Marketing and Functions of McDonald's Pizza

The assignment provides an overview of McDonald's vision to introduce a new product, pizza, and expand their business globally. It explores the essential functions of marketing and the marketing mix strategy employed by the company to promote its brand and product. The report also references various books and journals on marketing and hospitality management.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. The key roles and responsibilities of the marketing function for the chosen organisation...1
P2 Roles and responsibilities of marketing with wider organisational.......................................3
TASK 2............................................................................................................................................5
P3 Comparison of application of marketing mix by various enterprises....................................5
P4 Marketing plan for enterprise.................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10
.......................................................................................................................................................10

INTRODUCTION
Marketing is an activity to create, promote, and deliver the goods and services which is
value for the customers and the company. The marketing essentials is the exchange process, in
which two or more parties give something of value to each other to satisfy needs. It is associated
with the buying and selling of the products (Brooks and Simkin, 2012). This report is on
McDonald's, which is an American fast food company , established in 1940. Its headquarters is
in Chicago, Lllinois and UK.
In this report, the key roles and responsibilities of the marketing function and marketing
related to the organisation. The ways are compared in which organisations use elements of the
marketing mix (7Ps) to achieve objectives and how does it differ from other organisations. Along
with this the development and evaluation of the basic marketing plan of the organisation are
explained in this report.
TASK 1
1.Introduction to the concept of marketing, including current and future trends.
Marketing is concept of pricing, promotion, and distribution of goods and services to
satisfy the customers and the organisational objectives (Functions of marketing, 2017). It is the
process of exchange among persons and the social groups. By knowing the current and future
trends of marketing helps the marketing manager of McDonald's to understand the marketplace
and the consumer needs.
Current trends of marketing
 Mobile Marketing: Earlier mobile marketing was less but in current scenario it is
mostly used in the organisation. Currently McDonald's are also using this as they offered
mobile order-and-pay and also launch its own app so that large number of customers
prefer mobile marketing.
 Online performance marketing: Online performance marketing is the performance
based on cost per action which is much broader in advertising. McDonald's presently use
this marketing trends by advertising and digital marketing campaigns.
Future trends of marketing
Some future trends which helps the McDonald's to grow in the market in future:
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 Instant messaging: Instant messaging is the new tool for communicating with the
customers directly on a one-to-one basis. McDonald's as a brand which helps them to
communicate with the customers but they don't want to receive the daily spam. So, they
have to be little careful (Baker and Magnini, 2016).
 Mobile money: Mobile money is an electronic wallet services which allows people to
receive, and spend money using a mobile phone. McDonald's planning to add the
mobile money in the Apps.
2. Marketing Process
Marketing process is the way to analyse the market opportunities, select the target market,
develop the marketing mix and marketing efforts of the management. Mc Donald's follow the
process which modelled in a following steps are Situational Analysis, Marketing strategy,
Marketing Mix Decision and implementation and control.
3.The key roles and responsibilities of marketing function of McDonald's
Marketing function is the functions starts with identifying the consumer needs and ends
by satisfying them. The marketing department of Mc Donald's plays various roles and
responsibilities which helps the organisation to operate and promote effectively. Some are
mentioned below:
 Selling: This is related to formation of different strategies that help in increasing sales of
the produce product. Companies uses different distribution channels to sale and deliver
their product to customer and satisfy them. MacDonald's applies various types of selling
channels that help them to sale their product easily and generate revenue. Cost effective
channels should be used by company as this helps in decreasing the final price of product
and supports in encouraging so many individuals to go with company's product.
 Financing: To carry essential business activity it is very necessary to have sufficient
amount of finance. Adequate amount of capital assist companies to carry their business
activity in effective manner and produce more product. In MacDonald's marketing
manager are responsible to determine the fund that are required to execute various
promotional and production process which support in attaining of set goals. This help in
expanding business operation in an effective way and increase profit (Draelos, 2010).
 Distribution: This is the process that is related to transfer of goods and services from
storehouse to final customer. MacDonald's uses different type of distribution channels
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that deliver produce goods to the ordered customer. Cost effective transmission increase
net income of company and make sure timely delivery of goods. Effective distribution
channel assist in rewarding the consumers and supply competitive profits to firm.
 Management Information System (MIS): This process is related to gathering of useful
information data and formulate polices according to the collected data. Marketing
department collect useful information related to customer attitude, behaviour, taste and
trends that aids in making effective strategies to make decision. MIS report helps in
storing lots of data related to the market condition.
4. Marketing influences and interrelates with other functional departments of the organisation.
Conception of marketing is wider in manner, as it consists assorted activities transfer out
by company to create and support a large amount of consumer for longer period. Activities
execute by this section impact the different operations of company. This also make the manager
communicate about the scheme utilization of its rivals and this support company in formulating
better policies to deal in competitive market. Relation of selling division with other purpose of
firms is given in following points:
Marketing department with operation department:
Operations and marketing department is one of the most important part for every
organisation and have link between these two department. One division that is responsible for
carrying research and gathering information about the needs and wants of customer from
different areas is marketing department (Durmaz, 2011). Whereas the operation department are
responsible to produce product according to the collected information by marketing member.
This interlink of division helps company to produce goods that will provide more satisfaction to
customer. In General marketing department gather applicable data and supply the same to the
procedure department which alteration the effectiveness of production operation.
Marketing function and Human resources department.
The role of human resource management is to maintain peace and develop understanding
among each employees working within an organisation. Staff member are responsible to carry
various activity in company that help in better growth and increase the profitability of business.
HR department usually responsible to train their exiting employee and hire skilled person that
will increase the production process and support company to grow. Marketing department settles
the property and function of goods. After that firm arranges training promulgation for worker so
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they can make products as per the special requirements of buyer. All this help marketing
department to do promotion of company's products for attract large number of customers to
purchase the same (Eslinger, 2014).
Marketing and sales departments:
Sales department is responsible in applying different selling approaches and making
effective strategies to sell companies product in market. Companies adopts different promotional
activities then it increase the number of company's customers and straight increase the
effectiveness of sales department. It is interlinked with the marketing department as they support
sales manager in attaining definite goals and support them in increasing the efficiency of
manager. It has been observed that marketing division gives supports to sales department to
reach the predefined sales objective by producing and selling right goods to right customers. This
result in instantly increase the profits of company and make sure that it will survive in long
term.
IT department interlinked marketing function.
Introduction with new technology helps company to boom their production and helps to
increase their profit. The IT department of companies are responsible to handle thing when new
technologies and technicians are being applied to produce a product. Marketing department is
related to IT division in a way that help them to provide necessary information about new
technology introduced in market. This not only help in satisfy the needs of customers but at the
same time provide competitive benefit to company. In General, marketing department collect
relevant information and gives the same to the business activity department that increase the
effectiveness of production procedure.
Marketing department with finance department :
Marketing department and finance department both are main department of any
organisation. Marketing department engaged in activities like promoting, pricing, warehousing
etc. although the finance department engaged in activities like billing, recording of financial
transactions and preparation of financial statements. But these transactions are linked with each
other as the expenses incurred in promoting, warehousing, advertising etc. are comes under the
marketing and recorded under the finance department, as due to advertisements are too expensive
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now a days (Papasolomou and Melanthiou, 2012). So these expenses shows in balance sheet as
fictitious assets and charged from the profits of several years, hence marketing department
transactions are the part of finance department that is why they both are linked with each other.
5. The value and importance of the marketing role in Mc Donald's.
Marketing role is essentials for the organisation as it attract, convince and inform the
individuals about the company services and products are valuable for them. It is important for
every firm whether a profit or non profit organisation as it provide confidence to introduce a new
product in market. Any product introduce and end with the marketing function. These functions
of company is responsible for the interaction with consumers through feedbacks, branding of Mc
Donald's, also is a sources of revenue and income and advertisements. Some more marketing role
in Mc Donald's are helpful to make effective decisions, creates employment, and also maintain
and raise the standard of the company.
6.The significance of having effective interrelationships between different functional
departments
Interrelationships between different function department in Mc Donald's which are mentioned
above have certain significance like produce goods which provides satisfaction to customers,
gives knowledge and information about new technologies, increases the profits of the company,
helps in promotion of the product to attract the customers, to produce the great results for the
future of the organisation.
TASK 2
7. Comparison of application of marketing mix by various enterprises
Marketing mix is the mixture of four major elements that are product, price, place and
promotion. It is used by organisations to reduce their workload and to make path for the
achievement of objectives. Elements of marketing mix always remain constant but various
organisations can use them for different perspective. Three more factors are added in the
marketing mix which is used by the companies. These are people, process and physical evidence.
These factors are used by companies in order to generate profits and determine competitors. A
comparison of marketing mix of Mc Donald's and ALDI is as follows in which all the relevant
points are discussed:
Basis Mc. Donald's ALDI
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Product Mc Donald's is dealing in food and
beverage items and provide various
verities that helps to target all type of
customers. The taste of the products is
very good and that helps to acquire
people from different regions. They
improve their product by providing more
options and flavours to the customer's.
It is a famous retail sector in UK and
running its business successfully. ALDI
is delivering various food products to
the customers to acquire higher market
share. Products sold by the company are
of good quality and build good market
image so that the business can be
expanded all around the world
successfully.
Price McDonald’s search for the best
locations in the market to provide their
consumer with comfort. They build good
restaurants in airports, malls, toll ways,
and colleges. By using more techniques
they optimise their price.
Company sets appropriate prices for the
products and use penetration strategy
for the pricing. It helps to remain
competitive in the market. Company set
prices according to different customer
segments in which products are
launched separately. It is done for the
profit maximisation purpose (Perreault,
2010).
Place The company is operating its business
all around the world and the location
chosen by the organisation is easy to
access for the customers. Good and easy
to reach place can help to attract large
number of customers. As it opens it
franchises all over the world but should
target those place an area where people
are in large numbers.
Place refers to the location of the
enterprise which is required to easy
access for the customers so that they can
reach there easily. If company is having
right place to operate its business can
help to reach wide rage of customers.
Promotion Mc Donald's is using effective
promotion strategies to enhance the sales
ALDI is providing good discounts and
coupons to its customers that can be
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and to expand the business all around the
world. It helps to set a positive image in
the mind of customers. The company is
providing various benefits to its
employees and customers which helps
the company to attract more and more
customers. It also provides good deals to
all type of customers whether they are
from upper class or lower class. They
should not only promote through
digitalisation but use more techniques to
do promotion.
retained on their next purchase.
Company is using aggressive
promotional strategies to enhance sales
and profits to attain organisational
goals. Good promotional activities helps
the company to grab growth
opportunities.
People Employees who are working in the
company give their opinions, thoughts
and support that contribute in growth of
firm. This serve as internal competitive
benefit to firm and largely impact on
business's position in market. Skilled
employees help and support organisation
for better performance (Scarborough and
Zimmerer,2012 ). The first preference is
given to the employees of the
organisation is order to attract more and
more customers. In Mc Donald's proper
training is provided to the employees to
enhance their skills and knowledge so
that they can fulfil all their duties. With
the help of proper training employees
can work effectively and they can
perform their tasks appropriately.
The organisation is having good staff
who is well educated, skilled and having
good knowledge of market. They are
responsible to manufacture all the
products that are going to be sold by the
company in coming period. It is very
important for the enterprise to hire
skilled employees in the company who
can perform all the work effectively.
When company hires good and effective
employees than they may able to
provide effective opinions to enhance
organisational competitive advantage.
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Process The food manufacturing process at Mc
Donald,s is completely transparent i.e.
the whole process is visible to the
customers. In fact, the fast food joint
allows its customers to view and judge
the hygienic standards at Mc Donald,s
by allowing them to enter the area where
the process takes place. The customers
are invited to check the ingredients used
in food.
ALDI is adopting right and appropriate
process system in order to execute all
the business operations effectively. If
company is not bale to use all the
processes effectively than it may result
adversely and reduce the sales and
profits.
Physical
evidence
Mc Donald's is operating in various
countries all around the world. It has
helps the enterprise to expand its
business globally. Products supplied by
Mc Donald's are very good and the
quality is also very good. As it
expanding in all over the world but they
should provide the products online also.
Company is operating in more than
80000 stores and running business
successfully. It has established its brand
image and the customers do not want to
switch to other products or services.
Business to business which is often known as B2B is a approach allows an organisation
to provide or gain services from other businesses. ALDI is a super market chain which procures
products from various manufacturers. As working as a supermarket chain, ALDI has to procure
products from various producers which deals in goods of general utility. By using B2B approach,
this company purchases goods from wholesale businesses and then sell them to end consumers.
8. Marketing plan for enterprise.
Marketing plan is detailed plan in which all the information regarding the business is
recorded. If an organisation is willing to launch a business or a new product it is very important
to formulate a proper marketing plan in which the information of all the steps taken in
promotional activities is recorded. It should be changed by the managers in order to remain
competitive in the market. Mc Donald's is willing to launch a product or food item which is a
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pizza. For this purpose the company needs to make a marketing plan to attract higher number of
customers. The detailed plan is as follows:
Overview of Mc Donald's: It is an American fast food company which was founded in
year 1940 as a restaurant by Richards and Maurice Mc Donald in United states. Currently it is
operating all around the world and receiving good feedbacks from its customers.
Vision of Mc Donald's: Vision of the business enterprise is to provide best and quick
services to its customers who are from different regions by providing good and outstanding food
items.
Mission of Mc Donald's: Mission of the company is to be the favourite place for its
customers where they can spend their quality time.
For a company it is very important to formulate a marketing plan for all the activities
that are going to performed in future (Wieser, 2012). As Mc Donald's is willing to introduce
pizza in the market and it is very important for the company to manager all the promotional
activities so that higher market share can be acquired by them. It is also very important to
analyse the strength and weakness so that the information of competitors can be received. It can
be analysed by SWOT analysis which is as follows:
Strengths:
 It is one of the most strong point for company, that it is the leading brand name in food
and beverage industry. It has a strong brand name and brand equity position.
 It have covered most of the market in UK as well as in other parts of nation by providing
best quality of product to customer at faithful prices.
Weaknesses:
 This company faces lack of product innovation and have a menu that is heavy calorie.
 The main weakness of the MacDonald's is that there is no coordination between the HR
department and other division.
Threats:
 Poor economic situation in the global market is on of the major threats to MacDonald's.
 People all over the world had started eating healthy product, that reduces the sales of
company.
Opportunities:
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 MacDonald's have major opportunities to expand their business in Asian market and
innovate their product according to their taste.
 They have the option to make a partnership with other leading brand image that profit can
be increased.
Goals and objective: From the above analysis when threats, objective are defines. The
main objective of MacDonald's is to expand their business in almost every part of each country.
As a result it will become the most powerful and leading company in food and beverage
industry.
Marketing Research:
Marketing research is the information that enables the Mc Donald's to identify the data. It
is essential for the company to do accurate research so that they create the right mix and win the
loyalty of the customers.
Marketing objectives and strategy:
Mc Donald's creates the marketing plan to achieve the objectives. Marketing strategy is
about the how the objectives will be delivered, analyse the market actions, uses of resources and
how they work together within the organisation.
Marketing budget:
Particulars Amount
Initial investment 22500
Expenses:
Research and development 2500
Promotion using social media 3200
Other promotional activities 12500
Total 13600
Executive Summary:
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Mc Donald's is a leading fast food company in the market plan to introduce a new
product pizza. Its vision is to provide quick and best services for the customers according to their
taste. And also have the plan to expand their business all over world for that they make the
strategy, plans, and do the research to achieve the objectives of the organisation.
CONCLUSION
From the above it has been concluded that marketing and functions are essential for
promoting the particular brand or product. The study involves the procedure of marketing that is
marketing planning, marketing strategies, marketing objectives of the organisation. Also this
report describes the importance of the marketing mix to an organisation in context of promoting
the brand as well as product. In modern times the procedure of marketing mix is adopted and
followed by the various multinational companies because it provides a systematic procedure to
promote the brand and product both but, effective market strategies and its implementations both
are essential for successful marketing.
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REFRENCES
Books and Journals
Baker, M. A. and Magnini, V .P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management, 28(8), pp.1510-1534.
Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing Intelligence &
Planning. 30(5). pp.494-514.
Desai, S. S., 2013. An analysis of the competitive marketing strategies of the hospitality industry
in UAE. IUP Journal of Management Research. 12(1). p.22.
Draelos, Z. D., 2010. Essentials of hair care often neglected: Hair cleansing. International
journal of trichology. 2(1). p.24.
Durmaz, Y., 2011. A theoretical approach to the concept of advertising in marketing.
International Journal Economic Research.[23 Januari 2015].
Eslinger, T., 2014. Mobile Magic: The Saatchi and Saatchi Guide to Mobile Marketing and
Design. John Wiley & Sons.
Papasolomou, I. and Melanthiou, Y., 2012. Social media: Marketing public relations’ new best
friend. Journal of Promotion Management. 18(3). pp.319-328.
Perreault, W. D., 2010. Essentials of marketing: A marketing strategy planning approach.
Scarborough, N. M. and Zimmerer, T .W., 2012. Essentials of entrepreneurship and small
business management. Upper Saddle River [NJ]: PrenticeHall.
Wieser, P., 2012. Essentials of Logistics and Management, The Global Supply Chain (No. EPFL-
BOOK-197496). EPFL Press.
Online
Functions of marketing. 2017. [Online]. Available through:
<http://smallbusiness.chron.com/functions-marketing-business-32399.html>.
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