Marketing Roles and Principles: McDonald's Marketing Strategy Report

This report provides a comprehensive analysis of the roles and principles of marketing, focusing on McDonald's as a case study. It begins with an introduction to marketing's core functions, including distribution, financing, and customer satisfaction, as well as its role in business expansion. The report then delves into the responsibilities of marketing within the broader organizational context, highlighting its impact on identifying customer needs, detecting market demand, and fostering business opportunities. The analysis extends to the marketing environment, differentiating between internal and external factors influencing McDonald's operations, such as political, economic, social, technological, and legal considerations. Furthermore, the report examines the interrelationship between marketing and other organizational functions, including production management, human resources, and finance. Key elements of McDonald's marketing strategy, such as strategy, research, tactics, and planning, are evaluated. The report concludes with a comparison of McDonald's marketing mix with other fast-food companies, such as Burger King, discussing the application of the 7Ps of marketing and their impact on business outcomes. The report provides detailed evidence-based marketing plans and strategic insights for achieving overall business objectives, offering a thorough understanding of marketing principles and their practical application in a real-world context.

Roles and Principles of Marketing
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Table of Contents
Introduction......................................................................................................................................3
Assignment 1 (Presentation)............................................................................................................3
1.1 Explaining main responsibilities and role of marketing (P1)....................................................3
1.2 Describing how responsibilities and role of marketing relate to context of wider
organisational...................................................................................................................................4
1.3 Analysing roles and responsibilities relating to marketing environment context (M1)............5
1.4 Analysing the importance of interrelationship between marketing and other functions of an
organisation (M2)............................................................................................................................6
1.5 Evaluating the key elements of marketing functions and analysing how they interconnect
with other functions of an organisation...........................................................................................6
Assignment 2 (Report).....................................................................................................................7
Task 1:.............................................................................................................................................7
1.1 Comparing the process of marketing mix to the marketing planning process of McDonald’s
and other fast food company (P3)....................................................................................................7
1.3 Evaluating the tactics used by McDonald’s for achieving business objectives (M3)...............8
Task 2:.............................................................................................................................................9
2.1 Evaluating basic marketing plan of McDonald’s (P4)..............................................................9
2.2 Coherent evidence-based and detailed marketing plan for McDonald’s (M4)........................10
2.3 Strategic marketing plan for McDonald’s for achieving overall objective of business (D3). .10
Conclusion.....................................................................................................................................10
Reference List:...............................................................................................................................12
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Introduction
Marketing refers to one of the functions of business where they promote their products or service
through advertisement and market research. Alternatively, marketing is the process, which
enhances the sales of products or services of business by promotions, advertisement,
communicating with customers, conducting market research and developing marketing tactics.
Marketing make people aware about the new product or service which business is launching and
changes in existing products or service if any. The concept marketing covers media,
programmatic advertising, covering advertisement, online platforms, videos and overall review
of market in which the business is operating. Junior consultant of fast food chain conducted
study on the marketing strategy, plans and principles of McDonald's to show the importance of
marketing as wider concept in business and expand their business.
Assignment 1 (Presentation)
1.1 Explaining main responsibilities and role of marketing (P1)
Marketing plays an important role for boosting up the sales of business and for expanding
business activities nationally or internationally. Business organisations have to incorporate
marketing activities in their activities to make money and survive in business market (Baker,
2014, p.56). The roles and responsibilities of marketing in the context of McDonald's are
discussed below:
Distribution: After production of goods or service, distribution of it to the customer is the main
task of business. Marketing helps in distributing of goods and service by promoting it to the
customers at higher level (Lovelock, 2011, p.36). Marketing interconnect business and
customers, which help in reaching target customers of business.
Financing: Marketing gives clear idea to businessperson about the budget of business before
entering into market, which assists them in formulating plans and procedures according to the
requirements.
Satisfaction: The marketing helps to evaluate the needs and requirement of business, which
assist them to produce products or service according to the needs of customers.
Creating trust: Based relationship: marketing includes various process of promoting product,
which creates a channel of communication between staff of organisation and customers
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(Bellenger et al. 2011, p.25). Therefore, marketing developed relationship between customers
and organisations.
Developing innovative techniques: marketing includes market research which assist business
organisation to know the current trends of demands among the consumers and help owners to
develop new innovative methods of production
Logical and systematic planning: marketing organize the operations of business in logical and
systematic way such as creates distribution system, product improvement methods and others.
Encourages people to purchase: marketing turns potential customers to actual customers of
business through attractive and innovative advertisement.
1.2 Describing how responsibilities and role of marketing relate to context of
wider organisational
Marketing creates wider opportunity for business to expand as it interconnects people with
business organisations. The key roles and responsibilities of marketing to create scopes where
business can flourish in wider context according to the McDonald’s business strategy are-
● It identifies the needs of customers
● Detect the demand of the product in market
● Create new opportunities for business by identifying new product area and potential
customers
● Helps to produce product or service according to the customer’s need which, fulfil their
demand
● Determines the amount of daily generating cash of business
● Identifies competitors of business and assist in framing policy to compete with them
● Helps in determining the strategies which are applied by organisation are giving fruitful
results
Marketing creates platforms where entity can interact with different customer and entities which
assist the organisation in promoting their business activities (Wilson and Gilligan, 2012, p.12).
The organisation get respond on various social media that interconnected with people globally,
thus creates global platform for business and provides them wider access to expand in
international market.
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1.3 Analysing roles and responsibilities relating to marketing environment
context (M1)
Marketing roles and responsibilities helps higher authority of organisation in decision-making,
planning, framing rules and policy regarding sales and purchase activities of business. The
elements which directly or indirectly determines the capability of organisation to undertake
business activities is termed as marketing environment of business (Christopher et al. 2013,
p.42). The marketing environment of business can be divided into two types such as internal
environment and external environment (Chen et al.2011, p.89). The internal marketing
environment of McDonald is consisting of employees, money, machineries, markets and raw
materials. The internal environment allocates the responsibility within the organisation, which
regulates the major functional area of business, which affects the activities of business (Tanner
and Raymond, 2011, p.37). The external environment of McDonald’s consist the following
elements-
Political- the political environment of various countries affects the operating activities of
business, as McDonald’s is food chain Company it have to maintains it quality of food and
charge appropriate price for operating in different political environment.
Economical- the company at it initial stage faces pressure due to unhealthy foods, which are
causing obesity in people, which they are offering. However, after recovering from the economic
downturn the business start boosting up and people prefer to visit McDonalds due it best choices
of ingredients in food.
Social- nowadays people are more active on social media, they are becoming more conscious
about their lifestyle and healthy choices of food. Therefore, the company had to maintain it
quality of food to offer healthy choices of food.
Technology- in terms of competition in the market, technology plays important role for
innovating new ideas of attracting customers.
Legal- Organisation had to comply with legal formalities for operating in business environment,
which assist them in expanding business.
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1.4 Analysing the importance of interrelationship between marketing and
other functions of an organisation (M2)
Marketing is done at the last of all production activity, which encompasses the activities of
business and reveals the importance and use of product to the customer. The marketing concept
is not only related with selling it specialized all the activity of business, thus should be apply in
all the fields of business activities (Christopher and Peck, 2012, p.42). Marketing relates with
production management, human resource management and financing of business to meet the
objectives of business (Babin and Zikmund, 2015, p.48). The interrelation between the marketing
and other functions of McDonald’s are discussed below-
Production management: marketing is closely interrelated with the production process as it
determines the demands and needs of customers according to which the production activity take
place in organisation. A good market research conduct by organisation planned the activities
relevant to the needs of customers and manufacture standard quality of product (Strauss, 2016,
p.13). It also helps to determine the volume of production and preparing time scheduled for
delivery of products.
Human resource: human resource department directly contacts with the customer so it should
be remain in close contact of marketing department to ensure research, developments, and
innovating new methods for meeting targets of the business.
Finance department: the budget of the company identifies the promotion, distribution and
research Activities cost of business. Thus, marketing will assist business in framing financing
policies of business and makes its profitable business sectors.
1.5 Evaluating the key elements of marketing functions and analysing how
they interconnect with other functions of an organisation
Marketing consist of different activities which are interconnected with different activities of
business such as pricing, strategies, product designs, advertising and other activities. The element
which are considered as backbone of marketing of McDonald Company are as follows-
Strategy: the company needs to formulate strategies and ideas for implementing of the
marketing factors for success of market. The strategies of the companies determine the aims and
vision of the company.
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Research: McDonald’s need to research on the consumers needs, preferences and choices of
foods for meeting the demands of consumers and for innovating new products for them
(Aronson, 2011, p.27). Research helps to forecast sales activities of business and determines the
profit of business.
Tactics: the tactics used by McDonald’s are very attractive and especially they are short-term
plans for booming the sales of business and increasing the competition level in business. As for
example, tactics implemented by McDonald’s are buy 1 get 1 free, free gift vouchers, festive
offers, branding and many more.
Planning: planning is most important aspects of marketing element and is interconnected with
all the other functions of organisation directly or indirectly (Hutt and Speh, 2012, p.19). Planning
is required for sales forecasting, budgeting, communicating with customers and framing policies
for achieving the goals of business.
Assignment 2 (Report)
Task 1:
1.1 Comparing the process of marketing mix to the marketing planning
process of McDonald’s and other fast food company (P3)
The key elements of marketing consist of price, product, promotion, place, process, physical
evidence and people, which make an organisation successful. The marketing element guides the
function of employees who are entrusted with marketing and help them in developing marketing
strategy of business (McDonald and Wilson, 2011, p.31). The elements of marketing which are
directly related with other units of McDonald’s are as follow-
Price: pricing of commodities are important element of marketing which includes amount of
money required for specific product and discount facility available to the customers. Strategy for
pricing is very much important for selling of product and making revenue for organisation.
McDonald's provides various deals to customers such as family meal. happy price menu, combo
meal and many more for attracting customers.
Product: companies had to maintain good quality of food and should offer healthy foods to
consumers to boost up sales. Therefore, marketing research helps to determine the demands and
needs of consumers.
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Promotion: promotion is part of marketing which helps to achieve target customers of business.
McDonald’s has adopted various promotional activities to promote their product and
communicate with target consumers.
Place: place mainly refers to distributing process of company. McDonald’s has expanded it
business activities throughout the world. It provides happiness and fun along with their food
service, which has created them the popular choice among people.
People: Respecting and understanding the importance of staff and customers of business are
most important for sustaining of business, internal marketing is regularly review by McDonald’s
for efficiency of business.
Process: the process of delivering service or product also affects the business activities of
business. The more the process of satisfying customer is done quickly the more will attract
customers.
Physical evidence: physical evidence refers to the cleanliness, transparency, location of stores,
maintenance that ensures the effectiveness of physical appearance of business.
Comparing the marketing mix of McDonalds with Burger king’ burger king also applies all the
7p’s marketing mix in their marketing plan but the company is not as popular as McDonald’s
brand. Burger king have followed a marketing strategy of placing their food products by
delivering them through the mobile apps to different places according to the customer
requirements. However, McDonald's have developed a marketing strategy of delivering products
through mobile apps as well as provide services to customers through different restaurants from
which it can generate revenue appropriately and effectively. McDonald's believes in making
pricing strategy as per customer expectation such as psychological pricing effectively and
efficiently. Bundle pricing and market-oriented value of food products are followed by Burger
Kings.
1.3 Evaluating the tactics used by McDonald’s for achieving business
objectives (M3)
Business strategies are the plans and procedure followed by business to achieve the desired goal
of business. Business strategies are long-term business plans which assist companies to survive
in the market. The business strategy of McDonald’s are elaborated as follows-
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Franchise model: McDonald’s is operating its business in all over the world, only 15% of the
restaurants are hold by the owner of the company and the rest 85% is held with the franchises.
The franchises of the company provides good quality of service and ensure the value for money
which people are spending on purchasing items (Dawson, 2014, p.73). Franchises of company
has expanded the business largely.
Product consistency: the McDonald’s maintains it product quality same all over its restaurants,
it has developed a logistical ways for distributing and operating it service. The taste of food they
supply are same which maintains their brand name.
Think like brand and act like retailer: the company aims on delivering product at time for
immediate present but also focus on protecting and maintaining its long-term brand
(McDONALD et al. 2016, p.22).
Segmentation of consumers: the company has segmented their production according to the
choices of customers, it focus on the choices of children, youth and elder people and then
produce according to their preferences (Vitasek and Manrodt, 2012, p.64).
Task 2:
2.1 Evaluating basic marketing plan of McDonald’s (P4)
McDonald’s is going to launch new food product specially focusing on youth, according to the
above study the company is following the basic marketing plan for promoting the product to
attract the key audience. The basic marketing plan of company includes product, price,
promotion and place.
Product: as the new product is developed focusing on youth, the taste and consuming facilities
of the product should be revealed to the consumers.
Price: the company should charge fair price if required can maintain low price to create market
appeal for the new product.
Promotion: the company is launching new product it should advertise the product on television,
social platforms, newspapers, visited restaurants to attract new customers and existing customers
towards the product (Payne and McDonald, 2012, p.44).
Place: the demographic and geographical location should be kept in mind while launching the
product as it largely affects the sales.
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2.2 Coherent evidence-based and detailed marketing plan for McDonald’s
(M4)
Evidence based marketing plans refer to the marketing type where company collect data from
statistical review, trends, research and customers review (Fifield, 2012, p.70). McDonald can opt
evidence based marketing plan for the new food product they are launching. The phases of
evidence based marketing plans are given below-
● Analysing the situation of market and company before launching
● Market intelligence refers to look at the market competition, the media and the category
of leaders
● Assessment of programs
● Research and reality check of the plans taken to launch a product
● Testing the market opportunities for the new product
● Expansion of the new food product
2.3 Strategic marketing plan for McDonald’s for achieving overall objective of
business (D3)
The strategic marketing is required for analysing the budget of company, for penetrating market,
to assess emerging challenges and cultural trends. The major components of marketing strategy
may be divided into two parts such as implementation of plans with marketing mix of the
company and competing with existing competitors. This two market strategy determines the
survival of new product (Czinkota and Ronkainen, 2013, p. 22). As according to the study
McDonald’s is launching new food product focusing on the youth, the company should apply the
above mention marketing strategy along with 7P marketing mix to promote the product in
market.
Conclusion
The above study shed light on the importance on the principle and strategy of marketing in food
chain industry, focusing on the strategy and marketing plans of McDonald’s. The study has
discussed and evaluated the roles and responsibilities of marketing in organisation along with the
inter-relationship of marketing with other elements of business. The study also compares the
marketing plan of McDonald’s with other food chain company and focuses on the methods used
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by McDonald’s for achieving business objectives. At the end of study, marketing plan has been
developed for arbitrary food product of McDonald and evidence-based marketing plan has been
discussed.
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