The Extended Marketing Mix for McDonald's

This assignment analyzes McDonald's marketing strategy by applying the extended 7Ps model. It delves into how the company utilizes each element of the mix, such as product, price, place, promotion, people, process, and physical evidence, to achieve success in the global fast-food market. The analysis considers various aspects of McDonald's operations, including customer experience, brand image, and competitive positioning.

Unit 2 Marketing Essential
Student name: Iuliana Dolcescu Marica
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Introduction:
Business is the major contributor to country’s economy and most of the business
organisations have expanded their business across the world. In this present world, marketing is
the heart of a commercial firm as success of business depends on stakeholders and the main
objective of marketing is to attract stockholders from the market. Different aspects of a business
depend on effective marketing. The umbrella of marketing covers several aspects such as public
relation, advertising, sales, and promotional activities. Marketing allows an organisation to
introduce or promote the product or service into target market. Without proper marketing
customers, will not be able to identify a brand even it has better potential to fulfil the customer
need. Marketing is also essential to increase company reputation, marketing constructs brand
name and develop the brand image by making customer expectation towards the firm. Healthy
competition into the market also takes place through effective marketing policy. Since, customer
expectations influence to innovate new product as per market demand and firms of an industry
innovates products for accruing the market fast. That increases the market competition that is
important for business growth and marketing does this for the marketer. To discuss marketing
essential, case study of McDonald’s the renowned food chain organisation of the world has
adopted in this report.
Task 1
Key role and responsibilities of marketing function of McDonald’s 500
P1 – Explanation of the key roles and responsibilities of the marketing
function of the organisation
The marketing play an important role and responsibilities for the organisation because it
provide the effective and appropriate information to the customer of the McDonald's
organisation. McDonald’s operates almost all over the word under a very competitive situation.
The media is cluttered and there are other international competitors like KFC, various national
and local competitors in each host country apart from the home country USA. On the other hand,
McDonald’s is one of the best-known brands in the world, with a very strong brand recollection
and brand recognition (Brady, 2010). The marketing functions role is to continuously build the
brand by listening to and communicating with the customers. Branding only occurs when
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McDonald’s behaves and presents itself in a consistent way. The marketing communications
methods including the advertising material, its insertion in media, publicity, event management
are all handled by the marketing function. The market function is useful for any kind of
organisation because it provide the information of the new and innovative product and service to
the company and also satisfy the wants and desires of the customers. So, the market play an
important role in the place of the company.
The marketing function also creates loyal customers. This involves identifying the customer
needs
And the demands, tastes and perceptions and meeting these needs in some better way
than the immediate competitors who may be international, national, or local. By analysing
detailed information about customers from market research, the marketing wing can create the
product and the right marketing mix (Boone & Kurtz, 2014).
There are some responsibilities of the marketing function in the place of the organisation.
They are given below:
 Strategy: The effective market is helpful for developing a strategy in the
organisation. The effective and appropriate strategy always helpful for increasing
the sale of the organisation. It is also useful for making the effective decision.
 Product development: The market function is responsible for the product
development of the McDonald's because it provide the effective price and
information related to the products.
 Sales support: Market function also responsible for the sales support in the
organisation. It provide the effective quality product for their customers and
satisfy them for the product and services ans increase the sale of the company.
 Communication: An effective market provide the effective communication to the
McDonald's organisation. The effective communication is the success of any
organisation and organisation.
 Events: The market is responsible for any kind of events for selling the product
and service of the company. The events may be, exhibitions, seminar and
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hospitality events etc. These all are the helpful for awareness of the customers
about the product and services of the company.
M1 Analysing the roles and responsibilities of marketing in the context of
marketing environment of the organisation
The marketing function of the company communicates about the product and service to a
wider audience. The function identifies the local culture of the host country or location and
identifies the overall company objectives and the marketing objectives. In this way, the
company can identify the local taste and thereby the communication of the global brand in the
local environment and culture is delivered (Rohn, et al., 2014). The target markets in different
countries can identify the company to be fulfilling their own tastes while at the same time the
marketing objective of the organisation are served. The role of the marketing is important in the
context of marketing environment of the organisation. The marketing environment play a vital
role in the organisation because the effective environment provide the effective role and
responsibilities to the market in the organisation. It provide the target market to the purpose of
the organisation. The market function is helpful for the defining the taste and preference and
needs and wants for the product and services. The McDonald's organisation is helpful for
providing the quality food to their customers. The effective market provides the information
related to the food of the McDonald's organisation.
The marketing function identifies the social customs and tastes of the different locations.
For instance, it is the marketing function’s offshoot of the company in India that identifies that
there is a local taboo about consuming beef. Thus, the marketing communications are done
accordingly by highlighting on chicken, mutton etc. and by barring beef from the outlets’ menu.
The production department is showed the way by the marketing function (Khan & Khan, 2011).
By means of interactions with the consumers and by market research, the marketing function can
identify the technological factors regarding the organisation McDonald’s. It comes in ways like
information about whether the customers in a country are more proficient to book McDonald’s
food from the nearest outlet by internet ordering. In that case the company’s selling is facilitated
also by the dedicated company websites with SEO activities, meant for the subject location in a
country.
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Relationship of marketing function with other organisational aspects
500
P2 Explanation of how roles and responsibilities of marketing relate to the
wider organisational context for the organisation or scenario
One of the responsibilities of the marketing function at McDonald’s is to be more
accountable in the company and is deemed to create premises for improvements in the
shareholders’ wealth. It is also helpful for the awareness related to the product and services of
the company. The market function is determine and define the needs and wants of the consumers
and satisfy them for the product of the company. In the modern time, the entire organisation is
based on the market because the market is the backbone of the company. The market is the
integration of the entire company. The effective market function is helpful in the decision
making for the organisation. Without the market function, a company cannot survive in the
world for their product and services. The market function is also provide the strategies to the
company because with the help of the effective strategies a organisation can increase the sale of
their product and services at the higher level and make higher profit through the product. There
are two type of the organisation. The first one is the profit making organisation and second one
is the non-profit organisation. In the profit making organisation, the market provide the large
number of product and service to the organisation and will make the higher profit on the product
and services. The second one is the non-profit organisation, in which the market provide the
quality and branded product to the welfare of the society. This type of organisation not work for
the profit, they work only for the welfare and the awareness of the society. In that way, this
function is more integrated within the overall functions of the company. It also has an integration
with the research and development and production wings of the organisation. Marketing operates
with the public face of the organisation. Hence the marketers of McDonald’s show concern for
people and environment (Valax, 2012). McDonald’s marketing believes that their actions should
have a positive impact on society. The effective role and responsibility provide the effective
action for the organisation. The McDonald's provide the quality food to their all customers and
increase the sale for the growth of their organisation. The market analysis the demand of the
consumers and their requirement for the products and services of the organisation. So, the
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market play an important role in the wide organisation and make it effective for their customers.
It is the duty of the marketing wing that there is sustainable sourcing policy for food material and
packaging. The relevant departments of procurement also act accordingly. So, these role and
responsibilities of the market function is most important for the wider organisation context and
make the organisation effective and efficient for the customer of the organisation.
M2 Analysing the significance of interrelationships between marketing and
the other functional units of the organisation
 In terms of the shareholders’ wealth, the marketing function of the company thrives to
garner better sales and better revenues so that the profitability of the company is
increased and thereby the dividends, etc. payable to the shareholders also augment. This
is also like aligning the functions of the marketing wing to the functions of the finance
department. It joins the finance wing by creating new avenues for the company to see to
it that the shareholders’ returns are improved and that there is a favourable situation for
the shares of the company to be of more value. Regarding the integration of the research
and development and production, the marketing function constantly thrives on gathering
feedback from the customer facing staff about the present tastes and perceptions about
fast food in the market (Talpau & Boscor, 2011). It also conducts market research to
know from customers of competitors about the new food that they liked. This feedback
and the analysed information from the market research are fed to the research and
development wings and the production wings of the company for preparing or if possible
for innovating special dishes. The significance of these interrelationships with the other
functions indicate that on one side the marketing function of the company is the key
department which guides the organisation towards one of the company objectives in
financial terms. On the other hand, it acts as the eyes and ears of the organisation in terms
of assessing the need and demand and making that known to the production and design
people to carry the organisation forward. There are some interrelationships between the
marketing and the other function of the organisation. They are:
 Finance and Marketing: The finance and marketing both are the interrelated with each
other. The effective plan of the marketing include the concept of the finance. It include
the cost and profit of the product and services.
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 Customer service and Marketing: the market provides the services to their customer and
the customers provides the more and more customers to the market.
 Production and Marketing: The production is helpful for produce the new product and
service which is market and the market identifies the demand of the consumer and
forecast the demand of the product.
D1 to critically analyse and evaluate the key elements of the marketing
function and the way they interrelate with the other functional units
of the organisation
The marketing function of the company communicates with the product and service to a
wider audience. The function identifies the local culture of the host country or location and
identifies the overall company objectives and the marketing objectives. The barring of beef in
some countries’ majority’s food items is conveyed by the marketing function to the production
and purchase wings. Accordingly, the production designs men with mutton, chicken or vegetable
material in those locations and the procurement division controls the purchase of beef (Feng,
2010).
Marketing function decides on the marketing mix of the offer. In that way, the element P
in Place of the marketing mix is decided upon by the marketing wing. Consequently, the
locations of the outlets, depending upon the demand than can be generated from an area, are
finalised by the marketing wing. This scores a relation with the logistics departments as this
decides the distances and points where the suppliers should deposit the raw material (Reyes &
Kleiner, 2013).
The marketing function decides on the profile and the training to be imparted to the
various sales staff and delivery boys. In this way, there is interrelation with the HRM wing. It is
the marketing function which realises that they have a role in imparting a positive influence on
society. In that way, the marketing function has interrelation with the CSR wing of the company.
There are some key elements of the marketing function. They all are given below:
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 Have clearly defined objectives: It is the one of element of the marketing
function. Which having the clear objectives for the success.
 Optimize for maximum conversion: The marketing function is provide the
effective conversion to the market and it increase the communication with
people.
 Know exactly who your audience is: A market need to identify the audience
for the market product and services. If the market are able to identify their
audience in that case, a market can work effectively.
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Task 2
M3, D2 Marketing Mix for McDonald’s
In a discussion about the marketing of an organisation, marketing mix is the most important tool
that can achieve the marketing objectives. The marketing mix is used to produce the desired
response into the target market. This tool consists all aspects that a company can perform to
influence customers about the product or service. Marketing mix consists 7Ps to influence the
target market. The 7Ps are product, price, place, promotion, process, people, and physical
evidence (Gordon, 2012). In this following section, the report will discuss 7p marketing mix of
McDonald’s.
Figure 1Marketimg Mix( 7Ps)
Source: (Hashim & Hamzah, 2014)
Product: The first P of the marketing mix is Product; the product is the item that manufactured
by the firm to satisfy the needs of people. The product is the first need of the consumer and a
company need to provide the quality product and food to their all customers. The product can be
tangible and intangible since it can be a good or a service (Khan, 2014). The tangible goods are
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those goods, which can be touched and felt by the consumers. The service is the intangible
which can be touched and felt by the consumers. Being a food chain business entity,
McDonald’s produces food items as their products. They also want to place right product for the
right market and McDonald’s has a wide range of product to attract customers from different age
group. A wide range of first food products such as different chicken sandwiches, wraps and
French fries, hamburgers and cheeseburgers attract customers who have a different preference
for food. They also provide different types of salads to boost the taste, several shakes, desserts,
and soft drinks are also in the menu to make the customer experience better (Great Tastes Of The
World, 2016). McDonald’s also has coffee in their product line as most of the people like to have
coffee with light shakes and it makes attraction in customer mind to buy food from this food
chain. However, the firm has more the customer but they must concentrate on nutrition value of
products to make positive customer perceive about McDonald’s food.
Price: Price of the product is generally the amount that product demands from customer to fulfil
the need. Price is the most important aspect of the marketing mix as it determines the profit of
the firm (Chikweche & Fletcher, 2012). The price of the product effects on sale and demand of
the product so that a business establishment must set the price of the product very carefully. The
McDonald's organisation provides the effective price and cost for their food to the consumers.
McDonald's identifies the taste and preferences of the consumers and satisfy their needs and
wants through the product and services. McDonald’s adopts cost leadership pricing policy to sell
their popular and signature products. As the cost leadership price allows the firm to generate
profit along with competitive advantages. For soft drinks and other general products such as
coffee, and fries they use competitive pricing policy to compete with competitors. McDonald’s
also has the new concept of combined meal that is also an effective tool to offer quality food to
customers with reasonable price. McDonald’s believes that products are not only the physical
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World, 2016). Therefore, they cannot sell their product with low price than the other players of
the market to retain the customer trust about the quality of the product. Customers feel low
priced goods always compromise the product quality to maximise business profit. McDonald’s
has launched combined meal system to lower the cost of packaging and maximise the sale of less
popular goods like French fries. Combined meal with reasonable price attracts more customer to
have quality food.
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Place: The third element of the marketing mix is placed and it is also an important element to
reach customers from target market (Anitsal, et al., 2012). The place is the main and major part
of the marketing mix. The place decides the size of the organisation and number of production.
McDonald’s has adopted aggressive expansion strategy to reach customers from the different
potential market across the world. Depending on this business strategy they have established
more than 36,000 stores in more than 110 countries of the world. The business aims to provide
their food no only in urban location; they want to make their footprint in rural areas of a country.
The company has the view as ‘McDonald’s looks for the best locations within the marketplace to
provide our customers with convenience.’ (Great Tastes Of The World, 2016). It shows thinking
of McDonald’s about placing of their business. The company has franchise system to expand
their business worldwide, the franchise system also allows the firm to reach vast customer base
through similar service. They placed a franchise in different areas like shopping malls, airports
to attract people from different market segments. The strong distribution strategy of the business
also helps to increase their customer base by fulfilling the customer needs as per market demand.
Most of the food chain organisations tend to establish in most location to reach the sale of
passing by customers. McDonald’s has effective placing strategy to serve the target market of
their business.
Promotion: Promotion is the element that can increase brand recognition as well as sales.
Promotion includes the advertising for the promotion of the goods and services. The advertising
increases the awareness for the product and services and promote the product effectively.
Promotion includes, advertising, personal selling, sales promotion, event marketing, and
publicity etc. Promotion is the combination of various elements such as public relation,
advertisement, sales promotion, and sales organisation (Brooks & Simkin, 2012). Advertisement
promotes the brand through television, radio commercials, and print media. The firm uses both
the traditional and modern promotional strategy to grow the customer attraction. Public relation
also has maintained by them through different communication process. McDonald’s sponsors
different events in their business location to make the customer aware of presence of the brand.
They also participate in different food exhibition to launch their new products that help the
organisation to get the advantages of word of mouth promotion into the market (Akturan &
Tezcan, 2012). The informal communication between customers and seals persons of the firm
also can be considered as an opportunity of word of mouth promotion. The social media
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promotion also paves the way of word of mouth promotion. Most the people like to share their
feelings about consumer goods or services through social media. This public interaction also
helps the business to reach more potential customers at the same time.
McDonald’s also use the system of direct mail to promote new or existing products. This
approach helps the organisation to boost their sales. Customers feel valued when marketers send
direct mail about offers and other benefits of their preferred products. McDonald’s has launched
different TV commercials as per the food habit and food culture of a different country (Great
Tastes Of The World, 2016). This also brings positive feelings in customer mind about the
brand. People like to consume the brand that values their culture and belief.
People: The people is the first priority of the marketing mix because without people the
organisation cannot survive in the market. The people are helpful in the decision making in the
organisation. the extended marketing mix has included people to increase the competitive
advantages of business. In this present world customer like have more than the product and the
service of a business firm is the desire of customers (Hashim & Hamzah, 2014). People have a
shortage of time for their lifestyle and they want to save time from every activity of a day. In this
situation, effective service into the restaurant can attract people from the market. McDonald’s
believes that trained people can serve the customer more effectively than the untrained one.
Therefore, they provide a training program for new employees to increase their efficiency. In
food chain, business sales people has a vital role to make and retain brand image among the
customer. The standard and uniform also are an evidence of people management (Great Tastes
Of The World, 2016). Proper uniform helps the customer to recognise the people with whom
they can communicate about their requirement. The friendly behaviour of McDonald’s peoples
also an advantage for business, which increase customer satisfaction and customer trust.
Process: Customers of the present world like to gather information about the product or service
before consuming them. The process is important for the organisation because it manage the
activities of the company. Without it a company cannot manage their activities. The process of
the product or service is also an attraction for customers to judge the product as per their
perception (Ahmed Zebal & Goodwin, 2012). Customer perception of the brand plays a big role
in purchase decision making. To consider this element, McDonald’s has implemented the
strategy of the open kitchen, the processing of food is transparent in McDonald’s restaurants.
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They also use the local raw material to maintain freshness of their foods and salads that are also
a vital part of their business process, which helps to grow the local economy where they operate.
Physical evidence: the last and important aspect of the marketing mix is physical evidence.
These aspects make sense of existence, customer like to talk about those brands or products
which have physical presence into the market (Kushwaha & Agrawal, 2015). McDonald’s also
believes in this theory and give important on clean and hygienic interiors of their restaurants.
The brand maintains the same interior for all the market, which make the positive image in
customer mind about the brand and its image.
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Task 3
M4, D2 Basic marketing plan of McDonald’s depending on marketing
mix
The marketing mix is a useful marketing tool to hit the target market of business. Most of
the organisations use marketing mix policy to create desired response in the target market. It is
the effective tools of the marketing and manage the 7P' s of marketing which is useful for the
organisation success. Marketing mix provides the effective marketing plan to the organisation.
The effective marketing implement the effective plan for the McDonald's. It provides the new
market and existing market to the company. It also identifies the taste and preference of the
customers. This tool also helps to make an effective marketing plan for a company for
developing the business in both existing and new market (Hollensen, 2015). McDonald’s also
applies marketing mix tool to make their marketing plan. The following section of the report will
discuss marketing plan of the firm per the marketing mix. Since the organisation gives
importance on all the aspects of the marketing mix to grow the business across the world.
The marketing management must give emphasis on product innovation to retain their
market reputation. The food chain business must introduce different food products to change the
taste of customers. People feel bored to have same food item for a long time and like to change
the taste. Hence, McDonald’s will research the market to innovate new products as per future
needs of the market. It has a little negative reputation about the nutrition level of food items.
Some customers have perception as McDonald’s provides unhealthy foods and they have not any
product line that fulfils the needs of those people who are health conscious (Sadjadi, et al.,
2012). McDonald’s must implement nutritional food for customers. Most of the countries have
implemented rules and regulations to face the issue of obesity, and all the food chain
organisations are bound to follow the rules while operating business. Nutritional food could be
the first strategy to attract more customers from the market. Food products as per local culture
also would be useful for the business to attract customers from a different market. As Indian
market has a vast amount of vegetarian people, who will never take any non-vegetarian item to
fulfil their need of food. McDonald’s will implement both nutritional and culture based products
to make the stronger product line as per market demand.
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There are strong competitors into the market like Pizza Hut, Dominos, Burger Kings, and
others, so customers have a wide range of choice to whom they buy. In this situation, sometimes
customers prefer cheapest providers or best offers on the market. The existing customers have
the perception about the normal and reasonable price of the product, and they compare the
products before purchase. McDonald’s must set the price of the product as per the overall market
situation. Competitor based pricing policy would be useful for them to attract the customer to
have the new products. The advantage of this pricing policy is that the selling price will be line
with competitors. However, the price will not be the competitive advantages for business. They
should focus on other aspects of the marketing mix to gain competitive advantages. As
marketing plan has the aim to gain competitive advantages for the business as per the different
market situation.
They also must place their business in the different potential area of a location.
McDonald’s mostly placed their franchise in the most populated area of both urban and rural
area (Hollensen, 2015). The young age people is the target group of McDonald’s for nutritional
products because most of the young people are health conscious. McDonald’s can establish
franchise nearby colleges to obtain the young age people as a customer. The corporate area of a
location also will be beneficial for the business to sell food items. People like to have good food
and favourite coffee during the take short break from the job. McDonald’s can target this group
of people by establishing restaurants incorporate area. Online stores also will be the god strategy
to place the business on the market. Customers will be able to get the product anywhere they
need it can be workplace or home. This will make the customer more convenient while the take
decision to have food from outside.
Promotional strategy is the most important aspect of the marketing plan. There are
different choices for customers to fulfil their needs so that the business firm must make a distinct
image in customer mind about the brand. McDonald’s has a good market reputation for their
quality product and customer service, and they must retain this reputation (Boone & Kurtz,
2014). New and different promotional strategies must adopt to increase the market reputation.
The loyalty program such as card system for regular customers can be the impactful promotional
strategy. Corporate social responsibility also can be the effective strategy to attract people
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towards the brand. CSR activities will improve social and environmental wellbeing and attract
investors for the business.
Frequent training for both existing employees and new employees is also important to get
competitive advantages. People like to have proper service from their favourite brands to enjoy
the product or service. Effective employees as per the nature of business can be the most vital
strength for business (Brady, 2010). McDonald’s must grow effectiveness of their employees to
attract customers from the market. Managers also must interact with customers to measure the
performance of their sales stuff. It will also increase the level of customer satisfaction about the
service of the firm, which is also a target of the marketing plan.
McDonald’s has an open kitchen to show the manufacturing process to the customer and
they also can implement an advance process to hone hygiene within the store. That will increase
the brand reputation of the business and bring the competitive advantages. Physical evidence
also can be shown to customers by implementing different offers like lucky draw on the
purchase. The winner customer would be selected to visit the McDonald’s head office as the
reward of lucky draw.
Conclusion:
Depending on above discussion it can be said that McDonald’s has a good marketing
strategy to grow their business into the market. Marketing management of the firm works to
support other functional departments. The marketing department determines the place of stores,
which is an important part of business expansion. Marketing group of the also determines the
product line by making effective market research on existing and potential customers of the
brand. The future need of customer helps the organisation to set their product line that has the
potential for business growth. Promotional strategy of a business is the most vital aspect of
business success, and marketing department allows the firm to set the effective promotional
activities. The firm can implement effective CSR activities to increase their market reputation.
Most of the countries are concerned about environmental issues, and they want support from a
renowned organisation like McDonald’s. In this present time, the popular organisation can
implement quality CSR activities to get the support from the local population. Quality training
program for all employees also essential for McDonald’s to grow the business as per
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expectation. Innovative products also can be the strength of the business to make more profit
from the market.
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