Analysis of Marketing Roles and Responsibilities at McDonald's Report

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This report provides an in-depth analysis of the marketing functions and responsibilities within McDonald's. It begins by defining marketing and its core objectives, emphasizing the importance of understanding consumer needs. The report then details the various roles and responsibilities of the marketing function, including Marketing Information Systems (MIS), marketing planning, financing, promotion, pricing, selling, and distribution, illustrating how these elements contribute to McDonald's success. Furthermore, the report explores the interconnections between marketing and other organizational departments, such as Information Technology, Human Resources, Research & Development, Customer Service, Finance, and Sales, highlighting how integrated marketing strategies drive overall business performance. The analysis uses McDonald's as a case study, providing practical examples of how these marketing principles are applied in a real-world context to achieve both short-term and long-term objectives.
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MARKETING
ESSENTIAL
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Table of Contents
INTRODUCTION.......................................................................................................................1
P1 Describe the different roles and responsibilities of marketing function................................1
P2 Explain various marketing responsibilities and roles in organizational context....................4
TASK 2 ...........................................................................................................................................1
P3 Application of marketing mix of different organisations to marketing planning process.....1
TASK 3 .........................................................................................................................................4
P4 Basic marketing plan of Mc Donald's...................................................................................4
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10
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INTRODUCTION
In simple terms, Marketing means meeting the requirement of both consumer and
marketers profitably. Thus, it is a social process that helps the organisation to exchange & create
value with their potential buyer. Firms uses different marketing activities which include
advertisement, promotion, public relation in order to satisfy the dynamic needs of customer. It
refers to a continuous exchange of communication through which business enterprise informs,
educates and develop long-lasting relationship with potential client over a period of time. The
main objective of marketing is to interpret target consumer so well that the product or services
which respective company is offering to people fits within their requirement and sells itself.
Marketing delights the customer by fulfilling their desired choices and wants effectively (Baack,
Harris and Baack, 2013). McDonald is considered as the world largest restaurant chain that
provides fast food to millions of consumer. This report covers the various roles of marketing
function that McDonald has opted in order to accomplish their long term objective and gain
higher competitive advantage all over the world.
P1 Describe the different roles and responsibilities of marketing function
Marketing can be defined as a set of activities which compromises of promotion, public
relation, sales and advertisement used by business entities in order to meet the requirement of
potential consumer. In modern scenario, where needs of customer is changing frequently it
becomes important for a firm to analyse such wants and make product accordingly. Marketing
gives shape to such changing references of people (Babin and Zikmund, 2015). It excite the
interest of potential client and enables them to purchase the goods which fulfils their desired
demand. Organisation reach to its end consumer by using three aspect of marketing process
which includes designing, implementation and evaluation. Firm make product in order to earn
income on that and for this they are require to sell their goods to those people who actually wants
it. Different roles and responsibilities are related with marketing function which help
McDonald's to accomplish both short and long term objective in an effective way are described
below:
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(Source: 7 Functions of Marketing)
Marketing Information System (MIS): The primary responsibility of every company is
to make themselves aware about the likes and dislikes of their potential buyer. Firms
generate revenue from their target customer by offering them such product or services
that fully satisfies them. MIS can be defined as a system that gathers and distribute
information to manager about dynamic choices of consumer which will help the business
enterprise to make better decision concerned with production of various product or
services (Bastable, 2016). Timely and continuous marketing information helps the
organisation to take effective decision regarding product improvement or development,
distribution, media, promotion. According to Harper, If an entity wants to oversee their
future in a systematized way, they are require to manage the information related buyers
and market effectively. For instance, McDonald uses MIS tool in order to capture all
relevant information related to its target buyers so that they can modify their product
according to that.
Marketing Planning: McDonald's are require to develop effective marketing plan that
helps in attaining their both short and long term objective in a structured manner . For
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Illustration 1: Marketing Function
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instance, Initially when the referred firm launched their Early Breakfast Meal, they were
unable to hold large market share particularly in this category. But with the passage of
time, they have analysed that people less preferred to eat oily breakfast in the morning so
they came up with healthy food which as result increase their sales by 15% and market
share by 10% respectively (Brassington and Pettitt, 2013).
Financing: As Business owner, the most important function for marketing their product
is finding different source of funding which will help the company to effectively
advertise their product or services in the market place. In order to handle firm's working
capital and day to day operations, they can arrange their funds through different sources
such as angle investors, banks, shareholders, debt etc. McDonald's is mostly managing
their financing through Franchising (Burke and Friedman, 2011). More than 45% of their
revenue is generated through Franchising which is spread all over the world.
Promotion: This tool is used by the company in order to advertise their product or
services in the market place on vast level. Various promotional channel can be used by
firm where they can introduce their goods among potential buyer such as digital media,
social networking sites, print media, television etc. It generate awareness among potential
buyers which end up with stimulating the person to buy such product. It referred as the
voice of entity which enables the company to send their brand message to multiple
audience in a clear way. McDonald's is using various promotional techniques such as
digital media; they have their own Facebook and Instagram page where they keeps on
updating about new product or services, television advertisement; print media etc.
Pricing: Setting the correct price may sometimes comes out as a challenge for business
enterprise. IF they charge high price from the consumer, there might be chances that they
loose them. Thus companies are required to choose such pricing strategies which creates
value for their product or services that they are going to offer their target people (Clow
and James, 2013). McDonald's has use the strategy of Price Bundling in which they
combine several product together into an all-inclusive single comprehensive package
with reduced price. This help the company to offer more than one product at a same point
of time but with a package. For instance, McDonald is serving Happy Meal Package to its
clients which includes Hamburger, Cold drink and French Fries at a lesser rate when
compared with the single cost of each item.
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Selling: The concept of selling is closely related with the marketing function. Company
makes goods & services in order to generate revenue, which they can probably yield by
selling their product and services to those who actually needed it. Selling is the only
medium through which a firm can effectively meet their client requirement. It means that
once the company is done with determining various choices of buyer they are asked to
fulfil their demand by providing right product at right price and time period. McDonald is
selling their product through their stores, online and also providing the services of home-
delivery (Cooper, 2013).
Distribution: Under this function, marketers take into consideration such decision
related with carrying or moving things from one location to another. To attain this task
effectively, four major decisions were undertaken thoroughly which includes Inventory,
Transportation, Order Processing and Warehousing. McDonald is saving their place and
time utility by providing products to end-consumer at right place and within a specified
time frame.
Above mentioned are the various responsibilities that is related with marketing function
and which aid in achieving McDonald's both long and short goal effectively and in a specified
manner.
P2 Explain various marketing responsibilities and roles in organizational context
Success of every business enterprise depends upon how well they fulfil the consumer
requirement and influence them to buy their product. The term marketing not only deals with
adverting the goods or services but it also assist in managing the functionality and performance
of different department of organisation (Desai, 2013). Firm is mainly compromise of distinct
department such as Human Resource, Information-Technology, Finance, Research &
Development etc. and each section using marketing in their own way to attain higher profitability
ratio. Below mentioned are the detailed explanation of how marketing is interlinked with
different department of company :
Marketing and Information Technology Department: In order to acquire or hold large market
share, company's are advised to use innovative and advanced technology. They can formulate
plans and strategies in a better way with the help of modern technology. Now-a-days consumer
wants to share great connection with brand. Apart from receiving value for the product,
millennials wants to build trust among the company which will make them loyal toward
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particular brand or product. McDonald has taken the advantage of innovative technology in the
form of introducing its own digital order platform which includes self-service kiosks. They have
also launched various new features which contributes in increasing their overall market share
such menu innovation, makes easier for the customer to order online, home-delivery services.
Marketing and Human Resource Department: The primary responsibility of HR Manager is
to hire well educated and skilled personnel who puts their best in achieving organizational goal
effectively and efficiently (DuBrin, 2011). In order to attain large number of sales, firm needs to
stimulate the potential buyer and for this they are necessitate to hire talented people who possess
the great command in influencing buyers to make final purchase. Last Year McDonald had used
Snaplications process in which they allow job seekers to send their details via Snapchat.
McDonald believes that if their employees are satisfied, then only they are able to meet the
requirement of target customer. McDonald 95% jobs are filled with graduates or existing
employees. This states that they are using both internal and external source of recruitment.
Satisfied employees will retain with the company for longer period.
Marketing and Research&Development Department: When the company is aware about the
needs and choices of their target customer, it becomes easier for them to make or modify their
product accordingly. R&D helps the company to investigate detailed information about the
potential buyer related to its choices which is keeps on changing rapidly. McDonald's frequently
chat with their customer which gives them the benefit to understand their consumer in a better
way. For instance, when McDonald was launched in India, they have researched enough about
their choices (Durmaz, 2011). In India, hamburgers re not so common even Indians don't know
how exactly it looks like so instead of offering hamburger they have modified their name with
Burger which Indian People were kinda aware of. Also In India the consumption of non-veg is
quite less as compared to other foreign countries. So McDonald focused on critically researching
about their client preferences which ultimately help in fulfilling their requirement in an effective
manner.
Marketing and Customer Service Department: Customers are considered as the king of
market, whose primary duty is to make profit for the companies by taking their product or
services. Thus, companies are liable to satisfy the customer requirement effectively. Most of the
firms are choosing social media platform in order to highly satisfy their target consumer.
McDonald is satisfying their audience by providing them what they are actually looking or
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desired for. McDonald customer service department is continuously monitoring their facebook
and instagram pages (Jones and Rowley, 2011). McDonald is also focusing on providing better
wages and training&practices to its workforce which in return will aim to satisfy their clients
fully. McDonald Policy is Happy Customer=Happy Employees which they have formulated in
their entire workplace or franchises which gives them the benefit of higher competitiveness
level over their rivals, as their workers put their best in work and yield higher revenues for the
firm.
Marketing and Finance Department: Marketing and finance are referred as two most
important pillars of a company on which their entire profit and revenue depends. Finance consist
of profit, cost whereas the term marketing includes publicity, promotion, sales volume, target etc.
As almost 40% of the McDonald's revenue is generated through Franchising so they used
marketing tool in order to stimulate people to take their franchise.
Marketing and Sales Department: Sales Department acts as a mediator between consumer and
manufacturer. Sales manager examine the dynamic requirement of millennials and transfer it to
production department so that they can make or alter good accordingly (Malhotra, Birks and
Wills, 2013). The main responsibility of sales manager is provide product or services to its
buyers at an affordable price which creates value for the money spent by the target audience.
McDonald is often using Price Bundling strategy which enables customer to take the advantage
of two or more product simultaneously but at a reduced price. Marketing helps to generate leads
for the company which results in actual sales, thus increasing the overall profitability & revenue
of the firm.
From the above mentioned points, this states that how different department of company uses
marketing technique in order to accomplish their long & short term objectives effectively and in
a better way which gives them higher competitive advantage over their rivals.
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TASK 2
P3 Application of marketing mix of different organisations to marketing planning process
Marketing mix: It is necessary and important part of business organisations to introduce
their products in the market. Marketing mix is used for this purpose and it includes 7p's of
marketing, i.e., product, price, place, promotion, process, people and physical evidence (Mihart,
2012). All these components support the firm to gain competitive advantages and higher
profitability from the market. Mc Donald's & Burger King are the two organisations of similar
industry that deals in same products and offer these to customers. Marketing mix of these firms
are as follows:
(Source: 7 P's Marketing Mix)
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Illustration 2: Marketing Mix
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Marketing Mix McDonald's Burger King
Product Different varieties of food are
produced by Mc Donald's such as
vegetarian & non vegetarian
burgers, Mc chicken burger, aloo
tikki burger, salad sandwich, ice
creams and other products (Peter
and Donnelly, 2011). They also
offer combos with French fries and
cold drinks.
The firm must provide value to its
buyers. It offers non veg food
products, veg menus, frozen deserts,
beverages etc. they provide innovative
products in order to attract customers.
The company provides similar
products as Mc Donald's.
Price Different prices are set by Mc
Donald's of different products. Non
veg burgers price is 80, potato
wedges in 50, cold drink in 40 etc.
firm use price differentiation
strategy as the prices of all the
goods varies according to the
product.
Pricing of goods provides competitive
advantage to the firm. Pricing strategy
of products comprises of discounts and
offers. The company set affordable
prices of its products so that more
customers are attracted towards the
firm. Burger King set low prices of its
goods in comparison to Mc Donald's.
Market oriented pricing strategy is
used by the firm.
Place Mc Donald's outlets are located all
over the world. The business is
equally spread throughout the
capital regions. Company do not
administer services of home
delivery but its outlets are quickly
accessible to its customers (Pike,
2015). They also provides take away
services to its customers.
The stores are located at those
locations where huge number of
buyers are present and buy their
products and services. The company
uses mobile app, restaurants and
website for delivery in order to
distribute its goods.
Promotion Mc Donald's spend huge amount of Burger king use various promotional
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money in promotion of its products.
Advertising campaigns, newspapers,
TV advertisement etc. are used to
promote its goods. It also sponsor
several programmes so that
customers are aware more to the
company (Rossi, Allenby and
McCulloch, 2012). The main aim of
promotion is to gain higher sales at
low prices. Firm promote its brand
uses branding campaign “ I'm Lovin
it” different sporting events are
sponsored by Mc Donald's such as
FIFA world cup, little league,
Olympic games and many other.
tools such as personal selling,
advertising, sales proportion and
public relation in order to promote its
goods. The firm use print media and
TV to advertise. Coupons and different
offers are also provided through
mobile app and websites to its
potential customers. Apart from this,
company also gives financial
assistance for programmes related to
education and provides scholarship in
order to maintain good relations with
public. By using these tactics, firm is
effectively strengthening and
promoting its brand.
People Company has specific manner of
addressing its consumers as well as
treat its employees in good way.
Their workforce have proper dress
code and firm focuses on its
manpower to be consumer friendly.
Employees are encouraged to take
participation in process of decision
making (Shaw and Director, 2012).
They have the responsibility to
provide quality services and
hygienic food to its customers.
People includes managers, employees,
customers and everyone. The outlet of
Burger king is headed by the
administrator. Crew members of
delivery carry out basic operations.
Manager is responsible for customer
interaction and day to day operations.
The service providers ensures
satisfaction of customers at Burger
king. To motivate their workforce,
they provide them appraisal according
to their performance.
Process Mc Donald's enhance their
processes and cooking methods
which they are used in producing
Their food manufacturing process is
transparent to customers. Best methods
are used by Burger king to provide
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