Marketing Essentials Report: McDonald's Marketing Plan and Comparison

This report delves into the marketing strategies of McDonald's, a leading fast-food chain in the UK. It begins with an introduction to marketing concepts, emphasizing the importance of understanding customer needs. Task 1 examines the roles and responsibilities of the marketing function within McDonald's, covering distribution, market research, pricing, product management, promotion, and selling. It also explores the marketing environment and its interrelationships with other functional units. Task 2 compares McDonald's with Aldi using the 7Ps of marketing and develops a basic marketing plan for McDonald's. The report highlights the importance of marketing in achieving competitive advantages and satisfying customer needs, concluding with a summary of key findings and references.

MARKETING ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Roles and responsibilities of marketing function for McDonald's...................................1
P2. Roles and responsibilities of marketing related to wider organisational context.............4
TASK 2............................................................................................................................................7
P3. Comparison of 7P's of marketing of Aldi and McDonald's.............................................7
P4. Basic marketing plan for McDonald's............................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Marketing are described as the native places where all the exchange activities take place
and people get a chance to have interaction with each other. Various tools are included in
marketing like sales promotion, public relations, marketing campaign, etc. These tasks are useful
in identifying differential needs of customers so that products can be offered to them according
to their choices. This is valuable in gaining competitive advantages as the products are produced
in different ways according to potential needs and desires of customers. There are various types
of marketing plans developed which are beneficial in establishing a link between all the activities
so that they can achieve all targets for performing business operations (Al-Ekam and et. al.,
2012). The main role of marketing is to value the differential needs of customers so that they can
get the products according to their choices which would satisfy them. The chosen firm is
McDonald's in the report which is at present the leader in fast food products in UK. This report is
based on the roles and responsibilities of marketing function, Marketing plans are helpful in
identifying positing and targeting and positioning strategies which are useful for performing
business operations. In the present economic era most of the firms are focusing on adopting
marketing strategies so that they can easily satisfy there customers.
TASK 1
P1. Roles and responsibilities of marketing function for McDonald's
Marketing theory: It is the philosophy of management which states that all firms should
analyse differential needs of their customers at the market place. This is useful in taking
decisions in order to manufacture new and innovative products so that they can easily achieve
their competitive advantages.
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(Source: Marketing Functions, 2017)
Roles and responsibilities of marketing function:
There are different types of roles and responsibilities which are related with the functions
of marketing and described as:
Distribution: This is related with taking decisions in order to distribute goods and
services which are involved in providing services to their potential customers. This process is
useful in analysing various channels by which the products can be distributed. It is valuable for
customers as they can easily purchase the products from different outlets according to their
convenience. Marketing is having the responsibility to see that gaps which arise in between
production of goods and making them available for selling is easily utilised so that they can
easily offer them to their clients. This is useful for them in distributing the goods to customers in
right place and time in order to satisfy them (Brooks and Simkin, 2011).
Market research: It is an activity in which mangers collect the important information
which is useful in knowing about the target customers who can purchase their products. It is
valuable in determining target customers who can increase their profit ratios by consuming the
goods. These acts provide benefits in order to determine the needs and trends of persons in
relation to fulfil their present requirements. This is valuable in gaining success for the business
operations so that they can grow their business activities.
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Illustration 1: Marketing functions

Pricing: It is also an important role where mangers decide the cost of goods at which
they can be offered to their potential customers. It is the most crucial task for managers as they
have to set economic prices so that people can easily purchase them. To determine the right price
is the most important task as it helps them to increase number of customers which results in high
profit rates. If they adopt high pricing strategy then they can lose their potential customers and
low pricing may hamper their growth. Thus, they should determine economic prices keeping in
mind the quality of products (Desai, 2013).
Products and Service Management: This responsibility comes after the target markets
have been identified where goods will be sold along with specifying the pricing strategy set by
firms. All the goods and services should be effectively managed at workplace in order to
maintain coordination among various activities. It comprises of handling the problems of
customers in order to increase sales and identification of their basic needs towards purchasing of
goods. Thus, difficulties which are faced by their customers can be easily solved in relation to
after sales services which are offered by the firms to their clients.
Promotion: It is the main function of marketing which is related with doing
advertisement about goods which are manufactured by firms in order to attract new customers
who can purchase them while retaining present customers who are using goods and services of
business. There are various types of promotional activities and the best one is chosen which is
valuable in attracting customers so that they can receive higher profits. The best tools and
techniques are adopted in order to achieve their targets which use less cost according to budgets
of firms (Berkowitz, 2016).
Selling: The concept of selling and marketing is however related with each other. This is
beneficial in determination of success path or failure of business operations. They analyse needs
and demands of customers with the help of marketing research and then products are offered to
them according to their choice. They analyse the target market where goods can be distributed in
order to gain higher profits. Various plans and strategies are useful in determining the best-
selling strategies. They have the role to evaluate future selling ratios of products and services.
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M1 Roles and responsibilities of marketing in relation to marketing environment
Marketing environment refereed to those process where firms adopt effective ideas in
order to maintain effective relations with their customers. The levels of marketing environment
are described as:
Micro operations are operating at internal business environment and there are different
factors at small scales which affect the abilities of firms to serve their customers in effective
ways.
Meso environment: This is the situation in which company is executing its operations in
industry market areas.
Macro environment operates at national level. These factors are affecting operations at
micro-environment level.
M2 Interrelationships between marketing and other functional units
The inter relations among various functional units and marketing areas are described as:
Marketing and finance: This is the main function of marketing in order to arrange funds
for carrying out various marketing acts in order to create awareness about products so that
customers can purchase them. The managers decided monthly amount which can be spent in the
activities according to their budgets. They should have skills and capabilities to avail the best
sources by which effective funds can be generated so that lesser cost will be spent in these
operations. The campaigns which require more money have to be adjusted in order to maintain
balance in their budgets.
Marketing and Information Management: This function is useful in the identification
of various needs of customers so that they can make effective decisions for their business
activities. Information is given on various types of marketing campaigns like for McDonald's,
they are focusing on identifying targets markets in order to increase their sales ratios. They are
making various strategies for small children as they are the ultimate source who can help them to
grow by giving higher profit share.
D1 Key elements of Marketing functions
The key elements of marketing includes the following aspects which are described as:
Research: This is very effective element for cited firms if they want to launch new
products and create awareness so that people can purchase them and increase their sales. This
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research is valuable in knowing about needs and wants of customers, positioning strategies
should be adopted by business in order to achieve right segmented areas.
Strategy: This element is valuable in making the company analyse where their products
are standing at market place. It is also valuable in designing what strategies should be adopted in
order to achieve successful competitive advantages at market places.
Planning: It is very useful tool in order to make plans about financial requirements, sales
ratios, strategies adopted for communicating effectively. The firms should focus on monitoring
their plans so that they can easily make changes according to requirements of customers.
Tactics: It is described as short terms plans which are designed by firms in order to attract
customers so that they can easily increase their sales ratios.
P2. Roles and responsibilities of marketing related to wider organisational context
If the selected firm wants to achieve success in their business operations then they have
to assign different roles to their employees so that they can work accordingly and achieve their
targets. If the managers are responsible about their work then it will help employees to achieve
growth and development in their activities. In order to increase productivity of business, they can
formulate the marketing plans which are useful in enhancing profitability.
Various tools are used in order to gain competitive advantages at the market place by
offering them products according to their needs. Brand image of firms can be improved if goods
are sold at economical prices so that clients can easily purchase them. Effective and unique
strategies can be developed in order to create awareness of goods so that they can enhance their
sales ratio. It is beneficial in capturing large market areas where they can gain hugenumber of
customers who can are valuable in increasing profitability factor (Baker and et. al., 2016).
Different types of functional areas in business firms include Marketing, Finance and
Information Technology as well as Human Resource, etc. McDonald's are focusing on adopting
effective structures than it can help them in establishing links so that they can execute business
operations in planned ways. All the factors work together in order to achieve goals. McDonald's
has established various tools in order to create awareness and increase footfall of customers. This
can be achievable if there is sufficient amount of funds availability in order to carry out
marketing campaign for creating awareness. Main responsibility of this lies with the finance
department.
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Marketing and HR department: In any of the business organisation, human resource
department is related with marketing division. If firm has developed new products and they want
to carry out advertisement campaign in order to create awareness. To effectively carry out this
task, they will need those people who would have the skills and capacity to make these events
successful. Thus, they need help of these departments because they are having knowledge about
all their employees who are effective. As the economy is changing and persons are leading a
busy life so, they are using online websites in order to purchase goods of their choices.
Technological advancement is needed in order to develop new products with new features.
Marketing and IT department: If the cited business wants to expand their product line
then they have to add new products by using advanced technologies and gain innovative ideas in
order to satisfy needs of customers.
Business is executing their business operations in various fields like customer services,
distribution, administration, etc. These are interrelated and thus, having a direct impact on each
other. Main responsibilities of marketing section is to make people aware about their products so
that they can consume them. McDonald's is using effective strategies to attract customers in
order to increase their sales ratio (Simkin, 2013).
Marketing and Sales: Marketing activities are affecting the sales growth of firms.
Various tools should be used by the selected firm in order to make changes in their selling plans.
The channels which have been adopting for creating awareness had to ensure that right products
which have been advertised are available on their different store locations in order to fulfil
demands of clients.
Many businesses are satisfying their customers by giving them free services if they will
purchase the goods. This is the promotional technique in order to increase their footfalls. They
can make customers happy by resolving all the issues within desired timeframe so that they can
spread a positive word of mouth in order to increase their profitability ratio. This is also valuable
in increasing profitability at business place. McDonald's has made an effective complaint
management scheme in which all the individuals are having right to share their problems and
they can also provide effective solutions in order to solve them. This is a useful method in order
to satisfy customers as they are satisfied because their issues have been resolved in an effective
manner (Brooks and Simkin, 2011).
Roles and responsibilities related to McDonald’s
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There are different roles and responsibilities which are linked with McDonald's are
evaluated as:
Marketing Research: It is an important factor for each business in order to analyse the
recent trends which are evolving at the market place. It is useful in evaluating the performance of
workers so wherever necessary improvements can be made. Company can satisfy all employees
by delivering them quality foods. This is valuable in gaining advice from the firms which can be
easily achieved.
Product Development: This is an important function in order to adopt changes in the
goods as were demanded by the customers. If new and innovative features are added in goods
them it will help company in achievement of competitive gains. Marketing activities are linked
with the achievement of growth and development so that they can easily expand their business
operations on higher scale. Every firm should focus on implementing changes in goods time to
time so that they can increase their potential users who can buy those goods.
Market Segmentation: This strategy is useful in grouping marketing into smaller areas so
that they can easily analyse the needs of their customers and accordingly, they can capture large
number of customers who can purchase goods. The grouping of areas are based on geographical,
demographic and behavioural segments. Grouping into smaller sub units are useful in delivering
products to their clients according to demands. This method is useful in fulfilling the needs of
their clients so that they can be satisfied by classifying larger market areas into small units in
order to serve them better. They have established direct communication channels in order to
maintain healthy relations with their customers (Hsu, 2011).
Sales: The main areas of focus of every business is to enhance their sales ratios with the
help of various types of marketing activities in order to gain effective sales volume. This can be
achieved with the help of adopting effective techniques for business operations. The cost can be
saved by removing defects from goods with the help of adopting effective measures to check
product’s quality.
Communication: This is the most important and vital marketing function which is used
in order to achieve information from market places which are helpful in their business processing
in order to fulfil the demands of customers. If customers are aware about the modifications in
goods then they will purchase them thus achiecveing growth. Tools and techniques are beneficial
in attracting a large number of customers. Awareness is helpful in enhancing their sales ratios.
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Marketing activities are useful in analysing the trends at marketplace so that information can be
gained and accordingly, they can manufacture the goods.
TASK 2
P3. Comparison of 7P's of marketing of Aldi and McDonald's
Marketing mix is described as evaluating those tools which are marketed before new and
innovative products are launched in the market areas. They are also known as integrating
marketing approach in which all the tasks are combined which are useful for business operations.
McDonald's
This firm is having their business operations in fast food and established in the year 1937.
They are dealing in franchise business and having their outlets in more than 121 countries. They
are fulfilling needs of customers all around the world by providing them high quality food
(Malhotra and et. al., 2013).
(Source: Growth of McDonald, 2017)
From the above graph it has been evaluated that McDonald's have achieved high growth
rates in their business as they have positioned their images in the minds of customers. They have
adopted effective strategies in order to gain competitive advantages from other business who are
dealing in the same sector like KFC, Pizza Hut and Burger King Etc.
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Illustration 2: Growth of McDonald

7 P'S of McDonald's are evaluated as:
Product: McDonald are operating in fast food restaurants and they satisfy the needs of
different age groups by giving them high quality food products. The products of McDonald's
consist of both veg and non-veg goods like French fries, Cheese burger, chicken Mc nuggets,
hamburgers, etc.
They have created a strong brand image in the minds of customers in order to increase
their sales by offering high quality products. This is also valuable in retaining loyal customers so
that they will purchase the products. The food products are offered in relation with their religious
and cultural aspects. They have developed different areas for cooking which contains good
equipment in order to offer health foods to their potential clients.
Price: This is the most critical task for any business. They have to adopt the best pricing
strategy which is suitable for clients so that they can easily purchase the goods. This will in turn
help in increasing their profit ratios so that they can achieve the growth and development. The
above mentioned firms are using the most effective strategies like cost leadership so that they
can provide the best and effective services to their clients at an economic price so that they can
easily the purchase of goods. They are offering combo packs in order to give quality products at
lower cost.
Place: It is described as the physical location from where customers can purchase goods
according to their convenience. They have made their presence in 121 countries with operating
more than 40,000 restaurants. They have adopted aggressive strategy for expanding their markets
in both the rural and urban states. They have choosen the most valuable locations which can be
easily reached by customers mostly located at prime locations of city in order to attract
customers (Seven Functions of Marketing, 2017).
Promotion: This method is adopted in order to create awareness and maintain relations
with customers. It is done with the help of various activities like personal selling, advertisement,
public relations and sales promotion, etc. Mcdonald's are promoting their products with the help
of internet websites, television, posters, hoardings, etc. They are advertising various offers in
order to increase the number of customers so that their profit ratio can be increased.
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People: These are the vital aspects which are related with promotional mix. It consists of
all the potential clients who are ready to use their goods and services. They should maintain
healthy and positive relations with their employees in order to achieve higher growth and
success. Their main focus is related with hiring of employees who have skills and potential in
order to satisfy the demands of their clients by giving them high quality services. This can be
achieved by giving training to their employees so that they can know the way to keep customers
happy. In most of the businesses, there is a formal dress code for employees so that it looks
effective and attract customers (Ogunmokun and et. al., 2012).
Process: This is composed in the functional activities in which goods have been offered
to customers which consist of good quality. They should offer timely delivery of goods in order
to satisfy their clients. They are following the standard process in order to manufacturer
products and all their recipes are kept secret in order to achieve competitive advantages. They
have designed attractive packaging for their products in order to attract a large volume of
customers.
Physical Evidence: The goods offered by firms are tangible in nature and services are
always intangible as the person cannot see services nor they can touch. All the clients are
focusing on physical locations from where the goods can be easily sold. It describes the looks of
business. McDonald's provides quality products such as burger to their customers as the physical
evidence of their stores. They are using good interior designing in order to attract customers with
bright lightings and attractive furniture to increase customer footfall.
ALDI
Aldi is the largest stores having their operations in grocery products from 1913. They are
manufacturing goods according to customer’s demands in order to satisfy them. They are having
their operations in UK where the demand of their product is high as they are selling goods at
economical prices. Main aim of business is linked with providing high quality products at a less
price.
7 P's of marketing of ALDI are described as:
Product: They are selling their products at economic prices in order to enhance sales
ratios. The goods are developed in order to fulfil needs and demands of customers. The adopt
those pricing policy which are economical so that people can easily purchase goods. They are
purchasing the goods in bulk quantity and then are putting their own labels in order to cut down
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