McDonald's Marketing Essentials: Analysis, Strategy, and Planning

This report provides an analysis of McDonald's marketing essentials, focusing on the key roles and responsibilities of the marketing function and its relationship to the broader organizational context. It examines how McDonald's applies the marketing mix (7Ps) to its marketing planning process to achieve business objectives, including enhancing customer satisfaction, expanding business scope, optimizing resource utilization, increasing brand loyalty, and fulfilling social responsibilities. The report also details the interrelation of marketing with other functional units such as finance, HR, production, and R&D. By conducting market research and adapting products to local tastes and preferences, McDonald's demonstrates a strategic approach to product development, pricing, and promotion. Desklib provides access to this and other solved assignments for students.

Marketing Essentials

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
P1............................................................................................................................................1
P2............................................................................................................................................3
TASK 2......................................................................................................................................4
P3............................................................................................................................................4
TASK 3......................................................................................................................................7
P4............................................................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
In the present world, marketing has become the most essential element for all
organisations and becoming more focused on directly connecting with consumers so that
business can survive for longer span of time. Nowadays, firms are making the marketing
experience more personal as it is serving as the key for sustaining with consistency that result
in increased profitability and market share (Groucutt and Hopkins, 2015). In the present
report, there will be discussion on the key roles and responsibilities of marketing function and
the way in which they relate to wider organisational context. For this purpose, McDonald’s
has been chosen that is one of the leading firms in restaurant industry of US that deals in fast
food and well known for its hamburger. There will be study on comparing the ways in which
McDonald’s applies marketing mix to the marketing planning process to attain its business
objectives. Furthermore, a basic marketing plan for McDonald’s will be produced and
evaluated.
TASK 1
P1
In McDonald’s there are various key roles and responsibilities of marketing function
that firm has to follow so as to attain its set targets and remain in the market with gaining a
competitive edge over others. The key roles and responsibilities of marketing function in
McDonald’s are:
 Making strategy – In cited organisation, it is the responsibility of senior members of
marketing department that they formulate the marketing strategy by keeping in mind
the latest trends of market as well as consumers. The strategy is to be set in line with
overall objectives of business. This strategy is mainly based on increasing the share of
market in restaurant sector by either entering in new market or by establishing a new
channel by which distribution of products can be done such as internet so that
attention of customers at a large scale can be grabbed (The 10 Responsibilities of
Marketing Departments, 2013). For the same, marketing department is responsible to
finalise the strategy by consulting with senior management team before a detailed
planning will be done based on campaign.
 Conducting market research – Doing market research is the key responsibility of
marketing department in every organisation and as that of in McDonalds. With the
help of research, cited restaurant identify present marketing opportunities as well as it
helps in gaining a better understanding about the needs and demands of customers
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that get fluctuated with the changing scenario. Proper market research proves to be
highly helpful in making the firm able to understand competitor’s strengths and
weaknesses according to which McDonalds make modifications in its strategy (Jobber
and Chadwick, 2012). With the help of this, firm comes in position to beat the
competition by retaining existing customers in the long run and strongly lead
business. Marketing department of McDonalds carries out its own research through
market data that is available on websites, industry reports, by making contact with
customers and taking their feedback along with assessing their needs and attitudes
(Kotler and Armstrong, 2013). However, there is one more way by which McDonalds
can carry out research is through briefing a market research firm that can conduct
research on the behalf of cited restaurant for which it will charge particular amount.
 Product development – In McDonalds, marketing department is contributing efforts
with internal and external product development teams so that a new product can be
developed as well as the existing ones can be improved. It is the responsibility of
marketing department of McDonalds to analyse sales of existing products and
assessing whether there is any gap in the product range or not. Through the same,
cited restaurant can gain various opportunities for the business (Dibb and Simkin,
2013). Development teams are made by marketing employees in this restaurant who
have detailed information about the needs and preferences of customers. Through this
information, it becomes easy for McDonalds to identify all features or improvements
that are needed to be incorporated in the existing or new products. Later, when the
firm will start product development process, marketing department plays an important
role where it will set the price and do proper planning so that product can be
effectually launched and will become successful in the market (Coombs, 2012).
 Communication – Apart from that, in McDonalds, marketing department also plans
campaigns as well as develop and gather material by which it can communicate with
the customer base through promoting products and services to the target market. It
completely depends on the budget of organisation according to which organisation
plans that whether it will adopt the way of advertising campaigns, create promotional
content for the website of firm or use social media (Papasolomou and Melanthiou,
2012). Every promotional technique is used depending on the product as well as on
budget. Apart from that, firm can also write and design the material that it will use to
promote the product. However, it can only be done if skilled employees are there in
the marketing department of McDonalds. Otherwise, firm will have to appoint some
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advertising agency that can help in designing and producing the work in desired
manner (Lamb, Hair and McDaniel, 2011).
 Providing sales support – In any organisation, sales performance gets improved by
the efforts of sales and marketing department when they work together. In the same
way, in McDonalds as well, for the business growth, both the departments, that is,
sales and marketing are cooperating with each other. Here, marketing departments
provides targets to the sales team by the way of running advertisements that consists
of reply mechanism (Hung, 2010). It leads to encourage the customers to visit the
website of McDonalds so that their details can be registered.
 Organising events – Furthermore, one of the role that marketing function plays in
McDonalds is organising events like exhibition or customer hospitality events so that
attention of target market can be captures. In addition to this, many a times, restaurant
promotes external events to customers so that their attendance can be ensured
successfully. It helps in grabbing the attention of new prospects as well
(Mihart, 2012). These events sometimes includes planning the logistics like displays,
hand-outs or presentation, exhibition booths, etc.
P2
The roles and responsibilities of marketing related to the wider organisational context
of McDonalds are stated as below:
 Enhancing customer satisfaction – Major focus of marketing in organisational context
of McDonalds is on enhancing the satisfaction level of customers as this is the most
effective way to attain growth and success in the market. For this purpose, restaurant
offers high quality products to the target audience at reasonable cost so that they can
be kept satisfied and will be retained in the long run (Wang and Tzeng, 2012).
 Expanding the scope of business – By conducting market research on continuous
basis, marketing department of McDonalds keep on searching the prospects that can
be captured to increase the scope of business. Thus, by assessing changing tastes and
preferences and providing products accordingly, firm captures the attention of new
customers and target new segments so that business can expand in new areas and
profits and market share of the cited restaurant would get increased (Griffitts, 2016).
 Optimum utilization of resources – One of the main focuses of marketing department
of McDonalds is to use the available and limited resources of organisation in an
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optimum manner. It is the aim of restaurant to gain highest possible returns with the
use of minimum resources.
 Increasing brand loyalty – Through providing customer satisfaction by offering high
quality products in an ethical and fair manner along with charging a reasonable
amount, McDonalds is gaining the advantage of increased brand loyalty of target
audience which is leading to repeat purchase of them (Wu, Kirkole and Huang, 2016).
 Fulfilling social responsibility – Apart from that, with fulfilling all responsibilities
towards business, to perform the liabilities towards society is also important for
McDonalds which it does in an effectual manner. Restaurant organises many events
like daily litter patrols, Keep Wales Tidy, etc. that are aimed to support the Ronald
McDonald House Charities (Purvis, 2016). By this way, they are fulfilling the social
responsibilities and enjoying benefits of the same.
Relation of marketing with other functional units of organisation is stated as below:
 Marketing and finance – Finance department in McDonald’s work as per the details
gained by marketing department. It is because; as per the market research, this
department provides details about the quantity and quality of production that is
needed to be done and for the same, finance departments provides fund. Apart from
that, for conducting all marketing activities, it is the finance division that provides the
required funds.
 Marketing and HR – Both these departments coordinate with each other McDonald’s
as according to the level of operations being taken by the marketing department like
organising campaigns or other promotional activities, number of staff is required for
providing of which; HR department in the firm is responsible. Apart from that, as per
the latest updates provided by marketing department through their research, new
policies are formulated by the HR division and existing one are modified.
 Marketing and production – The most important role played by marketing department
in McDonald’s is to provide information to the production department regarding the
quantity and quality that is required in the products to be offered in the target market
as in accordance with the same, goods are produced by the firm.
 Marketing and R&D – These both departments in McDonald’s run their activities
simultaneously and through coordinating with each other as major task of R&D
department is to conduct research in the target market where the firm is already
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having its presence and also at places where it wants to operate in the future so as to
increase the scope of business at a larger scale.
TASK 2
P3
In a specific way, McDonalds applies the marketing mix to its marketing planning
process with an aim to attain the business objectives. With respect to cited restaurant, the 7Ps
of marketing mix is explained as below:
 Product – It includes the technical features of product along with benefits it serves to
public as well as the limitations if any are associated with it. McDonalds is serving the
society, that is, its target customers with high quality products with giving ensured
about the ingredients used. Cited restaurant has made intense research in the markets
before operating there and accordingly, as per the tastes and preferences of customers,
it is offering products in all different segments (Bhasin, 2016). For example: In all
north western nations, it is offering non-vegetarian products having meat of beef in it.
However, in India, it has changed the menu and offering products which matches with
the values, tastes, beliefs and culture of people residing there. In India, beef meet is
considered to be against the values and culture of Indians. Thus, in accordance with
the tastes of people in this nation, McDonalds has offered vegetarian food with spicy
flavour as in India, people prefer to have spicy food (Brassington and Pettitt, 2012).
By keeping in mind the likes of children, youngsters and old age people, products are
made and served to the customers. Every product offered by this fast food chain is of
high quality that is satisfying the customers effectually.
 Price – In marketing mix, price plays a significant role on which the success of
product depends to a high extent as this factor decides the level of sales in target
market. McDonalds is known for offering products at very reasonable rates that every
segment of the market can afford. As per the economic condition in a country, price
of products are set and charged from the customers in which the spending power of
them is seen (Kilkenny, 2010). However, it can be said that as per the quality of
products served, price is comparatively very less and reasonable. This is the reason; in
every area the firm has operated its franchisee, there is high footfall of customers
which is leading the firm to earn higher profits and revenues.
 Place – McDonalds operates by the way of opening franchisee as well as it is mainly
located in all those areas which are highly crowded and where it is convenient for
5

customers to approach. Location of McDonalds plays a significant role in increasing
the customer base as by having convenience to reach at the place where it is situated,
they feel satisfied (Spillan, 2010). It increases the interest of customers as of
franchisees are situated at very distant places, it results in decrease in the footfall as in
the present scenario where the competition is very high, it is important to provide
customer convenience as they can switch over to other competitors firms like Taco
Bell, KFC, Subway, etc. (Uyttersprot, Vermeir and Geuens, 2010). Thus, if location
would not be proper, it may lead to decrease in the profits, market share and goodwill
of firm in the market.
 Promotion – Promotion is that element of marketing mix which helps in increasing
the revenue of business as if it is given in an effective manner, it proves to be highly
helpful for capturing the attention of people which increases the existing customer
base of firm. McDonalds put a huge emphasis on its promotional activities and thus, it
uses tool of advertising on social media as well as on mass media so that a large
customer base can be grabbed and revenues for the firm can be increased (Brassington
and Pettitt, 2012). With the help of this tool, within a very short duration, information
about the product, that is, its benefits and features, is given to customers in a manner
that it can attract and convince the customers to buy the same. However, advertising
proves to be an expensive way of promoting product but ultimately, it renders huge
benefits (Groucutt and Hopkins, 2015).
 People – This element of marketing mix states about the different roles of people in
marketing which involves support personnel as well as the customer interfacing.
McDonalds emphasises on the skills, attitudes and behaviour of its employees and
make efforts to improve them so that delivery of products can be done effectually and
they can render services in such a manner that customers would get satisfied (Jobber
and Chadwick, 2012).
 Physical evidence – It refers to the physical ambience of restaurants of McDonalds
which influences the behaviour of buyers to a high extent. As McDonalds keep in
mind the choices and likes of all its target segments, so for kids, it keeps a special
zone where there are toys and other stuff which captures the interest of them.
However, for youngsters, if provides different seats at the corners where they can do
chit-chat along with having their food (Kotler and Armstrong, 2013). Apart from that,
in the restaurants of McDonalds, LEDs are fixed on the walls in which all time
puzzles and quizzes are shown that people have to solve which makes place more
6

interesting. Therefore, physical appearance of McDonalds plays a crucial role in
capturing the attention of target audience (Papasolomou and Melanthiou, 2012).
 Process – Advanced and latest technologies are used by the organisation for keeping
its process of manufacturing fast and smooth as well as delivering products to
customers without any delay. These technologies are helping McDonalds in serving
customers in an effectual manner and earning good amount of profits by their repeat
purchase of the products (Coombs, 2012).
In the marketing planning process of McDonalds, these marketing mix elements high
contribute with the help of which set business objectives are attained. In the first step of
process when analysis of the market is made where firm is planning to operate, all elements
are needed to be kept in mind as according to tastes and preferences of target customers,
product will be manufactured, as per their convenience location will be decided, in
accordance with the presence of competitors in market as well as the spending power of
customers, price of product will be set and to grab the attention of them, suitable promotional
technique will be selected (Dibb and Simkin, 2013). Apart from that, in order to make the
marketing planning process successful, people, physical evidence and process are considered
and taken in use in the most effective manner. With the help of this, next stage of planning is
done and after that, proper execution is made. Then, it is seen by McDonalds that whether the
plan is rendering results as per the set standards or not and in case of any deviations,
corrective measures are taken by the organisation (Lamb, Hair and McDaniel, 2011).
In order to perform in a different and better way in comparison to other competitor
organisations like Subway, KFC, Burger King and Taco Bell, McDonalds has to use all
elements of marketing mix in an effectual manner. For example: Burger King also deals in
fast food and with changing tastes and preferences of customers, it is offering a wide range of
muffins, French toast sticks, milk shakes, etc. (Hung, 2010). Thus, to sustain the leading
position in restaurant sector with having specialisation in hamburgers, McDonalds is required
to formulate marketing strategy in such a way that it can offer differentiated products to the
target customers along with benefits that no other competitor is offering. However, firm is
already have a distinct brand image with offering high quality products at reasonable price
which is less in comparison to all rivalry organisations (Mihart, 2012). This is the reason; it is
having highest customer base. But, to maintain this position and retain customers in the long
run, McDonalds is needed to focus on its marketing planning process.
Organisat Product Price Place Promotion People Physical Process
7

ion Evidence
McDonal
d’s
Burgers,
French
fries,
shakes,
ice
creams,
ice tea,
etc.
Cost
leadersh
ip,
affordab
le
product
s and
low cost
food
franchis
e
Shoppi
ng
comple
x,
malls,
almost
in all
big
cities,
coverin
g many
resident
ial
areas.
Advertisin
g through
TV, radio,
cinema,
online as
well as
newspapers
and
magazines.
Fast and
friendly
services
with
high
quality.
Highly
maintain
ed
building
with an
eye-
catching
ambience
.
High
transpare
ncy is
maintaine
d in
operation
.
KFC Chicken
snacker,
potato
crisper,
cold,
coffee,
brownie
blast, etc.
Optiona
l pricing
and
mixed
bundlin
g
pricing
Outlets
in
metros
and
Tier I
cities
and
now,
moving
towards
Tier II
cities.
By offering
add-ons to
the existing
menu, gift
coupons,
T-shirts,
Kids meal
etc.
Fast and
superior
services
with a
polite
attitude
if
employe
e.
Healthy
and
positive
environm
ent in
stores.
Trained
staff
performs
the work
with high
quality.
Burger
King
Hamburg
ers,
chicken,
French
fries, soft
drinks,
Quite
affordab
le
product
s
Located
at prime
location
s,
almost
in all
Target
customer is
children,
using
media like
TVs,
All
outlets
are
headed
by a
restaura
Location
and
appearan
ce is
highly
loved by
New and
latest
technique
are used
in the
process.
8

milkshak
es, salads,
desserts,
breakfast
and hot
dogs
big
cities,
resident
ial areas
and
malls.
hoarding
and bus
shelters.
nt
manager
,
delivery
is done
by crew
member
and
custome
r
satisfact
ion is
ensured.
people.
Subway Submarin
e
sandwich
es,
Pizzas,
salads,
etc.
Premiu
m
pricing
Franchi
ses in
one
hundred
and
eight
countrie
s
TV
advertisem
ents along
with social
media and
“instant
win” type
of games.
High
quality
services
are
offered.
Fresh and
delightful
ambience
.
Food
producin
g is
completel
y
transpare
nt to
consumer
s.
TASK 3
P4
In today’s era, with increasing level of competition, it has become highly important
for McDonalds to keep the customers satisfied with offering products as per the changing
tastes and preferences. As in the present scenario, people have become health conscious, so
McDonalds can bring healthy salads for them that will help in retaining the customers as they
would not switch over to other firms like Subway (Ccdonald and Wilson, 2011).
Development and evaluation of marketing plan for the same is:
 Market segmentation and target market selection – For the marketing of new product,
that is, healthy salads, at first, McDonalds will be required to do segmentation that
9

will be done on the basis of demographics and psychographic, that is, factors of age
and lifestyle can be taken into consideration respectively. As old age people do not
prefer to have junk food and they require healthy diet, this product can easily target
this segment (Westwood, 2013). Apart from that, people who are office going and
have a tight schedule, they prefer to have light food so that they can easily for long
hours, for them as well, product will prove to be appropriate. Thus, both the ways
would prove to be effective for McDonalds to target these segments.
 Setting goals and objectives – After that, specific goal and objectives will be decided
like; to increase the customer base by 20% within a year along with profits up to 30%
(Griffitts, 2016). In order to attain these objectives, McDonalds will take sincere
efforts so that within decided timeframe, set goals of the firm would be achieved.
 Situational analysis tools and techniques – Later, for situational analysis, tools and
techniques like SWOT analysis, Porter’s five forces model or PESTLE analysis will
be taken in use on the basis of which marketing strategy will be developed. These
methods would help the firm in assessing the strengths, weaknesses, opportunities and
threats for business if it operates in a new segment. Along with that, intensity of
rivalry and bargaining power of customers and suppliers will be known by the firm
(Wu, Kirkole and Huang, 2016). Apart from that, macro environmental factors that
would influence the business would also be clear to McDonalds by keeping in mind of
which the plan will be developed.
 Creating marketing strategy – Then the final marketing strategy will be formulated in
which the time of all roles and responsibilities to marketing department will be
delegated and standards will be communicated that have to be achieved (Purvis,
2016).
 Allocation of resources – For proper execution of the marketing strategy, departments
will be allocated with required resources, that is, manpower, finance and technology
with the help of which, implementation will take place in the desired manner.
 Monitoring and control measures – Once the strategy is executed, its results are
matched with the set standards and if any deviations are found, then corrective actions
will be required to be taken by the marketing department of McDonalds so that new
product can be made a huge success in the target market (Kilkenny, 2010).
10