Marketing Essentials Report

This report explores the fundamentals of marketing, analyzing the role of a marketing manager, the interrelation of marketing with other departments, and its value within an organization. It then compares the marketing mix of McDonald's and Subway, highlighting their key differences. Finally, the report evaluates McDonald's marketing plan, examining its mission, vision, strategic objectives, products and services, market research, target market, and marketing mix.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1. Introduction to the concept of marketing ..........................................................................1
2. Marketing process deals with following steps....................................................................1
3. Role and responsibilities of a marketing manager.............................................................2
4. Marketing influences and interrelates with other functional departments of the organisation
................................................................................................................................................3
5. The value and importance of the marketing role in the context of the organisation..........4
6. Conclusion of interrelation between marketing and other departments.............................4
TASK 2............................................................................................................................................5
7. Comparison between marketing mix of Mc Donald's and Subway...................................5
TASK 3............................................................................................................................................8
8. Evaluation of marketing plan.............................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Marketing is termed as exchange of relationship between business and consumers. It is
used to acquire, retain and satisfy target customers and includes different activities or action for
promoting, advertising and selling products of enterprise (Pike, 2016). This report is based on
Mc Donald's, a fast food company founded by Richard and Maurice Mc Donald's. It is world's
largest fast food restaurant chain in terms of revenues. This organisation sells French fries,
chicken products, soft drinks, milkshakes etc. to its target customers. It earns revenue from
royalties and fee paid by franchisees. This project includes roles and responsibilities of
marketing and its relation with other functional departments. It also consists marketing mix of
Mc Donald's and its comparison with its rival Subway, marketing plan is also explained in this
report.
TASK 1
1. Introduction to the concept of marketing
Marketing plays vital role in organisations for analysing, identifying, promotion of goods
and services to serve consumer in order to earn revenues from business activity. Away from this,
marketing functions in food and beverages sector has kept its focus on promoting products and
services that are promoting hygiene among civilians of different nations. On the other hand, if ti
is talked about future, Artificial intelligence (AI) will be one of crucial factor that will aid in
marketing products in competitive market (Scarborough, 2016). In context to Mc Donald's’s,
initially they came with non veg products, but then they have thought of diversion, company
have decided to deal in vegetarian products like Mc puff, Mc aloo tikki for Indian consumer’s
Their motive is to provide best fast food eating experience at reasonable price to customers.
2. Marketing process deals with following steps
 Individual need to analyse opportunity and prepare targets according to marketing
procedures.
 Analysis competitors then maintain mission, vision, goals and objectives.
 Starting organisation with new tactics and strategies to communicate with consumer.
 Take corrective action to implement plans and then follow up.
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3. Role and responsibilities of a marketing manager
Marketing information system:- In today's business world to beat competition, marketing
of manager of organisation should be develop effective policies related to adaptation behaviour
of technology and innovation for its employees. Changes in trends and taste of customers due to
rapid change in marketplace develop economic of scale. These dynamic changes create big
impact on consumer’s lifestyle. Outcome of these changes leads to complete needs and wants of
people in large way. In context to Mc Donald's, adaptability of such technology will
reduce their paper work and help in assessing their workers daily report on hourly and
monthly bases.
Product designing and development:- Consumers attention can be grab when goods
packaging is tempting. Selling of quantity will increase when production of products will attract
consumer attention (Pappas, 2017). By providing unique range of commodity which will aid to
consumer satisfaction. It is required for Mc Donald's marketing manager to recognising
consumer demand through feedback, survey and observation will leads their fulfil their actual
needs and wants appropriately. It is a complex task for launching new products which requires
innovation, proper concept for introducing fresh goods.
Marketing planning:- This mental process is basically done in every organisation to
achieve goals and objectives effectively and efficiently. To fulfil these targets involvement in
increasing market share, require industry presence and strategies to dominate other company
products is required. In context to marketing manager of Mc Donald's, thought process involve
offering new seasonal products with low price according to the demands of consumers as
customers only show interest when value is added to existing products. Promotion which is a
function of marketing manager plays a crucial role in this type of responsibility. It is required for
manager to promote products so that sales can be improved of Mc Donald's.
Distribution channel:- This channels allows companies to provide their goods and services
to various countries to serve customer and earn profits on time. Channelling of food plays vital
role because through this organisation can facilitate their supply to ensure availability of goods
on timely bases. In respect to marketing manager of Mc Donald's, where company's outlets are
present at various places where people can spend their time and consume fast food of their
choice and taste in reasonable price (Malhotra, 2015). it is required for manager to focus on
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distribution of products and services that they have modified as per the requirements on the basis
of more populated areas to less ones.
4. Marketing influences and interrelates with other functional departments of the organisation
Marketing is a process of movement of goods and services from concept to consumers. It
is used to keep customers satisfy by providing desired products which can fulfil their needs. This
includes promotion, selling, market research and advertising of products and services. Business
divides its all functions and core activities into different departments according to their
specialization. Mc Donald's has different functions or department for conducting their activities
in an efficient way to achieve goals and objectives of organisation. Company has different
department of functions like Marketing, Finance, Human resource, Production, Sales etc. All
these departments are interrelated to each other for smooth functioning. Relation between all
these departments are described as below:
Production & Marketing: Production department of Mc Donald's is highly dependent on
marketing department for producing products and services which can satisfy consumers.
Marketing function identifies consumers’ needs and demands, their reviews about existing
products. It directs production function to modify and innovate products in order to satisfy
customer demand and increase customer loyalty (Lane, 2015). This helps production to increase
productivity and organisational performance. Manufacturing department can increase quality to
attract new customers and retain existing consumers. Marketing identifies number of orders
generated so that production can meet delivery of products and services within required time
frame.
Marketing & HRM: Both functions are tightly connected with each other. HR
professionals of Mc Donald's are much interested in future and current staffing process to fulfil
requirements on time. Marketing provide relevant information about employee's requirement and
staffing need that is helpful in conducting promotional and advertising activities. They also
provide information about cheap sources for recruiting employees. Through this accurate
information HR of Mc Donald's receives opportunities in evolving target employees segments
and recruitment strategies. On other hand HR manager inform to about organizational purpose,
goals, ethics, employee's induction to marketers. Human resources provides an opportunities to
marketing department to better understand employee's behaviours, assumption and their values to
enable them in achieving success.
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Finance & Marketing: These two departments work together to enhance market share
improve profitability of an organisation. In case of Mc Donald's these two functions are pillar for
growth. Without marketing activities finance department cannot earn profits and without finance
or funds, marketing department will not be able to perform any promotional and marketing
activities (Kladou and et. al., 2016). By performing research marketing helps finance department
to identify cheap financial resources from where they can arrange funds for performing different
activities of business.
Marketing and Sales: These are two separate departments but directly connected by their
functioning influences such as promotion, advertising, and CRM activities. Marketing activities
of Mc Donald's encourage to build better relations with fascinate customers by newspapers, trade
shows, emails, and adequate knowledge of seasonal offers through marketing activities. These
activities facilitate to sales department in increasing sales and enable to turn lead into a profits.
Sales manager gives information about potential customers area and their specific requirement
related to products and services. That helps marketing for segmentation, preferences, pricing
strategies, promotional plans and product's features.
Thus, from above mention relationship it is identified that all departments or functions of
Mc Donald's are interlinked. Different functions help marketing to satisfy customers and increase
consumer loyalty by providing them quality of goods and services. They help marketers to form
new strategies that can be helpful for achieving goals and objectives by increasing profitability
and productivity (Hair Jr and et. al., 2015).
5. The value and importance of the marketing role in the context of the organisation
Marketing plays a crucial role for Mc Donald's as present world is filled with high
competition. Therefore, it can easily be said that marketing department of Mc Donald's is
carrying various important role like identify customer's needs, evaluate products which are being
offered by company. Then satisfy consumers with the help of modifications which is needed to
be made in products as per the requirements. Through this, customer loyalty Md Donald's with
its consumers can be improved.
6. Conclusion of interrelation between marketing and other departments
Thus, it has been concluded that if relationship among marketing and other functional
departments will be effective in nature, then it may lead Mc Donald's to attain goals and
objectives in desired time frame. This may help organisation to improve sales, productivity and
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profitability as well at the same time. Here, it is required for marketing manager to take
initiatives so that smooth working can be done.
TASK 2
7. Comparison between marketing mix of Mc Donald's and Subway
Marketing mix is the foundation model of marketing and it could be defined as the
different marketing tools that a company or organisation uses to reach the marketing goal of their
organisation. The comparative analysis of marketing mix of McDonald's and Subways is as
follows:
Basis McDonald's Subway
Product McDonald's main selling
products are double cheese
burger, snack wraps, premium
salads, different variety of
burger and food items,
McDonald's offer different
variety of food product in
vegetarian and non- vegetarian
menu with beverages and
some frozen desert,there
product care for the sentiments
of customer while making
separate cooking areas for veg
and non- veg foods.
Subways main product is
submarine sandwiches. In
addition to sandwiches, the
restaurant also offers a wide
variety of salads, kids packs
and drinks (Cavusgil and et.
al., 2014). Subway's unique
strategy is the do it yourself
approach. It gives its
customers the option to
customize their sandwiches
with different type of breads
and vegetarian or non-
vegetarian options.
Price The pricing of the product of
McDonald's is quite affordable
and it offers decent pricing for
some specific products, and
comparative higher pricing
for their premium product. It
offers psychological pricing
As Subway is a global
restaurant, prices of its
products are different in
various outlets. Its products are
premium priced as they use
higher quality ingredients in
comparison to its competitors.
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that makes there consumer
think that there product are
cheap (Campbell, Martin and
Fabos, 2018).
The quantity of the contents of
sandwich and the lower calorie
intake justify their prices.
Promotion McDonald's does its promotion
through different methods such
a merchandising, door-drops
etc. and advertising through
televisions,cinema,hoardings
etc. They have large number of
deals from sponsor like FIFA
world cup, Olympics etc.
They mainly focus of the
children by giving them
“Happy meals” along with
small toys to them.
Their primary way of
promotion is television adverts
using famous celebrities.
Subway use athletes like
American football player
Robert Griffin III , Olympian
Michael Phelps, football
legend Pele to promote its
products. Subway's slogan
“Eat fresh” is justified as all its
products are freshly baked and
cooked with high quality
ingredients (Baker and
Magnini, 2016).
Place McDonald's are generally
located in some prime location
like in cinema halls, shopping
complex,malls etc. take away
facilities are also available at
some of their outlets. These
are situated mostly in the
urban areas where customer
can easily access their
location, they generally covers
residential areas where people
can come easily.
Subway outlets are found all
across the globe. They are
available in airports, shopping
malls, amusement parks,
business centres etc. Their
website has a ‘Find our stores’
section where the nearest
outlet can be found by putting
postal code, country or city.
Most of its stores provide take-
away services. They also offer
home delivery services in
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some countries.
People The restaurant invest larger
amount of money in training
and development of their
workers every year the main
objectives of McDonald's in
people is to address all the
issue related to customer and
their workers. They have the
particular uniform for their
workers so that they can
maintain equality in the giving
the services (Malhotra, 2015).
The major focus of Subway is
on maximum customer
satisfaction as it has millions
of customers worldwide. The
management looks for skilled
and enthusiastic people to join
their team. The jobs are
majorly of three types:
headquarter jobs, local
restaurant jobs and regional
jobs. Anybody can explore the
career opportunities by visiting
the nearest store or browsing
the company's website.
Physical evidence The physical appearance of the
restaurant does make effect on
the impression of the
customers and also they affects
different function of business
operations and there mascot
Ronald McDonald is always
present at each of their outlet
In McDonald's physical
evidence generally refers to
the location of site and if it is
good enough the people would
be attracted to it .It generally
focus on the cleanness, speed
of operation, overall quality of
Subway spends a large sum of
money on the overall
appearance of the brand and
products. The logo is made of
bright colours like yellow and
white which attracts people,
especially the younger
generation. Subway stores are
generally small when
compared to its rivals. The
colour scheme in all the outlets
is mostly Green. Most of the
restaurants have the smell of
freshly made cookies that
easily attracts the attention of
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the product and transparency
of their product to their
customer (Pappas, 2017).
people. Their staff is courteous
and properly dressed in
common uniform.
Process The process of the McDonald's
includes new methods of
packing and product
distribution. They also allows
their consumer to enter their
kitchen so that consumer can
know about what they are
consuming. Process also
includes the invention of
different cooking equipment
through which overall process
of operation could become
effective.
Its process includes packaging
and maintaining the quality of
its products. It has the option
of providing customised
sandwiches to the customers.
The company focuses on
reducing the waiting time for
serving an order and making
available the customised
orders of the customers as
quickly as possible.
TASK 3
8. Evaluation of marketing plan
Marketing plan - It is a detailed document that shows company's marketing planning
and objectives to be achieved. It is basically a blueprint which reveals the how a company will
implement present and future strategies and defined their goals and objectives either to launch a
new product or acquiring new market or segment (Pike, 2015).
Company overview - McDonald's is a reputed American fast food brand. It is the world's
largest fast food chain by revenue, serving over 69 million customer on the daily basis over 120
countries. McDonald's is well-known for Non-veg foods like chicken products etc. and French
fries. This mega fast food chain has over 36899 outlets all over the world and setup in almost
120 countries.
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Mission & Vision - Mission statement is “to be our customer's favourite place and way
to eat and drink.” Vision statement is “Where the world buys more McDonald's than any other
fast food.”
Strategic objectives - Strategic objective is regarded as highest goals of the organisation
or an individual to be achieved. McDonald's wants to increase their market share in all over the
world by expanding fast food chain system. They are looking for adding 50 more outlets in
different countries with an aim of delivering best fast food eating experience (Smith, 2017).
Products & Services - Products of McDonald's are Mc-burger, French fries, puffs and
combo and happy meals to their customer's. Product line includes both veg and Non-veg fast
food. McDonald's are looking for adding new product in their portfolio. This step has taken to
expanding and targeting customer base with different food choice and taste preference.
Market research - A brief marketing research shows that McDonald's has loyal customer
base with exact food and taste choice. There is a need for customer allocation according to the
food preference and decision of the customer.
Target market - McDonald's aims to offer friendly and fun environment for everyone.
This means appealing to the families and customer who loves iconic choices of food. They also
deliver go-on-the breakfast and enjoy eating with music. Marketing strategies of McDonald's are
as follow:
Segmenting - McDonald's uses demographic strategy which includes targeting customer
on the basis of age, income, family and occupation. McDonald's targets both individual, couples
and family for their products. They offer Happy Meals to the family and different customer
preference. Basically, they also focus on people who loves eating while listening music and likes
fun environment rather than eating in any typical restaurants (Purvis, 2015).
Targeting - McDonald's does not have any specific customer choice. They generally
targets all age group of food eaters and customers. For kids, they target mothers because mom's
are health conscious about their kids and child and for young and adults, they targets all those
who likes eating while listening different zone of music and fun spending time. Hence, it was
noticed that Young and adult are most important customer base for the McDonald's.
Positioning - Positioning can be achieved by manipulation of the marketing mix(4P's).
McDonald's uses adaptive type of product positioning and in accordance with this, they are
engaged in re-positioning it to change in the customer segment.
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Marketing mix -
Price - McDonald's uses combination of Bundle pricing strategy and psychological price
strategy. In bundle pricing, McDonald's offers meals and other food product bundled in one
common price that is discounted as compared to buying each item separately. In Psychological,
company uses common prices such as Mc-Burger plus Coca-Cola in just £23.99.
Product - McDonald's has product mix which has following main products: hamburgers,
chicken and fish, beverages, dessert and shakes and Mc Cafe. They are looking for new product
development either targeting same segment or find new customer base (Rancati, Gordini and
Capatina, 2016).
Place - McDonald's distributes their products through Restaurants, Kiosks, McDonald's
mobile apps and websites and portals.
Promotion - McDonald's uses advertising, sales promotion, public relations and direct
marketing as a promotional mix. Advertisements are the most notable among McDonald's
promotional tactics. The company uses TV, radio, print media and online media for their
advertisements. They offer Happy Meals and Combo pack at reasonable and affordable prices.
This leads to customer attraction towards McDonald's products.
Budget - McDonald's has set an advertisement budget of $2 billion for their marketing
plan all over the globe It includes marketing promotion for new product launch or new target
market. Monitor results - It is analysed that McDonald's is looking for new market
expansion by setting up 50 more outlets by second quarter of year 2019. Accordingly, specific
budget has set by company to tackle any shortfall and uncertainty during the process.
McDonald's needs more to understand taste and preference of the customers in order to grow
more. It is advisable that McDonald's can go for launching festive offers depends on different
culture and environment of the countries (Scarborough, 2016).
CONCLUSION
From the above report it can be concluded that marketing plays an important role for
every business. Marketing has some roles and responsibilities that helps in marketing
information system, product designing and development and preparing marketing plans.
Different functional departments are interrelated to marketing for performing their activities and
in formation of various strategies in order to achieve goals and objectives of organisation. This
report also examines the difference between marketing mix of company with its rival business to
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analyse their marketing planning processes. This will help business to improve their processes
for being competitive. It also explains marketing plan for achieving goals and objectives, it
includes mission & vision, products and services, organisational objectives, market research,
target market and marketing mix of company.
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