This assesment will cover the following topics -
- Explain key role and also responsibilities in marketing functions.
- Elaborate the roles with the responsibilities in McDonalds.
- Provide application and business objectives for competitors.
- Formulate and manage effective marketing plan.
Marketing is valuable of decision-making process of management which assist them in reaching their products and services to the large number of customers. It directly impact the sales figure and revenue of company therefore it is important for marketing department of an organisation to perform its several marketing functions such as conducting research, fixation of price and selection of an effective distribution channels. It facilitates companies to identify the market needs and requirements which make them easy to meet within shorter period of time.
The present assignment report is based on McDonald’s which is an American fast food company engaged in offering wide range of fast food products and beverages including Hamburgers, Chicken nuggets, French fries, soft drinks etc. It was established in the 1940 and now becomes one of the largest fast food chain restaurant in the world. The project discusses the marketing functions, marketing mix of two rivals companies, interrelation of marketing department to others departments and suitable marketing plan of McDonald.
P1 Key roles and responsibilities of the marketing function
Marketing is considered as a valuable activity which enables organisation in achieving strong brand image and capturing large market share by fulfilling the needs and requirements of targeted people with more effective and efficient way. Marketing provides an opportunity to an organisation to communicate their targeted people and maintain better relations with them in order to achieve their loyalty for longer time period. McDonald’s is currently having strong brand image and operated in different nations (Berkowitz, 2016). It is fully supported by its marketing department who bring them valuable information about customers’ actual needs and demands. It enables company to achieve huge sales and revenue. The marketing concept is developed over the period of time which is further understood as under:
Production concept: It is connected with the roles and responsibilities of production team which help company to meet market needs and requirements for long run. For this, it is important for production team to monitor and control the usage of resources in order to make them capable of offering quality products at affordable prices. A the customers are price sensitive due to which high prices of products largely impact on their buying behaviour which in results looses loyal customers.
Product concept: Customers demands high quality products from company in order to maintain their health. Therefore, it must require for McDonald’s to offer quality and heath nutrition food products so that the buying behaviour of targeted people will not be shifted to their substitute products (Bird, 2012).
Selling concept: Under this concept, selection of distribution method are made which assist McDonald’s to reach their food products to maximum number of customer. The customers prefer to visits at such store to buy food products which are located nearby to them therefore it is important for McDonald’s to open their outlets in maximum number of locations where their demands of products are more so as to make easy for users to buy their products easily and increases its sales.
Consumer concept: According to this concept, the needs and requirements of customers are taken on priority due to which the company tried to give maximum possible efforts in maximising their satisfaction level through offering quality products and communicating the on regular basis using various modes such as social media, feedback form etc.
Marketing concept: Under this approach, McDonald’s should be directed towards adoption of marketing tools and techniques which promotes their brand and benefits of their offerings. Any discount offers or new food products can be easily communicated in market through using marketing strategies which h makes direct impact on their brand image and sustainability in market.
Different roles performed by the Marketing department of McDonald’s are as follows:
Customer satisfaction: Customers are the one who decide the growth and success of company due to which it is essential for McDonald’s to put their maximum efforts in maximising satisfaction level of targeted people in order to achieve loyalty for longer period of time. For this, it should required to conduct market research so as to identify the taste and preferences of customers which makes easy for company to provide offerings accordingly.
Monitoring and managing social media: At present, large number of people are using digital platform to acquire knowledge about the new offerings in the market. Therefore, to compete with its rivals such as Burger King, McDonald’s should use such media marketing in order to influence the interest and buying behaviour of customers in favourable of company’s offerings. It also allows company to resolve all queries related with their products to the customers by communicating them by using such tool.
Track Trends and monitor competition: As McDonald’s engaged in fast food sector where large number of rivals are present offering very close substitute products in the market. Therefore, it is important for the marketing manager of McDonald’s to monitor the competitive strategies and operations of other brands so as to defeat them by formulating effective strategies according to the current trends which in results help them in achieving competitive advantage (Caragher, 2016).
Manage marketing budget: Business environment are complex and contingent in nature which can affect the business operations of McDonald’s both in negative and positive way. For this, it is important for marketing manager of company to analyse market dynamics which can affect their sales and demands of products. This will enable to establish an effective budget and accordingly make arrangement of funds which removes the risk of non-availability of funds.
Defining strategic marketing plan: To bring ahead in the competition among the rivals, McDonald’s should make marketing plan in order to guide and direct the management and employees to perform well in order to achieve company’s mission, vision and objectives of company. For this, marketing department is held liable to prepare a document which contains the list of actions that to be undertaken, strengths of company, rivalry competitions, target markets etc. It requires adequate support from others departments as well to accomplish desired goals and objectives (Coombs, 2012).
P2 Explain how roles and responsibilities of marketing relate to the wider organizational context
McDonald’s is largest fast food chain in the world operated at global level with number of food offerings. It gets maximum supports from their different departments in proper functioning which includes Production, Finance, sales etc. These all departments are interrelated with marketing department in regards with their functions so as to achieve common organisation goals and objectives. It can be further understood as under:
Marketing versus production: The needs and requirements of customers can be fulfilled with the help of production department in terms of producing quality products that can easily attract maximum number of customers. It gets supported by marketing department in terms of receiving information about the products which are more in demand in market. For this, marketing division conduct research in order to identify market trends and actual wants of customers which directly communicated to production team to produce same products in order to achieve customer base. Further, any changes in menu of McDonald’s by production division can be communicated to people with the help of marketing division by using promotional tools and techniques. Therefore, these both departments are interrelated with each others related to their functioning (Friis, 2012).
Marketing versus finance: All the departments of McDonald’s are much depend on the finance division in terms of getting financial help in perform their functioning in an effective and efficient manner. Marketing division can promote McDonald’s products in the market only if they have an appropriate market budget which requires support from finance department. Whereas facing shortage of funds by finance division requires support from marketing department in terms of inviting investors to support them financially. Therefore, such departments are also interdependent on each others for their better functioning.
Marketing versus sales: Sales departments are largely depends of the activities performed by the marketing department. As the knowledge of McDonald’s offerings can be acquired by the customers with the help of promoting tools adopted by marketing division. It influences the buying behaviour of targeted people which makes positive impact on the sales as well. Marketing division also assist McDonald’s to locate new store in particular nation due to having high demand of their products due to which the sales manager can predict the future sales which helps evaluating the situation of non-availability (Gamble and et. al., 2011).
P3 Application of marketing mix to achieve business objectives along with comparison with competitor
Marketing Mix: It is the combination of 7P’s which includes Product, Price, Place, promotion etc. whose proper evaluation can help marketing team for better functioning. It is mostly used by large organisation such as McDonald’s to purse marketing objectives and targets. The main objective behind using marketing tool is to aware people about their current and new offerings so that maximum supports can be gained by customers in terms of raising demands of products. McDonald’s is one of the largest fast food retail chain restaurant which is engaged in offering wide range of products such as Hamburgers, French fries, chicken nuggets etc. by which they can easily capture large market share. To bring out the effectiveness of its functions related with 7P’s it is important for McDonald’s to compare its marketing mix with its rivals engaged in similar sector (Marketing Mix, 2017). Here are the marketing mix of McDonald’s and its rival Burger King which makes easy for marketing manager to make relent changes in their existing strategies to bring company ahead in the competition:
Marketing Mix of McDonald's and Burger King
Product: McDonald's is engaged in different item sections, for example, veggie lover, Non-vegan, Beverages and Frozen desserts and so on. The primary focus given by the administration is to build up the menu according to needs of clients. Research about market helps in assurance of real patterns which are hold on in market. It is surveyed that client's prerequisites are changed persistently over the timeframe. To address out the issues of various segments of clients, it is required to present new items and eliminated old ones. Administration of McDonald's realizes that prevalence of their things in menu will fluctuate over the time. This will impact their capacity to produce benefits at various focuses in their cycle.
Product: The offerings of Burger king covers distinctive kind of items for various age gathering of individuals. The things which are offered by this restaurant incorporate burgers, drinks, and milkshakes and so on. Burger King gives item in both veg and non veg classifications. They additionally begin offering plate of mixed greens and veggies for health conscious customers.
Price: Pricing will enable the association to like McDonald's to charge precise value which fulfils the diverse needs of clients hold on in different segments. For ex., in the event that low cost was charged for their items, clients having the observation that quality traded off. It is vital for McDonald's while choosing the costs completely mindful about estimation of their image in market. Differentiation pricing approach is adopted by McDonald's for their distinctive kind of offerings to attract middle section of society.
Price: The strategy which is trailed by Burger King for pricing their offerings is market oriented. To viably rival McDonald's, they begin providing quality with reasonable valuing.
Promotion: This perspective covers all sort of technique which is utilized by the association to communicate with clients. The distinctive sort of limited time techniques incorporates promoting, TV, Radio, Online, notice locales and so forth. Some other are known as sales promotion, marketing, regular postal mail and loyalty schemes. These strategies are utilized by McDonald's to accomplish compelling outcomes. For ex., TV ads push the association to aware clients about fast food items and press promotions help in fortune of more detail. At present, principle focus is given on targeting kinds. In such manner, small toys are offers along with a meal.
Promotion: Basically two different ways are utilized by Burge King for promoting their items incorporates social media and commercials through print media. They likewise take the help of various sponsors to spread out their scope towards clients. Another strategy which is embraced by them incorporates discounting offers while purchasing their items through online to attract customers.
Place: This will covers the perspective about dispersion focuses for items. In current circumstance, outlets of McDonald's are spread out in primary urban communities which are effortlessly open by end clients. Drive in and Drive out choices is likewise given by McDonald's to accommodation of purchasers which empowers them to draw in huge number (Cooper and et. al., 2014).
Place: The supply chain network system of Burger King is solid at worldwide stages. Charge of selecting providers has assumed control by quality control division of Burger King to guarantee best is given to their clients. Nearness of Burger King is higher in western areas. Alongside physical stores they create mobile application to enhance reach towards new clients.
People: The manner by which McDonald's treat their clients and workers in one of a kind. Appropriate clothing regulation is trailed by workers. More focus providing customer friendly environment at their outlets. Need is given on quick conveyance of fast food products and fulfilment of requirements of clients.
People: Management of Burger King gives focus on both clients and employees. They are extremely contributed towards their worker which appears from the outcome that consumer loyalty proportion of burger King is most noteworthy in contrast with different outlets.
Process: Cooking strategies and procedures utilized by McDonald's are enhanced over the timeframe. New types of equipments are obtained by association to proceed with the producing of food items along with the packaging and supplying to the customers. Immense sum is put resources into research exercises to accomplish robotized process which brings quality of working.
Process: The procedure which is utilized by Burger King to perform their functions is structured by specialists. This will causes the association to keep up same taste and work culture in all outlets agent in excess of 71 nations.
Physical evidence: McDonald's having great physical evidence which help in impacting the mind of customer. The fundamental aspect which delineates physical evidence perspective of McDonald's incorporates speed of service, cleanliness and so on. It is family restaurant, so all the arrangement are made on the basis of requirements and demands of targeted segment which is children.
Physical evidence: Burger King has nearness nearly in the vast majority of the created countries. In 71 unique nations their outlet is set up in 15000 areas. Presently, they begin growing their activities in some creating nations additionally like India. This will be considered as gigantic open door for Burger King as trend of fast food continuously expanding in creating countries like India.
P4 Formulation of basic marketing plan for an organisation
Marketing plan is kind of blueprint which directs the management and employees to perform according to the company’s goals and objectives mentioned under the plan. It drives company to achieve its long term goals within limited time period with getting best efforts from their workforce.
Introduction of company: McDonald’s is one of large fast food retail chain restaurant having more than 3000 outlets in over 100 countries. It offers wide range of food items which includes hamburgers, French fries, chicken products, beverages etc. At present, the company has generated approx. 24.66 billion annually. They now decide to launch new product known as oil free French fries in terms of attracting health conscious people (Illing and Anders, 2016).
Vision: To become a progressive and modern burger firm which offers contemporary customer experience”
Mission: To become the favourite place of people where they can eat and drink.
Marketing objective: McDonald’s marketing objective is:
- To influence buying pattern of health conscious people in order to increase revenue by 15%.
- To enhance the sales of company’s offerings by 20% in next 6 months.
STP: Concept of segmentation, targeting and positioning is more beneficial for company in order to identify the needs and preferences of population divided into different segments. It makes easy for management of McDonald’s to make suitable strategies for all segments according to their identified needs and demands.
Segmentation: Under this, population is divided into different segments on the basis of having common needs and preferences. McDonald’s is carrying out segmentation based on different variables which includes demographics, behavioural and psychographic (Jones, 2011).
Targeting: Under this, company targeting the demands of particular groups of individuals. V is targeting kids as well as health conscious people by providing healthy nutrition products such as oil free French fries.
Positioning: McDonald’s attained strong position in market as a fast food company which offers better quality products with wide range.
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SWOT Analysis of McDonald’s
Monitoring and controlling: This part of marketing plan includes the identification of effectiveness of activities performed so as to analyse the outcomes. The main benefits of controlling is to help management in reducing cost of business activities as well as determining the gap between standard and actual performance. It enables to bring out maximum outcomes to company for longer run (Nguyen and Simkin, 2012).
It has been concluded from the above project report that marketing is an important element of every organisation as it provides them an opportunity to maximise their reach to various markets. For this, marketing manager need to perform its roles and responsibilities more effectively which includes preparation of marketing plan, analysing and comparing marketing mix of company with their rivals so that effective strategies can be made for the growth and success of an organisation.
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