Marketing Strategies and Analysis: McDonald's Report

Verified

Added on  2020/10/22

|19
|4790
|125
Report
AI Summary
This report provides a comprehensive analysis of McDonald's marketing strategies, examining various aspects such as current and future marketing trends, different marketing processes, and the roles and responsibilities of marketing managers. It explores the interrelationship between marketing and other functional departments like production, finance, and human resources. The report also delves into the value and importance of the marketing role, comparing the marketing mix to the marketing planning process to achieve business objectives. Furthermore, it evaluates the effectiveness of interdepartmental relationships and concludes with a comparison of McDonald's marketing strategies with Burger King's. The report highlights the significance of effective communication and collaboration between different departments in achieving business goals, emphasizing the importance of understanding consumer needs and adapting to market changes. The report includes an analysis of the 7Ps of the marketing mix, offering a detailed comparison of McDonald's and Burger King's approaches to product, price, place, and promotion strategies.
Document Page
Marketing Essentials
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................1
1.) Introduction of marketing, including current and future trends........................................1
2.) The Different Marketing Processes...................................................................................2
3.) Explain the role and responsibilities of a marketing manager..........................................2
4.) An explanation about marketing influences and interrelates with other functional
departments.............................................................................................................................3
5.) The value and importance of the marketing role..............................................................4
6.) Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.............................................................................................4
7 Compare of marketing mix to the marketing planning process to achieve business
objectives................................................................................................................................4
8.) Produce and evaluate a basic marketing plan...................................................................9
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1
Document Page
INTRODUCTION
Marketing is activity to create, deliver, communicate, exchange, offer the valuable
products to consumers according to their needs. Marketing identifies needs of consumers and
guide the creation of services and products to fulfil demands of costumers (Babin and Zikmund.
2015). This study is based on McDonald's. It is an American Fast Food Company. This study
will discuss the concept of marketing, including current and future trends. It will explain the
different marketing processes. It will evaluate the role and responsibility of marketing managers.
This report will analyse marketing influences and interrelates with other functional departments.
It will discuss the value and importance of the marketing role. It will explain the marketing mix
to the marketing planning process to achieve business objectives.
1.) Introduction of marketing, including current and future trends.
Marketing is a business or action to sale, promote services and products that includes
advertising and market research. Its play a very vital role in organization because Marketing
trends are tendency of financial markets to get a way for particular direction over time.
Marketing concept is used to implement strategies to satisfy customer’s needs, maximize profits,
increase sales, and beat the competition. Its also helpful in develop product and evaluate that
choice, fashion and trend of customers and improve product. There is different concept which is
crucial part of Marketing concept such as production concept, selling concept and societal
concept.
Production concept: Production concept focuses on production efficiency, low costs and
mass distribution for organisation. To manage effectiveness in production the focus of firm is on
incorporating with current Social Messaging Application trends where there are so many people
who are active on Facebook messenger, WhatsApp, We Chat. Via messaging apps McDonald
can survey or send message to customers to know their interest. Marketing function helps to
provide raw material at cheap rate and evaluate of market.
Selling concept: This concept focuses on sales transaction than making relationship with
customers. The current trends of selling marketing concept are focused on Artificial Intelligence
and Block chain Technologies with the help of AI McDonald analyses customers behaviour,
utilizing data, search patterns, from blog posts and social media platform (Malhotra, 2015). This
technology allows organisation to track ads and ensure the real consumers than automated
1
Document Page
persons. But marketing function helps to sell function that it helps in evaluate target market and
give information to sales function.
Marketing Concept: Societal concept helps organisation to achieve gaols depends on
targeted market and deliver the desire satisfaction to customers than competitors. In this firm
incorporates with Data and Marketing Association where social media allow marketers to adhere
their customers or audiences to promote brand awareness or engagement. It is very lucrative
medium to stay up to date with changing customer’s interest or trends. However, future
marketing trends are digital or electrical map which is based on operation of graphic elements
that will help organisation to get electronic information about particular geographical areas for
expanding its business. .
2.) The Different Marketing Processes.
Marketing process analyse the opportunities in market, development of marketing g mix,
selection of the target markets and targeting the right audience. There is PR's SOSTAC market
planning model which analyse the general marketing facets of marketing like situation,
objectives, strategy, tactics, action, and control.
Situation: This step help organisation to assess where business is right now and where it
has to be after certain time of period. McDonald’s aim at understanding changing needs of
customers to meet individual expectations.
Objective: Objective creates the mission and goals for business. Due to this, organisation
gets the right direction to move business. The objective of McDonalds is to provide best quality
fast food and beverages so that they could be able to attract a greater number of customers.
Strategy: Making strategy helps to achieve the objectives and is based on various aspects
that is product, price promotion, etc. It deals with goals of organisations and manages business
performance. The objective could be achieved by setting out aims and planning for firm in
stipulated time period which will be helping them to manage their quality of food.
Tactics: Tactics support overall strategy of McDonald. Business tactics are actionable
plans that help to take business advantages. With applying marketing mix it would be easy for
McDonalds to identify what they could do for gaining larger market share. 7P’s will be helping
them to look for their product, price, promotion and other tactics which could be used by them.
Action: For McDonald’s it is very much important to ensure that all their tactics are been
executed in better and correct manner so that their goals could be achieved.
2
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Control: This means that what are the things which McDonald’s need to measure or
monitor. This includes looking out for all loopholes within plan so that changes could be done on
timely basis.
3.) Explain the role and responsibilities of a marketing manager.
There are some roles and responsibilities of marketing managers.
Role of Marketing Managers
Developing the Marketing Strategies and Plans: Marketing manager analyses the
costumer’s interest, needs. They maintain and develop the balance between McDonald's skills,
objectives, resource, market opportunities.
Marketing Research: Managers analyse potential opportunities, market segmentation,
target market selection, implement planning to market programs in the market. According to that
they generate alternative course of action. (Zgarrick and et.al., 2016).
Responsibility of Marketing Managers:
Identifying New Business Opportunities: Marketing managers identify the new
markets for product and service of McDonald. With help of purchasing pattern of customers
they analyse the demand of their products. For that they develop strategies in order to gain
competitive advantage.
Developing Market Plan and Campaign: Managers have responsibility to make
effective marketing plan via analysing current situation of company, describing targeted
audiences, making communication strategies and tactics.
Function of marketing-
3
Document Page
This will including performing market research, producing a marketing plan and product
development as well. This will also be consisting of advertisement and promotion with
distribution for sale of product. It helps to all departments that means it helps in overall
performance of organization it helps in promote product through advertisement and research of
marketing for improve and development and beat competition so it affect profitability and
productivity of company and increase revenue.
4.) An explanation about marketing influences and interrelates with other functional
departments.
Marketing helps to manage relationship with consumers via providing them valuable
products according to specified information. Marketing interrelates with functional department
of firm like operations and production, human resource department and finance department.
Production Management: Marketing department has to work closely with production
department to ensure that all products produced are as per need and demand of customers
(Campbell, Martin and Fabos, 2018).
Finance Department: Marketing department will help finance department to formulate
their budget by considering all cost and expense for division. It is very much important to work
with this department as all expense and cost are handled by them only.
4
Illustration 1: organizational function
[Source : Functional organization, 2017
Document Page
Human Resource Management: marketing department has to work closely with HR
department in way of ensuring that all their employees are getting trained. As the recruitment and
selection of personal for marketing department will be in hand of HR. while marketing will be
responsible for putting up all recruitment related advertisement in social media or other
platforms.
5.) The value and importance of the marketing role.
Marketing helps to exchange, transfer and movement of goods and services. It supports
both consumers and production. It identifies s specific preference and need of consumers and
according to that manufacturers produce the products (Gillespie and Riddle, 2015). The
marketing is important as it supports customers' engagement with different social media platform
like email, messaging apps etc. Marketing measure and understand demand of new ideas which
helps in meeting customer expectation and profits for business.
The value of marketing regarding to business, it has increased awareness of any products
of McDonald via advertisement within customers. It has incremented the sale of company and
create trust between company and customers.
6.) Conclusions that emphasise the significance of having effective interrelationships between
different functional departments.
Effective interrelationship between different functional department has been build trust
within the McDonald's. By trusted on each other department has delivered accurate information
that has eliminated extra fact checking that slow down productivity. With good communication
all functional department of McDonald's has maintained the high level of customer service. It
helped company to sustain and satisfied its customers. Good relationship between sale
department with marketing department has increased the product demand that enhanced the
revenue of company (Stern and Porr, 2017). Accurate exchange of information within n
department has improved the ability of sales projection.
Effective interrelationship between production department and marketing supported to
release new products according to customers’ needs and satisfaction. With healthy relationship
department has avoided to conflict and finger pointing. This helped them to transfer clear
information about innovation in products and services.
7 Compare of marketing mix to the marketing planning process to achieve business objectives.
5
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Marketing mix is used to develop marketing strategies. These tactics are used to promote
product and brand. It includes products, price, place, promotion, physical evidence, people and
process. Elements of marketing mix influence each other to make business plan for company in
order to achieve or handle success. Marketers use market mix to take important decision
regarding executing successful marketing strategy (Babin and Zikmund, 2015). Marketing mix
helps to target market and customers and according to that implement marketing strategies.
7P's McDonald's Burger King
Product McDonald use standardisation
strategy. It has a global brand,
so company produce a range of
standard products. McDonald
provide its customers teriyaki
burger with sweet and dark
teriyaki sauce, French fries,
burgers and coke as well Due
However, Burger king has a parted
itself from competition with its
“have it your way”. They follow
individualize for each product and
order. They have signed a licence
deal with Cog-Agra Food Lamb
Weston which offer the retail line
microwaveable fries. BK serve its
6
Illustration 2: 7 P's Marketing Mix
Source: (Marketing Essentials, 2019)
Document Page
to regional, cultural or legal
food habit in each country
McDonald has to adapt
different variety in food.
burger in both categories veg and
non-veg such as juice. Coffee,
biscuits etc.
Price McDonald use local
strategies rather than global
strategy. They use
psychological price strategy
and the price differs according
to economy of each company.
There price strategy is based on
different criteria such as
evaluation of completion,
quality of ingredients, supply
and demand, production cost.
The firm implies use of unit
pricing strategy which helps in
meeting buyers buying
expectation and profits from
particular sale.
While Burger King follows the
Market Oriented strategy and
bundle pricing strategy as well.
They price their products according
to market behaviour and demand.
For that they focused on better
quality (Gillespie and Riddle,
2015).
Place For place, MacDonald use
strategy of an international
brand. They are expanding
their restaurant whole over the
world. They are providing their
facility at prime location, at
residential areas, malls that is
accessible for customers etc.
Whereas, Burger King occupied
primary locations and has invested
more in signage, equipment’s,
seating arrangement and décor to
attract the customers. They have set
up their businesses in major cities in
each country by targeting the
demanding costumers. Also, they
have started take away and drive
through facilities to make is
7
Document Page
accessible customers.
Promotion For promotion McDonald
spend two billion each year. It
has to face cultural differences
in countries. McDonald use
global strategy for promotion.
Wen company made
partnership with Walt Disney
they propose Disney's toy in
happy meal for children. For
that they are using marketing
communication tools like
cinema, radio, poster internet,
press etc.
On the other hand, Burger King has
applied various marketing strategies
to their products. They are more
focused on advertising strategy
(Purvis, 2015). For that they
advertising in print media like
hoardings, newspapers, magazines
etc. Apart from this, BK is
organising various events for
reaching more customers. Such as
its value menu $1 talent show
invites consumers to show their
talent through videos in order to
winning a menu item.
Process Process is set of activities to
perform in order to achieve
business objectives. For that
McDonald is making food
manufacturing transparent to
their customers. Inventing he
most effective cooling
equipment, adapting new
methods of packing and
distribution, spending a million
on marketing research.
While, it has focused on method of
packaging and distribution, to
minimise the overall amount of
expenditure in terms of money at
this restaurant (Mueller and et.al.,
2015). It has maintained its taste,
customer satisfaction by providing
valuable services and products. they
also invite food specialist in way of
checking quality of food produced
and checking ingredients of
products
People Numerous people are
working in McDonald. They
Though, Burger King is focused on
their employees and customers as
8
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
spend millions on training and
development of their
employees. They give stars as
per employees' performance,
provide their workers larger
role in decision making. With
that they are giving cleanliness,
philosophy of quality, service,
fast friendly service and
conformant environment for
their customers.
well. Consumer satisfaction is
much higher of BK from any other
fast food company. By providing
unique and quality food, it has
maintained customers interest.
Burger King is also appraisal every
month for motivated the employees'
work individually. BK has managed
its customer service on theme of
“have it your way”.
Physical Evidence Physical evidence refers to
experience of customers and
environment visitor. It affects
both business impression for
outsiders and the way that
business function. For
maintaining physical evidence
McDonald works on their staff
members, cleanness,
transparency, speed, quality,
appearance and location,
hygiene interiors.
Whereas, Burger King has
tremendous presence in various
developed countries. Now it is
expanding its service in developing
countries as well (Hugos, 2018).
BK is capturing spaces in business
centres, shopping malls and
company canteen to target, attract
and grab more customers towards
them. BK always works to maintain
its building by creating attractive
interior by process of reinventing.
Marketing mix has 7 P's and overall helps in increase sales and product. Because marketing mix
has seven elements that helps in set goal of organization then evaluate target market increase
sakles and increase profitability and productivity.
8.) Produce and evaluate a basic marketing plan.
Marketing plan is a part of an overall business plan that helps to advertise and marketing
a product and service. It explains the business strategies for obtaining marketing goals within a
set time frame (Allen, 2016).
9
Document Page
Executive summary
McDonald's is American Fast Food Company founded by Richard and Maurice
McDonald in 1940. It has the largest restaurant chain in the world. McDonald's is going to
produce its new product Cheeseburger. Nowadays children have major interest to eat cheese base
food which made company to introduce cheeseburger.
Mission and vision:
It has vision to give the best quick service restaurant with high quality standard for
customers' experience. While its mission is to generated higher revenue than other competitors so
that their market share could be increased.
Aim
McDonald's is aiming to increasing sales five percent till the end of 2019 by offering new
product Cheeseburger.
Marketing Objective
McDonald has object to provide exceptional customer experiences. By providing good
services with good return to its shareholders. Their objective is
To gain higher market share by 5% till the end of June 2019
STP
10
chevron_up_icon
1 out of 19
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]