Marketing Essentials: An Analysis of McDonald's Marketing Strategies

This marketing report delves into the core elements of marketing, emphasizing their significance in organizational success. It meticulously examines the roles and responsibilities within a marketing function, illustrating how marketing interrelates with other departments. The report provides a detailed analysis of McDonald's, a global fast-food chain, exploring its marketing strategies, including the marketing mix and plan. It also covers competitor analysis, innovation, pricing strategies, customer communication, and customer relationship management. The report highlights the importance of customer service standards, metrics, and ROI in achieving marketing objectives, offering insights into how businesses can develop a competitive advantage and create value for customers. The report concludes with a comprehensive overview of the key aspects of marketing, providing a valuable resource for students studying marketing principles and practices.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
P1 Roles and responsibilities of marketing function..............................................................2
P2 Relation of marketing to various other departments.........................................................5
TASK 2............................................................................................................................................9
P3 Marketing mix ..................................................................................................................9
TASK 3..........................................................................................................................................12
P4 Marketing plan................................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................17

INTRODUCTION
“Good Marketing makes the company looks smart. Great marketing makes the customers
look smart”- Joel Chernov. Hence, this specifies that marketing is a very important technique in
order to retain the customers and sustain them for a longer period of time. Marketing is
researching about the customers so as to ascertain their needs and wants for development of a
product which could satisfy them. This document consist of marketing and elements which are
associated with it in an organisation. There is a complete description about a marketing plan, mix
and functions of an organisation which are directly or indirectly related to promote selling. A
justification for integration of various departments in a company have been specified in this
document. McDonald's is a huge chain of restaurants serving people in various nations
marketing strategy of which have been justified in this research. A company have to deal with
several elements in order to reach the potential of being successful which have been introduced
in this written report.
Marketing is a way in which a company creates, offers, satisfies, promotes its goods and
services in the targeted marketed. In other words, the act of promoting and selling products of a
company in a market. It is also a research which is conducted to ascertain the needs and wants of
the people available in market so that a company can manufacture according to that so as to
satisfy maximum number of customers (Achrol, 2012). McDonald's uses various techniques to
have proper marketing for the products and services which is provided by it so that more and
more customers can be attracted toward the food giant.
McDonald's is a food chain company which was established in 1940 by two brothers
Richard and Maurice McDonald's. It used to deal in hamburgers which back in time. Further the
company expanded its business and it diversified its products into various sections. The company
obtained trademark on McDonald's name and 'M' symbol with a description of “drive in
restaurant”. Than in coming time company was so spread with its business that it have many
food chains all over the world serving its customers. McDonald's was established in 1940 at San
Bernardino, California.
McDonald's is a global organisation as it have presence at all over the world with 36,900
food chains in 120 countries. It started from a street in California and ended up spreading its
business across the boundaries of native country. Its is world's second largest private employer
with 1.5 million employees working with it in various chains. McDonald's operates on matrix
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style structure as it have many food chains which are operating at various places. Hence, the
company have its board of director than it keeps on decentralising to manager and employees
who are working in a franchise of company which is situated at some other locations and needs
to be controlled.
The company works on a culture to attract more and more customers as well as it
operates in a way that all the employees from top to bottom are involved in working at the work
place. The company makes very high strategy to retain in a targeted market in which it is doing
its business (Brettel, 2011). There is full of enthusiasm and high working structure in the
company where everyone is ought to work with high quality and maintenance. It have a culture
for which employees wants to work as it provides various facilities to the employees.
TASK 1
P1 Roles and responsibilities of marketing function
Marketing is consider as building a relationship between a company, consumer and
product by analysing their needs and demands. Marketing is a wide terms as thus many people
constitutes this with selling as well. Thus, both these terms are differ in nature and have a
signified meaning as well. Marketing and advertising both are completely differ from each other.
McDonald's needs to understand both these things properly and utilise it in an appropriate frame.
A basic differentiation between both of these are stated as follow:
Marketing and advertising:
Marketing Advertising
It includes and consider as wide term in which
a systematic planning and its implementation
lead to take place.
This is a small terminology as compared to
marketing because it constitute about passing
information to target users.
It starts with target audiences and framing
appropriate plan for them as well.
Advertisement only stated for providing
information to target audiences.
Marketing supports advertisement Advertising support public relation
Thus, it is a basic differentiation between marketing and advertisement which need to
understand by managers of McDonald's properly so that better and appropriate strategies lead to
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be frame. It is an important thing which need to carried down by marketing manager of a
company so that suitable and appropriate performance could be maintain.
Competitors Analysis:
Another major thing which need to understand and conduct by marketing manager of a
company which consider as crucial role is to determine and organise a study on competitors. For
this context, marketing manager of a company evaluate several number of competitors like
Burger King, Domino z, Pizza Hut etc. All these are consider as major rivalry of business whom
marketing activities need to consider by managers of a company. This will support in gain better
and effective result so that suitable strategies lead to get frame out in order to accomplish al
objectives properly.
Supporting Innovation:
McDonald's always support innovation in order to which business need to determine
aspects of customers properly. From past many years, they are not introduce any new product in
their stream line which stated about lack of innovation in market. Thus, it is important for
marketing manager to determine taste and preferences of customers and bring new and
appropriate innovations.
A major thing which associated with business is to gain competitive advantage because it
enables them in order to sustain into market world. McDonald's are operating from past many
years and thus their products consider as reliable in nature. Thus, it is a only thing which support
them in order to gain competitive advantage and maximise profitability of large concern.
Set prices, margin and profit level:
Their prices are lowest to highest in nature which consider as appropriate for every group
of customer of society. Nominal prices always support in gain competitive advantage for
business as well as most number of customers attracted towards McDonald's just because their
profit margin is high as well as prices are low. Thus, it is important for marketing manager to
perform their roles and responsibilities properly in nature in order to accomplish and execute
their work properly in order to maximise effectiveness and efficiency.
Communicating with customers:
Communication is a major thing which associates with success of an organisation. It is
important for managers and authority of an association to facilitate appropriate and effective
information chain with all stakeholders of a company. This enables in order to gain competitive
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advantage by providing relevant data of product and services to ultimate customers. Although, it
is a best thing in order to maximise profitability by using suitable technique. McDonald's need to
frame suitable communication about their products and services to target customers. For this
purpose advertisement and digital promotion play a crucial role.
By using appropriate tool of communication, business management become able to
render and deliver relevant data about their products to ultimate customers. This support them in
order to gain better results. Marketing team need to perform this duty properly so that they lead
to maximise revenue of an organisation in order to maintain effectiveness.
Findings new customer and market opportunities:
Marketing team have to play a crucial role for an organisation in which they need to
determine all new customers as well as evaluate market opportunities. In such relation, business
need to conduct and organise an appropriate study for determine the new market world. In such
context, business need to use relevant and suitable models and approaches. Expansion strategy is
consider as beneficial approach for business in order to grab more and more customers from new
market world.
Although, determine such market area where business need to grow and expand their
number of operations as well. Finding new customer lead to made an appropriate user base so
that more appropriate revenue get generated. Marketing team have to perform this duty
effectively so that more and more opportunities of external market context lead to be gain.
McDonald's marketing team have to determine all new customers by evaluate such area where
business really need to expand. This enables them in order to gain competitive advantage so that
better and long term perspective get determine.
Attract, retain and grow customer base:
Overall work of marketing team is to retain appropriate customer base by delivering
effective and high quality products to ultimate user of a company. This factor enables them in
order to maximise number of customers for product and services so that chances of better and
appropriate revenue generation get increases. This is consider as overall consent for maintain
effective growth at market world. Marketing team of McDonald's need to consider all these steps
in their consideration for maintain suitable growth at market world in order to maximise profit,
growth and revenue. Hence, this consent get fulfil only through render high quality products as
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well as make offerings more appropriate in nature as well. This consent lead to support in attract
suitable number of users which work as expansion of consumer base.
Developing competitive advantage:
One of a major concern of business is to gain competitive advantage through which
business become able to maximise revenue. Competitive advantage consider as a beneficial tool
for in order through which sustainability in business keen competitive world get manage.
McDonald's burger are special in quality which consider as major factor through which business
become able to gain competitive advantage. This enables them in order to create suitable position
in market world and become as a leading retail food outlet chain.
Creating products and services which present value:
Customers generally consume such quality products which create some value for their
services. It is important for an organisation to use high standard quality raw material which lead
to increase chances of sustainability and support in maximising user satisfaction as well. Thus,
McDonald's need to manufacture high standard products and reduce humours which spread
against them. This section lead to maximise by efforts of marketing team through analysing users
perspective.
Delivering Customer Service Standards:
Business need to determine customers expectations properly and effective and settle
down standard against needs and demands of users. Thus, overall context stated that
management need to determine all such delivering properly in front of management and
employees so that potential customers get created in an appropriate frame. McDonald's need to
maintain a high standard in their products and services with nominal range so that chances of
better and effective customer base get enhance.
Provide metrics, tracing and ROI:
For determine the success it is essential to use suitable metrics into business so that ROI
gets evaluated properly. There are various metrics represent in business which need to
understand by business managers properly so that suitable gains could be promoted. Out of all
these McDonald's marketing team need to determine relevant metrics so that business become
able to get sustain into market world properly as well as track ROI effectively. In this consent,
Take Rate method consider as best one.
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P2 Relation of marketing to various other departments
Every business have a definite process of marketing and its functions which need to
understand by managers of a company effectively so that better results could be gain. Thus,
McDonald's need to evaluate their marketing process in an appropriate manner for which they
can use PR Smith SOSTAC framework in which there are mainly 6 stages evaluated properly
which stated as follow: Situational analysis: The first stage of this process is situational analysis in which
management need to determine about the current and present position of a company. The
current situation of a company describe and evaluate all major thing in an appropriate
manner so that best result could be gain. McDonald's situational analysis stated that they
have good market position in present context which need a little bit critical thinking about
all their marketing consent so that better outcome could be gain. Objective: For successful implementation of marketing process, business need to frame
several objectives which always support in make things appropriate and correct in nature.
For this perspective, management need to frame several objectives which support in work
as a guideline for all employees and department so that best outcome get promoted.
McDonald's global success can be attributed to an association performance and with
appropriate objective of a company all customers become better understood about value
of such large association and their deliverables. Hence, major objective of a company is
to increase profit by providing quality services so that customer become satisfy in nature
so that a reputable image get frame in outsource reach. Strategic planning: It is essential for an organisation to prepare some plan for future
context with suitable strategies so that better and highly appreciable outcomes could be
gain. Thus, strategic planning is an important factor for McDonald's whom are serving
best quality goods and services to each and every user. Strategic planning is important for
determine the path which facilitate in order to met with all objectives and targets. Thus,
for accomplishing all objectives and targets properly business need highly quality
standard staff members whom have better knowledge to deal with various customers of a
company. Tactics: These are details of strategy in which appropriate evaluation of each and every
technique get prescribed properly. Thus, tactics enable all staff members and employees
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of a company to perform their roles and responsibilities in an appropriate and effective
frame. McDonald's have to present their strategy in front of employees properly so that
best suited outcome could be gain in order to improve work and accomplish all goals and
targets effectively. Action: The most important thing is action or implementation of strategy. Action is
consider as most appropriate thing in order to gain success and accomplish all goals and
targets effectively. It is a duty of marketing manager to define all tactics properly to
marketing department employees so that they become able to implement all objectives in
a suitable frame which support in accomplishing objectives and targets properly.
 Control: Managers have to play an effective role in which they need to manage and make
suitable control on each and every proposed thing. McDonald's have to facilitate effective
control on every operation properly so that better and highly suitable outcome could be
gain. Although, it is a duty of managers to make appropriate control on all actions of their
employees and staff personnel so that objectives get accomplish with minimum wastage
of resources.
McDonald's is a very big and diversified organisation having its operations in many
locations. Hence, this justifies that its have many functional areas which jointly contributes to the
operations and goals achievement of the company (Huang, 2014). These function are related
with marketing directly or indirectly as they works to have proper sale of goods by satisfying the
customers. Following is an explanations to duties which marketing plays in the functions
McDonald's:
 Customer service
This department concerns with serving the customers with proper facilities and products.
When a company initiated marketing primary role of which is satisfying the consumers. Hence,
this department contributes in enhancing sales and retention of customers by providing them
with best services. Customer service department need to communicate with marketing team of
McDonald's so that marketing function lead to take frequent steps on all such consents which
face by their users. Thus, a major work of marketing team is to provide and deliver quality based
goods and services so that chances of dissatisfaction in customers get reduce. Although, this
relationship will support in resolve all issues and problems of customers which face by the user
of a company so that profitability get enhance.
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 Research and development
When a company works or makes any change it needs to assess and evaluate various
elements in order to get best solutions ans suitable data for the requirement. This department is
completely working for researching and development of new policies for development in
business operations (Jones, 2011). Hence, generating marketing in McDonald's will be initiated
by this department by first collecting the information for action according to scenario. It is a duty
of R&D department to make many new innovation and invention in a company marketing
function through which association become able to reach more and more number of users. This
will support in accomplishing all business objectives and targets properly for gaining better
results and outcome.
 Distribution
Choosing the best way to reach customers is very important and at the right time is
complementary. This requires the channel of distribution which helps the company to have
effectiveness in such activities. Marketing also aims at serving the customer which requires this
channel so that sales can be done properly. Thus, it is a duty of marketing team to adopt best
suited channel of distribution so that products get reach to target customers in an appropriate
frame so that business become able to enhance all working production.
 Finance
Commercialism boosts sales which generates funds in terms of revenue or profit which
helps in providing assistance to company in monetary terms (Kim, 2011). On a larger context
marketing might require deployment of fund but it also attracts a large number of buyer by which
funds are generated. Finance department need to provide appropriate fund to marketing team so
that they lead to launch many events and campaigns for creating brand awareness in various
sections of customers and society. McDonald's finance team have to apply relevant fund to
marketing team so that management become able to create brand awareness and loyalty among
all their target users of a company.
 Human resource
Human capital is the only way by which a company enables to reach its goals. This
specifies that they are very essentially required in the company. Likewise, marketing of product
require contribution of each departments people as it finally produces a product for which
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everything is happening. Hence, the people of the company are very important in making this
possible.
Another form of business in which association become able to expand their working area
is Business to business model and Business to consumer model. Thus, both of these are stated as
follow:
Business to business of McDonald's
A business first conducts market research and finds out customer's needs and wants and then
manufacture goods and services. Firms converts raw material into finished product for fulfilling
buyer' satisfaction. After the production of finished goods firms takes help form various
intermediaries such as wholesalers, brokers, agents and retailers for smooth functioning and
timely delivery to correct person and at right time and place. For continuous supply of resources,
an efficient supply chain is necessary, therefore McDonald's maintain good relationship with
their suppliers so that there is regular flow of materials and production do not stop. This help to
establish advantage over competitors as they complete order on time and become strength so that
they are able to utilise opportunities.
Business to consumer of McDonald's
Firm is setup to serve their users by delivering them all necessary items. Manager find out
suspect and then identify prospect which can be converted into purchaser who have willingness
and are ready to buy the product. Accomplishment of goals and objectives depend upon
salespeople whether they are able to achieve target and render services properly such that people
invest in same commodity again and again so that they are able to earn maximum amount of
profit. McDonald's establishes customer loyalty and association by offering quality items. An
enterprise need to convey information to their clients about existence of product in market, its
features and benefits and with passage of time innovating it to maintain amount of sale and to
fight rivalry from other business who provide product with same benefits.
TASK 2
P3 Marketing mix
McDonald's is dealing in food so it is classified as service industry. Hence, the company
have 7Ps of marketing mix which are to be followed while marketing plan implementation for
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