Marketing Essentials: Roles, Mix, and Planning for McDonald's - Report

This report provides a comprehensive analysis of McDonald's marketing strategies. It begins with an introduction to marketing and its significance, followed by an examination of the roles and responsibilities of the marketing function within the organization, including marketing information systems, planning, promotion, research and development, and distribution. The report also explores the relationship between the marketing function and other organizational departments such as human resources, research & development, information technology, finance and customer service. Furthermore, the assignment delves into the application of the marketing mix (7Ps) to achieve McDonald's business objectives, comparing its strategies with those of Burger King. Finally, the report concludes with the development and evaluation of a basic marketing plan for McDonald's, providing a detailed overview of its marketing approach.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Roles and responsibilities of marketing function...................................................................1
P2 Relation of roles and responsibilities of marketing to wider organisational context.............3
TASK 2 ...........................................................................................................................................4
P3 Application of marketing mix to attain business objectives of firm......................................4
TASK 3............................................................................................................................................7
P4 Development and evaluation of basic marketing plan...........................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
Marketing is identified as an activity that is performed by business organisations in order
to promote and sell their goods or services in market. It is the process by which products move
from concept to consumer. For every business firm, marketing function is very essential as it
assists in communicating value and benefits of goods and services to consumers as well as also
helps in growth and sustainability of company (Baker and et. al., 2016). In the present
assignment, chosen organisation is Mc Donald's which is the world's largest fast food chain by
its revenue. The company is headquartered in Chicago, Illinois and offers variety of products to
customers. This report covers different roles & responsibilities of marketing function along with
the way in which it relates to wider organisational context. Apart from this, 7P's of marketing is
applied in planning process to attain business objectives as well as basic marketing plan is
developed and evaluated in this project.
TASK 1
P1 Roles and responsibilities of marketing function
Marketing function involves various roles & responsibilities which helps business firm in
effectively attain its goals and targets. It involves set of activities that are performed by
marketing team with the objective of promoting products and services of company in cost
efficient and better manner. In existing competitive market, taste and preferences of customers
are changing very frequently so, it becomes essential for firm to identify them in order to serve
customers in more better way. It also helps company in offering such products that completely
satisfy needs of potential customers (Berkowitz, 2016). In Mc Donald's, roles and responsibilities
of marketing function are defined as follows:
Marketing Information System: The fundamental obligation of each organization is
examine current needs and needs of their intended interest group. Association can take the
assistance of MIS which assembles all important data identified with customer's preferences or
abhorrences. This empower the firm to settle on better choice related with assembling of item or
administrations (Functions of marketing, 2017). In the wake of gathering the data, it disperse it to
the organization which help in settling on methodical choice in regards to the item improvement,
advancement, media and so forth. It mostly accentuate on gathering right choice and
demonstrating them at ideal time to opportune individuals. For example, Mc Donald's utilizes
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this framework to catch all pertinent data identified with the customer inclinations, so they can
adjust their item in like manner.
Marketing Planning: keeping in mind the end goal to achieve long haul objectives in a
strong way, Mc Donald's needs to get ready viable promoting plan. For instance: When Mc
Donald's at first dispatch its hamburgers they were not able hold vast piece of the overall
industry as individuals typically devour them in greater boxes rather in little one in which they
are putting forth. In any case, with the traverse of time, they understand that individuals are
inclining more toward desserts, beverages and other products so they begin creating according to
the essence of buyer which brings about expanding their piece of the pie by 10%.
Promotion: It implies publicizing or presenting specific item or market on tremendous
level in the commercial centre. By advancement, organization empowers the enthusiasm of the
intended interest group and make them to purchase the item (Brassington and Pettitt, 2013).
Association can utilize different special diverts as far as digital media, advertisement, social
media site and so forth. Such procedures are considered as the voice of organization since it
conveys or impart mark message to the enormous potential purchasers plainly. Mc Donald's is
utilizing all special instrument which gives them the upper hand over its opponents as none of
their rivals utilizes all sort of limited time strategies. They have begun their trip with TV
promotion, the alluded firm even support their item through acclaimed big names. For example,
they have made their own Instagram & Facebook page where they continue refreshing
recordings and audits of purchaser.
Research & development: It is one of the fundamental and vital capacity of showcasing
which is gainful for the business achievement and advancement. With a specific end goal to
present their item and administrations, organization can direct research in a compelling way
(Brooks and Simkin, 2012). Around here big business appropriately comprehend about its
clients needs and requests. It is additionally essential piece of the organization development since
it give whole data with respect to showcase patterns and customers taste or inclinations. So it is
fundamental for accomplishment of long haul and want targets of firm. Amid the examination,
an association can without much of a stretch distinguish their purchasers way of life, target
gathering and business position in commercial centre.
Distribution: After making the item, it end up essential for the organization to convey it
to its definitive buyer. In this way, dispersion manages development of definite products starting
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with one place then onto the next so it can eventually reach to its client. To influences its
appropriation to channel compelling and proficient, they need to attempt that following four
office, for example, transportation, warehousing, arrange handling and stock administration are
work in coordination. Mc Donald's is sparing their chance and place utility by conveying its item
in the commercial centre at opportune time which gives them the advantage of higher
aggressiveness level over their adversaries.
Above mentioned are the diverse parts and obligations of showcasing capacity which
help in accomplishing McDonald's general goal and focus in a useful way (Caragher, 2016).
P2 Relation of roles and responsibilities of marketing to wider organisational context
The process of fulfilling diverse needs and wants of target customer by providing them
such goods and services that creates value for them is termed as Marketing. It not only help
McDonald in identifying what are the actual likes and dislikes of customer but also assist other
key functional area of business so that all activities and operation can be carried out smoothly.
An organization is compromise of several department such as human resource, research and
development, information technology etc. Below mentioned are the inter-relationship that exist
between marketing function & different department of company are as follows:
Marketing and Human Resource Management: The primary role of HR manager of
McDonald is to recruit and select best and skilled candidate for the entity who with their
adequate knowledge and skill help them in achieving business target within its defined time
frame (Desai, 2013). Marketing is a platform through which HR manager can pitch plethora of
applicants so that they can apply for the given job vacancy in respective firm. For example:
McDonald allow candidates to send their resume through SnapChat.
Marketing and Research & Development: In today's competitive era, it is really
important for every business enterprise to keep a continuous eye on diverse needs and wants of
customer. There are various platforms through which likes and dislikes of customer are
determined. For example: When McDonald open their franchise in India, their R&D team have
analysed that Indians less prefer to eat hamburger. As a result, they introduce Burger as their key
product.
Marketing and Information Technology: With the help of latest and advance
technology, McDonald's can easily promote or advertise its products on vast level among target
audience. For example: Extensive use of different social networking sites like facebook,
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instagram help McDonald in fulfilling consumer needs in an effective manner. In addition to
that, it also aid in enlarging the market share and customer base of McDonald's.
Marketing and finance: Marketing department is highly interlinked with finance as without
having appropriate amount of funds, activities related to marketing can not be done. So, it is
required by finance manager to assign proper amount of fund to marketing departments so that
promotional activities of company can be conducted in proper way.
Marketing and customer service: One of the essential part of marketing operations is customer
service. Effective marketing helps in communicating customers about value and benefits of using
their products and provides the reason that why they choose firm. While, customer service
depicts them why they must keep coming back.
TASK 2
P3 Application of marketing mix to attain business objectives of firm
McDonald's, a fast food restaurant, was founded in USA in 1940. It started the first
restaurants in the UK in 1947. There are over 1200 McDonald's restaurants across the UK and
Northern Ireland which employ approximately 97000 people. McDonald is renowned and
world's leading restaurant (Dibb and Simkin, 2013). More than 70% of Franchises of McDonald
are run by local businessmen and woman in UK. Company invests $40million on employee
training and development every year in UK.
Marketing mix of McDonald's:
Marketing mix consists of seven 7ps (product, price, place, promotion, process, people,
physical evidence). In which company explain the 7Ps of marketing mix of McDonald's.
Marketing mix
elements
Mc Donald's Burger King
Product McDonald's is one of the growing fast
food restaurant in the world. It is
mainly focused on snacks&slice,
desserts&shakes, salads, and drinks. It
provides customers with a variety of
The firm offers veg. as well as
non vegetarian menus,
beverages, frozen desserts etc.
For attracting large group of
customers, firm provides some
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options. For example hotcakes, hash
browns, quarter ponder with
hamburger, cheeseburger, double
cheeseburger, vanilla shake, vanilla
cone, hot fudge sundae, kiddie cone,
hot caramel sundae, strawberry sundae,
baked apple pie, Mc cafe chocolate
shake, MCcafe frapped mocha are
some of the products offered by
McDonald's.
value to them by offering
innovative goods. Similar
products are provided by
company as that of Mc Donald's
(Gamble and et. al., 2011).
Price Price bundling strategy is used by
McDonald in which firm offer
bundling products. They provides
meals and other products to customers.
For ensuring that customers buy more
products, firm emphasize on
psychological pricing strategy that
seem affordable to customers.
Companies use a lot of price technique
to their product. value pricing, going
rate, cost plus pricing, price
discrimination and loss leaders are
some of the most popular pricing
technique. Basically aim of the supplier
is to provide the product on
competitive value driven price to the
consumer. But the franchises can
change their prices according to the
demands and locality (Hsu, 2011).
Offers and discounts are
provided by Burger King on its
provides which provides
competitive advantage to firm.
Market oriented staretgy of
pricing is used by company and
offer goods at low prices than
competitors for attracting
customers more .
Place Place refers to distribution. Stores of Burger king are
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Distribution is the process in which
company provide the product to the
consumer, where they can reach.
McDonald is operated in various
countries with more than 39,000
restaurants all over the world. Different
distribution strategy used by McDonald
for different countries. Like in many
countries, 24 hours service is provided
by them but some where not, another
example is that company provides
home delivery in some countries but
not every where so that's why the
distribution strategies differ from
country to country.
located at such places where
large number of population are
present. For distributing its
goods, firm use restaurants,
mobile app and websites for
delivery (Illing and Anders,
2016).
Promotion McDonald use advertisement for
promotion purpose. In fact restaurant
uses television, newspaper, magazines
and other media outlets to
communicate with tier costumers. In
current scenario, social media platform
is also utilized by firm for effectively
promoting its products in market.
Promotional tools like
advertisintg, personal selling,
public relation etc. are used by
company to promote its goods.
Tv and print media is also used
to advertise. Discount offer
coupons are provide by firm as
well to promote its brand.
People Lot of employees, labour, workforce,
engage in providing the services to the
consumers. So company provides
training to their employees for better
quality service. And increase the
market share of the company by
providing better service by the staff to
People involves workforce who
carry out operations of business
in proper way. It is the
responsibility of manager to
ensure that effective services
are provided to customers. For
this, they motivate their
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the consumers (Jones and Rowley,
2011).
workforce so that they
encourage to do their work
effectively.
Process Process is the set order for doing the
specific activity. McDonald's use
different activity to satisfied their
costumers. High technology processes
are used by company for providing
services to their customers.
Food manufacturing process of
Burger king is transparent to
customers. High technology
machinery are utilized by
company for manufacturing and
packaging of food.
Physical evidence Last element of marking mix of
McDonald's is physical evidence which
means that the elements of physical
environment visitors and customers
experience. physical evidence impact
not only impression on the consumers
but also the functions of the McDonald.
That is why the interior are attractive of
the restaurant and it is hygienic also.
One another factor is cleanliness which
helps firm in attracting more
customers. McDonald provides clean
surroundings to their customers in form
of physical evidence.
Physical apperance impacts
outsider's impression regarding
business and its functioning.
Physical evidence of Burger
king supports in attracting more
customers (Kennedy and
Parsons, 2014).
TASK 3
P4 Development and evaluation of basic marketing plan
Marketing plan:
It refers to detailed document that defines about marketing efforts and business
advertising for coming year. It includes details regarding all the business activities that are
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necessary for attaining marketing objectives within specified period of time (Lamb, Hair and
McDaniel, 2011).
Company overview:
Mc Donald's is one of the biggest fast food chain of world that offers variety of products
to customers all over the world. It was established and operated by Maurice and Richard
McDonald in California, United States. The company is known for its hamburgers and along
with this, they also sell French fries, soft drinks, cheese products, wraps, milkshakes, chicken
products and desserts.
Objectives of firm:
Main aim of company is to administer high quality products to customers and satisfy
them. Its main objective is to attain higher sales and gain loyalty of consumers towards brand.
Firm wants to maximize its revenue by 30% in next 2 years.
Vision statement of firm:
“ To become the world's best fast food restaurant by offering excellent experience and
quick service to customers ”.
Mission statement of firm:
“ To be primary choice of consumers in terms of high quality products, value for money,
excellent services, hygiene and cleanliness ”.
SWOT Analysis of company:
Strengths Weaknesses
 Strong brand image and reputation in
market.
 Hygienic, safe and high quality
product.
 Effective marketing strategy.
 Use of effective marketing tools for
promoting its brand name.
 Large number of market shares.
 Collaboration with Dannon yogurt,
Heinz ketchup and coke.
 Franchised operations and quality
control.
 High employees turnover rate.
 Weak product development
 Declining market share
 Taste and quality of product
 Slowed revenue and income growth.
 Disgruntled franchisees.
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Opportunities Threats
 Growing dinning out market.
 International business expansion in
emerging markets like India and China.
 Use of database marketing, CRM to
prevent brand switching.
 Emphasize on Corporate Social
Responsibility activities on continued
basis.
 Fierce competition in market.
 Changing demographics.
 Downturn or recession in economy that
affect sales.
 Increase in number of health conscious
customers.
 Fluctuation in foreign exchange rates.
Competitor analysis:
It involves assessment of weaknesses and strengths of current & potential competitors
(Mihart, 2012). It provides defensive and offensive strategic context to Mc Donald's to
determine opportunities and threats. Main competitors of firm are pizza hut, burger king, KFC,
SUBWAY, taco bell etc.
STP of firm:
One of the integral part of Mc Donald's marketing strategy is Segmentation, targeting &
positioning. Adaptive type of positioning is used by firm.
Segmentation Geographic, psycho graphic, behavioural and demographic aspects are the
basis of segmentation. Market is segmented by Mc Donald's as per the
income, age, behaviour, religious belief and taste & preferences of
customers.
Targeting Target group of Mc Donald's is youths, adults as well as children.
Positioning Adaptive type of positioning is utilized by Mc Donald's. Company involves
in periodic repositioning of products and services according to changes in
segment.
Marketing objective:
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