Marketing Concepts, Marketing Strategy and Application - Report

This report delves into the core concepts of marketing, exploring its roles, responsibilities, and interrelation with other business functions. It provides a detailed analysis of McDonald's marketing strategies, including situational analysis, marketing strategy development, and the marketing mix. The report also compares the marketing mix strategies of McDonald's and Burger King, highlighting their approaches to product, price, place, and promotion. Furthermore, it examines the integration of marketing with other departments, such as Human Resources, Finance, and Customer Service. The report concludes with a discussion of a marketing plan and recommendations for strategic implementation and control. This report provides a comprehensive overview of marketing principles and practices, offering valuable insights for understanding the dynamics of the fast-food industry and the broader marketing landscape.

MARKETING CONCEPTS,
MARKETING STRATEGY
AND
APPLICATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Marketing and its Roles And Responsibilities..................................................................1
P2. Interrelation of Marketing functions with other business functions ...............................4
TASK 3............................................................................................................................................5
P3 Comparison of marketing mix of McDonalds with Burger King ....................................5
TASK 3............................................................................................................................................1
P4 Marketing Plan..................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing forms most integral function as well strategy through which an organisation
communicates , connects and engages its potential consumers to express value of and ultimately
deliver its products/services. In today's intense competitive market every organization
irrespective of size or ownership are competing for similar market. Thus, role of marketing
function has drastically evolved from just concentrating of product/services into a whole new
holistic approach that assists in producing and managing a desirable competition, reputation and
demand of an enterprise (Al-Ekam and et., al., 2012). McDonald's. is one of the leading fast food
brand belonging to restaurant industry which established in the year 1940. The report will
discuss about various roles and responsibilities undertaken by marketing in context of a firm.
There will be a comparison of marketing mix strategies of two leading brand along with
preparation of detailed marketing plan. Further recommendation for strategies to be adopted
and measures to control it will also be provided.
TASK 1
P1 Marketing and its Roles And Responsibilities
In present market scenario every firm is concerned about qualitative aspects and is opting
for competitive business strategies. In this regard to attain an edge and distinct market position
for a firm its marketing function forms key lead to communicate unique and innovative prospects
of its product/service. Thus, marketing could be defined as consumer centric approach that
involves closely knitted efforts for identifying uncaptured demands of target audience and
innovating new or modifying existing goods to meet those needs (Baker and Magnini, 2016).
With digitalization, customers have been provided with an opportunity to access information
related to firm's product information, its reviews, various vendors available in market and so on.
Thus, this has lead to enhancement in roles and responsibilities of marketing function from
simply promoting products and services to creating brand value, improving relations with
stakeholders, product development and many more.
McDonald's is globally renowned brand that is among world's largest chain of restaurants
in terms of revenue. Although McDonald's deals in wide variety of hamburgers, burgers, soft
drinks shakes and desserts. Firm is having more than 37,241 restaurants in over 110 nations of
the world which is operated and managed by its proficient team of approx 235,000 employees. In
UK McDonald's has around 1300 outlets. In order to maintain its market lead and to successfully
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serves almost 58 million every day McDonald's follows divisional structure in its store
functioning. Under this structure firm maintains various departments that are segregates units on
basis of global hierarchy, performance base and function base. Mentioned below is overview of
marketing process followed by McDonald's: Situational Analysis: This analysis assists McDonald's to grab market opportunities by
identifying the unfulfilled needs and frequently changing preferences of consumers. In
this context McDonald's make use of Management Information System that provides
essential information related to micro-macro environments, trends, market statics etc.
This enables firm to bring necessary modification in its present products/services or to
introduce an entire new one (Campbell and Martin, 2015). Marketing Strategy: Under this strategy firm identifies its target market by fragmenting
market population on basis of certain factors such as age, income, location and so on.
Analysing this marketing managers of McDonald's also finds out about prevailing trends
and preferences of people that is ascertain through situational analysis that enables firm
to identify its target audience effectively by adopting best appropriate marketing strategy. Developing of marketing mix: This is third step of marketing procedure that includes
formulating most competitive and attractive strategy by combining 7p's of marketing mix
i.e. product, price, place, promotion, people, physical evidence and process. This assist
firm to control its business and modify its strategies in accordance to frequently changing
taste, preferences and market dynamic.
 Implementation and Control: It is the last step that directs managers of McDonald's to
accommodate changes and to regularly monitor performance of various strategies and
plans to ensure that are meeting consumers requirement consistently.
Mentioned below are most prominent roles and duties that are performed by managers of
McDonald's :
 Market Research: This is most key role and responsibilities that aid McDonald's its
growth and sustainability. The essential task of managers are to periodically conduct
market research about emerging market trends, to ascertain competitor's strength and
weakness, to gain knowledge about latest technological up gradation introduce and so
on. Thus, by gathering and analysing this information top management of McDonald's
undertakes alteration in its strategies related to products, procedure, sales promotion etc.
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or introduce innovation in this areas. This helps company to get an edge over its rivals by
offering foods and beverages that readily fulfils its consumer's demand.
 Product and service management: It is one of most critical function undertaken by
marketing unit of McDonald's that involves effectively handling numerous activities
related to obtaining, processing and quality and price improvement of products /services
(Dibb and Simkin, 2013). This helps firm's to bring necessary additions in its food menu
as per consumer's demand or to stop producing certain food items that are not demanded
or ordered by people frequently. Further, McDonald's pay immense attention in
enhancing its customer service by making use streamlined distribution network that
results in quick product delivery. Pricing: Setting right price levels is yet another important responsibility for marketing
managers of McDonald's. It forms crucial function as success of firm largely depends
upon the price offered by company in relation to quality of its goods /services that are
been offered by it. McDonald's applies combination of various pricing strategies that
includes bundle pricing, psychological pricing and promotional pricing strategies. This
assists firm in setting price levels that are affordable and at the same time is competitive
in reference to its leading rivals such as Burger King.
 Promotion: Promotional activities is one the most essential function that enables firm to
communicate benefits of its products/services and their distinct features to its potential
consumers. McDonald's being one of the world's largest chain of restaurants spend huge
amount on its product promotion where in it marketing department make use of several
media to promote its brand. Mc Donald's promotional strategies includes use of electronic
media such as TV ad, ,display media comprising billboards, online and social media like
Facebook, Instagram and print media including newspapers etc.
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P2. Interrelation of Marketing functions with other business functions
Marketing forms strategic functional unit that sustain and undergrid several business
activities such as conducting marketing research, preparation of marketing plans, budgets,
product, process or technological modification and innovation etc. . However it is essential to
coordinate marketing components and decisions taken to be in collaboration with other functions
of firm too. The two key internal variables that influences interaction of marketing unit are
resource dependencies and to ensure consistency of objectives to satisfy the end customers.
Thus, managers of Mc Donald's efficiently maintain work coordination with other functional unit
in order to ensure that quality and efficacy could be achieved in all decisions related to price,
products, promotion, process etc. Mentioned below are depiction of interrelation of marketing
division of Mc Donald's with other units”
Marketing and Human Resource Department : The main areas of concerned for HR
department is to hire, train and manage appropriate personnel in an organization. Mc Donald's
being customer oriented company rely immensely on its employees performance who forms
face of company as they directly interacts with customers (Draelos, 2010). Thus Marketing
managers of McDonald's works in close collaboration with HR Department and provide a clear
job description that assists HR managers to hire proficient candidate with right qualification,
presented at right job profile available at right time whenever required. Further both these
departments also work in coordination during screening process, in formulating training program
and incentive systems.
Finance and Marketing department: Marketing plan formulated by the marketing
managers of McDonald's involves key aspects like budget formation, profitability analysis that
requires knowledge related to concept of ROI,Profits, ROE etc. Further many marketing
strategies involves undertaking investment decision by using various financial tools (Functions
of marketing, 2018). Thus, Financial department of McDonald's aid its marketing unit so that
most profitable decisions could be taken that involves minimum risks. Also, funds required for
undertaking research, sales promotion etc. are also provided by finance unit along with proper
budget that helps marketing team to optimum utilizes its finance without any wastage.
Customer Service and Marketing Department: Many industrial and consumer products
requires pre and post purchase services and thus play vital role in retaining loyal consumers and
to satisfy potential ones who are buying firm's product for the first time. Thus, customer service
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department of McDonald's tries to satisfactorily solve queries and issues of its customers
within reasonable time. This aids marketing department as inputs generated from consumer
complaints assist managers to work on redressing those aspects. Customer care department
further works together with marketing unit and provide necessary suggestions for product,
service, process modifications or introduction of new ones in same areas (Eslinger, 2014).
Thus, interrelation of marketing department with other marketing functions enables form
to effective in taken various decisions related to new product development, modification in
existing policies, procedures or product or launching new ones. Also, it assist firm to gain edge
over its business contenders by developing a enhancing proficiency of its workforce to work in
close coordination with other departments to provide most authentic solution to customer's
queries and problems thereby gaining customer satisfaction. Further collaboration with other
departments also assist in developing products that are most appropriate for catering needs and
desires of its target audience.
TASK 3
P3 Comparison of marketing mix of McDonald's with Burger King
Marketing Mix could be described as firm's strategy where in its places its customer in
centre of focus and design and create a perfect blend of its 7P's in a manner to be competitive
and attractive enough to gain attention of its target audience and induce them to buy its products
(Marketing Mix, 2018). McDonald's being one largest and leading fast food provider give critical
emphasis on formulating a smart marketing mix strategy so as to maintain its market share and
brand position. It also enables company to be more productive and generate higher profits by
being innovative in its product range. Mentioned below is a comparative analysis of McDonalds
with its leading contenders Burger King:
Basis McDonald's Burger King
Product McDonald's being world's
largest chain of fast food in
terms of revenue. It offers a
large variety of different types
of hamburgers, chicken
products, breakfast items,
Burger King is one of the
leading fast food company in
UK that offers a variety of
menu ranging from snacks to
full meals for various age
groups. Firm mainly deals in
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cheeseburgers, milkshakes, soft
drinks,juices, hot chocolates and
desserts (Hsu, 2011). Also in
recent time company has add
ons salads,smoothies, fish wraps
and fruits. McDonald's is one of
the few brands that is known for
making modification in its
products by as per local taste,
cultural identity and preferences
of its customers.
variety of burgers, French
fries, milkshakes, soft drinks
etc. However with recent times
company has added on salads,
veggies for its diet conscious
customers and desserts
comprising Oreo shakes,
cookies and ice creams.
Company also provides many
combos for value meals and
kids meals to compete with its
leading contenders.
Price In order to be competitive
McDonald's make use of
combination of pricing
strategies. Company make use
bundle strategies that involves
providing various combos
involving meals with other
products. To induce its
consumers to by more company
make use of psychological
pricing by wherein it odd prices
little less than round off. This
makes products appear
affordable to consumers.
Furthermore McDonalds implies
promotional pricing strategy
where in it offers various
discounts on certain products
and combination of various
Burger King make use of
bundle pricing and market
oriented pricing strategy. The
main strategy behind this is to
provide quality products with
taste at affordable prices so as
to remain competitive with its
rivals (Lancaster, 2010).
Further firm;s value added
meals like combos assists it to
earn more profits.
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menu items packed together.
Place McDonald's is having more than
37214 restaurants in more than
110 nations (Lane, 2014). The
most prominent feature of this
chain is that it follows various
different formats such as Mc
Derive, Mc Express, Mc Cafe
etc. Also it offers facilities drive
through services such as indoor
and outdoor seating. Company
also pay critical attention of
maintaining high quality
standards and strictly follows
hygiene norms.
Burger King operates more
than 15243 outlets in over 100
nations. The most peculiar
feature of this company is its
strong global supply chain
management that helps in
quick delivery of its products
to its end customers. Further
company make use mobile
apps and websites that assists
its customers to conveniently
place their orders.
Promotion Being largest chain of fast food
restaurant McDonald's uses
aggressive marketing where in
it spent huge amount on its
product promotion. In this
respect firm make use of print,
display and electronic media
comprising TV commercials,
billboards, newspapers ads etc.
Firm also make use of online
media and social media apps
such as Instagram, Twitter etc.
to promote its various
campaigns like GoodToKnow
campaign, Pay with lovin’ Super
Burger King to be competitive
and to gain an edge over rivals
it promotes its brand through
various media. This includes
company make use of
electronic, display, print and
online medium of
communications. For instance
magazines and newspaper ads,
hoardings, mobile apps and
social media websites like
Twitter etc. Also firm relies on
personal selling for promoting
its brands by encouraging and
suggesting consumers to
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Bowl campaign etc. to reach out
large target groups in cost
effective manner. further firm is
associated with various sports
events like FIFA world cup,
Olympic games etc. that
provides international platform
for its brand promotion. Also
McDonald's have signed deals
with famous celebrities like
Justin Timberlake, Venus
Williams, Michael Jordan to
undertake celebrity endorsement
approaches.
purchase more from menu
other than what they have
already ordered (Malhotra,
Birks and Wills, 2013). By
applying public relations the
McLamore Foundation
operated by firm gives
financial assistance e and
scholarships for various
educational programs. This
benefits firm to develop trust
of its customers in the brand.
Further company also
provides various coupons and
other discount offers through
its websites. Other promotional
strategies adopted by Burger
King for brand promotion is by
organizing and sponsoring
various international events,.
Process McDonald's invest considerable
amount in its Research and
Development to enhance its
operational process. Company
has automated almost all its
operations and make use of
quality techniques like HACCP
and GMP to ensure food safety
and high quality hygiene in its
food preparations process,
location and ingredients
Burger King employ experts
to design its process to operate
internationally. By
maintaining efficacy and
quality in its service procedure
firm is able to maintain its
products tastes, work culture,
supply chain, consumer
satisfaction and to successfully
introduce new product
variations in company's menu.
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(Martin, Campbell and
Harmsen, 2014). Also it
implements sophisticated
equipments for its food
processing, packaging and
distribution. McDonald's have a
streamlined supply chain
network that assist firm in fast
home delivery services.
Burger King also known for
modify its product as per the
taste, culture and country of
its customers.
Physical Evidence McDonald's being world's
largest and most renowned
brand firm has developed an
everlasting impression on its
consumers mind. Quick service,
quality and hygienic food, clean
and transparent process etc. are
some elements of physical
evidence of McDonald's.
Further, the bright colours used
in logo, 'M' logo, Ronald
McDonald the clown character
also enhances physical presence
of firm. Further website of the
company is also quiet user
friendly. The restaurant is well
known for its clean and hygiene
environment
Burger King is one of the
leading fast food chain that is
evident from its physical
presence in more than 100
nations. In add on to this all its
restaurants have having
modern features, clean
environment that induces
customers specially family to
visit the restaurants . Also firm
pay special attention to
location of its restaurants that
is keeps to be at prime areas to
capture maximum target
audience.
People McDonald's operates a
proficient team of more than
235000 employees across its
Burger King employees more
than 34248 employees across
its 15243 restaurants.
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37214 outlets round the globe.
McDonald's pays critical
attention in its staff training
where in it trains almost 55000
employees every year and invest
around £10 million in these
programs. Also in recent time
company has increased average
hourly wage of its employees
from $9.01 to $9.90 which is
further to be raised to $10.
Further company along with
training also provides
certification courses in food and
labour cost, conflict redresses
and other areas of expertise to
its employees. Also company
implies various performance
appraisal methods based on
rating system and follow
democratic leadership style etc.
encourage its workforce to be
participative in decision making
process by providing inputs,
creative ideas, opinions etc.
Company immensely focuses
on its people both customers
and employees. By
maintaining quality and
affordable price levels the
customer satisfaction ratio of
Burger King is far much more
higher in comparison to other
fast food outlets. All these
efforts assist firm to add on to
its customer's satisfaction that
ultimately increases it brand
image and reputation In
reference to employees firm
provide various training
opportunities to its staff so as
increase core competencies of
its employees. Further to
motivate its employees
company applies various
reward system such as best
performers of week, appraisal
every month and so on.
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