Marketing Essentials Report: McDonald's, KFC, and Marketing Plans

This report delves into the essentials of marketing, using McDonald's as a case study. It examines the key roles and responsibilities of marketing, its relationship within a wider organizational context, and the impact of external factors. The report explores various marketing concepts, including production, product, selling, and marketing concepts. It also analyzes current and future marketing trends, and differentiates between B2B and B2C marketing approaches. The report further analyzes the application of the marketing mix (product, price, place, promotion, people) by McDonald's and KFC, comparing their strategies. Finally, the report provides an overview of marketing plans for McDonald's, offering insights into how these plans are developed and evaluated to achieve business objectives.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 - Explain the key roles and responsibilities of marketing function...................................3
P2 - Explain how roles and responsibilities of marketing relate to wider organizational
context....................................................................................................................................6
LO 2.................................................................................................................................................7
P3 - Ways different organization apply marketing mix to the marketing planing process in
order to achieve business objectives.......................................................................................7
LO 3.................................................................................................................................................9
P4 - Produce and evaluate marketing plan for an organization..............................................9
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing Essential is the phenomena of evaluate and re-evaluate business activities on
the basis of product, price, promotion, place, packaging, positioning and people. These factors
are responsible for satisfying consumer's needs. McDonald's is an American fast food chain
established in 1940 by Richard and Maurice McDonald in San Bernardino, California. The
research will highlight Marketing responsibilities of McDonald. It will explain Marketing mix in
McDonald and KFC. Marketing plans for McDonald will be prepared.
LO 1
P1 - Explain the key roles and responsibilities of marketing function.
Marketing function in any business plays a vital role as it identifies that how a business is
going to trade in the competitive market, what should be its basic goals and what type of policies
should be prepared to accomplish these goals.
Marketing department is essential part of business which design effective strategies
through which enterprise can raise its profitability and can meet organisational goal effectively.
Concepts of marketing as described as below:
Production concept highlights that customers like to buy such items that are easily
available in market and they can buy it in affordable prices. Product concept states that high
quality products are mostly buy by consumers because it fulfils their requirements easily (5
Marketing Concepts Explained with Examples, 2019). Selling concept is another concept of
market which describes that promotional efforts of company influence mind of people and make
them ready to buy such items otherwise people do not much focus on new goods and services if
entity fails to promote its product effectively in market. Marketing concept describes that if
company offers products as per the need of consumers then they will prefer to buy those items
which helps business in gaining competitive advantage to great extent.
Nature of marketing
Marketing is the process through which company meet the needs of buyers by offering
them satisfactory goods and services. It is process that helps in exchanging necessary
information from seller to buyer or buyer to seller. It always ensures that goal of seller and buyer
can met significantly.
Current and future trends

Currently used marketing trends are social media, celebrity’s involvement. Use of social
media helps the company in interacting with consumers which gives positive result to business.
In the future companies can use artificial intelligence system which will make the marketing
more effective and will give positive result to the firm.
Impact of external factors on marketing
Macro environmental factors impact on entire marketing activities of firm to great extent.
Changes in legal regulation create pressure of McDonald’s to make change in its marketing
design, in such condition entity has to improve its marketing as per required standards.
Furthermore, if there is economic slowdown then entity fails to invest large amount in marketing,
whereas if economic situations are good then it enterprise spend huge capital so that sales can be
raised.
Role of marketing in B2B and B2C context
B2B marketing concentrates on promoting products for business, it is long driven
strategy that helps the company in getting indirect benefit from consumers. Whereas B2C
marketing concentrates to consumers and it appeals to emotions. Marketing plays the role of
promoter in both B2B and B2C business context, by this way companies can target corporate
consumers and actual end users easily. It also plays role of relationship builder, as by using this
tactics company can build healthy bonding with corporate clients in B2B business and can
develops trust of buyers as well.
McDonald's provides a variety of choices for meals and render 24 hours services to the
customers on a wide scale. Even the employees of McDonald's possess good communication
skills which makes the customers feel comfortable (Pike 2015).
Therefore, the employee's role and responsibilities of McDonald's also leads to business
development and expansion.
Responsibilities of marketing
 Profit Maximization:-
The universal responsibility of marketing is to maximise profits which may lead to growth and
expansion like McDonald's have various branches across the world with numerous employees.
 Marketing Communication:-

Marketing communication is also one of the important responsibilities in marketing function. It
helps in providing feedback to the organisation like McDonald's take feedback and suggestions
from its employees for better improvement of business strategies (Malhotra. 2015).
 Introducing new product:-
Through market research, the analyst has to continuously study the latest trends and wants of
customers and modify their products and services time to time to satisfy needs of customers. For
instance, McDonald's had launched happy meals with toys to attract young children.
 Market Expanding:-
It is the important responsibility of researcher that his analysis or evaluation results in expansion
of the organisation. Like McDonald's offers special discounts to attract more customers and to
maximise its revenues.
 Sustaining in the market:-
Marketing function plays an imperative role to sustain in the competitive market in any
undertaking. Without Marketing it is quite impossible to survive in the market for a longer period
(Larson and Draper. 2015). So it is the responsibility of market analyst to create brand loyalty
among customers.
 Superior Quality of products or services:-
This is the basic responsibility of McDonald's to provide good quality of product or services to
gain customer loyalty. Due to brand loyalty towards McDonald's the customers expect that the
product would be best and more qualified in the market subject to high prices of the product. For
example, McDonald's serves best food with packaging and other services around the world.
 Promotion of Services:-
Promotion of services on the communication system differ in recent times as being an important
issue it coordinates with roles and responsibilities of marketing (Bhatt and Gupta. 2018).
For example:-McDonald's provides various discount schemes or coupons to achieve its
objectives and to gain customer loyalty.
Role of marketing
 Promoter: Another important role of marketing function is brand promotier. For instance
McDonald's concentrates on print media in severe countries because such media is much
popular there as compared to television.

 Market Researcher:- For effective marketing, the researcher is responsible to evaluate
the preferences or needs of potential and existing customers and apart from that he should
have good knowledge about the market place in which such company operates like
McDonald's sensed the necessity to involve the local culture through market research
(Perreault. 2018).
P2 - Explain how roles and responsibilities of marketing relate to wider organizational context.
The roles and responsibilities of marketing to wider organizational context are -
Marketing department with Operation/ Production management department -
The production department and marketing department of McDonald's (McD) is so interlinked
with each other as it studies the requirement of the market department (Rowley, 2016). The
department analyses the food trend in the market as well as the quality served by the competitors
thus help maintain the quality of the product resulting balance between demand and supply. The
production department analyse market supply with the data provided by marketing team
considering the trend and quality demand in the market therefore their opinion is taken into
consideration to maximise sales amongst its competitors (Baker and Saren. 2016).
Marketing with Human Resource Department -
Marketing department is responsible for forecasting demand, by taking support of
marketing techniques company can easily analyse future demand. BY this way HR team can
manage manpower accordingly or can bring new talent in the firm so that such demand can be
met. On other hand HR gives training to employees that helps in enhancing knowledge of people
and they can coordinate with buyers easily that supports marketing team in selling the items of
McDonalds easily in the market (Hair Jr and et.al., 2015).
Marketing with Quality department -
McD quality department emphasis on continuous quality check of the articles to introduce
best of its eatables to its customers. The marketing department is responsible for generating
sales and brings back the feedback from the market to tie any lose strings and help increase it's
customer count. McD articles may vary from place to place as it's outlets are located across the
world and there are chances that the product, quality, quantity, prices, ingredients vary from
place to place depending upon factors such as beliefs, availability, climate, legality, etc.
Marketing department try to analyses issue in existing products by taking reviews from
consumers through social sites. By this way quality can rectify mistakes and can raise quality of

existing products easily. This relationship supports in attracting new buyers and raising profit of
organisation to great extent.
Marketing with Finance department -
Marketing department promotes the products and generate profit in the firm. By this way
finance department get adequate funds to manage operations. On other hand finance department
allocate funds to marketing department so that advertisement and rest expenses can be managed
so that cash flow can be increased in McDonalds. This is significant relationship that helps
McDonalds in increasing profit to great extent (Stern and Porr. 2017).
LO 2
P3 - Ways different organization apply marketing mix to the marketing planing process in order
to achieve business objectives.
Marketing is a combination of tools / model which can be use by company to motivate
the consumer to buy products of it. Their are seven elements in marketing mix by using this they
achieve the marketing objective in target market.
Differentiate between the McDonald's and KFC and how they applying marketing mix in their
Business:-
McDonald's KFC
product McDonald's has variety of food
item in the market such as
hamburger, cheeseburger,
snacks wraps, French fries etc.
It provides good offerable
products which satisfying the
consumer in changing
expectation. And maintaining
quality products (Stern and
Porr. 2017).
KFC also has the variety of
item but mainly items are
chicken based items, such as
veg snacker, chicken snacker,
popcorn chicken, hot wings,
Boneless chicken strips etc. It
uses the best quality chicken
and design their products
according to customer
expectation.
Price McDonalds uses penetration
pricing techniques to sell
products. These tactics support
It uses competitive pricing
strategy, KFC prices are high as
it fixes their on the basis of

business in attracting more
buyers and making them
satisfied towards the brand.
middle and upper class. And
using Bundling price where
they provide two-three item in
one at low price.
Place It takes support of both direct
and indirect distribution
methods. McDonalds sales their
products around the world. It
has restaurant in 101 countries
and sell their products through
online food delivery by their
restaurant located in that
countries
KFC also having restaurant in
118 countries in the world and
sales it food item through
online order and direct sales to
the customer
Promotion McDonald's uses various
strategy like making good
relation to customer by
providing good service, direct
marketing through internet,
newspaper, magazine, personal
selling to customer which also
helps to get feedback about it.
KFC use proper use of Digital
channels for making awareness
and marketing for promotion. It
also has strong social presence
to entrust with the customer.
And also using
People McDonald's provide friendly &
prompt services to the customer
through their employees. As it
provide good high skill training
to their employees and each
crew member provided on the
job training at every restaurant.
KFC Mainly focusing on the
people where people are like
chicken and growth rate of
population and set the target
and enter in the market on the
basis of demand of chicken
item. And provide good
customer services (Wirtz and
Lovelock, 2016).

Physical evidence McDonald's providing
cleanliness, friendly dealing
and environment friendly
products. It mainly focusing on
clean and hygienic.
Its logo is eye catching and
infrastructure of company is
very effective (Perreault.
2018).
KFC maintain their interior
According to high standard
quality which influence the
customer and also uses good
technology equipment.
Its tag line is the strength of
KFC.
Process McDonald's takes no. Of
activities to deliver products to
the customer like food
preparation in McDonald's is
completely visible or
transparent to the customer.
Whereas in KFC it highly
focuses on good operational
techniques like good operating
manager good service, target
revenue
LO 3
P4 - Produce and evaluate marketing plan for an organization.
Executive Summary
A marketing plan is a blueprint highlighting marketing and advertising efforts for
coming year describing business activities to achieve marketing objectives in a period (Nirschl
and Steinberg. 2018). McD plans to market its big mac burger to increase sales of this product.
(Wirtz and Lovelock, 2016). This marketing plan gives information about firm. It analyses
existing situation of McDonald's. It also describes strategies that may help business to market its
big Mac Burger.
Objective -
To increase sales of Big Mac burger of McDonalds by 35% till the end of 2019.
Positioning of McDonald -

Segmentation -
McD divides its market into segments depending on the need and wants of the
customer's. The segmentation will be based on geographic and demographic basis like children,
young adults and adults. Company uses demographic segmentation strategy the most, by this
way it will be able to target consumers on the bases of their age. Big Mac burger is liked by kids
hence demographic segmentation can give best result to business unit.
Targeting -
McD takes support of differentiated targeting strategy, by this way it becomes able to
target right consumers for big Mac burger.
Positioning -
Cost positioning strategy is used by MacDonald’s for promoting its Big Mac burger that
helps in maintaining its position in market significantly.
Situational Analysis -
SWOT
 Strengths - McD is the most recognized brand in the world by ''Golden Arches''. They
offer cultural diversified food products based on geographical location that benefited
them in generating sale across the world. Serving in 120 countries derives different sales
and earnings thus they managed to generate stable cash flows and profitability (Morgan.
2016).
 Weaknesses - McD accepted openly that it's food is unhealthy and full of carbs, fat,
sugar and salt despite promoting crab free diet resulting this much health conscious
consumer's ignoring having food at McD and the company pays low salaries to its
employees resulting in failed practice to retain the employees and increase cost of the
company.
 Opportunities – Globalisation is the opportunity available to business and technologic
advancement is another great opportunity for the firm that may help in increasing sales of
Big Mac burger in market (Wirtz and Lovelock, 2016).
 Threats - The chain is facing tough competition from its rivals Burger King, Wendy,
Subway and Yum!. High competition is threat to business which may create problem in
meeting the target of increasing sales of Big Mac burger.
PESTEL

 Political - McD may face government pressure to comply with health and hygiene factors
overseas as found they are using high amount of sodium and sugar thus must ignore using
it. In such condition it might get fail to promote its Big Mac burger.
 Economic - The economy of each country vary so they must decide to purchase raw
material locally or import them. If there is poor economic condition then entity may get
fail to generate sales of Big Mac burger in the market.
 Socio-cultural - McD must ignore low-carb and low-sugar diets thus making them less
desirable option for health conscious people (Rowley. 2017). McDonalds has to ensure that
taster of Big Mac burger can satisfy needs of buyers.
 Technological - McD menus are flashed on television screen hanged on walls and they
use their website to showcase nutrition information and in places online food can be
ordered to avoid waiting in line. By this way it will be able to promote its big mac burger
to mass audience.
 Environmental - McD must use polystyrene in place of paper based packaging which
break down into organic ingredients much quickly in the environment (Nirschl and
Steinberg., 2018).
 Legal - McD must consider all legal compliances in mind at the time of business to avoid
legal failures. It has to design big mac burger asper food industry standards and also
promote it in legal; manner so that legal complexities can be avoided.
Marketing strategies
McD must use the 7P's technique to develop marketing plan -
 Product - McD will ensure that taste, packaging and quality of Bog Mac burger can
satisfy consumers globally.
 Place - McD will distribute its big mac burger through direct and indirect both
distribution channels.
 Price - McD will offer ''Dollar Menu Offer'' to its customers to serve food in attractive
prices. It will also use discounting pricing for its big Mac burger.
 Promotion - McD will use social media to market or promote its big Mac burger..
 People - They will modify the uniforms of the employees and make them more attractive
thus attracting eve of individuals. Employees will get more incentives if they get good
feedback comments from consumers.

 Process - McD will initiate program of inviting random customer's in preparation area
for them to ensure the hygiene and quality of eatables (Wirtz and Lovelock, 2016).
 Physical Evidence - McD will promote its Big Mac burger by using amazing tag line
and infrastructure of outlet will be great so that consumers can get attracted.
Budget -
McD plans to invest a sum total of 800 pounds into marketing plans for the expansion and
promote the business. Cost incurred in marketing of McDonald's (in pounds) -
Plans Investment
Rent 50
Salaries 200
Advertisement 150
Sponsorship 200
Endorsement 200
Monitoring and controlling marketing plans for McDonald's -
McDonald's will adopt test monitoring method to monitor it's marketing plan by evaluating
feedback from its customer's and taking corrective measures to improve efficiency and quality.
The current plan will adopt corrective measures and evaluate performances of individual to bring
efficiency to market plans (Malhotra. 2015).
CONCLUSION
From the above study it can be concluded that companies have to take assistance of
marketing activities that aids in conducting market research and building healthy bonding with
potential buyers. use of effective marketing tactics support organisation in raising sales and
promoting brand in effective manner. marketing plan is essential to market any product of
business and raise productivity of the enterprise.

REFERENCES
Books and Journals
Baker. M.J. and Saren. M. eds., 2016. Marketing theory: a student text. Sage.
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Larson. J. and Draper. S., 2015. Internet marketing essentials. Idaho Falls, ID: Stukent
Incorporated.
Malhotra. N.K., 2015. Essentials of marketing research: A hands-on orientation. Essex: Pearson.
Morgan. D.L., 2016. Essentials of dyadic interviewing. Routledge.
Nirschl. M. and Steinberg. L., 2018. Einstieg in das influencer marketing: grundlagen,
strategien und erfolgsfaktoren. Springer Gabler.
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Pike S., 2015. Destination marketing: essentials. Routledge.
Rowley. J., 2016. Information marketing. Routledge.
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https://iedunote.com/marketing-concept>
Wirtz. J. and Lovelock. C., 2016. Services marketing. World Scientific Publishing Company.