Marketing Assignment: McDonald's Marketing Mix and Planning

This report provides a comprehensive analysis of McDonald's marketing strategies, examining the key roles and responsibilities of the marketing function, its influence on and interrelation with other organizational departments, and the application of the marketing mix within its planning processes. The report begins with an introduction to marketing concepts, current and future trends, and the specific application to McDonald's, a leading fast-food company. It delves into the core marketing principles, including the evolution of marketing concepts and the importance of market research, strategy development, and employee management within the marketing context. Furthermore, the report explores the interdepartmental relationships essential for McDonald's success, such as marketing's interplay with operations, finance, human resources, and production. The study then focuses on McDonald's marketing mix, comparing its strategies with competitors like Burger King, particularly in terms of product, price, place, and promotion. The report concludes with an evaluation of a basic marketing plan, highlighting the value and importance of marketing roles in the modern business landscape and the impact of marketing on economic development and customer awareness. This assignment is a valuable resource for students studying marketing essentials, providing insights into real-world applications and strategic decision-making within the fast-food industry.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function.................................................................1
P2 Marketing influences and interrelates with other functional department of the organisation....3
TASK 2............................................................................................................................................5
P3 Ways in which McDonald applies marketing mix to marketing planning process....................5
TASK 3 ..........................................................................................................................................8
P4 Evaluation of a Basic Marketing Plan........................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is an activity of a company associated with buying, selling,advertising and
delivering a product or a service . It is the social process by which individuals and groups obtain
what they need and want through creating and exchanging products and values with others. In
this assignment work are doing on McDonald's. It is an American fast food company and
founded in 1940. This company provides hamburgers, chicken, fish, porks and sauces etc. In this
assignment, evaluating the key elements of the marketing functions (Ahrens, 2011). And
tactically applies a strategic marketing plan to achieve marketing objectives by using marketing
mix.
TASK 1
P1 Key roles and responsibilities of marketing function
Concept of marketing,including current trends and future trends
Marketing is a process of satisfying the needs and wants of a customer by product or
service in exchange of monetary value. At least two parties is required to accomplish a task. For
instance Customers are now aware of their health so company understands this needs and brings
different types of products like sugar free, RO water purifier etc.
Concept of marketing
There are five concepts of marketing by which company's marketing is depends on
Production concept- This concept used to be the only concept which most of the
company follows that is produce more and sell more (Bellenger, Bernhardt and Goldstucker,
2011). Thus the cost decreases and profit increases. But now consumers are well aware of their
needs and buy accordingly.
Product concept- Company tries to make their product quality, performance and features
accompanied by latest technology at its best. Consumer prefer to buy the best out of options
available in the market. So this leads to increase in profit and sales.
Selling concept- Main focus of the company is to sell their products bellicosely and earn
profit. Fulfilment of the customer from the product is secondary.
Marketing concept- In this concept, company's focus is to satisfy the consumer needs and
make their product accordingly. Satisfaction is direct proportionate to sales. If the customer is
satisfy then sales will automatically increase.
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Societal marketing concept- Company will make the product according to customer
needs and well being of the society where they are living. Though this they can preserve the
society assets that is natural resources and earn profit by selling the product.
CURRENT AND FUTURE TRENDS
Current trends
1) Doorstop delivery of food.
2) Personalize mail and messages to every customer (Bird, 2012).3) Social media marketing.
Future trends
1) More focus on content marketing
2) Personalize Food to every customer.
DIFFERENT MARKETING PROCESSES
Marketing starts from the need generated by the consumer and ends at handling the
product to the customer. The process of doing this is given as follows.
 Situation analysis
Market is scan by the company through different techniques likes PEST or 5 C analysis.
By this company can easily find out the needs trigger by the consumers.
 Marketing strategy
When the unfulfilled needs are recognize, now its company responsibilities to find out
that how to satisfy them. Proper plan is made before launching the product.
 Marketing mix decision
Now company will decide 5 W and 1 H that is What,Why, When, Where, Who and How?
As all the strategy like design, quantity, quality decides here.
 Implementation and control
All the pre set strategy are decided are implemented and monitored by the company
management (Brooks and Simkin, 2012).
Role and responsibilities of a marketing manager1. Market research
Competition in the food industry is high as there are so many big competitor. So to cope
up with them and remains at the top McDonald's manager needs to scan the environment in
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regular basis. Besides this, consumer needs and demand should be well monitored and proper
action should be taken by the manager.2. Developing the market strategy
With the help of market research, strategy is made by the McDonald's manager with the
aim to increase the sales and satisfy the consumer need (Cabrera and Williams, 2014). All the
factors should be considered while making the strategy.3. Employee management
Marketing manager is responsible for the assigning of work to the employees. So
Manager should be well aware of the skills and capabilities of the individual and allocate
accordingly. As success of the McDonald's is because of the hard work of the employees.
P2 Marketing influences and interrelates with other functional department of the organisation
Marketing is the process of selling and promoting products through the help of
advertising and market research. It helps in managing exchange relationship. The main purpose
of marketing is to satisfy their customer's needs. It influences all others factors. In order to
survive in the competitive era, marketing should be done very effectively and efficiently.
Marketing has various relationship with other functional department in order to achieve
the goal and objective. These department helps in fulfilling the need and want of the customer. It
can be described as below:
Marketing and Operations
Operation is the real process of promoting, creating and manufacturing products. It helps
in creating transparent, accountable, efficient, competitive, profitable. The main purpose is to
create relationship and order for the company. It defines the goal of the company and work
accordingly. It also helps in the planning of market penetration, respond to market trends,
optimising channels, identifying new markets (Coombs, 2012). Marketing and operation together
have different role to play in the market. Marketing helps in defining trends, current scenario and
accordingly the products are produced by the company. McDonald's also requires this
relationship to make the work smooth and simple and accordingly performance is measured.
Marketing and Finance
Finance department make appropriate budget for distribution, promotion and research
with the help of marketing. It has brief of whole organisation to ensure financial capabilities. The
other department should work with the allocated budgets. Here, marketing focus on building
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market share and sales volume whereas finance concentrate on cash flow, investment.
McDonald's should make proper budget according to market (Cooper and et. al., 2014).
Marketing and Human Resource Management
Marketing department work with the human resource department in order to improve
skills and knowledge of the staff. The employees should be provided training for the new
products, competency. It is the duty of HRM department to maintain the balance of recruitment
and training demands of every organisation with the marketing. McDonald's produces different
types of product for the customer. Here, human resource manager should play important role for
providing proper training to the staffs.
Marketing and Production
Production department should know about the market. The proper research is done about
the customer needs in the current and future time period. The design and quality of the products
and items should be manufactured by the customers. According to the order, the delivery is
made. The ability of production is stretch by the help of marketing department. Marketers
provide product in the market to get competitive advantages. Whereas production department
manufacture and test all products to avoid from replace and repair. McDonald's should consider
the health and safety needs of the customers and manufacture products. This combine department
helps in increasing production.
These all interrelationship with other department is very important for McDonald's. As it
is a big company which requires each and every functional areas (Daniel, 2011). Thus, this helps
in achieving the goal and objective of the firm which ultimate increase profit, success and
sustainability.
Value and importance of the marketing role
In today's scenario marketing role is very importance for all types of firms. All the small
and large companies are competing each other. It helps in creating and developing relationship
with the organisation and market. Similarly, marketing role is important in McDonald's. It
provides information and create confidence for the company to introduce new product in the
market. It create customer loyalty, generates maximum sales and create goodwill. It also helps in
the exchange, movement and transfer of goods and services. As McDonald's is big organisation
which requires huge manpower to operate its business which generates large opportunities for
the employees. Through job employment, the standard of living can improve. It is source of
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revenue and income. Marketer can easily analysis the market and provide new ideas for
expansion. The role of marketing is never ending process. With the change in time and trends,
marketer need to cope up with it. With the new invention of similar industry encourages
McDonald's to bring innovation in their existing products to compete with the market. Economy
development comes from the marketing (Friis, 2012). The role of marketing is to create
awareness among the customers.
TASK 2
P3 Ways in which McDonald applies marketing mix to marketing planning process
Marketing mix is about placing the product in correct order, in correct place at correct
time. It refers to strategies or methods used for the promotion of a product or brand. It is
connected to 4 P's: Product, Price, Place and Promotion.
Comparison of MC Donald's and Burger King:
BASIS Mc Donald's Burger King
Product McDonald's provides
vegetarian menu, non-
vegetarian menu, beverages
and frozen deserts. The
company produces products
keeping in minds the
sentiments of the customers
relating to religion and culture.
It has isolated kitchen and
equipments for cooking
different items.
Burger king produces
hamburgers, cheeseburgers as
well as coffee, juice,
shakes,fries, hash browns and
pies. The company produces
products for customer to have
it in their own way. Fast food
items like swiss cheese and
mushrooms are been rotated in
the menu at regular intervals of
time.
Price The company provides
affordable products. They
follow cost leadership policy.
Mc Donald's also provide
many combos (Hsu, 2011). It
Burger king offers double
cheese burgers and slushy
drinks in order to offer an
alternative to Mc Donald's. It
uses both competitive and
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is a franchise which provides
food at low cost.
psychological pricing so that
the customer can afford the
products at a reasonable price.
Place It is located in Prime locations
like malls or shopping
complex. Restaurant are
covering many residential
areas. It is easily accessible in
all big cities which is
convenient to consumer. They
are also the right of the high
ways.
Burger King occupies
primary locations. It operates
its business through different
franchising options. IT has set
up food outlets in the metro
stations. The company has
supply chain network globally.
It generates incomes from
three sources: main company,
its franchises and the outlets.
Promotion The company advertises
through Television, radio,
online, theatre, posters,
newspapers and magazines.
They target on children in
“Happy Meals” where they
provide meals along with
small toys (Ionitã, 2012). They
also do promotion by
providing door drops, loyalty
schemes, lucky draws and
scratch cards. The company
displays hoardings at public or
major places.
The firm's promotional
strategy is to bring new
innovations in its product at
regular intervals. It's slogan
“Have It Your Way” has
become commutable with
Burger king. Advertisement
are given on television,
hoardings, roadsides,
newspaper and magazines. The
firm also provides scholarship
to the interested students. It
also sponsors events to reach
more customers. It also use
digital marketing strategy for
promotion. They invite
customer to show their talent
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via videos with motive of
winning a food item.
People The company provides
philosophy of cleanliness,
services, quality and value
(Jones, 2011). It also provides
fast friendly services. Mc
Donald's treats all the employs
equally and ensures customer
satisfaction at the restaurants.
The firm provides speedy
services to customer by
providing them with orders on
a continual basis. Customers
get their own drinks while
waiting for their meal. It
focuses on customer and
employees as well. It held
programs such as best
performer of the week to
motivate the employees
because happy employees
takes care of the satisfaction of
the customer.
Physical Evidence McDonald's interiors are
attractive and clean. They have
hygienic staff members. The
company has proper
infrastructure.
Burger king is in the process of
renovation in its infrastructure.
It has internet presence via its
website BK.com. The firm is
being located in a way where
it can gather audiences.
Process Mc Donald's produces food
with transparency and invite
customers to check the
ingredients used while making
the food. The company adopts
new methods of packaging and
distribution. It has also
invented efficient cooking
Process is internationally
designed by experts. Being
successfully operative it
maintained its taste ,work
culture, new product launch
and customer satisfaction
according to the respective
country. The company is
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equipments. Restaurants make
sure that the customer has a
clear view of what they are
eating by allowing their
entrance to the place where
the process takes place.
focussing on adding
restaurants. It seeks growth
and popularity by creative
promotional strategies.
TASK 3
P4 Evaluation of a Basic Marketing Plan
It is defined as the business document which shows marketing strategies and tactics. It
covers a specific period of time and variety of market related strategies such as cost, goal and
action steps. This plan is not static i.e. it changes from time to time as the business grows and a
new and developed marketing strategy comes into play. Here, marketing plan is discussed in the
context of McDonald.
Overview
It is an American fast food company having its global headquarter in Chicago. It is the
largest restaurant chain in the world serving 69 million customers in 100 countries. It has 36900
outlets as of 2016. It has the world's second largest private employer with 1.9 million employees.
Vision
The company has a vision to achieve growth and improvement in the food sector. To
compete with other international fast food giants the company has to develop the competencies
to manage the effects of competition (Kennedy and Parsons, 2014).
Mission
The company has a vision of establishing itself as an influential favourite fast food
destination. The corporate mission of company is “to be our customers' favourite place and way
to eat and drink.” To complete its mission the company develops its menu to satisfy consumer's
preferences with regards to fast food products.
Objective
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The company has main aim to serve good food for great value in a friendly, funny
environment, as well as being a socially responsible company that provides good returns to its
shareholders.
Segmentation, Targetting & Positioning
Segmentation
It is the marketing strategy in which McDonald divides its likely customers into different
segments. The created segments are those which define customers according to the interests,
needs, location etc. There are four types of marketing segmentation by which the company
divides its customers.
 Geographical: In this segment people are divided according to region and density.
 Demographical: Age, gender, life-cycle stage, income, occupation are the segments in
which people are divided.
 Behavioural: It shows the behaviour of customers to the company. Psychographic: It shows the lifestyle and social class of customers.
Targetting
It is the selection process after above strategy. It allows McDonald to target such
customers who are selected by segmentation to sell products. The company seeks specific
segments of it's target population and then customize product accordingly (Langer and Heil,
2015).
Positioning
Positioning refers to the selection of four p's which is more suitable for the targeted
customers. There are two types of positioning: low cost or differentiation. This is how McDonald
reaches to its targetted customers. The company has made itself to be a family friendly, low cost
restaurant in the fast food business. This is the position of McDonald in the market.
Marketing Mix
It is the strategy that is used by a company to reach to its targetted customers in terms of
product, place, promotion and price. Here, these marketing strategies are explained in the context
of McDonald.
Product: McDonald has products mainly composed of food and beverages. Among all p's
product is specific because McDonald is known for its burgers. However, the business gradually
expanded such as chicken and fish, deserts and breakfast meals.
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Place: Restaurants are the most common place where McDonald's product are
distributed. The main places through which the company distributes it's products are Restaurant,
Kiosk, Mobile application, Websites and others (Ahrens, 2011).
Promotional: This strategy shows how McDonald communicate with its customers to
promote it's products. The company uses different channels to promote it's product like
Advertising, Sales promotions, Public Relations and direct marketing.
Price: This element of marketing mix analyse the price range of products of McDonald.
It's main aim is to use prices to maximize the sales and profit. The company uses two pricing
strategies: Bundle and Psychological pricing strategy.
Marketing Budget
It is a marketing plan in terms of cost. The cost estimates the budget require to promote
products or services (Bird, 2012). It includes all promotional cost like advertising, employing
staff, office cost, and other expenses. Here, Marketing budget of McDonald is taken into
consideration:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 6500 9000 12500 16000 19000
Investment 15000 26000 30000 14500
Total 6000 24000 38500 46500 33500
Marketing outlay
Promotion 7000 4000 4500 3500 3650
Sales publicity 2500 2000 3500 2600 3000
Direct selling 4500 3500 6500 3500 4500
Total 14000 9500 14500 9600 11150
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Monitoring & Control
It is the role of the managers to monitor the tasks and metrics to ensure that the project is
in minimal risk. This process is mainly comparison between the actual performance and the
planned performance (Cabrera and Williams, 2014). If the actual performance doesn't meets
desire of the company, manager takes effective measure to do so. It is the process which
continues throughout the life of project.
CONCLUSION
In this report, it can be concluded that different key roles and responsibilities of the
marketing functions helps in finding concepts of marketing. Roles and responsibilities of a
marketing manager are also included in the context of McDonald which helps company to make
it's reach to it's customers. Apart from that, interrelations of different marketing strategies with
other organisational department is also done. Values and importance of marketing roles is also
explained here. A comparison is done in between McDonald and Burger King in the context to
marketing mix strategies. In the evaluation of basic marketing plan, overview, vision, mission
and objectives are discussed in the context to McDonald. Marketing budget calculates the total
costing of marketing.
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REFERENCES
Books and journals
Ahrens, C. D., 2011. Essentials of meteorology: an invitation to the atmosphere. Cengage
Learning.
Bellenger, D. N., Bernhardt, K. L. and Goldstucker, J. L., 2011. Qualitative research in
marketing. Marketing Classics Press.
Bird, A., 2012. The LinkedIn Essentials: Leveraging LinkedIn to Grow Your Business. Fair
Trade Digital Exchange, Incorporated.
Brooks, N. and Simkin, L., 2012. Judging marketing mix effectiveness. Marketing Intelligence
& Planning. 30(5). pp.494-514.
Cabrera, S. A. and Williams, C. L., 2014. Consuming for the social good: marketing, consumer
citizenship, and the possibilities of ethical consumption. Critical Sociology. 40(3).
pp.349-367.
Coombs, D., 2012. Strategic Uses of Alternative Media: Just the Essentials. Journal of
Advertising Education. 16(2). p.60.
Cooper, A., and et. al., 2014. About face: the essentials of interaction design. John Wiley &
Sons.
Daniel, J., 2011. Sampling essentials: Practical guidelines for making sampling choices. Sage.
Friis, R., 2012. Essentials of environmental health. Jones & Bartlett Publishers.
Hsu, Y., 2011. Design innovation and marketing strategy in successful product competition.
Journal of Business & Industrial Marketing. 26(4). pp.223-236.
Ionitã, D., 2012. Entrepreneurial marketing: a new approach for challenging times. Management
& Marketing. 7(1). p.131.
Jones, D. B., 2011. Pioneers in marketing: A collection of biographical essays. Routledge.
Kennedy, A. M. and Parsons, A., 2014. Social engineering and social marketing: why is one
“good” and the other “bad”?. Journal of Social Marketing. 4(3). pp.198-209.
Langer, D. A. and Heil, O. P., 2015. Luxury Essentials: Essential Insights and Strategies to
Manage Luxury Products. Center for Research on Luxury, University of Mainz.
Online
Introduction to Marketing Essentials. 2018. [Online]. Available through:
<https://www.edx.org/course/introduction-marketing-essentials-iimbx-mk101x>.
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