This assignment discusses the key aspects of marketing strategies for sustainable performance, highlighting the role of managers, customer understanding, and marketing mix techniques. It emphasizes the need for a healthy working environment and effective management to achieve set goals.
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MARKETING ESSENTIALS
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Table of Contents INTRODUCTION..........................................................................................................................1 TASK 1............................................................................................................................................1 P1. Roles and responsibilities of marketing manager............................................................1 P2. Explain how roles and responsibilities of marketing relate to the wider organizational context....................................................................................................................................3 TASK 2............................................................................................................................................1 P3. Marketing Mix of McDonald's........................................................................................1 TASK 3............................................................................................................................................4 P4. Marketing Plan.................................................................................................................4 CONCLUSION................................................................................................................................7 REFERENCES................................................................................................................................8
INTRODUCTION Marketing is defined as a process through which an organization creates value for consumers. It helps in maintaining a strong relationship between the clients and the company. Activities like producing, delivering and offering goods to customers to satisfy their needs and desire constitutes the main aspect of marketing. Market growth of business organizations highly depends upon marketing. Without marketing even if a company is offering best services to its potential clients, none of them will get to know about it (Ahrens, 2011). This report is carried out in the context of McDonald's which is an American based fast food organization. It was founded in 1940 by Richard and Maurice. Its headquarter is situated in California. This research includes concept of marketing and different marketing process. Along with it, roles of manager within firm is discussed. At last, value of marketing in context of organisation is mentioned. TASK 1 P1. Roles and responsibilities of marketing manager Concept of marketing It is a strategy that a company must analyse to satisfy the requirements and needs of their potential clients (Bellenger, Bernhardt and Goldstucker,2011). This will results in increased profit margins along with high market growth. There are five marketing concepts: Production concept: It is an old approach which emphasize on the fact that customers will buy only those goods which are affordable and easily available. In case of McDonald's, product improvement and efficiency in distribution should be focused. Selling concept:This concept is based on the fact that clients are reluctant to buy those goods which are not well promoted. In reference to McDonald's, their main aim is to sell the products they are producing rather than creating what market wants. Marketing concept:According to this approach, needs of targeted market is the foremost priority along with their satisfaction. It is based on “customer First” approach. In case of McDonald's, finding right product for customer is essential. This will help in competing the rivals. Product concept:This concept holds that clients will favor those items that is modern and quality approved. For this McDonald's should focus on making improved products which are easily affordable and available for customers. 1
Social marketing:It overlooks possible issues between clients short-term needs and long- term wants. The main aim of McDonald's in this regard is to create a sustainable market that take care of present needs of customer along with improvement for future needs The current and future trends of marketing is based on the requirements of business world. Factors like globalisation, technology and integration influences areas of marketing management to a great extent. Effect of these forces is not independent, they are related with marketing approach.McDonald's can focus on meeting the present necessities of its potential customers along with taking care of their future needs. Overview of different marketing process: This includes situational analysis, control, implementation and formulation of strategies. McDonald must identify their capabilities first, along with identifying the opportunities to meet the demands of customers (Cooper and et. al., 2014). A Strategic plan is needed to carry forward the marketing process. Market, Demographic and geographical Segmentation are basic aspects in it. As Targeted market has more rivals paying attention towards smaller segments is more profitable for an organization. Marketing mix is a tool that includes the information about the brand name, quality, style along with its price (Bird, 2012). Distribution channel and promotion strategies also influences the marketing process. If carried out in a systematic way these process will help the McDonald's in increasing their brand image. Roles and responsibility of a marketing manager: It is the duty of market manager to manage the market resources in an efficient way. The task of the manager is to supervise various products and goods that a company is producing. Manager of McDonald's needs to be friendly, spontaneous & socially active. This will helps the employees to have a friendly and open communication regarding different issues. Roles: Identification of potential market: To increase the need of products in marketplace, manager is required to identify new targeted market. In case of McDonald's, manager has tomaintainagoodrelationshipbetweentheclientsandtheorganisationwhile considering their modern needs. To create market plan: It is under the work of manager to create an effective action plan which impacts the market in a positive way. Manager of McDonald's needs to concentrate 2
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on aspects like advertising, distribution and sales promotion. This will prove effective in achieving expected targets. Responsibilities: Responsibility towards firm and employees: Marketing manager holds vital responsibility towards employees and enterprise. Proper training of working staff and earning of firm are under the supervision of manager. McDonald's manager has to maintain a co- ordination between the needs of firm and the desires of the employees. Responsibilities towards customers: Fulfilling the wants of clientsis the basic aim of a firm. It is the responsibility of manager to supervise the supply of products. McDonald's manager should take care of the grievances of the clients. This will helps in increment of the brand loyalty. Different role of marketing within both a B2C and B2B: Marketing play as an important role in exchanging as well as sharing positive relation with large number of customers. It helps business organization to improve their profitability level and at the same time also capture larger market share from rivals. In this context, there are some role of marketing in B2B and B2C: Relationship Vs transactions: B2B is all about business business relationship which may lead in managing as well as development healthy relation with various business with the aim of making their brand image positive and competitive as well. On the other side, B2C is focus in transactions in which the marketing strategy is related with the selling products and services for enhancing brand image and profitability. In context of this, company needs to develop long term relation with their customers by analyzing their needs and wants. Need Vs want: B2B market is deal with potential customers. Along with this, it also play important role in understanding customers needs and wants by analyzing market trends. Apart from this, B2C market are focus on creating as well as developing needs. This will helps in making customers base strong and effective through which company can easily attain success at market place. P2. Explain how roles and responsibilities of marketing relate to the widerorganizational context Marketing of a company never exits in isolation. It is very essential to analyze how marketing relates with other departments of an organization (Brooks and Simkin, 2012). In 3
context to McDonald's, marketing department functions symmetrically with other departments like human resource, finance and production. Relation of marketing team with other departments is outlined below: Marketing and Human resource:The role of a HR department is to recruit talented and hard working staff . Marketing manager of McDonald's can seeks help from the HR team to advertise the job and to find a suitable candidate as required. HR department will helps to create a workplace with culture and values which will enhance the overall work atmosphere positively. Marketing and Finance: In an organisation, department of Finance supervise the most strategic level. They take care of which decisions will improve thefinancial sense of company. Marketing team of McDonald's is highly dependent on finance department for their efficient working. Finance department funds the marketing sector to carry out several activities. Along with it, they manages the budget of whole company. They helps the marketing department in designing and executing effective campaigns by providing sufficient funds. Marketing and production:Department of production take cares of theneeds of consumers. They produce commodities in accordance with clients needs. But now customers are more informed and peculiar regarding their changing needs. It is not possibleforproductiondepartmenttomanagethingssolely.Marketingteamof McDonald's helps them in analyzing the current market trends. The changing needs of consumers is acknowledged through advertising and market campaigns which helps production team in carrying out their work. Marketing and sales:Relation between these two departments varies in recent years, marketing eases the work of sales team by connecting with the customers. The task of sales team of McDonald's is to generate revenue and profit margins. This is not possible without the help of marketing team. Team of marketing promotes the brand in an approachable way that makes buyer eager to buy more products. This increases the sales of the products and helps the sale department in increasing their revenues. The value and importance of marketing roles: Marketing helps in directing goods and services at the designated place. Along with it, marketing helps in exchanging and movement of goods from one place to another. Marketing 4
creates an environment which helps the customers in maintaining and raising their standard of living (Cabrera and Williams, 2014). Along with it, around 40% of population is indirectly linked with marketing for their employment scenario because it provides awide range of jobs. Innovation and creativity regarding products is the core basis of marketing. In the development of a healthy economy, marketing plays influential role as economy became strong and stable if marketing is well organized. Conclusion regarding interrelationship between different departments: There are several benefits of interrelation between different departments. Accurate communication among different teams generates trust within the company (Daniel, 2011). If trust issues are resolved effectively it will helps McDonald's staff to eliminate fact-checking step that slow downs the production. If the relation between different teams is poor , customer service will effects a lot due to which brand image of McDonald's will affects badly . A good communication between different teams will increase the efficiency of working staff as completing tasks will be easy. Less number of conflicts among employees of McDonald's will leads to high work performance, which in return will results in the high profit margins. 5
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TASK 2 P3. Marketing Mix of McDonald's It is a foundation model in marketing which is controlled by the company to attract its consumerstowards purchase of its products. This tool is used by firm to increase awareness in costumers mind towards company. In this context, McDonald's use this technique of marketing mix in order to promote its product in market. Along with this, it helps company to know the needs, tastes and preferences of consumers towards its product (Friis, R., 2012). It also assists them to ensure about the right type of product at right place in market. For determining their level of performance in market, McDonald's compared marketing mix with Burger king which is stated below: BasisMcDonald'sBurger King ProductMcDonald'sisaworldsleadingfast foodbrand.Itmainlysells,burgers, fries, chicken and sandwiches, snacks and sides and many more. To attract its consumers towards its products it also offershappymealwithsomany exciting giftsinside the pack. Along with this, they also provide beverages such as, soft drinks, McFloat, shakes and many more to its customers. Burger King is a famous brand which operates in about approx 71 countries. It offers different variety of menu to its consumersfromsnackstomealfor different age groups. It serves burgers in both veg and non-veg categories and also provide deserts food items such as Oreo shakes, cookies and ice-creams. PriceCompanyusesmanytechniquesof pricing to sell its product in the market such as, value pricing, going rate, cost pluspricing,etc.Thepricesof McDonald's products are affordable that every consumer can buy easily. Their mainaimistoprovidefoodtoits consumers at reasonable price. Burger king follows pricing techniques suchasMarket-orientedpricing strategies and bundles pricing strategy. The main aim of this company is to focusonbetterqualityandtasteof products with affordable prices.
PlaceIt refers to the distribution of its product inrightarea.Mcusesdifferent distributionstrategiesindifferent countries to deliver its product to its consumers. In some countries, company offers home delivery or also opens its restaurant 24 hours in a day. Their main motto is to deliver its product through all possible channels of distribution. TheheadquarterofBurgerKingis situated in US and has a strong supply chain network. It has opened its stores in different places where its consumers are easilyapproachable.Theyhavealso developed physical stores and mobile applicationsinordertoincrease consumers reach for getting orders. 2
PromotionMcDonald's uses many techniques to promoteitsproductinthemarket throughvariouschannelssuchas, televisions,newspapers,pamphlets, magazines,etc.Thecompanyalso provide discount coupons and freebies on various products which is also an attractive techniques of promotion. Burger King has used many marketing strategies to promote its product in the market. It has organises and sponsors many different events to reach to its costumers. Not only this, they have also promotedtheirproductbygiving advertisements in newspapers, on social networking sites and many more. PeopleIn UK, approximately 97000 people are workinginMcDonald'sandapprox 70% of its restaurants are operated by localbusinessmenandwomen. Basically,companydependsupon employeesandconsumerssoitis important for them to look after the needsand wantsofemployeesand consumersandalsotoresolvetheir issues. Burgerhasfocusedmainlyonits consumer and employees. The ratio of costumer satisfaction is comparatively higher then other fast food restaurants. It has become more consumer centric due to its quality food and unique dinning experience. Along with this, it also give rewards such as, performer of the week and appraisal to its employees according to their performance. ProcessItreferstotheactivitieswhichare performed by the company in order to achieve its goal. To deliver products to its consumers, McDonald's undertakes number of processes. The method of foodpreparationiscompletely transparentandvisibletoevery individualwhichgivesthemmore satisfactionwhilepurchasingany product. The process of the company is designed by the professionals and it is operated internationally by Burger King. It has successfully maintained its process flow whichhelptheminkeepingtheir producttaste,satisfactionoftheir costumers and work culture. With the assistance of these, Burger King easily improved their performance. Physical evidence Itreferstothatplacewherethe company is selling their product. The Thephysicalevidenceorlocationof Burger King is maintained in such a way 3
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outletofMcDonald'sshouldbeeye catchingandcreative.Thecompany should also looks after the hygiene and cleanliness of its restaurant. It is also importantforcompanytohave attractiveinteriortoattractits consumers more towards its products. that it attracts its consumers more. In order to grab more customers, company has opened many of its outlets in some shopping malls, company canteens and business centres. This will help them to increasetheirrevenuesandcostumer base as well. TASK 3 P4. Marketing Plan It refers to the document or blue print which illustrates the overall plan or efforts of an organisation. In context of McDonald's, the company also uses this plan to launch new products in the market (Hsu, 2011). It provides guidance to the marketing manager to improve their overall performance. Through this system, they can easily capture their future opportunities in market. Overview of the company McDonald's is a US based American fast food company operated by Richard and Maurice McDonald . The company is best known for its different types of food items such as chicken McNuggets, double cheese burger, Egg McMuffin, etc. It also provides beverages to its consumers such as, soft drinks, McFloats and offers happy meals for kids. It has so many outlets in different section of countries and provides various services to its consumers. In some sections of country the company provides home delivery and in other parts it offers products for 24 hours in a day. The company also apply many different strategies to promote its product in the market such as, by giving advertisements in newspapers, and posting adds on social networking sites. It is beneficial for the company to increase their revenues and sales. Vision:The vision of McDonald's is to sustain their position in market. Mission:The mission of McDonald's is to make more healthier and quality products for its consumers. Marketing objective 4
To produce healthy products for health conscious people to enhance their sales by 15% within upcoming five months. To enhance market share by 25% in upcoming year. STP:It refers to three steps of marketing plan and they are, Segmentation, Targeting, Positioning. It assists the company to understand about its costumers and also in improving marketing effectiveness and efficiency (Jones, 2011). This process guide the organisation in developing and segmenting appropriate marketing mix. McDonald's also uses this process of STP in order to analyse marketing strategies and plans. It is important for the company to know about its targeted consumers. The company has segmented is products according to the base which are as follows: Segmentation:This process refers to diving a single market into smaller segments. In context of McDonald's, the company has segmented its products into smaller segments in order to know the needs of smaller groups of consumers and family (Kennedy and Parsons 2014). This would help company in manufacturing products according to the taste of its consumers. This process is done on the basis of age, gender, religion, lifestyle, etc. Geographic:It refers to the geographical areas such as, urban and rural areas (Langer and 2015). The main objective of this group is to understand the needs and demands of consumers which are resides in geographical regions. Psycho-graphic:This includes the division of people on the basis of their lifestyle and social class such as, working class, middle class and upper class. Behavioural:This includes the individuals on the basis of their personality and status such as ambitious and regular users. Demographic:It includes the segmentation of people according to the income, occupation and degree of loyalty. Incomes includes average, above or high earners and occupation consists of students, employees and professionals. Targeting:It is the process in which company target its consumers to sell its product. In this regard, McDonald's target nations and expand its outlets according to the demand of its consumers. The main aim is to providing its consumers best quality products accodung to their tastes and preferences. 5
Positioning:It is important for the company to proper positioning of its brand. It is about creating an image of product in the minds of its consumers. McDonald's uses this process in order to identify the position of its product and brand and services at market place. SWOT analysis of McDonald's Hsu, 2011Ionitã., 2012Jones, 2011Kennedy and Parsons 2014Langer and 2015Strengths Weakness The company launched new items like coffees, smoothies and burgers. Itisalsoexpandingitsstores throughout the whole economy. It is difficult for the company to find prime locations for set-up new outlets. The competitors are the main weakness for the company such as Burger King. Opportunities The company can use advanced technology to better serve its products to its consumers. Threats There are so many health conscious consumers in the economy which is a major threat for the company. Marketing budgets Marketing budget Particulars1styear2ndyear3rdyear4thyear5thyear Initial money500060007000120008000 Investment100004000500080006000 Total1500010000120002000014000 Marketing outlay Promotion70004000800060004000 Sales publicity8000400010000100005000 Direct selling10000800015000120005000 6
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Total2400016000330002800014000 Monitoring and control: This feature is used by the manager of the company to identify results and improve the effectiveness of marketing strategy(Ionitã., 2012). With help of this company can easily attain its set goals and can perform well. CONCLUSION From the above mentioned facts, it has been concluded that to Manage a firm efficiently, healthymarketingstrategiesarerequired.Forasustainableperformancebothrolesand responsibility of manager plays a crucial role. To create a healthy working environment, itis important to carry out a good relation between different departments . The prime task of marketingprofessionals is to understandthe needs and requirements of the customers. For smooth working, techniques like marketing mix plays a vital role. The merits of a marketing plan are, it helps in generation of more revenue sales and high profit margin with strategic evidences which helps in improving the overall performance of the organization. 7
REFERENCES Books and journals Ahrens, C. D., 2011.Essentials of meteorology: an invitation to the atmosphere. Cengage Learning. Bellenger, D. N., Bernhardt, K. L. and Goldstucker, J. L., 2011.Qualitative research in marketing. Marketing Classics Press. Bird, A., 2012.The LinkedIn Essentials: Leveraging LinkedIn to Grow Your Business. Fair Trade Digital Exchange, Incorporated. Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness.Marketing Intelligence & Planning.30(5). pp.494-514. Cabrera, S. A. and Williams, C. L., 2014. Consuming for the social good: marketing, consumer citizenship, and the possibilities of ethical consumption.Critical Sociology. 40(3). pp.349-367. Coombs,D.,2012.StrategicUsesofAlternativeMedia:JusttheEssentials.Journalof Advertising Education.16(2). p.60. Cooper, A., and et. al., 2014.About face: the essentials of interaction design. John Wiley & Sons. Daniel, J., 2011.Sampling essentials: Practical guidelines for making sampling choices. Sage. Friis, R., 2012.Essentials of environmental health. Jones & Bartlett Publishers. Hsu, 2011. Design innovation and marketing strategy in successful product competition.Journal of Business & Industrial Marketing. 26(4). pp.223-236. Ionitã., 2012. Entrepreneurial marketing: a new approach for challenging times.Management & Marketing.7(1). p.131. Jones, 2011.Pioneers in marketing: A collection of biographical essays. Routledge. Kennedy and Parsons 2014. Social engineering and social marketing: why is one “good” and the other “bad”?.Journal of Social Marketing. 4(3). pp.198-209. Langer and 2015.Luxury Essentials: Essential Insights and Strategies to Manage Luxury Products. Center for Research on Luxury, University of Mainz. 8