Marketing Essentials: MacDonald's Marketing Strategy Report

This marketing report provides a comprehensive analysis of MacDonald's marketing strategies. It begins by outlining the key roles and responsibilities of the marketing function within an organization, emphasizing its relationship with other departments like finance, HR, R&D, and operations. The report then delves into the application of the 7Ps of the marketing mix (Product, Price, Promotion, Place, People, Process, and Physical Evidence) for both MacDonald and its competitor, Burger King. Furthermore, it constructs a basic marketing plan for MacDonald, highlighting essential elements for achieving its objectives. The report emphasizes the importance of understanding customer behavior, adapting to a dynamic business environment, and utilizing innovative marketing systems to achieve sustainable revenue and establish goodwill.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key roles and responsibilities of the marketing function ....................................................1
P2. Roles and Responsibilities of marketing relate to the wider organisational context. ..........3
TASK 2............................................................................................................................................5
P3. 7P's of MacDonald and Burger King....................................................................................5
TASK 3............................................................................................................................................9
P4. Basic marketing plan for MacDonald...................................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is the important component of business functions that involve number of
activities to be performed in effective manner. Every business organisation carry out this process
in order to promote their products and services to ultimate customers. It involves several plan of
actions like advertising, physical distribution of final goods and products and after sales services.
The chosen company in this report is MacDonald, which is a well established fast food company
and is among the largest restaurant chain operating in maximum nation all over the world. It
offer variety of products that include hamburgers, French fries, soft drinks, non- veg food items
to their potential customers. Apart from this, this assignment highlight the various roles and
responsibilities that marketing functions contain and its relationship with other functional areas
operating in single business organisation system. It also focuses on developing marketing plan
that include number of activities to be performed in order to attain set objectives and purpose of
that entity. Furthermore, there is concept of marketing mix that involve 7P's that have its own
importance and features playing important role in executing marketing procedure that ultimately
lead to generation of sustainable revenue.
TASK 1
P1. Key roles and responsibilities of the marketing function
Marketing is a broad concept that involve numerous activities and actions to be
performed by marketing department in effective and efficient manner. They have to conduct
market research in order to evaluate the behaviour and nature of customers and than take
decisions accordingly. Their main aim include satisfying the basic needs and wants of ultimate
customers and consumers. Thus, it become essential to produce such quality products and
services which result in satisfaction of customer's desires (Armstrong, and et. Al, 2015).
Every company exist because of some vision and mission that is formulated by the
management system and has to be achieved in set time period. The primary aim of the company
include earning huge profits and establish their sustainable goodwill for longer period of time.
Due to advancement and modernisation companies have to adopt innovative marketing system so
that whole marketing process could be conducted in effective way and ultimate goals could be
attained adequately (Wilson, 2014).
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Nature of marketing function:
 It is focused on fulfilling human actions: The basic aim of marketing function is to
perform only those actions that lead to fulfilment of human needs and wants (Sheth,
2011).
 Exchange activity: Every marketing action is performed between seller and buyer. This
means that producer produces those goods that customer wants and they purchase, in
return of money.
 It is a dynamic process: Marketing include order of activities that are interrelated with
each other hence, it is consider complex and dynamic process.
 Development of utilities: Marketing function involve creation of utilities of four
elements that include place, time, form and possession. Each utility element have
distinctive use and importance.
 Its fundamental motive is to work according to the point of views and feedbacks of the
customers and draft their overall planning process in accordance to it and than, perform
all functions accordingly.
Roles and Responsibilities of Marketing Functions: Storing and transportation: It involve warehousing facility that is taken up by marketing
department of business organisation. It is not necessary that every products have to be
sold at the same time, there can be situation in which it have to be stored for some period
of time. It is important to transport produced goods from factory area to market place so
that potential consumers can buy it easily. MacDonald have proper system of storing and
produce only those goods that are in demand. Marketing Information System: It is a initial step in marketing function that involve
conducting market research so that all relevant data can be gathered which is used in
making decisions effectively (Pomering, Noble, and Johnson, 2011). Management of
MacDonald have several information system that allow them to collect materialistic
information so that proper decision could be taken. They have transaction processing
system, in which exchange of important information take place between two individuals.
Like, company sells large quantity of hamburgers in response to orders which are placed
by the customers. After receiving the order, MacDonald forward it to their suppliers and
than, transaction processing system store all the information and carry out the process. It
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also involve branding, labelling, packaging functions which is carried out by marketing
department in economical way. Selling and Buying: It is a major objective of marketing to induce their customers to buy
that particular product so that sells take place which result in earning revenues (Askeland,
and Wright, 2013). This process take place between producer and customers hence, it is a
two way procedure. MacDonald have carry out their transactions in response to the
demand that is generated by the final customers. Financing: Finance is consider most important resource of each and every business
organisations as it is required to conduct several business activities that has to be carried
out effectively. Especially, marketing department involve utilisation of funds at various
key areas thus, marketing manager have to use it optimally wherever necessary.
Company have to take decisions regarding sources from where they can borrow adequate
amount of finance and run their business properly. Advertising and promotional activities
also include huge amount of finance to carry out in effectual mode.
 Product development and designing function: It is very crucial to design their product in
such a manner so that it attracts large number of people towards it and able to accomplish
final objectives and purposes. Today's scenario is dynamic and competitive in nature
thus, business entities have to develop and design their products properly so that buyers
gets attracted and result in selling process. MacDonald have proper system of
improvements in existing product and services so that they can able to establish their
good image in customer's mind.
P2. Roles and Responsibilities of marketing relate to the wider organisational context.
Marketing department of MacDonald play a vital role in business organisational system
and perform number of functions that has to be performed in impelling and efficient manner.
There are number of departments that are present in single business organisation that include
human resource, production, finance (Pomering, Noble, and Johnson, 2011). There is proper link
between these departments that results in accomplishment of final goals and objectives in proper
manner. Similarly, marketing department of MacDonald have relation with other sections also
and together they work towards single direction and path. The relationship of different
departments with marketing section is described below:
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 Finance and marketing department: Funds are the main resource that have to be
allocated in proper and key areas so that ultimate work could be achieved. It is not
necessary that organisation have sufficient amount of funds available to them, but they
can borrow from number of financial institutions that are present in business
environment. Hence, this work is conducted by finance department to keep check over all
the activities that has to be performed. Marketing department require finance to carry out
number of activities and actions like advertisement, promotion and many others. Hence,
finance section allocate overall finance system in appropriate way so that ultimate goals
could be accomplished (Babin, and Zikmund, 2015). HR and marketing department: The basic role of HR department to recruit potential and
prospective employees in to their system. Employees are consider most important
resource that align their personal objectives with the organisation's aims so that they
together lead to accomplishment of set vision in effective manner. The marketing team is
recruited by HR department and thus they are interrelated in this way. It the duty of HR
manager to perform recruitment function in such a manner so that knowledgable and
skilful employees are absorbed into the organisational system. MacDonald have effective
system of recruiting correct staff members at various job positions. R&D and marketing Department: R&D is consider most crucial department as they have
to perform research and development function in which they examine all the factors that
are present inside and outside of company and formulate policies accordingly. As the
business organisation have to operate in ever changing environment and execute their
overall policies in response to it. Thus, it is the duty of R&D department to perform in
such a way so that they collect or gather all the useful information that must be
implemented into the system and than react positively. There can be situation in which
changes are to be brought into the company and have to restructure their overall system
in relation to it (Menegaki, 2012). Operational and marketing department: Operational department perform all transactions
and functions related to operations that has to be conducted effectively. They carry out
the work process in accordance to information shat is supplied by marketing section. As
operational department keep record of all activities which include locating the key areas
and selecting most appropriate option that allow them to attain last objective. There are
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number of resources that has to be allocated at proper place so that they can provide
effective results and outcomes. Operational section of MacDonald work according to the
data that has been formulated by marketing manager and that is how they coordinate their
work correctly. Marketing and Sales department: Sales team have some purposes and plan of actions
that has to be achieved by marketing department by aligning their basic aims in accurate
and proper manner (Blacher-Wilson, Mense, and Richardson, 2011). Sales department of
MacDonald aims to achieve maximum revenue in particular time period. There are
number of tools and techniques that are implemented by the management system of
MacDonald so that proper marketing and sales plans can be executed expeditiously.
 Marketing and IT department: The elementary function of IT department is to carry out
all the work operations and transactions in innovative and modern means. Thus, they
motivate marketing department to perform all their activities in accordance to present
demands and conditions. By implementing advanced technology system into the business
they can perform research process properly without any hindrance or obstacles.
MacDonald utilise several IT solutions to face several challenges and issues that is
directly connected with accomplishment of vision and mission in accurate time period.
From the above discussion it can be concluded that marketing department have link with several
departments that are present in organisation. Marketing section of MacDonald have several
responsibilities towards the system and they can perform it while coordinating with other diverse
departments.
TASK 2
P3. 7P's of MacDonald and Burger King
Marketing mix is a important concept which is used in organisational concept in which
there are seven elements that possess certain characteristics and feature which are properly
implemented by the company to succeed in their final end and objectives. These components are
product, price, promotion, process, physical evidence, people and place. It is the aim of
management to execute all these elements in correct way so that they can be located at
appropriate place. Initially it comprises of four models that include price, place, promotion and
product, but due to several changes in business environment it has been extended to 7P's which
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include three more components namely physical evidence, people and process. For instance,
MacDonald and Burger King must ensure that right products must be placed at right place and in
right time. Manager must ensure that all these constituents must concentrates on increasing the
productivity and efficiency level (Clow, and James, 2013). Every company exist to earn high
profits and outcomes as well as large number of customers that will remain their regular
customers for longer period of time. Its major competitor is burger king which is also offering
similar products of MacDonald.
Marketing mix of MacDonald is described below:
 Product: MacDonald offer large variety of food item to their customers according to
their needs and wants. They are famous for burgers that comes in different ranges. Other
products include fries, snacks, hotcakes, hamburgers, chicken, sandwiches. On the other
hand they also offer distinct types of beverages that include vanilla, chocolate, apple pie,
strawberry shakes and many more.
 Price: MacDonald have several pricing strategies that are adopted by the management
system in order to sell their types of products to final customers. Their chief motive is to
deliver all their food items and services at a competitive price, but it may be different for
diverse restaurant chains that are located in various places. They adopt cost plus, value
pricing, price discrimination and loss leader pricing strategies.
 Place: MacDonald have proper distribution strategies but are different in diverse
countries. Like, at some places it is open for 24 hours while this is not applied to every
place. On the other hand, they offer home delivery services to other part of world. Hence,
it is present in almost major countries all over the world. Hence, they have different
services that are offered at distinctive places according to the market situation and
condition (Desai, 2013).
 Promotion: MacDonald is famous for applying number of promotional tactics in market
place. They make advertisement with the use of print and electronic media that include
magazines, newspapers, internet and many others. They have other techniques adopted by
them to effectively promote their products and that include freebies, discounts and
coupons.
 Process: It refers to the plan of actions that is conducted to attain something in effectual
and efficient way. MacDonald perform their activities properly to supply their final
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products and goods to their ultimate consumers. The most crucial process carried out by
company is food preparation which is complex in nature but it is transparent too that
means clients can review the food preparation process on their own (Lovelock, 2011).
 People: MacDonald employ huge number of employees in to their company, they have
around 98000 employees working in northern Ireland and UK. According to this
component of marketing mix they focus proper attention on their resources that include
employees and customers. High level management always tries to impart training and
development process in order to enhance skills and knowledge of their existing
employees. Workers are consider important and essential resource of the company and
that is why they have to be kept happy and contented so that they can deliver best
outcomes out of their efforts. There is proper system to find out the demands and needs
of staff members and workers so that it can be properly met out (Enache, 2011).
 Physical Evidence: This last component of marketing mix defines the internal
environment that it offers to their ultimate customers. This is an essential part that has to
be consider by MacDonald in order to retain their customers for longer period of time.
Interiors of this company is very grateful and captivating as well as they remain neat and
fresh.
Marketing mix of Burger king
Burger King is one of the major competitor of MacDonald and poses huge competition in
front of them. Its marketing Mix is discussed below:
 Product: Burger King offer variety of products to their customers in market place. They
are famous for hamburgers, French fries. They also offer variety of food items that
include bacon cheese burger, mini muffins, whopper junior and number of beverages
item that involve milk shakes and soft drinks. It is essential to make those products and
goods which are according to demands and needs of the customers that are prevailing in
current market place (Getnet, Kedir, and Yousuf, 2014).
 Place: Burger King have its chains located in number of countries across the globe.
There are present in around 79 countries having approx 1400 stores or outlets. Major
countries include Taiwan, south Korea, Singapore and Japan. There are number of
alliances and subsidiaries of Burger King that are present in several regions.
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 Price: Burger king charges high competitive prices of their products and they have
proper system of pricing policy that is executed by this company. Their price varies
according to needs and wants of customers that belong to different group of people. They
work on the concept of low and high prices in which they charge low price so that
customers can afford that products whereas they charge high price for the products so that
no doubts will rise in customer's minds.
 Promotion: Burger King have specific methodologies that are adopted by them to
restructure their strategies which is related to its advertisements, menu and decision
related to expansion. They also run various melodious jingles and campaigns in order to
promote their products in market place. They also make use of electronic and print media
to advertise their products and services.
 Process: The main aim of Burger King company is to continuously make improvements
and up gradations in their existing process so that they can carry out the overall process
effectively and efficiently. They always focus on coming up with new and innovative
strategies that assist in establishing goodwill for longer period of time (Leonidou,
Katsikeas, and Morgan, 2013).
 People: This component of marketing mix include potential customers and workers that
are working in that company. They pair it with “ Have it your way” concept that defines
to deliver best and quick customer service. Thus, they provide full attention on the needs
and wants of their customers in order to make them happy and satisfied with their
services. It is observed that they majorly focuses on satisfying the customer's necessity
and wants properly so that they retain for longer period of time with them. Management
has formulated specific process that has to be followed by each and every individual that
is present in the company. Non compliance of it will pose them high losses and difficulty
which will hinder their performance in many ways. Employees are given appropriate
training so that they can adopt all new and innovative style of working and that
concentrates on achieving final vision of the company (Gordon, 2012).
 Physical evidence: Burger kings have large number of branches containing around
12000 restaurant chains. They also make their presence through internet by operating
their website with the name BK.com. They also have well designed interior structure that
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consist of modern building structures that attract large number of customers in market
place. Thus, they operate offline and online which aid them to enjoy high market share.
From the above discussion about marketing mix of two major food restaurants that are
running successfully in business environment. It has been observed that all seven components of
marketing mix possess several characteristics and features that must be calculated by the
management of both the companies effectively.
TASK 3
P4. Basic marketing plan for MacDonald
Marketing plan -
Marketing planning is one of the important task for marketers as it assists to develop
products and services of a business which meets needs of target audiences. Effective marketing
aids buyers to recognise why products of a company are better than competitors. Thus,
formulation of marketing plan boost up client base and ultimately bottom of the company. It is
required to set clear, measurable and realistic goals. Along with this, preparing a marketing plan
needs proper research, time and commitment, but its very valuable process that can greatly
contribute to business success (Griffitts, 2016).
Marketing plan is an important consideration for each business organisation so that they
lead to maintain and manage their revenue and expenses properly. Senior management used to
prepare it so that better and efficient gain suppose to be underpin in a better and supported
manner. This element enable and support business to fully utilise resources properly which
further reflect in better and suitable outcome with this aspect business also become able to
accomplish their targets in better and definite frame. Below presented is a marketing plan for
MacDonald whom are one of a superior company in the field of food chain.
Overview of company: McDonald's is an American food chain company whom have
largest food chain market in the world. Company deliver their best and high standard quality
products to each and every individual as per their client needs and demands. It was founded in
the year 1940 and target the whole world as their market area. They already provide jobs to more
than 3,00,000 employees whom have better and supportive knowledge. They have shareholders
and stakeholders in all around the world. Thus, business expanding their operations by opening
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more and more franchise all over the world which enable them to generate more and more profit
and revenue (Huang, and Sarigöllü, 2014).
Vision of McDonald's: This is a written statement of a company which define their work
and ability in an appropriate and define manner. Along with this it also simplify how to business
deal with their ultimate users so that better and positive response could be derive. Business have
to clearly define their core competency properly through vision of company so that better and
definite return suppose to be underpin. A clear vision of a company is to deliver quality products
to each and every group of customers which enhance not only their satisfaction level but also up
bring the motivation to buy Burger and other products (Jones, and Rowley, 2011).
Mission of McDonald's: This should be create by unrivalled so desired targets and
objectives will be accomplished by firm inside set time frame. Organization is giving subjective
things and administrations to individuals which help them to provide food greatest fulfilment to
customers. Therefore, benefits and offers of connection will get improved. They will have the
capacity to keep up client base in a viable and productive way. McDonald's mission is to spread
their business all over the world so that profit could be enhance and better satisfaction could be
deliver to each and every individual.
Situational Analysis
It is conducted through performing SWOT analysis.
Strengths Weaknesses
 They offer high quality products to
their customers.
 It have established brand equity world
wide.
 Offer variety of food items that are
preferable by the customers in market
place. It include happy meal, French
fries, muffins.
 MacDonald have experienced slow and
steady market growth and share.
 They have weaken product
development strategy that poses huge
problems in front of them.
 They also faced problems related to
disgruntled stores or outlets.
Opportunities Threats
 Being a successful restaurant company
they have opportunity to expand their
 They have to face huge competition
from their well established competitors
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