Marketing Essentials: Analysis of Marketing Strategies at McDonald's

This report delves into the marketing strategies employed by McDonald's, an American fast-food giant. It begins with an introduction to the core concepts of marketing, emphasizing its role in understanding market dynamics, customer demands, and building brand image. The report then outlines the...Read More

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function............................................................1
P2 Roles and responsibilities of marketing relate to the organisational context.........................4
TASK 2............................................................................................................................................7
P3 Comparison of ways in different organisation apply marketing mix for planning to achieve
objectives.....................................................................................................................................7
TASK 3..........................................................................................................................................10
P4 Produce and evaluate a marketing plan for an organisation................................................10
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

INTRODUCTION
Marketing is an effective tool for every organisation in the modern world. In this involve
a study which helps in understanding the particular marketplace, customers demands, build
profitable relations and maintain brand image, formulate appropriate strategies and provide
quality of products or services to the consumer. Marketing department play vital role in
achieving competitive advantages as they try to get attentions from customers. It can be defined
as the set of activity including buying and selling of goods or services by considering
advertising, sales and deliver to target audiences (Fazlollahtabar and Aghasi, 2012). There are
lots of competitions in the market so organisations are adopting various tools such as slogans,
punch line, packaging and designs of products and celebrities endorsement and many more for
effective marketing. This report is based on McDonald's which is an American fast food
company or restaurant and started at California, United States in 1940. they are selling several
food items such as Hamburger, Chicken, French fries, Soft drinks, deserts, coffee, breakfasts and
milkshake in the market. This assignment will define about roles of marketing function and how
they interrelate with organisation. It also compare different marketing mix with other company
and produce effective plan to achieve predetermined business objectives.
TASK 1
P1 Key roles and responsibilities of marketing function
Marketing is an effective process that support to the firm in producing, buying or selling
and delivering of goods and services to the target audiences. Every organisation consider the
several tools and techniques for increasing their profitability and productivities in an appropriate
manner. Marketing is an essential that support in increasing sales volume and create awareness
in the market in an impressive manner (Durmaz, 2011). In this defined as the procedures in
which analyse the market trends, situations, customers demands or needs and their choices so
that better goods or services can be provided and meet their desired expectations in an
appropriate manner. Therefore, company undertakes a market research and conduct survey in
which they gather data or information regarding current trends and make decisions in producing
goods or services to satisfy customers needs or wants. In the every organisation, marketing
department consider effective research and appropriate tools or techniques for the purpose of
accomplish set targets or goals. Marketing functions have number of roles and responsibilities
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such as planning of market and products, development, survey or research, sales procedures,
tools or techniques, financing, customers services or relationships. McDonald's which is fast
food company, focus on developing its business at global level. It is very famous brand and
reputed restaurant that has number of stores across the country. They believe in expanding
business at several countries so that business size or growth can be increased and they can
become market leader.
There are number of factors available in marketing environment that have major impacts
on the business operations. These are combination of internal and external which effects on
customers relationship and target audiences in various ways. Internal factors undertakes several
elements such as owners, machines, materials and workers (Fırat, 2013). External forces
involved demographic, economic, social as well as technological that cannot be controlled by
any organisation. It must be necessary to focus on effective marketing tools for surviving from
these forces so that competitive environment can be achieved in an effective manner. Marketing
department have to consider these factors and perform their duties or responsibilities to generate
funds.
McDonald's is growing fasts and has opened number of stores or restaurants in different
countries with the help of appropriate marketing research as well as strategies that conducted by
its marketing department in better ways. They focus on their functions such as market strategies
management, survey or research, sales support, product development and process of delivery etc.
for this, it is necessary to adopt better communications procedures for providing information,
distribution, selling and promotional tools for particular goods or services in an effective manner.
There are some functions of marketing of McDonald's firm which must be perform in very
appropriate ways such as;
Functions of marketing:
Here are some functions defined that support to the McDonald's to increase their
profitability and productivity. These also very helpful in creating good image in the market
among competitors.
Marketing strategies: This functions is very important for every organisation to become
successful in the competitive world as in this, manager or senior persons formulate effective
market strategies and procedures for reaching at target audiences to satisfy their needs or wants
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(Gertner, 2011). These strategies are very beneficial to enhance growth and market shares for
achieving set targets or goals.
Research or survey of market: This also an important function or activity that marketing
department perform. They try to identify target market, look for several opportunities and grab
those to get success. It is an essential which support in getting data or information regarding so
that company can understand about environment, current situations, new customers and
competitors so that better decisions can be made regarding goods or services. McDonald's also
conduct survey whenever they enter in new marketplace or country.
Developing products and services: Marketing department has responsibility to analyse
effective environment and focus on improving quality of their goods or services. they develop
existing products or launch new items as per the customers demands and requirements. Their
main purpose is to analyse or identify gaps among products ranges so that effective one can be
produced.
Communication procedures: In this, marketing department finds an appropriate way or
method for communicating necessary information to the target audiences regarding company's
new products or services in an effective (Hamilton, 2011). McDonald's consider several tools or
techniques for communication such as advertisements campaigning, promotional methods and
email marketing, print media, brochure and many other for providing information.
McDonald's is a fast food company that has been started as a restaurant in California.
They are dealing with number of food items in the market such as Hamburgers, Chickens,
French fries, soft drinks and milkshakes, Mc Puff pizza, desserts, coffee and many more in the
market. It has lost of restaurants across the country and several places so, they serve at World
Wide areas. They focus on giving franchisees to different people so that business can be expand
in more appropriate way. There are several strategies and methods which they adopted to make
better food items and delicious tastes. Here are their marketing functions that they actually
undertake such as;
Finance: This is necessary tool for running an organisation as it is back bone of every
firm and without appropriate funds, business cannot be run. Marketing department of
McDonald's consider proper financing to each or every marketing activities for the purpose of
promoting their goods or services effectively (Rowley, 2011). Therefore, manager maintain food
quantity and its quality soi that maximum wastages can be controlled. They ensure regarding
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durability of foods materials or stuffs which must be sell on time in an efficient manner.
McDonald's focus on creating budgets and generate funds for preparing and managing entire
activities by using all available resources.
Distribution channels: This another functions or roles of marketing department that
focusing on effective distribution channels for the purpose of reaching at potential customers.
Marketing department of McDonald's take corrective actions and make decisions that how
restaurants will serve its food products like they follow counter facilities instant of hiring any
wetter for offering services.
Pricing strategies: This is an essentials for getting more attentions from customers as in
this marketing department set appropriate strategies regarding pricing their products. Some
environmental factors can be affects on the business and its operations so that it must be required
to undertakes those forces while making charges (Jones, 2011). McDonald's always set their food
price's as per the competitions and customers values. There is less or cheap price of their
products as compare to Burger King and Domino's as well as KFC.
Promotional channel: It is very helpful component that support in increasing sales,
growth and market shares among competitors. Marketing department consider best tool or
suitable method for promoting their particular products or services in an effective manner.
McDonald's use efficient technique for promoting their new food products such as displaying,
brochure, hoardings, bill boards and posters in the store etc. these helps in attracting number of
customers towards firm.
Management of products or services: This is the moral duty of marketing department
that to manage and maintain the quality of products as well as services in better ways so that
target audiences can be satisfied. McDonald's also consider this function and create new food
items with different tastes so that customers can enjoy their foods with reasonable price.
P2 Roles and responsibilities of marketing relate to the organisational context
There are number of roles and responsibilities of the marketing functions that are
discussed above. Marketing activities are very useful in developing and managing brand image
among competitors so that potential growth can be achieved (Joshi, 2012). Company consider
several criteria and methods for marketing tools such as advertisement, segmentations, targets,
promotions and positioning in the market.
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Manager is responsible for making decisions and take corrective actions regarding
promotion of products or services. they also conduct market research or survey and gather
information about customers tastes, preferences, choices and their buying behaviours so that
effective strategies can be formulated and competitive advantages can be achieved. McDonald's
manager also consider about environment scanning so that better decision can be made in the
favourable of the company. They find customers tastes and then decide to make new food items
as per their tastes and preferences such as spicy, law fat, light and delicious foods and many
more for meeting their requirements. There are number of competitors McDonald's such as
Burger King, KFC, Domino's who are focusing on capturing market by providing varieties of
products with different flavours so that huge audiences can be attracted towards organisation.
There are some roles and responsibilities of marketing functions which are considering in
McDonald's for the purpose of achieving competitive advantages in an effective ways (Adil,
2013). These are given below:
Market research: Marketing manager focus on analysing current trends or situations by
undertaking an appropriate study and conduct survey so that necessary information can be
gathered so that company can make better decision regarding productions of goods or services.
McDonald's find customers tastes and their choices about food so that delicious food can be
provided to them for satisfying needs or wants.
Transportation: In this, Marketing manager take decisions and discuss about best
transportation ways for providing effective goods and services to the customers. McDonald's
generally decide the suitable way for supply chain to get materials so that effective goods can be
served. They are focusing on adopting best method that is Just In Time (JIT) which support in
reducing costs or expenses in an effective manner.
Maintain the quality of goods or services: This functions is very necessary to perform
because it is major factor that can affects on the selling of goods or services of a particular
company. Every organisation wants to attracts number of customers so that they can breaks
competitors market (Khan, 2013). Therefore, McDonald's consider Total Quality of Management
for the purpose of get attentions from consumers as it is the best strategies to achieve competitive
advantages by managing as well as maintaining quality of goods or services.
Risk assessment: Risk is a major factor that occur while running an organisation as there
are more chances of raising risks or uncertainties during operating business. McDonald's can be
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face several risks while offering new food item or entering of new competitors in the market.
Manager have to make an appropriate decision when invest funds, adopt new technologies.
Therefore, there should be effective strategies formulated so that goals and objectives can be
achieved.
New product development: In this, Manager of McDonald's always analyse new trends or
customers choices so that products can be manufactured as per their requirements. It is an
important function that support in increasing growth and create value as well as effective
position in the market.
Administration: In such department, manager divide tasks and set policies as well as
strategies accordingly for the purpose of achieving set targets and goals in an appropriate manner
(McDaniel, 2011). McDonald's is managing its business by better collaborations and cooperation
as entire departments are working together so that business operations can be run efficiently. It
will support in maintaining customers relations and make them loyal towards firm.
Better customers services: It must be required to satisfy customers needs or wants by
providing them goods and quality of services in an appropriate manner. Managers are
responsible for ensuring the customers services as how company are serving or treating to its
consumer for fulfilling their demand and needs. McDonald's always consider its customers and
give priority for their satisfactions level by providing better products or services to them. They
get feedbacks from their customers after offering food and then get information so that material
and food quality can be improved if result negatives. It is very beneficial to build relations
among them and create brand image in the market.
Human resource: This function is very compulsory for every firm that must be
performed in an effective manner. Human resource is related with managing people within the
firm as manager motivate to every employees for increasing productivity and enhance their
ability so that particular goals or objectives can be achieved in an impressive ways (Hair, 2011).
It will support in generating higher revenues as well as increase sales volume in effective
manner. McDonald's focus on serving best foods with better treatment of customers so they hire
educated and qualified staff members for their restaurants. They also provide training and
development programmes to the employees for enhancing their abilities, capabilities,
knowledges about activities that how to billing, cook and serve food in an effective manner.
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TASK 2
P3 Comparison of ways in different organisation apply marketing mix for planning to achieve
objectives
Marketing mix is defined as important tool that consist with several aspects which must
be considered while making effective strategies and decisions with favour of organisation. These
are beneficial for achieving growth and competitive advantages for every firm because in this
included 4ps and 7ps that support in making suitable strategies to accomplish set goals or targets
in more appropriate manner (Lamb, 2011). Companies take support of marketing mix tools for
building good brand image and reputations in the market. McDonald's which is one the most
famous food company or restaurant in the international market who provide varieties or products
as well as food items such as hamburgers, French fries and soft drinks so they are focusing on
creating brand values among competitors and build strong relations with customers. This will
support in making consumer loyal and retain them towards organisation. They try to adopt
suitable strategies and tools or techniques for promoting foods and services in the marketplace.
It is easy to understand about marketing mix of McDonald's with the comparison of
CADBURY as how they are applying these elements for surviving in the marketplace as well as
in the competitive advantages (Lane, 2016). They both deals in food company so there is needed
to consider best tool to make better position among competitors. There must be required to create
awareness into customers mind or between targeted audiences by undertaking some techniques
and methods in an appropriate manner. They both are popular brand in the international market
so it is easy to attracts more customers for purchasing their foods or services. here are
comparison their for understanding better such as;
Marketing mix
tools
McDonald's CADBURY
Product Products refers to any items and
material that serves to the customers
in exchange of values (Bengart,
2016). McDonald's is a food
company and restaurant that are
existing in different countries. It
Cadbury is dealing with variety of
products including biscuits,
chocolates bars, crème egg, dairy
milk with different flavours,
desserts, ice cream and many more
confectionery products in the
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deals in fast food products such as
hamburgers, milkshakes, soft
drinks, Chicken, French fries and
coffee in the market.
marketplace.
Price Price is generally defined as the
amount that pays by customers after
getting goods or services (Lehmann,
2016). McDonald's is very large in
the size so its prices is also high as
they provide better facilities with
food such as air conditioner
restaurants, sitting arrangements,
waters, wash room and effective
infrastructure that attracts
customers. Pricing strategies are
adopted by company which cost of
productions and competitors based.
CADBURY do not consider any
restaurants so it charge less prices
which is based on materials and
manufacturing of goods or services
as they charge only for 2 pounds.
They use their pricing strategies
including market penetrations, cost
leadership and competitors based
strategies in the market.
Place Place is an important tool of
marketing mix that must be selected
as per target audiences. McDonald's
is biggest fast food restaurant that
provide products or services in
developed cities or urban area
(Wang, 2015). They set their targets
audience and locations in big cities
because company think that people
belongs to village will not afford
such prices.
Cadbury is a confectionery
company who focus on covering
wide areas of market and sell its
products at global level. They
generally undertake strong and
efficient distribution networks for
delivering particular goods or
services at different areas and
locations.
Promotions In this defined number promotional
tools for the purpose of creating
Cadbury make strategies regarding
adoption of effective tools or
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awareness including advertisements,
public relations for selling goods or
services. McDonald's consider this
as lightly so they do not spend more
money on advertisement or any
promotional tools to promote
products (Lin and Li, 2015).
Company use several schemes and
attractive offers for promoting food
items in the market. They also use
TV and Commercial ads for creating
awareness among target audiences
in an appropriate manner.
techniques of promotions to attracts
more customers such as celebrities
endorsement, TV, Commercial ads,
posters, Hoardings and many more
so that company can increase its
sales in very efficient manner.
People These are also very important for
running organisation as people play
vital role in increasing potentials
growth and achieve success in
effective manner. McDonald's
consider better services provider
who can treat customers and satisfy
their needs or wants. They do not
involve stakeholders as less
importance to them and give values
to generate profits as well as
revenues within the firm.
In this company, they consider
stakeholders such as investors,
customers, suppliers and employees
who must be satisfied. They also
organise learning sessions for
enhancing employees skills or
knowledges so that better products
and services can be provided and
good relations maintained
(Lovelock, 2011). It is an essentials
for building good relationship
among different stakeholders.
Process It is defined as the process for
producing goods or services and use
transportation to deliver those to
final consumer or end users.
McDonald's use transparent method
Cadbury is a confectionery
company so they follow effective
procedures to produce healthy and
organic products and services by
considering customers health and
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for providing social safety or
security and also build trust in an
appropriate manner.
safety.
Physical evidence McDonald's is concern with
restaurant so they have to requires
for spending much funds for
maintaining environment and
provide better facilities to the
customers (Wills, 2013). They focus
on several criteria such as cleanness,
mineral waters, dust beans, wash
rooms, proper sitting facilities, air
conditioner and more things that are
managed for giving better services.
In this firm, they focus on effective
facilities and services to the
customers. Their main purpose is
transferring goods or services at the
end users in an appropriate manner.
TASK 3
P4 Produce and evaluate a marketing plan for an organisation
For every successful organisation, it must be required to make effective plan and produce
better strategies to achieve set targets or goals. In this undertakes various criteria to make
marketing plan such as missions, visions, objectives, budgets and strategies etc. these plans
generally formulated when company is going to deal in the complete new market (Malhotra and
Birks, 2013). Here is defined marketing plan of McDonald's such as;
Vision: To be a best as well as major fast food provider all over the globe. Provide a best
services, quality, value and cleanliness, so that we can make each consumer in each restaurant
smile.
Mission: McDonald mission of brand is to be a favourite consumer place as well as eating way
and improve operation to give the most tasty fast food for achieving the expectations of
customers.
Objectives
 Affordability of brand
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 Better operations of restaurants
 Growth of market share
 Beverage choice and menu variety
 Maintain customers satisfaction everyday within their restaurants
SWOT Analysis of McDonald
Strengths It has been successful enterprise since 1955. Additionally, 67,000 restaurant assistant and
managers of McDonald was enhance from the staff of restaurant. In 2005 Fortune
Magazines was listed McDonald as “Best place to work for minorities.” this organisation
invest $ 1 billion above for developing their staff as they give training to their employees
(Mihart, 2012). Company is having a successful brand name and advertisement as well
as competitive price. McDonald play a space for kids as well as clean environment.
Weakness
 McDonald pizza had test marketing and get failed to sustain their product within market.
Leaving them much less able to compete with their fast food chains.
 Higher rate of workers turnover in McDonald as higher money spent on employees
training.
 They have to spend on trends towards organic foods.
 McDonald have issues with change state in net profits and operating which influence
relations of investors.
 Product development is weak of McDonald along with that its price competitive
 Management of joint venture as well as Franchisee Spend to much on training of their staff members as well as having an brand image of an
junk food.
Opportunity
 In modern times of health conscious peoples introduce a healthy food is an better
opportunity for the organisation (Papasolomou and Melanthiou, 2012). Their should be a
fast service given to their customers. Choices of competitive health items can not involve
Hamburger.
 Give optional allergen free item of food like as peanut free and gluten free.
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 In the year 2008 the enterprise give efforts at chicken, beverages, breakfast and
convenience divisions.
 Growth of dining market as well as attract new customers. It gives an opportunity of franchisee sales
Threats
 Any supply of contaminated food mainly e-coli.
 Main competitors, such as Starbucks, Burger king, KFC and any mid range restaurant.
 They are creating a benchmark marketing in “cradle to grave.” they entice children within
their restaurants with playgrounds, meals, toys and famous character of movie (Pike,
2015). Children grow up enjoying as well as eating restaurants and then rapidly into adult
age.
 Know a days peoples are becoming more health conscious consumers.
 Threats of local competitors in various countries.
 Recession in global economic as well as changing in cost. Higher investment on campaigns of promotional along with that emergence of others fast
foods products.
Some environmental factors also defined here that can affects on the business operations.
Manager consider these all by analysing PEST for making appropriate strategies and actions
such as;
Political: This is major external factor that affects on the organisation including political
stability, trade restrictions, tax rates policies and employment laws etc. McDonald's is leading
various stores at global level so they have to undertake this.
Economical: In this defined various forces such as inflations rates, economy growth or
GDP, interest rates and many more that can affects on particular organisation (Wirtz, 2012).
Therefore, McDonald's requires to consider its effects and formulate better strategies.
Social factors: in this included several social aspects related to culture such as attitudes,
religion, income and populations etc. so it also has major impacts on the business firm regarding
food materials and others.
Technological factors: There are number of technologies available that must be adopted
by the company in an effective ways. It is necessary to keep up to date to the technologies within
12

the firm. Therefore, McDonald's have to adopt new advance technologies to survive from such
factors.
CONCLUSION
From the above report, It has been concluded that marketing is an essentials for growing
business and achieve competitive advantages in the market. McDonald's also consider several
tools or techniques for increasing sales volume and create positions among competitors. They
also use several communications process for passing information regarding new products and
food items. Company consider marketing mix tools such as products, price, place and
promotions while making effective decisions. In this report define about missions, visions,
objectives and SWOT of McDonald's firm.
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