Marketing Essentials: McDonald's and Domino's Marketing Strategies

This report provides a comprehensive overview of marketing essentials, exploring key roles and responsibilities within an organization. It delves into the application of the marketing mix by different organizations, specifically comparing the strategies of McDonald's and Domino's. The report examines various aspects of marketing, including marketing information management, distribution, product and service management, pricing, promotion, and selling. Furthermore, it analyzes the relationship between marketing and other organizational functions such as production, finance, human resources, and research and development. The report also includes an evaluation of a basic marketing plan, providing insights into how organizations can effectively reach their target audience and achieve their business objectives. The comparison between McDonald's and Domino's highlights how different companies implement the marketing mix to gain a competitive advantage. The report concludes by summarizing the key findings and emphasizing the importance of marketing in the overall success of a business.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibility of marketing function...............................................................1
TASK 2............................................................................................................................................3
P2 Roles and responsibility of marketing with respect to wider organisational context. ..........3
TASK 3............................................................................................................................................4
P3 Ways in which different organisation apply their marketing mix.........................................4
TASK 4............................................................................................................................................7
P4 Produce and evaluate a basic marketing plans of an organisation.........................................7
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing has several definitions throughout the world. It is not just another function of
an organisation but has a role in overall functionality of a firm. Marketing is understood as a set
of activities that helps to add value to the goods and services produced by the company so as to
make maximum profit out of it. It is a set of activity that includes creation, communication,
delivery and exchange so as to provide value to the stakeholders (Lamb, Hair and McDaniel,
2011). It can also be understood as advertising of products or services that helps to add potential
customers. McDonald is one of the biggest firm in the industry of hamburgers and fast food
stores. It was established in the year 1940 by Richard and Maurice McDonald. Through its
various outlets throughout the globe it serves millions of customers daily and has become the 2nd
largest employer in the world with approx. 1.6 million employees working in it. McDonald has
divisional organisational structure. This company manages its marketing efficiently by using
various marketing tools so that needs of the market can be understood to develop products
accordingly. This report showcases why marketing is necessary for the growth of an organisation
and its relations with other functions of an organisation. It also highlights essential components
of marketing.
TASK 1
P1 Key roles and responsibility of marketing function.
It is incorrect to see marketing as just a way of advertising, it’s not just selling or
advertising. It has much broader sense where selling and advertisements are part of marketing. It
can be termed as strategical or tactical function that includes market research, auditing,
analysing, planning, development of product according to market needs, packaging, pricing,
customer services and distribution of products via different channels (Pike, 2015).
Various roles and responsibility of marketing function includes:
 Marketing information management: In the world, full of data every firm needs
information regarding customer needs, details of its customer plans and marketing
environment. Managing all these information is termed as marketing information
management. Companies uses this data to evaluate and understand the marketing needs
and develop products or services accordingly. It gives exact image of the environment to
aid McDonald in their decision-making process.
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 Distribution: It is a process of making products and services available to the consumers
at the time they want at the right place. Efficient marketing needs efficient distribution.
Companies like McDonald has to make an efficient chain of distribution so as to serve its
millions of customers on daily basis (Wirtz, 2012). There are basically three types of
distribution mechanism that are used:
Mass Distribution: In this strategy company decides to sell its products to masses by several
outlets throughout the globe.
Selective distribution: It could be understood by the fact that few products of McDonald are sold
only through selective outlets.
Exclusive Distribution: In this mechanism, some prime products are sold through premium stores
like McDonald Pizza is available at only few stores.
 Product and service management: It refers to activities in response to the market
opportunities that includes designing, developing, maintaining and improving products
and services. This management is done so as to handle various products or services that
the company offers. With the wide range of products, it is necessary for the company to
manage all these efficiently in order to make them available to the customers at right
time.
 Pricing: One of the essential components of marketing is pricing. In the era of price war
to have edge over the competitors it is necessary for the company to design attractive
pricing policy. This pricing is also done according to the brand Image that company has
especially in the case of McDonald which has its reputation in the whole world.
 Promotion: This is a part of the market mix which is essential for the overall success of
product or services and gain desired profit from it (Dibb and Simkin, 2013). Promotion
includes activities that helps organisation to reach to the customers, and tells them about
specialities that their products and services have over other competing firms.
 Selling: It is first transaction between buyer and seller where money is the exchanged for
goods/services to provide maximum value to the customer.
 Financing: Every function within an organisation depends on the monetary resources it
has. This is from the stage of purchasing of raw materials to selling of final goods to the
customers. It is a process of providing funds to various activities within the organisation
as per needs.
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TASK 2
P2 Roles and responsibility of marketing with respect to wider organisational context.
Marketing does not only have role in promotion of a product or services a company
produces rather it is a business philosophy in which satisfying customer demands is the base for
the existence of business. It has various roles and responsibilities with respect to wider
organisational context and they are as follows:
 Production management: Marketing assists production department in making products
as per market demand at the rate so that customers demands can be fulfilled on time. By
this company can achieve competitive edge over its rivals (Malhotra, Birks, and Wills,
2013). Meeting deadlines does not only include producing it but also testing it so as to
ensure less product failure. It is important for the McDonald to concentrate on demand
and supply chain of its wide ranged products.
 Finance department: Marketing works with finance department so as to ensure that all
activities in the organisation are achieved within the financial limits of the organisation.
Marketing department also makes its plans according to the budget allotted by the finance
department. Due to strong financial backbone of McDonald it is easier for the marketing
department to make its various strategic plans workable.
 Human Resource management: This department has a role of recruiting, selecting an
employee and training them as per company’s needs. It is important for company to hire
employees as per need in order to achieve business objectives (Hartley and Claycomb,
2013.). Marketing department helps HR department to select staff so as to meet
production needs.
 Research and Development: Marketing helps R & D department to do their research
and develop products according to the market needs and upgrade existing products as per
customer demands. This helps company to have competitive edge over others.
 Customer service: In any organisation interaction of customers and company officials is
very important in order to satisfy them.. Marketing team work hand in hand with the
customer service department to give them knowledge about the promotional tricks that a
company has made. It makes the promotional process easier and efficient.
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 Administration: Finance department assists administration department in their decision-
making process. Any change in the organisational structure so as to fulfil customer
demands is done with the help of marketing department.
 Information and communication technology: Technology influence is increasing day
by day in various organisational process. Marketing department use this technology so as
to make communication efficient on various levels of organisational structure. This helps
to ensure that project has been completed on time with various departments working hand
in hand.
 Sales: This department is the only ones to interact to the customers directly and has a role
of selling products. Marketing helps sales department in reaching to more number of
customers (Blythe, 2012). This is done for achieving higher pre-sales due to effective
marketing and promotional strategies used. This helps to increase the profitability of the
firm.
TASK 3
P3 Ways in which different organisation apply their marketing mix.
Marketing mix refers to the technique that makes marketing process easier and effective.
It helps to increase the sales of products and services produces by the company. It is a set or
combination of various processes that ensures purchase of product increases.. These all factors
need to be manipulated so as to influence the potential customers and make them purchase
company’s products (Jones and Rowley, 2011). In this part Marketing mix of McDonald is being
compared to Domino which is one of the rivals of McDonald and is one of most popular brand in
Pizza chain.
Seven P's of marketing mix:
Product
Domino McDonald
This company is widely known for its variety
of Pizza. It uses special boxes to keep pizza hot
and fresh. It has both the variety vegetarian and
non vegetarian which comes in all the three
sizes Large, medium and small. To capture the
This company produces wide range of products
that includes hamburger, chicken sandwich,
mac flurry ice creams, desserts, soft drinks,
French Fries, Oat Meals, Shakes, Coffee. This
company targets to add nutrition into its
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market Domino has worked on the concept of
localizing the flavors. Other than pizza it
produces Calozone pockets, Garlic Bread
Sticks, Pasta italiano, Spicy baked chicken and
butter scotch Moose cake. Beverages like coke
are also available in their outlets.
product range.
Place
Domino McDonald
They have maintained a direct channel with
their customer base through its number of
outlets. It is delivering its products through
13,811 outlets. Quality of restaurants are
excellent. This company also provides home
delivery services. Its main presence is in the
urban areas.
There are approximately 37000 outlets of
Mcdonalds throughout the world in approx 119
countries. It marks its presence is both in urban
as well as rural areas (Papasolomou and
Melanthiou, 2012). Company has selected
most appropriate places where people can
reach easily to open its shop. Quality of
restaurants in various public places helps the
company to increase its market reach.
Price
Domino McDonald
This company produces Pizza at every range.
Its main target market includes middle class
and lower class income group and especially
youngsters. It has made its uniform and
consistent pricing policy so as attract more
number of customers to its outlets (Desai,
2013). Innovative strategies to price helps the
company to compete with high pricing
This company has maintained its pricing at
constant and lowest level. In the price war it
beats all its competitors in the range of prices it
offers to the various sections of the society.
Some its desserts like Mac Flurry is one the
higher side of pricing where as it burgers are
on the lower side.
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companies like KFC and also with similar
pricing companies like Pizza Hut.
Promotion
Domino McDonald
Its policy of Door to door delivery has helped
company to reach to the newer heights. Its
promotional strategy of making delivery of
Pizza within 30 min of ordering other wise
giving pizza free gained a whole lot of
popularity. It advertises on the television or
local newspapers about its new products or
offers. Its discount policy on second pizza or
free small pizza with one large Pizza has
helped them attracting new customers (Baker,
et al., 2016). Lucky coupons and free cokes are
some of other promotional strategy used by the
company.
This company advertises its products through
newspapers and various other mass media
equipments. It uses public place holding like
bus shelters to promote its new products. Its
happy price menu was made so as to attract
new customers. T-shirts and mascots are used
to advertise products among childrens.
Process
Domino McDonald
This company has maintained its quality
services by their trained employees. They have
excellent ambiance and well supported for its
target market. Wide range of products under
same roof is delivered at considerable pace so
as to entertain maximum customers in a day.
Customers pay high to receive best customer
services from the outlets. McDonald also do
not disappoint its customers by their excellent
customer service with wide range of products
delivered through the hand of well trained
employees. Its known for its faster services.
Physical evidence
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Domino McDonald
This company produces products that are real
and tangible. Company offers products as
promised earlier. Basically products are made
in three sizes large, small and medium. It is
made of natural and man made products.
This company also produces products that are
tangible and can be taken from one place to
another (Swenson, Rhoads, and Whitlark,
2014). It does not fake its customers and
delivers products what is being promised
earlier.
People:
Domino McDonald
This company is known for its excellent
management services. It has locally owned
employees having excellent communication
and other necessary skills so as to increase the
profit margin of the company. Their training is
done from time to time so as to meet the
customer satisfaction.
This company has excellent employees. And
every outlets are owned by local vendors.
Excellent management and trained employee is
the trademark of this company and helps
company in achieving its market goals (Puddle,
2015). Their way of treating an employee is
highly professional.
TASK 4
P4 Produce and evaluate a basic marketing plans of an organisation.
Marketing plan can be understood as the part of the business strategy that deals with
making well written blueprint of strategic and tactical decisions that will help organisation to
attain its business objectives. Its gives a strategic foundation to the business. This plan has a
outline of companies current marketing position that helps company in making future short term
and long term goals. Basic marketing plan has a formal structure and includes processes like
market situational analysis, action programs, budgets, sales forecast and financial statements. It
helps to use company resources effectively. It has full analysis of weakness and strengths of the
firm.
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Fast food industry is growing day by day. With the increasing salaries of people eating
habits are also changing (MAYER, 2011). People do not have time for making foods and are
moving towards fast food. These changing habits provide wonderful scope of expansion and
flourishing of this industry. In last few decades these industries have penetrated in rural areas as
well and captured large part of local food industry.
McDonald is a American hamburger and fast food chain company well known in the
whole world for its wide range of products. It was established in the year 1940 as a barbecue
restaurant. It was founded by Richard and Maurice McDonald in San Bernardino, California. In
1948 they started there business of hamburger stand using production line principle. Till 1953
they started franchising with other partners. They are now planning to move global headquarters
to Chicago by early 2018. it has approx 30000 outlets in the whole world in 120 countries.
Objective of McDonald's
1)Company has a objective to provide quality, service, cleanliness and value every time
customer enters into the outlets to grow as a family.
2)To attain customer satisfaction by providing excellent services to the consumers.
3)To make more number of customers coming to the outlets and return with full satisfaction and
happiness.
4)Company wants to reach to more rural areas.
Marketing mix of McDonald
 Product : McDonald provide a long list of products from its various outlets. It has
developed a wide variety of products that are made according to the every target section
of the society (Rundle-Thiele, et al., 2013). Its main line products include Hamburger,
sandwiches, chicken, snacks, beverages, desserts, shakes, nuggets, fish, French fries and
some flavours from countries in which it is operating. It is basically known for its
hamburgers and breakfast. It is innovating new products so as to increase its market share
by attracting large number of customers.
 Place: McDonald restaurants are present almost at every place where people gather. They
distribute their products from various places so as to reach large part of the market. Some
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of the common places are Airports, cinema halls etc. it distributes through Restaurants,
Kiosks, Post mates website and McDonald app. Kiosk are used to sell its limited selected
products but these are temporary and used in seasonal events (Brooks and Simkin, 2011).
Its mobile app is used for claiming customers with special deals and finding restaurant
locations. It provides its services in well maintained restaurant.
 Promotion: McDonald promote its products to attract more customers to their outlets. It
uses various promotional mix like advertising, sales promotion, public relations, Direct
selling. McDonald advertisement is the best promotional tactics among various others.
Company uses TV, radio , local news paper and other online mediums to show its
advertisements. For example discount coupons and freebies for some products are one of
the promotional strategies used by the company. Its well organised public relations
activities supports its promotional campaigns. Its charity towards housing and
encouraging green environmental program helps increasing the brand image of the
company. Its mascot is used to attract children towards their outlets.
 Pricing: This company pricing strategy is very efficient and attractive. Wide range of
products are available at various price blocks starting from hamburgers at lower rates to
ice creams and desserts are available at higher pricing range (Akaka, Vargo, and Lusch,
2013). It produces products that are in affordable range and basically targeting middle
and lower class income groups. This company uses and understands the importance of
price bundling to attract consumers.
 People: McDonald is known for its excellent management department and highly skilled
employees. It helps company in achieving business goals in the given time limit. Their
employee treats every customers in a highly professional way with the flavours of local
society added to it.
 Process: This company is known for its fast services. Being in fast food industry it is
important for the company to make its operations faster. It is known to provide a wide
range of products through its outlets that has an excellent and clean atmosphere (Gertner,
2011). Its process is managed in such a way that demand and supply needs are fulfilled.
 Physical evidence: This company is providing customers with the same products as it
promised. The products are real and can be taken to any place where ever wanted to use.
This company do not fake its products.
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Market Analysis of McDonald:
 Competitors: There are many competitors of McDonald some small and some big. Some
of the biggest competitors of McDonald is Domino, Pizza Hut, Burger King, KFC and
many more. This company not only faces competition from these larger brand name firms
but also faces competition from local vendors of fast food as they have flavours of local
community. These rivals are making the price war more intense and that is reducing the
companies profit margin. Expensive advertisement campaigns from their rival is forcing
the company to use lot of money on the campaigns.
 Nature of Market: With the changing society eating habits have also changed. Nature of
marketing is changing throughout the world and its is a matter of concern for the
multinational companies like McDonald. People are getting more aware of the prices at
offered by different sellers. Increasing competition has forced company to lower down its
production prices. Salary demands of the employee are increasing (Hashim, and Hamzah,
2014). Base customers and their loyalties are not fixed and they are also looking for
change of options. These all things are needed to be checked by the cited company so as
to continue its sustainable growth.
 Customers: McDonald customers belong to various sections of the society. They attract
people that belong to various target markets. This was possible due to excellent services
and efficient marketing plans. Loyal customers are the main source of revenue generation
for the company. They have developed products according to the different target markets.
Their new products are developed according to young sections of the society (Bačík,
Štefko, and Gburová, 2014.). It has further divided its target market according to the
vegetarian and non-vegetarian items it produces. Customers come to their outlets for
eating foods at low prices and spending their time at the quality restaurants.
SWOT analysis of McDonald:
Strengths:
 McDonald has its worldwide presence that provides this company market edge over other
rivals.
 It is market leader in both local and global market.
 It uses its revenue of scale to win price wars and work upon cost reduction strategy.
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