Marketing Essentials Report

This report examines the importance of marketing in a business context, focusing on McDonald's as a case study. It explores the roles and responsibilities of marketing functions, analyzes the marketing mix of McDonald's and Burger King, and evaluates a basic marketing plan for McDonald's. The report highlights the significance of marketing in achieving organizational goals and provides insights into the competitive landscape of the fast-food industry.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Roles and responsibilities of Marketing functions.................................................................1
Marketing and Finance: ..............................................................................................................3
P3 Marketing mix of MacDonald's and Burger King.................................................................4
Marketing Plan.................................................................................................................................7
Overview of Company:....................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Marketing includes tactics used by an organisation to promote their particular products or
services in a business environment which is continuously changing. It is essential for an
organisation because it helps in generating awareness among its target customer's. This present
report is based on various marketing concepts, roles and responsibilities of marketing functions.
For this we have selected McDonald's, which is fast food company established at a global level
in 1940 in United States. This report is based on importance of marketing mix and various roles
of marketing in an organisations overall development (Silberschatz,Galvin,and Gagne, 2014).
Marketing mix of McDonald's and Burger king is also mentioned in this report to get an
appropriate overview of a business environment
P1 Roles and responsibilities of Marketing functions
Concept of Marketing
It is the process used by an organisation to promote and sell a particular product by
market research and advertising. It is an crucial factor used to manage an business entity
effectively. In this present report, it is essential for McDonald's to use concepts of marketing to
identify it's target market and to deliver the desired satisfaction to it's target customer's
(Silberschatz,Galvin, and Gagne, 2014). It helps an organisation to work more effectively and
efficiently as compared to it's competitors.
The marketing concepts followed by MacDonald's are:
(a) Production Concept
It is an concept which helps an business entity in generating high production efficiency
by producing widely available less expensive products. This concept will help McDonald's in
improving it's productivity and in gaining competitive advantages in the dynamic environment.
(b) Product Concept
It is an concept which stats that consumer will give more emphasis on a product which
offer quality, performance and innovation. This concept will help McDonald's in producing
superior products and also in improving the existing products. So this concept is mainly
considered to make as many units as possible.
(c) Selling Concept
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It is an concept which stats that the customer will not buy a organisations product until
and unless an business entity show them their selling efforts. This concept will help McDonald's
in undertaking selling and promotion of their products.
(d) Marketing Concept
It is an concept which stats that it is necessary for an organisation to be more effective in
delivering customer value to it's target customers (Brady, 2014). This concept will help
McDonald's to be competitive in achieving organisational goals and objectives.
(e) Social Marketing Concept
It is an concept which stats that an organisation should achieve efficiency, productivity
and satisfy it's customer's needs but in a way to preserve customer and society's well being. It
will help McDonald's to retain it's productivity for a longer run.
Overview
In this report, the main aim of McDonald's is to always be in first position and to improve
it's brand image and quality as rapidly as possible in a competitive business environment.
Marketing process will help McDonald's in obtaining and managing market information for a
quick decision making. It will also help an organisation to convince it's target customers to buy a
particular product
Roles of Marketing
(a) Creating Effective Plan
It is the most crucial role of marketing which helps an organisation in promoting their
products and services and in allocating their resources effectively and efficiently. An effective
marketing strategy will help McDonald's to undertake it's customers consideration and to view
an organisation from client or customer's perspective (Opolšek, and Čurin, 2012). It will also
helps an organisation in identifying growth opportunities and also in eradicating threats that are
harmful for an business entity.
(b) Managing Customer Support
The good customer support will directly effects bottom line of an organisation and also
helps an organisation in acquiring fresh customer's. In this context, it will help McDonald's
employee's to work as a team in solving various problems that are faced by their customer's. An
organisation with satisfied customer's will always be productive and effective as compared to
other organisations with unsatisfied customer's.
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Responsibilities of Marketing
(a) Responsibilities towards other departments
It is also major responsibilities of marketing to make other departments profitable and
viable by evaluating it's competitors and by preparing various promotional strategies. It will help
McDonald's in improving it's overall growth toward it's specific goals and objectives.
(b) Responsibilities towards customers
An effective marketing strategy helps in building a bridge of communication between a
client and it's customers. It will help McDonald's in identifying their customer's needs and
opportunities for improving a particular product. The main responsibility is to retain it's
customer's for a longer period in a competitive business environment.
P2 How roles and responsibilities of marketing relate to wider organisational context.
Marketing is a process of formulating business relationships. It mainly focus on
satisfying needs of customers. This is a process of creating, exchanging, communicating and
delivering of goods and services in order to achieve consumers interests. Marketing plays an
important role in organisation to gain their desired set of productivity and profit margin.
Organisational structure is systematic arrangement of responsibilities, rights, duties and authority
of an organisation (Huang and Sarigöllü, 2014). It defines how roles and responsibilities are
authorized to each and every level of company. In context with, McDonald's which is a fast food
company situated in UK, its marketing team help in promoting business every where in the
world. They support other departments in operating their functions more appropriately.
Marketing and Finance:
Marketing and finance are one of main important pillars of any organisation on which
their growth and profit depends. Department of finance mainly concerned with financial aspects
that includes cost, budget, profits and financial performance of company. On the other hand
marketing is concerned with advertising, sales and publicity. Hence, functions of both
departments are interrelated with each other’s. McDonald's marketing and finance team by
working together can bring out outstanding results for company.
Marketing and HRM:
Marketing mainly involves Branding and communicating to consumers in order to
generate profit for organisation. On the other hand, human resource deals with recruiting and
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hiring of individuals in business departments. Both branches are complementary to each other to
generate high productivity (Armstrong and et al, 2015). Thus to obtain prosperity and profit
Marketing and HRM unit of McDonald's must carry their work together which can help to
introduce finest goods and services.
Marketing and Research& Development:
Research and development area deals with investigation of activities in order to develop
existing products and services. In this dynamic world where things get change frequently it is
important for an organisation to adapt this modern scenario to attain success. While marketing is
primarily concern with advertising and branding of products and services Hence, Marketing and
Research team of McDonald's need to work together to achieve pre-determined goals and
objectives.
Marketing and Production:
Marketing and production body are complimentary to each other while, marketing team
helps production team to provide information about consumer’s preferences and demands. On
the other hand,production team helps marketing unit by giving them highly valuable and
satisfying products which automatically fulfils organisational need to achieve good will and
profit to perform best in marketplace. Therefore, production and marketing team of McDonald's
can attain high success and growth worldwide if they work together.
Value and Importance of Marketing Role
Marketing plays a very essential role in organisation to builds smooth relationship
between consumers and company. It helps in providing more advanced level of customer
satisfaction that naturally builds consumer loyalty which results in generating production and
goodwill for company. This team coordinates with all other organisation team in order to
generate best results for company (Clow and James, 2013). McDonald's marketing team by
playing complementary with all other functional departments in their organisation can able to
accomplish profit and growth level in higher manner.
P3 Marketing mix of MacDonald's and Burger King
It is a tactic that is used by an organisation to promote it's product or services in a
competitive market. It will help McDonald's in making up an effective business plan to develop
marketing intelligence. It will also help an organisation in identifying an suitable marketing
strategy to increase it's productivity in a dynamic business environment. It also play a crucial role
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in distribution and flow of goods and also in ensuring that a product is at right place in a right
time. It generally acts as a guide to increase productivity of an organisation for a longer run. It
has a strong portfolio product which make McDonald's different from it's competitions (Silver
and et. al., 2012). It will help an organisation to identify it's strength and in overcoming its
weaknesses to retain its effectiveness in the dynamic business environment. If the company will
these kind of strategies and tactics then will achieving the set objective of the firm and meet
organisational objectives. Marketing mix is a set of tool which can be used the management of
the company uses to pursue its marketing objectives in the target market. Marketing mix
consider various components like, product, price, place, promotion, people, process, physical
evidence. In this context, we will discuss the seven p's of marketing mix followed by
McDonald's and Burger King to be an competitive business entity in the market.
7P'S MacDonald's Burger King
Products McDonald's provides variety of options
to its customers like burgers,
sandwiches, fries, shakes, salads and
drinks. It's products taste varies
according to the location of a product.
The quality of its products help
McDonald's in gaining a competitive
advantage.
Burger king also provide same variety of
options to its customers like burgers,
sandwiches, shakes, salads and drinks. It
also emphasis on introducing new
products and improvising the existing
products.
Price McDonald's is using many price
techniques like value pricing, price
discrimination to sell their particular
product. It provides food to its
customer at an affordable price to
acquire new customer's also.
Burger king also provides quite affordable
products to its customers to improve its
brand image and integrity. It provides
product at a lower rate to give
MacDonald's a competition by acquiring
its customers.
Place It generally refers to a distribution
strategies of an organisation to gets it
product delivered to its customers. The
It's distribution strategies are same as
MacDonald's but it does not follow an
intense distribution strategy which means
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strategies of distribution in McDonald's
is differ from areas to areas. It has
intense distribution system as its
restaurants are open 24 hours a day in
some areas.
it's restaurants are not open 24 hours a day.
It is located in all prime locations and all
residential areas.
Promotion It has most amazing advertisement as
compared to its competitors. It uses
many advertising methods like internet,
television, newspaper to communicate
to its customer's. It uses various sales
techniques as well for instance, if you
buy two medium meals then it will give
you one drinks free of your choice.
It uses advertising methods like television,
hoarding, bus shelters etc. it's main target
customers are children's and also uses
placing of pamphlets all over in its outlets.
People Approximately 97000 people are
working in McDonald's in UK and 70%
of its restaurants in UK are owned and
managed by local businessman and
women. The main objective of
marketing mix of McDonald's is to
solve customer related issue to increase
its productivity in a business
environment.
It gives rewards and compensation to its
employee of the months which will help in
motivating it's employee's and in
increasing effectiveness among its
employees.
Physical
Evidence
It includes element of physical
environment and customer experiences.
It generates a good impact on
McDonald's as well as it's customer's. It
manages its physical environment
(which includes condition of its interior
environment) really well.
It impacts not only outsiders but also in
the way business functions. It will help
Burger King in giving strong competition
to its competitors.
Process It refers to the certain activities that are It also provides transparency in a food
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performed to achieve some specific
objectives for an organisation. In this
context, food making process is a key
factor so that should be transparent for
its customer's which will help an
organisation in generating loyalty
towards their target customer's
making process and has introduces new
attractive methods of packaging and
distribution to gain some competitive
advantages.
So marketing mix of both McDonald's and Burger King are good but McDonald's has
been ruling this market for a longer period which will help this organisation in gaining its
customer's loyalty which indirectly leads in increasing its production level. The advertising
strategies followed by McDonald's is more efficient as compared to Burger King (Rossi, Allenby
and McCulloch, 2012). It uses various digital channels mainly print and media to increase
awareness about its products and also to promote its products.
P4 Produce and evaluate a basic marketing plan for organisation
Marketing Plan
It is a document which contains all range of comprehensive business plans. It is a
blueprint which outlines marketing effort for future. It is written formal structure which contains
strategies and future predictions to achieve organisational goals and marketing objectives. It is a
process of identifying consumer wants and manners in which company can satisfy those needs.
Marketing plan justifies those actions which are going to use in completion of businesses goals
(Babin and Zikmund, 2015). These strategic plan will help McDonald's in introduction of new
products and remaking of existing products. This plan includes marketing research, gathering of
relevant resources, strategies management, making planned budgets and goals and monitoring
overall plan results.
Overview of Company:
McDonald's is one of largest UK fast food restaurant chain. It is founded by Richard and
Maurice McDonald on 15 May 1940. Currently McDonald's is having more than 37,241
restaurants and its headquarters is in Chicago. This company is mainly famous for their
Hamburgers, French fries and cheeseburgers. There generates their revenue from royalties, rent
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and fee paid by its franchisees. Number of employees working in this organisation is more than
235,000.
Vision
McDonald's is committed to their people and are striving continuously to grow an
improve. It vision is to be world's largest quick service restaurant. And provide best outstanding
quality, cleanliness, service and value in order to make consumer in their every restaurant smile.
Mission
McDonald's mission is to be their customers favourite place and way to drink and eat.
They are committed to people and operate their business ethically. Company put continuous
focus on their customers to grow large and attain business success. They are dedicated to their
employees who are the foundation of their growth and achievements. McDonald's believe in
performing work with honesty, integrity and high standards (Lovelock, 2011). They support
charitable work and have built Ronald McDonald House Charities.
Marketing Objectives
McDonald's wants to enhance their sales performance by increasing 20% more sales
volume in upcoming 2 years.
SWOT ANALYSIS
With the help of this analysis McDonald's company is going to find out their weaknesses,
strength, opportunities and threats.
Strengths Weaknesses
 McDonald's is having good image in
their customer’s mind. It is largest fast
food restaurant chain.
 They act very supportive towards
charity and provide healthy and quality
food products.
 This company serves their products and
services worldwide. Customer loyalty
is one of their most important strength
 Company is having largest market
 Their quality somehow matters due to
different franchisees operations and
weak product development.
 They lack in product innovation and
contain heavy calorie in their menu.
 Company is having less vegetarian
options and are criticized for unhealthy
eating.
 They increase price due to rise in
competition. And neglects poor
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share value. Their Facebook page
display nearest locations.
 Company is having largest market
share value.
 They have very strong determination
toward their customers health and
quality of food.
restaurant conditions
 They have low market share and less
gross margin.
 Products serve by McDonald's is
narrow as compared to other.
Threats Opportunities
 There is vast amount of fast food
restaurants are opening as competition.
 Society changes towards more health and
balanced meals
 There is a poor economic situations
prevailing globally.
 High intensified competition are
generating worldwide.
 Decrease of market share of company in
global markets.
 They are having lack of media and press
support
 McDonald's can expand their
businesses in Asian markets.
 They can innovate their products by
making heather menu.
 It can make collaboration with other
brands and food chains.
 They can diversify their business
franchisees and attracts new consumers
and clients
 They can use internet in promotion
methods and promote awareness which
can foster company growth.
 Company can take more utilization of
media coverage.
STP Model:
Segmentation:
It refers to a process of dividing wide range of markets into smaller group of consumers
which will helps an organisation in meeting needs of customer on a particular product.
 Geographic: It includes the customers which are based in geographic regions.
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 Behavioural: In this context. includes group of people according to their
behaviour towards particular product of an organisation and their loyalty towards
their products.
 Demographic: It is the process of dividing people in accordance with their
gender, marital status. Education and many more.
Targeting:
It is the process used by companies which involve individuals and group of people
targeted by a company to sell their products. In context with McDonald's, this company mainly
target youngsters and business class people who have less time to cook own food. Such targeted
audience would like to eat fast food products on regular basis.
Positioning:
It helps in analysing position of a company in a competitive market. It is important for an
organisation to know it's position by evaluating its competition in a dynamic business
environment. In this context, McDonald's also uses this concept to know level of brand in a
market.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year
Initial
money
10000 5000 5000 5000
Investment 10000 10000 6000 5000
Total 20000 15000 11000 10000
Marketing
outlay
15000 1000 3000 5000
Promotion 4000 1000 5000 2000
Sales
publicity
2000 2000 1000 1000
Direct
selling
4000 3000 1000 1000
Total 25000 7000 10000 9000
It is essential for every organisation to generate marketing budget plan in order to
evaluate details of investments of funds. With the help of this plan company can able to make
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estimate budget on how much fund they need to investing and at what amount. This plan strategy
is very essential for both small and large level of organisations. This plan is formulated in the
context of McDonald's (Baker and Saren, 2016). With help of this plan company can also
determine customer behaviour on their products and services. It also helps the marketing
manager to examine that those plan which manager formulated are working as per according to
company objectives. This plan plays a very important role in company growth and performance
(Baack, Harris and Baack, 2013). Hence it is essential of each and every kind of organisation to
prepare well set marketing strategies to attain desire objectives.
CONCLUSION
From the above mentioned report, it has been concluded that marketing plays a very
important role in order to gain success. Marketing plays very important role in every level of
organisation. It works complementary with all the departments of organisation. Marketing
manager must need to understand their responsibilities to increase productivity. Marketing is
consumer oriented process which focus on satisfaction level of consumers. A proper marketing
strategies prepared by manager can help a company to retain and generate more amount of profit
and enhance effective performance level of organisation. It provides link between customers and
company which generate smooth relationship bridge. That will help company to low their
wastage level. So it is important for any company to build effective marketing plans to perform
well in world wide market.
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