Marketing Essentials: Analysis and Marketing Plan for McDonald's

This report provides a comprehensive analysis of McDonald's marketing strategies, focusing on key roles and responsibilities within the marketing function. It explores the marketing concept, selling concept, production concept, and product concept, highlighting how McDonald's adapts its strategies to meet consumer needs and preferences. The report examines the functions of marketing, including management information systems, product management, pricing strategies, and distribution, and how these elements contribute to the company's success in the competitive fast-food industry. Furthermore, it discusses the role of marketing in widening an organization, emphasizing its integration with other departments such as operations, finance, sales, human resources, and IT. The report also includes a comparison with Burger King using the marketing mix, and concludes with the development of a basic marketing plan tailored for McDonald's, considering its global presence and diverse consumer base.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of marketing function........................................................1
P2 Role and responsibilities of marketing in context with widening an organisation...........3
TASK2.............................................................................................................................................5
P3 Compare the ways in which different organisations apply the marketing mix .............5
TASK3...........................................................................................................................................10
P4 Develop marketing plan for McDonald's ....................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
1

INTRODUCTION
Marketing is an important tool used to identify trends of environment and needs of
customers. It promotes products or services of a company by using various strategies and
policies which help in increasing productivity and profitability in a desired manner. In short, it
helps in increasing sales of an organisation. This assignment is made to understand the principles
of marketing in context with Mc Donald. It is fast food company of UK and has its operations in
many countries (Gummesson, 2011). It uses a basic marketing plan to influence people with
products or services. In order to understand role of merchandising and the way it relates with
other functional units of this company, a comparison is given with Burger King by using
elements of marketing mix techniques to achieve overall business objectives. With this
assistance, a basic marketing plan for this organisation is also develop in present unit.
TASK 1
P1 Key roles and responsibilities of marketing function
Marketing helps a company to promote its brand image at marketplace. Having effective
techniques and strategies an enterprise becomes able to stand and compete with competitors.
Role of manager in this department is to coordinate with other division and develop plans to
influence people in order to engage them with their company's products. In Mc Donald, its
marketing techniques helps in generating sales and gaining highest revenue.
Functions of marketing: Functions of marketing is generally common in all enterprises
which involves research, product plan, sales, raise funds, produce customer service, development
process etc. But key roles and responsibilities of persons in this department are different depends
on type of products of their company deals in (Forrester, 2010). Managers perform various duties
of business organisation for increasing its growth and expansion at international level. In context
with Mc Donald, it has dealt the business in 119 countries so, due to large expansion it uses
various marketing strategies. This firm is always seeks to provide high service to customers for
getting their satisfaction and retentions. The basic requirement of persons is need while wanting
a thing is secondary level of their satisfaction and demand is luxurious essential of them.
Therefore, on regarding these concepts, management of Mc Donald deliver its products in such a
manner that they get success in fulfilling wants and demands of consumers.

Marketing Concept:In this concept, organisation need to find out requirement of
marketers for delivering its best value of products at marketplace. Completing their requirement
help in building image and value of a firm efficiently which helps to engage people with
products or services (Diana, 2013). Through marketing concept, managers can build strategies
for merchandising in order to gain competitive advantage from competitors. These strategies and
policies used to give information to consumers about what companies are offering them.
Selling Concept: For increasing the sales of goods, organisation need to keep this
concept in mind. With this assistance, persons of marketing team have to build strong policies
and strategies by identifying demands of people like what they want to avail and how much they
can pay. This process helps in publicity of products in an effective way by which customers can
easily attract to buy such services at any cost. Human resource manager of the company
conducting training program for their employees which enhance their skills and knowledge.
Through this, firm improve customer's satisfaction as well as experience in the market place.
Production Concept: In order to increase production rate, marketing managers should
use this concept. Like for Mc Donald, this process helps in identifying what consumers actually
look out in eatables products. People avails those food products which they can get easily in
nearby marketplace as well as of best quality at affordable price (Durand and Barlow, 2012).
Product Concept: According to age of people, preferences of them are change
automatically like at young age they like French fries, burger, pizza and other fast foods while
adult prefer beverages and spicy eatable products. Due to increasing obesity problems,
customers are becoming more aware of their health so, Mc Donald needs to concern on
ingredients use in products. It helps in taking care of customer and gain satisfaction as well as
retain them with healthy products.
Roles and Responsibilities of Marketing: Mc Donald has used various impactful
process of marketing research for promoting its products. Focusing on demands of customers
especially on occasions, it offers many discounts and promotional activities to attract minds of
people. Its employees in marketing department helps in surveying needs of people and which
company's products they like most (Desai, 2011). In UK, due to low investment in food sectors,
many outlets having same products are launching at rapid rate. So, it increases many competitors
for Mc Donald. Therefore, its market research team used to identify what strategies its
competitors are used to avail customers. Some major responsibilities of this team members are:-
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Management Information System: It is a computer-based system technique used to
analyse business problems. So, MIS managers help members of marketing to resolve the
problems related to identifying needs of customer by designing some IT applications.
Information given by this department, help marketers to take decisions in planning strategies for
advertising services of organisations which would aid in achieving the business goals and
objectives in an efficient manner.
Product Management: Research and development department of an enterprise helps
marketing team to identify problems in productions as well as suggest if there is need of
modifications in existing products or not (Chinn, 2017). This would help in improving quality of
products as well as aid marketers to promote its brand effectively. McDonald's develop strategies
and plan in order to increase profitability and market share. They sell various produce like
hamburgers, rise etc. to their clients which improve customer's satisfaction in industries.
Pricing Strategies: The main responsibility of marketers is to find price strategies of
competitors so that a firm can offer its products at easy and affordable rate as compared to them.
This would helps in gaining competition advancement by retaining customers as well.
Management of McDonald's has use low pricing strategies at their work place in order to
increase customer's satisfaction and profitability in an effective manner. They develop
differentiate product as compare to their competitors and gain competitive advantage at market
place.
Distribution: Expansion of business at international level shows effective strategies of
Mc Donald. This outlet has used strong distributive channels for selling its products to various
retailers, especially in those regions from where it can easily gets revenues and return on
investment. In order to identify populated area where people like fast food much and can easily
pay, marketing team helps a lot which indirectly increase its sales performance as well as
production rate.
P2 Role and responsibilities of marketing in context with widening an organisation
Marketing department performs various activities in order to expand business of an
organisation. Managers of this division play major role in transferring the goods through various
distributive channels. They act as a face of an enterprise which helps in building its brand image.
Their main responsibilities in a firm is to develop a strategic marketing plan which includes the
segmentation, positioning of brands and targeting audience (Batt, 2013). This process helps in
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measuring brand image of a company and overall effectiveness of strategies at marketplace. It
also gives opportunities to organisations to modify its product if necessary in order to get high
customer satisfaction. For evaluating effectiveness of such products, management of Mc Donald
tracks and monitor the performance of marketers by using marketing mix techniques. This would
helps in analysing whether policies implemented by a company is helpful and under budget.
Market-oriented persons not only help organisations but also assist people in improving their
standard of life in a better way. For widening the business and production of an organisation,
functions of marketing department links with all divisions in following manner:-
Marketing function with operation department:Division of marketing in a company is
mainly responsible for research and development of strategic plan. This plan entails current
situation of a firm in context with customers, competitors, opportunities and threats available at
marketplace. It depicts the strengths and weaknesses of an organisation present in external
environment (Baker, 2014). Such type of plan includes objectives of sales budgets, determination
of marketing actions as well as identifies resources requirement for modifications. These
processes help operational team to carry out their operations in an appropriate manner for
physical development, manufacturing the new products or services as well. Operational
managers always seek to get required information and capacity to meet demands of customers on
time. So, marketing division help them in carrying out such activities in a desired way.
Finance department with marketing function: Marketing members helps in identifying
the resources from where financial division can raise desired funds. These funds help
management of finance to meet all requirements of day-to-day payments. Marketing department
performs various functions like identifying distributive channels and suppliers for cost
effectiveness. They conduct research on how a company can raise its capital to start operation at
low cost and remain in business for long purpose. Apart from this, marketers help in purchasing
resources or raw materials, financing, selling the finished goods, warehousing, bearing risk and
standardisations etc.
Marketing department with sales: For increasing sales performance of an outlet,
marketers help sales department by carefully examine in which area they can carry their
functions. Persons working in marketing field, forecast current conditions of marketplace and
makes plan accordingly in order to increase sales in a particular region (Babin and Zikmund,
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2015). In Mc Donald, marketers help in allocating the area where people can buy its products
easily and paid accordingly. They help in advertisement and sales promotion.
Marketing department with human resource management function: Functions of HRM
and marketing team are much interrelated. For enhancing performance of marketing team, a
company requires to employ best talent in all departments so that they can help in increasing its
productivity and profitability. For such process, human resource management use various
methods to recruit qualified and knowledgeable persons in marketing and other departments.
They also provide necessary training to employees in order to increase their abilities as per job
requirement. They perform many activities to retain employees by introducing performance
appraisal system through which employees get various incentives like extra bonus, salaries and
flexible working hours (Swenson, Rhoads, and Whitlark, 2014). Marketing department helps HR
managers by identifying from where they can recruit persons at low wages and salaries. They
research training techniques of competitors and other international firms so that its workers
become able to compete with challenges as well.
IT department and marketing function: As marketing department acts a key driver for
growth of business of a company, similarly, Information & Technology sector helps in designing
and maintaining the infrastructure as well. This department helps in keeping records, securing
information and strategies used by a firm to avail marketplace etc. It provides various
applications to promote products of an organisation through online procedures. Before
purchasing resources and raw materials, IT division tracks suppliers from where they can get the
same on easy rates (Purvis, 2016). In today's modern world, people use to go on websites of
organisations for fulfilment of desires. Like in food section, for completing desires of people on
time, technological department of Mc Donald creates various websites for consumers from
where consumers can place their order. This firm also produce search engine optimization for
people so that they can get desired information of a company's products and ingredients used in
it. IT department also keeps an eye on accounts of social media in order to ensure that customers
will get correct information about its services and products.
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TASK2
P3 Compare the ways in which different organisations apply the marketing mix
Marketing mix is a combination of various factors that may be control by an organisation
to influence clients buying behaviours of its product as well as services. Its can be define as 7P's
those stand for product, prices, place, promotions, physical evidences, process and people
(Rudden, 2016). In these 7P's, 4P's are related to manufacturing and selling related or remaining
3P's represent services industries. By providing quality of services, firm are able to improve their
customer's satisfaction which increase profitability.
(Source: Marketing Mix elements, 2015)
These all element are affect decision making process of McDonald management. They
use all seven elements of marketing mix, because they offer both product as well as services to
their clients (Perreault, 2010). They develop strategies to manage all these elements effectively
in order to gain competitive advantages at market place. Through this, they are able to produce
differentiate product as compare to their competitors which provide high market share. Burger
king is a one of the leading American international chain of burger fast food restaurants. They
are close rival of McDonald's at global level. Management of both company have closely watch
6
illustration 1: Marketing Mix

on each other marketing strategies to complete effectively at market place. Description of
marketing mix elements of burger king and McDonald's are explain as follows:
Marketing
mix
elements
McDonald's Burger King
Product  McDonald's offer numbers of
product to their clients which
help them to retain customers
(Papasolomou and Melanthiou,
2012).
 Their product list includes
vegetarian and non- vegetarian
menu, beverages, frozen desert
or many more.
 Some important product
attributes which are consider of
management of McDonald's are
care of their consumers
sentiments about religions and
culture, they are separate
equipment in kitchen and many
more.
 McDonald's sell several number
of product such as
cheeseburgers, chicken nuggets,
wraps, sandwiches etc. They
also offers shakes, desserts,
salads, coffee etc.
 company try to increase
nutrition value in its meal.
 Burger king provide number of
product to their customers like
hamburgers, shakes, salads, fries,
hash browns, coffee, pies, cookies
and many more.
 Firm are offer “Have it your way”
theme which allows clients each
order with many different option
like cheese, lettuce, onion rings,
ketchups and mayonnaise etc.
 They have offer best coffee to all
united state customers
(Ogunmokun and Tang, 2012).
Selling coffee with iced varieties
like plain, mocha flavours,
whipped topping, vanilla and
many more.
 Selling their product in selected
retail outlet like Wal-mart.
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price  Company use low pricing
strategies at their work place in
order to gain competitive
advantages at market place.
 Company offer value of price to
their customers (Mitchell,
2012).
 They develop pricing strategies
according to clients needs and
wants.
 Firm enjoy cost leadership
advantage.
 Mcdonald's offer “Happy price
menu”, many combos.
 An organisation believe
affordable product price.
 Management of the company use
low pricing strategies for their
customers in order to retain large
number of clients.
 They think, customers are price
sensitive. So that, firm offer
various product which are
economically in nature.
 An organisation has segmented all
product according to price and list
out according to that location
customer's needs and wants.
Place  McDonald's serve their services
to large area. It is a international
firm which provide services to
around 100 countries.
 According to needs and culture
of that area, product and
services are offer.
 Company use franchise policies
to spread their market in
international location.
 Company has operated their
business via franchise method and
lease (Jones and Rowley, 2011).
 They run their business activities
around 15000 plus location.
 They open their outlet at prime
location of the area. Its offer
services according to needs and
wants of the consumers of that
region.
Promotion  Advertisement through cinema,
t.v., online, poster site,
newspapers.
 They display hoardings at major
 Use various promotional
strategies and plan in order to
increase buyers knowledge,
information about product and
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location (Gummesson, 2011).
 Other promotional method that
firm use is door drops, sales
display, scratch card etc.
services which are offer by
company.
 For advertisement and promotion
company use newspapers,
billboards, hoarding, brochure,
social media side, internet and
many more.
 Company used point of purchase
material to attract large number of
clients.
Physical
evidence
 Location and appearances,
effective interiors, building
maintenances and many more.
 They use various strategies to
make better environment in the
restaurant.
 McDonald's use unilateral
furniture in restaurant which
help to gain high profitability at
market place.
 Management of an organisation
has provide healthy and safe place
to clients. Through this, firm are
able to enjoy high customer's
satisfaction (Forrester, 2010).
 Their restaurant are manage with
theme. According to location
culture and environment.
 They use music at their store
which provide mind peace to
buyers. Also, firm use air
purifier .
Process  They use new method of
distribution and packaging.
 Clients are invited to check
ingredient that are used by
company in food.
 Use lasted cooking technologies
and equipment (Durand and
Barlow, 2012).
 They provide quality of services
to their buyers that increase
customer's satisfaction.
 They provide take home services
to clients. For this they provide
effective packaging to them.
 Burger king implementing latest
technology and equipment in
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