Marketing Management Functions & Mix

This assignment delves into the crucial functions of marketing management within a business. It examines various marketing activities like market research, product development, pricing, promotion, distribution, and customer service. Furthermore, it explores the concept of the marketing mix (7Ps) – Product, Price, Place, Promotion, People, Process, and Physical Evidence – highlighting their importance in achieving marketing objectives and driving business growth.

UNIT 2 Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Roles and responsibilities of marketing function...................................................................1
M1...............................................................................................................................................4
P2 Functional areas in organisation and relation to marketing functions...................................5
M2...............................................................................................................................................7
D1................................................................................................................................................7
Task 2...............................................................................................................................................8
P3 Marketing Mix and pricing strategies of McDonald's. ( M3 and D2.)..................................8
Task 3.............................................................................................................................................12
P4 Marketing plan for McDonald's...........................................................................................12
M4.............................................................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

Illustration Index
Illustration 1: Seven Marketing Function........................................................................................2
Illustration 2: Functional areas in business......................................................................................6
Illustration 3: 7Ps of Marketing mix................................................................................................9

INTRODUCTION
Marketing essentials enables organisation to lead the business to achieve objective. It is
considered as an important element for advertising and promoting of service and products. For
this, various research and audits are conducted by company (Babin, and Zikmund, 2015). This
report is based on the marketing function and functional area of firm. McDonald's is one of the
largest food chain industry of UK. It was established in 1917 at UK, by Ray Kroc and his
brother. The first franchisee was established in 1954 and the 100th was in 1959 at Chicago. The
initial menu of restaurant was burger, fries and beverages. They were focused on the quality of
product, therefore, only limited items were provided initially. The organisation is having 375000
employees, working with McDonald's across the world (Berkowitz, 2016). .
Organisation is having franchisees in 120 countries and delivery services and 36,899
users . McDonald's is having 31230 franchisees across the world in 21559 places. Various
marketing strategies are followed by firm to attract more clients like traditional and advance
(Malhotra, Birks and Wills, 2013). Company follows hierarchy organisational structure, in order
to manage different layers. To identify each culture of firm Charles Handy method can be
considered:
Power: Centralised culture is adopted by McDonald's, to reserve all powers and rights of
company.
Task: Through this organisation divides employees into small groups to improve their efficiency.
Person: In this step firm tries to provide positive work culture in order to in crease efficiency of
staff.
Role: McDonald's involve it in order to make command and instructions clear among different
departments.
TASK 1
P1 Roles and responsibilities of marketing function.
Roles of marketing function is divided into seven segments that are following:
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(Source: Malhotra, Birks and Wills, 2013 )
Distribution: McDonald's is one of the largest chain of restaurants and food industries. They are
having more than 30,000 restaurants, at 121 locations all around the world. Aimed to become
one of the leading brand of their sector (Judge and Robbins, 2015). This is the first stage of
process, in which distribution channel is established in order to provide services to clients. In
2
Illustration 1: Seven Marketing Function

helps to determine the best way, by considering location, product and services in order to meet
customer's. This process involves innovative approach, as it directly creates impact on client.
Financing: The success of any product depends on proper flow of revenue into business
organisation. Long-term marketing planes depends on trust of organisation, to generate large
amount of revenue (Malhotra, 2014). It also plays an important role in order to provide different
alternative of making payment. Such as credit, debit, net banking. These all facilities help to
attract clients. Major revenue generation source of McDonald's is money paid by customers.
Market Research: In this step information are gathered by organisation, in order to understand
situation. In this process, various parameters are used to make complete analysis of condition. It
helps organisation to make changes or implement new strategies according to situation. This
process deals with data by generating, managing and implementing collected in order to obtain
effective decision and making activities (Lane, 2016). McDonald's consider two basic
management styles:
 Transaction Processing system: This process is used to answer daily questions, like
payment of employees and maintain records. McDonald's, uses this system in order to
maintain record of supplier, raw material, quality and purchase material. Management Information System: It is used to maintain record of essential details of
organisation. All the information related to technologies involved into process and
information of people (Clow and James, 2013). McDonald's implement it in order to store
detailed informations of employees, such as working hours and evaluation of
performance of organisation.
Pricing: In this step prices are finalised in order to provide service to client. It is one the
important process for success of any product, so that more number of users can buy them.
Correct selection of pricing can be a challenging task for the owners. It involves lots of analytical
and evaluation process. For this organisation should conduct effective market research. Along
with this, product should offer benefits to attract clients (Campbell and Martin, 2015).
McDonald's should implement pricing by considering complete evaluation of market in order to
set effective and affordable price.
Product and service management: This is an essential stage of all process. It consists of various
processing such as designing, developing, monitoring and controlling performance. In this
process, all requirements and needs should be considered, in order to meet their satisfaction
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(Desselle, Zgarrick and Alston, 2016). In order to provide effective service, they provide 24*7
open restaurant. They also have McCafe in order to maintain flow of cash.
Promotion: This is the most familiar term for any business owner. It is considered in order to
advertise and promote service. This process can be effectively done by communicating with
clients. In this stage, all features and specifications of services are presented publicly. In order to
convene people that it will meet your demands. In this different media are involves such as print,
digital and social (Babin and Zikmund, 2015). McDonald's uses various promotional strategies
such are introduced such as coupons and various discounts offers to attract clients. Through this
organisation is able to improve revenue.
Selling: Selling is considered as final stage of seven functions. Through this step, business owner
presents services towards clients. The target can be achieved, if users are satisfied with products.
In order to identify the performance of service, response of customers is enough. To attract
clients, all needs and demands should be implemented carefully. 80% shares of McDonald's are
sells in China, as people of that countries are not influenced by their services (Ormrod, 2014).
Due to which growth of company get effected, due to increasing competition.
M1
Marketing functions are used by McDonald's, in order to manage different process for
promotion of services. It consists of 7 stages such as distribution, pricing, promotion, financing,
selling, marketing information management and product management. By implementing these
stages organisation is able to manage marketing process effectively. In this process, various
distribution channels are considered to provide services on time. Financing is involved to
monitor the inflow and outflow of capital in company. Pricing is used to maintain value of
services so that clients can easily afford services (Boschetti and Massaron, 2016). Promotional
strategies are also included to manage advertisement process, so that services can be presented in
effective manner. Marketing information is also gathered, so that organisation can make
necessary change according to conditions. In order to manage quality and performance of
services product management stage is implemented. Selling is considered as last stage of this
function, it is used to evaluate the sales of service at specific location. On the basis of above
stage changes are implemented. Each stage is interrelated, any follows chronological order.
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P2 Functional areas in organisation and relation to marketing functions.
Various organisations prefer different organisational structure. It depends on departments
of company, their roles and responsibilities. It also varies from one group to another, on the basis
of their skills and capabilities. It helps the firm to improvise performance and maintain it.
Functional area considered by McDonald's:
Human resource:Human resource is required to hire qualified and capable employees. It also
helps organisation in order to achieve objective. Determination of workers salary and packages is
responsibilities of HM department. McDonald's HR department also provides efficient
employees to organisation (Wilson, 2014). Selection of candidates depends on communication
skill of employees. Through this way company is able to attracting clientsTo maintain efficiency
of employees various training and learning programs are organised.
Research and development: In order to make any business organisation successful, creativity
and innovation is important element. Innovative approaches provide lots of opportunities, helps
to make competitive benefit (Wu, Kirkole and Huang, 2016). Research and development
department of McDonald's is accountable for checking and maintaining quality of food services.
Along with these innovative approaches are also implemented in order to develop new products.
5

(Source: Wu and Huang, 2016)
Administration: Administrative body is the fundamental component of any firm. The main
objective is to manage planning and designing for organisation. Administrative block of
McDonald's connects different departments of firm in order to maintain communication.
IT support: McDonald's IT system is able to manage processing of hardware and software in
order to store, maintain and manipulate information (Cavusgil and et. al., 2014). Through this
processing of data become faster, along with this other department are able to access information
easily.
Financing and Accounting: Financing and accounting department of McDonald's monitors the
inflow and outflow of cash into organisation. This process depends on various audits and
researches of company. On the basis of that annual financial statements are prepared by firm.
Customer service: Through client’s queries are answered by representative of company. Clients
who wants to know additional information related to quality and prices of products, can contact
6
Illustration 2: Functional areas in business

with the customer service department of organisation (Siahpush and et. al., 2016). Customer
service of McDonald's are providing 24*7 facilities to their users, in order to solve problems. For
this various platform is provided such as online, telephonic and face to face communication.
Marketing: It is considered as promotional activity of organisation in order to advertise services
and products of organisations. McDonald's involves various promotional strategies, in order to
increase profitability of company (Jacobs, MacRae and Sladyk, eds., 2014). It also helps firm to
increase revenue and growth.
Sales: Success of any organisation depends on sales. McDonald's has various sales teams in
order to maintain sales of organisation.
Business development: This is essentials step in order to extend business in different countries.
For this various researches and audits are conducted, in order to analyse different factors and
situation. Business development is important part of McDonald's, as they are having more than
100 restaurants across globs (Pappas, 2017). In order to effectively implement this in to
organisation, planning and decision-making is important. Along with this it also helps company
to achieve financial stability. It also reflects management of organisation.
M2
Every functional area is provided with different roles and responsibilities. Each of them
are equally important for the marketing of products of company. McDonald's implements the
same in order to achieve marketing objectives of company. They all are involve into
organisation, in order to achieve objective. This process varies from one organisation to another
because conditions also changes (Mittal, 2014). Human resources are the first step of this
functional area, where efficient and capable employees are hired for organisation. The next step
of this process is research and development, in this step various audits are organised in order to
maintain performance accountability of company. Administrative block is also implemented into
organisation, in order to manage effective communication into organisation. IT support is used to
manage different information of staff. Financing and accounting is used to manage flow if capital
into organisation, along with this various new strategy is also implemented in order to increase it.
Customer services are organised to solve queries of clients, about quality and prices.
D1
To critically analyse marketing functioning and functional area related to environment of
McDonald's and maintain the marketing environment of organisation, 7 marketing functional are
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essential. It helps company to make complete analysis of market strategies that are required for
firm. Through distribution factor, firm is able to make changes into policies, to strengthen shares
of organisation. Financing is also helps the firm to maintain record of accounting, due to this
sales report can be developed in order to identify profitability. Pricing and promotion are very
essential, to present service publicly. It helps firm in order to connects with clients. Products
service management helps in order to analyse performance of services. So that efficiency of
product can be analysed. Selling is the last part of this process, in which growth of company can
be analysed.
In organisational functional, human resource helps by providing effective and capable
employees. It helps to achieve objective (Swenson, Rhoads and Whitlark, 2014). Researches and
development is also helps to analyse competitive advantage of firm. Administration is used to
maintain communication between of various department. IT provides supports by handling and
managing all information effectively. Customer services are used to resolve queries of clients.
Business development helps by planning and designing various stages to expand business.
Task 2
P3 Marketing Mix and pricing strategies of McDonald's. (M3 and D2.)
Marketing mix represents the actions and processes that are required by an organisation,
to promote services and products. Market mix is four levels of decision making process such as
place, product, price and promotion (Types of business organisational structures, 2017). In order
to make deep analysis of product, extended version is also available known as 7Ps marketing
mix. In the extended version physical environment, product and process are present (Babin and
Zikmund, 2015). It helps firm to select correct place for distribution, at affordable prices before
deadline. The comparison of McDonald and KFC's marketing mixs are as follows-
8

(Source: Babin and Zikmund, 2015)
Place: It is one of the important factor for this marketing mix principle. It enables an
organisation, to decide the distribution channel (Functional area of a business, 2017).
McDonald's give emphasis on selecting places. As restaurants are established at reachable places,
so that customer's do not feel any inconvenience to reach (Berkowitz, 2016). It directly impacts
on sales of company. For this, various forms are considered such as:
 Restaurant
 Mobile applications
 websites
 Kiosks
Revenue generation of McDonald's depends on clients only. In order to increase revenue ,
firm is introducing various forms by considering convenient and flexibility of clients.
(Functional area of a business, 2017) McDonald's are operating their order booking process
through websites, apps and telephones. Through this more numbers of clients are placing their
order, who are not able to reach restaurants. This helps organisation to increase sales and
9
Illustration 3: 7Ps of Marketing mix

connects more number of clients (Types of business organisational structures). On the other
hand KFC have also online channels of distribution in the various countries. It has effective
presence on the social media through which it can take the order of product and services. It has
its own website on the internet by which it can advertise its product and services. However, it
has its physical stores in the commercial area in the various country through which customer can
directly purchase the product and services.
Product: In order to attract clients, McDonald's give importance to menu and quality of products.
Requirements of users are keep changing. So, company implements necessary changes, to meet
their demands (Lilly, 2014). For this, new products are introduced into menu, along with this
creativity is also involved such as use of chicken and fish. Previously, they were providing
hamburgers and sandwiches only. Now they are offering different kinds of snacks such as Big
Mac, Quarter Pounder, Big N' testy (Types of business organisational structures, 2017). So, on
according to taste of customers. Through this diversified ranges of services company are able to
attract clients and increasing profitability. On the other hand KFC also delivers various food
products such as fish, hamburgers, sandwiches, chicken, fish, salad, snakes, beverage, desserts,
shakes, fried chicken, chicken burger, Wraps, popcorn chicken, flaming crunch chicken, Krusher
frozen beverage, snack Box, Rizo Rice, Tower Zinger, Bucket chicken, dessert, Choamor,
Brownie Sundae. KFC generally focused on the quality and taste of the food product that is why
it is famous for the Chicken.
Price: Pricing of products involves various factors, such as price building and psychological
pricing. In order to attract lots of customers towards company through huge discounts are known
as price building process (Malhotra, Birks and Wills, 2013). This approach is used when clients
are not purchasing products, due to high pricing. In that case prices are reduces. In psychological
pricing, products are offered at minimum price, so that user can easily afford that. Sometimes it
affects sales of company, as clients can feels compromised about quality of products. So, firm
should decide price of products by considering brand value of organisation (Functional area of a
business, 2017). Such as McDonald's provides their services into two categories Branded
Affordable (BA) and Branded Core Value (BCV). BCV products is providing McVeggie and
McChicken burger to clients where BA is providing MaAloo tikki and Chicken McGrill burger
to clients (Types of business organisational structures, 2017). On the other hand KFC follows
the optional pricing and mixed bundling pricing for its customers. In the bundling pricing, it
10

offers food product and service in the attractive discount. In addition to this, cited venture
provides the additional discount and sales on the food products on the occasions and festivals
season.
Promotion: It is a type of market communication to promote products and services provided by
company (Jacobs, MacRae and Sladyk, eds., 2014). Advertising is the part of this process, in
which various elements are involved such as TV, radio, online, and sites. Several other
promotional methods are also concerned by McDonald's such as mailing, messaging and door
drop (Baines, Fill and Page, 2013). It also helps to attract more number of clients through
featuring products. On the other hand KFC used both online and offline promotions and
advertisement. In the context of online promotion, company sued social media and its various
channels. On the other hand in the offline promotion, corporation used television, magazines,
newspapers. Promotional strategies of McDonald are following:
 Advertisements
 Sports sponsorship
 Public relationship
 Public communities
Promotional strategies are mainly based on traditional and advance media systems. Such
as print, digital and social media (Functional area of a business, 2017). Along with this, various
approaches are considered. Advertisements through television to support sales, by achieving
specific point of sale of company (Judge and Robbins, 2015). The process depends on processing
speed, taste and quality of services. Sports sponsorship concept is also implemented by company
in promotional process. For this organisation focused on two sports events such as Olympic and
world cup games (Functional area of a business, 2017).
People: This is also part of extended marketing mix. In these people are considered as services.
Such as McDonald's are having restaurants across the world. They are having various level of
staffs working in the company such as chef, service staff and manager. All are focused in order
to provide services to clients, to achieve satisfaction of users (Malhotra, 2014). Some firms
provide certificates to prove quality of workers comparing others. KFC used the electronical
customer relationship management system for satisfy the needs and wants of the customers. It
effectively satisfy its employees as it provides attractive wages, salary and benefits to them.
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Process: It is the way through which services are provided to clients. For this various discussion
and planning takes place into McDonald's, to maintain quality of service at low price (Brady,
2014). In order to achieve it firms strictly follows the blueprint.
Physical evidences: It is the last P of marketing mix, involved to provide better user experience.
McDonald are providing physical evidence-based such as nice ambiance with peaceful
environment to their clients. Along with this invoice is also provided to clients that reflects
service of company (Lane, 2016). This helps the customer's while taking legal action against
company. It can be presented as proof by client. On the other hand KFC uses easier and
convenient procedure for its customers so as they can keep satisfy. It uses the electronic
customer relationship management system for identify the actual needs of customer and deliver
services accordingly.
Marketing mix can be implemented for both products and services. McDonald's are
providing their services through this. Such as parcelling and home delivery. They are involving
marketing mix into marketing plan (Types of business organisational structures, 2017). Home
delivery service, in this user is able to place order using websites or mobile apps. Firm is
providing services to the doorstep. In this process place, promotion, price and products and
important role (Functional area of a business, 2017). Such as restaurant should be placed at
location, from where they can reach any location at minimum time. Pricing should be affordable,
proper promotional strategies should be implemented. Quality of products should be maintained
(Swenson, Rhoads and Whitlark, 2014). This will provide competitive advantage to compeny
and helps to improve brand value.
Task 3
P4 Marketing plan for McDonald's.
Marketing plans are considered as documentation and specification of company’s
promotional activities. Through this organisation is able to identify weak points, also enables to
achieve objective. McDonald's also implement marketing plan into their company (Clow and
James, 2013). In this all market trends should be marketed clearly and markets values of
company should be identified. Current plan of McDonald's is resonated plan of 3 years, which is
divided into 3 levels:
 Action plan of three years.
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 Annual operational plan
 Yearly workers action plan
Action plan are used to provide information about investors and services provided by
company. It is published on the websites of organisation. It is considered as documentation,
which contain information about vision of firm, helps to create objectives and develops various
scheme to achieve it (Campbell and Martin, 2015). It also helps to estimate the cost of
processing.
Brief introduction of Company
McDonald's is one of the largest food chain industry of UK. It was established in 1917 at UK, by
Ray Kroc and his brother. The first franchisee was established in 1954 and the 100th was in 1959
at Chicago. Organisation is having franchisees in 120 countries and delivery services and 36,899
users . McDonald's is having 31230 franchisees across the world in 21559 places. Various
marketing strategies are followed by firm to attract more clients like traditional and advance.
SWOT analysis of the McDonald
 Strength- The major strength of McDonald is that it delivers high quality of product and
services to its customers in the market. Organisation is having franchisees in 120
countries and delivery services and 36,899 users
 Weakness- It has poor advertisement and promotional activities. In addition to this, it do
not provide training and development to its employees.
 Opportunities- It desires to become number one food organisation in all over the world.
In addition to this, to develop healthy food product is major opportunity for it. Threats- High level of competition if major threat for company. Regular changing taste
and preferences is another major threat for McDonald.
Marketing Objectives
It is considered as set of objectives of business groups during promotion of products to
meet client expectation. The present emphasis of company is to provide services to clients with
the limit. As people are not having lots of time to waste in waiting (Desselle, Zgarrick and
Alston, 2016). Therefore, the major objectives of organisation are following:
 Increment in sales rate up to 40%.
 Establishing 20 more franchises at new places.
 Increase brand value and maintain image
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 Primary services provided easily.
Company is concern in order to providing high quality services at low price to achieve
client satisfaction (Judge and Robbins, 2015).
Marketing Segments
Segmentation strategies are used to divide market on the basis of some parameters.
McDonald's uses demographic segmentation strategy. In this age is factor for segmenting clients.
As McDonald's is a fast food restaurant, which is generally prefers by children and young people
(Babin and Zikmund, 2015). Therefore, company offers various services and schemes to attract
target customers. They also try to maintain environment of restaurant accordingly, so that more
numbers of college and school students can come to hangout (Types of business organisational
structures, 2017).
Marketing Mix strategies:
Marketing strategies are combined as a set of goals. A good marketing strategies can
result in maximise profitability of company. Strategies of McDonald's for marketing are
following: Market Penetration: Introduction of various promotional and advertisement strategies of
new products boosted sales of services in organisation (Ormrod, 2014). Campaigns helps
the company to attract more number of local people. Market Development: McDonald is one of the best example of expansion of market. They
have introduced various new food items and also started new outlets, due to which more
clients are attracted towards their services (Functional area of a business, 2017). Program or Service Development: It is considered as essential requirement of any
company. They motive is to provide quality services every time, which helps an
organisation to maintain brand value (Malhotra, Birks and Wills, 2013).
Positioning
This technique is used by organisation to improve image and deputation of company in
market. If we compare services of McDonald's with their competitors, various unique techniques
will be identified. Such as they have designed they restaurant as a hangout place (Boschetti and
Massaron, 2016). Through this technique, they are able to attract children and students towards
their outlets. Happy meals of McDonald's are providing various toys for children. From various
other services, they are equally attracting youngsters. Now they are targeting the adult, in order
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to increase profitability of company. As their revenue is directly dependent on clients
(Berkowitz, 2016).
Control and Evaluation:
Proper planning helps an organisation, in order to maintain performance. For this all the
systems should process accurately. It also helps to monitor the performance of system, in order
to achieve effective results process should run according to schedule (Jacobs, MacRae and
Sladyk, eds., 2014). It can be implemented either manually or by system (Wilson, 2014). Every
procedure is supervised carefully in order to produce effective results. If any fault is identified
into the marketing plan, necessary steps are considered in order to resolve them. McDonald's also
implement various strategies in order to maintain quality and produce profitability for company.
M4
According to the market plan of McDonald's, various strategies are involved to manage
operation, staffs and stakeholders. They publish it on websites, so that clients and investors can
easily access it. Different marketing objectives are developed, such as implementing easy
complain handling system, making primary services easily accessible, opening 20 new outlets,
and increasing sales rate up to 40% (Lilly, 2014). through this way company is able to maintain
quality. Organisation uses demographic market segmentation, where college and school students
are target customers. For this, various innovative approaches are used to create nice and peaceful
ambiance. Various market strategies are also involved, which helps to penetrate, market and
program development (Babin and Zikmund, 2015). Along with this company tries to maintain
positioning, for this, various offers are also provided by them. Control and evaluation measures
are implemented at the end. Through which company is able to plan and reschedule it.
CONCLUSION
On the basis of above report, market essentials are important factor for the growth of
company. McDonald's has implemented marketing functional and functional area into
organisation, to improve performance. For this, various factors are considered, that helps firms to
implement effective strategies. Through this company is able to maximise the profitability and
brand value. Marketing mix and market action plan is also included, that enables an organisation
to develop effective marketing strategies. It also helps McDonald's to attract more customer's
such as school and college students.
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