Hospitality Marketing Essentials: McDonald's Report

This report provides a comprehensive analysis of McDonald's marketing strategies, encompassing the concept of marketing, current and future trends, and the roles and responsibilities of a marketing manager. It delves into the marketing processes, the influence of marketing on other functional departments, and the value of marketing within the company. The report includes a comparison of McDonald's and KFC's marketing mixes, highlighting their strategies regarding product, price, place, and promotion. It also discusses the importance of effective interrelationships between different functional departments for achieving organizational goals. Furthermore, the report analyzes McDonald's marketing planning process to achieve its business objectives, providing insights into its approach to sales and revenue maximization and customer satisfaction.

Hospitality Marketing
Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY-1...................................................................................................................................3
1. Concept of Marketing including current and future trends................................................3
2. Overview of different marketing processes........................................................................4
3. Roles and responsibilities of marketing manager in context of the organisation...............5
4.How marketing influences and interrelates with other functional departments of the
organisation............................................................................................................................6
5. Value and importance of marketing role in context with company...................................7
6.Conclusions that emphasise the significance of having effective interrelationships between
different functional department..............................................................................................7
7 Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives...................................................8
ACTIVITY-2.................................................................................................................................10
Covered in PPT.....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is integral part of business organisation who assist them in surviving in
business environment which are more contingent in nature for longer period of time. Using of
marketing makes easy for organisations to seek attention of large number of customers towards
their offerings (Baines, Fill and Page, 2013). For this, the marketing manager must produce a
marketing budget to adopt various marketing tools such as social media, TV advertisement etc.
to influence the buying behaviour of customers in favour of company’s offerings. The present
assignment report is based on McDonald’s which is engaged in producing wide range of food
items that includes Hamburgers, French Fries, Milk Shakes and much more. It was established in
the year 1940 currently considered as one of the world’s largest food chain by revenue. The
report discusses the marketing concepts along with current and future trends in marketing, roles
and responsibilities of marketing department, comparison between marketing mix of two similar
organisations, and formulating marketing plan of McDonald’s to maximise sustainability in
rivalry market.
ACTIVITY-1
1. Concept of Marketing including current and future trends
Marketing act as a medium for organisations to communicate with their targeted customers
regarding their offerings and collecting their preferences so as to meet them in an effective and
efficient manner. It supports organisations in continuing their business operations for longer
period of time.
Marketing concept: It is defined as an assumption that an organisation must identify all the
customers’ needs and requirements and bring awareness about company’s new offerings so as ti
maximise customer strength and profitability.
Concept of Marketing-
 Production Concept- This concept mainly emphasis on bringing efficiency in
production system so that minimum cost could be incurred that makes easy for an
organisation to offer their products at an effective price. This guides manager of
McDonald’s to update their production system with efficient equipment’s so that an
effective could be charged from the customers (Brooks and Simkin, 2012).

 Product Concept- This is the concept which is based on assumption that customers
shows their willingness to buy quality products with having distinct features. This
motivates managers of McDonald’s to update their current offerings with innovative
improvement that helps in satisfying customers’ needs and requirements.
 Selling Concept- Under this concept, organisations believes that without adoption of
promotional tools, sales cannot be increases. In the context of McDonald’s, managers
must focuses on using digital platforms where large number of customers are active. It
makes easy for company to get their attention and increase sales (Clow, and James,
2013).
 Marketing Concept- This concept believes that organisation must identify the demands
and needs of market so as to achieve long term sustainability. Thus, it directs marketing
manager of McDonald’s to conduct market research so that fluctuations in market needs
and demands can be easily identifies and meet them accordingly.
 Societal Marketing Concept- This is the concept that is based on assumption that
products and services offered by organisations must protect the interest and safety of
people living in society or community as a whole. For this, the managers of McDonald’s
must produce quality products using standard ingredients so that it cannot harm the health
of customers.
Current and Future Trends
The current trends in marketing is using of digital technology including social media, TV
advertisement etc. Among these, social media is nowadays more popular where large number of
customers are active on daily basis. Thus, it becomes easy for McDonald’s to communicate with
them within less time and influence them with new discounting offers. This will help increase
customer base of McDonald’s. Apart from this, future trends in marketing includes 4E’s
comprising experience, engagement, exclusivity and emotions that should be beneficial for
McDonald’s if taken such aspects into consideration. Along with this, ephemeral marketing is
another future trends that will last for 24 hours which creates interest among customers in buying
their products (Dibb, and Simkin, 2013).
2. Overview of different marketing processes
Marketing process includes the stages of influencing buying behaviour of customers
towards the company’s offerings. These stages are briefly explained as under:

 In the first stage, managers identify the market opportunities that can easily avail by
McDonald’s to increase its profitability (Lane, 2015).
 In this second stage, McDonald’s identify the targeted customers to whom the products
will be produced. This can be possible through conducting market research.
 In the third stage, marketing channels will decide to adopt that can easily attracts buying
behaviour of targeted customers. For example, social media, TV advertisement etc.
 In the last stage, the managers of McDonald’s collects feedbacks from the customers after
buying their products that allow them to make relevant changes in their current offerings
(Marketing Process, 2018).
3. Roles and responsibilities of marketing manager in context of the organisation.
Marketing manager plays an important role in the growth and success of an organisation
by reaching company’s products and services to the acknowledgement of targeted customers. In
McDonald’s, roles and responsibilities of marketing manager is given below:
Roles of Marketing Manager
 Marketing manager always put their efforts in communicating with targeted customers
with a motive of identifying their actual views and perceptions towards company’s
offerings. This can be done using social media platform (Lipsman and et. al., 2012).
 Marketing manager brings out information about changing customers’ buying behaviour
and further communicated to production department to produce those products who are
highly in market demand.
 Marketing manager is responsible to prepare budget for using promotional channels. For
this, they tries to create a better relations and coordination with finance manager through
conducting a meeting (Functions and Responsibilities of Marketing Manager. 2016).
Roles and Responsibilities of Marketing Department
 Market research: Marketing department is responsible to conduct market research with a
motive of identifying current trends that can easily seeks an attention of targeted
customers. Along with this, identifying rivals’ strategies and their plans will also drive
managers to update with existing strategies in order to compete with them in more
effective and efficient manner.
 Promotion: Marketing department is responsible to use cost-efficient marketing
techniques which attracts most the targeted customers without investing more. Offering

discount coupons etc. using online platform can easily influence buying behaviour of
targeted customers (Long and Jerath, 2018).
 Product pricing and distribution channels: Marketing department is held responsible
to set up an effective price that can be acceptable by targeted customers. Along with this,
decision of choosing distribution channels is also have a duty of marketing department as
this decides the amount of sales and revenue the company would generate in the market.
4.How marketing influences and interrelates with other functional departments of the
organisation.
Every organisation could sustain in rivalry market for longer period of time only if it
receives equally support and contribution from each department that includes marketing, finance,
HR, Production etc. In order to perform its roles and responsibilities, marketing department of
McDonald’s needs to interrelate with other department in following way:
 Marketing and Production Department- Marketing reaches products produced by
production department to the targeted customers which in results generate sales and
revenues (Mihart, 2012). Conducting marketing research by market division helps
production department to focus on producing those products which are highly in market
demand. These interrelations of both departments contributes maximum to the
profitability of McDonald’s.
 Marketing and HR departments- Marketing department invites new applicants for the
job position vacated in McDonald’s through advertisement which makes easy for HR
division to recruit and select skilled and knowledgeable candidates among various
applicants. Likewise, HR manager conducts training to the employees recruited in
marketing departments which makes easy for marketing division to get maximum support
from them. Thus, these interrelationship maximises the sustainability and profitability of
McDonald’s.
 Marketing and Finance Department- Marketing department brings investors by
promoting company’s wealth during past years that makes easy for finance division to
raise and manage funds. Likewise, preparation of marketing budget requires support from
finance division. Thus, these interrelationship helps McDonald’s in maintaining financial
position in market for next years (Nicholls and et. al., 2013).

 Marketing with Sales Department- The results received due to contribution of
marketing division helps sales department in achieving their targets. Marketing division
retains loyal customers and attract new ones which increases sales and revenue of
McDonald’s. Thus, these interrelationship helps McDonald’s in making continuous
increment in sales and revenue in competitive market.
5. Value and importance of marketing role in context with company
Marketing makes easy for McDonald’s to brings customers into their outlets by influencing
their buying behaviour by using various promotional channels. Due to this, marketing values
most in the success and growth of McDonald’s. Here are some points that describes the value
and importance of marketing in growth of McDonald’s:
 Marketing promotes company’s offerings towards targeted customers in such a way that
brings confidence among customers to buy their products without any hesitation in
concern of their health (Pike, 2015).
 Marketing promotes brand image in the market by retaining loyal customers with
company for long duration through meeting their needs and preferences by updating their
pricing policy on specified time period.
6.Conclusions that emphasise the significance of having effective interrelationships between
different functional department
Working together by different departments of McDonald’s supports healthy work
relations and environment at workplace that encourages employees as well to contribute their
maximum efforts in the achievement of organisational goals and objectives. Managers of
different departments if working and coordinating together makes easy for each of them to deal
with contingency and fluctuations comes in the market trends due to changing buying behaviour
of targeted customers. This helps McDonald’s in maintaining their strong position in market
among their rivals for longer period of time (Rossi, Allenby and McCulloch, 2012).
7 Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives.
Marketing mix comprises of seven P’s including price, place, product, promotion, process,
people, physical evidence. This drives marketing manager of McDonald’s to make suitable
changes in their existing plans and policies in order to compete with their rivals operated in

similar industry. McDonald’s has different business objectives which includes sales and revenue
maximisation, increasing customer satisfaction level etc. Thus, comparing marketing mix helps
them in identifying the lack areas where they need to work on to achieve in future time period.
Here are the comparison between marketing mix of McDonald’s and its rival KFC:
Basis McDonalds KFC
Product McDonald’s is offerings wide
range of food products which
includes hamburgers, French
fries, soft drinks and much
more. It mainly focuses on
quality due to targeting
middle- and high-income
group.
It is organisation offering
similar kind of products which
includes burgers, wraps,
French fries, salad and many
more food items. It’s
specialisation is offering fried
chicken.
Price McDonald’s offers different
prices in their different outlets
due to getting affected from
different factors while
operating in particular
location. It attains strong
brand image that easily
attracts customers without
considering their pricing
strategies.
KFC is setting premium
pricing strategy due to
targeting high income group
of people. They have
confidence in receiving
maximum orders from their
customers without lowering
their pricing strategies
(Simkin and Dibb, 2013).
Place The outlets operated by
McDonald’s are running 24
hours a day. In more than 100
nations, McDonald’s has over
38000 outlets through which
they serves millions of
customers with home delivery
KFC has operated over 300
outlets across worldwide. It
offers products through online
platform running on franchise.

option as well.
Promotions McDonald’s invests more on
adoption of promotional
channels which includes TV
Advertisement, social media
marketing, pamphlets,
newspapers etc. It attained
strong wealth and huge
customer base thus focusing
more on marketing.
KFC also put more emphasis
on marketing which includes
offering add-ons on existing
menu, gift coupons,
cashbacks, combo pack etc.
Their outlets have LCD
displaying current offers of
company. Along with this,
hiring celebrities also become
one of an effective marketing
tool they used.
People McDonald’s always concerns
about taking care of their staff
by providing them training
and learning sessions which
makes easy for them to serve
customers in polity way.
The staff working in outlets
of KFC are well trained to
serve and communicate
customers about company’s
new offers.
Process It offers various ways to
deliver their products and
services at the table in their
outlets. Home delivery option
is also provided to make easy
for customers to get their
products.
The process of serving
products and services starts
when the customers arrives at
their outlets and orders them
from the provided menus.
Physical Evidence McDonald’s has an outlet
with good ambience and
friendly environment which
makes their customers
comfortable to sit and order.
Their outlets are designed in
specific way as given by
parent company. The
company uses digital
technology such as LED,
Online payment option etc.

which makes easy for their
customers to make
transactions.
There are various tactics that can be used by McDonald’s to their desired business
objectives. These tactics includes market segmentation and 4ps of marketing which help them in
identifying their targeted customers and make suitable marketing strategies to influence their
buying behaviour towards offerings of company. This increases customer base and revenue of
company.
ACTIVITY-2
Covered in PPT
CONCLUSION
It has been summarised from the above report that marketing is essential for every
organisation to survive in business environment. The marketing manager is held responsible to
perform their roles and responsibilities through taking support from other departments as well in
order to achieve organisational goals and objectives. It is also important for an organisation to
update their existing offering list and other plans which can be possible through comparing their
marketing mix with their rivals.

REFERENCES
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Clow, K.E. and James, K.E., 2013. Essentials of marketing research: Putting research into
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Dibb, S. and Simkin, L., 2013. Marketing essentials. Cengage Learning.
Lane, P., 2015. Human resources marketing and recruiting: essentials of employer branding.
Handbook of Human Resources Management. pp.1-30.
Lipsman and et. al., 2012. The power of “like”: How brands reach (and influence) fans through
social-media marketing. Journal of Advertising research. 52(1). pp.40-52.
Long, F. and Jerath, K., 2018. Dynamics in Textual Content and Ratings in Online Product
Reviews. under review at Journal of Marketing Research. 23.
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Nicholls and et. al., 2013. Ethics, corporate social responsibility, and sustainability education in
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of Marketing Education. 35(2). pp.129-140.
Pike, S., 2015. Destination marketing: essentials. Routledge.
Rossi, P. E., Allenby, G. M. and McCulloch, R., 2012. Bayesian statistics and marketing. John
Wiley & Sons.
Simkin, L. and Dibb, S., 2013. Marketing essentials. Cengage Learning EMEA.Wirtz, J.,
Tuzovic, S. and G. Kuppelwieser, V., 2014. The role of marketing in today's enterprises.
Journal of Service Management. 25(2). pp.171-194.
Wirtz, J., 2012. Essentials of services marketing. FT Press.
Online
Functions and Responsibilities of Marketing Manager. 2016. [Online]. Available
through:<https://www.gktoday.in/gk/functions-and-responsibilities-of-marketing-
manager/>.
Marketing Process. 2018. [Online]. Available through:
<http://www.businessstudynotes.com/marketing/principle-of-marketing/explain-the-
marketing-process-in-detail/>.