Marketing Essentials Assignment Sample on McDonald's

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of the marketing function........................................................1
P2 Roles and responsibilities of marketing with other organisational functions...................2
TASK 2............................................................................................................................................4
P3 Application and comparison of marketing mix to marketing planning process...............4
TASK 3............................................................................................................................................8
P4 Developing marketing plan...............................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is an art or science of identifying, creating and delivering value to
satisfactorily fulfil needs of target market at profit. Effective marketing practices helps in
segmenting potential customers and company can design and promote the appropriate goods or
services (Baker and Magnini, 2016). This project flashes roles and responsibilities of marketing
functions in context of McDonald's. This corporation is an American fast food restaurant chain
since 1940, and founded by Richard and Maurice McDonald in United States. They serve over
100 countries and manages their business by franchising. Apart from this, project also focuses on
relationship of marketing with other functions at McDonald's. However, appropriateness of their
marketing mix will also be analysed in this project. Furthermore, it will also investigate
significance of effective marketing plan to implement value-creating marketing strategies at
McDonald's.
TASK 1
P1 Roles and responsibilities of the marketing function
Marketing refers to the activity of an organisation which is associated with buying and
selling of goods and services. It includes selling as well as delivering of product to customers,
advertising and so on. McDonald's recognizes that if they want to increase more of revenue for
the organization, then there is greater need to sell more of their products and services in the
market. In McDonald's concept of marketing focuses on it five most important concept, where
each of it was developed according to need of market and get affected by changes in market and
its situation. The five concepts of marketing are production, selling, product, marketing and
societal marketing.
Current trend of marketing: Some current trends of marketing in McDonald's may
include mobile marketing, partnerships, online performance marketing, sponsorships etc.
Future trends of marketing: Some future marketing trends that may exists in coming
scenario are personalized, real-time and digital marketing and so on.
Apart from this there are few marketing function which plays vital role and
responsibilities to increase market share and profit of a company more effectively:
Financing: In marketing, financing refers to budgeting for marketing activities at
McDonald's, collecting necessary funds for its marketing operations and also providing financial
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assistance to customers so that they can purchase products. This financial assistance is a source
by which customers can pay money while purchasing and their timely transaction will run
smooth business operations (Lane, 2015).
Marketing Information Management: This operation is used to obtain, manage and use
marketing information to improve business decision making and performance of marketing
activities. At McDonald's it includes marketing research and collection of information of
customer, products, trends and competitors.
Pricing: Setting of appropriate price is a major challenge for pricing department of
McDonald's. If the company is using skimming pricing strategy for their products and services,
then they might have to lose their regular customer as well as will not be able to attract new
customers. Similarly, if they will use penetration pricing strategy for their products, then it may
lead to increase in revenue for their company (Dibb and Simkin, 2013).
Selling: To generate more of revenue for McDonald's, major responsibility lies upon
selling department. The role of selling function is to sell the right product at the right time to the
final consumers. Additionally, main duty is to retain the customers permanently by creating
along lasting impression about the product and services they provide to the consumers.
Promotion: This refers to communicating information about the product and service to its
potential customers. This function is a major function of marketing in McDonald's as it
encourages customers to buy products.
Product management: It is again important marketing function of McDonald's company.
The role of product management is to critically analyse the market condition, to oversee the
production of the products and services, in order to maximize the profit growth for the company.
Distribution management: In marketing, distribution refers to determining ways for
customers to locate, purchase and use product and services of McDonald's. It also include
decision like where to sell and how to serve there.
P2 Roles and responsibilities of marketing with other organisational functions
In McDonald's, there are several function which are interlinked with the roles and
responsibilities of the marketing functions in order to achieve the goal of the company and they
are as follows: (Malhotra and et. al., 2013)
Production: Marketing function and production function are correlated to one another in
McDonald's. The production function concentrate on developing new products, analysing the
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quality of the products and ensure the delivery on time. Whereas marketing functions to ensure
the satisfaction level and meeting the consumers demand. Marketers try to provides products to
market quickly to ensure competitive advantage, whereas producers take their time to test and
develop products fully to ignore chances of errors and defects. Hence, through producing
demanded and trendy products and services, organisation achieve their business objectives.
Positive impact of interrelation within marketing with production is that manager of marketing
department identify needs and wants of customers. Then according to the determined
requirement production department produce goods. Whereas, sometimes marketing division
gives negative impact also that if market research conducted was not correct then it will result in
producing not actual required goods and services.
Sales: The employees who concentrates on sales function of McDonald's company,
mainly works to help the prospectives customers in ascertaining the quality and best products
according to their needs and demand. Due to the relationship between sales and marketing teams
is closely tied and interdependent, their approach to technology, metrics, and can promote highly
changing assessment. Effective marketing of products and services highly effects its sales and
revenue generation as marketing plays as a source to communicate with customers. Sales is
totally related with marketing division and it have positive impact within respective organisation
because sales is only possible through several marketing tools and techniques such as
advertising, pamphlets, events and so on. Same also have negative i.e., these activities result in
more extra expenses.
ICT: Members of the ICT function in McDonald's, manages and ensure safety of data
which are stored in system. Installing new software and hardware like scanners and printers,
server maintenance all comes under the ICT function. The specialist of the ICT department will
keep the top mangers updated about the newer technologies advancement so that the company
can makes changes as per the environmental demands. This function helps marketing department
by providing marketers with complete, relevant and updated data or information of their existing
and potential customers which further helps in marketing planning and decision-making.
Human resource: The members of this function is responsible for recruiting and
selecting the right candidate at the right time for the right job. The main function performed by
the HR is to monitor the working environment, train and develop the new employees, recording
the reason for absenteeism and to monitors the wage rate and incentives of the employees.
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Marketing assist McDonald's in seeking most suitable manpower and high efficiency within the
organisation. It is that department which is related to the as well as linked with the working of
overall organisation with HR division in the company it is difficult to do easily work.
Finance and Accounting: The finance department at McDonald's construct a plan for
future and make a report on outcomes of company. Whereas accounting team members takes
data from sales team to generate financial statements of McDonald's ( Lipsman and et. al., 2012).
This assist marketing affairs of organisation through providing proper funds and promote those
activities assisting indirectly more sales and revenues of organisation.
Research and Developments: This function focuses on improvement of existing products
and development of new products according to customer demand as well as technology
advancement. Members of R&D aim to bring changes in existing products or produces new
products at a reasonable cost and features by gathering necessary information from marketers
about demand and sales of customers as well as new market trends which helps in accomplishing
business objectives of specific organisation (Nguyen and Simkin, 2012).
TASK 2
P3 Application and comparison of marketing mix to marketing planning process
Marketing is a process which translates customer needs into revenue for company
profitability. Marketing mix is a framework consisting seven important elements of company's
business plan and comes under the umbrella of marketing. These seven elements for McDonald's
are as following:
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(Source- How to use the 7Ps Marketing Mix, 2018)
Elements of
Marketing-Mix
McDonald's Burger-King
Product: This
element have different
aspects of a product
like quality, design,
variants, branding,
features, etc.. if
organisation are
offering unique
product then it will
help in achieving
goals as well as
strategic marketing
objectives easily.
 McDonald's primarily serve
hamburgers, fries,
sandwiches, wraps,
beverages, deserts and so
on. It has variety of options
in vegetarian as well as non-
vegetarian segments. Such
products result in attracting
customers and also in
becoming them loyal.
 It has a line of new arrivals
so as to meet demand of
new generation or
adolescents. McDonald's
sells in standardised product
line. It also carries small
combos in various size of
meal and with different
 Burger King and
McDonald's both have
started with burgers and
now have a wide variety
of fast food in their
portfolio.
 As compared to
McDonald's Burger-king
have less standardised
products, as it has wide
variety of different food
products like burgers,
salads, beverages, fries
etc.
 It produces, hamburgers,
cheeseburgers as well as
fries, salads, hash
browns, onion rings,
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Illustration 1: The 7Ps Marketing Mix

options of burgers, fries,
wedges, wraps or beverages.
coffee, juice, shakes,
cookies, pies etc.
Promotion:
Promotional elements
that a company uses
are advertisements,
special offers,
campaigns, etc. that
are used to
communicate with
customers.
 McDonald's mainly focuses
on targeting children and
teenagers, and for this its
advertisements are most
notable among its promotion
tactics. Promoting activities
using by McDonald’s help
them in attracting peoples
who are found of burger and
all that. Along with this,
result achieving marketing
strategy objectives.
 It uses broadcast
advertising, print media, as
well as through the means of
internet to create awareness
among its potential market.
The company uses sales
promotion as well to attract
its customers (Papasolomou
and Melanthiou, 2012).
 For children's attention
McDonald's uses small toys
and happy meals too. Apart
from this, its uses various
schemes and offers or meal
combos which results into
attracting customers by
greater value of money.
 Burger-King uses less
promotional tools and
celebrity involvement to
communicate with its
customers, which is
advantageous for
McDonald's as they uses
more celebrities and
different advertising tools
to promote their product
and sales. Promotional
activities are not using by
the burger King this is the
reason that they take time
in accomplishing goals
related to strategic
marketing activities.
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Price: Different
organisations uses
range of pricing
techniques such as
value pricing, cost
plus pricing, going
rate, price
discrimination and
others to sale their
products. In
marketing-mix prices
consists of these
strategies.
 McDonald's aims for each of
its individual restaurant to
provide food at competitive
value driven prices for their
customers. In each of its
restaurant prices slightly
vary due to number of
factors (Baack, Harris and
Baack, 2013).
 Although, prices of
McDonald's is also
maintained by its branding
strength and also well-
known brands like coca-
cola, which equally supports
in their consistency of
quality and prices. Price
shows
 Burger King also uses
more psychological
prices to attracts their
customers at low price
menu.
 They keep their prices
low to attract customers
nut as compared to
McDonald's its prices
somehow high, due to
which McDonald's have
high market share than
Burger-king.
Place: This factor
carries different
distribution channels
like retailing, online
services, direct
marketing, franchising
etc. by which
company can get their
products to its
customers.
 McDonald's uses various
distribution strategies in
different countries. Only in a
few countries it offers home
delivery option however in a
few countries it operates
24*7 whereas in other
nations it do not serve the
same.
 Due to intensive distribution
strategy, McDonald's make
their products available for
sales through all possible
 This factor of marketing
mix have similarities for
McDonald's as well as
Burger King as they both
use franchises to sell their
product.
 Still in many countries
McDonald's have more
outlets and easy access as
compared to Burger-
King.
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means of distribution.
People: This element
consists of customers,
employees,
management, culture
and customer-service
of a company. The
main objective of this
element in marketing
mix is to address
issues regarding both
customers and
employees. To
maintain better
customer relationship
it is needed to
implement appropriate
strategies to fulfil
needs and wants of
customers as well as
employees.
 In McDonald's, a large
number of people are
employed all over the world
where company invest
approximately £40million
on employee training and
development every year, to
make them perfect in
dealing with techniques as
well as members of
McDonald's (Bennett,
2010).
 Burger King provide
training to their
employees and take
customer feedback to
serve more effectively,
still McDonald's have
more customers due to its
quality of services.
Process: The process
refers to all activities
and techniques that
are performed in an
organisation in order
to achieve their goal.
 McDonald's uses a number
of activities to deliver its
products and services to
their customers. In a
restaurant business, food
preparation is an important
activity above all other
processes (Scarborough,
2016).
 At Burger King also
customers can see their
food while preparing,
however McDonald's
uses more standard
process of preparing and
delivering food to their
customers.
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 This process at McDonald's
is completely transparent
and customers can easily see
how their food is being
prepared.
Physical Evidence:
This factor of
marketing mix
consists of those
elements that are
physically present and
customers can take
experience of it.
These evidence leave
impressions on
customers mind and
also helps in market
positioning.
 McDonald's focuses on
clean and hygienic interiors
for its outlets as well as
maintain proper decorum at
its food joints (Jones and
Rowley, 2011).
 McDonald's large and
attractive symbol which is a
marque in golden yellow
colour, make its customers
recognises their outlet in
many and also its Mac Man
sitting outside its all outlets
attracts its customers. It is
necessary to have good
physical evidence of the
company and McDonald’s
have that which result in
achieving them their
strategic marketing
objectives.
 Burger-King provides
healthy and clean
environment to its
customers as well as uses
attractive interiors for
their customers.
 Burger-King also
provides different
recognizable articles like
its crown which make the
customers feel like king
there.
TASK 3
P4 Developing marketing plan
A marketing plan is a operational framework to outreach and advertise for generating
leads and to achieve its target market. It interacts with other business operations of McDonald's
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in several ways that it provide marketing research to support pricing decisions at McDonald's and
also analyse its new market entries. It can also helps in tailoring McDonald's message to different
demographics and geographic segments. In addition to this, this can help in selecting platform
for promoting product or services of McDonald's like broadcasting, print media or mix of them
(Pappas, 2017). Marketing plan set success metrics and results reporting timelines and is based
on a McDonald's overall marketing strategy. The McDonald's company have launched a new
product as Coke McFloat in a few of it stores for which its business strategy consists the
following aspects:
Overview: By launching a new product, McDonald's has objective to serve all over the
world with low cost and quality food as well as market development by making necessary
change in their products and other marketing mix.
Mission: McDonald's mission is to become its customers favourite place and adopt all the
necessary changes to provide them in a way they eat and drink. This shows the importance of
customers as being a main focus of their business as well as maintaining its services and quality
to influence customer's purchasing decision positively.
Vision: McDonald's vision is to move the company with a speed to drive profitable
growth and become more better everyday in serving more customers with delicious food around
the world (Rancati, Gordini, and Capatina, 2016).
Goals: To become world's largest food company, McDonald's goal is to bring different
strategies and serve fresh food with simplicity.
Objectives: The SMART objective of McDonald's while launching their new product
McFloat is as following: To launch McFloat Coke in stores and earn 15% ROI of the product within 6 month.
SWOT analysis of McDonald's:
Strengths:
Strong global brand: McDonald's has a strong global brand image which will be
advantageous for the company as it will take less time and cost in its marketing or advertising.
Diversified income: McDonald's is located in every part of the world, due to which less
input will be required for new launch (Pike, 2015).
Weakness:
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Company focus: McDonald's have very less or no concentration on providing organic
foods to their customers in currently changing scenario.
High employee turnover: Most of employees in McDonald's are unskilled and low wage
earner and this may lead to lower performance which again can be hurdle in the path of
inaugurating new product.
Opportunities:
Upgraded menu: McDonald's biggest opportunity is that it can expand its menu by
adding new products with relevant innovative ideas that are in high demand.
Expansion plans: McDonald's having global approach, it can expand its market and
open more outlets in many of the countries to increase its market and profit.
Threats:
Competition: In food sector, competitors are biggest threat for McDonald's as they can
expand their business and serve in more attractive manner which will influence customer's
decision making.
More health-conscious customers: With increasing awareness of health and being fit,
customers are demanding more healthy food rather than fast food or junk food for them as well
as for their kids.
Ansoff Matrix: This matrix suggests that a business can grow by attempting either by
entering into new market, new product line and either by being in existing product or existing
market (Pike, 2016). This matrix is a series of growth strategies which set the direction for
business operations.
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(Source- Product-Market Ansoff Matrix, 2018) Market Penetration: This strategy is when a company expand in existing market with its
existing products. Product Development: This strategy is applied when a company bring new product in its
existing market. This is a strategy adopted by McDonald's while launching its new
product Coke McFloat. Market Development: When a company enters in new market with its existing product for
growth it lies under market development (Wirtz, 2012).
 Diversification: When a company launches innovative product into new market it refers
to diversification strategy for growth.
In context of McDonald's McFloat Coke, here most suitable market growth strategy is
product development which allows them to launch new and innovative products in their existing
markets.
Segmentation: McDonald's has segmented its market on the basis of geographic,
demographic, psycho-graphic and behavioural traits depending on differences in their needs and
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Illustration 2: Product-Market Ansoff Matrix

wants. The new McFloat, McDonald's have segmented its customers in demographic and
psycho-graphic manner.
Targeting: McDonald's expands itself by targeting specific number of franchises that it
will open in a particular nation and can increase depending on demand. Currently, McDonald's
values exceed borders and cultures (Purvis, 2015). The new McFloat currently has target
customers as kids, adolescents and youngsters who like to try new and different products at
times.
Positioning: McDonald's can make its positioning by doing CSR activities, sponsorships
and such other activities which create its image on customer's mind. To make positioning of its
new product McDonald's is using attractive advertisements, deals and offers as well as
sponsorships in different events.
Marketing Budget:
Marketing budget
Particulars
1st year
(in £)
2nd year
(in £)
3rd year (in
£)
4th year (in
£)
5th year (in
£)
Initial money 6000 8500 12000 14500 18350
Investment 14000 25500 32000 13500
Total 6000 22500 37500 46500 31850
Marketing outlay
Promotion 6500 3200 4300 3300 3250
Sales publicity 2200 2100 3300 2200 2000
Direct selling 4200 2500 6000 3000 4650
Total 12900 7800 13600 8500 9900
7Ps of marketing are as follows:-
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 Product – McDonalds is offering vegetarian as well as non-vegetarian both type of
products along with beverages and frozen desserts by keeping in mind their customers
with religion or culture. Moreover their products are affordable for every type of people.
 Price – Price of Products are affordable easily affordable for everyone.
 Place - McDonald is located in prime locations mainly is malls, shopping complex as
well as almost in all the big cities.
 Promotion – Respective organisation use promotional technique mainly for children and
their tool is “Happy Meals” in which small toys are given along with meals.
 People – They have uniform standard for treating their employees equally as well as they
have fast and friendly services.
 Physical evidence – Their physical evidence is good because of location, infrastructure,
and staff members.
 Process – Their food processing is clean and safe.
CONCLUSION
From this project, it is concluded that Marketing plays crucial in business growth and
success and have great role and responsibilities in achieving company goals and objectives. It is
also examined that marketing is interrelated with other department and operation of company.
Along with this, it is found that marketing-mix of product and services offered by a company can
influence its planning processes and marketing decisions. However this report also determines
the effectiveness of marketing mix at organisation to capture more market and serve better to
their customers with revenue generation. In addition to this, report also carries business plan that
assist the company in launching their new products in the market.
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REFERENCES
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Online
How to use the 7Ps Marketing Mix. 2018. [Online]. Available
through:<https://www.smartinsights.com/marketing-planning/marketing-models/how-to-
use-the-7ps-marketing-mix/>.
Product-Market Ansoff Matrix. 2018. [Online]. Available
through:<https://www.edrawsoft.com/template-marketing-ansoff-matrix.php>
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