Comparative Analysis of Marketing Strategies

This assignment requires a comprehensive analysis of seven provided journal articles and book chapters, focusing on various aspects of marketing strategies. Students are expected to compare and contrast the key approaches discussed in these sources, drawing insights from diverse fields such as agriculture, food systems, services management, and retail management.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: The roles and responsibilities of marketing function in McDonald’s..................................1
P2: The way in which roles and responsibilities of marketing relate to the McDonald’s..........3
TASK 2............................................................................................................................................6
P3: The ways in which different organisation apply the marketing mix in their planning
process.........................................................................................................................................6
TASK 3............................................................................................................................................8
P4: Production and evaluation of marketing plan of McDonald’s .............................................8
CONCLUSION AND RECOMMENDATION ............................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The term marketing involves everything about understanding the market and bringing the
product and service to a market and even development of market in various situations. .
Marketing is the backbone of successful business. It has higher focus on developing direct
channels to communicate with customers, so, that business can survive for a long period. In
general, the marketing process is widely used for promoting and advertising the products and
services to potential customers. The present report is focused upon McDonald’s, it is an
American fast food chain. The marketing essentials are discussed in the context of McDonald’s.
Organisation spending so much on advertisement and promotion so that they can expand their
business to the next level. Along with it, the report entails the roles and responsibilities which
marketing function are playing. Furthermore, it is comparing the marketing mix of different
organisation. In the end, a basic marketing plan for McDonald’s has been discussed.
TASK 1
P1: The roles and responsibilities of marketing function in McDonald’s
Marketing is considered as one of the most important concept of business as it effects on
each and every business function. The necessity of marketing functions is always increasing and
it became most important element in shaping a profitability and success framework for all the
organisations. When it comes to marketing McDonald’s use ample of innovative idea in context
of promotional and advertisement activities (Wright, 2014). There are various key roles and
responsibilities of the marketing function which McDonald’s need to acquire so that they can
achieve all the set targets. Following are the key roles and responsibilities related to marketing
function of McDonald’s:
Strategy development- Developing marketing strategies is one of the most important role
and responsibility of McDonald’s marketing department. Most of the marketing strategies are
formed on the basis of consumer perspective. The strategy development process depends on the
overall target set by the enterprise. The senior marketing professional of McDonald’s are focused
towards enhancing the customer base which will be useful for the firm to increasing the market
share in the fast food business. For this purpose, company requires to enter in new market or they
can increase their channel of distribution. Marketing professional of organisation fulfill their role
and responsibility by settling the strategy which leads to increase the consumer base of
McDonald’s (SPACE and SPACE, 2015).
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Market research- The business market research is the process of gathering data and
evaluating whether a particular product or service will satisfy the needs and wants of consumer.
It is the role as well responsibilities of marketing professionals in context with McDonald’s to
run an effective market research so that organisation can amplify valuable information about the
competitors, market trends and consumer perspective. As per the insights which company collect
from the market research they can do require modification in the current strategies. It will help
McDonald’s by assisting them about how to overcome the competition. The marketing
department of McDonald’s is well-versed in carrying out the market research by the use of
various web-sites, report of the respective industry and conducting survey. There is existence of
several marketing research firms, McDonald’s can make use of them by letting them do the
research for the company (Mueller and et.al, 2015).
Product development- The product development process is also come under the roles and
responsibilities of marketing functions. It is a creative process which requires a systematic
approach to assist the company in order to launch a new product in the market. In the context of
McDonald’s, the marketing department is contributing a lot in a product development so that
they can develop any new product or innovate the existing one. It is the role and responsibility of
McDonald’s marketing department to evaluate the sale of current product and identify the gap in
different range of products. The marketing department conduct in-depth analysis for
understanding the requirement and preference of target customer. By the use of collected data
company can identified the areas for further improvements which company needed to make their
existing product more effective. Moreover, once the product development process is start
marketing plays role in identifying the prices for the particular product or service (Brychkov and
et.al, 2017).
Communication- The one of the biggest mistake done by business organisation is limit
the marketing activities up-to promotion, advertising and public relations. Communication is
considered as backbone of advertisement and promotion activities. The marketing department of
McDonald’s fulfill their responsibilities by increasing the level of communication through
campaign and associate events. The campaign and other communication events are largely
depending on the budget set by the firm and on the basis of that marketing department adopt the
method of communication. Communication is targeting to increase the level of awareness about
the product by the use of advertisement, public relations, promotion etc. The marketing
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professional within the organisation work on designing the method through which company can
promote their product in front of large number of customers. The proper communication of
products requires skillful employees which have experience about marketing in restaurant
business. McDonald’s can hire advertising agency which provide them assistance in designing
the communication channel in most effective manner (Cabrera and Williams, 2014).
Sales support- It is a well-known fact that sales is the department which generates
revenue for the organisation. The firm cannot be successful without appropriate combination of
sales and marketing department. For getting the more out from sales activities, it is role and
responsibility of marketing department to team up with sales departments. In McDonald’s sales
and marketing department are putting combine effort for the purpose of increasing the revenue of
firm. It is the marketing department which provide target to the sales team. The marketing
activities of McDonald’s contribute in promoting the customer to register on the company
website so that sales team can get lead out of it (Hamlin, Knight and Cuthbert, 2016).
Organize events- McDonald’s is well aware with the fact that indirect interaction through
social media, commercial advertisement are no longer much effective. The marketing department
of enterprise is responsible for enhancing the face to face interaction with customer through
organizing events and campaigns. McDonald’s's marketing department organize various
customer hospitality events and exhibition. It is important in attracting the target customer
towards the product and service (Begic and Duman, 2013).
P2: The way in which roles and responsibilities of marketing relate to the McDonald’s
The marketing department of McDonald’s having the overall responsibility for growing
revenue, developing market share and contributing in the growth and profitability of company.
They have work to define the roles which depict the strength of product and assign various
responsibilities for getting the level of performance required by firm. There are number of roles
and responsibilities of marketing which relate to wider business context of McDonald’s. This can
be enumerated by following manner:
Increase customer level of satisfaction- One of the main emphasis of McDonald’s is
reaching and enhancing the customer satisfaction level. Customer satisfaction is very vital for
organisation as it provides valuable insights to the marketers which they can use to improve and
manage the business. The customer satisfaction is considered as most suitable manner in which
in which an enterprise can attain the success and growth in between fierce competitive market.
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McDonald’s putting ample number of efforts such as- offering excellent quality of product to the
target market with sensible price so that the level of customer satisfaction can be achieved and
customer loyalty can be maintained for a longer period of time (Perry and Pyatt, 2015).
Increase the scope of business- Each and every type of business willing to grow and
expand their scope of business. The marketing department of McDonald’s is determined towards
expanding the scope of business by broadening their customer base. The expansion of business
always has the reward of exposing the business in front of wider pool of audience. Marketing
professional of McDonald’s carry out market research time to time for the purpose of searching
the area and scope for business expansion. Therefore, by analyzing the shift in taste and
preference and providing quality products to the customer firm is able to attract new customer
and target new market. This is very advantageous for McDonald’s in order to enhancing their
business within the new area and increase the level of profit as well as market share (Creusen,
2015).
Optimum use of resources- The success of business operations is largely depending on
business resources. McDonald’s marketing department is well focused towards using the
available resources in most efficient manner. The main target of the restaurant chain is increasing
the level of possible outcome by using the as minimum resources as possible.
Relationship with other business processes- The roles and responsibilities of marketing
also possess other functional area of enterprise as well. The following description stating the
interrelation of marketing roles and responsibilities with different department of McDonald’s:
 Operation and production departments: Marketing department of McDonald’s is
working with the operation and production department for the purpose of
determining the needs and wants of customer by applying appropriate research
and development tools and techniques (Pike and Page, 2014).
 Finance departments: The interrelation between marketing and finance
department plays very vital role in McDonald’s. Finance department allocate fund
for marketing activities such as promotion and advertising.
 Human resource department: Marketing and human resource department cannot
work effective if they function separately. Human resource department of
McDonald’s is work constantly to create an adequate sales force which has the
ability to attain organisational objectives and goals (Desai, 2013).
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 Research and development: The marketing department of McDonald’s is also
providing assistance to research and development department in many ways. The
development of idea about new product and its implementation process cannot be
completed without the marketing professionals’ insights. The marketing research
will provide the understanding about what type of products and services are more
marketable and what type of features will be preferred by the end customer
(Montecchi and Nobbs, 2017).
Increase the brand loyalty- The brand loyalty is considered as pattern of consumer
behavior. Here, consumer is fully committed towards the brands and make repeat purchases from
the same organisation. The primary mission of McDonald’s's marketing department is achieving
the highest level of consumer loyalty for the brand, products and services which they are
offering. The brand loyalty is playing an essential role because of the several reasons such as- it
is useful in reducing the cost of production as the level of sales is higher, if organisation achieve
the enough amount of brand loyal customer then they do not have to invest much in marketing
the product. In the context of McDonald’s brand loyalty allows them to use premium pricing so
that they can increase the profit margins. In addition to this, brand loyalty also makes existing
customer to recommend the product and services to other people, which is also called as positive
word of mouth. In brief, the marketing efforts of McDonald’s are determined for increase the
satisfaction level of customer so that they can enhance the amount of loyal customer (Xin, 2015).
Fulfillment the social responsibility- Social responsibility in marketing is vital as this
practice relate to focus upon attracting customers who want to make a positive difference by
their decision of purchase. The marketing professional are also aware about the importance of
Social responsibility in the growth of business. Organisation is using recyclable packaging and
promotion activities that spread social awareness. They are organizing various different charity
program in order the increasing the social awareness. Accomplishment of social responsibilities
providing various advantages to firm as well such as- developing positive image in the mind of
consumer (Candelo, Casalegno and Civera, 2017).
TASK 2
P3: The ways in which different organisation apply the marketing mix in their planning process
The marketing mix is considered as one of the important tool for any organisation. As it
makes foundation of overall marketing efforts make by an enterprise. It is also necessary to use
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the marketing mix tool so that business can know the process of selling the right product at right
price. The marketing mix use by MacDonald is as below:
Product- McDonald’s is very conscious about developing a menu which customer want
and prefer. The market research team of company is always try to fulfill the needs and demands
of customer on the basis of analyzing their perception about products. The requirements and
preferences of consumer changes over the time. For the purpose of meeting this changes
company introduced new products and stop the production of old ones. Marketing professional
take care the adverse events which can be occurred due to change in the product category of
firm. The organisation is well aware with the fact that the popularity of their menu is different.
McDonald’s is organizing their product differently in different countries on the basis of
consumer preferences (Huang, 2016).
Price- The perception of consumer regarding value is an important determinant of the
price charged. On the basis of quality consumer draw mental picture of what a product is worth
or it will be good to invest in the particular product or service. In addition to this, the role of
price is a critical factor which have the ability to defining the future success of a product.
McDonald’s is known for providing the products at lower prices so that it each and every
segment of customer can afford it. On the basis of purchasing power and economic condition
within the nation the prices of the product is fluctuate. The marketing professional of
McDonald’s is determined to set reasonable price of the product as compare to the quality. It is
the biggest reason behind the global presence of McDonald’s (Ahmeti, 2015).
Place- The aggressive business and marketing strategy adopted by McDonald’s result in
their existence in around 119 countries. Organisation is aiming on establishing their presence in
urban as well as in rural areas. Marketing department of the company is conduct research for
searching the best locations to establish their outlets so that they can provide products to their
customer with convenience. For attracting the large number of customer company build their
restaurant in neighborhoods as well as malls, airports, colleges etc.
Promotion- Promotion is considered as most vital tool in increasing the revenue of
company. It is referring to more efficient in capturing the attention and attract the individual
which is indirectly increase the level of present consumer base. McDonald’s is very keen
towards their promotional activities. They are using various advertisement and promotional tool
in order to attract a large pool of consumers. Enterprise is using the social media platform for the
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purpose of reaching greater amount of consumer in short span of time. Products and services are
modified in a way so that consumer can make greater benefit out of it is attracting so many
people to purchasing the products (Zentes, Morschett and Schramm-Klein, 2017).
Physical evidence- The physical evidence includes the elements such as physical
ambiance of the restaurant. It is also having vital impact of the consumer behavior. McDonald’s
is very conscious towards their ambiance as they consist with kids zone separately so that each
type of customer can have fun during their visit. The clown of Ronald McDonald’s is famous
trademark for the organisation all across the world.
People- The overall success of McDonald’s is depending on their workforce. As the
service render by the employer is the main element of any fast food restaurant. The company is
focused towards attitudes, skills and employee behavior. They also trained their work force for
home delivery as it is also an important part of McDonald’s business (Morton, 2013).
Process- McDonald’s's is updating themselves with the latest technology so that they can
keep their manufacturing process in order and also it will be useful in quick delivery to the
customer. Organisation is also integrated with the technological system such as ERP so that they
can easily evaluate the performance of the company.
Marketing Mix of KFC
Product- The main product offer by KFC is pressure fried chicken. The overall product
category of firm is based on variety of recipe associated with chicken.
Price- The price of the products varies as per the quality and quantity of the product they
are offering. The price structure is different as per the geographic situation of the outlets.
Place- The distribution of outlets is based on franchise model. They also offering home
delivery services (Russ-Mohl and Nazhdiminova, 2015).
Promotion- KFC does promotional activities by adding new dishes in the existing menu
and providing gift coupons to the customer. Other than that, they also promote their products
through online advertising.
Physical evidence- Each and every outlet interiors are prepared as per the guidelines
given by the parent company. It is playing significant role in creating positive role in influencing
the customer satisfaction level.
People-The training given by staff is wholly handled by company itself. They develop
their employees with providing them guidelines to communicate with customer.
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Process- Organisation tries to enable convenient and easier process in delivery system do
that customer satisfaction level can be increases (Kumar and et.al, 2013).
For the purpose of understanding the effectiveness of McDonald’s marketing mix, the
comparison is made with KFC. As per the product, both fast food chains are having different
product category. McDonald’s is known for their burgers and KFC is famous for their fried
chicken. The price is the main elements which set the consumer perspective about the product.
Here, McDonald’s requires to set the price after the competitors’ analysis. Another area where
McDonald’s requires to work on is speeding up the delivery process as competitors are getting
advantage in the respective area.
TASK 3
P4: Production and evaluation of marketing plan of McDonald’s
McDonald’s is running their business activities in between the era of fierce competition,
changing consumer behavior and rapid technology advancements. The organisation requires to
keep track on their day to day business activities in order to reduce uncertain events. The present
situation within the fast food sector is emphasis upon providing hygienic and nutritious food to
customer (Cabrera and Williams, 2014). Following are the basic steps use by McDonald’s in
developing their marketing plan:
Marketing Situational analysis
It is considered as foundation of marketing plan. The situational analysis of McDonald’s will lay
emphasis on external as well as internal factors which has influence on their business. It is
discussed as follows:
Internal analysis- The internal analysis of McDonald’s provide through understanding
and knowledge regarding the strength and weakness of enterprise. This element can be visible in
company image and culture, structure, operational activities and staff. Following is the SWOT
analysis of McDonald’s:
Strength
 McDonald’s have strong range of menu
choices
 With a global existence and prudent
product offering company is too strong
financially
Weakness
 The market share is not constant
 Highly competitive industry
 The concentration on providing organic
food is quite less
 The variation in seasonal product is not
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 Strong brand loyalty
 Food and health safety guidelines are
strictly followed
 Location choose for setting up the
outlets are theme parks, shopping
malls, airport etc. Which is providing
advantages over their competitors
(Hamlin, Knight and Cuthbert, 2016)
so much
 Quality is on stake because of
franchised model
Opportunities
 Expansion on international level and
into the developing economies
 Growing popularity of dining out
market
 Innovation in their existing food
category by including organic food in it
 Enable WiFi services in outlets
Threat
 Over-stored and matured industry
 High competition level
 Difficult to cop-up with technology
advancements
 Fluctuations in the foreign exchange
rates
 Social changes such as people are
becoming health conscious and
reluctant to fast food (Begic and
Duman, 2013)
 Strong legislation against food industry
External analysis- PESTLE techniques will be best option for the purpose of external
analysis of McDonald’s:
Political
 Increasing the level of international
trade agreements
 Tax concerns are differed as per the
country (Perry and Pyatt, 2015)
 Need to be careful about public health
policies
Economic
 Parent country is having a stable
growth of economy
 European and Chinese economies are
threat for McDonald’s because of
slowdown
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Social
 Better standard of living
 developing cultural diversity
 The trend of healthy lifestyle among
the society is threat as well as an
opportunity for McDonald’s
Technological
 The research and development
department of enterprise using different
technologies
 Business automation is developing due
to use of latest technology
Environmental
 Company is participating in various
corporate environmental programs
 Recycling the wastage is good option to
safeguarding the environment
Legal
 IT is a main concern for enterprise, as a
fast food chain and global existence
they need to take care of many legal
requirement such as employment and
labor law, taxation etc. (Creusen, 2015)
Segmentation and Targeting - The market segmentation is considered as dividing a
single market in different small segments. Through the segmentation strategy McDonald’s can
simply address the needs and wants of smaller groups of customers and able to produce different
product as per the consumer preference of the particular segment. The enterprise is also lay
emphasis on their targeting strategies. For getting the competitive advantage over the
competitors McDonald’s introduced new range of products which consist low cholesterol in it.
Following is three different bases on which McDonald’s done their market segmentation and
targeting:
 Demographic- Organisation is providing different type of products. For example,
happy meals which involves free toys for kids. Families can have their meal in
different outlets and takeaway facility is also there (Pike and Page, 2014).
 Psychographic- McDonald’s adopted and facilitate themselves as per the lifestyle
and convenience of customers. Organisation innovate their outlets in a way so
that customer can relax their and even entertainment facility is also there.
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 Behavioral- McDonald’s distributed their customer based on their customer.
Employees of company are trained to handle consumer as according to their
customers (Desai, 2013).
Marketing objectives of McDonald’s
 Expansion in business reach by tapping developing economies till 2019
 Increment in sales by 25% till 2018
 Capturing the 22% market share till the end of the year
 Increasing the rate of home delivery by 10% till 2018
Strategies
The following are the strategies which McDonald’s can implement for the successful completion
of set objectives:
Market development- McDonald’s is one of the leading fast food chain all across the
globe. The have opportunity to expand their business in the new market. Developing economies
will be a great option for firm.
Market penetration- Organisation can increase their market share with existing product
and even promote new products by using the strategies such as- advertising, bundling, discounts
and lower prices (Montecchi and Nobbs, 2017).
Controlling and monitoring- Planning is no longer effective without control. Marketing
control considers to monitoring the proposed plans so that it can be proceed and adjust wherever
essential. McDonald’s control system involves measurement, monitoring and evaluation. It is
useful in setting standard for the product on the basis of market analysis and consumer
preferences. If positive results are not occurred then McDonald’s required to change their plans
immediately (Xin, 2015). The methods which company can use to control the overall
performance are as follows:
 Market share analysis
 Budget
 Quality control measures
 Enabling customer relationship management system (CRM)
 Tracking the location of potential buyers
 Monitoring performance of promotional activities
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CONCLUSION AND RECOMMENDATION
From the above study, it can be concluded that, marketing is a backbone of any business
enterprise. The marketing activities required to be managed efficiently so that competitive
advantage can be gained. The present report covers the marketing strategy of one of the leading
fast food restaurant chain. They need to integrate marketing on each and every level of business
in order to sustain and survive for a longer period of time.
It can be recommended that McDonald’s have to be very conscious about their marketing
strategies. They have global presence and it is difficult for them to analyse the customer
preference for each region, in order to improve the business, they can carry out marketing
research in the respective areas. The objective of firm is increase the level of sales and it cannot
be possible without using appropriate tools for advertising and promotional activities.
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