Marketing Report: Analyzing Marketing Strategies of McDonald's

This report provides a comprehensive analysis of marketing concepts, procedures, and the role of marketing within an organization, using McDonald's as a case study. It examines existing and future marketing trends, different marketing procedures including strategic market analysis and marketing mix planning, and the roles and responsibilities of a marketing manager. The report also analyzes how marketing influences and interrelates with other functional units such as operations, finance, and human resources. Furthermore, it explores the values and significance of the marketing role, the importance of interrelationships between functional units, and compares the marketing mix of McDonald's with Subway. Finally, the report evaluates a basic marketing plan and concludes with key findings and recommendations for the company.

Marketing and
Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Concept of marketing including existing as well as future trends .............................................1
2. Overview of different marketing procedure ...........................................................................2
3. Roles as well as responsibilities of marketing manager in context of organization................4
4. Analyzing the way marketing influences and interrelates with other functional units............4
5. Values as well as significance of marketing role.....................................................................5
6. Significance of interrelationship between different functional units......................................5
7. Comparing the marketing mix of two organization.................................................................6
8. Evaluation of basic marketing plan .........................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is considered to be as important activity which drive firm towards
accomplishment of desired business objectives. This activity is generally executed for promoting
goods or services. It is mainly associated with the selling of the product and services. The
purpose of marketing activities conducted by companies is to identify the needs as well as
demands of customers. Business entities execute marketing activities with the intention of
analyzing market situation, as this tactic assist them in making suitable decision related to
product development. With the passage of time there has been great transformation in the
techniques used by enterprises for communicating with customers.
The present report have focus on analysis existing as well as future marketing trend. It
also emphasizes on identifying the role of marketing and the way it relates to other functional
units in context of Mac Donald. It is world largest restaurant chain in terms of revenue.
1. Concept of marketing including existing as well as future trends
Marketing concept can be considered to be as a strategy which is generally implemented
by organizations for satisfying the needs of customers. Promotional strategy has supported
McDonald's in increasing sales as well as profitability. There are various marketing concepts
these are :
Production concept :It is considered to be as traditional marketing concepts which is based on
the assumptions that customer get attracted towards product due to low cost. Business entities
with this approach mainly concentrates on their operational activities. McDonald's is now
concentrating on increasing operational efficiency, as this strategy will assist firm in maintaining
balance between demand and supply.
Product concept: This concept states that consumer are most conscious about the quality of
goods rather than price. According to the product marketing concept, McDonald's needs to
concentrate on the quality of goods, as this will help business entity in retaining the profitable
customer for long time (Kim, Jun and Lee, 2014). It will also support an enterprise in gaining
customer loyalty.
Selling :This concept states that McDonald's need to concentrate on its promotional efforts as
well as an organization need to increase its market efforts. As this strategy will help an
organization in attracting more number of customers.
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Marketing : As per this marketing concept it is important for McDonald's develop the
understanding about the target customer group, ass this tactic will assist business entity in
delivering high level of satisfaction to clients.
Social marketing concept : It is considered to be as pure marketing concept. According to this
marketing concept, marketing manager in McDonald's should formulate such strategy which
could deliver high value proposition to customers, as this strategy will support an organization in
gaining competitive advantage in the market.
Current as well as Future trends in marketing
Virtual reality is becoming increasingly common place as a marketing tool for big as well
as small brands. The challenge is using virtual reality in a way that makes sense for overall brand
messaging and target audience. In addition to this interactive content has assisted Mac Donald in
attracting the customers. It has enabled firm to engage customers in business (Malhotra, 2015).
Artificial intelligence is the latest trends which has provided Mac Donald's a chance to
engage customers. It has enabled business entity to deliver memorable experience to customers.
2. Overview of different marketing procedure
The marketing procedure mainly comprises various constituents these are strategic
marketing analysis, marketing mix planning, implementation and control of promotional
strategies:
Strategic market analysis:
Market segments : The marketing objective of McDonald's is to earn profitability. An
organization in order to achieve this target need to concentrate on the identifying the needs and
demands of customer in the market. Market research is the activity which can be executed by
Mac Donald's, as this will assist an organization in identifying the demands of consumer.
In addition to this, McDonald's can categories the big market into small segments, as this
will provide an enterprise ease in identifying the customer group. It is essential to segment the
customers as per their need because all the customers have various necessity and wants and it’s
impossible to serve them all like. McDonald's can utilise demographic market segmentation
strategy for diving market into small parts.
Positioning : It includes creating as well as communicating a message that clearly establishes an
organisation . It is very much crucial for McDonald's to position their goods or services in the
market.
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Marketing Mix Planning
Tactical marketing include developing a marketing mix which includes various
constituents such as product, price, Place, promotion, People and physical evidence. Marketing
planning is done by manager in an enterprise for identifying an appropriate technique for
reaching to the target customer group (Martensen and Mouritsen, 2017) .
Products : It involves quality, safety packaging, styling, brand name, etc. McDonald's offers
products according to the needs and demand of customers. Some products which are offered by
Mac Donald's are beverages, desserts, snacks. McDonald's is popular for its Hamburgers and
Sandwiches.
Price : McDonald's offers discounts for attracting customers. McDonald's offers products or
services at affordable price to customers.
Place : The important places from where McDonald's distributed its goods and services are
restaurants, websites, mobile apps etc. Mac Donald's has its restaurant located at different
location which provides business entity an ease in making timely delivery of products or
services.
Promotion : Directing marketing, advertising and sales promotions are some promotional
techniques are adopted by McDonald’s for promoting brand.
Physical evidence: McDonald’s has its own website from where customer can access
information about company. In addition to this, Mac Donald have attractive stores located at
different locations.
People: McDonald’s has adopted customer centric approach, business entity have focus on
fulfilling customer need. An organisation intends to provide high level of satisfaction to its
clients.
Procedure: An organization has focus on improving marketing activities. It also has focus on
improving logistics management. In addition to this, Mc Donald, is planning to restructure its
business ion order to bring improvement in various activities
Implementation and control
At this phase it has been that the promotional plan has been formulated and the
commodity has been launched. According to changes in the market, marketing mix can be
adjusted to suit the changes either modifying the advertisement content or redesigning the whole
good . Execution is required to meet these changes and constant observation is necessary to fulfil
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client demands consistently (McDonald and Wilson, 2016). Controlling ensures that the selling
program move in direction of accomplishment of desired objectives.
3. Roles as well as responsibilities of marketing manager in context of organisation
Marketing manager in McDonald’sis mainly accountable for developing as well as
implementing promotional plan. The marketing manager is considered to be as an in charge of
all marketing activities. It is the duty of marketing manager to plan, direct, organize and control
promotional activities (McDonald and Wilson, 2016.).
Market research : Role of marketing manager is to execute market research and helps business
entity in identifying the needs as well as demands of customers. Market research activity also
enables manager to explore as well as capture various opportunities. Role of marketing manager
is to support Mac Donalds in segmenting market as well as in positioning gods or services. It is
the duty of Marketing manager in McDonald’s to collect the information about the strategies
adopted by competitors and provide the same to company.
Formulation of marketing strategy : It is considered to be an important function of Marketing
manager in Mac Donald. Promotional strategies which is developed by marketing manager
should consists of clear tactics which will be adopted by business entity for promoting goods or
services.
Customer relationship management : Role of marketing manager in McDonald’sto conduct
customer survey and collection the information about the satisfaction gained by client from
consuming products or service offered by an enterprise.
Identifying new business opportunities: It is the duty of marketing manager in McDonald’sto
analyze marketing trend and explore as well as helps business entity in capturing various
business opportunities. In addition to this by sale forecasting , marketing manager in Mac
Donalds can estimate future performance of the products or services offered by business entity.
4. Analysing the way marketing influences and interrelates with other functional units
Marketing procedure conducted in McDonald’s have direct as well as significant
influence on whole business. As all the operational activities in an organization are executed
considering the taste, preference, need and demand of customers. In context of Mac Donald's,
the purpose of company is to provide high level of satisfaction to customers therefore marketing
and other functional department are working towards achieving such goals (Philip, 2014).
Marketing and operation department :
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Marketing functional unit in Mac Donald's need to work closely with operational team in
order to ensure that all the activities or products are being developed according to the
requirement by customers.
Market and finance department : Marketing functional unit in McDonald's need to work
closely with finance department in order to make sure that there is sufficient amount of budget is
available for executing various marketing activities.
Marketing and Human resource department: Marketing manager in McDonald's need to
coordinate with human resource functional unit in order to ensure that suitable skills and staffing
levels are in place to:Research and develop new product idea. s meet production targets, Creating
competent sales team (Purvis, 2015).
5. Values as well as significance of marketing role
Development of the effective services according to the needs and wants of the customers.
Marketing helps McDonald’s in identifying the needs and wants of the customers by doing
appropriate marketing research.
Marketing assist in identifying and analysing the various needs and wants of potential
consumers by conducting market research. Market research assist firm in gathering all the
information regarding customers expectations. The facts provided by marketing team assists an
organisation in customizing its services as per requirement of target audiences. Marketing
performs an important role of promoting brand among the consumers by providing effective and
quality content for the company websites and blog that attract large number of customers to buy
products or services offered by an enterprise .
6. Significance of interrelationship between different functional units
Interrelationship between different functional unit is important in order to ensure smooth
functioning of business. In addition to this it is also crucial for increasing effectiveness,
productivity as well as efficiency. A strong coordination as well as interrelationship between
different function unit is important in context of smooth functioning of business. An effective
relationship between functional department supports management in ensuring an effective as
well as efficient utilization of resources (Romero-Gutierrez, Jimenez-Liso and Martinez-Chico,
2016). Effective interrelationship between different functional department in McDonald’s has
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assisted an organization in accomplishment of desired business objectives. Strong coordination
between team within an enterprise is crucial for expanding business. It is also essential making
delivery of products or services buy company. A strong relationship between different
department in McDonald’s has supported business entity in delivering high level of satisfaction
to customers. It has assisted firm in improving customer services. Interrelationship between
different functional unit in an enterprise has direct as well as significant effect on reputation of
company ((Malhotra, 2015). ).
7. Comparing the marketing mix of two organization
Marketing mix of Subway
Product-
The product range offed by subway is very wide. It offers various range of the products
including drink such as Subway slim, Subway milk maid are some of it milk product. On the
other hand, Mac Donalds offers specific variety as well as range of products.
Price
The pricing of the product is completely based on the demand of an individual product by
customers in the market. Subway has adopted competitive pricing strategy. This pricing strategy
is implemented as the quality of product is good enough and skimming pricing policy will not
enough for influencing customer to buy products. On the other hand ,McDonald’s has adopted
pricing strategy that includes bundle pricing strategy, psychological pricing strategy. The bundle
pricing includes the McDonald’s offers meal and other product bundles. While psychological
pricing uses the much affordable prices like $.99 instead of rounding off.
Place
An organization has its stores located at different locations which provides firm an ease
in delivering products or services to customers. On the other hand, Subway has formed form
strategic partnership with other companies in order to strengthen its distribution network.
(Purvis, 2015).
Promotion – McDonald’soffers discounts as well as launch new schemes in order to attract
customers. On the other hand, Subway use social media sites for promoting goods and services.
This promotional strategy has helped an enterprise in marketing their products or services at
large scale.
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People: Subway aim is to provide higher return to its shareholders. Whereas, Mc donals have
focus on providing high level of satisfaction to both customers and employees. An organisation
has adopted customer centric approach in order to deliver high value to client.
Physical evidence: Subway has its own website from where customer can access information
about company. On the other hand, Mac Donald have attractive stores located at different
locations. :
Procedure : Subway has focus on improving marketing activities. It also has focus on
improving logistics management. On the other hand, Mac Donald, is planning to restructure its
business ion order to bring improvement in various activities (White Jr, Monsegur-Rivera and
Trujillo-Pinto, 2015.).
8. Evaluation of basic marketing plan
8. Evaluation of basic marketing plan
Executive summary
MacDonald's is planning for the organic food in their restaurants due to the era of health
consciousness McDonald’s is multinational fast food restaurant. It is among the global big
restaurant chain. The marketing plan for the McDonald will include the company overview,
situational analysis, marketing objectives, strategies and control will be discussed.
Company overview
McDonald's is the American fast food organisation, established in 1940 as a eating house
by as person name Richard Maurice McDonald's inn California. It is world largest restaurant
chain by revenue.
Situational analysis
SWOT analysis
SWOT analysis stands for the strength, weaknesses, opportunities and threats. It is done to
identify the internal factors affecting the Mc Donald's operations.
Strengths
 An organization offers good quality of
products due to which they have able to
gain customer loyalty.
Weaknesses
 The controversial problem is being
faced by the McDonald's in which
advertisements and worms got world
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 It provides the gifts with their meals so
to attract the children
 The McDonald's have more than 71000
workers in different departments
 The strong and effective R&D
department and it has made different
innovation in its food products.
frame and causes heavy damage in
brand.
 They have received some complaints
regarding damage which makes the
image down (SWOT Analysis / Matrix,
2012).
Opportunities
 An organization require enhancing its
market, so they require strengthening
their supply chain network as well as
distribution channel in order to deliver
products or services to people living in
in rural areas.
Threats
 Now the people are very much health
conscious and customers feel unwilling
to buy specific unhealthy food item.
 Inflation in the Price of products can
lead to the decline in demand as well as
sale of goods. This factor can also have
negative impact on the profitability of
firm.
• Increase in competition, can be a biggest
threat for an enterprise. There are many giant
companies offering same products , business
entity might face difficulty in attracting
customers.
PESTEL analysis
Political
The change in government from labour party to a liberal democrat has greatly impacted
McDonald's operations. Many other taxes imposed by the government were affected the
operation of the McDonald’s
Economic Factors
McDonald's extension plan is being affected by the worldwide economic deadline,
however, there is no effect on the profitability and sale of products. McDonald's has able to
gain 30% increase in its total profits (What is a PESTEL analysis?, 2015).
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Social
Due to continuous changes in the taste and preferences. An organisation is facing
difficulty in maintaining balance between demand and supply. In increase in the health
consciousness among people has lead to decline in the demand for food items offered By Mac
Donald.
Technological factors
Technology has bought major transformation in McDonald's packing material and in
operational activities in last few years. Technology that uses pathogen systems is implemented
by an enterprise for filling heat-resistant chocolates in their brownies.
Marketing objectives
McDonald's wants to reach to all segments of society as it is a leading company in food
products. The company wishes to give organic food in its restaurant with fast distribution
channel (Haryadi, 2018). An organisation is also planning to expand its business operations in
international markets. An enterprise is concentrating on promotional activities as well as
advertisement campaign, in order to promote its brand, products both at domestic and
international level.
Budgeting and controlling: Budgeting can be defined as the procedure conducted in order to
control the expenditure related to the promotional activities. This technique enables to measure
the actual cost with standard. It also assists management in identifying the variations and reason
for the same. Marketing manager in Mc Donald can utilise existing promotional budget for
preparing new budget. It also aids management in taking the corrective as well as quick actions
for reducing the costs.
The expenditure of operational activities of Mac Donald includes salary of employees
that is 12000, training expenditure I.e 25000 and rent 11000 and an organisation is generating
revenue of 55000 from sales and business entity need to 45000 for expanding its business
operations. Budgeting technique has helped Mac Donald's in increasing profitability.
Marketing expenditures Quater 1 Quater 2
Advertisement in magazine 250000 $ 500000
Blog 4500 4500
Trade shows 14500 14500
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Outsourcing of market
research
25000 5000
CONCLUSION
It has been concluded from the above report that promotional activities plays an
important role in accomplishment of the objectives. Study has also concluded that marketing has
great worth as well as significance in an organization. It has been concluded from the assignment
that interrelationship between marketing as well as other functional department is very much
important in order to accomplish desired business objectives. Assignment has also concluded
that marketing managers have crucial roles to playing in driving firm towards accomplishment of
desired marketing objectives.
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REFERENCES
Books and Journals
Haryadi, S., 2018. Applied Statistics for Assessment of the Regulation and Policy: case study in
Telecommunication Industry. DOI10, 13140.
Kim, K., Jun, C.H. and Lee, J., 2014. Improved churn prediction in telecommunication industry
by analyzing a large network. Expert Systems with Applications. 41(15). pp.6575-6584.
Malhotra, N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Martensen, A. and Mouritsen, J., 2017. Prioritising marketing activities in different types of
marketing functions. Total Quality Management & Business Excellence. 28(11-12).
pp.1264-1284.
McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Philip, K., 2014. Marketing Essentials. A brief course: Translated from
English. Moscow:“Williams” Publishing House. 496.
Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital
recruiting. Handbook of Human Resources Management, pp.1-19.
Romero-Gutierrez, M., Jimenez-Liso, M.R. and Martinez-Chico, M., 2016. SWOT analysis to
evaluate the programme of a joint online/onsite master's degree in environmental education
through the students’ perceptions. Evaluation and program planning. 54. pp.41-49.
White Jr, T.H., de Melo Barros, Y., Develey, P.F., Llerandi-Román, I.C., Monsegur-Rivera, O.A.
and Trujillo-Pinto, A.M., 2015. Improving reintroduction planning and implementation
through quantitative SWOT analysis. Journal for nature conservation. 28. pp.149-159.
Online
SWOT Analysis / Matrix. 2012. [Online] Available through: <http://fernfortuniversity.com/term-
papers/swot/1433/1182>
What is a PESTEL analysis?. 2015. [Online] Available through:
<https://blog.oxfordcollegeofmarketing.com/2016/06/30/pestel-analysis/>
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