017). There are huge
number of companies offering similar products and services in the market that is building intense
1

competition in the market. Therefore, business seeks to enter into new and different markets such
as foreign countries. This trend has enabled organizations to use new marketing techniques such
as social media marketing, TV ads etc.
Technology – It is one of the biggest changes in business entirely and marketing in the last two
decades. The advancement and increasing use of technology has changed the methods of sales,
advertising, distribution, research etc. Computer or artificial intelligence is used highly
nowadays. Such as use computers has replaced the human resources at a high level such as
internet, social media marketing etc.
2. Overview of different processes in marketing
The marketing process includes following steps of processes -
 Analysis of the opportunities in the market – The first element of marketing process it to
examine the market for finding the opportunities that can be beneficial and needs to be
availed. These opportunities are linked with the needs and demands of the customers that
are not satisfied properly by the other organisations or competitors in the market.
 Selection of the target market – This step is also very essential in the marketing process
in which target customers are chosen. The organisation performs a breif analysis of the
target markets for this purpose.
 Development of the marketing mix
 Management of marketing efforts
3. Roles and responsibility of marketing manager in McDonald's
There are various roles and responsibilities of marketing manager that helps in
performing various marketing functions to promote products and services in the market. These
roles and responsibilities of marketing manager can be described below -
Work with top management – The main function or role of marketing manager in McDonald's
is to work with top level management. He or she helps the top management in understanding the
marketing plans and policies so that each and every issue of the marketing process and planning
can be avoided and effective advertising or promotion can be formulated.
Supervise and coordinate business activities – A marketing manager is also responsible for
establishing effective co-ordination among business activities of sales, purchase, storage,
packing, sales promotion, transportation etc.
2

Identification of potential market – To develop and enhance demand of the goods and services
produced by the McDonald's, the marketing manager needs to identify new potential markets and
also has to develop or maintain relationship existing markets for their products and organisation.
Evaluate the product – In the technological arena, the demands and needs of the customers and
changes over time (De Mooij, 2018). Therefore, it becomes important for the marketing manager
to examine all the changes and evaluate the product periodically so it is essential alternations and
modifications may be made in the product.
Selecting the channels of distribution – The physical distribution of products and services
through various channels such as retailers, wholesalers etc, is decided by the marketing manager.
4. Interrelation of marketing with other functions of the organization
The marketing function within an organisation or business is not only linked with the
promotion of goods and services. It is important to determine the relation of marketing function
with other activities or department of the organisation such as McDonald's. There are various
functions performed by McDonald's which are influenced and linked with marketing function of
the company.
Production – The marketing department is aware of and understand the demands, preferences
and trends of customers in the market. This helps McDonald's to identify the ways to attract
maximum number of customers (Tuten and Solomon, 2017). The production department design
and develop products in such as way that it fulfils the needs and satisfy the customers. Marketing
assist in choosing the best design or method to produce products that can attract people and
increase sales of the organisation.
IT department – The department is also an important area or part that get influenced by
marketing function of an organisation such as McDonald's. Online marketing such as social
medial marketing can not be possible without effective IT teams in the organisation which is
responsible for managing the websites and online channels of the company.
Accounting -The another most important department of McDonald's is the accounting
department. It is responsible for deciding the budget of the marketing function or activities.
Marketing department or team develops a marketing plan along with the accounting team to
manage the expenses of marketing or promotion activities performed in the organisation.
Human resources – Marketing function also requires well trained and informed marketing
executives for the organisation to promote its products and services in the most effective manner
3

(Yoo, Donthu and Lee, 2000). Human resource department helps to recruit most talented
employees who can perform their roles and responsibilities in the best way.
5. Importance of marketing role in McDonald's
Marketing is an important method used by mostly all the organisations or businesses, it is
very essential for promoting goods and services in the market. The marketing functions helps in
attracting more and more customers in a target market. There are various other ways in which
marketing is important for an organization such as McDonald's as described below -
 Creating customer loyalty – Marketing helps in holding customers within a
marketplace, customer are attracted towards companies which are strongly connected to
them. Marketing methods such as social media marketing helps McDonald's to develop a
close relationship with the customers that leads to increased customer loyalty.
 Innovation and decreasing cost per unit to enable large scale production - Marketing
function also helps in bringing innovation in McDonald's. Marketing helps the
organization to increase its visibility in the market, which also attract suppliers and other
stakeholders that assists McDonald's to bring innovation in their services such as home
delivery services assistance. It also helps in reducing cost of the company.
 Maximizing sales by developing goodwill – Effective marketing helps in attracting
customers all around the world through social media, online marketing, TV etc. All these
marketing techniques assists McDonald's to increase their sales and creating goodwill in
the global market.
6. Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.
All the departments are interconnected with each other, no functional unit can perform its duties
without each other. It helps in achieving organisational objectives which is the basic work of
every employee that they need to focus on. Effective interrelationship helps in creating a healthy
working environment which will give job satisfaction to employees. Effective relationship will
also create a social platform for employees so that they can feel a sense of satisfaction and also
they get motivated by the same.
4

7 Compare the ways in which McDonald's applies the marketing mix to the marketing planning
process to achieve business objectives and its comparison to Subway.
Marketing mix is one of the major concept which sets the thought to realise that about
delivering products to the right person and that too at the right period (LyonU, Glove and Inc,
2018). All the marketing strategies can be implemented by using marketing mix concept as it
helps in getting informed about complete marketing details in detail. Following comparison is
done to know marketing mix of McDonald's and Dominoes.
Basis McDonald's Dominoes
Product This offers burgers in its menu
and it is king of Burgers In all
over the world. It has other
food items as well in its menu
card but it majorly famous for
its delicious burgers.
This company is famous for
pizza. It is also a fast food
restaurants but it offers Pizza
in its menu card. Both the
restaurants products does not
match with each other.
Price McDonald's have
comparatively low prices than
Dominoes. As it sales more
burgers than any other brand in
the world (Pappas, 2017).
Dominoes also have low
pricing policy and its sales fast
food at minimum possible
prices.
Place McDonald's operates in many
countries. This has made sales
and growth of the company to
a great extent. It has also helps
the organisation in creating a
brand name (Hammons, Silsby
and Efunz com, 2012).
It also operates and run in
many nations. But Dominoes
has a policy of home
delivering of fast food within a
specific time of 30 minutes.
This has helped the
organisation in increasing its
sales to a great extent. So
Dominoes has made available
its food at every place.
promotion Different promotional Dominoes also make many
5

strategies are used by the
company in order to achieve it
goals such as different
discounting offers or combo
offers etc. This is all to
promote the brand and
increase the sales of the
restaurants chain.
promotional strategy in order
to create its own brand name.
But the biggest promotion
technique of the company is of
its fixed time delivery process.
This has helped people in
getting food on tine which has
made more orders by
consumers. As everyone likes
to get food on time.
Physical evidence McDonald's operates in 120
countries and it has more than
36000 restaurants in all over
the world. This is the biggest
advantage for the company.
Whereas, Dominoes has
comparatively fewer
restaurants than McDonald's. It
has 14000 stores in 85
countries.
process This operates with such
technological process where it
makes easy for restaurants to
give fast services.
Dominoes take little more time
in serving food sue to its
operational process.
8. Produce and evaluate a basic marketing plan for the chosen organisation.
Marketing plan
Aim: McDonald's major is to increase it sales by 10% by the end of this financial year. Along
with this it is also focusing on improving the quality of its product.
Mission: Its mission is “to be customers’ favourite place and way to eat and drink.” It has
always wanted to serve the best quality fast food on minimum prices. SO that every person can
eat and enjoy.
Vision: McDonald's vision is “to move with velocity to drive profitable growth and become an
even better McDonald’s serving more customers delicious food each day around the world.”
6

Executive summary: McDonald's is planning to increase its sales by 10% by the end of the
accounting year (Kropp, 2018). To meet the same company has made SWOT and PESTLE
analysis so that internal and external factors can be determined. It will help in knowing about
every aspect that will affect the aim of the organisation.
PESTLE ANALYSIS
POLITICAL: McDonald's is a fast food chain which has opened its restaurants in all over the
world. Every nation has their own rules and regulations which are required to be followed by
companies in order to operate. Government also make applicable various laws on fast food
industries due to health concern of people. In order to earn success and growth company also
have to give major benefits to the countries by way of employment opportunities. Political factor
has a great impact on the business and thus all should be considered by organisation to achieve
its aim.
ECONOMIC: This factor is also a major concern for the big organisation. Economy of a nation
tells about the purchasing power of the country (De Mooij, 2018). But McDonald's has low
pricing policy which helps the company in expanding even in those nations which has low
purchasing powers. McDonald's can fulfil its aim by knowing economic position of the country.
SOCIAL: People are highly concerned about their health and this has a great impact on business
of fast food restaurants. People are moving towards healthy diet food and to run in long term
McDonald's is planning to add diet food in its menu card. This will help the organisation in
increasing its sales and achieving its aim.
TECHNOLOGICAL: It is a factor which allows the company to come up new different things.
This will attract maximum number of people as the company is coming up with new products.
Organisation is concentrating on making online payment and home delivery of food. This all
factors has increased sales to a great extent (Robinson, Paulsen and Akeel, 2018). Technology
can also enable a brand to reach a far greater market and to undertake appropriate social media
strategies to engage with their consumer.
Environmental: It is the duty of every organisation to follow environmental factors so that
environment can feel safe for future generations and society. McDonald's has their own various
rules and regulations that they follow to keep the environment safe. Ass it operates in many
nations in all over the world, it keeps environmental factor as this is for all. On the other hand,
McDonald's has been criticised for using polystyrene bags for the purpose of packaging.
7

LEGAL: McDonald's is a certified company for the purpose of running fast food business.
There are different rules and regulations of every nation which the company is following for the
purpose of operating in different areas. There are many laws such as tax, labour laws of the
country, employment laws etc. These are really important to be followed so that all aims and
objectives of the company can be achieved.
SWOT ANALYSIS
Strengths
 Leading fast food brand in entire world.
 In times of recession also company
operates due to its low pricing policy.
 Company just focuses on serving the
best quality and tasty food.
 Large market share along with strong
brand name (Chaouki and et.al., 2018).
Weaknesses
 Type of food is such that it is not
healthy for people. Thus, switching cost
is very for the organisation.
 It also lacks due to not giving national
delivery services.
Opportunities
 Many other opportunities to expand
new food items in its menu along with
growing in different countries.
 It can expand its venture using higher
technology and new technology
methods.
Threats
 Many people are avoiding fast food due
to health reasons.
 As it is a worldwide brand it can be
affected by recession and different
economies.
Segmentation, targeting and positioning of McDonald's
Segmentation: In this the people are divided on different basis like on the basis of age, income
and lifestyle. To increase the sales by 10% company is planning to target young age people by
social media and other different ways of advertising. Other than this, McDonald's can also
segment its market on the basis of following
 Different geographical areas: Different area where the company does not have its
restaurants.
8

 Behavior of people :young people like to eat more fast food than old ones.
 Psycho graphic: In these people will be segmented on the basis of their lifestyle.
Targeting: After deciding the area of segmentation, people will be targeted so that organisation
can achieve its goals. Every person will be targeted but major concentration will be one people
of age 25 to 35 years.
Positioning: McDonald's will use all the marketing mix strategies for making and achieving a
position in the market. Positioning means using of marketing mix and engaging the company in
achieving its aim of increase in sales of the company.
Budget
Particulars Amount
Marketing research $5000
Salary $800
Research and development $2000
Total $7800
CONCLUSION
From the above report it has been concluded that marketing process helps in covering the
target market of organisation. It helps in achieving organisational objectives by maintaining a
balance between needs and wants of consumer and aims of organisation. In addition to this, this
report has determined that there are different other internal and external factors which are
affecting marketing and other functional unit of business organization. Furthermore, all the
departments in a company are interrelated with each other and the basic and major aim of every
functional unit is same.
9

REFERENCES
Books and journals
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Pappas, N., 2017. Effect of marketing activities, benefits, risks, confusion due to over-choice,
price, quality and consumer trust on online tourism purchasing. Journal of Marketing
Communications, 23(2), pp.195-218.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Tuten, T.L. and Solomon, M.R., 2017. Social media marketing. Sage.
Yoo, B., Donthu, N. and Lee, S., 2000. An examination of selected marketing mix elements and
brand equity. Journal of the academy of marketing science, 28(2), pp.195-211.
Hammons, J.P. and Silsby, L.L., Efunz com, 2012. Internet marketing method and system. U.S.
Patent 6,477,509.
Lyon, A., U-Glove, Inc., 2018. MARKETING METHOD AND SYSTEM. U.S. Patent Application
15/804,665.
Kropp, D., 2018. Method for the handling and/or marketing of items by a warehouse and a
warehouse. U.S. Patent 9,934,545.
Robinson, A.W., Paulsen, R. and Akeel, U., Oracle International Corp, 2018. Method and system
for implementing cloud based marketing integration with external content. U.S. Patent
9,978,085.
Chaouki, S.M. And et.al., 2018. Digital prescreen targeted marketing system and method. U.S.
Patent 9,996,856.
10