McDonald's Performance Improvement Recommendations

McDonald's is recommended to continue its pricing strategies and promotional mix as they have been effective in gaining a competitive edge and attracting customers. Additionally, the company should collect feedback from employees and customers on their satisfaction levels and incorporate changes to achieve desired objectives and gain a large customer base. Regular research activities are also necessary to determine business flow and identify performance loopholes.

MARKETING ESSENTIALS
1 | P a g e

Table of Contents
Introduction:...............................................................................................................................3
Task 1:........................................................................................................................................3
Lo 1: Explaining the role of the marketing and their interrelation with the functional unit of
an organization...........................................................................................................................3
P1: Explanation on the roles and responsibilities of the marketing function with respect to
McDonalds (M1 & D1)..............................................................................................................3
P2: Explanation on how the responsibilities and role of the marketing functions relate to
McDonalds.................................................................................................................................4
Task 2:........................................................................................................................................6
Lo 2: Comparison among the ways in which an organization uses marketing mix for the
overall objectives achievement..................................................................................................6
P3: Comparison on the ways that McDonalds applies its marketing mix into the marketing
planning process and how these differ from other similar organization (M3 & D2).................6
Task 3:........................................................................................................................................8
Lo 3: Evaluation and development of basic marketing plan......................................................8
P4: Evaluation on the marketing plan for the current context of McDonalds (M4 & D2)........8
Conclusion and recommendation...............................................................................................9
References and bibliography....................................................................................................11
2 | P a g e

Introduction:
Marketing strategy would enable the organization to perform all the operational activities to
accomplish the respective vision and mission of the enterprise (Groucutt and Hopkins, 2015).
Furthermore, marketing techniques would attract more and more customers and retain that of
old one, which further strengthens the financial position or performance to fight with the
competitors or rivals. Moreover, marketing strategy is comprises of all the parameters starting
from selecting the platforms to promote the product to identifying the respective target
market for betterment of the organization in the market place. Thus, marketing strategy
would expand the boundaries of the organization towards profitable limit and dissolve all the
respective uncertainties or risks arising from significant sources. The following study would
elaborate about the importance, requirement, and significance of marketing strategy or
techniques towards the strategy of McDonalds and highlight all the parameters of the same in
an appropriate way. Moreover, the study would also state some recommendation, which
further would enhance the performance of the enterprise in the coming period.
Task 1:
Lo 1: Explaining the role of the marketing and their interrelation with the
functional unit of an organization
P1: Explanation on the roles and responsibilities of the marketing function
with respect to McDonalds (M1 & D1)
In order to point out the marketing function, it is necessary or relevant to understand the basic
meaning of the same. Elaborating about the same, marketing function would enhance the
overall revenue, market share, growth, and profitability of business irrespective of its size,
nature and functions by accelerating the pace of operational activities and slowing down the
meter to provide fast customer services (Bowman and Gatignon, 2010). Relating the same
with the subject matter, marketing function with respect to McDonalds is mentioned below:
Market research:
Since the parameters of the environment is dynamic and keeps on changing, with the help of
marketing function enterprises would be able to point out the respective opportunities and
other demands or wants of the customers or consumers (Kotler and Armstrong, 2013).
Furthermore, market research would also allow the organization to predict the strength of the
competitors and other weakness of the enterprise to remain credible and stable in the field of
competition or challenge. Linking the same, with the help of market research professionals of
McDonalds would be able to identify the expectation, demands, and wants of the customers
and implement the same while framing any decision or judgment (Bowman and Gatignon,
2010). Thus, professionals of McDonalds can also gain competitive advantage by focusing
towards the strategy or planning of the competitors or rivals.
Development of product:
Even though major portion of the marketing techniques is about promoting the products or
goods towards profitable platforms, the same also develop the product in positive way.
3 | P a g e

Relating the same with the subject matter, marketing techniques would enhance the internal
and external environment, which further leads to product development in the market place
(Brassington and Pettitt, 2012). Moreover, relating the same with the subject matter, products
of McDonalds would be developed in an appropriate manner by identifying the respective
loopholes and analyzes the performance of the product in the field of competition or
challenge.
Sales support:
Marketing techniques and strategy put direct impact towards the sales or revenue of the
organization in positive and negative way. By maintaining productive relationship between
marketing departments, proper balance between the executions of activities can be
maintained by the enterprise (Bowman and Gatignon, 2010). Furthermore, by implementing
marketing strategy proper advertisement of the product can be executed by highlighting the
positive or attractive feature of the goods, which further put direct impact towards the
revenue, or operating income of the enterprise or organization. Thus, linking the same,
marketing function would enhance the performance of single department in particular and
enterprise as a whole to grab opportunities and dissolve the uncertainties or risks (Jobber and
Chadwick, 2012).
Arrangement of events:
By arranging the events after regular intervals such as exhibition, seminars etc would enable
the organization to expand in a positive way and reach out to many customers with ease or
simplicity. Relating the same with the subject matter, top level department of McDonalds
with the help of events can attract new customers and retain that of old one (Bowman and
Gatignon, 2010).
Online marketing: With new trend in this century, there is a trend of engaging in online
services in every section. Therefore, the organisation should go more for online trends like
taking order online, introducing the offers online where the existing customers can choose
what they are looking for. Even the feedback of the customers will also involve the customers
who will like the social media page and may recommend others too.
Services after sales: After the sale, there is needed to keep the customers satisfied through
t5he services theta re required like during the warranty period. This is another form of
marketing that will keep the consumers in tough and build b brand loyalty at the same time.
Thus, by implementing the marketing function in an appropriate way, McDonalds would be
able to perform as per the changing parameters of the dynamic environment and attract
customers from all over the globe (Brodie and Danaher, 2010).
P2: Explanation on how the responsibilities and role of the marketing
functions relate to McDonalds in a wider organizational context (M2 & D2)
Marketing functions would enable the enterprise to provide appropriate services to the
customers and accomplish all the goals or targets of the organization in an appropriate
manner. Furthermore, marketing strategy would expand the internal or external boundaries of
the enterprise or organization in such a way that the same contributes towards attracting more
and more customers and retain that of old one (Anderson and Vincze, 2010). Thus, each and
every retail organization is in need of productive marketing strategy to perform all vision and
4 | P a g e

mission of the enterprise and dissolve the uncertainties or risks arising from significant
sources (Bowman and Gatignon, 2010).
There is always a need in terms of tuning and collaboration between the marketing and
finance function since they are interrelated. The marketing criteria, in any industry or
organisation including Mc Donald counts for finance that goes for as an investment to foster
sales. Therefore, both the sections within the organisation need to work in relation to eafdch
other to function properly.
Roles and responsibilities of marketing functions in respect of McDonalds are mentioned
below:
Development of marketing strategy:
With efficient market strategy, organizations would be able to promote the products towards
both online and offline platforms in an appropriate manner and highlight all the tasks or
obligations which needs to be accomplish in an appropriate manner (Anderson and Vincze,
2010). Furthermore, development of strategy would also enable the organization to dissolve
the risks or uncertainties arising from significant sources so to remain active and credible for
longer period of time and duration. Moreover, marketing strategy consider all the parameters
which helps the organization to gain competitive advantage in the competitive or substantive
advantage or benefit in the field of competition or challenge (Winer and Dhar, 2010).
Management of employees:
While Human Resource department is mainly concerned with the affairs of the employees,
marketing managers also contribute towards implementing sense of innovation and
productivity both inside and outside the working environment of the enterprise in this modern
and competitive world. Marketing managers set different tasks or obligations to the staffs and
provide appropriate suggestion to the same to ensure adequate achievement and betterment of
the organization or enterprise (Doyle and Stern, 2010). Furthermore, marketing managers use
to also review the overall performance of each department or staff, which further identify the
loopholes and fulfil the same to remain credible and innovative while performing the
respective operational duties. Linking the same, since the boundary of McDonalds is very
wide and the enterprise provide services to all over the globe, it is necessary for the
respective marketing managers to perform all the respective operational duties in an
appropriate manner and enhance the position of the enterprise in the market place (Anderson
and Vincze, 2010). Thus, management of employees is one of the key stone upon which
organizations use to accomplish both major and minor targets and goals.
Customer Relationship Management
One of the main roles of the marketing function for McDonalds is to create business
relationship with the customers. The reason behind this is that the company faces stiff
competition from the rival businesses in the market. Therefore, unhappy and non-adherence
to the customers perspective would result in loss of customers and thus, the market position
for McDonalds (Mcdonald and Wilson, 2011, p. 75).
Identification of business opportunities
Another important role and responsibility of the marketing function for McDonalds is the
identification of the business opportunities (Doyle and Stern, 2010). This involves market
survey and research for the development of the business through identification of the business
5 | P a g e

opportunities. Sometime the outcomes also involve the dethroning the competitors from
favourable market position while mainly aiming at the development of the business towards
the overall all aims and objectives.
Therefore, it can be said that role and responsibility of the marketing function for
McDonald’s involves identifying the products that are successful in the market and then
differentiating them from similar products to achieve the overall objective. The role and
responsibility also involves customer relationship management, market penetration, market
research, survey, promotions, distribution and internal environment management.
Distribution function: The distribution function is always related to the marketing function or
section of nay organisation and McDonald is no exception. The distributor helps the
marketing to incorporate with the sales of the product in a particular zone or area. Therefore,
this particular function is needed in this organisation in order to foster the output of the
products in a proper synchronised way.
Task 2:
Lo 2: Comparison among the ways in which an organization uses
marketing mix for the overall objectives achievement
P3: Comparison on the ways that McDonalds applies its marketing mix
into the marketing planning process and how these differ from other
similar organization (M3 & D2)
The seven Ps of marketing mix for McDonalds are as under:
Product:
Product is one of the most important elements of marketing mix that enables the company to
achieve the overall objective while on the other hand, develop relation with the customers
(Anderson and Vincze, 2010).McDonalds understands the importance of this marketing mix
element which enables them to serve the customers better and with desired products. The
company adopts differentiated policy in the market which also staying close to its main
products. The customers are served exactly as per the desired, which are collected based on
market research and surveys. For instance, in the Indian markets, the company aims to serve
the customers with more vegetarian items as compared to the non-vegetarian products
(Bowman and Gatignon, 2010). In addition to this, McDonalds also provides a wide range of
products to the target customer that is the children and teenagers while also including various
offers and discounts to manoeuvre their decision in favour of McDonalds.
Price:
The price like product is one of the main elements of the marketing mix for any business,
which mainly involves taking into account the customers’ perception towards the price of the
product for the company. This involves the determination of the worth for the product at a
certain price range for the customers (Beamish and Ashford, 2012). McDonalds has been
very efficient in ensuring that the prices of its products define the products worth. In addition
to this, the company also uses the price mix for increasing the revenue of the business. This
involves two pricing strategy for McDonalds namely the Branded Core Value Product and
6 | P a g e

the Branded Affordability. The pricing mix for the company enables the company to gain
competitive advantage over the rival businesses while attracting large pool of customers from
different backgrounds.
Figure: Marketing Mix 7 Ps
Source: Doyle and Stern, 2010
Place:
The place element of the marketing mix involves both making the products available to the
customers along with the physical location of the company. McDonalds uses this marketing
mix efficient. The company ensures making the products available to the customers to both
increase desired revenue while gaining competitive edge over the customers (Doyle and
Stern, 2010). The place element for McDonalds enable supply chain management while
ensuring facilities like dive in and dive out for the customers. Therefore, it can be said that
the place element of McDonalds has been in integration with the overall objective of the
company to customer base and earn financial benefits.
The implication of Place in compsrion to the competitor of Mc Donald will reveal the
significance of the seven Ps. In this, case KFC in relevant, whose place of providing services
matters in terms of sales of the products. The location if better than the competitors, then that
will affect the sales and growth of the organisation.
Promotion:
The promotion has been one of the key elements for the overall growth and development of
the company in the target market (Hall and Rosenberg, 2009). In the current context of
McDonalds, the company has been fully aware of this therefore, have incorporated both
traditional as well as modern marketing techniques for the products of the company.
McDonalds ensures that the modern techniques help the company increase the market base
for the customers while the traditional techniques ensure that the grip in the market is not
lost. This also results in cost saving for the company while enabling the company to direct the
message to the desired customers.
Promotion of KFC is very much in trend with new promotions every other day in comparison
to the Mc Donald. This particular implication is needed that affects the sales of the products
7 | P a g e

with the concerned organisation. Today’s customers look for more and more offers and
therefore, the need of promotion is very much evident.
People:
The people element for the marketing mix is generally very common for the companies
operating in the same industry (Lancaster and Massingham, 2010, p. 32). Therefore, the
effectiveness of this element of marketing mix is defined by the effectiveness of the
employees and the survey conducted on the employees for improvements and feedbacks. In
the current context of McDonalds, the company provides training to the employees that
enable them to serve the customers better while on the other hand, providing standard
uniform to all the employees.
This common element of marketing mix counts for the employee behaviour that is needed to
incorporate the business properly. The people are the employees who work in the ground
level with the customers in order to carry out the organisational objectives of providing
services to the customers.
Process:
McDonalds have been very efficient in implementation of the process element of marketing
mix for in order to gain competitive edge in the target market and achieve the overall
objective. McDonalds allow the customers of the company to view the manufacturing process
of the products leading to increased transparency. In the words of Mullins and Walker (2012),
the customers around the world have become increasingly health conscious. Therefore, this
move from McDonalds enables the company to increase brand loyalty and market reputation.
The competitive edge of KFC is very close to Mc Donald, which needs to be considered by
the organisations because this marketing mix is different in different a company that attracts
the customers if they come to know the differences between the competitors.
Physical evidence:
The physical evidence in the marketing mix mainly involves the appearance of the business
to the outside world (Winer and Dhar, 2010). McDonalds like all the other competitors in the
markets ensures that the outlets of the business are clean and tidy while ensuring that the
decorum of the outlet and interiors of all the location match with one another.
In this section, the KFC is a tough competitor of the organisation that is needs consideration.
The physical appearance need to be active and in relation to the satisfaction of the customers
that will allow the growth of the organisation in terms of sales and services.
The marketing mix for McDonalds is more efficient when compared to the rival businesses.
The company outperforms its rivals in the effective implementation of the price and place
elements of the marketing mix, which enable the company to gain competitive advantage.
However, the product element and promotion element of the marketing mix enables setting of
benchmark for the industry. However, when compared with other marketing mix both the
rivals and McDonalds have similar techniques and little differentiation. The process element
and the pricing mix for McDonalds is what enable the company to outperform the rivals
while enabling achievement of overall business objectives.
8 | P a g e

Task 3:
Lo 3: Evaluation and development of basic marketing plan
P4: Evaluation on the marketing plan for the current context of
McDonalds (M4 & D2)
The evaluation of the marketing plan for the business involves the understanding on the
importance of the same for higher financial and non-financial gains. In the words of Brodie
and Danaher (2010), the marketing plan for the businesses involves the identification of the
loopholes while also the incorporation of the new strategies and assessment for the effective
of one. The marketing plan involves various factors or aspect. The material factors for the
evaluation of the marketing plan for the McDonalds are as under:
Relation between the marketing plans, objectives as strategies
The evaluation of the marketing plan is most effective in cases when the relation between the
objectives and strategies along with the marketing plan is defined. This enables in
understanding the quantum of the business approach with respect to the strategies and
objectives (Brassington and Pettitt, 2012). In the current context of McDonalds, the company
ensures that the marketing plan of the company are aligned with the objectives and strategies
of the business which in turn enable the company to gain competitive advantage in the target
market by attaining the desired goals. The relation between the marketing plan, objective and
strategies enables McDonalds to understand the progress while highlighting the loopholes
and taking measures for improvement and amendments.
Use of the tools for monitoring
In the words of the Jobber and Chadwick, 2012, p. 47), the monitor based on various
financial and non-financial tools best ascertains the evaluation of the marketing plan. In
addition to this, the financial tools are more directive and better related with the business
outcomes while the non-financial tools provide resemblance to the outcomes and
understanding on the variances. The financial tools involve calculation of the financial ratios
like solvency ratio, efficiency ratio, profitability ratio and the liquidity ratios. These tools not
only point out the loopholes and the quantum of variances while on the other hand, also
indicate the measures on directed points for the improvements (Groucutt and Hopkins, 2015,
p. 55). McDonalds is very well aware of the tools for monitoring its marketing plan therefore,
ensures that the marketing plan are evaluated both before and after the implementation to
ascertain the differences with respect to outperformers and under-performers. The non-
financial tools involves survey and research which enable McDonalds to better understand
the reason for the variances and make adjustments accordingly.
Development of the marketing plan:
Once the monitoring is performed by the company, the changes are incorporated into the
existing plan or a new plan altogether (Kotler and Armstrong, 2013, p. 67). This results in the
9 | P a g e

development of the marketing plan, which again follows the same process while yielding
results that are more effective. The reason behind this is that the loopholes are resulted and
the factor affecting the business of McDonalds are removed or quarantined. McDonalds
ensures that the evaluation process of the marketing plan yield different outcome for the
company. To elaborate, the evaluation of the marketing plan must result in determination of
the variances and in the development phase elimination of such variances.
Selection of the target market
Once the development of the marketing plan is completed, McDonalds incorporates them in
the target market. The target market for McDonalds is better defined when compared to rivals
like Burger King and Taco Bell. This enables the company to not only obtain the desired
outcome but also ensure that the company’s aims and objectives are achieved (Mcdonald and
Wilson, 2011, p. 77). The target market for McDonalds generally remain the same however,
the product differentiation defines the progress of the company in the target market.
Conclusion and recommendation
From the above study, it can be said the McDonalds has been efficient in implementing its
marketing mix and yielding efficient outcome both financially and non-financially. The role
and responsibility of the marketing function for McDonald’s involves identifying the
products that are successful in the market and then differentiating them from similar products
to achieve the overall objective. McDonalds understands the importance of marketing mix
elements, as they enable McDonalds to serve the customers better and with desired products.
In addition to this, the company also uses the price mix for increasing the revenue of the
business that involves the Branded Core Value Product and the Branded Affordability.
Furthermore, McDonalds allow the customers of the company to view the manufacturing
process of the products leading to increased transparency. However, when compared with
other marketing mix both the rivals and McDonalds have similar techniques and little
differentiation.
Based on the above discussions, McDonalds have been recommended to continue with the
pricing strategies and the promotional mix, as these have been efficient for the company in
gaining competitive edge as well as attracting customers. In addition to this, the company has
been recommended to collect feedbacks from the employees as well as the customers
regarding their view on the operations and satisfactory level respectively. Thereby, analyze
the feedbacks and incorporate the changes for achieving the desired objectives and gaining
large pool of customers. In addition to this, McDonalds also needs to ensure that the research
activities are undertaken at regular interval to determine the flow of the business and
understanding the loopholes in the performances.
10 | P a g e

References and bibliography
Anderson, C. and Vincze, J. (2010) Strategic marketing management. 5th ed. London:
Chapman and Hall.
Beamish, K. and Ashford, R. (2012) CIM Course book 07/08 Marketing Planning. 3rd ed.
New York: Free Press.
Bowman, D. and Gatignon, H. (2010) Market Response and Marketing Models, 4th ed.
London: Routledge.
Brassington, F. and Pettitt, S. (2012) Essentials of Marketing. 3rd Ed. Harlow: Pearson.
Brodie, R. J. and Danaher, P. J. (2010) “Building Models for Marketing Decisions:
Improving Empirical Procedures,” International Journal of Research in Marketing, 17 (2),
135-139.
Carpenter, J. M. and Fairhurst, A. (2009) Consumer shopping value, satisfaction and loyalty
for retail apparel brands. Journal of Fashion Marketing and Management, 9 (3), 256-269.
Doyle, P. and Stern, P. (2010) Marketing Management and Strategy. 7th ed. Hoboken N.J:
Wiley.
Eggert, A. and Ulaga, W. (2010) “Customer-perceived value: a substitute for satisfaction in
business markets?”, Journal of Business and Industrial Marketing, 17(2/3), pp. 107-125.
Groucutt, J. and Hopkins, C. (2015) Marketing (Business Briefings). London: Palgrave
Macmillan.
Hall, S. and Rosenberg, C. (2009) Get Connected: The Social Networking Toolkit for
Business. . 7th ed. New York: Kaplan Publishing.
Jobber, D. and Chadwick, F. (2012) Principles and Practice of Marketing. 7th Ed.
Maidenhead: McGraw-Hill.
Kotler, P. and Armstrong, G. (2013) Principles of Marketing. London: Prentice Hall.
Lancaster, G. and Massingham, L. (2010) Essentials of Marketing Management - Page iii,
New York: Routledge.
Lim, S. C. and Lusch, R. F. (2011) Sales margin and margin capitalization rates: linking
marketing activities to shareholder value. Journal of the Academy of Marketing Science, 39:5,
647-663
Lindgreen, A. and Finn, W., (2010) Value in business markets: What do we know? Where are
we going? Industrial Marketing Management. 34, pp.732- 748.
Mcdonald, M. and Wilson, H. (2011) Marketing Plans: How to Prepare Them, How to Use
Them. 7th Ed. Chichester: John Riley and Sons.
Mullins, J. and Walker, O. (2012) Marketing Management: A Strategic Decision-Making
Approach, 8th ed. London: McGraw-Hill Companies
11 | P a g e

Ulaga, W. and Eggert, A. (2010) “Relationship value in business markets: the construct and
its dimensions”, Journal of Business-to-Business Marketing, Vol. 12 No. 1, pp. 73-99.
Winer, R. and Dhar, R. (2010) Marketing Management. 8th ed. London: Prentice Hall.
Zeithaml, V.A., (2010). Consumer Perceptions of Price, Quality, and Value: A Means-End
Model and Synthesis of Evidence. Journal of Marketing, 52(July), pp.2-22
12 | P a g e