Marketing Essentials Report: McDonald's Marketing Mix and Analysis

This report provides an in-depth analysis of McDonald's marketing strategies, focusing on key marketing essentials. It begins with an introduction to marketing principles and explores the roles and responsibilities of marketing in driving sales and meeting customer needs. The report then delves into how marketing functions relate to wider organizational contexts, including human resources, finance, and sales. A significant portion is dedicated to examining McDonald's marketing mix, including product, price, place, and promotion, and compares it with that of Pizza Hut. The report highlights how McDonald's uses these elements to achieve its business objectives, focusing on customer satisfaction, market share, and competitive advantages. The report also touches on the importance of innovation, customer relations, and technological integration in marketing. Finally, the report concludes with a review of the effectiveness of McDonald's marketing efforts.

Marketing essentials

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1.................................................................................................................................................1
P2.................................................................................................................................................3
TASK 2............................................................................................................................................4
P3.................................................................................................................................................4
TASK 3 ...........................................................................................................................................8
P4.................................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCE.................................................................................................................................11

INTRODUCTION
Marketing is managerial activities assist to increase the demand of organisational product
or services. It provides the method of selling and distribution to enterprises in achieving goals
and objectives. For every business and non business firm require to successfully implement the
promotional activity to create well awareness in targeted customer. It is helps to understand the
desire of customer and create values then deliver to satisfy them.
The present report is based on marketing methods of McDonald's the highest fast food
chain supply in the world (Dibb and Simkin, 2013). It provides varieties in junk food such as the
hot-dog, hamburger, cheeseburger and milkshake to its customer. In this report included the key
roles and responsibilities of marketing, explanation of wider organisation function relate with
promotional activities, marketing mix elements in business functions of the company and way of
development the planning and strategy to effectively done the marketing actions to meet the
goals and objectives.
TASK 1
P1
To promote new launch or increase the sales volume of innovative goods or service
marketing is very essentials. It provides necessary information to producer to adopt best ideas in
creating suitable values for consumer. The major role and responsibilities of marketing are
described as under;
Focus on customer need: the primary role of promotion is make aware producer with
desire of the customer, without understand the requirements of consumer is not possible for any
business entity to operate its function and meet with goals and objectives. Internal and external
channels contribute in listening of desire of them ((Hair and et.al., 2008). Company survey
included in domestic source while the social media platform is involved outsider sources. These
two has major contribution in communicate with demand of consumer.
Monitor and track market competition: it is very crucial for promotional department to
understand the position of organisation in market. It can done through evaluate the products or
services, market-share and competition offered goods and their strength and weakness. Effective
tracking helps to enterprises to develop plan to launch new things to customer.
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Create cooperation effort with company's marketing ally: to promote goods and
services it is very important for each organisation to keep relationship or coordination with
mediators such as the suppliers and various promotional agencies to develop a suitable idea and
strategy to tell the message of company to higher number of customers.
Innovation: it is extremely essential to make shock to consumer through offer superior
service and goods (Lamb, Hair and McDaniel, 2011). For example provide number of flavours of
shakes at fast food restaurant attract the customer to consume at least one time that particular
product. It can done by adopt latest techniques of production and sales and distribution.
Determine budget of promotion activities: it is very importance to understand the
requirement of cost of further years marketing activities and defines source there organisation
can gain needed finance to perform promotional actions more cost effectively.
Improvement in customer relation and sales process: role of marketing is vital in
create and maintain the relationship with consumer that is fruitful for enterprise. Better services
of queries resolutions and selling and distribution of the organisational goods can be done
through implementation of marketing planning in superior way (Shoemaker and Shaw, 2008).
Survey and feedback campaigns provide essentials suggestion and instruction of consumer.
Helps in using technical resource in promotion: in present time consumer become
more techno friendly. Most time they use gadget in order to opt product or service through
internet facility. So marketing helps to understand the value to coordinate with technology by tie
up with various e-commerce website to deliver the desirable goods and service to existing and
potential consumers.
Provide growth opportunities: the contribution of marketing is very wider in growth of
business. It helps to identify the new market region to offer goods or service of organisation and
build the relationship with targeted customers (Berkowitz, 2010). For example launch food chain
in rural areas assist to capture the new consumer.
Competitive advantageous: effective use of marketing helps to gain essentials
information of rivalries goods and service, their market-share, strategies and planning of
promotion and selling of product aid in develop more powerful blueprint to enjoy competitive
advantages.
Contribution in strategies formulation: successfully conducted market research
provides useful facts and information to organisation which is beneficial for business entity to
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develop more appropriate marketing approach and use more suitable source of selling and
distribution channels through understand the requirement of promotional tools such as the
advertisement and public relation (Lipsman and et.al., 2012).
Communicate with customers: time to time interaction with buyer assist to build up
sufficient communication system that is beneficial for the organisation as well consumer. Form
producer side it helps to create needed value while purchaser prospective they can provide
essentials suggestion to improve the quality of product and service.
P2
Relation of marketing role in wider organisational context: in organisation there are
various function department that contribute in accomplish goals and objectives of the business
entity (Homburg and et.al., 2009). The following discussion helps to understand how marketing
role and responsibilities relate with other branch of function in enterprise;
Relationship between Marketing and human resources management: HRM is
mechanism to recruitment and selection of number of personal within the organisation to
perform various tasks with greater efficiency. Development of training and development
campaign and performance monitoring and appraisal are liabilities of manager of HR
department. While marketing branch is liable to promote goods and service among the huge
number of customers. Effective promotion helps to HR executives to create promotion vacancy
and recruit capable to perform assigned task to meet objectives of enterprise. Achievement of
delegated responsibilities to employees of marketing helps to human resource manager to
develop the plan for their career growth by increase in the salary and position within the
organisation.
Relation between finance and marketing function: to operate business activities is
very crucial of proper management of fund among various operations. The role of marketing is
very crucial in supervise the fund. The promotion worker provide necessary information to
finance manager to allocate the available monetary resource in various activities of promotion.
For example finance department of Next PLC provides £1 million to spent over the
advertisement of product in next years. Marketing helps to understand the sources of capture the
money from the investor (Jones and Rowley, 2011). Effective demonstration of organisational
goods and services with intend of getting huge amount investment from the employees of
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promotion are very crucial. Thus marketing role is very wider in financial operations of the
business.
Promotional roles in sales function: sales and marketing are interrelate better use of
promotion assist to organisation to increase sales output that is beneficial for business to enhance
the market share and gain superior profit. Market research assist setup suitable location for store
there organisation operate more cost effectively. It is based on the availability of raw material,
labour and transportation resources to perform in better way of production and sales activities.
Customer relation and marketing: these two are have close relation. Promotion
function aid in increase the customer satisfaction level by understand their expectation and
proper review about provided suggestion in production of goods and selling and distribution of
product of business entity (Afridi, 2009). At McDonald's customer feedback conduct through
survey and public relation by gaining knowledge about their preference for offered product.
Thus the above relation described marketing role and responsibilities relate with wider
organisation context in achievement of goals and objectives.
TASK 2
P3
McDonald's is largest fast food suppliers with huge number of store to deliver better
experience to its consumer. In United Kingdom company face highest rate of market competition
form the others junk foods organisation such as KFC, Pizza hut and others. McDonald's using
effectively the marketing mix elements in its promotional activities. In the present situation
following gaols of enterprise are under below;
 Provide better quality in fast foods.
 Increase the level of satisfaction with better customer's service to targeted consumers.
 Enhance market share and growth of the company (Papasolomou and Melanthiou, 2012).
 Gain advantageous of competitive market.
To meet with above objectives company use the marketing mix elements to perform
better its business functions. In traditional promotional mix had 4 components- Product, Price,
Place and Promotion now 3 additional elements are involve in it; People, Process and physical
evidence. These parts of marketing used by higher authorities of organisation. These are based of
the planning and strategy development of the promotion campaign to achieve goals and
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objectives of enterprise. Every business entity use these tools according their suitability so that it
can possible the comparison of marketing mix of McDonald's and Pizza hut that are described as
under;
Product: this is basic or first component of promotional mix of every organisation
(Gertner, 2011). In the case Pizza hut offers the number of varieties in Pizza like the veg and
non-veg, cheese, cream, pizza along with it offer product by special features and taste on the
basis of the region such as the Italian, American-Italian and Mexican etc. while the McDonald's
offer the number of products of burger like hamburger, cheeseburger, French fry and milkshakes.
Pizza hut design its product for group of people, lunch and dinner basis on the other hand
McDonald's offer various different categories in offered product in combo pack for the special
occasion and regular diet of the customer. Company provide the different type milkshakes along
with burger and French fry. Enterprise have advantageous of greater product range as
comparison of other.
Price: the next important elements of marketing mix is price of the offered goods to
targeted customer. It can defined as the monetary worth of company's product. Every enterprise
set their goods value on the various basis like price skimming, competitor pricing strategy and
low pricing strategy. In comparison of this component in promotional mix the price of
McDonald's goods is less than Pizza hut (Mihart, 2012). In this context value of product are
determined on the basis of quality of these product. The brand image affect the price strategies
along with it, government rules and regulations and competitor policy of goods value affect this
functions. McDonald's can gain pricing advantageous in this element of marketing mix because
of the price it product is less than the pizza hut goods.
Place: this element of marketing mix relate with location of the store where company
offer its goods to target customer to meet with its business objectives. The location selection of
the both organisation is closely same these two target the metro city consumer for their product.
But little different the number of street location store of McDonald's is greater than Pizza hut.
Both company using home delivery service on order of demand of the customer (DURMAZ,
2011). In this elements these two are stand at same level. McDonald's have opportunities to
expand its store in small regions in the country.
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Promotion: it refers as the choosing the suitable channels of promotion for the offered
goods or service to target customer in market. The comparison between these to can understand
by following;
Combination of promotional mix: it refers as the all the tools of promotion put together in create
awareness about the goods or service to targeted customer. It includes advertisement, personal
selling direct marketing sales promotion and public relation (Flint, Larsson and Gammelgaard,
2008).
( Source: Integrated Communication Mix)
McDonald's using the this approach of promotion to increase the demand of its product among
existing and potential customer's. Company using the digital and print media to communicate the
buyers. On the other hand Pizza hut not using public relation and personal selling marketing
process.
Techniques of promotion: the first company have advantageous in using greater tools in its
promotional campaign for its goods. company using public relation, advertisement and direct
marketing through social media. (Ogunmokun and Tang, 2012)
People: it relate with people of the organisation who performing various activities within an
organisation to help in achieve goals and objectives. The comparison over this marketing
element described as under;
Roles of the front employees: it is very crucial for each business entity to define role and
responsibilities to all workers. McDonald's appoint skilled personal at store to quick resolution of
customer's queries while Pizza Hut using unskilled and freshers employees those not have
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Illustration 1: INTEGRATED COMMUNICATION MIX

require capabilities to provide satisfactory solution of the consumer queries due to lack of
experience.
Personality, behaviour and attitude of the employees: these are have huge impact over the
function of every business. Positive thinking and problem solving approach of workers assist to
increase the level of satisfaction and perception of customers. At Pizza hut using low skilled
employee they do not have proper knowledge the way of attain people at store (Gundlach, 2007).
Physical evidence: this elements of marketing mix refers as the way of presentation or
packaging of goods that going to be offer to customer. McDonald using effective packaging in its
product. For the kids segment company provide the toys with its goods. Organisation have
adequate number of female staff to treat consumer politely on the other hand Pizza hut using
unskilled employees at front operation which put negative impact on customers mindset.
Process: it is entire cycle of the provided goods to end users. The difference between these two
organisations where McDonald's using continuous improvement in its business process while the
Pizza hut focus on the present way to deliver of value to consumer.
Contribution of marketing mix (7P's):
importance of new marketing mix approach assist more than as comparison of traditional
promotional mix which extend to people, physical evidence and process (Nan and Heo, 2007). It
provide better grip to business in more effective implementation of the planning and strategies
over the corporate function. It contribution can understand as under discussion;
Process of marketing planning: the 7 assist to developing better market plan to get competitive
advantageous. Its provides systematic method to identify the opportunities and growth than
develop planning through scientific analysis and give effective control over the implemented
ideas of marketing.
Strategy formulation: this elements of marketing mix assist to generate the better strategy to
meet long term goals of enterprise (Du, Bhattacharya and Sen, 2007). Conducting research aid in
developing the effective blueprint of promotional activities to create awareness for new launch
and innovative product to increase the market share along with competitive advantages.
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TASK 3
P4
Marketing plan is kind of documents which provide the blueprint to identify the
opportunities in new market. Goals of the corporation, promotional cost and tools, planning
implementation and control in effective manner to launch new product or innovative product. A
good plan of marketing helps to get direction to achieve the predetermined mission of the
corporation. As importance of product the plan of promotion also very crucial for each business
entity. Goods can not identify without adopting of the marketing. McDonald's is one of the
largest fast food company which having huge number of store to satisfy the need of the
customer. In this present scenario company looking increasing the loyalty of the customer and
gaining the competitive advantages. The following steps are included in development product
promotion idea (Marin and Ruiz, 2007).
Situation or market environment analysis: the primary stage of the development of
promotional plan for new launching product and innovative goods. It is necessary to scanning the
environment of business. It two types of situational study internal and external. SWOT is refer as
the internal while PESTLE or PEST known external analysis.
Internal analysis: in this types of scanning the study of the inner conditions of the organisation, it
includes that strength, weakness, opportunities and threats.
Strength of the McDonald's:
 Brand image of the company.
 Huge market share.
 Availability of necessary resources.
 Wider range of the products.
Weakness of organisation
 Poor management of subordinates.
 Higher cost of production (Du, Bhattacharya and Sen, 2010).
 huge spent over the R&D.
Opportunities for the McDonald's
 New market opportunity.
 Higher sales volumes.
 Expansion in range of product.
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Threat for enterprise
 New entrance.
 Higher competition.
PESTLE or external analysis: it included outside factors that affect the organisational operations.
Political, economical, social, technological, legal and environmental factors are involved.
Enterprise must set planning and strategies by proper matching with rules and regulations which
impose by the government regarding health and safety of workers, minimum wages act, equality
act and leave provision to employees of the organisation. Economical analysis cover the
economic factors like inflation, interest rate and currency exchange rate (Peloza and Shang,
2011). Adverse situation or movement in economy affect the business function of the
organisation. Social factors refer as the interest of the society. Organisation must set its business
planning and strategies which is more suitable for the community. In technological aspect
organisation must upgrade its mechanical resources to fulfil the demand of the customer in the
market to gain the advantages of competition. Legal include the various laws of the country
avoidance of it create difficulty for the organisation to run its business functions. Environmental
factor provide or secure the climate from harm. It is ethical duties for each organisation to
maintain nature.
Thus situational analysis is very crucial for the McDonald's to develop effective
marketing plan. Company should consider all external and internal factors.
Objectives: defining the objective is very crucial in marketing planning without determination
promotional plan can go in wrong direction. It provides the information what and why the
marketing is doing. Without objective the planer can't go in right direction (Vaaland, Heide and
Grønhaug, 2008). The goals of McDonald's is to increase the customer and prevent their shifting
to other brand.
Strategy: it is basic blueprint which provide the essentials information to perform various
business activities in effective manner. In this context of McDonald's the strategy is based on
optimum use of the marketing resource to increase the market-share and customer along with
gain competitive advantages. Proper research assist to making more useful strategy of the
promotional to minimise the wastage of the resources of enterprise.
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