Marketing Planning and Strategies

The assignment delves into the crucial aspects of marketing planning, exploring the various internal and external factors that significantly shape these plans. It examines the importance of elements such as pricing decisions, objectives, and distribution strategies in formulating effective marketing campaigns. The document also sheds light on different pricing strategies and their impact on business success.

Marketing Planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Reviewing changing perspective in marketing planning.......................................................1
1.2 Organization capability for planning future activities...........................................................2
1.3 Techniques for organizational auditing.................................................................................3
1.4 Carrying out organizational auditing and analysing external factors....................................4
TASK 2............................................................................................................................................5
2.1 Barriers to marketing planning..............................................................................................5
2.2 Solutions for overcoming the barriers...................................................................................6
TASK 3............................................................................................................................................7
3.1 Marketing plan for a product or a service..............................................................................7
3.2 Importance of marketing planning for strategic planning process........................................7
3.3 Examination techniques for new product development.........................................................8
3.4 Justification for recommendations for pricing policy, distribution and communication mix9
3.5 Factors affecting the effective implementation of the marketing plan have been taken into
account.......................................................................................................................................10
TASK 4..........................................................................................................................................11
4.1 Ethical issues affecting the marketing planning of McDonald's.........................................11
4.2 Response of McDonald on ethical issues............................................................................11
4.3 Consumer ethics and its effect on marketing planning of MacDonald...............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing can be determined as a process in which organization provides information to
customers regarding products and services which they deliver. There are different types of tools
and strategies which are included in the process of marketing (Nijssen and Frambach, 2013). In
this context, it is important for the firm to have a proper plan so that they will be able to achieve
their goals and objectives. Marketing planning is a type of blue print which enables to state the
marketing efforts which are made by the firm. Planning plays a vital role in developing positive
perception among customers. Present report is about McDonald's which is the world's largest
selling hamburger restaurant chain. It has been reported to serve more than 70 million customers
in overall 119 countries of the world. This report will cover different techniques which are used
in conducting organizational audit. Further, it will include barriers which are involved in
marketing planning. Lastly, it will also involve ethical issues which affect marketing activities.
TASK 1
1.1 Reviewing changing perspective in marketing planning
Organizations can make use of different perspectives while making market planning and
these are as follows:
Market analysis: It is one of the most important techniques of marketing in which
management needs to make analysis before developing marketing strategies for McDonald’s. It
should focus more on analysing the market by conducting internal and external research about
the market with the help of different ways (Pulendran and et.al., 2015). In this context, firm can
make use of SWOT analysis, PESTLE, Porters five forces, etc. With this help of these tools,
organization will be able to understand the areas in which they lack and accordingly, changes can
be made.
Designing marketing objectives: Every business aims at increasing its sales by providing
satisfactory services to its customers. As McDonald's is a brand in itself, it should develop
certain guidelines which can direct the organisation towards success and profitability (Mish and
Scammon, 2010). This enables to develop path through which they can achieve their
organizational goals and objectives.

Formation of appropriate marketing mix: For attaining aims and objectives of the
organisation, it is very important to design proper and effective marketing mix. Developing
marketing mix is also considered as an essential part of marketing process in McDonald's. Based
on the marketing research, marketing mix such as product, price, promotion and place are
decided (Huang and Sarigöllü, 2012). Different people in the diverse market have different taste
and preferences. It is important for the firm to develop marketing mix for different market as it
will be helpful for the organization to provide better services to their potential customers.
Identification of target Market: It is very necessary to identify target market so that firm
can fulfil the needs and requirements of customers in a successful manner. It identifies different
segments and chooses one from the market which is to be served by them. McDonald's identifies
target market on the basis of age, gender, income and other factors. Accordingly, products should
be developed so that they will be able to generate strong customer base.
1.2 Organization capability for planning future activities
Main aim of McDonald's is to maintain strong relationship with their customers. In this
context, they make sure that they take feedback on the regular basis so that they can make
improvements in their services. Further, they also focus on providing their customers with high
quality services. In today's modern world, people are very much health conscious and they prefer
to have products which may not affect their health (Luan and Sudhir, 2010). By this way, cited
firm is able to reach to their core competencies. In order to sustain in the market, it is important
that they have frequent changes while promoting their products. With this respect, McDonald's
understand this importance and does make frequent changes in their promotional strategies. It
includes discounted rates, free gifts with the purchased product, etc. Further, employees are the
face of organization so it is important for the firm to hire skilful and knowledgeable employees
who will be able to support the firm to achieve their goals and objectives.
Cited firm has made their services reach customers around the world. However, there are
many cases in which people do not prefer to buy the products of McDonald's. This is because,
taste and references of a market are different from the other market (Leonidou, Katsikeas and
Morgan, 2013). In this context, McDonald's needs to conduct market research so that they can
get to know the needs and requirements of each market and accordingly, they can develop their
services so that they will be able to generate strong relationship with their service users.
Moreover, organization also aims at developing and maintaining their brand. For that,
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McDonald's mainly focuses on designing various products after identifying the needs and
requirements of the customers. It not only provides the best quality food items at low price but it
also offers excellent friendly environment with innovation on the continuous basis.
1.3 Techniques for organizational auditing
As discussed above, there are different types of tools in marketing which are used by the
organization to conduct organizational audit. It is very helpful to increase the revenue and
growth of the firm. In order to identify the external factors, firm can make use of PESTLE
analysis (Athey, Suckling and Rogers, 2012). On the other hand, SWOT analysis is used with the
help of which they identify the areas in which they require improvements. SWOT analysis stands
for strengths, weaknesses, opportunities and threats. It enables to determine where the firm
stands and accordingly necessary actions are taken so that they will be able to change their
produicts and services as per the needs and requirements.
Below given is the Porters five forces for McDonald's: Bargaining power of suppliers: There are many suppliers which provide raw materials to
McDonald's. However, they lack in making differentiation among the products. So, it can
be stated that bargaining power of suppliers is low. Bargaining power of buyer: Cited firm has established their business around the world
and they have developed a strong customer base (Bickhoff, Hollensen and Opresnik,
2014). However, customers have so many options in the food market and as a result,
bargaining power of customer is also high. Rivalry among existing firms: There are many organizations which provide similar
services like McDonald's and they make use of several strategies to attract customers. So,
rivalry among existing firms is also high. Threat of new entrance: There are many countries which do not impose any type of
regulation because of which business operations get affected. So, threat of new entrance
is high. Threat of substitute products: This is also high as the organization aim at understanding
their customers and develops innovation so that customers can be attracted.
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1.4 Carrying out organizational auditing and analysing external factors
Different macro and micro environmental factors are taken into consideration that is
responsible for affecting the marketing decisions which are taken by McDonald's. For analysing
macro environmental factors, PESTLE analysis has been conducted.
Political: In this, governmental laws and regulations are taken into consideration. Here,
employment and tax laws put its impact on the operations which are performed by McDonald's
(Priya, Baisya and Sharma, 2010). Apart from these, there are many other factors such as health
and safety act that affects company to a considerable level.
Economical: One of the main reasons of economic crisis is recession and abrupt changes
in currencies of the world. This has produced a negative impact on the marketing and sales of
McDonald's. For compensating the fluctuations, McDonald’s has to offer its products at low
prices to its customers.
Social: Such factor is more or less associated with the change in taste and requirements
that are identified in the target market. For increasing its productivity and sales, McDonald's
complies with all the changing needs of the customers so that it is able to provide 100%
satisfaction to its customers (Sadjadi, Yazdian and Shahanaghi, 2012). For enhancing their sales,
McDonald's also provides free internet facilities to all its customers.
Technological: To provide better quality services to all its customers, McDonald's
utilises effective tools and techniques so that their impression and reputation in from of
customers and competency market can also be increased to a higher level. One of the best
examples is colour display of menu chart in McDonald's food chain.
Legal: It is very necessary for McDonald's to comply with legal rules and regulations
which are assigned in context to labour and employment. For example, working hours should not
be exceeded more than the assigned time.
Environmental: These factors should also be taken into account along with the
promotion of business activities. For protecting environment, McDonald's takes various steps
such as recycling used materials.
Micro factors
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Consumers: With the change in market demands, customer's requirement and needs have
also changed. Hence, it is very necessary for McDonald's to adopt various strategies so that they
are able to meet the demands and needs of customers.
Employees: The work served by employees of McDonald's also plays a major role in
enhancing the productivity and sales (Wrenn and Mansfield, 2014). Hence, it is very necessary to
appoint skilled workforce so that they can provide effective quality services to all its customers.
TASK 2
2.1 Barriers to marketing planning
There are many barriers involved in developing marketing plan. These types of barriers
highly affect the growth of the firm. In this context, following are the barriers which organization
faces in preparing marketing plan:
Ethical issues: When a plan is developed, there are many cases in which employees face
issues related to adopting the changes. Different people have diverse understanding, some may
be in favour and some may not like the changes to be made (Shimp and Andrews, 2013). With
this respect, it is important for the organization that they provide proper information to their
employees so that they will be able to adopt the plan effectively. However, employees who
understand the marketing plan, then they get highly benefited with it. Further, they are also
provided with more preference, than other employees.
Ineffective leadership: Leaders are people guide and control the employees so that they
will be able to perform their roles and responsibilities effectively and efficiently. In this context,
it is important for the organization to have effective leaders so that they will be able to encourage
and motivate employees so that they understand the importance and benefits of marketing plan.
However, barriers arise when leaders do not perform their roles and responsibilities effectively.
When they fail to provide proper information regarding the activities which they have planned in
order to achieve the goals and objectives then shows their ineffective leadership style.
Organizational culture: Culture which is followed in McDonald's is different and it
affects negatively towards the business operations. There are different markets in which firm
needs to operate their business and it is their responsibility that they understand the requirements
and accordingly plan are made (O'shaughnessy, 2014). Issues arise when firm do not make
proper analysis and adopt the changes for marketing. This way organization fails to achieve their
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desired goals and objectives. Further, it also increases confusions as things do not work
according to what was planned.
2.2 Solutions for overcoming the barriers
So as to overcome the issue, it is very important for McDonald's to conduct market
research should be conducted so that they get to know the needs and requirements of customers.
Accordingly, products and services can be developing so that they can be satisfied. As discussed
above the taste and preferences at different market is different and with the help of market
research organization will be able to eliminate the barriers which fall on their path. Further, it is
essential that they have capable employees who will be able to accept the changes effectively
and efficiently (Challagalla, Murtha and Jaworski, 2014). In this context, McDonald's should
make sure that they proper recruitment and selection process so that they will be able to identify
employees who would support the firm to achieve their goals and objectives. Moreover, there are
many situations in which barriers arise when new technologies are used and they fail to use
them. In this context, training and development is very important so that they will be able to
improve their performance level and to make use of new technology which is used in order to
provide better services to customers.
As discussed above, there are employees who do not get adapted to the changes. In such
conditions, organization should make use of strategies so that they will be able to adapt to
changes. With this respect, there are different motivational theories which can be used with the
help of which they can improve their performance level and can adapt to changes effectively.
Further, they will also make use of their full potential to support the firm to reach their goals
(Berthon, Pitt and Shapiro, 2012). This will also enable to develop the skills of leaders that will
be able to provide proper guidance to employees so that they can understand the marketing plan
and contribute effectively towards the growth. Buy following this process cited organization that
is McDonald's will be able to overcome their barriers which falls under developing marketing
plan.
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TASK 3
3.1 Marketing plan for a product or a service
By seen the change in customer’s preferences and healthy eating habits, McDonald is
planning to introduce a new product into the market. The reason of doing this is consumers are
now looking a meal which should be a complete package of nutrition and good for the health (Yu
and Ramanathan, 2012). They are now boycott to those food items that contains large amount of
fat, salt and other chemicals because these harms the health of them very slowing. On the basis
of this, cited organization selects Cheeseburger to introduce into the market. For this, marketing
plan is as follows:
Product: It is observed that McDonald has planned a unique and new strategic marketing
planning for its new Cheeseburger. With the help of this, it will be easy to create awareness in
the customers that offer product contain good nutrition values and not contain any kind of
chemicals or any artificial flavour (Pitta, 2012).
Prices: The prices of Cheeseburger will be set very low as compare to the prices of the
products of organization competitors. The reason of this is low prices of food will attract more
and more consumers towards buying and consume it. For the products for the Apple products are
very high and are very high then other cell phones (Fullerton and Merz, 2012).
Place: The distribution of Cheeseburger will provide by McDonald to its different outlets
on various geographical locations. Along with this, consumers will also order this food item by
online. Both distributions will be well controlled by the centralized distribution channel.
Promotion: To promote Cheeseburger in the target market, cited company will use
numerous types of promotion activities. Advertisements in the newspapers, magazines, TV and
internet will give. Along with this, it will also promote by social media so that right information
can be communicated to the target customers in most effective manner across the globe (Craig
and Campbell, 2012).
So, with the above stated marketing plan, McDonald can promote its new Cheeseburger
food products in the market place in appropriate manner.
3.2 Importance of marketing planning for strategic planning process
Marketing planning is a part of strategic planning process of all businesses. Without it, the
success and survival of the organizations cannot imagine. It is important to align marketing
planning with strategic planning process (Achrol and Kotler, 2014). Both are essential elements
7

of McDonald and it is observed that measurement of business functions and their roles are
directly connected with strategic decisions. Marketing planning helps in meeting the objectives
and goals of business as per the pre decided plans. These activities develop on the basis of
effective and appropriate strategic. For example, cited firm plans to bring a new food item
Cheeseburger into the market. For this, first of all, a strategic planning will prepare (Berthon, Pitt
and Shapiro, 2012). With the help of this, a road map will form to all the departments to achieve
goals and objectives in appropriate format. Along with this, internal and external effects and
opportunities for launching of new food product will also determine. After this, it will be
responsibilities of McDonald marketing department to conduct a market research on the basis of
the created road map. By doing this, it will easy to analyse and determine buying and eating
habits of the target customers (Challagalla, Murtha and Jaworski, 2014). Further, it will also
assist in explore current competitive position and the demographics characteristics of consumers.
Afterwards, a proper plan will be formulated and according to it, a marketing plan will develop.
From the above example, it can be said that strategic planning process helps in determine
opportunities and threats for the organization. Marketing plan gives contribution to grab those
projections in terms of growth of business.
3.3 Examination techniques for new product development
Every business needs to innovate in its services or products to stay in the market. Without
changing or modifications in the commodities, the sales and profits cannot be raised. There are
different types of methods used by McDonald to develop a new product. Examinations of these
techniques are as follows:
SWOT analysis: With the help of following method, McDonald has analysed its existing
food products in more appropriate manner. It has explained strengths and weakness along with
new opportunities and threats for the food items in the market (Evans, 2012). On the basis of the
gather information, organization takes decisions to develop new products.
Evaluation of product and market match: It has assisted the company to compare and
evaluate that existing products are able to match with the market trends or not. On the basis of
the outcome, McDonald decides to bring innovation/ modifications are the current food items or
develop new food products to match with trends of market (O'shaughnessy, 2014).
Ansoff matrix: By using the following model, McDonald analyse the needs of new product
development. It provides complete information about current market share and new market
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opportunities. According to this, company takes decisions whether to develop and launch new
products into the market or not.
Product failure rates: McDonald conducts a research on its existing food items regarding
the reasons of rejections by the customers. With the help of this, it becomes easy for the firm to
know about the issues and failure rates of products. By doing this, a new product develops that
can overcome all negative aspects of old food items in more effective manner (Shimp and
Andrews, 2013).
3.4 Justification for recommendations for pricing policy, distribution and communication mix
Organizations manufacturing goods and services and for this, they have need to set the
price for their products. Setting of price is one of the most important and crucial task for the
managers. It requires a planning exercise and it should set in appropriate form as per
characterises and nature of the goods (Pricing Strategies, 2016). On the other hand, distribution
channels of products and services also must be appropriate. In the past time, companies were not
considering any kind of intermediaries to sell the services and goods. But in the present time,
these are more important because of quick delivery of the products to the customers end.
Intermediaries provide different functions to the firms in terms of transportation, storage, selling,
advertising, and relationship building (Importance Of Distribution, 2012). Further,
communication mix is also essential for the firms to effectively deliver right information to the
target customers. It can includes various promotional tools such as advertising, public relations,
direct-marketing tools, sales promotion, digital and integrated marketing methods, personal
selling etc (RICHA, 2014 ).
In the case of McDonald, pricing policy, distribution and communication mix, these three
are more important for a new product. For this, the pricing policy should be penetration pricing.
The reason of suggesting to sets a low price at initial level is to increase sales and market share.
Once, the organization capture appropriate market share then after some time, it can increased
price of food items. Along with this, the following pricing policy avoids adverse public reaction
on charging high price (Concept Of Pricing Decision And Objectives Of Pricing Policy, 2012).
On the other hand, distribution channel use by McDonald for new food item should be offline
and online. The reason of suggesting this strategy is product will be more easily available at both
online and outlets. In addition to this, it will also deliver a greater satisfaction to the customers
that will create a good image in the market place regarding its services. It will also added value
9

of money of the consumers by creating place utility, time utility and quantity utility. Moreover,
McDonald should use advertising, public relations, sales promotion, digital and integrated
marketing methods, personal selling etc methods of marketing communication mix (Wrenn and
Mansfield, 2014). With the help of this, it will be easy to deliver a uniform and convincing
message about new product to the target audience in more appropriate manner.
3.5 Factors affecting the effective implementation of the marketing plan have been taken into
account
At the time of development of marketing plan for new product, McDonald should consider
some factors because these may be affect effective implementation of plan. These issues are as
follows:
Demographics: The amount of composition of market change and its related opportunities
as well as hurdles have to be considered at the time of execution of marketing planning. Along
with this, it is also needed to take care about population and their demand in the market place. By
considering this information, McDonald can effectively implement marketing plan for new food
item.
Current and projected economic condition: At time of execution of marketing planning,
current inflation and employment taxes and other economic factors affects supply, demand and
pricing of new product of McDonald in negative manner. So, it is taking care to consider them at
the time of marketing planning (6 Factors that Affect Your Marketing Plan, 2016).
Market potential: Strengths and weakness of major competitors of McDonald may affect
the execution of marketing planning. Without knowing it, if the organization develop and
execute a plan then it definitely drag them into failure of plan.
Market share: It is important for the cited firm to determine the percentage of current
transactions in market that is handled by company. Along with this, it is also needed to know
those factors that may change this percentage either in positive or negative (Sadjadi, Yazdian and
Shahanaghi, 2012). If these are not taking in to the consideration at the time of execution of
marketing plan then it will create a problem for the business.
Distribution: The right strategy to sell the product into the market can maximize sales
volumes and profits both. If McDonald not chose right one distribution channel then it becomes
not easy to implement marketing planning as per the set plan (Ashe-Edmunds, 2016).
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Therefore, form the above stated factors; it can be understood that these factors may
negatively affected the effective implementation of the marketing plan of McDonald. So these
are needed to be taking to account at the time of execution of plan.
TASK 4
4.1 Ethical issues affecting the marketing planning of McDonald's
Ethical issues are those issues and activities which are may be performed right or wrong
by the organisation. These are related to the staff members of organisation and disagreement on
any kind of issues. It is basically based on the rules and principle and for better brand image it is
important for firm to follow all the marketing activities at workplace (Achrol and Kotler, 2014).
For example, if McDonald follows all the ethics so the customers' belief in their products and the
brand images of company goes increases. It is basically related to the market research where top
management of firm conduct research and check the quality of all activities.
At the time of selecting market audience, McDonald chooses those persons who are
totally satisfied with the services of organisation. By this they can easily create a fake result. So
to maintain transparency, organisation takes feedback from both audiences who are satisfied with
the products of company and the second on who is not satisfied with their products. According to
their reviews prepare a result.
At the time of advertisement and promotion activities sometime McDonald hides the
main ingredients and only shows attractive ingredients. So by these customers got confused and
purchase the fast food items (Craig and Campbell, 2012). These types of issues are considered in
ethical issues.
So it is company duty to follow all the rules and legislation which are provided by the
UK government. If organisation does not follow it so they have to pay lots of money and penalty
to government. On other hand, the market value of firm goes down and the trust of customers
toward McDonald brand also affected. According to case scenario, in past some issues are based
on unhealthy diet food and the kitchen area is same for vegetarian food and non-vegetarian food.
So company change the structure of their kitchen. By applying this idea, firm gain the trust of
their customers and improve their down brand image into the customers mind.
4.2 Response of McDonald on ethical issues
When McDonald finds out that there are so many ethical issues so company starts
responding in a positive direction which is explained by examples in below.
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Healthy competition
Company organised some healthy activities and competitions for their customers. By this
they can easily gain the trust of their clients. On other hand, the entire team of organisation time
to time take a feedback from their customers and according to their reviews update their
strategies (Fullerton and Merz, 2012). On other hand, according the competitors plan, McDonald
makes sure that people involved in strategic planning and marketing planning process must
follow the ethical approaches and give the priorities to company profit on top rather than
personal gains.
Technology
McDonald always updates their technology and by adopting all these equipment, it can be
reduces the work load from their staff member. Management of organisation has to be making
sure that their firm use the latest technology at their workplace and their staff members are not
sharing the data and information to other companies. For this, company save the all data by using
cloud computing and save it with password. By this, they can easily ensure their all information.
Information sharing:
With the help of the latest technology McDonald can easily share their information with
their business partners, shareholders, vendors, customers and stakeholders. By this, all important
person of organisation can easily understand their strategies of McDonald and by providing their
suggestion they can also help them for their better development (Pitta, 2012). Company also
mention the ingredients of food item's which are used at the time of production process so that
the customers can easily know that which ingredients are good for their health and which one is
not.
4.3 Consumer ethics and its effect on marketing planning of MacDonald
McDonald has a big brand image into the customers mind and the main reason behind
this their management. For example, their employees are well trained in their work and
management time to time organised training session for them. Organisation follows all the rules,
ethics and legislation which are provided by the UK government (Yu and Ramanathan, 2012).
For example, at their workplace they follow equality act, packaging and labelling act and equal
pay act. By follow these various act they can gain the trust of their staff members and customers
as well. By providing various products in cheap process they grab the attraction of their
12

customers and for better customers' relationship they also provide them combo packs, loyalty
vouchers and coupons. By doing this activity, they change the buying behaviour of their
customers. There are some examples which are rested to their consumer ethics and they are as
follows:
Return of products
It is one of the most common problems in the customers that, at the time of purchasing
they do not considered the indigents and after sometime they want to change the product. So at
that time McDonald provide them changing option where customers change their products and as
per their requirement purchase the new one (Nijssen and Frambach, 2013). By doing this
activity, firm can easily gain the trust of their customers and also create a positive relationship
with them.
Vouchers
McDonald provide loyalty voucher to their permanent customers where they can
purchase any food item in low prices. By providing this thing, company increase the sale of their
fast food items and also attract the concentration of all clients. On other hand, some people
misuses the vouchers which are provided by the organisation. For example, change their voucher
with other person and take a benefit again and again.
Kitchen divination-
One of the best thing which is done by McDonald is they divide their kitchen into two
parts first one is for vegetarian meals and second one for non-vegetarian meals (Pulendran and
et.al., 2015). The main reason behind doing this thing is, that most of the Indian consumers do
not use McDonald fast food item just because the kitchen area is same for both types of meals.
By doing this activity, they raised the number of Indian clients increased by 40%.
CONCLUSION
From the above study, it can be concluded that marketing effective planning is essential for
any marketing activity to ensure that an organisation realises its marketing objectives. Without
planning, marketing activity can be inappropriate and it leads to wastage of resources and
opportunities. McDonalds, has reviewed changing perspectives in marketing planning. There
have different barriers that have affected marketing planning of organization. With the help of
various techniques, firm has developed new products to meet the needs and requirements of
customers.
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