Marketing Essentials: McDonald's and Aldi Marketing Strategies

This report provides an in-depth analysis of marketing essentials, focusing on the roles and responsibilities of marketing functions, with specific examples related to McDonald's. It explores the significance of effective distribution, providing high-quality products, setting affordable prices, and implementing promotional strategies. The report also examines the marketing mix of both McDonald's and Aldi, comparing their approaches and strategies. Furthermore, it outlines a basic marketing plan for McDonald's, covering aspects like financing, innovation, and competitor analysis. The report highlights the interconnectedness of marketing with other functional areas such as finance, HR, and IT, emphasizing the importance of coordinated efforts for achieving business success. The report also discusses the impact of selling and the need for adapting strategies to meet customer demands and preferences.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1. Different roles and responsibilities of marketing function...................................................1
P2. Roles and responsibilities of marketing in relation to McDonald's......................................3
TASK 2............................................................................................................................................7
P3 Comparing of marketing Mix of McDonald's and Aldi.........................................................7
P4. Marketing plan of McDonald's...........................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers to the process where exchange of goods and services takes place. There
are various activities included in marketing like advertisement, selling, promotion and personal
selling. Under marketing, different activities are organised in order to spread awareness about
products and services offered in the target market and attract large number of customers
(Aaboud, 2017). This can be achieved by using different forms of media, effective designing and
packaging of products. Marketing activities are essential for firms in order to increase their sales
and create a positive brand image of products and services in the market. This report involves the
study about roles, responsibilities and functions of marketing. Along with that, marketing mix of
Aldi and McDonald's along with the basic marketing plan will also be given in the report.
TASK 1
P1. Different roles and responsibilities of marketing function
Marketing functions are related with selling of goods and services at market place. The
firms should focus on fulfilling the needs of their customers rather than just emphasizing on
prevailing competition. In the present world, mostly all businesses have adopted marketing
functions which are helpful in satisfying different needs of firms who are facing competition at
market place in order to achieve success (Aad and et. al., 2012).
It requires coordination of different activities by analysing
 The products which had to be made available to its customers.
 The affordable prices at which customers will buy them.
 The place by which which products can be distributed.
 Promotional activities in order to increases sales of my products.
.
(Source: Functions of Marketing, 2017)
1
Illustration 1: Marketing Functions

Thus marketing activities are useful in reaching at large number of customers. The different roles
and responsibilities of marketing are described as below:
Effective distribution: It is also called as Channel Management McDonald's should
adopt effective channel so that there products are easily available to their potential customers.
Different methods are used in order to satisfy different needs of customers by making the
products available at various outlets. It results in increasing the sales of company as if products
are easily available then they would not switch to another company. Thus, effective channels are
helpful in reaching at large number of customers at the right place and time. Marketing functions
are helpful in analysing most suitable distribution channels which are helpful in providing goods
to individuals (Al-Hasan, 2016).
Example: Innovative and new products are developed at market places with new features
and applications which are useful for customers. Apple is focusing on expanding there product
line by developing new products or adding new features in existing products.
Providing high quality products: It is an important role of marketing which is linked
with providing services to their customers. Services should be effective about goods being
purchased by the customers. Services are gifts which are attached with products. This is helpful
in gaining the attention of customers which results in increasing sales. Marketing activities are
helpful in creating awareness about the new products and services. Thus, it is an important
segment of market.
Setting an affordable price: It is the largest factor which determines which pricing
policies should be used which can be best suited for goods. This will help in increasing buyers
who will purchase the goods. Prices of products should be economical so that users can easily
purchase them. Price also affects the selling of firms as if cost of products is too high then it will
result in low profits. Good pricing policies are helpful in setting various offers for the goods
which increase their profit ratios (Thomas, 2016).
Promotion: These techniques are used to promote products at marketplace with the help
of different tools like offers, discounts, gift vouchers, etc. Marketing activities are helpful in
analysing the needs of customers so that products can be made available according to their
choices. The techniques are helpful in providing message to buyers about various offers so that
they can purchase the products. This helps in increasing sales of firms. Therefore, it is an
important role which determines the growth and development of firm.
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Marketing Information Management (MIS): This is helpful in taking marketing
decisions related to selling of activities at market places. It is used to gather informations and
analyse the data so that appropriate decisions can be taken which are useful for firms. It involves
research and development which are helpful in future growth of firms. Organisations are able
able to identify internal and external factors which are operating in environment and affects
marketing activities. This is helpful in reaching large number of customers as data are clearly
analysed (Mansour, 2016).
Selling: It is an important function which is related with marketing. It helps in reaching at
large number of customers. It is an opportunity which increases the growth of firm. This concept
is related with providing effective services to customers which result in enhancing the sales
ratios. Effective marketing techniques are helpful in determining the products at marketplace.
Marketing functions are helpful in assessing the future expectations of business in relation to
growth. This helps in applying the best techniques which are helpful in selling the products and
gaining higher profits out of the same (Hasan, 2016).
Financing: Marketing activities are helpful in identification of future trends in the
market. It is helpful in making changes by identification of areas where improvements can be
implemented easily. Finance is an important factor as it helps in production of activities by
making effective decisions. If business has sufficient amount to carry out its operations then it
will grow and insufficient funds result in stopping all the business operations. Thus, it is an
important factor which is helpful in fulfilling the demand of people in the marketplace.
Financing budget of McDonald's
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 12500 14800 14200 15600
Investment 15700 14800 12800 15500
Total 40000 28200 29600 27000 31100
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Marketing expenditures 2000 5000 2000 4000 7000
Advertisement 8000 7000 6000 5000 7000
sales promotion 3000 2000 3000 2000 2000
Total 13000 14000 11000 11000 16000
Available balance 27000 14200 18600 16000 15100
Innovation is linked with developing new products at market place this is beneficial in
order to enhance profitability of business at market place. This is also most beneficial factor for
firms in order to attract customer attentions who will purchase the products. If there is new
technology products implemented then it results in expanding overall business operations at
domestic and international level.
The products should be offered to customers which are of value and importance to them
so they can easily use them in their daily life. Products should be beneficial in order to satisfy
needs and wants of customers so they can happily live their life.
The services are offered to customers should be effective and these should be served on
the time frames which are assigned to them in order to establish good image in minds of
customers. Services are the most important factors which are attracting customers in order to buy
the products thus enhancing their profitability ratios.
McDonald may focus on competitor strategies for making appropriate counter action.
For this they will do SWOT analysis on competitor that give information about competitor
strengths and weakness, and opportunity and threat. Company can not focus on just now they
also consider future requirements. They making marketing strategies for forecasting futures
requirements. McDonald face direct and indirect competition so that they will make strategies for
differentiate their product. Every firm have unique selling point (USP) so that McDonald have
their own USP for attracting customer at large scale but they also focus on niche segmentation of
marketing.
4

McDonald find new customer through innovation in there product list and product offers.
Company want to understand customers needs and wants through make appropriate techniques
of learning customer behavior. They increase there reach-ability for finding new customers and
make appropriate strategies to attract them. In product life cycle McDonald are on maturity
phase, at this phase market share are remain same and company straggle for maintaining their
market share, at this phase only innovation are the only solution for increasing market share.
McDonald have focus on innovation for increasing market share and maintaining existing market
share. For identify new market McDonald have focus on product differentiation.
P2. Roles and responsibilities of marketing in relation to McDonald's
Success can be achieved by firm by assigning roles and responsibilities to its employees.
This is helpful in caring out activities in an effective ways in order to achieve success. Managers
should conduct all its activities in desired ways in order to achieve growth and development of
firms. It is helpful in increasing productivity of firms and attending profits for organisations.
Different strategies are adopted by firms which are helpful in developing competitive
advantages for firms, creating brand loyalty for products, adopting best pricing strategies and
techniques for effective advertisements in order to increase sales (Beatty, 2014).
There are various functional areas in marketing which related with finances, sales,
Human resources and IT. If firms will focus on establishing relations between different
departments than good organisational structures can be developed. Thus all functions are
interrelated with each department. Marketing activities are greatly affecting functional areas of
department as each department is dependent on other for their functions.
Example: If marketing departments of McDonald are having the responsibility to run a
campaign than they had to arrange funds for these activities by coordinating with the finance
department. So that finance mangers can provide them funds according to their budgets. This
activity will be helpful in creating awareness so that people can easily consume the products.
Marketing and HR department
Marketing also affects Human Resource Departments of firms because promotions can be
made with the help of potential manpower who are willing to take part in this activity. This
department is also interrelated because marketing department had to consult HR department so
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that they can provide employees who will carry their business activities. As the economy is
changing there are various changes which are made in technologies in order to access new ways
of promoting the products. Online advertisement is also an promotional tool because most of the
people are using internet for different purpose like shopping, business etc (Chamorro-Mera,
2010).
Marketing and IT department
Marketing department should also take help from IT department in order to make
effective promotions of goods. If advertisements will be effective it will help in retaining large
number of customers to purchase the products.
(Source: Functional areas of business, 2017)
Firms are operating in various functional areas which includes Information Technology,
finance, distribution, Human resources, customers service, administration and Research and
Development. These units are linked with each other in an organisation. Various marketing
strategies are adopted to promote there products by communicating with different department so
that its working does not affect any unit. McDonald's had adopted marketing strategies so that
people can be aware about the different strategies which are used by them. If any innovative
techniques are adopted for promotion than each department had to consult with other units for
smooth work process (Miranda, 2010).
Marketing and Selling
Selling also impact the marketing strategies which are used by organisations. Effective
plans and policies should be adopted in order to make changes in selling process. If new
6
Illustration 2: Functional areas of
business

channels are adopted for production of goods than it is the responsibilities of firms to makes
modifications in products according to demands of there customers.
When customers purchase the goods they should be provided with additional services so
as to attract them towards there products and retain them for long times at work place. Customers
can be satisfied with the products and services of firms if there problems are resolved on times
regarding goods purchased. If customers are happy with the services than it results in increase in
footfalls of firms. Complain management systems should be adopted by firms in order to solves
problems of customers in an effective way. This results in evaluating effective solutions for the
problems for better results in relation to satisfaction (Braslow, 2015).
Roles and responsibilities of firms are described below as
Market Research: These are important responsibilities for every business firms. This
research is helpful in analysing performances of company at market place and the areas where it
is not successful improvements can be made. Firms should produce quality products in order to
satisfy customers and retain them by making them loyal customers. These research are helpful in
helping organisations to know about the factors which can be improved so as to achieve growth
for firms.
Product Development: Products should be made according to needs of customers which
satisfies them. If innovations are used in products it will results in development of new products.
The features should be added which are helpful in gaining competitive advantages at market
places by making products different from others. Marketing activities are helpful in identifying
those areas where changes can be implemented in business. Various features of products should
be improved in order to provide assistance to its customers (Caporaso and et. al., 2010).
Market Segmentations: It is an essential part which are used by business. Markets are
divided into various field which includes geographic, demographic and behavioural areas. This is
helpful in providing goods and services to customers according to there requirements. It results
in analysing desires of customers according to there needs. This is helpful for company in order
to provide effective services to its potential customers. Segmentation is the process where large
markets are divided into smaller areas which are helpful in providing products to customers
according to their requirements. Thus organisations can be connected with people who needs
desired services.
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Sales: Firms are mainly focusing on there selling activities in order to increase there
profits. This can be achieved with the help of different marketing activities. Various tools and
techniques can be used by firms in order to achieve advantages over there sales process.
Developments can be made in products from time to time in order to expand product lines and
increase sales of firms. This can be achieved with the help of changes in technologies so that new
features can be easily added in products. These developments are helpful in providing assistance
to company so that their sales can be increase and company can gain competitive advantages.
Different quality measures can be adopted by organisations in order to reduces chances of
defective products. This is helpful in capturing attention of large group of customers (Rubio,
2014).
Communication: It plays an important role in marketing. This task is helpful in providing
message customers in relation to features and other aspects of products. Effective
communications are helpful in gaining attention of customers about products by giving them
various offers. Various promotional techniques are helpful in reaching large group of customers
in different areas. Up gradation in products are helpful in increasing footfalls by attracting people
who can consume there services. Marketing campaign are conducted in order to promote product
in an easy way and thus maintaining coordination with various departments for funding and
manpower (Clow, 2010).
PR smith SOSTAC framework
SOSTAC process the six areas of key explain in this :
Situational analysis : Situational analysis implement the marketing of digital planning of
framework is set out from the analyse of situation. Situations provides the over view of the MC
Donald - what they do, who they are and how they interact and online trading is by addressing
them the external and internal factors impact the MC Donald.
Section is of painting a picture of the MC Donald, consider using some of a methods to bring
this in life:
who are a digital customers?
SWOT analysis – strengths, weakness, opportunities and threats of the MC Donald.
Competitor analysis – how they compete? Who are competitors? What are their key
differentiators?
Digital channels of landscape. What is performing good or not ?
8

Objectives : MC Donald digital marketing planning framework main focus on their
objectives of their strategy. In this five goals are refers to sizzle, save, speak, serve and sell
created by PR smith. It make it measurable which turn importance of each objectives into
SMART objectives stands for:
1) Specific : Focus on a specific issue within the MC Donald.
2) Measurable : How they make plan to access their performance?
3) Actionable : Will assist the performance was achieved?
4) Relevant : Issue to be addressed domain of team of digital marketing.
5) Time- related : Have they set specific period of time ?
Strategy : It means how they plan for fulfilling the set objectives. Identify the section of
strategy which finds the segment of a market target with a plan. MC Donald develop a site
dedicated used to customer service base and to meet and objectives of services set by a strategy.
Tactics : Tactics cover the tools of specific of digital mix that they can realise the
objectives of digital plan of marketing. Strategy should identify the segments of market they
target and their plan. MC Donald focus on the key strengths like a range of product, global
operations and MC Donald structure while realistic is remaining to a lack og financial resources
comparison in competition.
Actions : It bring the plan of life in action of the digital marketing framework of planning.
Section covers the actions what needs to achieved for each tactics which were listed in previous
once.
Control : It is a final stage the way they plan to monitor and performance measure base on
the set objectives. Tactics has been considered and they have to control the section which
provide the serious of tailored dashboard from each tactics.
Role of marketing within B to C
Business to customer a kind of business transaction which is conducted directly between
customer and company. It ca be associated with online shopping and directly applies to customer
selling. Marketing use different roles in context to B2C they are like intermediary between
buyers and consumers. Marketing provides them with different models like they can become a
direct seller, consumer can get their products from them directly from the stores. Their decision
is more emotional they buy products if they are emotionally attached to it. They use different
distribution channels for convenience which will increase their company growth. Customer
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exactly wants to know the benefits rather than to just go around the bush. The message should be
very easy regarding any commodity so that they can easily understand.
Role of marketing within B to B
Business to Business refers to a situation where commercial transactional takes place for
production process. They require each others service for operational reason. They mainly focus
on logic of any commodity and this is done by focusing on the features of commodity. They are
personally attached and no purchasing decision is involved. Every article is required because
escaping anyone of them will harm business product, its all about products and services used by
people. They are basically knowledge seekers and always are in thirst for knowledge. They
substitute their purchase with logical argument and data.
Marketing as business function
Marketing is a medium through which good and services are exchanged an act as an
integral part of business. It can further be classified as micro and macro marketing. Changes may
occur according to the environment, if it is positive than growth may increase and if it is negative
than production can go down and their economy can vary. It mobilises economy for small scale
industries. They can adjust and accommodate and control fluctuations in supply and demand.
TASK 2
P3 Comparing of marketing Mix of McDonald's and Aldi
7 P's of marketing of McDonald's
The marketing mix has been defined as the set of marketing tools that the firm uses to fulfil its
marketing objectives in the target market. For the purpose of fulfilling these objectives a
company uses various marketing strategies comprising of marketing mix which includes product,
price, place, promotion, people, process and physical evidence.
 Product: As the vision of Mcdonald is to be the world's best quick service restaurant
experience in terms of quality, service, cleanliness and value. So it is working for its
product success by making its products sell able and distributable, possible and feasible,
useful and desirable. Product being a physical product or services offered by the company
to its customers analysing various aspects like packaging, looks, desirability, etc.
McDonald's have limited product depth and width by studying the behaviour of customer
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in the local as well as international market. McDonald's brings about best product quality
and features according to the preference and demand of the customers (Miranda, 2013).
 Price: Pricing strategy is an important aspect of marketing mix. These majorly includes
product cost, discount and payment facility, competitors price, expenses incurred,
revenue for the business unit,etc. The pricing strategies needs to be such that it attracts all
sections and class of people considering the demand and supply equation and analysing
it. McDonald's believes in bundled pricing strategies like combo meal, family meal,
happy price menu, etc. to increase the product sales.
 Place: The place factor in marketing mix strategies consists of target market, distribution
channels and outlets of the company. It is important because the product must be
available to customers at right time, right place and in right quantity. McDonald's
provides value position based on the needs of the customer by offering hygienic
atmosphere and better services.
 Promotion: The promotional strategies includes advertising, personal selling, sales
promotion, public relations, direct marketing etc. the promotional methods are used by
McDonald's to integrate marketing communication programme which helps in making
access to communication channels clearly, consistently and delivering messages and
product to the target audiences easily.
 People: No company is complete without people which includes employees as well as
customers. McDonald's understand this fact and do internal marketing as well as external
marketing. Internal marketing includes hiring, training and motivating employees so that
they can serve customers easily leading towards customer satisfaction. McDonald's has
standard uniform for employees for equality service treatment, delivery crew members
carries basic operation of a restaurant and provides fast friendly service ensuring
customer satisfaction (James, 2013)
 Process: the process for McDonald's starts from producing food transparency to
consumers, adopting new method of packing and distribution, innovative cooking
equipments, also allowing customers to enter the area where the process takes place to
have a clear view of what they are consuming.
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 Physical evidence: the physical evidence factor appearance affects the business functions
along with the impression of the outsiders. It includes transparency, speedy delivery,
quality of product, location and appearance, building maintenance and interior.
Marketing mix of Aldi
Aldi: It is the largest business which are dealing in grocery from 1913. It was selling
products according to choices of customers in the past years. It is providing quality products to
customers in UK and thus gives there contribution towards the fourth positions in retail segment.
Prices of products are kept economical so that customers can easily purchase them. The aim aim
of business are related with providing daily goods to there customers which contains quality.
Marketing Mix of Aldi (Chamorro-Mera, 2010).
Products: Many products are offered by cited firms in order to satisfy needs of
customers and earn large market shares and profits. Every firms tries to manufactures those
products which are useful for individuals and in turn satisfy them. Aldi is focusing on adopting
economical prices for products so that normal person who is earning minimum wages can easily
purchase them. The goods are taken from suppliers and than they are labelled under their brands
in order to control production process with less cost. This is the main reasons of low prices of
products with relatively high quality. There are various modification which are made in non food
items from time to time and no modifications are made in food products. This is helpful in
attaining competitive advantages for cited firms at market place (Joshi, 2014).
Price: These task are helpful in affecting sales volume of products. Pricing policies
should be adopted keeping in mind the strategies which are chosen by the competitors. Aldi can
purchase goods in bulk quantity in order to reduce there prices. This also minimise the cost
which are incurred in production process. Competitive pricing policy are adopted by them so to
make products available to customers at low cost. If these tools are used effectively in
determining prices than overall cost are reduced and products are available at reasonable prices.
Place: It determines the physical location from where goods and services can be offered
to customers. The place should be selected which are convenient for customers. The cited firms
has its stores operating in almost 18 countries with more than 8000 outlets. They are launching
new stores in Britain every week. There operational cost are low because they had made
designing of there stores simple. Thus firms are able to mange there pricing policies and are
providing low cost goods to there customers.
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Promotion: It is a process which are adopted by cited firms in order to communicate
information to its target customers in relation to goods offered by them. It includes various
promotional activities like advertising, personal selling and sales promotion etc. This is helpful
in creating awareness about goods and services among customer's so that demands of products
can be increased in economy. To make effective promotion cited firm had used Leaflet and
Boucher. Advertisement can be given in television and newspapers to promote companies
product. Boucher's are distributed in mainly those areas which are crowded so as to reach to
large group of customers (Kirby, 2012).
People: Business activities are carried out by people of society and success is mainly
depended on their working. Employees are responsible for creating brand image of organisations.
If any staff members purchase good from there stores than they are given various discounts and
offers. This is also an policy which is used to attract staff members so that they will not purchase
the goods from other stores. Training is also conducted at work places in order to teach
employees how they should treat there customers and make them satisfied with products and
services. If customers have any issues than it should be resolved soon it order to retain them for
long time.
Process: It is related with behaviour and attitude of workers who are rendering services
to customers. It include timely availability of products and informations which is useful for staff
members. The designing of these stores are very simple and it helps the customers to find their
products according to there requirements. It is also beneficial for customers as it saves time
which they had wasted in acquiring goods (Malhotra, 2013).
Physical Evidence: Aldi is the brand which have its presence globally. It has adopted
simple structures, effective pricing policies and standardization of products. The designing of its
stores are simple and attractive when gains attention of large group of people and thus it results
in increased profits.
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P4. Marketing plan of McDonald's
McDonald's is the largest food industry and it has its presence globally around 120
countries with 30,000 outlets. It is the largest industry in fast food services. Marketing plans are
useful tools as they are helpful in increasing productivity which results in increasing profit ratios.
Marketing Plans includes the following:
Mission Statement
It is an enduring statement which are related with growth and success of firms.
Customers are spending their times at peaceful place with healthy environment and are
consuming high quality foods. There main aim is to provide fast serves to there customers.
Vision Statement:
It reflects where the company wants to see itself in future time. They wanted to make the
place a favourite area where they can enjoy veg and non veg food with effective services. They
are eating quality foods with clean environment and prompt customer services (Lin, 2011).
Statements for Marketing Goals:
The success of firms are mainly dependent upon the feedback which are given by
customers. They should be considered by firms because they helps in determining the areas
which are lacking in satisfying needs of persons. Thus various marketing strategies are adopted
by cited firms in respect to position of products at market place. Creating positive images about
products in minds of individuals are helpful in determining success of firms.
SWOT Analysis:
Strength:
 Its global presence helps him to face competitions at market place.
 It is the leading company in fast food services at national and international market.
 It has achieved economies of scales by reducing its cost of products.
Weakness:
 Innovations in products are very less.
 Competition are high at market place.
Opportunities
 Its has provided value added services to its customers in order to increase foot falls and
increase profits.
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 Products can be expanded at international areas.
Threats:
 High rates of fluctuations in economy which affect business activities. High threats from competitors who are running the same business.
Competitors of McDonald's
Various competitors of cited firm includes KFC, Burger king and Pizza Hut. These are
the largest competitors of business thus they greatly affect their business operations (Medury,
2013).
Market Segmentation and Targeting:
The products of McDonald's are consumed by all age groups. It had adopted segmentation
policies on the basis of demographic factors which determines age group of people. They select
the youngsters as there target customers as they are mostly the consumer of fast foods. They also
contain chicken goods in there meals which are not easily digestible by children's.
The variety of food problems provides benefits to all age groups. It has created its
presence as a reputed brand across the globe. Prices of food products are economical which can
be easily consumed by any age group.
Budget:
The budgets of cited firms are prepared after analysing various marketing strategies and the
actual data are forward to finance managers. The main budgets are given to marketin g
department who is responsible to carry out different promotional activities for creating awareness
about products and services. If any innovative products are developed than the budgets changes
automatically.
Monitoring and Control:
If the company wants to have its presence for long term sustainability than it had to adopt
economical pricing for its products which can be easily consuming by all class of people.
Innovations should be adopted by companies in order to increase there product line. They should
have control on the supply management of products so that company does not faces any problem
in future. Marketing prospects are the main areas on which they should focus to achieve better
results (Marketing Plan. 2016).
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CONCLUSION
From the above report it can be concluded that McDonald's are offering different food
products to there customers. Effective tools are used which are helpful in providing timely
delivery of services. Marketing activities are useful for firms as it leads to growth and
development of business. Pricing policies should be adopted in relation to pricing strategy
adopted by competitors. New products are developed in order to satisfy differential needs of
customers. Promotional tools are helpful in facing competition at market places. Innovations in
goods are helpful in expanding product line as new products are developed with additional
features. McDonald's is mainly targeting young customers for there services as they are mostly
lover of fast foods.
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