An Analysis of Marketing Functions at McDonald's: A Detailed Report

This report provides a comprehensive analysis of the marketing functions at McDonald's, a leading fast-food restaurant chain operating globally. It delves into the key roles and responsibilities of the marketing department, including market research, competitive analysis, advertising and promotion, business growth, and identification of target markets. The report examines how the marketing wing supports the company's expansion, manages social media, and synchronizes objectives across different regions. It also explores the relationships between the marketing function and other departments like production, HR, finance, and sales, highlighting the importance of effective communication and collaboration. The report emphasizes the impact of marketing on McDonald's brand image, customer engagement, and overall business success, especially in the context of a globally operating fast food chain. Furthermore, the report discusses the role of marketing in identifying and responding to changing consumer preferences, leveraging technology, and adapting to the competitive landscape.

MARKETING ESSENTIAL

INTRODUCTION
Every organisation has to perform various functions in order to achieve their mission and
vision. Marketing is a process where company tries to find needs of customers and than sell their
products by promoting its special features. This task play crucial role in success or failure of a
company because marketing department is responsible for bringing the business into an
enterprise. McDonald's is a leading in fast food restaurant sector. They are operating in more
than 100 countries and they have approximately 36900 outlets in various part of this world. This
report will discuss about roles and responsibilities of marketing function (Al-Ekam and et .al.,
2012). Formation and evaluation of basic marketing plan will also become part of this file. It will
also include various component of marketing mix and planning which is can assist an
organisation achieving their set targets in short period of time.
TASK 1
P1 key roles and responsibilities of the marketing function
Every activity that is done in an enterprise made some impact on business operation of
company. They distribute their overall work into some department which can not interfere in
actions of other divisions. Below are some key roles of marketing:
Market research – Marketing wing of McDonald's is responsible for analysing the
current trend in market so they can provide vital information to production department, this will
help them in understanding the present need of customers and they will manufacture new items
according to their changing taste and preferences. They also deliver significant data to finance
division which support them in making important decision relating to future investment.
Competitive environment – Companies who are operating in fast food restaurant
industry has to face cut throat competition because of high number of suppliers and new entries
in market (Batt, 2013). Marketing help in understanding the strategies of opponent players so
cited organisation can make their future plans according. If they have complete details about
their rival than they will get some extra advantage which we ultimately get convert into profit.
This will help McDonald's is retaining their top spot in the industry. If they have correct
knowledge about policies of other enterprise than they can change product price and quality
which can raise their overall sale.
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Advertisement and promotion – Marketing play crucial role in creating and
maintaining the demand of product by doing various kind of promotional activities. They are
responsible for selecting correct mode of advertisement so they can target right customers and
convince buyers to try their new items. Beside promotion of product, they are accountable for
developing a positive image of brand in the market because name of organisation has direct
connection with their goodwill (Desai, 2013).
Growth of business – Every department in an enterprise perform some task which assist
the firm in moving forward towards their mission. Marketing function is responsible for brining
the business in company, they are accountable for increasing the revenue of an organisation.
They can do this activity either by reducing the cost of operation or by enhancing overall sale of
the enterprise.
Exchange of goods – McDonald's only assemble their items in their outlets. They
manufacture them at other place which can be in any other state or country. They have to get
various kind of approvals from government and their authorities Marketing division is
responsible for fulfilling all the formalities, they remove all the troubles which comes in the
process of delivering different items like sauce, beverage etc. This whole activity may look easy
from outside but it includes miscommunication and conflicts which can have capacity to make a
negative impact on the smooth movement of manufacturing material. In fast food restaurant
industry, distribution system is considered as a significant part of business operation (Desselle,
Zgarrick and Alston2016). McDonald's is operating in more than 100 countries, marketing wing
is responsible for making an effective system which can reduce the overall cost of distribution of
goods. This will provide them some extra edge on their competitors.
Identification of target markets – Before development of a product, first an enterprise
have to select the market where they are going to sell their items. This task is a function of
marketing team, they play significant role in exploring various segments relating to culture,
religion etc. They try to solve all the confusions which can come in the mind of managers of
different department by making specific goals which have to be achieved in set time. They make
strategies in order to reach these targets, they are also responsible for its effective execution.
Creation of management information system – Marketing wing is responsible for
recoding various kind of data which they gather from different sources. They have to analyse
them in regular interval of time so they can make effective strategies in upcoming time. In
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general case, other department do not store much data, they only save that info which has direct
connection with their division.
Support to research and development department – Most of the organisation firmly
believe that they need to offer new items to their on continuous basis (Hauer, 2011). In this era,
companies give too much importance to R&D division because they are responsible for creating
future products. Marketing wing is accountable for delivering he message of customers to R&D
team so they can analyse thinking of buyers and produce market friendly goods.
Synchronisation of objectives – Cited organisation is running their restaurants in
various part of this world, when a company operates at such a large extent it becomes very
difficult for them to inter relate their short and long term objectives. They have to adopt different
kind of strategies in every nation because of culture, income, etc. Marketing team tries to
synchronise all the goals and targets so organisation can move in same direction. They also
become channel of communication between various departments.
Monitor and manage social media – This can be considered as the newest function of
marketing division. They are responsible for convincing the potential customers by using various
modes of social media, they provide them complete information about product and offers (Hsu,
2011). They also monitor strategies of their competitors so they which assist them in making
sound plan for promoting their items in upcoming time.
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P2 Roles and responsibilities of marketing relating to McDonald's in wider context
When a company operate across the globe, it becomes very difficult for them to make a
proper system for distribution of goods. They Marketing department is responsible for finding
the loophole sin the whole process so they can provide solution of various problems relating to
this issue. They assist logistics wings by giving them vital information about mode of transports
they can use while delivering one item at other place. Like other organisations, cited company
also face problems relating to balance between demand and supply. They make different
strategies and policies but real trouble come at the time of execution of these plans. Marketing
wing of McDonald's analyse whole market and its recent trends, they predict future demand of a
product by comparing in past and present sale.
If an enterprise do not have good image in industry than no one would like to invest their
money in the organisation. Marketing wing of this company do various kind of promotional
events in order to promote their presence in this sector (Kennedy and Parsons, 2014). They
invest lot of funds in advertising that customers always think and talk about the products. This
give them some extra edge over their rival players. If brand value of firm increases than it
improves their financial condition which assist them in borrowing money at low rate.
McDonald's has adopted an aggressive strategy for expansion of their business. Marketing
department play crucial role in this task, they conduct market research of the place where
management want to open new restaurants. In their report, they deliver information about
thinking and needs of customers so they can decide menu card accordingly (LEHTINEN and
MÄKINEN, 2012). Taste and preference of customers changes rapidly in fast food restaurant
industry. Marketing team play crucial role in determining future changes so they can change the
product, which they are offering to public, before buyers start disliking it. This function can
provide them some extra edge on their competitors. If they predict exact demand of consumers
than they can earn significant amount of revenue in short period of time.
In this era, technology has capacity to influence the business operation of an organisation.
This marketing team is responsible for finding new techniques of production which can improve
their quality of product and at the same time it reduces overall cost of production. Some methods
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of manufacturing gets outdated in short period time, they are accountable for finding them so
cited organisation can invest their money in a technique which can last for a long period of time.
Following are some significant role of marketing department:
Relationship between marketing and production function – Manufacturing division
can not start production of a product without consulting it with marketing team because they are
responsible for providing them all the necessary information and data which can help them in
determining the exact demand of item, they also support them in taking the decision relating to
quantity of goods which should be manufactured in more or less amount (Lipsman and
et .al2012).
Relationship between marketing and HR function – Human resources department of
an organisation is responsible for hiring right person at right position. Marketing division is
responsible for providing them necessary detail about the employees which they want in their
teams. They give the basic information about characters and skills which HR division seek at the
time of interview. If they do not deliver vital info than human resource team will select wrong
workers who will fail to work according to the need of organisation.
Relationship between marketing and finance department – Finance division takes
important decision relating to future expansion and borrowing of loan. Marketing team play role
in analysing the new marketing where top level management is trying to invest (Maghaireh,
2016). They provide them information about income, political conditions, culture of economy so
they can make strategies for expansion. They also give them financial data of opponents
companies, finance wing can analyse these number and than take decision regarding right source
of money.
Relationship between sales and marketing function – Normally people get confuse
between these two department, they consider them same thing but there is a huge difference
between the task performed by these two wings. In selling, sales person just need to convince
potential and existing customer so they can try new product which cited organisation is offering.
But marketing division records their experience and ask them about necessary changes which
can be done in the existing product. They play significant role in providing necessary details to
the sales wing so they can convince consumers and enhance overall sale of the company.
McDonald's run a fast food restaurant, they target lot of people in a single shot. Marketing wing
makes effective strategies relating to adverting and other promotional activities. Advertisement
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on televisions and internet generate curiosity among consumers which attract toward outlets and
motivate them to try new eatables. When people enter in restaurant with a positive mindset, it
becomes easier for sales person to convenience for a larger order (Mihart, 2012).
McDonald's has a unique brand image. They earn it by investing huge amount in it for a
long period of time. Marketing division of cited organisation play crucial role in maintaining and
increasing goodwill of the company. This task can only be done by making a proper channel of
communication with in firm. They also give too much importance to the external communication
by spending huge sum on advertising and other promotional activities. They do not want people
to think and talk about their products, they are getting success in this mission because their
customers always exchange information and stories about restaurant gain them mouth publicity.
Marketing department play significant role in this success.
TASK 2
P3 Application of marketing mix to the marketing planning process to achieve business
objectives.
Marketing mix is a combination of all the elements that are controlled by an organisation
in order to influence consumers so they can buy product of the company. These factor play
crucial role is enhancing sale of an item which ultimately increase the revenue of the enterprise.
Earlier firm were focusing on 4 P's but now they are considering 7 P's. Below is the marketing
mix of McDonald's:
Product – Cited organisation offers a wide range of products in their restaurants. Their
quality is improving with time and there are making eatables according to the need of consumers
(Mittal, 2014). They are operating in more than 100 countries, taste and preference of people are
very different in these regions. Some nation do not like to eat non-vegetarian food so
McDonald's has to develop products according to demand. If cited organisation focus on
vegetarian segment than they may earn huge amount of revenue in short period of time. They do
not serve any eatables before taking advice of experts, top level management of McDonald's give
more importance to taste experts instead of customers because according to their argument it is
very difficult to find what consumers exactly want. Before introducing a product in their outlet,
first they launch it at low level in order to get reviews of public. If they get any significant
suggestion than they make necessary changes in the item. They give lot of importance to quality
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because they understand that in fast food restaurant industry if customers do not get food
according to their expectation than, next time, they will change the eating area.
Burger king is considered as the key opponent of cited organisation. They strategies are
bit different from McDonald's, instead of focusing on one product they offer large variety of
items in their outlets. Cited company also offer wide range but they concentrate on some fix
eatables (Moini, 2012). Packaging of food was not given importance in previous time but in
current scenario, firm are investing huge amount in it. Some experts of industry think that Burger
King do not offer better quality than McDonald's but their packaging is more attractive and less
time consuming which motivate customers to but their product.
Process – Cited organisation is running their business across the globe and in most of the
countries they have a policy of self service. Normally fast food restaurants have same strategies
but with time they need to change this thinking. Currently most of the competitors of
McDonald's has same policy but they are also focusing on self service kiosks. Cited company
should open some outlets in prime locations so they can target rich customers and server them
ordered food on their table. This move will produce them some extra edge on their competitors
because enterprises like Burger king can not change their tactics in short period of time. People
who visit McDonald's frequently thinks that they need to speed up their manufacturing process
because they take more than 10 minutes for serving a single Burger (Nguyen and Simkin, 2012).
Nowadays, no one like to wait or stand in long line. They can recruit more people and adopt
some modern techniques of production process.
Promotion – This enterprise was one of the first company who started investing huge
amount in different type of promotional activity. They wanted to create strong relation with
existing customers and attract new consumers. This strategies is still providing them some extra
edge over their main competitors like Burger king. Cited organisation initial a programme where
they gave free gifts to children and other customers who were visiting their restaurant. This
promotional activity gained them lot of popularity and they can re-introduce this activity in
upcoming time. Burger king did not have unique strategies for promoting their brand and
product. But after sometime they realise that advertisement and other promotional activity is
necessary in order to attract more customers. They initiated a new programme where they give a
crown to one of their customers so they can get a feeling that they are important for company.
McDonald's is changing their strategies for promoting their eatables, instead of using attractive
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leaflets or poster they are using social media so they can convince young generation to visit their
outlets in short period of time (Ogunmokun and Tang, 2012). They are focusing on youth
because they consider them significant source of earning.
Price – Cited organisation is operating in different part of the world, they have to face
various challenges is deciding correct price of a product. When they enter in new market, they
adopt price penetration strategy. They can sell their items at low rate for a long period of time
because their overall production cost is low. They produce more number of goods which reduces
their manufacturing expenses. McDonald's is expanding their business in some countries where
their eatables have high demand. They have adopted price skimming strategy in these regions
because which is giving the high return on investment. They are recovering their variable and
fixed expenditure in short period of time. They try to keep rates reasonable so most of the people
can afford their product. But Burger king has different policy, they offer some items at every low
rate while price of other eatables is comparatively high.
Place – Cited company want to open their outlets in every part of this world. Burger king
prefer to open their restaurant in prime locations but on the other hand McDonald's to do care
about popular or unpopular location (Papasolomou and Melanthiou, 2012). When eating place of
cited organisation gain popularity than their competitor like Burger king build their outlet so they
can steal their customers. Although the concept of home delivery started in long time ago but
still McDonald's is not providing this service to their customers. They can develop their mobile
application or take orders from website so they can serve their food at difference places. This
will also reduce fixed cost for company because in upcoming time they do not need to invest
huge amount in purchasing of land and building of restaurant.
Physical environment – Some fast food retail companies do not have great food quality or
any unique taste but their infrastructure and interior is so attractive that people visit these places
again and again. McDonald's like to keep a friendly environment in their restaurants, they are
investing huge amount on interior which is getting attention of children as well as young
generation. Burger king, their one of the main competitor generally have same kind of seats in
their restaurant but cited organisation put variety of chairs and sofa so they can attract customers
of every age group.
People – McDonald's considered their employees as important assets because they play
crucial role in execution of a plan. Cited organisation has around 365000 workers in different
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part of the world (Purvis, 2016). They are known as the face of company because they deal with
customers. They have a clear human resource policy, they want to selected candidates who
enjoys the work so they do not feel any kind of burden at workplace. They also like to hire
employees who has good communication skill so they can understand the need of customers in
short period of time. On they other hand, Burger king have different strategy. They like to recruit
young talent because of their energetic personality. They like to develop workers according to
their needs which can be considered the main reason that they do not give much importance to
effective communication skill.
Basis McDonald's Burger King
Product Most of their products, specially
Burgers are sold at economic rate.
Prices of veg. Items are economic
but chicken, fish etc. are sold at bit
higher price.
Price They have a clear strategy of keeping
affordable rate of their products.
This company used strategies like
price skimming.
Place This company open their stores in
villages as well as main location of
city.
Most of the restaurants of this firm
is at prime location.
Promotion This organisation is known for
making and executing aggressive
strategies of promoting their products
and brand.
They are not spending much
amount on promotions compared
to McDonald's.
People Employee of this enterprise are
highly trained. Most of them focus on
providing fast service to the
customers.
Workers of Burger King mainly
concentrate on increasing the level
of customers satisfaction in the
buyers.
Process Innovation can be considered as an
important part of their production
process.
This company have a unique
production process, they first try
to find the mistakes in their
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production procedure and then
improve it by solving problems.
Physical Evidence Their large number of restaurants are
the best example of their existence.
Their are offering many eatables
in their restaurants and their
physical stores is another example
of this point.
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