Marketing Essentials: A Comprehensive Guide to McDonald's Marketing Strategies

This comprehensive guide delves into the essential aspects of marketing, using McDonald's as a case study. It explores the key roles and responsibilities of the marketing function, its relationship with other organizational units, and the application of the 7Ps marketing mix in achieving business objectives. The report also analyzes McDonald's marketing plan through a SWOT analysis, highlighting its strengths, weaknesses, opportunities, and threats. It examines the strategies adopted by McDonald's, including market penetration, market development, and product development, and evaluates its promotional mix, encompassing advertising, personal selling, sales promotion, public relations, and direct marketing. This in-depth analysis provides valuable insights into the effective marketing strategies employed by a global fast-food giant.

MARKETING ESSENTIALS

TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO 1.................................................................................................................................................2
P1 explain the key roles and responsibilities of the marketing function.....................................2
P2 how roles and responsibilities of marketing relate to the wider organisational context........5
LO2..................................................................................................................................................8
P3 Compare how organisations use the various elements of the 7Ps marketing mix in the
marketing planning process to achieve business objectives........................................................8
LO3................................................................................................................................................10
P4 Produce and evaluate a basic marketing plan for an organisation........................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

EXECUTIVE SUMMARY
Marketing management is the process of planning and implementation of various tactics of
marketing. This process includes various type of marketing function of organization which helps
in the development of the organisation and as it required in larger strategies which include
market research, introducing marketing plan and developing product with strategy of advertising,
promotion, distribution for sale, customer service and public relations.. In today`s world
marketing function is very essential to growth and it is difficult to ignore this function. A
company survival is depending upon their marketing efforts.

Introduction
The present study is focussing on the importance of marketing in McDonald’s which is planning
to expand its business at various locations nationwide. Its main objective is to generate revenue
by providing high customer satisfaction. The report will discuss the various roles and
responsibilities of marketing manager and its interconnection with various other organizational
functions. Once the marketing plan is working various responsibilities are given to different
individual and plan can be implemented. There is various systems which are obtaining feedback
from customers. It ensures it achieve its target by tightly controlled and by proper marketing
budget.
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LO 1
P1 explain the key roles and responsibilities of the marketing function
Roles and responsibilities of marketing with respect to marketing environment and there are
various roles and responsibilities of marketing with respect to marketing environment and some
of them are described as under-
Marketing management is the process of planning and implementation of various tactics of
marketing. This process involves selling, distributing, pricing, packaging, promoting etc within
the case study of McDonald’s. This is all done to target a particular type of customer. The
marketing department performs various types of functions as explained under-
Marketing research- market research is one of major role of marketing department. This is the
first and foremost step in the area of marketing department. This research includes understanding
the external environment that comprises market trends, competitors, pricing, taste and
preferences of customers against strategies of McDonald’s. This is done to know about the
market in depth and to design the product accordingly (Baker, 2014).
Marketing information system- The marketing information system is the system that contains
all the information like product, planning and execution of market strategies etc. Like MIS helps
the companies by providing them complete information which helps in selling their products
efficiently.
Monitoring of marketing environment- Along with the research of marketing environment it is
necessary to monitor the marketing environment. This is essential for developing new product
and launching it into the market (Cui and Choudhury, 2015.). The innovations in McDonald’s
help in bringing changes in internal and external factors, political factors, market demands, etc.
Market strategies- Market strategy is the point around which whole concept of marketing
revolves. Marketer has to develop a strong marketing strategy for the successful operation of
business activities. Marketing strategies are constructed after understanding the needs and
demands of customers. These strategies are made to coordinate marketing activities with the
business goals.
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Market segmentation- Market is vast today. It needs to be segmented before targeting. A
company always needs a particular type of customers for its products. The marketing department
should accurately segment the environment. This helps in targeting a particular type of customers
and promoting the goods and services according to them.
Brand equity- Today the customers are more attracted towards brands. They prefer to buy
products that have good brand value. Brand has become a symbol of status now days (Fan et.al.
2015). Marketing a product in a correct way helps McDonald’s in building a reputation and
strong brand value of the product. This also increases the sales of the product.
Key elements of marketing functions and interrelations with other functional units of
organization
Marketing functions comprises of many other functions like advertising, distribution, packaging,
pricing, promotion etc. Marketing is a wide concept and involves many other concepts. Key
elements of marketing functions are explained below-
Research: researching the market is a crucial step. It plays an important role. Marketing cannot
be efficient without market research. Market research is essential for McDonald’s to be
successful. Research helps in understanding the market well. It helps in understanding all the
opportunities and threats available in the market. Also it helps to know about the competitors,
suppliers, products, pricing, etc (Germann et.al. 2015). It is therefore considered as a key
marketing function. It is helpful in getting all the valuable information regarding all the business
projects.
Planning- another important function that comes after research is planning. Planning about the
steps to be taken or process to be followed is necessary. Planning about the project and
successfully implementing it is necessary. Planning acts as direction. It provides the way to
achieve goal. Planning means forecasting future, predicting the possible situations,
understanding distribution, communication etc. The strategies are framed by planning
department (Hollensen, 2015). Strategies are a part of plan and therefore play a major role in
achieving marketing goals and objectives.
Strategy- Market research helps in collection of information and the information so collected
helps in framing a good strategy for achieving business objective. The data collected from
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research is processed and utilized. Strategies are the plan on which a marketing department
works. It gives guidance to the marketing personnel on how the targets can be achieved easily.
These strategies can help in becoming market leader and achieve success of McDonald’s. The
strategies are result of the research so conducted (Kashmiri and Mahajan, 2015).
Tactics- Another important role of marketing is tactics applied. Tactics are basically the
techniques that are adopted for attracting large number of people. These tactics are generally
short term plans. For example giving away attractive offers to the customers to attract them like
buy one get one free, extra 15% off etc.
These are the general functions of marketing and they are interlinked with other departments of
the organization. Marketing department has connection with other departments and this inter
relation in McDonald’s is explained as under-
Marketing and Operations department- Operations department is related to marketing
department in such a way that operations department utilizes the research made by the marketing
department about the product of McDonald’s. It produces the product accordingly. The products
produced by the keeping in mind the market factors like taste and preferences of customers,
pricing factors, competitors products etc. marketing department has to be aware about the
availability of raw materials, production capacity, etc to avoid any losses and problems relating
to production (Roles of marketing officer, 2017).
Marketing and finance department- Finance department provides the funds to the marketing
department for the marketing of products and services. The marketing department has to convey
about its plan to the finance department. Finance department then passes the budget of
marketing. Finance department is a support for marketing department. McDonald’s should be
aware about the financial status of the company and must plan its activities accordingly. All the
companies cannot afford expensive marketing plans. Also they cannot spend large amount on
marketing of products. Each company has set budget for marketing.
Marketing and Human Resource department- Human resource department recruits the
required personnel for marketing department. Human resource department understand the needs
of marketing department regarding their requirement for an employee and hires the same kind of
employee for them. Also the Hr policies are framed in alienation with marketing policies.
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Marketing department has to be in connection with all the other departments for successful
achievements of goals (Moorman and Day, 2016).
P2 how roles and responsibilities of marketing relate to the wider organisational context
Marketing is important function of organization as it required in larger organization which
include market research, introducing marketing plan and developing product with strategy of
advertising, promotion, distribution for sale, customer service and public relations. In today`s
world marketing function is important and it is difficult to ignore this function. McDonald’s
survival is depending upon their marketing efforts. Social media is now a day important factor in
marketing products and services as it plays an important role in maintaining relation between
customers and organization.
Marketing helps in creating image of the organization and about its product and services that
build confidence about the product and services. Marketing also increases profit margin of
organization as it directly related to branding, publicity, advertisement and customer relation by
proper understanding their feedback. If an organization wants to launch a product the first it has
to start with its marketing where product is launched according to the need and requirement of
consumers (Wirtz et.al. 2014). McDonald’s is also needed to protecting their market share in the
environment as it helps to retain customer loyalty and to retain customer and this will helps in
maintaining goodwill of organization. The main success of organization is not depends on its
brand or investments it depends on customer and or customer buyer relationship.
There are five main functions of marketing are:
Marketing strategies: Strategies are adopted for existing in market as various strategies are
adopted by marketer before launching a product and service and after launching product and
services. As there are various strategies to enter into new market or exist in new market and
various strategies that one follows is market penetration strategy and skimming the cream
strategy this type of strategies are used by marketer for its existence as there are number of buyer
and seller in the market and competitive market in forces the seller to use various techniques and
strategies to survive in market (Chernikova et.al. 2015). Marketing is used by every seller in the
market without marketing the product it is very tough for seller to sell the product and service.
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Research: One of the major functions of market research is to target their customers and
designing of product can be done according to need of customers or seller. Before pricing of
product market research is conducted to know what are prevailing price of same product and
competitor price in market (Kotler, 2015). Pricing of product must be determined after
analyzation of various factors.
Marketing company: Before starting a brand name or company name it is needed to marketing
that brand name so that customer has some brand image in their by this method it became easy to
purchase particular product and services.
Media marketing: It also involves packaging of product and services by which it can appeal to
the customer. Logos and packaging will be designed by taking customer in mind.
Marketing concept in context of organisational environment
The marketing concept is philosophy which should be analyzed the needs of customers and then
providing services which satisfy their needs. There are three concepts of marketing: Sales
concept, production concept, marketing concept.
The production concept: In this concept the main focus of the organization is in production of
product more efficiently so that cost can be minimized by the mass production and it will
generate more profit and gains (Babin and Zikmund, 2015). As production concept is used in
earlier time as the demand for products and services are more and they are basic necessity
products.
Sales concept: After production concept the organization uses sales concept as mass production
become common place as competition has increased so organization began to concept of selling
as main motive of this concept is to maximize its sales without customer satisfaction as today
also this concept is also used by many firms which have low turnover.
Marketing concept: As variety of products are manufacturing as selling concept enables to sell
the products in the market and customer wants product which satisfy their needs and wants as it
due to increase in their income and by number of products exist in the market (Armstrong et.al.
2015). The main focus of marketing concept is on developing the product by focusing on
customer needs and satisfaction and generating a profit by successfully satisfying the needs of
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customers as if firms adopting marketing concept it has to set up separate marketing department
with the objective to satisfy customer needs as marketing function rely on marketing research,
market segments and their needs.
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LO2
P3 Compare how organisations use the various elements of the 7Ps marketing mix in the
marketing planning process to achieve business objectives.
A marketing plan is a document which is plans of marketing which helps to achieve organization
objectives. It helps to clarify about target market and specifying marketing objectives and it
helps to scheduling elements of marketing mix which help to create marketing program. The
main motive of marketing plan is corporate objectives. Its main objective is to provide the
solution with awareness and expected customers Perhaps the main motive of marketing plan is
corporate vision.
As we are taking example of McDonald’s as its main mission is to become customer favourite
place to eat and provide high quality food with hygiene and its vision is supported by core values
and by guiding principles its marketing strategies focus on customer taste and preferences. It
became famous brand globally and brings definite hope for customers.
The different type of 7Ps of Mc Donald are as mentioned: product , price, promotion, place,
people, physical evidence, process,
Product: There are varieties of products which are served by company. The products are
vegetarian menu, non vegetarian menu, Beverages, frozen dessert. While designed of products
the main focus is on customer sentiments, religion and culture (Hisrich, and Ramadani, 2017.). It
has to separate its cooking area for vegetarian and non vegetarian items and they also provide
quite affordable products.
Price: They have provide some reasonable products to customers for example they are providing
Mc Aloo tikki and there are many combos are provided to customers as they can get discounts by
various combos or happy price menu is also one technique to attract the customers . This low
cost product are heavily marketed so that it helps in cost leadership and helps in psychological
connotation
Place: It generally located in prime location of city so that it can be easily reached by people
and in almost big city it can be easily accessible. As it provide drive-in and drive through options
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and it is future convenient to customers by covering many residential area and NCR and right of
high-ways (Huang and Sarigöllü, 2014)
Promotion: It can be promote its product through advertising, newspaper and magazines.
Promotional methods used by them are merchandising, Direct mail, Loyalty schemes, Door Drop
etc. It focus on children by serving them direct meals as by giving them toys with their meal it is
an new promotion technique. Lucky draws, hoardings, scratch cards and hoardings are to be at
major places.
People: It gives fast, friendly service to the people and it has uniform employees for equality
service treatment and crew member carries basic operation of a restaurant by ensuring customer
satisfaction at the restaurant (Khan, 2014).
Physical evidence: Physical appearance gives impression to outsiders as it includes: cleanliness,
speed, quality, transparency. It also includes building and maintenance and location or
appearances.
Process: It should producing food by transparency to customers as they are invited to check the
ingredients used in food. It allow the customers to enter the area of process take place of making
the food as they are aware about what they are consuming and they used more efficient cooking
equipment, packaging and distribution.
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LO3
P4 Produce and evaluate a basic marketing plan for an organisation
The marketing essentials include different type of evolution process for the marketing plan. The
various type of plan involves strength, Weaknesses, Opportunity etc which will help in planning
the marketing to make it strong among the competitive market.
SWOT analysis of McDonald’s
Strengths
 It is one of the famous brand and gives huge competition to its competitors
 It achieve economies of scale by giving cost reduction strategies
 Brand recognition helps in generating high revenues as its focus on maintaining its brand
name
 It target its market segment as its concentration is on segmenting brand
Weaknesses: Main weakness of this organization is expansion and it stick to its problem and it
does not provide innovation with their product
Opportunities
 It can give value added service for example internet access and it can make its outlet
chain better
 As international expansion is needed by this chain as it has more scope to serve to
different countries
 They can plan market penetration and moved to cities like Europe, Asia and Latin
America
 Threats
 Fluctuation in foreign currency rate is a big threat for McDonalds
The Various type of strategies are followed by McDonalds are given below .
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1. Market penetration: By this strategies it inculating market promotions to increase market
share by attracting customers. It also focus on advertisement campaigns for domestic market of
each country (Kumar and Shah, 2013)
2. Developing market: Market development is expansion plan in new market with introducing
new outlet as it can be done through promotions, opening sales and creating alliance with other
companies.
3. Development of program: It give importance to service development program as it focus on
providing best services to its clients and it analyzed the market and developed customer care
strategies by taking feedbacks to increase the number of satisfied customers.
Three main strategies adopted for the marketing:
1: Franchise modal: As franchise model only 15% of restaurants are run by the company.
Company follows all the frameworks for training and development of its franchise so that it can
achieve good service; hygienic food and nominal value of product are offered to customers
(Wirtz et.al. 2014)
2. Product consistency: Company is consistent with its product quality and quantity so that it
can achieve its desired goals as quality is same across the nations
3. Act like retailer think like brand: It focus on its brand reputation as by serving better quality
product and it should be consistent in serving the products.
McDonalds understands the importance of its employees and customers as customer are satisfied
because of its product and it will satisfy them by their taste or quality. It generally focus on
internal marketing and it automatically help in success of external planning (Babin and Zikmund,
2015). Internal marketing include hiring and training of employees as it always serve its
customer with smiling faces. The important people are customers, front line employees, middle
level managers, front line managers.
The punch line of product is ` I m loving it’ is generally to show employees their love towards
product. There are various strategies adopted by Mc Donald to set their promotion mix:
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Advertisement: Advertisement is important tool as it attract large number of customer as there
are three main objectives of this promotion policy is that it make aware the audience about the
product as right message is conveyed to right people through right media as it can be done
through hoardings, television and bus shelters.
Personal selling: It is most important method to understanding buyer preference as it allows
direct interaction between buyer and seller as their employees are working in different outlet are
best example of personal interaction as Mc Donald appoint staff which perform activities which
are regarding selling of goods to customers (Erragcha, 2016).
Sales promotion: it include promotion activity through various programs, discount coupons etc
as it organize various programs in different outlet as free distribution of discount coupons is also
one of the technique of increasing the customers.
Public Relations: The restaurant employees play a huge role in interacting with the public. They
feel that before communicating to their customers as they want to know what they feel towards
brand and they communicate after their competitors (Belch et.al. 2014).
Direct marketing: It is one of the efficient tools of marketing as they provide home delivery
services which can directly serve the people at their home as they give more preference to direct
marketing as they usually mention all the offers along with their contact of their different outlet
(Fill and Turnbull, 2016).
McDonalds use statistical methods to target their customers are which area are remained to serve
as it helps in expanding the market with achieving organization objectives.
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Conclusion
As by above study it is clearly stated that McDonalds should providing healthy products as it is
producing high quality products for the customers and it also includes fruit juice products. Company is
growing fast food chain and it is world leader in this sector as in UK it is owned and operated by
businessmen and women. Once the marketing plan is working various responsibilities are given to
different individual and plan can be implemented. There is various systems which are obtaining
feedback from customers. It ensures it achieve its target by tightly controlled and by proper marketing
budget. The success of this food chain is increased in foreign countries as it also provide food-sky high
in fat and cholesterol and it is maximizing its profit and minimizing its cost by serving to customers
according to their need , taste and wants.
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