Marketing Essentials: A Comprehensive Report on McDonald's Strategies

This report provides a comprehensive analysis of McDonald's marketing essentials. It begins with definitions of marketing and key marketing concepts, such as production, product, selling, marketing, and societal marketing. The report then explores the roles of marketing within McDonald's, including meeting customer needs, ensuring organizational growth, and widening the market. It details the marketing process, including situation analysis, marketing strategy, marketing mix decisions, and implementation and control. Furthermore, the report examines the interrelationship between marketing and other business functions like finance, operations management, human resources, and procurement. Finally, it provides an overview of the marketing mix, focusing on product, price, place, and promotion strategies employed by McDonald's to achieve its marketing goals. The report concludes with an examination of how McDonald's develops and implements its marketing plan.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Definitions of marketing and marketing concepts......................................................................3
TASK 2............................................................................................................................................5
Roles of marketing and marketing process.................................................................................5
TASK 3............................................................................................................................................6
Interrelationship between marketing and other functions...........................................................6
TASK 4............................................................................................................................................7
Overview of the marketing mix..................................................................................................7
TASK 5............................................................................................................................................9
Developing a marketing plan......................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
Marketing is an activity and a process of creating, communicating, delivering and
exchange offerings which have some value for the consumers and society. It is based on thinking
of the customer and consumer's desires and their satisfaction. Marketing essentials are related to
marketing essence which is a transaction or exchange intended to satisfy customers needs and
demands. This report is based on McDonald marketing essentials. McDonald is an American fast
food company which founded by Richard and Maurice McDonald in 1940 as a restaurant. It
operate its business activities globally (Moore, 2014). This company is the world's largest
restaurant chain by revenue, serving over 69 million customers daily in 100 countries. There are
various products in which it deal but it predominantly sells Hamburgers various types of chicken,
French fries, soft drinks etc. In this report definition and marketing concepts, roles of marketing
and marketing mix are explained in the context of company.
TASK1
Definitions of marketing and marketing concepts
Marketing definition
Marketing is the study of management of exchange relationship. It is a business process
which provide goods and services to the customers or satisfying their needs or wants and crate
relationship with them. In other words it is an act of buying and selling goods and services.
Marketing concepts
It is an concept of marketing which organisation and company implement to satisfied
customers needs, reduce and beat the competition, increase sales and maximise profit. McDonald
use marketing for selling goods and buying raw materials, increasing sales and providing
satisfaction to its customers needs and wants (Hair Jr and et. al., 2015). There are 5 marketing
concepts that an organisation use for proper running of the company and providing satisfaction
customer's demands. These concepts are as follows:
Production concept- This concept is based on the production of the goods or services
which are produce by the company. In this concept McDonald concentrate on production
efficiency. In this concept the company focus on volume of the production that the goods are
produce in right quantity and they are reach on right time to the company. There are a questions

in this concept for MacDonald that they can produce enough products?” so if they produce the
products in enough quality they are able to satisfied the customers needs.
Product concept- This concept is based on the customers needs and demands because
present time customer's demands are changed within minutes according the trends and their own
tastes and preferences (Gamble, Thompson and Peteraf, 2013). MacDonald provide products to
the customers according their needs and demands. McDonald focus on design and qualities of
the products because consumers never ready to compromise with the quality of the products. For
example every people eat beef and meat but when it launch its burger in India, the consumer of
India did not like it because of culture. So they focus on the quality of the product because they
do their business internationally.
Selling concept- This concept is depend on advertisement, promotion, discount, public
relation and the customers needs that in how much quantity they want to buy and companies
make their product in various quantity. A product can sell when customer are aware and familiar
with it. McDonald use good advertisement and promotional channels so customer can familiar
and aware with it. They provide product according the culture and value of the country in which
they operates its business and if they provide the product according the country this increase the
sells of the country.
Marketing concept- This concept focus on the needs and wants of the customer and says
that about the brand strongness, if the brand is strong customer aware with it and prefer this
brand which reduce the competition. McDonald do market research for knowing the customers
needs and wants so that it can find out their desires and provide products according the needs and
wants of the consumers which can satisfied them. Marketing concept is based on the sense and
responds of customers (Robbins and Judge, 2012).
Societal marketing concept- this concept is based on welfare of humans. It puts human
welfare on top before analysing the profits and satisfaction of the customers needs and wants.
McDonald make goods without harming the environment and society. It provide the products
according the culture of the country because in every country people are not prefer beef and non
veg food so they make product according the country culture and customers likes or dislikes.

TASK 2
Roles of marketing and marketing process
Roles of marketing
Marketing play a important role within McDonald for making its products successful.
The various roles of marketing is as follows:
Meets customers needs and wants- the needs and wants of customers are most important
in the market. In McDonald, marketers find out the consumer needs and wants by doing
marketing research and make products according the custom er's culture and tastes and satisfied
their desires (Jones, George and Langton, 2013).
Ensures organisation survival, growth and reputation- The business of McDonald
achieve growth because the customer are loyal for its products and show retention and increase
the market share. The company achieve its growth because it provide products beyond their
expectations which satisfying their needs and the sales of the company increase or company
achieve its objectives.
Widens market- There are various tools that McDonald use for advertising, promotion,
sales and event marketing which help in increasing marketing area of McDonald. McDonald use
social media marketing, TV and other channels so that it attract more customers and can make
wide area of marketing.
Better product offering- McDonald offer its products in various varieties that can provide
satisfaction to the customers and it offer better quality product because in present time customer
are ready to pay for good quality. They never compromise with the quality.
Creates utility- McDonald make products according the consumer which they can
purchase easily or satisfying their needs. For example if a customer want to eat beef burger they
make the product according the need of consumer but if someone want to eat veg burger they
also have product according to them (ESSENTIALS, 2013).
Marketing process
Marketing process is a technique which analysing the market opportunities, selection of
the target market, development of marketing mix and management of marketing efforts.
McDonald do this process for analysing the market opportunities, value proposition and
marketing decisions. There are four steps of this process that are as follows:

Situation Analysis- it is related to the internal and external environment of the
organisation. Internal environment are resources, finance, equipments and strategies or
techniques. External is related to economic, social, legal, technology and political environment.
This analysis include past, present and future aspects. McDonald do this analysis on past, present
and future aspects. For example, if it made any product in past and that was not liked by the
customers so by their past experience it make good products according the customers needs and
wants which satisfy them (Tortora and Derrickson, 2013).
Marketing strategy- McDonald use this strategy as a opportunity to fulfil their unfulfilled
customers demand by identifying their needs and wants. These strategies can be market research
and strategic plan which provide the market information to the company and by this an
organisation know about the market demand and target market according their needs.
Marketing Mix decisions- In this, McDonald take decision for product development, set
the price of the product and promotion and advertisement of the product. Over all it is related to
the marketing mix and McDonald do it for satisfying the customer and increasing sales which
help it in achieving its growth objectives.
Implementation & control- Marketing plan help in developing McDonald's products
when the market changed and it make implementation in its products. During the time of
changes when they are occurs in the markets and needs and demands in the customers, it
provides products to them by doing some innovation in them and implement or control the
market and demands.
TASK 3
Interrelationship between marketing and other functions
Marketing is not only related to selling or buying, it encompasses the whole business of
the company. In McDonald it is interrelated with the various functions or departments of the
company (Camm and et. al., 2014).
Finance department- It is an important function of any organisation because without
finance no company can run its business properly. In McDonald it is important for purchasing
raw materials and equipments so that they can provide the goods to the customers. Finance
department help the company by providing loans when they need and by calculating their profits
and losses. It help the company by focusing on cash flow, covering costs and paying back

investment. It help McDonald by providing profitable marketing opportunities for its growth.
This department related with marketing department because it make balance sheet and help in
other financial activities.
Operation management- Marketing department do work closely with the production
department. McDonald do research for identifying the needs of the customers and provide the
product according their desires. Production department help the company in developing its
business an make plan to satisfying current and future needs of the customers. Marketing is
doing the research on customers needs and wants and production department work on the
product that they are according the research and capable to fulfil the consumers needs (Young,
2017).
Human Resource Department- Marketing is work closely with this department because
it provide skills and staff for work in the company and making products and services. In
McDonald, this department help in doing research and developing new products ideas, motivate
or prepare employees to meet or achieve production target and making an ambitious and good
sales team. This department help in attract large number customers by making good
advertisement strategies and making promotional and production strategies which help the
company to achieve its goals and objectives. This department related to marketing because it
make policies and procedures and help in hiring the staff when needed and make various growth
or development plan and policies which can satisfied the customers needs and helpful for growth
of company.
Procurement Department- It is an entity which help in marketing problems like solving
issues of purchase orders, develops term contracts and acquires supplies and services. In
McDonald it help in streamline processes, identifying better sources of supply and reduce raw
material prices and costs. This department help in identifying customers needs and help in
finding better suppliers by using the internet or suppliers databases and gather the information
about it. It negotiate with the supplier for achieving better condition towards prices of raw
material or products, terms and delivery (Guffey and Loewy, 2015). After doing all process this
department analyse the results that they can fulfil the demands of the customers or not.

TASK 4
Overview of the marketing mix
Marketing Mix
It is a group and set of marketing tools and techniques which is used by a company to
achieve its marketing goals and targets. In McDonald, marketing mix is related to the tools and
tactics, set of actions that company use to promote its products and brand in the market. The
motive of marketing is to aware the customer with the product and market mix help in making
strategic decisions when new product is launched and existing products are revised. The Ps of
marketing mix are defined here:
Product- It is based on raw material when it convert in to finished good by using and
following some process, it convert in to product. In McDonald, it refers to the items and services
which are designed or make for satisfying the customers needs and wants. The products add
some feature and value which make them differentiate in the market. For example like
Hamburger, in this product the company use various ingredients like pure and good quality beef
and other materials which make different it from other company's product (Johnson, 2014).
Price- It is that amount which a customer pay for using the services and purchasing the
products. In McDonald it is related to the various costs such as manufacturing costs, marketing
costs, distribution costs and research and development. Manufacturing cost means that the price
which is invest in the process of converting raw material in to finished goods. Marketing cost is
the cost that invest in the promotion and advertisement of the product and service. Distribution
cost is the transportation price which is invested by the company in supplying the products or
services. McDonald offers meals and other products bundles for prices that are discounted and
compared to purchasing each item separately. They follow bundle pricing strategy and
psychosocial pricing strategy.
Place- It is related to the shops an outlets where products are available to buying and
purchasing. It is an important part of marketing mix. In McDonald, it is a place to buy and sales
the products that is accessible to potential buyers. It is related to the distribution of the products
and various strategies are include in it such as intensive distribution, exclusive distribution,
selective distribution and franchising. These strategies are used by the company to reach its
every customer.

Promotion- It is most important component of marketing because it help in increasing the
sales of marketing and attracting more customers. McDonald use various advertisement channels
and promotion technologies for promoting its products (Word, 2012). There are various
promotion elements like advertising, public relation, sales promotion and others. The company
do advertisement of its products through TV, Social Media( Facebook, Instagram and others),
web advertisement and radio or newspaper. A company use these channels to introduce &
familiar the customers with products or brand. The promotion is depend on the company budget,
sometimes company use word of mouth pro motion channel;s which create impact on the
customer more then internet.
People- It is related to the business. In company the employees are important in
marketing because they transfer or deliver the products and services of the company. In
McDonald, it is related to the human resources which are help the company in converting raw
material into finished goods (Cornwall, Vang and Hartman, 2015). It can be related to the
customers who purchasing the services of the company and help the company in achieving its
objectives and targets of growth. There are approx 375,000 employees who are working in
McDonald.
Physical Evidence- It is related to the environment in which the service occurs and the
place where customers are personally interact with the products and services. For providing
physical evidence a company can use symbols, signs and brochures and McDonald use menus
for this. The companies use it to manipulated its customers perceptions because if they are aware
an familiar with the product they only satisfied with it. For example if people are think fast food,
they think about McDonald.
Process-It is based on the strategies, techniques and approaches which a company follow
to make and promote its products and services. For example, in McDonald it can be related to the
process of products that how the workers convert raw material in to finished good and what
equipment they use or which kind of technologies they follow.
TASK 5
Developing a marketing plan
Marketing plan

It is related to the product that what kind of strategies, technologies and approaches the
company follow to make the product and doing marketing of the products and services. If
company start the process to making a new product or innovating a existing products then it
makes some plan and here McDonald manufacture a new product or it make some plan for that
(Babin and Zikmund, 2015).
Overview- McDonald, an American fast food company that founded in 1940 by Richard
and Maurice McDonald. The company operate its business in various country. And the product
of the company's are chicken products, breakfast items, soft drinks, milkshakes and desserts.
Now, it is going to some innovation in its product French fries and it is going to make innovation
in it and launched in various flavour.
Mission, vision and objectives- The mission of the company is that this new innovative
product will not be available on other company only its products is available. The vision of the
company is to use good quality raw materials so that they can reach to be a positive force to their
customer. The objective of McDonald is provide better quality product with great value which
can satisfied the consumers in a friendly and fun environment (Black and et. al., 2018).
McDonald can set their objectives like it can plan 10% profit by its new products in upcoming
six months for that product which it manufacture and add some extra value in the products so
that they can increase its profit.
STP- McDonald segmentation, targeting and positioning is an important components of
marketing. If the company make innovation in its product Aallo Tikki, now it launch this product
buy doing innovation and new product is Cheese Alloo Tikki. This company do the segmentation
of the customers for this new product according their ages, gender and tastes. And target the
children and youth because they like fast food more than other age people and they more choosy
for foods. The company use adaptive type positioning. In their positioning strategies they
positioned youths and children.
Marketing strategy- It is related to the strategies which a company use to make, sales and
promote its product. McDonald use various strategies like promotional and distribution. It will
promote its new product by using advertisement channels like TV, Social media and Web
advertisement because kids watch TV more and youth use social media so they can aware with
this new product.

SWOT analysis- McDonald do this analysis to find out its strength, weakness,
opportunities and threats of the products. The strength is that brand equity because more of the
people are familiar with McDonald and once they use the new product. And the quality of the
product is good so they could not stop himself with using this product. Weakness is that this
product is made for the youths and children so the company could not target other groups.
Opportunities are that this product is available in various flavour so there are a big scope of the
consumers in various country (Thill and Bovée, 2013). Threats is competition of various
companies because they can also launch this kind of products.
Marketing Budget-
Particulars 1st year 2nd year 3rd year 4th year
Initial money 15000 10000 10000 12000
Investment 15000 15000 10000 12000
Total 30000 25000 20000 24000
Marketing
outlay
10000 5000 6000 6000
Promotion 5000 5000 6000 4000
Sales
publicity
7000 5000 8000 4000
Direct selling 8000 5000 5000 5000
Total 30000 20000 25000 19000
Monitoring and controlling- It is related to monitoring and controlling the process and
activities which are required by the products to promote and make it. McDonald's motioner and
control its process or activities which is used in making this new product because it stop the
waste and reduce the inventory (De Jong, Marston and Roth, 2015).
CONCLUSION
In this report its concluded that marketing is important for the business and the various
concepts of marketing production, product, sales, and marketing help in selling goods and
purchasing raw materials and in different marketing activities which is done by a company. The
role of marketing and marketing process is explained briefly. He interrelationship between
marketing and others functions like finance, human resource management, production and

procurement department are defines in the report. Marketing mix and development plan for new
product of McDonald is described.
REFERENCES
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De Jong, M., Marston, N. and Roth, E., 2015. The eight essentials of innovation. McKinsey
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Marketing Essentials. 2018. [Online]. Available Through:
<https://www.hubspot.com/agencies/marketing-essentials>.