Marketing Essentials: McDonald's Report - Marketing Strategies

This report provides a comprehensive analysis of McDonald's marketing strategies, encompassing its functions, marketing mix, and overall marketing plan. The introduction highlights the importance of marketing for business growth and success, particularly within the fast-food industry. Task 1 delves into the roles and responsibilities of marketing functions, such as pricing, product management, distribution, and promotion, specifically in the context of McDonald's. Task 2 compares marketing mixes of different companies, evaluating McDonald's tactics to achieve its business objectives. Task 3 focuses on developing a detailed marketing plan for McDonald's, including the application of the 7Ps marketing mix. The report emphasizes the interrelationship between marketing and other organizational functions, such as finance, sales, human resources, and research and development. The analysis aims to provide insights into how McDonald's leverages marketing to enhance its brand equity, understand market segmentation, and monitor the marketing environment for innovation and customer engagement. The conclusion summarizes the key findings, underscoring the critical role of marketing in McDonald's success. The report uses various academic resources to support the analysis.

Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function..................................................................1
M1. Duties of marketing with respect to marketing environment..............................................3
P2 Relation of roles and responsibilities with wider context of organisation.............................3
M2 Significance of inter-relationship between marketing and other functional unit.................5
D1 Critically evaluate the key element of marketing function...................................................5
TASK 2............................................................................................................................................6
P3 Comparison of marketing mix applied by different companies.............................................6
M3 Evaluate different tactics chosen by McDonald's to achieve business objective...............10
TASK 3..........................................................................................................................................10
P4 Marketing plan for McDonald's...........................................................................................10
M4 Produce detailed marketing plan for McDonald's..............................................................13
D2 Design marketing plan with the use of 7Ps.........................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Marketing is the tools or essential way through which Small and Big organisation can
earn growth and success. It help the business to work with each other towards maximisation of
its sales and profits. Marketing as the art and science of exploring, delivering and developing
value to satisfy basic needs and wants of target audience. It is an effective process in which
different activities are included such as targeting, research, communication, public relation and
many other direct mail (Askeland and Wright, 2013.). Marketing is more essential and vital
element for the company to improve their reputation and goodwill at marketplace. Further, it is
useful for the organisation to attract maximum number of customers towards business services
and products. In the present assignment, given company is McDonald's, it is limited services and
fast food business more than 35,000 restaurant in across 100 countries. They deals in different
variety of products such as salads, chicken sandwiches, desserts, etc. This report divided into
various parts which include role of marketing functions and its interconnection with
organisational functional unit. Marketing mix of two organisation and marketing plan of
McDonald's are shown in this project. Main aim of this report is to analysis importance of
marketing for the company.
TASK 1
P1. Roles and responsibilities of marketing function
Marketing is an essential techniques in the modern business enterprise, it covers knowing
of consumers demands, marketplace, making profitable relations, market strategy and render
quality among large number of audience. Marketing functions can be explained as the duty of the
company which assist it to recognise and source possibly successful goods for marketplace and
then supports in its promotion. There are different number of marketing functions which are
applied by the McDonald's essentially. These are shown as below:
Pricing: It is identify as essential function for the business success and development. In
this functions McDonald's set appropriate and low price for their products which support them to
attract large number of customers easily (Burke and Friedman, 2011). It also assist them in order
to maximise their sales and revenues in allotted time duration.
Product or service management: This is also known as an important and foremost
functions which benefited McDonald's in order to develop innovative food products for their
target and potentials clients like their chicken McGriddle and Breakfast Bowl.
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Distributions: This is identify as an important function for the organisation in order to
accomplish their long term objectives and targets. It is an effective through in which McDonald's
distributes their products by their own stores and across the world. Thus it is shown McDonald's
is a well established and famous restaurant in all over the globe.
Financing: Sufficient capital is necessary for the each and every enterprise to do their
business operations in successful manner. McDonald's analysis different accurate source where
they collect proper amount of money for their daily basis activities, products, services and many
other (Campbell and Martin, 2015). Accurate amount of capital benefited for the business to
maintain strong relation with customers or employees and improve profitability also.
Marketing-Information Management: It is a role of McDonald's Manager to measured
what products are well acceptable and which ones do not changes as well as sell the menu based
on that data or information.
Selling: It is a main and valuable function of marketing which is beneficial for the
McDonald's to sell their products and services across the world (Marketing Functions, 2017). It
help business entity to maximise their sales and profit in limited time period.
Promotion: In order to promote their new products and services at large scale
McDonald's apply commercials on Television and posters like on the NFL and the Olympics.
Thus, it is essential and essential element for the all organisation to introduced their new services
or products at marketplace and to the customers in easy manner (Cavusgil and et. al., 2014). This
function help business to save their time and cost as well as maintain long lasting relation with
customers.
Roles of marketing functions: Above all these roles are important and essential for the
McDonald's in different ways which are determined as below:
 Main role of the marketing function is to promote growth and success of business at
large.
 Key responsibility and duty of marketing functions are includes product development,
market research, communication, finance, planning, selling, promotion, distributions and
many other.
 Major role is to develop long-lasting and strong relation with customers.
 As a role of researcher to conduct research program which help them to analysis basic
wants and needs of customers.
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 Role of marketing manager to use different tools and techniques with purpose to promote
their innovative services and products at marketplace.
 As a finance manager to arrange sufficient amount of money for business activities and
functions.
M1. Duties of marketing with respect to marketing environment
Main duty and role of the marketing is to introduce new services and products at
marketplace. There are some role and responsibility of marketing in the context of marketing
environment which are explained as below:
Brand Equity: It is main role of marketing manager is to provide quality products and
services to the customers at reasonable price (Cooper, 2013). Thus, it benefited for the
McDonald's to improve their brand equity and goodwill in marketplace.
Market segmentation: In today's environment, market is volatile and dynamic, the
company needs proper segmentation which are give by the marketing manager. In this marketing
manager play vital role in the determination of clients in the large areas and advertise the
McDonald's products among them.
Monitoring of marketing environment: It is another important function of marketing
which have vital responsibility in the recognisation of innovative creations in the marketing
environment or atmospheres, this changes render constrictive outcome for the development of
new products. It involves socio-economic forces, changing market traits, legal and political
variation etc.
P2 Relation of roles and responsibilities with wider context of organisation
McDonald's is an American and fast food restaurant across the world. It was founded by
Richard and Maurice in 1940. They provide different services and products to the customers
such as Big Mac, sandwiches, Hamburgers, cheese, wraps, desserts, soft drinks, salads ad many
other beverages. All these are available in their shops which is beneficial for them to maximise
their reputation at marketplace (Desai, 2013). In the organisation different departs are work
together and have same motive to increase sales and revenues of McDonald's easily. For
achievement of long term goals and objectives, marketing play critical role in the form of
identifying basic needs and wants of customers, market trends, changes in technology and many
other. Thus, marketing is one of the main part for the development and growth of company.
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Different department of the McDonald's that are work with the help of marketing are determined
as below:
Finance Department: Main role of this department is to manage the finance, money and
accounting matters of the company. It is responsible and liable for ensuring accurate flow of
fund, right investment and accurate managing of the capitals. In order to arrange sufficient
amount of capital McDonald's use different kind of sources such as Debt factoring, mortgage,
additional capital, trade credit long and short term bank lone and so on. All these are beneficial
for the company to arrange funds for their daily basis activities (Dibb and Simkin, 2013). It is not
possible without marketing because with the help of such tool McDonald's easily understand
about what type of resource is beneficial for them as well as not.
Sales Department: Main role and responsibility of this department is set to see that entire
sales related tasks and duties are accurately managed and run in an effective manner. In this
business organisation use different sales techniques which help them to innovate their services
and products at marketplace. Beside this, marketing play critical role in providing different
aspects like banner, posters, TV and many other. Thus, marketing and sales department of the
company are interrelated with each other and have same purpose to maximise profitability of the
McDonald's in given time period.
Human resource department: It is another department which are working in the
McDonald's and have purpose to hire best candidates for the vacant position. In this manager of
the company use marketing tool because without this techniques they can not provide
information about vacant position in the company to the people (Forshier, 2012). Therefore,
marketing manager use two types of sources such as internal and external which is benefited for
the enterprise to systematically and accurately recruit best one from the large number of pool.
Thus, it shown both marketing and human resources department of the McDonald's are
interrelated.
Research and development department: This is another department which are
functioning in the McDonald's. Main role of this department is to organise proper investigation
in which they ask different questions to the large population. These questions mainly related with
the customers taste and preferences regarding McDonald's products, services, environment,
structure, culture and many other. This research is possible with the help of marketing tools such
as questioning, survey, sample size and many other. Thus , it define that marketing is important
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part for the research and development department to increase customer base in the organisation
by providing accurate information to them.
Operational department: Role of this department is divided into different parts such as;
Design of Goods and Services, Quality Management, Process and Capacity Design, Location
Strategy, Layout Design and Strategy, Job Design and Human Resources, Supply Chain
Management, Inventory Management, Maintenance and Scheduling. All these are important and
foremost role of operational manager which is achievable with the help of marketing tools and
techniques (Hauer, 2011). Further, role of marketing manager is to establish effective strategies
and policies which help them to reduce employees turnover and attract large number of
customers towards business products. Thus, without marketing Operational department do not
work effectively.
M2 Significance of inter-relationship between marketing and other functional unit
In the McDonald's different departments are work together and have common motive to
increase sales and revenues of the company. Above discussed different departments have critical
role to accomplish long term goals and objectives of organisation, recruit knowledgable people,
select effective strategy and policy, maintain long-lasting and strong relation with customers as
well as employees also. All these are achievable with the help of marketing tools and techniques
because without this company can not do their all activities and functions in proper manner.
Thus, it proof marketing and different department of the organisation are interconnected which is
good for the business success and development at marketplace. It is also essential for them to
keep their image and reputation for long time at marketplace.
D1 Critically evaluate the key element of marketing function
According to the Hughes, (2011) point of view marketing functions is more essential and
important part for the all enterprise because without this they can not introduce their new
products and services in marketplace and cannot accomplish their predetermined objectives.
There are some key element or component of marketing functions which are explained as below:
Research: It is first and foremost element of marketing function which help researcher to
conduct investigation about McDonald's products and services. Thus, it is important for the
business to improve their growth and success at marketplace.
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Strategy: An accurate and effective strategy is more important and essential functions of
marketing which is use by McDonald's with motive to maximise their sales and profit. It also
help them to enhance their reputation and goodwill at marketplace.
Planing: Planning is more essential part for the development and growth of the
organisation. In this McDonald's plan an effective policy that support enterprise to attain long
term goals and objectives.
Tactics: It is another important part of the marketing functions which play vital role in
the success and growth of company. In this role of manager is to set appropriate tactics which
help McDonald's to increase their profit and sales (Hugos, 2011 ).
TASK 2
P3 Comparison of marketing mix applied by different companies
Marketing mix is depict as the important and basic element of marketing plan (Marketing
Mix 4Ps and 7Ps, 2011). It is more essential and useful part for the each and every enterprise
because with the use of this component they easily innovate their products and services in new
market and to the customers. Further, it also business to introduced their products and services
components which cover process, place, promotions, people, product, physical evidence and
price. All these are valuable element for the development and success of company in limited time
period.
McDonald's and Pizza Hut both business are applied 7P's of marketing which is
important for them to achieve long term aims and objectives within an organisation (Lipsman
and et. al., 2012). Both companies are belongs in same study and provides beverages and many
other food products to the customers at reasonable price. These business are apply 7P's of
marketing which are determined as below:
Marketing Mix McDonald's Pizza Hut
Product Product is main element for
the success and growth of
company. McDonald's is a
well-established and famous
organisation across the world.
Company offer different
Company follow multiple
strategy of product as Pizza
Hut not only produce Pizzas,
but also sell in different variety
of other goods. They deals in
beverages, pasta, appetizers,
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products to the customers such
as vegetarian, Non-Vegetarian,
Frozen Deserts and Beverages.
In this business entity has
separate cooking equipments
and areas.
desserts etc. Size of the Pizza
is based on 3 types such as
regular, large and small. These
are based on Pan Pizzas,
stuffed crust pizzas, sausage
crust pizzas, Thin crust Pizzas
and Twisted Pizza.
Price Price of the product is mainly
based on its quality as well as
quantity also (Malhotra, Birks
and Wills, 2013). McDonald's
use different types of pricing
strategy like cost leadership,
psychological connotations,
many combos, low cost food
Franchise and many other. All
these are essential and
valuable for the company to
attract large number of
customers towards
McDonald's products and
services.
Company successfully applied
the low and high pricing
strategy which is mainly based
on product quality and
quantity. They use price
skimming strategy which is
good for them to achieve
competitive edge in limited
time period. Accurate price of
the product play vital role in
the success and development
of organisation at large scale in
an effective and efficient
manner.
Place Place is another important part
of the Marketing mix which
show growth and success of
company at marketplace.
Prime location of the company
is Malls. Shoping Complex's.
McDonald's products are
available across the world.
There are mainly three
approaches of places which is
used by the Pizza Hut to the
market in direct way
(Marshall, and Johnston,
2011). These are include
customer to dine-in, delivery
and online ordering. All these
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are important for the business
to attain maximum amount of
capital.
Promotion In order to promote and
advertise their new products
and services at marketplace,
McDonald's use different kind
of advertising via Cinema,
T.V, online, Radio, Press and
Postersites like magazines and
news papers (Mihart, 2012).
Further, they also apply
promotional methods like
merchandising, Point of sales
display, direct mail, door
drops, loyalty schemes etc. In
order to attract large number of
customers company offer
Scratch Cards service, Lucky
draws and so on.
In order to advertise their
Pizza and many other products
to the audience company use
television as a part of media.
Recently, company use print
media and exist with
innovative promotional offers
such as fresh pizza, it is
request to large number of
people in the nations. There
are different promotional tools
are used by the Pizza Hut such
as advertising, public relations,
sales promotions, coupons,
discounts, events and
experience.
People McDonald's has standard and
quality uniform for employs
for better service treatments. In
the company, different number
of staff are work in which they
need accurate services and
motivation. In this McDonald's
proper training to the workers
so that they are easily solve all
difficult issue in an accurate
Company have trained and
knowledgable workforce with
them. Entire employees who
are working in the Pizza Hut
are highly skilled. Main role of
the business entity is to
maintain the relationship with
their employees and customers
in better way (Nguyen and
Simkin, 2012). Thus, these are
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manner. important for the restaurant to
maximise customer and
employee base in the
organisation.
Process One of the main process in the
organisation is food producing
transparent to customers.
Innovative approach of
distribution and packaging.
Invented most effective
cooking equipments. Clients
are invited in order to check
the elements used in food.
Thus, it is important for the
company to accomplish their
long term aims and motive in
limited time period
(Papasolomou and Melanthiou,
2012).
There are different process
which are used by the Pizza
Hut such as manufacturing
process which is completely
transparent. In this large
number of clients are invited to
examine the ingredient. One of
the main process in Pizza Hut
is to deliver products on time
to time and free next time.
Therefore, it is beneficial and
important for the organisation
to keep strong relationship
with customers.
Physical Evidence In the McDonald's Physical
evidence is based on
Cleanness, quality,
transparency and speed. It is
more important for the
company to maintain strong
relation with customers as well
as employees also.
Pizza Hut are air conditioned
and well-designed restaurant
across the world. They have
nice interior decoration and
pleasing environment which
shows rich. Company mainly
emphasis on clean and neat
atmospheres. Workforce of the
business mainly believes that
they are rendering the top
quality products and services
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