Marketing Essentials Report: McDonald's Marketing Mix and Planning

This report delves into the marketing essentials of McDonald's, a prominent fast-food restaurant. It begins by defining marketing concepts and examining current and future trends within the industry. The report then explores the key roles and responsibilities of the marketing function, including the marketing manager's duties, and how marketing relates to the broader organizational context, such as its interactions with human resources, operations, finance, and production. The report emphasizes the importance of marketing in driving sales and business growth. A significant portion of the report compares the marketing mix of McDonald's with that of Subway, analyzing their product offerings, pricing strategies, and distribution channels. Finally, the report concludes by producing and evaluating a basic marketing plan, providing insights into how McDonald's can achieve its business objectives through effective marketing strategies and planning.

MARKETING
ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key roles and responsibilities of the marketing function......................................................1
P2 Roles and responsibilities of marketing relate to the wider organisational context..............3
TASK 2............................................................................................................................................5
P3 Marketing mix to the marketing planning process to achieve business objectives...............5
TASK 3............................................................................................................................................8
P4 Produce and evaluate a basic marketing plan........................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing refers to an action of selling as well as promoting services or goods consisting
the advertising and market research. It is an activity, process and set of institutions for
developing, interacting and also delivering the offers to consumers which have value for the
them or society (Askeland and Wright, 2013). This present report is based on the McDonald and
it is a fast food restaurant. It provides breakfast items, desserts, soft drinks, cheese burgers,
hamburgers etc. Under this mention report will be discuss about roles and responsibilities of the
marketing function. Compare ways under which different firms applies the different marketing
mix will be mention. There will be discussion about the roles and responsibilities of the
marketing related to wider organisation context.
TASK 1
P1 Key roles and responsibilities of the marketing function
Concept of marketing, including current and future trends
Marketing refers to management process that is responsible for determining, anticipating
and also fulfil needs and demands of consumers. It is human activity that directed at satisfying
wants and requirements by process of exchange.
Concepts of Marketing
Marketing concept refers to strategy that organisations execute to fulfil requirements of
consumers, enhance sales, increase profit level and compete with the existing consumers. The
marketing department of McDonald restaurant designs the effective strategies that will helps in
develop the profitable relationship with customers at market place. Different concepts of
marketing that McDonald's company can use mention below:
Production concept- In this concept, customers will prefer those products which are
easily available as well as highly affordable (Baker, 2014). It can be lead to the marketing
myopia. The main focus of management of McDonald is on improving the efficiency of
production.
Product Concept- This concept holds that customers will be prefer those products which
are of good quality, have innovative features and better performance. In context to this,
marketing strategy of McDonald's restaurant is on making improvements in products on
continuous basis. It will be helpful in target the new markets.
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Selling concept- It proses consumers, person or firms that will not purchase more
products of company unless and until they are do by the selling efforts. In order to make success
in marketing, McDonald's should be make better its promotion and selling activities in an
effective manner.
Marketing concept- This concept of marketing states that attaining aims and objectives of
firm is based on knowing wants as well as requirements of the target markets. It will be helpful
for McDonald's restaurant in satisfying preferences and needs of consumers as comparison to its
competitors at market place. In this, consumer values and focus are two main routes for attain
sales and profit level (Brooks and Simkin, 2012).
Societal concept- This marketing concept states that marketing strategy should be helpful
in provide value to consumers in a manner that assess in maintain the society ans customer
relationship.
Current and future trends
Current trends
 Low Calorie food
 Eating food away from home
 Green fast foods Convenience fast foods
Future trends
 Improve service speed
 Fast casual and fast food grey area Focus on content marketing
Different marketing processes
Marketing process refers to process of identifying opportunities at market place, selection
of target markets and developing marketing mix. The marketing process is mention below:
Define Problem- The first step in marketing research process is related with defining
issues. Under this, by identifying the problem or issue, firm can find the solution of that by
collecting relevant information (Desai, 2013).
Develop research Plan- Under this second step, there is a need to create a research plan
by including any kind of method that asses in give solution of issue in a better manner.
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Collect accurate information and data- In order to conduct the investigation, there is a
need to gather the reliable information and data related to specific research area. It will be
helpful in completing an investigation in a better manner.
Analyse Data- After collecting the all data or information, there is a requirement to
analysing it. Through this, McDonald's company can measure the effectiveness as well as
accuracy of information (Dibb and Simkin, 2013).
Take action- It is a last step in market research and under this findings are to be present
and also take better option. There is a need to McDonald's restaurant to create marketing
campaigns.
Role and responsibilities of a marketing manager
Marketing manager is an in charge of marketing departments and also responsible for
staff members with in department. Their main role is to assign the duties and also set the target
for staff. Different roles and responsibilities of marketing manager in McDonald's mention
below:
Developing marketing strategy- Under this, it is a responsibility of marketing manager to
develop effective marketing strategies for company. In strategies clearly mention about
promotion of services and products in target market with an objective of enhancing sales as well
as maintain competitive benefits.
Measuring success- In this role, necessary component of role of manager is to be
neglected is procedure of gathering as well as analysing data on success. It can be in the form of
sales figures, consumer satisfaction, website hits and data of market share.
Market research- Under this, it is a responsibility of marketing manager to conduct an
instigation in order to better understanding about needs of consumers. Marketing research is able
to determine new opportunities in market, helping in develop organisational value for services
and products (Durand and Barlow, 2012).
P2 Roles and responsibilities of marketing relate to the wider organisational context
Marketing plays a necessary role in developing better relationship among consumers and
firm that offering to market. In this, marketing function is tasted with the-branding of company,
participate in the public activities, consumers interaction by collecting feedback and advertising.
McDonald's restaurant provides the different types of fast food items to consumers on the basis
of their needs and demands. It helps in attract large number of consumers towards services of
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restaurant at market place. In this firm, there are many different departments are working and
they all are interrelated with the each other. Their main ficus is on attaining the business
objectives with in a given period of time. There are some roles and responsibilities of marketing
related to organisational context mention below as above:
Marketing and Human Resource Management- The marketing department of
McDonald restaurant is work with human resource in order to improving the knowledge and core
competencies of staff members at workplace (Khan and Adil, 2013). On the other hand, it is a
responsibility of human resource department to recruit the capable and well qualified employees.
The HR department provides training to employees so that their working performance can be
enhanced and they will interact with consumers in a better manner.
Marketing with Operations- Operation is process of developing, producing and
promoting of goods on the basis of needs of consumers and also sustain them for long period of
time at market place. In context to marketing department, it determine the needs of consumers,
existing products at marketplace, current market trends etc. With the help of this, operation
department produce the new products which can be more effective as comparison to its strong
competitors at market place. It is helpful in develop the positive impact on mind of consumers.
Marketing with Finance- In finance department include planning, auditing, organising,
controlling and also accounting the finance of firm. It is a responsibility of finance department in
McDonald restaurant is produce the financing statement in an effective manner. In order to
Marketing department, it conducts many promotional activities, advertising, launching new
products etc. So, for conducting all these activities, there will be need of funds. In context to this,
it is a responsibility of finance department is to arrange the funds (LEHTINEN and MÄKINEN,
2012).
Marketing with Production- Production is functional area and responsible for turning the
inputs in to the finished outputs with the help of process of production. This department is
responsible for producing the new products. The production department prepare the goods
according to consumer preferences. McDonald's provides the healthy and hygienic fast food
items to consumers which can maintain their health and also satisfy their neds in a better and
effective manner.
Value and importance of the marketing role
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Marketing is necessary because it assess in sell services or products. Marketing provides
confident to try new services and products in market as opposed to the situation where goods are
enter in market without any kind of issue. On the other hand, marketing is necessary because it
aids in sell products and also develop strategy to growth of business. The main aim of any
business is to earn money by using different channels for reach at end goal (Mueller and et. al.,
2015). The McDonald's company offers the food items and quick services which can develop the
positive impact in mind of consumer. Better marketing is helpful in attract the large number of
people towards the services and food items in a better manner. It is a primary responsibility of
company to determine needs of consumers and work on satisfying them. In order to target the
new market, firm develop the effective marketing related strategies for an instance use
promotional tools. Social media sites etc.
TASK 2
P3 Marketing mix to the marketing planning process to achieve business objectives
Marketing mix refers to tactics and strategies that an organisation uses in order to reach at
the target consumers. It consist of different components in which marketing mix forms marketing
system of firm and also help in attain goals of marketing. There is a comparison among the
marketing mix of McDonald's and Subway. McDonald's is a fast food restaurant and it provides
different kind of fast food items specially burgers. On the other hand, Subway is fast food
franchise restaurant that sells salads and sandwiches (Nguyen and Simkin, 2012). Comparison
among marketing mix of McDonald's and Subway mention below as above:
Basis McDonald Subway
Product McDonald's is one of fast food leading
food chain and it sells chicken products,
breakfast items, soft drinks, desserts etc.
It has included smoothies, fruits and fish
wraps.
Main product in menu of Subway
include Submarine Sandwich. Apart
from this, in its menu included
doughnuts, wraps, muffins, salads etc.
it has vegetarian and non- vegetarian
options to make its own sandwich.
This firm is also expand its business
in beverages with the ‘Seattle’s best
coffee’.
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Price This restaurant consists different pricing
strategies that provide large number of
food items with meals and some of other
products for consumers. To assure
consumers purchase more goods and
main focus of McDonald's is on
psychological pricing strategies. It
provide its food items on the affordable
cost so that consumers can easily prefer
them.
This company serves high cost
products as comparison to its
competitors. But it provide food for
the calories conscious consumers.
This restaurant claim that it provides
effective quality of food as
comparison to other competitors. The
pricing strategy of Subway is
differential pricing strategy with value
pricing is on the basis to value
generation in context to quality
provided through outlets of Subway.
Place This restaurant found in more than 110
countries and also operate more than
36000 restaurants in all over the world.
Various kinds of formats of restaurant of
McDonald's are Mc Express, Mc Drive,
Mc Cafe etc. and develop own taste
restaurant (Ottman, 2017). This firm use
the digital ordering and also offer table
services as well as free mobile charging.
Subway firm mainly operate its
business by franchise and it is one of
fastest developing franchises (Pappas,
2017). It has more than 44000
franchises across 112 territories and
countries. They are mainly located on
malls, business centres, military bases,
airports etc.
Promotion McDonald's spent more money on
advertising the campaign and uses
signage sponsors, newspaper ads and
different sporting events for an instance
Olympic games, FIFA world Cup etc. TV
advertisement is a main advertisement
form because it engage people in many
popular activities.
Subway restaurant uses the different
promotional activities in order to
promote its products or brands. It
advertise its food items, employ the
personnel that sells, include sales
promotion, public relation in its
promotional strategies. Its slogan is
“Eat Fresh” in order to promote high
quality and fresh food that they make.
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Process Over year, McDonald's has make
improvement in its cooking process and
methods that it used. It make use of
sophisticated equipments for processing
of foods and also new methods for
distribution and food packaging. Its
process of food manufacturing is visible
to consumers.
The USP (Unique Selling Proposition)
of Subway is transparency and it
provides to consumers while making
the fresh sandwiches. For Subway,
services are more necessary and its
main focus on provide better customer
service. Subway has effective storage,
supply chain, food procurement,
warehousing etc.
People McDonald's has effective and unique
method of addressing consumers and treat
its staff members in a better manner. In
this restaurant, there is a dress code of
employees and it emphasis on its staff
members to consumer friendly, affection
for people and cheering. Workers are
provided ratings on the basis of
performance and they are also encouraged
to take part in process of decision making
(Proctor, 2014).
Subway is prominent brand of
restaurant and its main focus on
people such as staff members and
consumers. It has more than 400000
employed people in all over the world
for whom consumer service is a main
priority. On the daily basis, it serves
million consumers in all over world.
Physical
evidence
The physical evidence of McDonald's
restaurant is good and attractive. It
develops great affect in mind of
customers. In physical evidence included
cleanliness, service speed, transparency in
process, hygiene and quality. The website
of this restaurant is user friendly and also
has strong presence.
In Marketing Mix, it is last element
and it refers to element of experience
of customers and physical
environment visitors. For Subway
restaurant, its physical evidence is
stores. Ambience at stores
maintenance, employees and locations
from physical evidence of brand.
Vegetables quality, used breads,
chicken, because of which food items
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are made.
TASK 3
P4 Produce and evaluate a basic marketing plan
Marketing plan refers to business document that outline marketing strategy as well as
tactics. It is develop for specific period of time and also cover different marketing related details
for an instance action steps, costs, objectives etc. Different steps in marketing plan given below:
Overview
McDonald's is fast food company and founded in year 1940 as restaurant operated
through Richard and Maurice McDonald in United States. It is one of the largest fast food
restaurant chain through revenue in world. It is well known for cheeseburgers, chicken products,
desserts, break fast items, soft drinks etc.
Vision
The vision of McDonald's is to provide the experience of quick services to consumers.
Best means offering quality, value, cleanliness and service which make the smile of face of every
customer (Rascati, 2013).
Mission
Mission of McDonald's company is to be favourite consumer place and way to drink and
eat.
Objective
The main objective of McDonald's firm is to provide great value and friendly
environment to consumers and also to be socially responsible to provide better return to
shareholders.
Segmentation, Targetting & Positioning
Segmentation- It refers to process of diving market of the potential consumers in to the
groups based on various characteristics. Under this market is divided on the basis of geographic,
behavioural, demographic and psychographic. In context to McDonald's, it uses only
demographic strategy with age as criteria.
Targeting- It implies selecting particular groups determined as segmentation result in
order to sell goods. The target market of McDonald's are Kids and Teenagers (Smith, 2012).
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Positioning- It refers to selection of marketing mix most effective for target consumer
segment. McDonald's uses an adaptive kind of products positioning. It is engaged in periodical
re-positioning of services and products in the basis of changes in segment.
Marketing Mix
Product- McDonald's has product mix that is mainly composed of beverages and food
products. The products those McDonald's restaurant provides are Hamburgers and sandwiches,
Desserts and shakes, Snacks and sides, Beverages etc.
Price- This element of marketing mix specify cost ranges and points of foods and
beverage products of firm. Its main aim is to enhance sales volume as well as profit margin.
Place- It enumerates locations or venues where goods are provided and where the
consumers can be access to them.
Promotion- It explains tactics that business uses to interact with consumers (Zimmerman
and Blythe, 2013). It promote its products through sales promotion, direction making,
advertisement etc.
Marketing Budget- It is an estimated cost amount that will be needed to promote the services
and products. It is a main part of market plan and also a process of marketing.
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 6500 9000 12500 16000 19000
Investment 15000 26000 30000 14500
Total 6000 24000 38500 46500 33500
Marketing outlay
Promotion 7000 4000 4500 3500 3650
Sales publicity 2500 2000 3500 2600 3000
Direct selling 4500 3500 6500 3500 4500
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