Marketing Essentials: McDonald's Marketing Functions and Plan

This report provides a comprehensive analysis of McDonald's marketing strategies, functions, and interdepartmental relationships. It begins with an introduction to marketing, defining its core principles and application within the fast-food industry. The report then focuses on McDonald's, detailing its company overview, products, and market position. It delves into the key roles and responsibilities of the marketing function, including marketing research, product development, distribution, financing, risk assessment, packaging, branding and quality control. The report further explores the interrelationship of marketing with other functional units, such as finance, human resource management, production, research and development, and customer services. Finally, the report discusses the marketing mix and concludes with an effective marketing plan designed to achieve the company's goals in a competitive market.

MARKETING
ESSENTIALS

INTRODUCTION
Marketing is the process, set of instructions and procedure for interacting, initiating,
bearing and transferring products which create value for buyers, partners and communities at
large. In other words, marketing is the process of management that is accessible in identifying,
satisfying and anticipating customers’ demands. Along with this, people who work in marketing

department of business organisations try in order to capture the the interest of customers by using
packaging designs, slogans and celebrity endorsement (Baker and et. al., 2016). McDonald's is
the chosen organisation in this present report. It is the biggest fast food restaurant chain serving
its services approximately 69 million customers over 100 countries. There will be discussion on
the roles and responsibilities of marketing functions through which managers can easily manage
all activities of their department. This report will also explain the interrelationship of marketing
with other functional units of company. Marketing mix of different business organisations is also
described here. This assignment also involves an effective marketing plan through which the
firm can easily achieve its goals and objectives in competitive market.
Company Overview
Marketing is the management function that plays a vital role in promoting and advertising
business as well as mission of company. It can be served as an important aspect of firm which
coordinates and produces all materials that represents the commercial entities. The marketing
department of McDonald's is able to reach at customers, community, investors and prospectus in
order to build an overreaching image which represents company's brand in the overall market.
Firm was founded in 1940 by Richard and Maurice McDonald's. It is located in 36900 locations
across the globe. The overall revenue of business is $24.622 billion. The company is engrossing
upon its core brand, McDonald's is started divesting itself with further chains. These are the
primarily products of McDonald's French fries, chicken products, cheeseburgers, hamburgers,
soft drinks, wraps, milkshakes and other breakfast items. After facing criticism and change in
customer’s tastes for the arthritic quality of their substitutes, brand has extended its menu by
including fish, salads, smoothies, fruit and wraps. According to the data promulgated in 2012,
McDonald's is included as the 2nd largest private employer; it has 1.5 million franchisors over the
world. But in external market there are many stakeholders which bear upon the firm, especially
on consumers' perception; the company also has a variety of corporate social responsibilities as it
can easily recognise interest of the stakeholders. The brand vision is “to supply the top-grade
service restaurant experience” whereas its mission is “to be the customer's first choice when it
comes to quality products, great value for money and outstanding services or cleanness”.

(Source: Overview of McDonald's, 2017)
TASK 1
1.1 Key roles and responsibilities of marketing function
In order to achieve vision and mission statements, company is trying to identify
customers’ needs and given them attractive offers or discounts on combos of food products. To
realizing this commitment in an effective manner, the firm is emphasising on bearing good
tasting and great quality food to their clients; it also emphasis on supplying a world-class
experience to customers as they can feel welcomed and valuable for the company. McDonald's
mainly targets adult generation and develop their products accordingly.
Roles and responsibilities of marketing: - The main role of marketing is to expand various strategies and policies which are
assistive in accomplishing goals and objectives of the company. These strategies are
helpful in maximising the share of company in a specific manner through which firm can
easily enter into a new sector or to ajar a new channel of distribution i.e. online
merchandising (Blythe, 2012).
 Effective communication is also an important role of marketing department by which
marketing manager can effectively communicate with all the departments as well as
subordinates. This is also assistive in promoting products and services to customers as
well as prospects.
Illustration 1: McDonald's

 Marketing department of McDonald's is liable to listen customers’ needs and wants. It is
an essential task for the unit to plan necessary means for getting customers feedbacks and
reviews by which company can easily develop the quality of their products and services.
Marketing functions: - There are given various functions of marketing and their roles or
responsibilities are stated as follows: -
(Sources: Roles and responsibilities of marketing functions, 2017)
 Marketing research: - This is an important function of marketing which helps to get right
product at the right place. This is necessary for company to find whether consumers are
getting optimum satisfaction as they remain loyal. Along with this, in McDonald's,
market research is assistive in finding new marketing opportunities towards existing as
well as trendy products. It renders information on market share, level of customers'
satisfaction, nature of competition, channels of distribution and sales performance (Clow
and James, 2013). Marketing research can also be used in analysing or monitoring
productivity of company in the target market. this also studies the effectiveness of the
sales force. Product development and designing: - New product development is too indispensable
for every company. This will be helps it to cover the large market share. Designing and
creating new products has a significant role in product selling. The organisation whose
products and services are better and innovative then others can gain higher sales and
Illustration 2: Marketing functions

profits in competitive market. It can be said that, the control of a special and effective
design affords by a company to attain a competitive advantage. This is crucial to
remember that it is not adequate to prepare a design with respect to a product, but it is
essential to develop it continuously. Product distribution – This function of marketing indicates the routes or pathways by
which goods and services flow from producers to customers. Distribution of channels
seems as the traced path that is involved in direct as well as indirect deportation of
holding of a product. The channel associates, such as brokers, merchandiser, wholesalers
and retailers are liable to perform all functions of marketing. These people can facilitate
the process of exchange and create time, possession and place utilities by sorting as well
as matching process. Sorting permits meeting the supply with buyer’s demand. Financing – It seeks with the life blood of every business organisation. Finance is
required for marketing of goods and services. These produced goods cannot be sold
immediately to the ultimate buyers. There is much time included in marketing or
advertising processes (Desai, 2013). Therefore, in business entities, finance is needed in
order to purchase the raw material, storage costs, insurance and meeting transportation
etc. Along with this, services to provide credit are required in the cost of getting
merchandise into the hands of their final users is commonly refereed to as finance
function in marketing. It can be said that “finance is the lubricant of marketing
machinery”. Risk assessment and quality control: - Marketing functions also involve assessing future
risks and uncertainties. Risk assessment is consists with looking at the variables which
could wallop on the sale of trades and services of company. With the help of marketing
research, managers can easily evaluate factors which will affect the market position of
organisation in competitive market. Whereas, another function of marketing is quality
control. It relates with looking that either product is able to stand up in market
competition or not. If it is not, then marketing managers need to generate more value in
that product.
 Packaging and labelling – Packaging aims to avoid damage, breakage destruction, etc.
of trades at the time of transit and storage. . Packaging alleviates handling, lifting and
conveying of the merchandises (Clow and James, 2013). Sometimes, customers are

demanded something different in qualities; they needs special packaging. Whereas label
is the slip that can be found on the product itself, for example- McDonald's is used “M”
as its label or logo which is established on its products and stores.
 Branding – Every owner/ producer wants that his or her products should have exclusive
identity over the market. Giving of distinct name to one's trade is called branding. Thus,
its main objective is to make product different from its competitors as to creates it won
identity.
P2 Interrelationship of marketing with other functional units
Marketing is not limited with selling even though it is also interact with other functional
units of the company. This will helps it to take important conclusions by finding out various
opportunities in order to manufacture impressive services for their potential customers in target
market. In other words, marketing encompass the entire business organisation. Business interest
and obligations for merchandising must permeate all areas of the commercial enterprise. In the
context of McDonald's, marketing is a strategical decision that depends upon mostly functions of
the commercial entity and it is a fundamental constituent of corporate strategy which is helpful
in the communicating the overall business plan. There are given following departments that are
interrelated with marketing department of the company: - Finance – Marketing planning also involves financial information for both current as
well as existing products. Marketing can be a mean that support management while
taking investment or financial decisions of the firm. In McDonald's marketing
departments will have to work intimately with the finance division in order to confirm
that the company has an adequate budget for meeting promotions, distribution and
research needs. Without publicity and promotion, the sales of the company cannot be
improved so as without marketing the company is not able to increase its profits (Jones
and Rowley, 2011). When there is no earnings the whole finance function will become
redundant. Similarly, to develop successful marketing managers needs to have a strong
base finance because with this, business organisations can easily set their goals for sales
and product prices as well. Human resource management – HRM helps in ensuring that befitting skills and human
forces are able to meet manufacturing targets and create an aspirant or competent sales
teams. It is the main role of Human resource department to fulfil all recruitment and

training needs within the organisation. Marketing and HRM are not separate; a company
needs to attract profitable buyers for accomplishing decent sales targets. This can be done
if the firm has got top talent personnels. Along with this, it is the main duty of HRM
department is to hire well skilled and qualified people whereas one basic rule of
marketing is to deliver what is to be promised. By innovative and creative employees,
commercial enterprises are able to produce better quality products. This will help in
increasing sales as well as profits of McDonald's. Production and operational – The linkage among operational and marketing department
is very crucial. Production department is liable to ascertain the number or kind of trades
which can be marketed or produced. During this time, an appropriate sales predict for the
product line that is constituent for expeditious product operations. The mutuality between
production and marketing divisions is so apparent in the improvement of new products
and services. The size of the new products is depend upon marketing research through
which managers can fulfil the needs and wants of customers (Papasolomou and
Melanthiou, 2012). Operation department, strives for the efficient and innovative
production which implies long runs, few models, relatively introduce anticipated changes
in the production outputs. Research and development – In McDonald's, the research and development department
should be intimately revelled to the firm's commercialising and the efforts new product
development. With the help of r & D department managers can easily understand
competitors strategies and their processes in developing new products for the company.
Along with this, each stage of new product evolution, from idea coevals to the final
product alteration requires ambient relationship among marketing and R & D department.
Marketing research can seldom observe innovative ideas for new products; it can render
penetration into customers, their unsolved issues and requirements. It is also helpful in
generating realistic expectations and an organisational climate which encourage sales and
profits of the firm. Customer services – This department is the critical part of marketing strategy; it is the
responsibility of the marketing department is to provide better customer services to their
clients and customers. However, many multinational organisations, i.e. McDonald's is
using online marketing and selling through which it can get a wide range to customers in

competitive market. For that, smart business are promoting their products at social media
and take online reviews so that customers services and marketing go hand in hand.
Additionally, it is essential for organisations to change the policies of old and put
together marketing and customer services as company can easily achieve its goals faster.
Customer service is also helpful in attaining and retaining the customers as marketing
spent their budget obtaining in the first place. Information technology – In this modern economic world, tools and techniques of
production and promotion are rapidly change. Several business organisations are adopted
such techniques for making creative and innovative that are able to achieve large group of
buyers from potential market of the company (Mihart, 2012). In this sense, business
entities are pursued various promotional methods for increasing their sales. McDonald's
is providing online services to their users as they can get its products in effective
manner. IT and marketing department have a rocky relationship; a marketer's needs to
better recognise the customers. It requires the investment and use of a significant amount
of technology.
 Sales - Marketing and sales are often seen as two separated departments within a
company; but although their daily operations are emphasised on the various aspects of the
customer relationship. Both units are function together as a single unit to make higher
profits. Marketing encourages leads and builds relationship with potential buyers through
a variety of strategies. Whereas sales teams develop a one on one relationship with the
buyers and they work too hard in order to assuring that customers can germinate an
interest in their company, to signing a contract and paying for a service.
Therefore, marketing department has a crucial role in the growth and success of overall
business organisations as well as its departments, i.e. finance, human resource management,
production & operations, research and development, customers services, information technology,
sales etc.
TASK 2
P3 Marketing mix of different business organisations
Marketing mix: - It is a planned mix which is controlled various key aspects of marketing
plan, i.e. – price, place, product and promotion. In addition, they are attuned until the correct

combinations are found; they serves the necessity of the consumers while provoking optimal
income.
(Sources: 7P's of marketing mix, 2017)
Marketing mix of McDonald's: - Product – In the service industry, consumption and production of the goods and services
are simultaneous and the product is intangible, perishable and diverse. McDonald's sells
numerous fast food products i.e. bigMac, chicken McNuggets, French fries, fish, McPuff,
hamburger, cocks etc. The brand also offers salads, shakes, oatmeals, sundaes, pies,
coffee, McCafe beverages and other. Although the company has done many efforts to
maintain its pledge; it is increased the quantity of nutritions in its meals. McDonald's is
continuously initiate unique products whereas it remove out older ones and emphasised
on proceed to do so (Nguyen and Simkin, 2012). In UK, McDonald's has a heterogeneous
products range that focuses more on non-vegetarian products as in this country there are
many non-veg customers. For children, the happy meal is a great seller between them. Price – The customer's viewpoint towards goods is an crucial factor of price change.
Buyers are already imagine their product's worth in target market. Every business
organisation needs to maintain its pricing policy that are affordable for potential
customers. Pricing mix of McDonald's follows cost leadership business strategy, its foods
Illustration 3: Marketing Mix

and drinks are extended for agonistic prices. The chain of fast food offer customers the
possibilities in order to dine for a fraction for costs that are changed by the majority of
other restaurants. It is most dangerous for business organisations to set prices of their
products because due to low prices company cannot achieve goals and objectives whereas
due to high prices it will loss many buyers in target market. Place – It is another important part of marketing mix that is not only concerned with the
distribution points or physical location of the products. Places includes the
administration of a range of production that is participated in brining products to its end
users. In UK, McDonald's is located in prime locations like- malls or shopping complex
etc.; it is almost in all big cities as customers can easily accessible to it (Desai, 2013).
McDonald's has 36,258 restaurants in 119 countries; the brand mission is to abolish its
existence over urban as well as in rural areas. Promotion – Promotion performs as same as marketing. For prevent service becoming
interchangeable with its competitors. Promotion mix has a vital role in creating a
desirable brand image and name within the market. McDonald's has included sales
promotions, loyalty schemes, direct mail, door drops, point of sale display,
merchandising etc. McDonald's advertise and promotes its products on social media, web
portals, TV, online, radio, poster and its also used various sites and media as well for
instance – magazines and newspapers. Hence, the fir is used these line methods; this can
supports it in-store promotions in order to influence people as they try the products. People – In McDonald's, there is well managed staff; they have a standard uniform.
Along with this, the company give importance on rendering friendly and prompt services
to their clients by its staff members. All new franchise's are also well-trained and
qualified in customer management ; they are kipping happy buyers. Process – The process of food manufacturing is totally transparent, for example- the
whole procedure is see-able to the buyers. Even the fast food joints permits as its
consumers can view and judge the hygienic standards at McDonald's. In some
programmes, it is allowed to customers, as they can determine all those material which
will be involved in food items.