Marketing Essentials Report: McDonald's Roles, Mix, and Plan

This report provides a detailed analysis of McDonald's marketing strategies. It begins by outlining the roles and responsibilities of the marketing function within the organization, emphasizing key aspects such as product development, selling techniques, pricing strategies, promotional activities, and the utilization of a marketing information system. The report then explores how marketing functions interrelate with other departments, including operations, finance, human resources, sales, research and development, and IT, highlighting the importance of interdepartmental coordination. A significant portion of the report is dedicated to comparing different ways of using elements of the marketing mix, providing insights into how McDonald's utilizes these elements. Finally, the report concludes with a basic marketing plan, summarizing the key strategies and objectives for McDonald's marketing efforts.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function..................................................................1
P2 Roles and responsibilities of marketing relate to organisational context..............................3
TASK 2............................................................................................................................................5
P3 Compare ways to use elements of marketing mix.................................................................5
TASK 3............................................................................................................................................8
P4 Basic marketing plan..............................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
In this modern era, marketing is considered as a significant tool. It is a broad concept of
promotion and selling activities of services and goods in order to reach at target customers. It
includes different activities like for an instance understanding marketplace, creating harmonious
relationship with consumers, analysing the needs of customers, developing a new strategy from
conducting research and providing goods to buyers on the basis of their needs and demands.
Each and every business firm is trying to adopt and use an innovative or creative approach
regarding the marketing strategy and they engage in creating a better as well as harmonious
relationship with consumers in an effective or better manner (Al-Ekam and et. al., 2012). In this
present business environment, awareness of business firms regarding the marketing essentials is
higher. This present business report is based on McDonald’s. It is a fast food restaurant which
provides hamburgers, French fries, cheese burgers, soft drinks and many other food items.
McDonald’s is one of the largest chains of fast food restaurants in all over the world. In the
present report, roles and responsibilities of marketing function will be discussed. The comparison
among marketing mix of two business firms will be shown here as well.
TASK 1
P1. Roles and responsibilities of marketing function
Marketing function is the most significant factor of a business firm to provide better
opportunities to business organisation with its targets. Under marketing function consists various
responsibilities of company which are remain responsible for development of firm. Marketing is
a crucial activity which McDonald’s firm optimizes for interacting with a large number of
people. It is helpful for company in making the purchasing decision better and also, to maintain a
positive image in front of society. In addition to this, employer includes different strategies on
the basis of market consequences or condition. For meeting with the decided goals, it is essential
for the marketing to perform its roles and responsibilities in a better manner (Arguello, 2013).
There are some of the roles and responsibilities of marketing related functions given as below:
Product- It is a necessary asset of a business firm which is manufactured on the basis of
expectations or demands of customers. Better quality of goods are helpful in attracting a large
number of consumers towards an organisation and enhancing sales. In regards, it is the duty of
McDonald’s to manufacture or provide better quality of services or products as per the needs and
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preferences of consumers. As McDonald’s is a fast food restaurant and it provides hamburgers,
cheese burgers, desserts, French fries and many other eatable products (Bačík, Štefko and
Gburová, 2014). This firm continuously takes feedback from its clients regarding services of
food items and make changes on the basis of their thinking or perception. It is essential that firm
should adopt new trends of the market.
Selling- It is another role of the marketing department of an organisation. In this, data or
information is gathered with the help of different tools through marketing manager to develop an
effective strategy regarding enhanced sales of goods. The main focus of marketing manager of
McDonald firm is to enhance sales and generate a high profit level. Focus of manager on
handover process to provide final goods to consumers which can satisfy their needs and
demands. It is the responsibility of manager to analyse different distribution tools and select an
effective or better one to make its goods available at market place. To enhance the sales, this
company used a cost effective promotion channel. Different tactics are applied through a
marketing manager so that consumers can purchase the food items of McDonald’s in an easy
manner.
Pricing- It impacts on the purchasing power of consumers. If the cost of goods will be
more then consumers will buy the same less and vice versa. So, to increase sales, it is necessary
for the business firm to prepare better pricing strategies and provide goods at reasonable cost. It
will be helpful in generating higher profit in a short time period (Baker and Magnini, 2016).
Right cost of goods help in attracting a large number of people to purchase.
Promotion- IT is a better tool or technique to aware people about the goods and services
of an organisation. It is the main function of marketing and in this, there is a need of marketing
manager to examine different tools or techniques of communication and then select the best one
to promote products of firm in an effective or efficient manner. With the help of this, company
can aware people regarding specifications, features of services or products in easy way. There
are many promotional tools which are used by organisations and these are sales promotion,
public relation, personal selling and publicity. In addition to this, McDonald’s uses publicity and
sales promotional techniques of promotion or connect with people. The primary motive of this
promotion function is to develop more demand of products of firm.
Marketing information system- This system is prepared to support the decision making
of marketing. In this, manager of marketing function gathers the more relevant or accurate
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information regarding interest, actions, needs and behaviour of consumers. Marketing
information system gives better opportunities to the manager to store information of consumers
and take better decisions regarding it. Under MIS, data or information of marketing is formally
collected, analysed, stored and then distributed to managers according to informational
requirements on continuous basis.
Financing- It is known as the most necessary asset of business firm. For any kind of
activity, firm needs more funds in a right manner and at a correct time (Cleverley, 2017).
Manager of McDonald’s marketing department prepares plan and determines necessary
resources needed to be carried out. This gives a better opportunity to the business organisation to
provide better services to a large number of consumers. So, it is necessary for the manager to
divide budget or amount on the basis of business related activities.
Distribution- It is helpful to transfer the products and services from one place to other
and handover the final goods to consumers. It is essential that firm should select a better channel
of distribution. The distribution channel of McDonald’s is better in comparison to other firm and
cover all urban areas to sell its goods. In this, marketing department manager is liable to evaluate
different distribution channels and deliver good quality of products at the right time and at
correct place. It will be helpful in creating a positive impact on the minds of consumers in an
effective manner.
These are the main roles and also responsibilities of marketing related functions of
McDonald firm and it is necessary for this firm to carried out all these functions in a proper or an
effective manner. From this company can increase its sales and generate the more revenue.
P2 Roles and responsibilities of marketing relate to organisational context
Marketing department of any business firm work on developing good or harmonious
relationship with consumers and also satisfy their needs in an effective or better manner (Desai,
2013). Under the concept of marketing includes promote, sales, marketing and deliver of
products or goods in an effective manner. In order to assessing necessary activities or elements
for each firm, it aids in enhancing sales of services or goods of firm. In this, it is necessary that
manager should conduct the better research in regards to collect relevant data and compete with
strong competitors in a better manner. The other departments of firm are related with the
marketing function. An interrelationship of the marketing function with the different department
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of McDonald should be regard through manager in order to develop effective strategies is given
below as above:
Marketing function with operation function- Manufacturing process of products is
implement through the operation department of an organisation. It is the duty of operations
manager to manage the personnel and raw materials in a better manner (Dudu and Agwu, 2014).
The main work of operation department is to develop services or products and in this includes
planning, organising, controlling and coordinating of all resources required to produce services
and products of firm. In order to making business successful, there is a need to firm to develop
sound coordination between marketing and operational department of McDonald. Better
coordination is helpful in add quality and value in services or products of firm in an effective
manner.
Marketing function and finance function- The main function of finance department is to
arrange funds for the marketing department or their activities. This function develops budgets
and also allocate finance to different departments of an organisations. Without money, marketing
department can not do its any activity. In addition to this, it is a duty of finance function to
provide money for market division in context to work on the marketing activities in an effective
manner. As the marketing function carried out the effective promotional activities so for this it is
necessary to allocate adequate funds for achieving the business aims and goals with in a specific
period of time.
HR function with marketing function- Human Resource function is a back bone of an
organisation and its role is to hiring, selection, provide training and development, performance
appraisal, develop better policies, payroll and many others. In order to maintain the present
market share and generate more profit, it is necessary to appoint capable staff members and
provide them better training so that they can work towards achieving aims of firm and deal with
consumers in a fair manner (Lancaster and Massingham, 2010). Abilities as well as skills of
employees is connected with revenues or benefits of firm,. Talented or capable staff members
can enhance profit level to fulfil consumer needs.
Sales function and marketing function- The marketing and sales department are related
to each other. Various theories and tools of communication are used through the marketing
manager of company to communicate with its final consumers and also influence them to buy its
goods. It will be helpful in enhancing sales of firm and earn more profit level. In increasing sales,
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operation department plays a necessary role. McDonald firm make the use of different marketing
as well as promotional technique for impact decision making of buyer to buy its services.
Marketing department with R&D department- It is necessary to have better coordination
among the marketing and Research and Development department (Lane, 2014). The main work
of research department is to conduct better investigation and to know about the needs and
preferences of consumers, about competitors, existing products at marketing place and many
others. All these information is helpful for marketing functions to produce better quality of goods
according to consumers needs in an effective manner. In aids in attracting large number of
consumers and enhancing sales of firm.
IT department and marketing function- It function indicates different software and
technologies used through McDonald firm to accomplish it decided targets and aims.
Technology is helpful in connecting with people and produce better quality of products. It gives
better opportunity to company top use they different kinds of platforms like for an instance
Twitter and Facebook for interacting with consumers and gather accurate information. In context
to this, technology use in the business activities are helpful in save cost as well as time of firm
and enhancing efficiency of process of business.
These all the other functions of McDonald restaurant are interlinked with the marketing
function. It is necessary that firm should select the better channel of communication to make
coordination with consumers. It will be helpful in at the time of decision making.
TASK 2
P3 Compare ways to use elements of marketing mix
Marketing mix is combination of the tactics as well as strategies to effectively and
efficiently execute marketing plan. It is a necessary element which firm use for creating good
quality of products of services and set cost of goods in a better manner (Malhotra, Birks and
Wills, 2013). In marketing mix, there are 7 components are included and these are product,
place, price, promotion, physical evidence, process and people. It is necessary that company
should use all these components in an effective manner. Under this there is a comparison of
marketing mix of two different companies McDonald and Burger king. Both are the fast food
restaurants.
Marketing mix of McDonald
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Product- In all over the world, McDonald is a largest fast food restaurant. It has wide
range of food products and sell them to consumers for fulfil their needs in an effective manner.
The products of this firm are sandwiches, burgers, deserts, drinks and many others (Martin,
Campbell and Harmsen, 2014). It has announced its pledge to enhance nutritional value of food
items. The main focus of this firm is to provide healthy food to consumers. McDonald has
separate equipments as well as cooking area.
Price- It is regarded that firm charges for providing its services or goods to consumers.
The products of this firm is affordable and this firm follows the cost leadership strategy of
business. Top management of McDonald company prepared the better pricing strategies.
Place- In around 119 countries, there are almost 36,258 restaurants. On the basis of
expansion business related strategy, aims of this company is to establish its more presence in the
rural as well as urban areas. McDonald always look for the better and different locations at
market place to give consumers with convenience.
Promotion- It is helpful in aware people about products of firm and also attract
consumers. The main targets of McDonald are children. This firm conducts its promotional
activities with the help of using various media like for an instance hoardings, television, social
media and also bus shelters. All around of its outlets, this firm placing attractive banners and
pamphlets.
Process- The process of food production of McDonald is transparent to consumers and it
is visible to consumers. It has license to training. This firm regularly adopts new methods of
distribution as well as packaging so that people can be more attract (Moons and et. al., 2010). On
conducting the market research, McDonald spend 50 crores. The production process is necessary
for giant such as McDonald in order to maintain homogeneity in preparation and serving process.
People- The uniform of McDonald staff members is standard and its main focus on
prompt and friendly service to its buyers from its employees. In the decision making, manager
includes its employees. This firm gives comfortable, clean environment specially for families.
Physical evidence- Appearance of physical evidence of McDonald firm impacts not only
impression of outsiders have business but all way business functions (Campbell and Martin,
2015). Appearance and location of its very attractive and clean. Its main focus on hygienic and
clean interiors of its outlets.
Marketing mix of Burger King
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This firm uses its own marketing mix as response to saturated and change condition of
global very fast service restaurant in fast food industry. In context to burger king, main aim of
marketing mix is to enhance competitiveness against its strong competitors.
Product- This firm provides quick services to consumers and its main focus is on
providing burgers as its main food items. The food items of burger king are desserts, milk
shakes, French fries , sandwich, soft drinks and many others. In order to compete with
McDonald kinds and value meals are combo packs (Perreault, 2010). This firm, managed its
operations in an effective or better manner for maintaining quality of its product.
Price- Burger king firm follows the better bundles and market- oriented pricing strategy
because of the high competition. The manager of burger king organisation has been evaluating as
well as monitoring its pricing policy so that consumers can not feel costly. The prices of this firm
comparable to the demands as well as behaviour of market. The main focus of this organisation
on provide quality goods and better taste at reasonable cost.
Place- The outlets of Burger King is everywhere in all over the world. Around
79 countries, it has 13000 outlets. Its stores are located in Taiwan, Japan, India, South Korea and
Singapore. System by which firm operated with its franchises based on specific region. Some of
the franchises with the regional background are selected and dealt as the master franchises.
Promotion- Promotional strategy is depended around revitalizing and reorganising
concept its brands at specific periods (Wieser, 2012). It has overhauled its strategies concerned to
advertisements, menu, refurbishments of outlets, new concept and new agencies for restaurants.
Promotion is better way to connect with people and aware them about the services or fast food
items.
Process- It is a main part of business operation which is globally designed through
experts in order to operate globally through Burger King. This firm continuously maintain its
work culture, taste, supply chain, consumer satisfaction and launches of new goods because of
flow of process maintained through Burger King. The manufacturing process of Burger King
restaurant are transparent and every one can see.
People- The main focus of Burger King is on the staff members along with the
consumers. As comparison to the other outlets of fast foods, ration of customer satisfaction of
Burger King is high (Malhotra, Birks and Wills, 2013). It gives quality food experience to
consumers with the fast delivery. This firm provides training to staff members so that they can
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deal with consumers in a fair manner. Physical evidence- In 71 countries around more than
15000 locations. It has remarkable presence of developed countries. This firm started expand its
business in to the developing countries such as India. In this country, pizzas and burgers are
more popular.
TASK 3
P4 Basic marketing plan
Marketing plan is a main part of whole business plan. It is a blueprint or document which
outlines business marketing and advertising for the future. Plan is helpful in doing activities in a
proper as well as systematic manner (Campbell and Martin, 2015). The main purpose of
marketing plan is to identify all upcoming activities of firm for increasing sales of goods and
services. In addition to this, it is necessary for manager to determine vision, mission, aims of
company before implementing that at workplace. Marketing plan should be in a proper format
and helpful in making the better strategies. It is the responsibility of manager to make some
changes with in specific interval of time. The marketing mix of McDonald given below as above:
Company Background
McDonald is fast food restaurant founded in year 1940 and operated through Richard and
Maurice McDonald. It is the largest chain of restaurants through revenue (Bačík, Štefko and
Gburová, 2014). The products in this McDonald deal are milkshakes, desserts, chicken products,
breakfast goods, cheese burgers and many others.
Vision
The vision of McDonald firm is to provide quick service for better experience to
consumers. It offers outstanding, quality, cleanliness, value and service so that consumers can
enjoy its services (Dibb and Simkin, 2013).
Mission
Mission of McDonald is to be our loyal consumers, way to drink and eat and favourite
place.
SWOT analysis of McDonald
Strength Weaknesses
 World wide brand equity  Reducing market share
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 Successful brand name and
advertisement.
 Competitive price
 Space for kinds to play and clean
environment.
 income and revenue growth of
McDonald is slow
 Disgruntled franchisees
Opportunities Threats
 International expansion
 It can serve 1% to the population of
world.
 There is an opportunity to McDonald to
joint venture with the retailers such as
supermarkets.
 The people of modern era focus on
healthier dieting.
 Down economy impacting ability to eat
more.
 More fluctuation in the foreign exchange
rates of country.
 Changing in demographics
 More competition
STP of ALDI
Segmentation- Under this market is segmented in to demographic, psychographic and
demographic segmentation.
Targeting- The main targets of McDonald are teenagers, families and kids.
Positioning- It is related to finding niche in mind of prospects. Positioning strategy of
McDonald is outstanding since its starting stage (Draelos, 2010). It had created its unique or
better image in customer's mind. It makes the various positioning strategies for the various
targets market.
Marketing mix of McDonald
Product- It is one of the leading fats food restaurants in all over the world. The main food
items in which McDonald deals are chicken products, hamburgers, soft drinks, desserts and
many others. It also involved smoothies, fruits, salads and fish wraps.
Price- The perception of consumers is necessary determinant of cost charged. Regarding
the products, consumers draw their different picture as well as perception (Lancaster and
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Massingham, 2010). This company include different bundling price strategies which offer the
more products with the meals and some of the other goods.
Place- The restaurants of McDonald are at prominent placed where products of firm are
more distributed. Place indicated locations or venues where the products of company are offered.
It provide its goods through kiosks, restaurants, mobile application and websites. From its
restaurants, firm generated its sales (Desai, 2013). Some of the McDonald restaurants manage
Kiosks sell its chosen goods like for an instance desserts. Under this, there are some Kiosks are
temporary.
Promotion- McDonald’s firm promotes its goods to attract large number of consumers.
This kind of marketing mix element is helpful in communicate with consumers (Lane, 2014).
There are different tactics used by McDonald business firm are advertisement, direct selling,
sales promotions and public relations. Among all these, advertisement is one of the most
noticeable promotional technique. This firm uses the radio, online and print media, television for
advertisement. In context to this, McDonald firm uses the better and effective sales promotion
for attract large number of consumers towards its restaurants.
Marketing strategy
In addition to gain decided aims in specified time period, it is essential for McDonald
business firm to develop effective marketing activities or process (Eslinger, 2014). In regards to
this, relationship marketing is better option which aids in displaying a better bond of firm.
Financial Projection of McDonald
Income statement All numbers in thousands
Revenue 31/12/17 31/12/16 31/12/15
Total revenue 22820400 24621900 25413000
Cost of revenue 12199600 14417200 15623800
Gross profit 10620800 10204700 9789200
Operating expenses
Selling general and
administrative 1068100 2460200 2643700
Operating income or
loss 9552700 7744500 7145500
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Income from continuing operations
Total other
income/expenses net -57900 6300 48500
Earnings before
interest and taxes 8573500 6866000 6555700
Interest expense - - -
Income before tax 8573500 6866000 6555700
Income tax expense 3381200 2179500 2026400
Net income from
continuing ops 5192300 4686500 4529300
Non-recurring events
Net income
Net income 5192300 4686500 4529300
Net income
applicable to
common shares 5192300 4686500 4529300
Execution
In this, there is a need of follow all steps in a proper or systematic manner. With the help
of all these steps, firm can make its strategies in order to accomplish set aims and objectives in
an effective manner. It aids in gaining benefits for McDonald company at market place (Al-
Ekam and et. al., 2012).
Evaluation
It refers to making judgement regarding number, value and amount. It is an examination
of all activities (Hsu, 2011). Under this various methods are included which are given below:
Sales Analysis- It is related to the sales volume yearly basis according to various product
variety like for an instance burgers, desserts, beverages etc.
Market-Share Analysis- It is concerned with study concerning marketing shatter whether
it is low or high and there is large market share of McDonald.
Efficiency Ratios- Asset Turnover Ratio- Revenue (Sales)/Net Assets
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Cost-Profitability Analysis- It consists an profit examination in addition to costs. It
displays gap between sales as well as cost.
CONCLUSION
It has been concluded from the above given report that marketing is a main part of an
organisation and helps in maintaining better relationship with the consumers in an effective
manner. The better tools of communication helps in enhancing consumer base of company. In
order to attract large number of consumers firm use the right channel of distribution and provide
its products as well as services ta reasonable cost. In this report studied regarding the roles and
also responsibility of various marketing functions. Comparison among the marketing mix of
McDonald and Burger king also discussed in this report in a better manner.
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