Marketing Essentials: McDonald's Marketing Analysis Report

This report delves into the core principles of marketing, using McDonald's as a case study to illustrate key concepts. It begins by outlining the fundamental roles and responsibilities within marketing functions, emphasizing the importance of strategic planning and adapting to market trends. The report then examines the interrelationship between the marketing department and other organizational units, such as finance, human resources, and research & development, highlighting how these departments collaborate to achieve business goals. A significant portion of the report is dedicated to comparing the marketing mixes of McDonald's and Burger King, analyzing their product strategies, pricing, distribution, and promotional efforts. Finally, the report concludes by creating a basic marketing plan for a business organization, demonstrating how to apply marketing principles to achieve specific objectives and gain a competitive edge in the market. The report covers finance, product development, packaging, market information systems, and distribution in detail.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing functions......................................................1
P2 Interrelationship of marketing in wider context of organisation.......................................4
TASK 2............................................................................................................................................6
P3 Marketing mix of two different organisations...................................................................6
TASK 3..........................................................................................................................................11
P4 Create a basic marketing plan for business organisation................................................11
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing is management process through which a company can introduce their products
and services in target market. Its main motive is to attract large customers and know their needs
and wants. In addition, marketing concept is also helpful in promoting and advertising products
of firm in competitive market. For that, managers are developing marketing strategies and
various tactics as how to attain and retain buyers for long term period in company. This is also
liable in building healthy and strong relationship with potential customers by providing them
value added products and services. McDonald's is the chosen organisation in this present
assignment, which is largest fast food chain in world. The main objective company is to render
qualitative and branded food products so as to achieve competitive advantage for a long term
period (Dibb and Simkin, 2013). The company operates 36980 restaurants across the globe and
it employs 375000 people as the end of 2016. Apart from this, present report will be discussing
about roles and responsibilities of marketing functions and how they impact upon growth and
success of cited company. It also consists relationship of marketing with other organisational
units. Further, marketing mix of two different organisations i.e. McDonald's and Burger King is
also explained in this assignment. At last, a marketing plan is created so as company can achieve
its goals and objectives from target market.
TASK 1
P1 Key roles and responsibilities of marketing functions
Marketing theory: - In this global environment, marketing is playing significant role in
order to achieve goals and objectives of the company. Its main aim is to satisfy needs and wants
of buyers in effective and efficient manner. Apart from this, marketing functions are assistive in
promoting goods and services of the company so as to attract numerous people in competitive
market. Before understanding marketing functions, it is essential for readers to know about roles
and responsibilities of marketing department within a firm.
If managers of McDonald's are able to improve their marketing concept as they can easily
achieve their current and future needs. For the same purpose, they have focused upon
recognising current market trends and make plans as to reach them effectively. In addition,
development of marketing concept helps a company to reach their potential customers.
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Apart from this there are many external factors which would put an impact upon
marketing strategies and policies of the firm. This might be reduced organisational growth and
performance through which it cannot be able to perform well in competitive market.
Strategic planning – Marketing strategy is a fundamental part which are developed by
managers in order to achieve sustainable competitive advantage and enhancing sales. Strategic
planning gives a opportunities to managers as they can evaluate firm's growth and profits for
future time period. In other words, it is a management activity that can be used in order to set
priorities, gives strengthen to operations and forces workers as they can tend towards specific
goals and objectives of the company.
Below mentioned role of marketing in a business organisation: -
 The main role of marketing is to develop effective strategies and policies to cover more
market place. In McDonald's, marketing manager are making some strategies with an aim
of increasing sales and profits. If a company has unique policies to grow in target market,
thus it can accomplish competitive advantage for a long term period.
 Another role of marketing is managing and defining company's brand. It means provide
quality and value added products to customers. Firm's brand value is very important in
order to increase its market share and growth (Wirtz, 2012). It also involves an
experience which a company wants to provide its potential buyers as they can interact
with company in an adequate manner. .
 Marketing department is also culpable in conducting surveys and further marketing
campaigns. In this, managers are focused on each phase of sales to maintain quality as
well as quantity of raw materials. In McDonald's, sales managers are emphasis upon how
to enhance communication from potential clients. This would help them in introducing
their products and services over target market.
 Effective marketing also includes marketing research. This will help in identifying
requirements and wants of customers so as managers can understand how goods and
services are perceived. With the help of marketing research, a company can also come to
know about strength and strategies of other firms as it is useful in attaining their goals
and objectives in competitive market (Marketing function, 2017).
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(Source: Outsourcing marketing, 2013)
Below mentioned some major marketing functions are stated as under: - Financing – The first function of marketing is financing, it means to take money for
make money. Marketing manager of McDonald's, it is important for them to find sources
of money i.e. loans, venture capital, investment etc. If a company has enough finance,
then it is can easily to spend more and more upon promotion and advertising activities.
Apart from this, finance also encompasses with the require capital so as to meet
marketing goals and objectives of the company. The cited firm has spent a lot upon on
their marketing activities in order to retain customers for long period of time. Product designing and development – This function has a significant role in selling
goods and services of the company. Customers will choose only those products which are
more attractive and branded (Malhotra, Birks and Wills, 2013). In product designing, a
company focuses on improving quality and design of its trades to attract wide range of
buyers. Effective and innovative design of trades are helpful in increasing sales of
McDonald's and make higher profits for it. It can be also said that specifically designed
products are helpful to gain competitive advantage for a commercial enterprise. But in
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Illustration 1: Marketing functions

order to maintain advantage , it is necessary for managers to develop such trades
regularly. Packaging, labelling and branding – A product's packaging includes its designing and
material which are used in order to make it more attractive and innovative rather than
other. Apart from this, labelling refers with putting required information on a product that
contain; manufacturing date, expiring date, uses, benefits etc. whereas branding consists
with brand name or a special identity of products through which customers are willing to
purchase them. In McDonald's, company uses different methods of packaging as per
customers’ demands in order to retain them for a long term period. McDonald's is a
popular brand in burger and French fries. For example- if a person wants to eat burgers
then he or she will prefer to go McDonald's rather than Burger King or anyone else. The
firm has strong brand value and also has many loyal customers who are responsible for
its growth and success. Market information system – MIS function of marketing helps in gathering data and
information within the firm. Marketing information system refers with efficient use of
technological resources in order to take significant decisions across the company.
McDonald's use MIS to improve productivity and performance level of employees. Apart
from this, it is also helpful in maintaining past records and financial information of
business organisations, so as managers can take analyse future market growth of the
company (Ko, Hwang and Kim, 2013). Marketing planning – Marketing planning is very important task for managers, without
this a company cannot survive in competitive market. It other words, this is a term
through managers can measure where they are and where they want to go. It is essential
for companies to plan each and everything if they want to achieve its vision and mission
in a certain time period. For example- McDonald's has covered 25% market share at
present but if it wants to achieve it more i.e. 35-40%, so entity needs to make a
systematic marketing plan. In addition, plan involves evaluation of all internal and
external which will put an adverse impact on company growth and success in future. Product distribution – It involves transporting and storing. Transporting means to
identify the way by which products and services will reached to their correct places
where they are required to be consumed (Lee and Walsh, 2011). It generates locational
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utility. Apart from this, storage consists with holding products in proper as well as
scalable manner.
 Risk taking – Companies also faces losses due to some unforeseen conditions. Risk
bearing in relations to marketing says that if a commercial entity purchase good in bulk
amount and stores them then the ownership is transferred to the person who has
purchased the product. It includes financial risk in terms of fall in prices and losses from
spoilages, fire, floods or any other reason.
P2 Interrelationship of marketing in wider context of organisation
In this modern era, business entity has several departments which are liable for
performing its different functions and activities. All of these units are interacting with each other
for taking important decisions and drawing a conclusion. In addition, if a firm wants to achieve
growth and success in minimum time period, then they have to assign roles and responsibilities
of each person or unit for gaining better outcomes. Marketing department of the firm plays a
crucial role for its growth and success. Apart from this, it also managers have to use marketing
planning process as well as marketing mix so as to make effective decisions which are liable for
growth and success of business organisation.
There are some major functions or units of business organisation and their
interrelationship with marketing is described as under: - Finance and marketing – Both departments are playing a vital role in a firm growth and
success. Finance and marketing department are shared a strong relationship with each
other. In this way, finance department of the company helps in providing financial
information and it is supports in creating budgets or accounting statement for firm. So as
managers can analyse that how much fund they need to spend in marketing or promotion
activities. Strong finance helps a business organisation to supply value added and
branded products to its potential customers. Finance managers also giving suggestion
towards when, where and how to invest funds in marketing. Therefore, in context of
marketing, finance department is liable in order to ensure that a business is running in
effective manner or not (Rollins, Nickell and Ennis, 2014). Human resource and marketing – In business entity, marketing and HR managers works
together to evaluate maximum utilisation of available resources. A company requires
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profitable customers for enhancing sales, but for that they needs talented personnel who
are capable to create long term growth. Marketing needs those people who can easily
interact with their consumers and pursue them to purchase products. If employees are
getting training and development assistance as they can easily perform in competitive
market. If company has well skilled and qualified staff members, then it would help in
achieving competitive advantages in an adequate manner. In addition, it is essential for
McDonald's to provide quality products and services to its customers but for that it must
hire technical and knowledgeable people with the help of HR department. Research and development and marketing - All firms have to adopt effective strategies
and policies to gain better outcomes. In terms of marketing, managers needs to focuses on
identifying needs and wants of buyers; it can be done through marketing research. This
could help them in formulating effective and innovative strategies which are able to
compete with external market forces. Marketing strategy of McDonald's is to focus on
research it consists with gathering more information about potential customers,
competitors, business climate and demographics (Brettel and et. al., 2011). Research
process also gives advices regarding new product development, customers choices,
cultural etc. If a company meet buyers' requirements then it is very easy for it to attain
sales goals and objectives. Customer services and marketing – In this global environment, companies having
separate customer services department which helps them to listen or resolve customers
queries and complaints. There are many issues of buyers regarding quality and quantity
of food which is served by McDonald's. Customer service department also helpful in
taking feedbacks and reviews about products and services of the company hence, to make
them more effective and completable from its substitutes. Business organisations have
specific promotion techniques i.e. online reviews and social media with these they can
easily interact with their potential clients. Customers service and marketing department
works together to attract wide range of people. Information technology and marketing – IT departments works closely with marketing
department in order to understand ultimate goals and distribution channels. The main role
of marketing is to manage relationship with their customers that is beneficial for it as
well as its stakeholders also. There are various tools of information technology, such as
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CRM, digital marketing (internet and mobile marketing). In addition, customer
relationship management is an applied term that is implemented by company in order to
manage healthy relationship with buyers (Hansson, Wrangmo and Solberg Søilen, 2013).
The software includes marketing, information management, processes etc. whereas
digital marketing is a technical process which is used in promoting products and services
of company by using innovative channels of distribution.
 Production and marketing – The prime role of operational and production department is
to focuses on quality of products and services. This units plays a vital role in resolving
quality issues of production. Marketing and production managers are depend upon each
other while taking important decisions. It is the main duty of operational department is to
innovate new products whereas marketing department helps in promoting such goods in
target market to gain high growth and shares.
TASK 2
P3 Marketing mix of two different organisations
Marketing mix of McDonald's is descried as below: -
Significance of marketing mix -
 The concept of marketing helps managers so they can make effective marketing strategy.
It gives sustainability to a product for a target customers base.
 It impact upon customers' decision making whether to buy or not.
 Marketing mix focus to put a right product on right place at its suitable so as to increase
sales and profit of the company.
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(Source: Introduction to the 7Ps of Marketing Mix, 2017) Product – In service marketing mix, product is known as an item or thing which are
intangible in nature. Products are consumed by customers in order to fulfil their basic
needs and wants. In context of McDonald's, the firm has served variety of fast food i.e.
cheeseburgers, French fries, chicken sandwiches, wraps, big Mac etc. Even, the company
also uses value added nutritions and branded raw materials in their products. McDonald's
products are perceived as healthy and its also provide daily meals services to their
customers for satisfying their lunch requirements. In this sense, it can be said that, cited
entity also take buyers sentiments in terms of cultural and religion. Therefore, it has
different food areas for veg and non-veg items. Prize – In UK food market, business organisation has prizing penetration strategy that is
really helpful to attract British customers. Due to economic recession, their people were
not capable to spend more on food items, therefore McDonald's has adopt such prizing
strategy in order to provide them healthy food meals on an average prize. This is the
main reason, so that company is become first choice of its clients. McDonald's products
also gives importance to brand and integrity i.e. it is a market leader of fast food. There
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Illustration 2: 7Ps of marketing

are many competitors of McDonald's are available they also have competitive pricing
strategy, this could impact upon its market growth and success (Opute, Dedoussis and
Tzokas, 2011). Place – This element of marketing mix is consists with the processes which is involved in
purchasing products to the end consumers. The company has established in 119 countries,
it have 36368 restaurant over the world. As McDonald's starts to aggressively expand in
rural areas also. The firm states that, it chose best locations such as highways, airports,
malls, near by industrial areas with an aim of providing value to their potential buyers.
Major fast food chains are moving towards cluster areas whereas McDonald's is going to
chose street locations. Promotion – While promoting its products and services cited company targets children
and adults. In addition, McDonald's also generate awareness among people by using
various media i.e. television, internet, websites, hoardings and posters. . It also conducts
different surveys and face to to face interviews to its consumers as to know their needs
and wants. This strategy helps the firm in giving it better and effective outcomes. The
main motive of promotion is to increase brand value, as many people can know about it
and its food products as well (Ogunmokun and Tang, 2012). McDonald's gives attractive
offers and schemes in order to attract target customers and maintain market share. Processes – In this element, business entity have to defined those areas which are helpful
in giving an unique experience to people when they entered in restaurant. Apart from this,
the firm timely published its annual reports and render information about its
manufacturing processes. So as customers can know about it. McDonald's also manage
healthy and hygiene environment. In addition, it allows customers to judge company's
values and standards by organising various programmes and activities, then implement
them within organisation. In these programmes, consumers are invited in order to check
or evaluate those ingredients which are used in food production. People – It is an essential part of marketing mix, when a service is delivered it should be
unique and novel itself. For example- in a restaurant, the behaviour of waiter was rude,
then it is seemed as bad service. Therefore, it is must for fast food companies to provide
guidance to their workers as how to behave with people. It is an ethical responsibility of
employee to be polite and cool in front of customers. McDonald's regularly provide
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training and development assistance to its existing workers for improving their skills,
knowledge as well as behaviour.
 Physical evidence – Area or location where a service is going to be supplied also plays a
significant role in marketing mix. It means, service location should be near by to buyers
as they can easily access to there. McDonald's gives level of comfort and an unique
service experience to its potential customers.
(Source: McDonald’s vs. Starbucks, 2017)
Marketing mix of Starbucks: -
Starbucks is a leading chain of coffee house. Its coffee and other drinking products are
very much popular among customers. The main aim of this firm is to deliver something more
valuable that is more than a cup of coffee to its customers. Below mentioned marketing mix of
Starbucks: - Product – Starbucks coffee is a premium brand which serve high standards and values to
its buyers. The company supplies 8 categories of drinks and 7 types of food products i.e.
burger, sandwiches, French fries etc. in order to satisfy its consumers expectations. Apart
from this, it also introduce consistently new and innovative food items i.e. VIA flavoured
coffees. Recently it has launched Tazo Tea. In addition, Starbucks also seasonal offerings
and discounts on its products on Christmas. In order to ensure brand richness, this firm
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Illustration 3: McDonald's v/s Starbucks