Marketing Essentials Report: McDonald's Marketing Strategies

This report provides an in-depth analysis of McDonald's marketing essentials. It begins by outlining the roles and responsibilities of the marketing function within the company, including distribution and channel management, market research, financing, pricing, product and service management, promotions, and selling. The report then explores the roles and responsibilities of marketing within the wider organizational context, highlighting the interrelation of different functional areas like administration, production, operations, IT support, purchasing, legal, research and development, finance and accounts, and distribution. The core of the report focuses on McDonald's marketing mix, with an emphasis on the 7 Ps and how they are utilized to achieve business objectives. The report also touches upon elements of a marketing plan. This report offers a comprehensive overview of McDonald's marketing strategies and their effectiveness.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibility of marketing function of McDonald..........................................1
P2 Roles and responsibility of marketing of McDonald:.......................................................3
P3. Marketing mix of McDonald and Burger King to achieve business objectives...............6
P4) Elements of Marketing plan:............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing are essential for running business activities. Theses are activities which are
related with selling and promoting of products which are manufactured by different companies.
Marketing activities are related with making awareness about different products and services.
Effective marketing plans and strategies are used by McDonald for increasing their sales and
earn huge profits. Thus it can be evaluated that marketing activities are related with selling of
products and services to potential customers (Adamson, 2011). Marketing essentials are related
with different theories which are related with real business world. The basic aim of marketing
related with identification and satisfaction of different needs and wants of customers.
Marketing mix are standard systems which are designed to formulate plans and policies
for development and promotion of products. McDonald are helpful in making the business
leaders understand the changes and synergy which are related with core elements. New products
are development by company according to requirements of people so that they can earn huge
profits and provide services to people within its designed territories. McDonald had adopted
various pricing strategies which are helpful in gaining competitive advantages. Various
competitive strategies are adopted in areas of operations, cost controlling policies, maintaining
good relations with customers and adopting various channel for distribution of products and
services.
TASK 1
P1. Roles and responsibilities of marketing function of McDonald
Marketing consists of vital activities which are related with selling and distribution of
products and services. The basic aim of these activities is related with satisfaction of differential
needs and wants of customers by making products available to them according to their choices
(Batt, 2013).
Example: Various offers are available for customers which allow McDonald products at
relatively low prices. These promotional strategies are adopted by company which are helpful in
attracting large number of customers who can purchase their products.
Roles and responsibilities of marketing functions of McDonald are:
Business owners of McDonald revealed that if they want to achieve success by making
money then, they have to make plans which are helpful in effective selling of their products and
services. Different marketing functions which are adopted by cited organisation includes:
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Distribution and Channel management: The distribution policy of McDonald are
related with effective strategies which are helpful in selling food products to people who want to
consume them. Making ideas for business activities are not sufficient. There should be planning
of different strategies which are helpful in distributing products and services to customers.
Distribution outlets can be offline or online. Offline distribution implies that customers have to
go to shops to purchase products (Blythe, 2012). These shops are located where target customers
are more who are consuming the products of cited company. As the economy is growing and
people are leading a busy life so there should be more focus on creating availability of products
online so that customers can easily purchase the products by sitting at home.
Market Research: It deals with gathering information about related products in relation
to target customers, market segmentation, differential needs of customers and availability of
products and services. Target customers means the potential people who will be purchasing
goods and services. Thus different trends are followed by McDonald which are helpful in
capturing new market areas where products can be sold which increasing profits.
Financing: It is an important marketing function is related with arranging finance for
running different business activities. Availability of funds is an essential requirement of business
as it helps them in carrying out business in an effective manner. Company can take financial help
from investors, money lenders, loans from financial capital for advertisement and promotions of
products and services which are related to marketing (Desai, 2013).
Pricing: Pricing is also an essential function as it is related with deciding about prices of
products which are economical and with which customers will get satisfied. Different strategies
related to prices should be adopted keeping in mind the pricing policies which are adopted by
competitor’s organisations. Right prices should be decided for the products as it helps in
retention of customers for longer duration. If the prices of products are too high then customers
will not purchase the products. Right prices can be selected with the help of trials and marketing
research of related products.
Product and service management: After determining the target market and evaluating
prices of products, next step is related with effective management of products and services of
McDonald. This can be effectively achieved by knowing about different wants and needs of
customers and through solving problems which are faced by customers about different services
offered by McDonald. The products of firms should be fresh and they should contain high
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quality in their Fast foods. It is also advantageous in the designing and packing of products
which are helpful in attracting large number of customers and satisfying their different needs.
Promotions: These activities are related with promotion of different products and
services which are offered by the cited firm. These promotional tools are used to communicate
with different customers about products (Dioko, 2016). Different strategies are also used for the
promotion which includes offers, promo codes, discount coupons etc. for gaining attention of
large number of customers. Advertisement is an effective method which is helpful in gaining
attention of new customers and retention of existing one. These strategies are helpful as the
market is changing on continuous basis and proper response should be given to customers by the
use of promotional message about products and services.
Selling: These objectives are related with marketing policies. This the most important
function of marketing. Effective selling policies are needed to capture large market areas
according to different needs. Selling process of cited organisation can be effective when proper
goals are achieved which will satisfy customers. Rights products can be made available to
customers at right place and right time which are demanded by customers.
P2. Roles and responsibilities of marketing of related to wider organisational context
Various factors are responsible in determining the success of organisation. Roles and
responsibilities are crucial in determining different activities in an effective manner. Higher
authorities have the responsibility to make different activities being carried out in an effective
manner which are helpful in achieving the desired objectives of firm (Adamson, 2011).
Different functional areas related with organisation are HR, marketing, finance,
Information technology, etc. All marketing functions which are helpful in performing different
activities are interrelated with each other and thus, they coordinate in performing different
business operations.
Example: If marketing department is responsible for creating awareness about different
products of McDonald then this division has to coordinate with finance department for making
funds available so that plans can be made accordingly through which different activities will be
carried out (Joshi, 2014).
Functional areas of McDonald:
In large organisations like McDonald, it is much easier to identify separate department in
firms according to their functional areas. Every department is responsible in carrying out their
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assigned task which are related with functional groups. Main aim of these departments is to
ensure that all activities are carried out effectively and desired goals are being achieved by the
organisation.
The main functional areas of McDonald are described as below:
Administration Function: These are called as support functions which are related with
all organisations. Senior managers are responsible for caring out different tasks which are related
with monitoring and controlling of different activities. These departments are also known as
backbone of business. They are also responsible for handling business operations, for decision
making about formulation of different plans and policies as well as for the financial analysis of
department. They are linked with other divisions to ensure that proper work flow is there in
different departments.
Production: This department is related with manufacturing of products which are
involved with converting raw materials into finished goods through series of steps in production
process. The main responsibility of this department is to ensure that raw materials are effectively
converted into finished goods ensuring quality standards. Optimum level of inventory and
control mechanism should also be controlled by this department (Kennedy and Parsons, 2014).
Operations: This department is related with designing and controlling of different
operations of McDonald. Different processes that are involved in operations process and
redesigning of products require effective monitoring so that activities will be carried out in the
desired way. Departments that are involved in manufacturing process require proper designing of
commodities to produce the products efficiently. Responsibility for the acquisition of products
and services ensure functional flow of business process.
Informational technology Support: As the activities of business are growing
constantly, information and computer systems are needed to keep proper records of same. This
department serves as the backbone as they are helpful in smooth running of operational activities
which requires computer assistance. Data management programmes should be made available as
they help in the establishment of all the functional areas of McDonald.
Purchasing: This department has the responsibility about procurement of raw materials,
supplies, plants and machinery which are needed for the manufacturing of products of cited
organisation. Top management can make changes in the prices off products which can directly
affect sales of companies to large extent.
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Legal department: This department is responsible for the identification of legal issues
within department. Training and assistance programmes should be designed which are helpful in
making employees aware about the use of different machines and regarding the way in which
work will be completed on time using proper plans. Problems that are faced by customers should
be resolved soon so that customers will be satisfied as company cares for them. Also, legal
documents should be filled which are made mandatory by the government for employees who
are working in McDonald (Kirby, 2012).
Marketing department: This department is related with the marketing of products and
services that are offered by McDonald. Promotional activities are assistive in creating the
awareness about products and services that are being carried out by this department. Effective
marketing strategies are helpful in the achievement of goals and objectives by firms, growth and
development in market shares. Business should be promoted as they are accommodating in
generating sales for the cited organisation. Marketing strategies should be designed for effective
planning programmes.
Research and Development: Innovation in products is needed for every business. It is
helpful for creating competitive advantage for companies. Research and development activities
are needed as they are helpful in developing new designs for the products and in making changes
in existing products according to the requirements of organisations. Up-gradations in
technological advancement are been possible due to different research activities only.
Finance and accounts: This department is responsible for planning, organising and
auditing of finance for company. Financial statements should be generated for the firm. Cash
flow statements are important financial statements for McDonald. Apart from that, cash outflows
and inflows should be properly managed by company. Finance is needed to perform every
business activity and thus, it is one of the important departments for every business organisation.
Distribution: This department is responsible for receiving and delivering orders to
customers which are demanded by customers at right place and appropriate time. If the goods are
not suitable according to channels of distribution then cost which is incurred in distribution
process will go waste.
P3. Marketing mix of McDonald and Burger King to achieve business objectives
Marketing mix of McDonald
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Marketing mix is a accumulation of factors that can be controlled or handled by an organisation
to attract consumers to buy its products. McDonald is the well known brand which provide drink
facility to consumers. To reach that profitable position company faces ups and downs.
Marketing mix are related with defining 7 P which includes product, price, place,
promotion, people , process and physical evidence. McDonald rapidly change their marketing
mix just for more products being added, so present marketing mix is described as below:
Product in the Marketing mix of McDonald : The basic need of every organisation is product,
this is an important element of marketing mix. The company operates in Fast food industry
McDonald has biggest portfolio in Fast food firm combination of many products. Drinks are
divided into fruit juices, diet category, fruit drink, water, energy drinks, cold coffee or tea etc. as
per calculation of Fast food industry data McDonald is number 1 brand across the world. (Lamb,
Hair and McDaniel, 2011). Firm mainly focuses to increase their sales for more expansion of
their business in other countries in order to earn large number of profit. Company rapidly make
some changes in their products because with same taste people get bored.
Price in marketing mix: It is also an another major aspect of marketing mix. After selecting a
product company mainly focuses on price factor, it is an important element of influence market.
Due to combination of wide range of products, price of goods is done according to geographic
segment of market. McDonald follows price leadership strategy, it selects price according to
their competitors price. Various competitors are available of McDonald at market place, they all
apply different pricing strategy but McDonald select the price after analysing competitors price.
Burger King is direct competitor of McDonald. Fast food market is called as oligopoly market
because few sellers are available for a single product. So they set product price on the basis of
mutual discussion.
Place in marketing mix of McDonald : McDonald capture wide area of globe, it is available all
over the world. This product is consumed on very large scale, it is favourite brand of people.
Distribution of product is very important for every organisation. Major aim of McDonald is to
render best quality services to their potential buyers. They follows fast moving consumer goods
distribution pattern for providing products to buyers. In India they capture rural areas and offer
best services to them in minimum price as compared to its competitors.
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Promotion in marketing mix of McDonald : This marketing tool is important for every
business organisation for creating awareness about products at their targeted market. They apply
various promotional strategy to increase demand of product. Demand directly consist of profit.
McDonald generate their advertisement with a positive message, they mainly render a new ad on
some particular festivals. CSR activities are helpful in providing emotional support, consumers
are very much sensitive they attract towards society and its norms. Company uses CSR activities
to attract large consumers for creating extra benefit. Firm allow their suppliers to use different
sales promotional strategies to making high level of distribution in order to get more profit.
McDonald use pull strategy for advertisement and push strategy for promotion (Lane, 2014).
People in marketing mix of McDonald : Human resources are very important of every business
organisation. It is very much crucial to recruit right staff for their functions. McDonald mainly
hire high skilled people in their organisation and provide appropriate training for enhancing their
knowledge. Better skills, knowledge, ability and attitude is helpful in influence consumers
buying decision. McDonald put its efforts for making friendly relationship with their customers
in order to attaining future profit.
Process in marketing mix of McDonald: It is basic and valuable component of marketing mix,
it directly consist system and policies which are conducted in an organisation. McDonald use
innovative process for manufacturing and distribution. These two are major process of an
industry. Firm is mainly concern about distribution of goods and services to their buyers.
Physical evidence in marketing mix of McDonald : It directly consist to packaging of goods, it
is the process in which products and services related to the firm are appear out side. This is
important and additional tool of marketing in which visual layout of goods, charge right price,
recruit right staff, get products at right place are included. McDonald render their products to
providing physical evidence among public (Lovelock, 2011).
Marketing mix of Burger King
Product: Burger King sells large range of fast food products under different brand
portfolio which includes variety of Burgers. They are available at their cited outlets. They
attract their customers through their large range of food products and Fast foods.
Prices: The pricing strategies which are adopted by cited organisations include market
oriented prices in which prices of products are determined according to competitive advantages,
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demand for products and purchasing powers of customers. Pricing strategies of company are
affected by McDonalds who adopt lower prices for their products and thus pressure on Burger
King to cut down their prices. Low prices are adopted as the company has reduced its overhead
cost which are involved in re engineering of products. However company has changed in its
pricing policies as prices are charged relatively higher in overseas markets (Joshi, 2014).
Place: It includes the place from where products and services can be distributed.
Company is focusing on food chains in order to achieve higher levels of market penetrations at
market place. The company does not have any online channels of distributions however its
products are available on different outlet of food chains which are dealing in food and Fast
foods.
Promotion: These activities are helpful in retention of customers towards particular
brands. They mainly target youngsters because these are largest groups who are consuming Fast
foods. Company always choose celebrities who are mostly liked by large population for
promotion of their products and to position its products in minds of customers.
Different channels of communications are used by Burger King for promotion of their
products like advertisement, sales promotions etc. Discounted prices products are offered to
customers so as to attract large number of customers who can purchase their products.
People: Human resources are important for organisation. Burger King adopts cooperate
values that creates importance for employees and emphasised heterogeneity at work place.
Company understand its different needs of customers and they focusing on providing products to
customers which satisfies. Plans are adopted which are helpful in determining effective plans
which leads to success of organisations. Employees are recruited in organisations according to
their skills and knowledge which are helpful in achieving desired outputs for cited organisations.
Process: It involves manufacturing and distribution process. These task are important for
every organisational business functions. The process of manufacturing cans are made at different
place and than these cans are transported to plants rapped with labels and sealed for protections.
They emphasis on providing quality products to customers which does not affect health of
customers.
Physical Evidence: The different websites of company are helpful in providing relevant
information about different products which are manufactured by company. Standards are
maintained for packaging and labelling of company products as it helps in sustainable promotion
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of products. Packaging policies which are adopted by Cola include 3 r reduce, reuse and recycle
of softdrink cans which are manufactured by Burger King.
P4) Elements of Marketing plan:
Marketing plans are developed by every organisations as they are helpful in caring out
different business activities in a planned way. Marketing plans are designed by which goals and
objectives can be effectively achieved for McDonald. These plasns are developed so that
different activities can be carried out in an effective manner which are helpful for organisations.
The are helpful in assigning roles and responsibility so that employees can work towards their
assigned goals. Different strategies are used in formulation of plans and policies which are
helpful in capturing large market shares (Ogunmokun and Tang, 2012).
Marketing plans which are followed by McDonald are:
Customers: Company has determined its target customers by doing marketing research.
They are focusing on youngsters as they are mostly consumers of Fast foods. Products of
company should be helpful in satisfying differential needs of customers. It helps in retention of
customers for long terms in organisations. If the customers are satisfied they will increase shares
for company and company will be able to sustain itself at the market place.
Segmentation: It is a process in which total markets are divided into smaller sub units
which are helpful in easily reaching of products and services to potential customers. Markets are
decided on the basis of age, gender, occupation, sex, religion etc. Dividing the markets according
to these specific groups are helpful in knowing the different needs of customers so that products
can be made available according to their choices (Mihart, 2012).
Targeting: The cited organisations mostly targets young people and children's because
they are mostly consuming their products. Different offers are made by company so that target
customers can purchase their products which in turn will increase growth of the company.
Basic marketing objectives which are followed by coca coal are:
Timely delivery of products and services to their potential customers.
Quality of products should be at top priority.
If customers have any problems they should be solved so that customer is not
demotivated and he does not carry a negative impact about the products that are manufactured by
company.
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Market Penetration: It involves capturing large markets by keeping the prices of
products low at initial level when the products are introduced in market. When the product has
captured larger market areas than the prices of products are made high. This strategy is helpful in
capturing large market as the prices of products are low when they are newly launched in market.
Market development: This strategy is helpful in developing and capturing marketing
areas with expansion of business plans and strategies which are designed for achieving high
growth shares in an organisation (Nguyen and Simkin, 2012).
Differential control measures which should be adopted by McDonald includes:
 They should focus on quality of products and ingredients which they are using in
manufacturing of Fast foods should be of standard quality.
 Cans which act as containers of Fast foods should be of standard so that it does
not have any effects on health of customers who are consuming their products.
 Details about manufacturing and expiry of products should be clearly mentioned
on labels of McDonald products.
CONCLUSION
Marketing essential play an important role in every business organisation. It is all about
learn and understand the basics of marketing, it includes management theories with real world
business industry scenarios. McDonald uses various marketing strategies for attracting large
number of buyers towards their firm in order to attaining high profit. These strategies are helpful
in achieving competitive advantage. Burger King and McDonalds are competitors at market
place, they both apply different strategy for attaining sustainable market position. The marketing
manager play an important role in every marketing function.
They take some crucial and critical steps in order to attaining future benefits. Functions
of marketing are useful for making better production for an organisation. McDonald and Burger
King both are leading brand and like by large number of population. Marketing function play an
important role in decision making process. These functions are helpful in maintaining HR
department, sales, production of an industry. They all uses various marketing strategy to promote
their product, but McDonalds select the price after analysing market.
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is-marketing-2/>. [Accessed on 22 June 2017].
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