Marketing Essentials: McDonald's Marketing Plan Evaluation Report

This report provides a comprehensive analysis of marketing essentials, focusing on McDonald's as a case study. It begins with an introduction to marketing concepts, including the role and responsibilities of the marketing function, and then delves into the application of these concepts within the context of McDonald's. The report examines the relationship between marketing and other departments, such as human resources, operations, R&D, production, and finance, highlighting their interdependencies. A significant portion of the report is dedicated to exploring McDonald's marketing mix, including product, price, distribution, and promotion strategies. Furthermore, it evaluates a basic marketing plan for McDonald's, assessing its effectiveness in achieving business objectives. The report concludes with a summary of findings and recommendations for future marketing strategies. The report also includes an analysis of external environmental factors that impact McDonald's performance. Finally, it discusses the importance of marketing information management systems (MIS) and their role in effective decision-making. The report covers key marketing concepts such as consumer needs, wants, and demands, as well as the impact of current and future trends on marketing activities.

Marketing Essential

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Role and responsibilities of marketing function.....................................................................1
TASK 2............................................................................................................................................5
P2 How responsibility and role of marketing relate wider company context..............................5
TASK 3............................................................................................................................................6
P3 Compare the ways in which different organisations apply the marketing mix to the
marketing planning process to achieve business objectives........................................................6
TASK 4..........................................................................................................................................10
P 4 Produce and evaluate a basic marketing plan for the chosen organisation.........................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is a action of promoting as well as selling commodities and services to buyer
according to their requirement. It also includes advertisement, market research, sales material or
many more. Management of the company has develop strategies, plan in order to run entire
business activities appropriately. Marketing manager has conducting market research to identify
clients needs, preference, attitude, motivation factors, perception behaviour and many more
accordingly firm are produce goods and services to satisfy consumers demand effectively. In this
assignment choose McDonald's company in order to analysis impact of marketing essentials
elements on organisation performance as well as productivity (Dibb and Simkin, 2013).
McDonald's is a fast food firm that was established at America in the year 1940. It was introduce
by Richard and Maurica McDonald. It is a world largest fast food restaurant chain on the basis of
their revenue. They are serving around 69 million clients daily from 36900 outlets in over 100
nations. Management has make contract of franchisees to enter into new market segment. Here
approx 375000 employees are working and generate total income of US$ 4.686 billion in 2016.
This report covers role of marketing and its interrelation with other department of an
organisation. It also includes marketing mix of McDonald's and its marketing plan.
TASK 1
P1 Role and responsibilities of marketing function
Marketing: It is a process firm has identify customer's needs accordingly develop product
in order to create value for clients and build strong relationship with potential consumers to
capture worth for buyers in return. Marketing procedure has follows some step that are detail as
follows:
 Marketing manager has identify consumers needs and wants by organising market
research activity (Lamb, Haia and McDaniel, 2011).
 Through this, they are know which kind of goods may produce like in size, colour,
features etc.
 They are design a customer – driven marketing strategies in order to capture large
market share in current industry. Through this, firm are able to provide satisfaction to
potential consumers.
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 Management has develop integrated marketing system thus help to deliver superior value
to buyers in an effective manner. Through this, they are able to provide higher quality
services to their clients effectively.
 Marketing manager has build profitable relationship with their consumers by this they
are create buyers delight value to get satisfaction in long period of time appropriately. In the last, organisation has capture value for their market buyers thus help to create
profits and consumers equity in long run.
Needs, Want and Demand: According to marketing, needs can be define as consumers
state for particular goods and services in order to get specific benefits, whether it is a function of
emotional state. Wants is a desire of particular product to satisfy that needs (Mettler and
Guiberteau, 2011). Demand is a specific goods that has capability to full fill need effective so
that for this individuals has ability as well as willingness to buy that item.
Current as well as future trends: In present market environment, marketing has ability to
change to whole industry trends effectively. Marketing manager has conducting market research
to identify future needs of clients. Through this information, firm conducting forecasting related
to sales, funds, resources, inflow, outflow, inventory and many more thus help to predict future
trend effectively. Each one company used marketing tool in order to increase awareness about
commodities among potential consumers in an appropriate manner.
External environment impact on marketing activities of McDonald's: There are several
external factor are available which are create positive as well as negative impact on an
organisation performance, productivity. Some external factors political, social cultural,
technological, economical, legal, environmental etc. McDonald's has run their business activities
in 100 nation so that each one elements has create impact on their performance (Chiego, 2018).
For example, in India beef has been ban by government so that McDonald's can not able to sell
their product that made by this. In replace of this they develop new food allutikki burger
according to their need. So that, social cultural environment of that country may affect
organisation goods list and many more others things overall their performance should be
effected.
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Illustration 1: Seven function of marketing
(Sources: Function of marketing, 2017)
Product: Product development is a most important function of merchandising
management. Marketing manager has conducting market research in order to identify clients
preference, attitude, motivation factor, needs, demands, perception, behaviours, disposable
capabilities and many more accordingly they are develop goods and services that help to enhance
customer's satisfaction in long period of time. Through this, enterprise are capable to achieve
objectives as well as goals effectively and gain sustainability in long period of time.
Prices: In order to get competitive benefits, management of McDonald's has develop two
kind of pricing strategies low cost and high cost thus help them to sell their product and services
large number of customers segmentation (Lovelock, 2011). Through this activities, firm are able
to attracting many individual toward their goods. Mcdonald's has offer services commodities
with different prices like Double Filet – O – Fish $ 4.79, Big Mac $ 3.99, Priminum chicken
bancon clubhouse $ 4.49, Premium chicken meal $ 6.49 and many more.
Distribution: Mcdonald's has enter new nation with franchise model so that they are
easily sell large number of product to big market segment. Through this channel organisation are
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able to enhance customer's satisfaction in long period of time effectively. Mcdonald's has poor
distribute relationship so that some time they face losses resulted reduce market share as well as
profitability. This kind of corporate practices has create firm negative image in the mind of
customers resulted reduce brand value as well as image at market place. So that, it is very
important for the company develop effective strategies in order to solve this issues effectively in
order to shape their image as well as enhance clients satisfaction.
Promotion: There are several method are available to promote product and services. It is
a process to spread information among consumers effectively in order to make brand
recognisable. Management of Mcdonald's has develop strategies in order to promote good
effectively thus help to increase awareness about product and services features, colour, size,
prices and many others things (Lipsman, A. and et. al., 2012). Promotion has two kinds paid as
well as non paid and firm has used both techniques in order to attracting large number of
individuals toward organisation. Some paid mode of promotions which are used by company are
social media, newspapers, books, magazine, sponsorship, billboards, hoarding, TV
advertisement, internet etc. Non paid promotional techniques are organising charitable function
which create positive image of the company in buyers minds.
Selling: Selling is a action to sale something to customers with the hope of monetary
value. McDonald's has selling their product only two mode at store and online, both has very
attractive method to sales product and services effectively to large audience. Management has
provide training to their employees to deliver quality of services to their buyers thus help to get
higher customer's satisfaction in long period of time appropriately.
Finance: Finance department has very important for each one division as well as whole
organisation because they are provide fund to each section for run their business activities
appropriately. Finance manager has prepare budget, financial statements, forecasting, fund
allocation, resources, cash inflow and outflows, make annual report or many more (Brassington
and Pettitt, 2013). Mcdonald's has run their whole business activities effectively when their
financial management is very strong.
Marketing information management system (MIS): It is a computer software that help
organisation to manage all information related to each one department like sales, production
quantify availability, vendor outstanding and many others. That help to manage all data
effectively and interpreted that if firm wants thus help management to take right decision for
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future events. It is related to each one selection of enterprises so that in present modern era it
save time, resources, manpower efforts etc. of the company thus help to achieve goals and
objectives in given time frame appropriately.
TASK 2
P2 How responsibility and role of marketing relate wider company context
Marketing manager has conducting market research to analyse clients preference,
attitude, behaviours, perception, needs etc. accordingly they are develop commodities and
services thus help to achieve higher customer's satisfaction as well as market share. Management
of Mcdonald's has develop strategies and plan in order to produce high quality goods for this
they are provide training to their staff members thus enhance their skills, knowledge and may
others. So that, all functional department of an organisation has interrelated to each others and
work together to achieve common aim and target appropriately (Durmaz, 2011). Some
functional department and its relationship with marketing are explain as follows:
Marketing function relationship with human resources: Marketing department has
needed employees those has capabilities to sale product and services. Human resources manager
has hire candidates according to requirement of marketing management and also providing
training to existing employees or new applicants related to their work effectively. Through this
activities, staff members are able to deliver higher quality services to their potential customers
and close the deal very effectively in give time frame. So that, both human resources division
and marketing department has interrelated to each others effectively.
Marketing relationship with operational function: Operational function has completing
several work into work place like manage inventory, inflows, outflows, vendors accounts and
many others. Marketing department has work like sales, advertisement, promotions etc. For
example, in Mcdonald's buyers has came close to counter and make order, employees has offer
them product according to their needs and after the all function are done by operations team they
are see clients order are ready or not, cleanness of outlet and many more (Mihart, 2012). So that,
both marketing as well as operational division are interrelated to each others effectively.
Marketing function with R & D department: Marketing manager has organising research
program at market place to identify customers needs, demand, competitors strategies, switching
cost of their product, attractiveness of rivalries goods, future trends etc. This all information
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manager has provide to research and development division accordingly R & D section has
develop new innovating product and services. Through this innovative goods, enterprise are able
to achieve goals and objectives in limited period of time effectively and compete their market
competitors appropriately to get sustainability in long run. So that, both R & D department as
well as marketing function has interrelated or inter - depended on each others.
Marketing work relations with production department: When R & D department has
develop new ideas to product them production department should be work on it and convert idea
into reality. Marketing manager has also provide some instruction to them related to size, quality,
colour, design etc. accordingly manufacturing unit has work to produce goods and services
effectively (Lamb, Hai and McDaniel, 2011). When sales person sell that product at market and
receive feedback from their clients then that all information has given to production team and
accordingly they make changes in the commodities so customers get higher satisfaction and
value of their money. Production unit and marketing department has work together in order to
achieve common goals of Mcdonald's in limited period of time.
Marketing relationship with finance department: Marketing division needed funds for
several uses like promotions, advertisement, market research, strategies development to compete
competitors effectively etc. So that finance department has make budget for each one activities
and forecasting future one so that if money are needed then they provide to marketing
department. So both division has interrelated to each others effectively and achieve their
common target in given time frame.
TASK 3
P3 Compare the ways in which different organisations apply the marketing mix to the marketing
planning process to achieve business objectives.
Applying marketing mix in a business is the key to success. It is actually the mixture of
ingredients which includes all aspect of planning, promotion, packaging, selling etc. Depending
on the type of industry, we can classify the product and marketing manager can select what
should be done in order to optimize the strategy and obtain the best result. Conditions such as
demography, population type, market direction are also very important for the success of the
product. It is all about getting the right discount at the right time in front of the right person at the
right moment (Nguyen, Simkin and Canhoto, A.I. eds., 2015). But according to a research 25%
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of the marketers don’t follow these strategies. Even they don’t know what will be the outcome of
their work.
So in order to get success in the market, one must focus on all the controllable elements of
the market and he should have the knowledge of all seven p’s and other strategies of the market.
Besides, there is a change in the existing p’s of the market and they are even extended to 8. So a
marketing manager should be aware of all the 8 p’s.
We will compare here the strategy of McDonalds and KFC and will understand the 4 P’s
of both the company. These four P’s are product, price, promotion, and place.
SERIA
L NO.
7 P’S OF
MARKETING
MCDONALDS KFC
1. PRODUCT Mc Donald’s care for the
customer. So it has a different
product line for every region.
For example in Australia
McDonalds have different
burger categories as
compared to countries like
the USA. They deeply care
about the sentiment and
religion of local people and
do not release a product
which would defy the local
people
KFC is famous for its non-
veg product range. This can
be counted as one of the
weaknesses of the KFC. But
KFC is trying hard to capture
the market by releasing
product on the basis of the
regional demand. To
increase sales, KFC has
introduced around 300 new
product line n different
markets worldwide (Moradi,
Aghaie and Hosseini, 2015).
2. PRICE McDonald’s core products
include food burgers, chips,
fries etc. their product is very
cheap and they maintain their
quality by tying up with
brands like coca cola. Their
menu includes many types of
Due to various inventions
and new food menu, KFC
has increased its sales to 23
billion dollar. KFC has a
target population of youth
and middle-class people.
Previously the price of the
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combos which make it easier
for them to increase their
sales.
KFC products was high but
they were reduced due to the
demands and proper market
study.
3. PROMOTION McDonald's has a very
targeted promotion. We can
take the example of the happy
meal which is a box made for
children. Beside this,
advertising in T.V channels,
door drops, loyalty scheme
etc. McDonald's even has
hoardings placed at all major
places so that they can even
get noticed at the place where
people tend to pass by
(Lehmann and Bengart,
2016).
Promotional activities of
KFC are in every media. We
can take the example of
social media platform to
broadcast media and
billboards. There are
taglines like 'Finger Licking
Good' and ‘KFC So Good'
and these are always
included in the promotional
activities.
4. PLACE The prime objective of
McDonald's is to open a store
in every big city of the world.
MacDonald’s also offers the
drive in service which is very
unique and here the
customers don’t have to step
out of his vehicle to place or
pick his order. They have
almost 40000 food stores of
McD all over the world which
makes it one of the largest
global chain.
First KFC restaurant in Utah
in 1952 and at that time the
founder realised the
importance of global
business. The distribution is
based on the franchise and
online based service. By the
end of 2018, KFC had nearly
20000 restaurants all over
the world.
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5. PROCESS It is very important for a large
chain like McDonald's to
maintain homogeneity in their
product. So the process they
follow is very unique and
standard. Even at the places
where strict regulations are
there in the market, company
try to follow the rules and
culture of the country and
even maintain the brand
equity.
KFC is a subsidiary
company of Yum! Brands
which also runs taco bell and
one of the largest pizza chain
i.e. pizza hut. The outlets of
the KFC are either company
owned or franchise based.
The outlets offer to drive
through as well and dine in
and take out options are
always available
(Siricharoen, 2013).
.
6. PEOPLE The quality, service, value
and cleanliness is the driving
factor of the food china
delivery company. Every
employee in the company,
like a manager, inventory
keeper etc all have a uniform
dress which gives a good
appeal.
The is thorough checking of
the person who is applying
for the franchise of the KFC
and it is done to ensure that
the person knows what
customer needs. KFC is also
involved in the various
social activity to create an
impact on the group of
people living in the society.
They hire people from all
genre. They have a person
with hearing disability, etc to
build a strong community.
7. PHYSICAL
EVIDENCE
It is the impression outsiders
have for the company. It is
greatly affected by the staff
members, interior, team and
Their interior standard is
fixed which is given by the
company. Though they bring
changes on the basis of local
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cleanliness. The company
makes it sure that their
ambience meet the demands
of local culture and they have
transparency in their process.
requirement they have a
standard design which makes
them easily recognisable. It
also helps them to create a
positive influence on the
customer satisfaction It has
office executives and
research and development
facilities which makes it a
world-class organization..
In his fast-changing world, volatility is the biggest factor of downfall for every company. So to
concur it greater need arise which is to reduce the volatility and for that one has to develop a
proper marketing strategy. Both the companies follow a marketing plan which is very vivid and
on the basis of local requirements. This is why they are still one of the biggest food chain
industries in the world.Without the understanding of the environment where the product is being
launched, it is impossible to develop a winning strategy (Chiego, 2018). The companies which
are continuously growing follow the simple notion of studying the market first before launching
their product. They do prior auditing and prepare for every outcome. And as long as an
individual continues to work for the successful organization, he will continue to develop the best
plans.
TASK 4
P 4 Produce and evaluate a basic marketing plan for the chosen organisation
It is very important to devise a marketing plan for this industry because it will play a key
role in the success of the industry. It is the role of marketing manager to understand the needs
and demands of the local people and devise a plan according to that. Here we will study the
marketing plan of McDonalds Company.
MacDonald’s was launched in 1940 and it was earlier operated by Richard and Laurie
MacDonald in California, USA. Their biggest selling point was hamburger. MacDonald is
world’s largest chain by revenue and serves product in over 100 countries.
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