Unit 2: Marketing Essentials Report - McDonald's Case Study Analysis

This report provides a comprehensive overview of marketing essentials, utilizing McDonald's as a case study. It begins by defining the core concepts of marketing and exploring current and future trends. The report then delves into the different marketing processes, emphasizing brand value management, campaign management, and the development of new products, including website and social media marketing strategies. It outlines the roles and responsibilities of a marketing manager, including working with top-level management, coordinating business activities, identifying market opportunities, and evaluating products. The report further examines how marketing influences and interrelates with other functional departments, such as production, finance, and human resources. It highlights the value and importance of marketing in the context of an organization, emphasizing strategic marketing, customer response, and its role in raising living standards and creating employment. Finally, the report evaluates basic marketing plans of McDonald's.

UNIT 2 MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Concept of marketing including future and current trend.....................................................1
QUESTION 2...................................................................................................................................2
Different marketing process .................................................................................................2
QUESTION 3 ..................................................................................................................................3
Roles and responsibilities of a marketing manager...............................................................3
QUESTION 4...................................................................................................................................3
Marketing influences and interrelates with other functional departments of the organisation3
QUESTION 5...................................................................................................................................4
Value and importance of the marketing role in the context of the organisation....................4
QUESTION 6...................................................................................................................................5
Emphasise the significance of having effective interrelationships between different functional
departments.............................................................................................................................5
QUESTION 7...................................................................................................................................5
Application of marketing mix to the marketing planning process to achieve business
objectives................................................................................................................................5
...............................................................................................................................................6
QUESTION 8...................................................................................................................................8
Evaluating basic marketing plans of McDonald's..................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is associated with exchange of relationships in order to satisfy demand of
consumers. This is a strategy adopted by organisation to satisfy demands and requirements of
customers, resolving their problems and providing them with quality products and services (Pike,
2015). This is among important components of management, business implement innovative
ideas and strategies to capture market which relates to promoting and advertising products and
services of company. This project discusses about concepts of marketing essentials which is
required to increase productivity and profitability of business.
In this report we have taken McDonald's which was opened by Richard and Maurice
McDonald, it is among leading fast food chain. This report cover topic about Concept of
marketing including future and current trend and different marketing processes. In the end this
report discusses about marketing plans of McDonald's.
McDonald's is largest restaurant with the turnover of 69 million, it is operating
worldwide in more than 100 countries. Company sell food items like hamburgers, cheeseburgers,
chicken products, french fries, etc. It is world’s second largest private organisation, with 1.6
million employees working in it.
QUESTION 1
Concept of marketing including future and current trend
Marketing is a tool which, is used by organisation to fulfil demands and requirements of
customers (Scarborough, 2016). It increases revenue and profit of business in competitive
market. There are 5 concepts of marketing, some of them are as follows.
Production concept: according to this, people refer buying products which are affordable and
easily available in market. This is among the oldest concept used in marketing management, it
focuses on improving overall productivity and profitability.
Product concept: help in delivering quality products and services to customers with the
implementation of innovative techniques and strategies. Managers conducts research, to meet the
requirements of targeted audience. Consumers prefer to buy products which are simpler and
easier to use.
Selling concept: management must undertake promotional strategies to increase sale of
particular products. Organisation uses effective selling tools and delivers products which
customers want.
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Marketing concept: business deliver products and services to satisfy needs and requirements of
targeted market segmentation.
Current and future trends of marketing: presently McDonald's is using social media and
official websites for promoting their new and existing products. Company is offering packaged
foods to consumers, in order to attract attention of new customers. Interactive web designing is
company’s current marketing strategy which has increased engagement of visitors. Pinterest is
another social media platform used by organisation to capture additional marketing trend.
McDonald’s can use transparency in marketing procedure and can mention all necessary
ingredients in packaging in coming years (Malhotra, 2015). They can use innovative ideas and
strategies to improve their existing marketing strategies which will help them to increase their
consumer base.
QUESTION 2
Different marketing process
Marketing process help business in handling all activities of business in effective and
efficient manner. Main motive of business is to increase customer base by promoting products in
current market. McDonald's is responsible for planning strategies and policies which will result
in growth and development of business. Different types of marketing process are as follows.
Managing brand value: in order to promote products marketing department of
McDonald's develops various types of strategies and policies. People are familiar with services
and products as it is a leading brand. Effective marketing will establish good brand image in-
front of potential buyers and consumers.
Managing campaign for marketing: in order to increase productivity and profitability
of business it essential to identify desire of customer’s. Marketing function is directly connected
with management, they critically evaluate requirements and design products according to it
(Kladou and et.al.,). McDonald's coordinate various marketing channels to increase brand image
and profit of business.
Promoting and developing new products: McDonald's deliver quality products and
services after analysing and identifying market situations. They perform promotional activities in
order to capture market share and increase their sales.
Creating effective websites: company designed its official website so that consumers
can check all information’s of products. McDonald' provide consumers with all relevant
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information regarding product, this will increase brand loyalty. In order to create dynamic
website, they appoint professional web designer.
Managing social media marketing: marketing department monitors each and every
activity like purchasing, market and competitive analysis. McDonald's uses both online and
offline marketing strategies to promote new products and services. They manage online
marketing with the help of social media like Facebook, Instagram, twitter, etc. Business updates
all relevant information of product on official website, which grab attention of consumers.
QUESTION 3
Roles and responsibilities of a marketing manager
Manager use various resources to draft plans and policies which are required to fulfil
goals and objectives of business (Boschetti and Massaron, 2015). Effective communication helps
in establishing good relations with customers. Given below are some roles and responsibilities of
marketing manager.
Working with top level management- They assist top level management in drafting plans and
policies which are related to organisation. McDonald's manager assure that all problems and
issues are minimised and sound policies are being formulated.
Supervising and coordinating between business activities- It is important to maintain
coordination between different business activities like purchasing, sale, packaging, transportation
etc. this will minimise the wastage and increase revenue of organisation. McDonald's managers
control and supervises all operation of business to assure that task is completed on time.
Identifying of potential market- In order to increase demands of products and services
McDonald's manager implement strategies, to find new consumers and maintain strong relations
with existing buyers.
Evaluating the product and services- Important function of managers to critically evaluate
taste and preferences of consumers. On the basis of manager’s identification, they modify and
change existing products to satisfy the demands of customers. For example, McDonald's offer
healthy and calorie less burgers, to meet current desire of clients.
Launch new products and services- manager study and analyse the demands of potential
buyers in order to attract new customers and retain the old one. On the basis of above report the
McDonald’s launch new food items like fresh salads, smoothies, etc. to meet their requirements.
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Marketing research- marketing manager of the organisation carries out market research to find
clear understanding about customer's expectation from an organisation and what customer really
want from organisation. These marketing research helps managers to find new market
opportunities which helps to enhance business growth. Market research also helps managers to
find organisation's competitors by which they will able to develop efficient product which make
them strong in front of competitors. McDonald's marketing managers will do continuous
research on taste of food preferences of the customer.
To develop market strategies- another role of marketing managers in their responsibility is to
develop effective market strategies which help them to achieve targeted future goals. These
strategies of managers also helps them to promote their products and services by which they will
able to get strong loyalty from customers. These strategies also helps them to motivate their
employee's work performance in organisation. McDonald's marketing managers has developed
strategies which helps them to enhance their growth of organisation.
To develop customer relationship management- role of marketing manager is to do research
on customer satisfaction point from collecting survey from previous data base and in accordance
with that they will create effective policies which helps in develop customer relationship
management. In order to built long lasting relationship from customers managers will convey
strategies to employees for giving the best quality services to customers of the organisation.
McDonald's marketing managers have created policies like birthday party arrangements in their
premises which helps them attract customers of organisation.
To develop employee management- marketing managers are in charge for employees in their
department. Their role is to assign duties and to set targets for employees of the organisation to
get effective work performance for the achievement of organisational objectives. Employee
management is crucial part for marketing managers of the organisation. McDonald's marketing
managers has created effective employee management policies under which employee does their
work in full motivation and provides effective work.
QUESTION 4
Marketing influences and interrelates with other functional departments of the organisation
In order to increase productivity, it is significant for marketing department to synchronise
their activities with other departments. This will minimise the wastages and resources will be
effectively utilised by business.
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Production department: marketing manager conducts research and modify existing products and
services in order to meet future and current requirements of consumers (Zeuch, 2016).
Organisation design products according to specification and instructions given by them.
Production department assures that orders generated by marketing should be fulfilled in a
specified time.
Finance department: it makes budgets to meet requirements of research and development,
promotional advancements and distributions. This assures that all operations of marketing
department are carried out within the financial capabilities of business. Profitable marketing
opportunities will increase sales revenue and capture market shares.
Human resource department: in order to develop and build new products and services,
marketing department will require capable and efficient workforce. Human Resource
Department plays a crucial role is selecting and training employee of the business.
In order to avoid conflicts and issues between various areas, firm should synchronise all
activities of various departments. Effective communication will help in delivering plans and
objectives between all functional areas.
QUESTION 5
Value and importance of the marketing role in the context of the organisation
Marketing is considered as an important element in success of organisation, it helps in
increasing sales of the product. McDonald's design their products according to customers’
requirements. This will help in establishing good relation (Craig, Mitchell and Wilkinson, 2018).
Some importance and value of marketing is given below:
Strategic marketing: organisation conducts research by analysing and quantifying sales pattern
in order to identify the demands of buyers. McDonald's has modified existing products and has
launched new products to meet up the requirements. Marketing strategies spread awareness
about products and motivates customers to buy them.
Response of customers with ongoing needs and development of products: organisation do not
launch new products, they critically evaluate market situations and modify existing product. In
order to establish good relations with customers this is an essential process.
Marketing help in transfer, exchange and movement of goods: business delivers goods and
products with the help of various intermediaries like wholesalers and retailers. Marketing is
essential for both producers and consumers. McDonald identifies needs and requirements of their
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potential buyers and design services according to it. In order to transfer ownership between
buyers and sellers, business design products which are acceptable by people.
Helpful in raising and maintaining the standard of living: marketing continuously supplies
goods and services to customers at reasonable prices. It plays a crucial role in delivering quality
products to community which consist of three classes rich, poor and middle. McDonald's
implements the latest marketing techniques to increase living standard of poor people. They
manufacture products using advanced technology which lowers prices of commodities.
Creates employment: it is a complex process which, involves various functions like buying,
selling, financing, warehousing, etc. in order to perform these activities efficiently business
requires large numbers of professionals and employees. Thus, it can be said that it provides
employment to large number of people (Morgan, 2016). Due to large scale production and
industrialisation marketing has become essential function of management. In order to have
continuous flow production McDonald's employees number of individuals and bodies.
QUESTION 6
Emphasise the significance of having effective interrelationships between different functional
departments
From the above interrelationship it can be said that different departments perform various
functions. Effective communication will help in maintaining coordination between all
departments. On the basis of research conducted by marketing department, production section
produces new commodities or modifies the existing ones. McDonald's assures that supply match
with demand of market, in order maintain stability. Finance department prepares budget for
performing various activities of marketing function. In order to deliver quality products'
enterprise requires skilled and capable workforce which can effectively utilise the resource
(Nguyen, Simkin and Canhoto, 2015). Human Resource department selects capable and skilled
candidates to perform all activities of business. Customers service department handles all quires
and issues of their potential buyers and uses this information in modifying their services.
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QUESTION 7
Application of marketing mix to the marketing planning process to achieve business objectives
Marketing mix is defined as effective tool used by organisation in order to accomplish its
goals and objectives. This process is time consuming and complex because it deals with critical
evaluation of taste and preferences of individuals. Given below is comparison between two
organisations McDonald's and subway.
Basis McDonald's Subway
Product They provide wide range of
food items like veg and non
veg. They deliver quality
products to consumers,
according to their taste and
preferences. McDonald
continuously evaluates market
situations and modifies
products according to it.
They offer variety of items like
sandwiches, biscuits, salad etc.
it came up with unique idea of
fresh and hand tossed bread in
order to satisfy consumers
demand.
Places It focuses on expanding
business operations overseas
with the help of innovative
idea of take away and online
ordering (Ottman,2017).
Stores are situated in luxury
malls, hotels, airports which
grab attention of buyers.
McDonald's is able to attract
maximum customer’s in this
competitive world because of
its segmentation
Subway has neat and clean
stores which help in serving
hygienic foods and beverages
to consumers. Organisation
critically examines taste and
preferences of their potential
buyers and on the basis of this
observation they expand its
business at different places.
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Promotions This is among important
aspect of marketing mix.
McDonald's has used social
media and websites to
advertise new products and
services. In order to target
children they have introduced
meals along with toys.
Promotional methods adopted
by subway is offline they
directly contact with
customer’s and explain them
about products. Store
promotion is an effective
strategy which influences
consumers to buy particular
products.
Price Company decide price of
products by comparing
revenue and cost (Marketing
mix of McDonald's, 2018.).
McDonald's has classified
burgers in two ranges BA
(branded affordability) and
BCV (branded core value). For
example, it has Mcaloo tiki is
economical burger which is
easily affordable by people.
Segmentation of price is done
to satisfy consumers
requirement.
It is premium priced product as
compared to others. Subway
offers sandwiches which has
less calorie content which
makes its price high. In order
to maintain quality of product
company has kept prices
higher (Ryan, 2016).
People McDonald’s employees have
standard uniform and they
have friendly attitude towards
their buyers. Management
provides effective training to
staff members to keep their
customer’s happy and
Subway train employee to deal
with negative comments of
people and solve their issues
and problems. This type of
training is useful in handling
crowd during festival seasons
like Diwali, Christmas etc.
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satisfied.
Physical evidence Outlets of company is clean
with an attractive outlet which
grab attention of customer’s
Subway stores are well
maintained and furnished
which helps in delivering
quality products and services
to customers.
Process McDonald's follows
transparency in its
manufacturing process,
customers has option of
visiting their kitchen and judge
hygienic standard of company.
Subway prepares sandwiches
according to instruction of
buyers, this provides
customer’s surety that
ingredient used are healthy and
hygienic.
QUESTION 8
Evaluating basic marketing plans of McDonald's
Executive summary: designing of marketing plan is an important procedure which
includes components like setting up of marketing goals and objectives, conducting research
program for consumers, etc. in order to identify internal and external factors of the company it
conducts SWOT and PESTLE analysis. Planning is essential in launching of new products and
services. For example, McDonald's is launching natural flavoured ice creams.
Situational analysis: market goal showcasing plan is used by company to identify
requirements and needs of clients and design products accordingly (Hisrich and Ramadani,
2017). Promoting plan focuses on key areas of improvements which will maximise profit share.
SWOT examination will help company in targeting potential consumers and provide them with
necessary information about the products. This is done by implementing effective marketing
techniques to promote new products.
Market objectives: after critical evaluation of consumer taste and preferences McDonald’s
is launching natural flavoured ice creams. This new product helps in increasing customers base
of the company and setting up of new objectives.
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Segmentation target positioning: McDonald's has focus on adored and notoriety inside
customer’s. Organisation is using its existing brand image in order to attract new buyers.
McDonald's focuses on various segments of people, to deliver this natural flavoured ice creams.
SWOT analysis of McDonald's is given bellow
Strength: McDonald's has established its brand image worldwide and it offers quality
products and services. It adopts innovative techniques to maintain consistency of products by
offering similar product lines in terms of usage. It offers wide variety of products like happy
meal, fries and ice cream for different segments of people (Bryson and Daniels, 2015).
McDonald's continuously compares its financial records with other organisations to identify its
financial position.
Weakness: revenue and income of organisation is gradually decreasing because of
declining market size. Competitive organisation is using advanced technology in manufacturing
process which has minimised overall sales. McDonald's has failed to maintain its quality due to
which revenue and income has gone down.
Opportunities: Organisation has opportunity of expanding its operations overseas and
serve its products to world. McDonald's can collaborate with supermarkets in order to establish
its franchise in better locations. On the basis of current market trend organisation can offer
healthier products with the help of innovative techniques.
Threats: McDonald's has threat from its competitors because they are offering low
calorie sandwiches. Change in foreign exchange rate has led to down fall in economy due, to
which sale of products has decreased.
PESTLE ANALYSIS
Political factor: Government plays a crucial role in development and performance of any
brand. There are various factors like trade unions, taxes, etc. which has direct impact on the
economy of nation (Fine, 2017). McDonald's performances are generally affected by health
policies of government, which affect overall profitability of business.
Economic factors: This is considered important, if organisation is operating globally.
Brand performance of McDonald's is positively affected by this factor. Even after the adverse
economic conditions, company is gradually improving level of performance.
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