Marketing Essentials Report: Marketing Mix and McDonald's Strategies

This report provides a comprehensive analysis of McDonald's marketing strategies, focusing on the application of marketing essentials. It begins with an introduction to marketing concepts, including the marketing mix (product, price, place, promotion) and the importance of environmental analysis. The report then assesses the key roles and responsibilities of a marketing department, emphasizing strategy formulation, market research, brand value, and distribution. The report delves into the relationship between marketing elements and other departments, highlighting the interconnectedness of marketing with production, human resources, and research and development. The report examines how marketing contributes to the wider organizational context, including customer acquisition, sales growth, product pricing, company reputation, and competitive advantages. The report also compares the application of the marketing mix between McDonald's and Burger King and evaluates a basic marketing plan for McDonald's, covering product, price, place, and promotion strategies. The report concludes with a summary of findings and recommendations for further improvement.

Marketing essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Asses key roles and responsibilities of marketing department .............................................1
M1 Important roles and responsibilities regarding marketing environment...............................2
D1 Critically evaluate elements of marketing and hoe these are related with other
departments. ...............................................................................................................................3
Task 2...............................................................................................................................................3
P2 Ways in which roles and responsibilities contribute to wider organisational context...........3
M2...............................................................................................................................................5
D2 ...............................................................................................................................................5
Task 3 ..............................................................................................................................................6
P3 Compare ways in which marketing mix can be applied on planning....................................6
M3 ..............................................................................................................................................8
Task 4 ..............................................................................................................................................8
P4 Evaluate basic marketing plan for an organisation................................................................8
M4 ............................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing refers to the process which starts from manufacturing stage and ends with sale
of product. It includes four elements- product, price, place and promotion. Environmental
analysis is important task in this scenario which includes identifying macro and micro factors of
business. This report is about Marketing essentials which includes solutions for profitable sale.
McDonald's is the company chosen for this study. It is American fast food restaurant chain
which is found in 1940 . Headquarter of this company is located in Chicago. This company is
amongst world's largest restaurant chains as it is serving around 69 million customers in over 100
countries through approx 36,900 outlets. Main objectives of this study is to identify elements of
marketing mix to meet needs of target customers. It will also assess various marketing tools to
survive in this competitive world. Product life cycle, new product development, pricing
strategies and distribution channels will discussed in this report. It will also asses the ways to
develop in global market.
TASK 1
P1 Asses key roles and responsibilities of marketing department
Marketing functions includes activities that are needed to satisfy customer's needs and
demands in effective manner. It starts with identifying their demands and complete this by
providing them product along with high level of satisfaction (Dibb, and Simkin, 2013.). Some of
the basic marketing functions are buying, storing, packaging, standardizing, grading etc.
Important functions in context with M,c Donald are as follows-
Strategy formulation- First and important role of this department is to form strategies to
apply marketing mix effectively which will help in increasing market share and consumer . It
also includes techniques and steps to be involved in overall marketing process.
Research- Another major responsibility is related with market research to identify
potential buyers and opportunities available. Information and data is collected through surveys
which assists in effective decision making (Wirtz,2012.). It also helps in identifying strengths
and weaknesses marketing strategies of organisation and facilitates in taking appropriate steps to
overcome weak factors. This is also essential to know what consumers actually demands and
they will be satisfied.

Brand value- Marketing functions also plays important role in creating brand value
through creative and effective advertising strategies and bringing consumer loyalty towards
product.
Distribution- This is major role of marketing functions. It includes forming distribution
strategies. This is focussed towards adopting best channel to distribute products and make it
easily available to customers. There are various alternatives in this scenario, so it is responsibility
of marketing department to choose best one.
Managing budget- Every activity in these functions needs some amount of money to be
invested, for this marketing budget is prepared (Pike, 2015). It is responsibility of this
department to to use this fund in appropriate and efficient way by allocating proper fund in
various activities without wasting it.
Innovation and strategic planning- Another major task of this department is to bring
innovative techniques for advertising and promotion so that more consumers will be attracted. It
is also responsible for aligning marketing strategies with company's ultimate objectives and
missions.
Pricing – Making pricing strategies is another important role of marketing functions. It
includes pricing of a product. This is done through various methods and sometimes from market
demand. It is an important activity as price is the value for which product will be sell.
Digital marketing- It is emerging trend in context of marketing. This includes promoting
product and services through internet platforms (Lamb, Hair and McDaniel, 2011). Marketing
department is responsible for making effective plans and strategies for this to make brand
awareness at wider range.
M1 Important roles and responsibilities regarding marketing environment
Marketing environment is related with macro and micro factors that affects decisions
directly and indirectly. It is essential to coordinate with these internal and external issues to make
effective strategies for promotion, production and distribution. Key roles and responsibilities in
this scenario are as follows-
Consumer behaviour- It is essential to determine consumer behaviour to analyse their
demands, tastes and preferences. This study helps in bringing chances in products features as per
user's requirements.

Competitor's study- Another major element of marketing environment is competitors.
Actions of these external forces has huge impact on decisions of organisation. Therefore, it is
required to identify tough rivals and their marketing strategies so that competitive advantages
can be achieved.
D1 Critically evaluate elements of marketing and hoe these are related with other departments.
According to Desai, (2013) marketing elements are having relationship with other
departments of an organisation. Every functional unit in an company works towards achieving
maximum sales and profits. Product is main component in marketing which is also important for
production department because they are involved in its manufacturing process.
On contrary to this according to Blythe, (2013), marketing is an activity performed by various
individuals so human resource department is also related with this as they recruits qualifies and
skilled employees from this field. Also, training and development required for marketing
personnels is done by HR division. Promotions are done on the basis of ideas generated from
research which is function of research and development department. So, it can be evaluated that
elements of marketing are directly and indirectly related with other functional units in an
organisation.
Task 2
P2 Ways in which roles and responsibilities contribute to wider organisational context
Marketing is very essential for growth and success of an organisation. Its elements arev
related with smooth operation of business. It includes activities like, promotion, advertisements,
pricing , distribution and conducting market research. Consumers awareness remains low if there
is no marketing for an product. It is very essential in making consumers informed about the
product Mc Donald is offering. So, this is related with wider organisational term in following
manner-
Knowing prospective customers- Identification of potential buyers is very important to
know the number of users interested in products an company is offering. It also helps in knowing
what they are expecting from an product. This assists in developing production process and
marketing strategies as per their preferences. If they will get what they were expecting then they
will be more satisfied. This may lead to huge sale and more profits to company.

More sales- Marketing helps company in knowing who are their potential customers so,
they can manufacture products as per their tastes and preferences. This will facilitate in more sale
as buying will increase (Malhotra, Birks, and Wills, 2013). More selling results in enhanced
financial gains. This also helps in selecting best and most effective distribution channel so that
products will easily reach its end user.
Product pricing- It is another important function of marketing. It includes making pricing
strategies for products an company is offering. Effective pricing helps in attracting more
customers. Marketing department is focussed towards giving appropriate price to goods which
will be in favour of company and consumer both. This helps in bringing more customers in
organisation.
Company reputation- Growth of an company is result of its goodwill and image in
market place. Effective policies of marketing helps in brand awareness and attains consumer's
loyalty and attention in an particular brand. Good reputation leads to long term profit and
survival of company (Jones, and Rowley, 2011). It also plays an major role in expansion of
business. Consumers does not thinks to switch with other alternatives when they are loyal
towards an reputed brand.
Brings dynamism- It refers to ability to adopt changes. Marketing also plays an major
role in identifying changes occurring in external environment. Since, these changes are known ,
so it helps in actively dealing with them. It allows to maintain coordination with these trends and
avoid negative effects of these factors.
Competitive advantages- To survive in today's competitive world, it is essential to
actively deal with the competition. Since, pricing and distribution strategies are strong so it helps
in giving tough rivalry to other firms and maintains healthy competition in marketplace.
Product life cycle- One of the major task of marketing is to develop product life cycle. It
has various phases – development phase, introduction phase, growth, maturity and decline phase.
These cycle begins with development of product and lasts till its decline. Understanding this
cycle is very important for company to make adequate decisions regarding timing of introduction
, prices and ways to form marketing strategy for product. This facilitates in designing strategies
in effective manner and results in sales generation and profit maximization.
Product uniqueness- It also helps in differentiating a product from other competitor's
products. Effective advertising help customers in identifying famous brand easily. Different

promotional strategies aware users about features of any product which helps them in
identifying it amongst various identical goods.
M2
Marketing and other departments are having very significant role in an organisation. It is
essential to have proper communication between all functional units. Its activities are related
with functions of other departments. Demand identified by this department affects scale of
manufacturing that is related with production department. Marketing also includes sales
maximization which is carried out by sales unit. Research is very essential component in this
scenario which is task of R&D departments. Also creative and innovative ideas are generated
from this department to make marketing more effective.
D2
Marketing mix can be used to set targets, objectives and goals of an organisation.
Marketing plan for Mc Donald will be in following manner-
Product- Fast food items are product of this company which are famous due to its quality
and taste .
Price- As per current scenario this business concern is market leader in this sector. Due,
to its reasonable prices for people of all income groups, it has many loyal customers. Therefore,
its pricing strategies are very effective.
Place- This company has covered large market area due to various outlets located in
different countries.
Promotion- Advertising and promotions are done through print media, TV, and internet
platforms.
Physical evidence- Its outlets in around 100 countries.
People- Marketing professionals and target buyers are people involved in this context.
Process- Effective process of delivery and service in restaurants to satisfy customers by
meeting their demands.

Task 3
P3 Compare ways in which marketing mix can be applied on planning
Marketing mix is combination of various essential elements of marketing. It consists
various ideas and plans that are required to make effective promotion and sale of a product. Its
key elements are product, price, place, promotion but as this company is also involves in service
providing so, there are three extended p's that is people, process and physical evidences. These
components plays an major role in making effective and strong strategies of marketing. It is also
essential in knowing who will be the potential buyers and how to meet their needs. Marketing
mix plays vital role in taking effective and adequate decisions and building customer value.
Comparison between various organisation is as follows-
Basis Mc Donald's Burger king
Product It is an leading fast food chain in
world. Its products are fast food
items such as burger, French fries,
etc. It is known for its quality
products and meeting effectively
with taste and preferences of
consumers in various countries.
This is also involved in same
operations but due to lack of effective
marketing strategies its products are not
that famous amongst consumers.
Place This organisation have very large
channel of distribution as it is
serving its products in approx 100
Products of burger king are not easily
available in all countries as its
ineffective channel of distribution.
Illustration 1: Mc Donald's, 2017

countries through number of
outlets. This is also providing
home delivery services to its
consumers.
Number of outlets of this organisation
are comparatively less.
Promotion Promotion strategies of this
company are very strong and
innovative. Joker sitting outside
its outlets is an eye catching
technique of promotion. Along
with that, print ,media, TV and
internet are other important
platforms for advertising.
Its promotional techniques are
comparatively weak and this is the
reason why its brand name is not that
famous amongst people.
Price Pricing strategies are impressive
in case of this company. Its
product's price are designed in
such a way that every income
group can afford its products
easily.
Pricing is quite high as compare to
other fast food restaurants. Due to this
customer traffic is also less as they
have various better substitutes available
which are in there purchasing power.
Process Process of delivering products and
services is very effective as
consumers are easily getting what
they want.
Process of this organisation is good but
it need to work hard to make it more
efficient.
People Customers and marketing
professionals are key people
involved in this element.
Manpower and and target audience are
people involved in this scenario.
Physical evidence Outlets, restaurants, banners and
other tangible things associated
with this company.
Hoardings, fast food chains of burger
king are main physical evidences in
this organisation.

M3
Marketing is very essential for Mc Donald's to achieve its business objectives. There is
need to follow these strategies-
Financial resources- It is essential to invest in good and profitable sources which will
give effective results in future. This will help in expanding financial resources of company and
leads to future expansion.
Creativity- Its plans includes bringing innovative techniques to attract more attention of
consumers. It helps in managing creativity and getting new ideas in business. This assists in
attaining competitive advantages and getting long term profits and growth in business.
Market leader- Marketing plans also plays an important role in becoming market leader
by providing quality services and products through effective channels of distribution.
Global expansion- These plans are also helpful in expanding business globally. This is
reason why this company has its outlets in more then 100 countries all over the world. This brand
name is very famous in international market. This helps in achieving objectives of this concern.
Task 4
P4 Evaluate basic marketing plan for an organisation
Marketing plans are very essential as it provides directions to employees about their tasks
they have to perform in future. It consists activities to be performed in in order to gain objectives
in this context. Evaluation of marketing plans in an organisation are as follows-
Illustration 2: Burger king
logo, 2017
Illustration 3: Mc Donald's logo,
2017

Potential customers- This marketing plan includes identifying prospective buyers. They
are the people who will focussed while overall marketing functions. They are studied and
classified on the basis of demographics, behaviours, tastes and preferences etc. These are
targeted users whose demands are to be fulfilled and satisfied through products of this company
(Nguyen, and Simkin, 2012).
Market segmentation- In this marketing plan, market is divided into various divisions on
the basis of factors like psycho graphic, demographic, attitudes and geographic factors. This
classification helps in making effective and productive strategies so that different segments can
be targeted through suitable techniques.
Situation analysis- This is very important to develop marketing plans through situation
analysis. It includes identifying the challenges that can be faced during achievement of
marketing objectives. This consists analysing both external and internal factors of business so
that chances of risks can be avoided.
Goals- It is required to develop targets, strategies and goals. These are formed by keeping
long and short term growth of business. Such goals should be reliable and flexible. Marketing
plans are focussed towards achievements of these targets.
Budget- It refers to the amount allocated for activities of marketing. Plans includes
managing this amount and divide it in proportion of various tasks to be performed.
Research- This is vital part of marketing plan. Target market is identifies in this and
environmental factors are also analysed so as to take decisions as per that. It helps in overcoming
weaknesses and convert it into strengths.
SWOT- This analysis plays an major role in knowing strengths, weaknesses,
opportunities and threats related with an organisation. This helps in effective formulation of
marketing plans.
PESTLE- This study is related with external environment of business. It consists
analysing political, economical, social, technological, legal and environmental components that
may affect marketing strategies so it is necessary to involve them in planning process to make
decisions more effective (Mihart, 2012.).
BOSTON matrix- This is portfolio of products that divides products on the basis of
market-share and market growth. This is relied on various probabilities such as cash surplus will

be gained in life cycle of product and better opportunities will be occurred during development
stage of that product.
M4
Evidence based marketing plan is an strategy in which organisation conducts research to
gather statistics, data, customer's interviews and practices of industries to make plans for
marketing activities. Real situations are used to take decisions (Papasolomou, and Melanthiou,
2012.). This is very impressive way of making plans. It can be performed in following manner-
 Situations are analysed that are existing in current marketplace. It facilitates in collecting
appropriate data and information to make plans.
 At this phase , assessment is conducted which helps in getting the facts of study deeply.
 In next stage, reality check is done to evaluate the reliability and feasibility of plans.
 At this stage marketer gets everything about real situation of marketplace so, plans are
made successfully through evidence based marketing (Gertner, 2011).
CONCLUSION
It can be concluded from the above report that, marketing is very important part of Mc
Donald's for achieving success and becoming market leader. Its functions plays vital role in
development of company. It is very helpful in attaining objectives of business so that success and
growth can be gained in long run. Roles and responsibilities of marketing functions are essential
in maximization of sales and profits. There is important relation between other departments and
marketing functions. Marketing plans should be focussed towards achieving ultimate objectives
of company. This report also states, that external factors are to be involved while taking any
decision in marketing department. This reduces chances of risks and helps in dealing efficiently
with these outside issues. Evidence based marketing plan makes planning process more real and
focussed towards practical environment. Application of marketing mix is very essential in
bringing profitability in business. Functions of marketing are related with functions of other
units.