Exploring Hospitality Marketing and McDonald's Business Strategy

This report provides an overview of hospitality marketing essentials within the context of McDonald's Corporation. It covers key aspects such as the marketing concept, marketing process (including situational analysis, marketing strategy, marketing mix decisions, and implementation & control), roles and responsibilities of marketing, and the interrelationship of marketing with other functional departments like IT, finance, and production. The report also highlights the importance of marketing in creating employment, generating new ideas, aiding decision-making, and fostering economic growth. Furthermore, it discusses the differences between the 7 P's of hospitality organizations and analyzes the significance of effective interrelationships between different functional departments within McDonald's.

HOSPITALITY
MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
Marketing Concept-....................................................................................................................3
Marketing Process-......................................................................................................................4
Roles and Responsibilities of Marketing-...................................................................................5
Interrelationship of Marketing with other functional departments-............................................7
Importance of Marketing-...........................................................................................................8
Difference between 7 P's of Hospitality Organizations..............................................................9
Critical analysis of the significance of effective interrelationships between different functional
departments...............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing is the process for getting a company's product or service out to consumers. Hospitality
marketing takes a look at how segments of the hospitality industry, such as hotels, restaurants,
resorts and amusement parks, utilize marketing techniques to promote their products or services.
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant
operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They
rechristened their business as a hamburger stand, and later turned the company into a
franchise, McDonald's is the world's largest restaurant chain by revenue, serving over 69 million
customers daily in over 100 countries across 37,855 outlets as of 2018. Although McDonald's is
best known for its hamburgers, cheeseburgers and french fries, they also feature chicken
products, breakfast items, soft drinks, milkshakes, wraps, and desserts. This report covers
questions such as Marketing Concept, Marketing Process, Roles and Responsibilities of
Marketing, Interrelationship of Marketing with other functional departments, Importance of
Marketing, Difference between 7 P's of Hospitality Organizations.
Marketing Concept-
This concept states that firms must check and analyse the needs of their customers and
according to that they must take decisions so that they can satisfy the needs of the customers and
stay ahead of the competition. Most of the firms implies this concept. (Eletxigerra, Barrutia and
Echebarria, 2018.)
Marketing Process-
This concept states that the firm must check if the needs are of customer are fulfilled or
not. This process is implemented so that company can analyse and fulfil the needs of the
customers. This process is divided into four components that is Situation Analysis, Marketing
Strategy, Marketing Mix Decisions, Implementation and Control.
Situational Analysis-
This is a analysis of a situation which is done thoroughly so that companies such
as McDonald's can find the opportunities which are in scope and satisfy the needs of those
customers whose needs are not fulfilled. To do that first McDonald's need to figure out their

capabilities so they can know where they are lacking. By understanding these measures in the
environment will help to fulfil the needs of the customers. That is why this analysis is
considered as analysis which concerns to factor of external environment. With that this analysis
also covers the internal department of the company. External environment relates to macro
environment which hit many firms at the same time whereas factors which are related to micro
environment are concerned with situations that are specific to a firm. McDonald's must keep in
mind that this aspect includes aspects of past, present and future. If history is involved then it
will help the company to highlight the current state of the company. This will give the analysis
and forecast of the current trends in the market. If the forecasting is done with a good research
then it can help the company to not waste time and money on bringing a product which is not
needed in the market. With the help of the analysis McDonald's can also find out the
opportunities as if the analysis shows the gap between what the consumers want and what is the
company offering to them. This analysis helps the company to take out opportunities, problems
and their summary. With the help of this analysis company can figure out a way to meet their
capabilities and work up to their potential so that they can satisfy the needs of the customer in a
better way than their competitors. This analysis uses several measures such as SWOT analysis,
PEST analysis, 5 C analysis. (Biełuszko and Marciszewska, 2018. )
Marketing Strategy-
This strategy involves segmenting. Targeting, positioning and value proposition in the
market. To make this strategy successful McDonald's need to identify the opportunity to satisfy
the unfulfilled needs of the consumers. Proper research will provide the company the information
of a specific market that will help the company to target a market and position the product
according to the segment. The outcome of the strategy will be considered as a value proposition
in the market.
Marketing Mix Decisions-

Decisions which are tactical are made controllable for the marketing mix parameters. It
consists factors such as Pricing decisions, Distribution contracts, Product development and
Promotional campaign development. (Kotoua and Ilkan, 2017.)
Implementation and Control-
After McDonald's has made the marketing plan and developed it in order to
launch the new item. The result of the effort in marketing must be closely monitored by the
company because environment is static. Forces of the market is unpredictable and company has
to adjust with them. Companies often tries to change the message in advertisements so that they
can influence the buyers. The process of marketing does not end with implementation. Close
monitoring is required and company needs to adapt these changes so that they can fulfil the
needs of the customers on a regular basis for a long period of time.
Roles and Responsibilities of Marketing-
Listening to the needs of the customer-
McDonald's needs to maintain a relationship with their clients on a regular basis so that
they can figure out their exact needs. McDonald's must take a toll or conduct a survey so that
they can grab the data from their team and direct or enhance it so that it can be prepared for the
future.
Track Trends and Monitor Competition-
McDonald's must evaluate their strategy on a regular basis as it is important for a
company to know their capabilities and position. It is advised that company must observe their
competitors best work and their mistakes so that they can work accordingly.
Work and Brand Values-
The marketing department of McDonald's helps the company to make image in
the market, gives ideas and messages that communicate the value of the brand. (Mirehie and
et.al., 2018)

Innovate-
Marketing team of the McDonald's makes sure that customers of the company must feel
surprise everyday. This will help in increasing the demand of their services. Company must keep
an eye on the department of marketing that if or not they are working for new strategies that can
help the customers retain for a long time.
Helps in improving the process of sales and customer-
In order to improve the sales of McDonald's their marketing team has to
coordinate with all the departments in the organization. If they understand what the customer
wants then only they can increase the sales of the company.
Widens the Market-
By using various tools of communication such as sales promotion, promotion,
advertising, marketing of event and maintaining the PR to make the reach of their products
widely. Apart from this it also helps the company to improve their image in the market. Media is
another tool which influences the reputation of the company. (Pantelidis, 2016.)
Economic growth-
Marketing helps in increasing the demand. When the level of demand increases it
also helps in increasing the level of production and activities which are concerned to distribution.
These all factors combined together helps the company to increase the growth in the industry
which will result in rising the level of income for people. This is beneficial for McDonald's as
improving level of standard will increase the flow in the market and will increase the sales of the
company.
Creates Utility-
McDonald's focus on marketing as it helps in creating utility. By this a company can
satisfy the needs and wants of the people. For instance a burger with cheese in it will fulfil the
craving of the customers.
Face Competition-

Marketing helps the company to fight the competition because marketers of
McDonald's keeps a check and monitors them closely so that whatever move they are going to
make can be counter back. If the company is not prepared then it will affect their whole model of
the business. (Okumus and Cetin, 2018.)
Interrelationship of Marketing with other functional departments-
Marketing with IT-
IT department of the company helps them to set up their own website on which customer
can see the products on their website and their prices. This department keeps a check on all the
stock that the company has, how much and what things they will need in this much time. This
will help McDonald's to focus on their other services. Apart from this customer can give the
feedback online if they would like to change anything about the company. Marketing in this
aspect is related as at the time of uploading the items online marketers help the department of IT
to tell offers on buying this item you will get this item or buying on this much amount customers
will get 10 per cent off. On the portal IT department can provide the information which is latest
or serious about the company that the customers had to take care of.
Marketing with Finance Department-
Department of marketing and finance of McDonald's needs to work with
coordination so that they can maintain the operations of the business appropriately and without
confusion. Finance department sets a specif amount of budget for activities such as promotion,
distribution and research. This budget is set so that the company can operate their operations
with meeting their capabilities. If both the departments don't cooperate then what happens is the
marketing department will spend more than enough on every aspect which will increase the sales
of the company but ultimately it will decrease the profit of the company. Department of
marketing includes factors such as volume of sales, increasing the share in the market of the
company whereas department of finance is concerned with the flow of cash and return on
investment as soon as possible.
Marketing with Production-

Production is concerned with many factors but most important is to
manufacturing the products and to keep up the stocks according to the current market needs.
Marketing has to sell the products or encourage the sales of the company in the market. There
will be a problem if both the departments does not coordinate then it will reflect bad image in the
company. For instance if a marketer sells this much items of McDonald's and has orders for
many more but does not know about the stock or are in contact with the production team. The
whole situation will lead to affect the image of the company as company won't be able to deliver
more items if they are not in stock.
Importance of Marketing-
Marketing creates Employment-
McDonald's opens many jobs for people in marketing as they need more and more people
to increase their sales, think for new strategies, does promotion so that company can keep up
with their competitors. It is because this aspect has huge scope that is why the company hires so
many people. (Rudden, 2016.)
Marketing brings sources of New Ideas-
Marketing is dynamic in nature. It changes with time. McDonald's has to keep
changing their cycle of production and distribution according to that. Company has to keep in
mind and make the food according to the recent taste and preferences of the people. So that it is
easy for the marketers to promote the products to their target audience. (Dixit, Lee and Loo,
2019. )
Marketing acts as a basis for decision making-
McDonald's has to make their decisions of production according to
the data provided by the marketers. They won't make any step without the information provided
by the marketers as it can put the whole production at risk.

Difference between 7 P's of Hospitality Organizations
Basis McDonald's Burger King
Product The product portfolio of the
company includes both vegetarian
and non vegetarian burgers. For
instance Mc chicken, Chicken
Mcgrill, Filet O fish. Along with
these they offer french fries, Mc
swirl ice creams, Mc flurry Oreo,
coffee and shakes in beverages,
different kind of wraps. Company
has combined them to offer them as
meals and they have started happy
meals for price oriented customers.
The product portfolio of Burger King
is almost as same as McDonald's.
They also provide burgers , fries,
salads. The only difference is they
provide onion rings, cookies and
pies. They have also introduced the
scheme of have it your way in which
they asks the customers what to add
in their burger so that it can be
perfectly according to them and
satisfy them so that they can retain
them for long term.
Price McDonald's provide quality burgers
at very less price which can be
afforded by everyone. Their whole
menu is selectively made for the
price oriented consumers.
As compared to McDonald's, Burger
king is slightly costly. Even they
have made the range of entry level
burgers cheaper such as $ 1 for
double cheese burger but for their
premium burgers prices will go up to
$ 5 which some people think is more
than costly for a burger.
Place Outlets of McDonald's are spread
throughout the world. It is literally
almost in every country. They
provide home delivery and self pick
up from the restaurant. With that
they also have the facility for dine
in. They open their outlets in prime
Same as McDonald's, Burger King
also operates their business as
franchise and they have their outlets
in more than 71 countries. Both the
companies earn their earning from
sales, royalties and fees people pay
for buying the franchise.

locations and operates their
business as a franchise.
Promotion McDonald's targets children as their
prime customers that is why they
have even made clown with the
logo. They provide various schemes
such as lucky draw, happy meals
which are exclusively for kids and
more such as scratch cards and
combo meals.
Burger King offers $ 1 menu to
attract consumers and dine in at their
place. With that they have started a
talent show where they show talents
of people at the dine in and whoever
wins gets the reward of anything at
the menu for free. They even started
tours in urban areas to promote their
brands. They have done promotion
for their new product which is a
premium burger and with a theme to
cheat on beef.
Process The whole process of
manufacturing of food at
McDonald's is totally visible by
customers also termed as
transparent. They allow the
customers and give them a open
challenge to judge their hygiene. So
that customers can know that the
customers have highly maintained
their standards. They are even
allowed to check the ingredients
that are being used and where does
this food is made. (Chandiok and
Sharma, 2017. )
The company has recently added 400
more restaurants in their total. Now
they are looking to promote as king
television commercials so that they
can add more popularity with this and
with the help of new marketing
strategies. They put most of their
money on the restaurants because
according to their studies same young
people visit their place more than 10
times in a month. They have implied
a loss leadership theory which means
they earn more margin on french fries
and cold drinks.
Physical Evidence They have more than 20,000
restaurants in the world and also a
Burger King has more than 11,000
restaurants and they have made their

website on internet so customers
can order their items from there
also. Focus of the company is to
open outlets with hygienic and
clean interiors so that they can
attract more and more people as
people will think that the restaurant
maintains the decorum and
professionalism.
presence even on internet with a
detailed information. They are
working on changing their image
with making the changes in the
decor. The company targets people
who live in urban areas so that they
are going to make buildings and their
design according to them.
People McDonald's maintains a standard
and same uniform for all the
employees. They focus on friendly
service to their employees.
John W. Chisley is Burger Kibgs
Chieg Executive Officer and
Executive Chairman of The Board.
He has served in the CEO capacity
since 2008.
Critical analysis of the significance of effective interrelationships between different functional
departments.
Mission - To be our customers’ favourite place and way to eat and drink.
Vision - To move with velocity to drive profitable growth and become an even better
McDonald’s serving more customers delicious food each day around the world.
Objectives - To increase the sale of new product by 20% till the end of year 2020
To enhance consumer experience by 10% in upcoming 6 months (Lanier and Lanier, 2017.)
To increase profitability by 20% till the end of year 2021.
SWOT Analysis of McDonald's
Strength-

The company has been in the market since 1954 which also states that they have made a
good brand name with the help of quality food and effective promotion. They have a global
brand value of approximately $ 97.7 billion. Customers of the company are strongly loyal to
them because they provide a lot of variety in products and because their brand is global. Their
promotional strategy also comes in this strength as they promote themselves as quality food with
quick preparation. Their pricing strategy is their core strength because they have segmented their
product for the customers who are price sensitive. (Baker and Magnini, 2016.)
Weaknesses-
They don't have variety of products for people who prefer vegetarian food. Company
serves huge amount of people on daily basis and sometimes they are long queues which make the
customer wait for a long period of time. Consumers think that their food is unhealthy. Company
face the issues of animal cruelty on a daily basis which affects the image of the company in a bad
way. They serve that much amount of customers that their stock sometimes gets finished before
completing the no. of order. (Stalmirska, Whalley and Fallon, 2019.)
Opportunities-
Company has the opportunity to provide a range of variety for fish related items as they
have only Filet O Fish for that. They have the scope to open a cafe in UK so that they can
increase the share in the coffee market. Company has also the opportunity to increase the variety
of vegetarian food in their product portfolio.
Threats-
Company has to face campaigns from government which are about influencing the diet of
the people who are their customers. Company face a huge amount of threat from Subway, KFC
and Burger King. (Pike, 2015.)
CONCLUSION
From the above studies it has been concluded that this study highlights the fact that McDonald's
faces a lot of threat from their competitors such as KFC, Burger King and Subway. Apart from
that they have to face issues from the animal cruelty board on a daily basis. Their pricing strategy