Marketing Essentials– McDonald's

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Roles and responsibilities of a marketing function in context of McDonald.......................3
P2 Roles and responsibilities of marketing with organisational context....................................5
TASK 2............................................................................................................................................7
P3 Marketing mix with two different organisational context.....................................................7
TASK 3............................................................................................................................................7
P4 Creating a marketing plan......................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is an essential process that is carried out by organisation in order to promote
their products and services to final customers to satisfy their needs and demands. It has broader
scope and plays a vital role as it helps in generating demands for particular products and helps in
fulfilling it in an effective and efficient manner. It consists of interrelated activities starting from
marketing research, innovative product development and transferring the important and
necessary information to potential customers (Baker And et. al., 2016). Company included in this
report is McDonald's, a fast food firm that is among the largest restaurants in world. They are
famous for hamburgers and other food items in the market place. Marketing function plays a
crucial role in this organisation as their basic purpose is to understand the demands of consumers
and work accordingly. This report focuses on roles and responsibilities of a marketing function
and its relationship with other departments of business organisation. Apart from that, assignment
also concentrates on the basic marketing plan that is developed by company.
TASK 1
P1. Roles and responsibilities of a marketing function in context of McDonald
The main purpose of marketing function is to find out the needs and demands of final
customers and produce such products that result in fulfilling their desires. Every business
operates in dynamic environment which keeps on changing with time and hence, it is very much
necessary to operate in accordance with the current prevailing conditions of market place.
McDonald’s is a well-established food restaurant and therefore, it is essential for them to work in
order to satisfy their customer's needs and help them to remain among the largest food outlets
(Desai, 2013). Marketing functions have certain roles and responsibilities that are described as
below:
 Market Research: This is considered as an initial phase of marketing function in which
relevant information is gathered that is prevailing in the business environment and must
be examined by company. This helps in taking effective decisions and perform actions
accordingly. Marketing manager of McDonald’s come to know about the tastes and
preferences of consumers so that favourable decisions can be taken. There are numerous
activities that are conducted in this phase that involve finding out the target audience and
group of people so that proper marketing research can be performed on them.

 Building of marketing plan: This is the basic aim of manager to build marketing plans
and procedures so that goals could be framed and develop path accordingly (Chamorro-
Mera, Miranda and Rubio, 2014). It helps in the formation of framework so that proper
strategies will get formulated in order to target work actions to that particular process.
Marketing manager needs to make sure that plans must be effective and in accordance
with McDonald’s vision and mission so that proper steps could be taken. It consists of
number of sequence of steps that must be followed in a conducive way so that ultimate
aim could be accomplished. Plans provide the right direction so that every activity could
be focused on that particular path and results in completing the purpose for which it is
formulated. Hence, planning must be done in a conducive manner by the marketing
manager (Dibb and Simkin, 2013).
 Product development: Marketing manager collects the relevant information about
several factors so that specific products will get developed in adherence to gathered data.
McDonald’s carry out this process very keenly and succeeded in developing such
products that lead to satisfaction of needs and wants of people. Product must be
developed in an efficient manner as it depicts the image of business organisation and
hence, it should be properly formed. Every product has certain features and
characteristics that include size, quality and other properties that have to be present in it.
Thus, efforts must be made to make continuous development in an appropriate way.
 Distribution of final goods to consumers: This is also an important role that is played
by marketing department which involves supplying the produced goods and services to
ultimate customers. In order to carry out such process, company has well set channel
through which company easily distribute the final products in market place. The products
must be distributed through correct and prospective way so that it could reach to final
customers in a proper time (Black, 2013).
 Lending customer support services: The role of marketing department does not end
after selling products to final customers but also provide better support to customers in
order to resolve their issues and complaints. This will helps in generating more profit.
This helps the marketing department to make changes and modifications that are required
in several key areas. It is necessary to remove any complaints and problems that are faced

by customers so that they will remain satisfied and contended with the organisation's
services.
 Grading and standardisation: Standardisation is the process that determines high
quality of products and services and every company focuses on producing “A” quality
goods so that consumers could not compromise on quality. Grading on the other hand
involves certain features and characteristics that must be present in product of that
particular business organisation (Hsu, 2011). Customers in today's market place are very
much focused on purchasing the standardised products. McDonald’s do not compromise
in standardisation and grading system.
Purpose of Marketing functions:
 Marketing always aims at taking decisions according to customer's needs and wants so
that their desires will get satisfied. Hence, marketing research is conducted by company
to examine the number of factors.
 McDonald’s always focus on developing their products with innovation and creativity
and therefore, it results in building effective image in customer's mind for longer period
of time.
 There are several functions which are included in the marketing process and thus, it is
required to carry out all such activities in a proper manner so that final objectives could
be accomplished (Asaduzzaman, Hossain and Rahman, 2014).
 Every business organisation aims for earning high profits and sustainability in the market
place and therefore, it is very much necessary to perform all functions efficaciously and
efficiently.
 Responsibilities and roles of marketing function must be properly coordinated by the
marketing manager so that aim and objectives of McDonald could be effectually fulfilled.
From the above discussion, it has been concluded that there are number of key roles and
responsibilities of marketing functions that are carried out in McDonald’s. Marketing manager
plays an essential role and carry out several activities in respect to it. The only objective is to
earn maximum amount of profit and revenue by increasing sales volume Therefore, marketing
function is considered as the building block of any business organisation and consist important
role which played and carried out by marketing manager in proper manner (Jones and Rowley,
2011).

P2 Roles and responsibilities of marketing with organisational context.
Large business organisation have several departments that are present and play distinctive
role according to its nature. Thus, it is necessary to coordinate their working process and
activities so that final aims could be achieved. Managers of different departments must focus
their work activities towards right direction so that no problem could arise and with coordination
they could work accordingly. Roles and responsibilities of marketing department with
organisation context are illustrated below:
 Human resource section: This department of McDonald concentrates on managing the
staff members of organisation in effective and efficient manner. HR manager play a
essential role in this department as he is responsible to draft policies, strategies in regard
to managing employees in proper manner. There are number of activities that are carried
out which involve training and development, recruitment and selection process, managing
workers. Both these departments are interlinked as HR manager have to hire marketing
team of McDonald by carrying out recruitment and selection process. On the other hand,
existing candidates are developed and trained so that their existing skills could enhanced
at sustainable level. Employees are consider important resource for any company
therefore, is the responsibility of management to develop them continuously so that they
could able to contribute to maximum of their efforts (Kennedy and Parsons, 2014).
 Research And Development Department: McDonald have well established R&D
section that focuses on examining the factors and elements that are present in business
environment. It assists the company know about the customer's needs, preferences so that
company could make decision accordingly. Marketing and R&D department functions
simultaneously as this section provide relevant information on various aspects to
marketing department and in result they carry out their work process accordingly. It is the
function of R&D department to continuously study the important factors and work
according to it.
 Finance Department: finance is consider most important resource to carry out number
of day to day business activities (Getnet, Kedir and Yousuf, 2014). Finance manager is
responsible for managing the funds in effective manner so that optimum utilisation could
take place and there is minimization of losses that can be incurred by the company
(Mihart, 2012). Marketing activities of McDonald require sufficient amount of funds that

include advertising, promotion, communication process and many others. Hence, proper
budget is developed that include key areas where finance is allocated in proper manner
that aims in carrying out all activities in effective way and keep on developing policies
and procedures of continuous improvements. It is necessary to have a proper coordination
between both these sections so that proper functioning of McDonald could take place. It
is crucial to determine important sections that require proper allocation of funds so that
the purpose could be achieved.
 Production and operation Department: This section of McDonald assists in carrying
out production process by producing goods in accordance to the demands that is present
in the market place. It always aims in optimum utilisation of resources that are present
with the business organisation and reduction of wastage so that whole work process is
conducted with proper management. There are several key areas that need proper
attention so that it could be performed in reference to ultimate aims and objectives of
McDonald. Production department have to comply with certain norms and standards so
products in order to satisfy the customer's needs and preferences. Consumers of present
market place always prefer standardised and high quality goods and services, this concept
is taken into consideration by this section of the company in proper way (Wirtz, 2012).
 Information Technology: This department is focused upon introducing advanced and
innovative technology system in the organisation so that whole work process is carried
out in conducive manner. There are number of tools and techniques that need to be
developed and formulated in organisation system. McDonald always carry out their
working process by implementing modern and innovative technology into the system. IT
manager play a important role in this department and coordinate with marketing
department by assisting them in applying innovative method of technology so that work
process could be performed smoothly without any hindrances and problems (Nguyen and
Simkin, 2012).
From the above discussion, it has been observed that there are several departments that
are present in single business organisation and play a certain roles and responsibilities. This is
very much necessary to coordinate their activities and working process towards particular right
directions so that whole company could function in effective and efficient manner. It is required

that management of McDonald must focuses on managing activities of all sections and final aims
and objectives could be accomplished in set time period (Ionitã, 2012).
TASK 2
P3 Marketing mix with two different organisational context
Marketing mix is a important process that involve some tools that the business
organisation adopts to carry out all their marketing activities in proper manner (Ogunmokun and
Tang, 2012). There are 7 components that is included in the marketing mix and contain certain
frameworks so that management could take decision accordingly. Initially, there were 4 factors
in marketing mix that involve product, price, place and promotion but after passage of time there
are 3 elements that are also included namely, process, people and physical evidence. McDonald
have to carry out their marketing function on the basis of these seven components that are
present in marketing mix. Burger king is consider one of the competitor of McDonald.
Comparison of marketing mix of both the companies are described below:
Basis Of difference Meaning McDonald Burger King
Product It refers to tangible
thing that has been
physically offered to
the customers that are
present in the market
place. There are
diverse type of
products that are
supplied by the
company according to
their target audience
(Jacobs, MacRa and
Sladyk, 2017).
McDonald is among
the largest fast food
restaurant. It is famous
for its hamburgers and
other food items like
cheeseburgers, hot
dogs, chicken
sandwiches. They also
have breakfast meal
offers. They also sell
beverages products
like shakes, soft
drunks, desserts etc.
Burger king have
burgers as their core
product. Their food
items include salads,
veggies, chicken,
fishes, beverages,
deserts and other
items. They have some
meals that are
categorised as kids and
value meal.
Price This component of
marketing mix defines
McDonald formulate
their pricing policy in
Burger King adopts
cost leadership pricing

as the final cost of the
product of company
that is incurred by
their customers.
Company's fixed
prices of their products
and services according
to the concept of
demand and supply
phenomenon.
accordance to
bundling concept
(Papasolomou and
Melanthiou, 2012).
They concentrates on
charging affordable
price for their products
so that customers can
easily buy their
products. Hence, they
frame psychological
pricing strategy so that
final consumers can
purchase goods easily.
On the other hand,
they also charge
discounts in order to
concentrate lower
section of society.
strategy in which they
could minimize the
price and total cost of
their products.
Management focuses
on fixing prices
accordance to the
demand and supply
concept that is
prevailing in current
market condition.
Place This feature of
marketing mix helps in
locating products and
services in particular
market area. Hence, it
is focused upon target
audience for which
organisation produce
their products and
services (Khan and
Adil, 2013).
McDonald is present
in almost 100
countries, worldwide.
They offer outdoor
and indoor seating
facility to their
customer. They also
deals in order though
digital technology
system, table services
and mobile charging at
Burger King have its
outlets in major parts
of the world. They
supply their products
through number of
means which include
mobile application,
restaurants, websites.
But the physical
presence of the food
outlet is mostly relied

free of cost. upon by the company.
Promotion This component of
marketing mix helps in
building image in
customer's minds so
that they could be
retained for longer
period of time. Hence,
to carry out this
function they have to
adopt number of
means which include
advertisements, sales
promotion and many
more.
McDonald have set
promotional strategy
that involve huge
investments in such
activities. They carry
out advertising
campaign at different
places. On the other
hand, they make use of
print
media(newspapers,
billboards etc.). They
also provide
sponsorship at number
of famous events that
include FIFA world
cup.
Burger King develop
several strategies to
carry out their
promotional function.
They promote through
means of personal
selling, public
relations, advertising
through print media,
online and TV. Proper
allotment of funds are
done to carry out this
process.
Process This element of
marketing mix involve
number of activities
that have to be carried
out while carrying out
certain process. This is
conducted in
accordance to current
market conditions and
situations.
McDonald have make
improvement in
number of working
process that include
cooking procedure,
distribution and food
processing. They have
also make huge
investments in
improving their
distribution and
research process so
Burger king follow set
structure to carry out
their process which
involve performing
manufacturing process
in transparent and
simple manner so that
customers do not face
any problem in this
regard. They also
make huge investment
on their food

that they could able to
carry out their services
in effective manner.
The home delivery
services are also
effective.
processing and
cooking procedure.
They always come up
with innovative way of
package and
distribution system.
People This component of
marketing mix include
all human resources
that are present in the
business organisation
as well as the
customers that are
present in market
place. All these must
be effective managed
so that they remain
satisfied and happy for
longer period of time.
McDonald adopts a
innovative and unique
process in order to
tackle their consumers.
They manage their
staff members
effectively and always
focuses on fulfilling
their desires so that
they remain happy and
contribute top
maximum of their
efforts. Customer's
services and
satisfaction is the
prime motto of this
company. They have a
set system in which
manager have to
conduct the day to day
proceedings properly
so that the final aims
could be achieved.
Employees that are
working there have a
Burger King have
systematic process of
handling their
employees and
consumers. Every
branch of Burger King
have manager that
perform certain roles
to look after the day to
day services that are
performed there.
Employees are also
managed effectively as
they have set system
that is assisted to
motivate each
individual and are
given tag for star
performance (Kwon,
2017). Meeting out
customer's compliant
is it get raised and
fulfilling it in proper
way so that they
remain satisfied and

systematic code of
conduct that have to be
followed by them.
contented with the
organisation's work.
Physical Evidence This feature of
marketing mix involve
logo, symbol, identity
adopted by
organisation to present
their image in market
place.
McDonald have
created positive image
in their customer's
mind through their
delivery services,
proper conduction of
work process. The
“M” logo is consider
the recognizable
feature of physical
evidence (Swenson,
Rhoads and Whitlark,
2014).
The physical evidence
of Burger king focuses
on maintaining the
building structure of
their outlets, effective
management of
employees as well as
proper selection of
location of outlet so
that they could
establish the
sustainable image in
consumer's minds for
longer period of time.
TASK 3
P4 Creating a marketing plan
Marketing plans is a concept in which marketing manager formulates activities that has to
be carried out by them in effective mode. It is the framework that involve sequence of plan of
actions that is targetted towards right direction and path. Hence, marketing plans helps in
carrying out activities so that final aims and objectives could be accomplished. It involve
formulation of number of policies and procedures so that effective decision could be made. It is
drafted in set structure that involve some steps which are framed by marketing manager.
McDonald follows marketing plan which is described below:
Overview of the company: McDonald is an largest food restaurant company among,
which was established in 1940 by Maurice and Richard McDonald. Its headquarter is located in
Chicago, Illinois and offer different variety of products that include chicken food items,

hamburgers, French fries, beverages and desserts. Its outlets in present in around 35000 locations
worldwide. McDonald is known for its services and is consider the second employer company
after Walmart.
Mission of McDonald: McDonald's mission involve to be the customer's first priority
of food restaurant to fulfil their demand of eating and drinking. They also want to become the
best place of working for the staff members. It also include carrying out corporate social
responsibilities to build image in customer's mind for longer period of time (Lin. and Wang,
2015).
Vision of McDonald: The vision of McDonald focuses on becoming modern and
innovative company by supplying innovative ways to satisfy consumer's demands in effective
manner. Hence, to fulfil their vision they continuous make efforts to produce high quality
products and offering best services to their valuable customers in market place.
Objectives of McDonald:
 McDonald carry out all their operation and transactions in correct manner so that final
aims and objectives could be achieved in set time period.
 To contribute some services to the society by carrying out CSR activities and results in
upliftment of social culture.
 To promote equality in their functioning by charging equal payment system and treating
every individual equal in front of law (Natarajan and et. al, 2013).
Situational Analysis: In this step, organisation have to conduct SWOT analysis in order to
measure their strengths, weakness, opportunities and weaknesses. SWOT of McDonald is
described below:
STRENGTHS WEAKNESSES
 With the introduction of various
products the company have able to
survive in recession time period.
 Company's transactions and work
process is carried out in many parts of
the world.
 They offer different variety of food
products to their customer which
 The rate of dividend growth is
diminishing in current financial year.
 The management face difficulty in
locating various places in building
some branches in several countries.

include smoothies, burgers and coffees.
OPPORTUNITIES THREATS
 There are various opportunities that are
present outside US and can be grabbed
by McDonald to establish their
operations.
 They face lower rate of interest and
thus, results in having capital growth.
 There are number of competitors that
are operating in same industry hence,
faces huge competition from these
companies.
 Increase in products' price will results
in weakening of economy limitations.
 There are several government rules and
regulations that have to be followed by
the McDonald hence, may be difficult
for them to company all rules.
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 50000 13000 14000 22000 19000
Investment 20000 11500 16000 14200
Total 50000 33000 25500 38000 33200
Marketing
expenditures
Advertisement 8600 7700 7200 7000 6800

Sales promotion 3000 4000 3500 3000 7500
Direct marketing 8000 7000 3000 6000 3000
Total 19600 18700 13700 16000 17300
Available balance 30400 14300 11800 22000 15900
Target market: In this defined particular market which decided by the organisation as
they make proper strategies and action plan for finding appropriate targeted audiences regarding
particular goods and services so that they can reach at potential customers (Papasolomou and
Melanthiou, 2012). McDonald's always consider various age of group people who wants to take
such kinds of fast foods and consume these to satisfy their needs or wants in an effective manner.
They focus on market segmentation to focus on target market or customers as well. It is
necessary to achieve better organisational goals and build strong brand image among competitors
in well manner. This is also play an important role in creating better relationship with targeted
people by considering appropriate market.
Evaluation and controlling: Last but not least, as in this step define proper controlling or
evaluation of such phases in the planning process so that entire task can be checked and
inspected in more effective manner (Peck and Hall, 2013). In the marketing planning, there is
necessary to conduct evaluation process and check entire performance for achieving target
market. This will support in increasing market share and also productivity or profitability in
more efficient way.

CONCLUSION
From the above prepared report it has been concluded that marketing is a important
functions that is carried out by business organisation in order to promote their products and
services. Marketing manager play a important role as it is his responsibility to carry out all the
duties, functions in prospective way so that ultimate aims and objectives of the company could
be accomplished. The report highlights the case of McDonald, food restaurant chain and offers
its services in major part of the world. Report underlines the importance of key roles and
responsibilities of marketing function as well as its relation with other department that are
present in single organisation. The marketing plans are also formulated that involve number of
activities that has to be performed in order to increase their sales volume and profit at sustainable
level. Marketing mix is also been highlighted that includes 7 components which are essential in
carrying out the marketing activity.

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