Marketing Essentials Report: McDonald's Marketing Plan Evaluation

This report provides a comprehensive analysis of McDonald's marketing strategies, starting with an introduction to marketing essentials. It delves into the roles and responsibilities of marketing functions, including purchasing, selling, promotion, financing, and research & development, and their importance within the organization. The report then explores the interrelationship of the marketing department with other key departments such as production, HR, finance, IT, and R&D, highlighting the importance of coordination. A comparison of McDonald's and KFC's marketing mix, including product, price, place, promotion, people, process, and physical evidence is also presented. Finally, the report evaluates a basic marketing plan for McDonald's, discussing current and future market trends and concluding with the significance of marketing roles within the company. The report emphasizes the importance of marketing in creating employment, facilitating the exchange of goods, generating revenue, and maintaining a high standard of living.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1. Roles and Responsibilities of Marketing Function...............................................................1
P2. Marketing inter relation with other departments..................................................................3
TASK2.............................................................................................................................................5
P3. Comparison of two organisations regarding marketing mix to marketing planning process
.....................................................................................................................................................5
TASK 3............................................................................................................................................8
P4. Evaluation of Basic Marketing Plan for McDonald's...........................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing is a set of activities and process of creation, communication, and exchange
offers that have value for customers and society at large. It is a process of distributing goods and
services from seller to buyer (Baker and Magnini, 2016). Marketing essential consider
marketing mix, supply chain management, competition, demand and supply etc. This report is
based on McDonald's is an American fast food industry which was founded in 1940. its
headquarter is located in Chicago, USA. It provide service in worldwide area. Main products of
McDonald's are hamburger, French fries, deserts, soft drink etc. This project will discuss about
roles and responsibilities of marketing functions and its interrelationship with other departments.
Apart from this, there is a discussion of marketing mix between two organisation. At last, a basic
marketing plan is produce and evaluate for a company.
TASK1
P1. Roles and Responsibilities of Marketing Function
Marketing is a process of buying and selling of goods and services where main aim of
seller is to earn maximum profit and satisfy need of customer. There are mainly four concept in
marketing such as marketing concept which focuses on need of audience, production concept is
deals in production, social concept is is focuses on welfare of society and selling concept is deals
in sale of goods and services. McDonald's is deals in food, soft drink and beverage sector and its
main aim is to attract customers and earn maximum profit.
Current Trends
As per current market trends companies are focuses on customers demand which is
changing time to time and meet customers demand to gain long term sustainability in market
(Griffitts, 2016). McDonald's is using trends of current market such as online marketing, sale and
advertisement of products through social media is most popular in current market scenario.
Future Trends
Future market trends is depends on art and science which are the key of success.
McDonald's should use digital marketing to satisfy customers demand and meet with future
market trends. It enhance the brand of an organisation and firm will expand at global level. This
will helps to retain long run in market with maximum profit.
Overview of Marketing Processes
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Marketing process is a way that create value for customers to satisfy their needs. It is a
series of action and reaction between organisation and consumers. It is a situation which identify
opportunity and formulate strategy for creating value. There are four steps involve in marketing
process which are as follows:- Situation Analysis- In this process, company is identify their own capabilities and
determine the surrounding environments in which firm is operate their business activities. Marketing Strategy- Marketing strategy is made after analysing the situation. In this
company make strategy in order to cover large area by attracting more customers from
different promotional techniques (Baker and Saren, 2016). Marketing Mix Decision- In this process of marketing, organisation have to focus on 7Ps
of marketing mix such as product, price, place, promotion, people, process and physical
evidence.
 Implementation and Control- This is is the final process of marketing. In this step,
company have to implement above mentioned plans for action and control those activities
which create obstacles in the success of McDonald's.
Roles and Responsibilities of Marketing Function
There are different roles and responsibilities of marketing function which are essential to
implement in business activities of McDonald's which are as follows:-
Purchasing- A crucial role of marketing manager is to make decision in order to buy raw
material and other equipments for manufacturing of products and services. Merchandising
manager of McDonald's has to ensure that raw material should be purchase at low prices which
reduce cost of production.
Selling- Selling is an important part for an organisation which helps to identify the
Manager of McDonald's to decide the need of customers and geographical area where have to
focus for increasing sales by personal communication with customers for analyse their needs and
provide them quality products to fulfil their requirements.
Promotion- This marketing function is important to attract customers and increase sales
of goods and services (Hair Jr and et. al., 2015). There are several promotional techniques
available to promote a product and brand image but McDonald's have to focus on those tools
which increase sales with low cost. Managers play an important role by gathering information
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about customers demands and communicate information information through Television,
newspaper, online websites etc. and promote there goods and services.
Financing- It is an essential function of finance department of marketing to set up a
budget for managing marketing activities. Finance is necessary for every firm to bear production
cost, promotional expenses and other expenses. McDonald's should make strategy about raising
funds from various sources minimise their production cost to earn extra profit.
Marketing Information System- In MIS function, top managers of McDonald's play an
essential role to gather information of marketing condition and make decisions regarding to
improvement of business activities (Lane, 2015). It helps McDonald's in decision making
process and increment in there profitability as well as productivity.
Research and Development- Research and development function of marketing is
responsible for identify the need of customers and also analyse the competitors strategies with
their strength and weaknesses. Managers of McDonald's make planning for growth and
development of employees as well as their firm.
Distribution- In this function, marketing manager have responsibility to distribute goods
and service to potentials buyers in different geographical areas. McDonald's provide a service to
distribute products by ordering food online to their clients.
P2. Marketing inter relation with other departments
Marketing is a process of making connection between consumers and their products
which they want to buy from an organisation. It is a crucial role of marketing department to
enhance brand image of company by providing their customers quality products. Marketing
department of McDonald's is also implement strategies to enhance customer's attention towards
products (Malhotra, 2015). It is the responsibility of all departments to contribute their service to
increase customer satisfaction and profit of an organisation. There should be a proper
coordination between all departments to make their performance effective and efficient.
Interrelationship of marketing department with other departments are describe as below:-
Marketing with Production Department- There are different activities done by
production department such as buying raw material, manufacturing of goods and services,
products packaging, warehousing and distributing to potential customers. Marketing department
of McDonald's have to make coordination with manufacturing department to identify the quality
of products and ensure that requirements of customers should be fulfil.
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Marketing with Human Resource Department- Main function of HR department is to
recruitment and selection of capable candidates and provide them appropriate training for future
development. Marketing manager of McDonald's should make coordination with HR managers
because they will fill vacant position in marketing as well as other departments (Pappas, 2017). It
is also the responsibility of Human resource department to find out best suitable candidate who
have knowledge of marketing functions, strategy and able to deal with customers and supplies.
Marketing with Finance Department- Finance department of a company manage all the
financial functions from start up of a firm to dissolution of a company. It prepare budge for all
the activities and analyse the accounts statements of an organisation with incoming and outgoing
of cash and assets. Marketing department need more funds for executing promotional activities
and distribution of goods to their customers. So, marketing manager of McDonald's should make
coordination with finance manager provide funds to execute such activities.
Marketing with Information Technology Department- IT departments helps to company
to make customer relationship through internet and also make website to promote their products
and services and it improve and maintain long term relationship with customers. IT department,
play an important role in organisation to adopt advance technology which increase productivity
and reducing cost of production. It also helps to gain competitive advantage. Marketing
department have to make coordination with IT division to get information about new
technologies in market and update their data as per current market trends.
Marketing with Research and Development Department- Research and development
department generate thoughts and creative innovation in products and services in market. It
research on customers demand and competitors strategy and planning and innovation to beat
competition (Pike, 2015). Marketing department is interrelate with R&D department because
they both are generate news ideas and create an innovative product. Research department also
analyse the distribution channel which are more suitable for delivery for products to potential
consumers.
Importance of Marketing Role in McDonald's
Importance of marketing roles in an organisation are as follows:-
Marketing creates employment- Marketing is a kind of service which create
employment. Because there are many person required in marketing jobs. Who have skills of
producing goods, delivery of products, attract customers and influence them to buy goods etc.
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these all different function functions are performed by large number of people. So it generate
employment opportunities.
Marketing helps in exchange, movement and transfer of goods- Marketing is a
technique to exchange goods and services from seller to buyer and from place to another. It is
important for both customers and suppliers to deliver of product and services.
Marketing as a source of revenue and income- Marketing is an important source of
generating income of McDonald's. Marketing includes the activity of sales in which customers
buy goods and pay amount for that. So, it is an essential source to earn profitability and
sustainability for a long run (Pike, 2016).
Maintaining and Rising Standard of Living- Marketing is helpful in maintaining and
rising of standard of living of people. It provide services as per demand of customers through
which consumers can maintain there living standard.
Conclusion
Inter relation of marketing department with other departments is very important for
McDonald's because each department contribute their services in identifying and satisfying the
need of customers. It is necessary for an organisation to performing all the departments together
for profitability and sustainability of a firm.
TASK2
P3. Comparison of two organisations regarding marketing mix to marketing planning process
Marketing mix is a process of putting right product at right place, time and price. It is a
set of action which used by a company to promote their goods and brand image in market
(Marketing Mix, 2018). Marketing mix is a combination of 7Ps which are product, price, place,
promotion, process, people and physical evidence. These are required for a firm at the time of
planning process to accomplish organisational objectives. It can be differ in different business
enterprises.
Difference between application of marketing components of McDonald's and KFC
There are following differences between marketing mix of two organisation to make
market planning process in order to achieve their goals and objectives.
Basis McDonald's KFC
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Product McDonald's is one of the most
leading fast food restaurant in the
world. It provide various option to
their customers in food products,
these are- sandwiches, hamburger,
salads, French-fries, deserts,
beverages, soft drinks, breakfast etc.
It is beneficial for firm to earn
maximum profit and achieve their
objectives.
KFC is world's most popular fast
food brand specially in burger. It
introduce new products and
improvement in existing products.
Its products are fried chicken,
crispy chicken, potato fries,
salads, desert and beverages etc.
KFC focus on their products and
services to achieve their
objectives.
Price McDonald's use penetration pricing
strategy to sale their products. In this
pricing strategy, there is high quality
of goods provided at low prices.
Different pricing options available to
customers as per quantity and
ingredients of food product (Purvis,
2015). It focuses on all types of
consumers minimise the prices of
their products by reducing cost of
manufacturing.
KFC uses premium pricing
strategy to sale their products. In
this pricing strategy, KFC provide
high quality products at high
prices. So, every consumer is not
able to buy its food products.
Although, its prices are
comparable with other
competitors.
Place Place is a very important part of
marketing mix strategy. It refers to
area of distribution of products.
McDonald's try to cover maximum
area in all over the world to distribute
their products. It also offers home
delivery options in some countries
which helps to increase sales as well
as profit through which company can
KFC is located in approximately
125 countries with more than
20,500 outlets. It cover the large
area in global market and its
franchise are almost every place
in the world.
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get their objectives and success.
Promotion Promotion strategy is used by an
organisation to aware about their
products to customers and increase
sales. There are different promotional
tools used by McDonald's to achieve
their business objectives. They
advertise their products on television,
internet, newspaper and other
electronic media to convey with
customers. There main target is to
attract children by giving toys along
with meal and discount vouchers on
certain food products.
KFC has its own website and
presence in social sites such as
twitter, You tube, Facebook etc. it
advertise their products on print
media, news agencies etc. It helps
to increase sales and earn more
profit to achieve their objectives
(Rancati, Gordini and Capatina,
2016).
People There is a large number of people
engaged in McDonald's. IN UK, most
of the restaurants are closely held by
local businessman. It spend a huge
amount on conducting training
program for their employees because
they helps in achieving goals and
objectives of McDonald's.
People refers to those persons
who directly or indirectly
connected with KFC like
employees, customers, suppliers
etc. It believes in provide high
quality meal to largest customers.
The staff of KFC are high trained
in communication and customer
services. It also give opportunity
of employment through their
website. Customers and
employees satisfaction is very
necessary to achieve
organisational goals.
Process Process refers to a set of various
activities which are performed to get
Delivery service of KFC is very
limited and in small restaurants
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something. It is a flow of providing
services to customers. In McDonald's
there are many activities performed to
producing goods. Food making is a
crucial activity from all the processes.
It is the only way to gain customer
satisfaction and attain objectives.
only limited menus are available
of KFC food. Its website include
the common telephone number to
place order.
Physical Evidence It is related with the area where
company is located and interact with
customers. It includes furniture and
layout of McDonald's. It focuses on
physical environment as well as client
experience. Interior of McDonald's is
attractive and the eating place is clean
and hygienic (Ryan, 2016). It helps to
enhance customer satisfaction and
achieving business objectives.
KFC is started their services with
fried chicken in cardboard bucket.
Its website is provide whole
information about their outlets
through product information
including quality and expiry date
and process to meet their cook.
TASK 3
P4. Evaluation of Basic Marketing Plan for McDonald's
Marketing plan is a formal document of marketing scheme which is designed by top
administrator of an organisation. It render the information attendant to launching Innovative
product in a company (Stern and Porr, 2017). At the time of introducing new products there is a
requirement of different resources. This plan is framing for successful achieving of
organisational objectives.
In this marketing plan of McDonald's, strategic objectives, SWOT analysis, vision,
mission etc. are discussed. Marketing plan for launching “Oil Free French Fries” is as follows:-
Executive Summary: McDonald's is one of the most leading fast food restaurant in the
global food industry. It was founded by Maurice and Richard McDonald in 1940. It was located
in approx 100 countries and have more than 35,000 outlets. It serves approximately 70 million
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customers each day. It offers different products like chicken sandwiches, hamburger, wraps,
salad, soft drinks, deserts etc. It competitors are KFC, burger king, subway etc.
Mission & Vision: Mission of McDonald's is make customer's favourite place to eat and
provide better service to customers. Vision of McDonald's is to serve healthy and delicious food
to their customers modify their store with innovative framework.
Strategic objectives- Strategic objectives of McDonald's is to increase profit by 15% in
12 months. It can be understood with the helps of SMART Objectives.
STP- STP stands for segmentation, target, position. Segmentation: It means to dividing whole population in different age groups. It is
important to deliver product as per customers demand (Walliman, 2015). Targeting: Its main purpose to target those consumers who increase sales of McDonald's.
In case of “Oil Free French Fries” targets consumers are health conscious. Positioning: It is a value based strategy which means to provide quality food products to
their customer. It can be effective because this display direct image in mind of clients
related to product.
SWOT analysis: It stands for strength, weakness, opportunities and threats of an
organisation. It states that how they deal with customers and gain competitive advantage.
Strength Weakness
 It has a strong position in domestic and
world wide area.
 It have strong financial statement.
 Quality of food is good.
 McDonald's have customer and
marketing support.
 There is a lack on innovation in
products and services.
 There is a high calories in their food
menu.
 It franchise are dissatisfied.
Opportunities Threats
 McDonald's have opportunity to
expand their business in Asian market.
 It can use customer relationship
management.
 It can open more new stores with
 It offers junk food which is not suitable
for health conscious people.
 There is high variations in foreign
exchange rates.
 Financial condition in economy make
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different retailers. large impact on its retailer sales.
 There is a huge competition in market.
Marketing Budget:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 4500 10600 6400 12400 8600
Investment 8000 25000 28000 8500
Total 4500 18600 31400 40400 17100
Marketing outlay
Promotion 3600 3300 5400 3200 4000
Sales publicity 2700 1600 2400 3000 1100
Direct selling 4300 2500 4600 2400 3850
Total 10600 6400 12400 8600 8950
Monitoring and controlling: From the above discussion is can be evaluated that
McDonald's have to set a budget of 10,500 in first year which is carried forward in next year.
There are various kinds of expenses incurred in launching “Oil Free French Fries” like publicity,
sales promotion, direct selling etc. After creation of budget, final step of business plan is to
monitor and control the activities. It is a responsibility of managers of McDonald's to minimise
cost of production of new product and achieve extra profit.
CONCLUSION
From the above mentioned report it has been concluded that there are different roles and
responsibilities of of marketing function which are helps to identify need of customers and
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improve their business activities. There should be an inter relation between all the department of
an organisation which is beneficial for growth and success of a firm. Marketing mix strategy is
important for a firm to beat competition and attract more customers. Marketing is a department
which affect all the other managing departments of a company they enhance loyalty in front of
customers and satisfy their need by providing them healthy and fresh food on time. Marketing
plan is made by a company at the time of introducing new products and services.
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