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MARKETING ESSENTIALS - McDonald's

University: Regent college

  • Unit No: 2
  • Level: Undergraduate/College
  • Pages: 17 / Words 4140
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 308
Organization Selected : McDonald's

INTRODUCTION

Marketing is an activity of creating, promoting, and distributing of goods and services from sellers to customers. It is a set of institutions who involves in exchanging offers that have value for customers, clients and society at large (Dibb and Simkin, 2013). Marketing essential includes demand and supply, marketing mix , customers, supply chain, competition etc. It is important to analyse these essentials for better growth and success. McDonald's is an American fast food company which was founded in 1940 which deals in food and beverage. it is the second largest fast-food organisation in the world. This report covers role of marketing and its interrelation with other business units. It also discussed current and future trends in marketing with an overview of marketing process. Implementation of marketing mix into marketing planning process under two different organisations for achieving business objectives are discussed in this report.

TASK1

P1. Roles and Responsibilities of Marketing Function

Marketing is an area where large number of buyers and sellers are get together to buy or sell goods and services. There are four concept in marketing: production concept which deals with production, selling concept which deals with sales, marketing concept focus on need of target market and societal concept deals with well being of society. McDonald's is public company which deals in food and beverage has to focus on customers demand for increase profit.

Current marketing trends are essential achieve sustainable success for any organisation. McDonald's is also using current trends like video and authentic marketing voice. Now a days, most of companies using social media marketing in which they advertise and sale their products on social sites. Online marketing is also very popular as per current scenario.

As per future trends art and science are the keys to successful content marketing. Customers will start to observe artificial intelligence and its effect on the global market. Brands will build by loyalty with reliable storytelling. McDonald's should also focus on customers demand and adopt digital marketing for retain long term in the market with maximum profitability (Baines, Fill and Page, 2013).

Overview of Marketing Processes

A sequence which identify the need of customers and make strategy regarding the product and services and to beat competition is known as marketing process. There are mainly four steps in marketing process, which are as follows:-

  • Situation Analysis- In this process situation of a market is to be analysed by McDonald's and identify their opportunities to satisfy customer's needs and marketing environment.
  • Marketing Strategy- After analysing the situation, McDonald's should make strategy to cover maximum area and beat competition by launching new products with unique features.
  • Marketing Mix Decision- In this process, McDonald's should focus on 7Ps of marketing like product development, distribution process, pricing decision, promotional techniques etc.
  • Implementation and Control- After completing above steps, McDonald's have to implement plans for action and control the activities which create barriers in success.

Roles and Responsibilities of Marketing Function

In the context of McDonald's there are following roles and responsibilities of marketing manager of McDonald's which are mentioned below:-

  • Selling- Manager of McDonald's have responsibility to decide selling criteria by identifying the customers needs according to geographical area (Baker and Magnini, 2016). Company has to focus on their objectives and increase sales by personal communication with consumers in order to identify their needs and satisfy those desire with provide them quality products and better services.
  • Financing- It is an important function of marketing as well as finance department to prepare a finance budget for conducting marketing activities. It is necessary to obtain finance to bear production cost and other expenses. Manager of McDonald's make a strategy to raise their funds form different sources and minimise the cost of production with gaining more profit.
  • Promotion- There are different promotional techniques in the function of marketing. Organisations have to use those techniques which helps to increase sales and attract more customers (Clow, and James, 2013). It is a responsibility of manager to Communicate information to potential customers through advertising on television, newspapers, social media and other promotional techniques to promote them to buy the McDonald's products and services.
  • Research and Development- Marketing research is an important responsibility for the manager of an organisation. It helps McDonald's to determine opportunities for growth by analysing the need of customers (Desai, 2013). It also helps to analyse competitors strength and weakness through which they can make strategy to protect their firm with existing customers with proper development of their employees.
  • Marketing Information System- In MIS, manager play an important role to collect information of market condition and use them in the improvement of their business activities and decision making process. It helps McDonald's enhance their improve their productivity as well as profitability.
  • Purchasing- It is an essential role of a manager to make planning regarding to purchase raw material and other equipments for production of goods and services. Marketing manager of McDonald's has to determine that material should be purchased with low prices.
  • Distribution- Another function and responsibility of marketing manager is to distribute products to potential customers in different areas. McDonald's provide a service to their customers to order food online and they delivered their product at a particular location decided by customer.

P2. Marketing inter relation with other departments

Marketing departments is an important essential for every organisation because it can grow and expand their products in market and increase profits of any business. McDonald's marketing department adopt effective strategies to attract customers towards their products. Marketing department of McDonald's think from the consumer's point of view because it want to satisfy the need of customers. It is a responsibility of all the departments to give their contribution in growth and success of a firm (Griffitts, 2016). Here the description of inter-relationship of marketing division with other departments are as follows:-

Marketing with operational/ production department-

Operational department doing many activities like product packaging, distribution, warehousing and manufacturing of commodities, and generated services etc. (Kongstvedt, 2012). In this company, need of marketing department to work in corporation with production department to ensure that

  • adequate development and research is planned to fulfil present and future consumers needs.
  • The volume of orders created by marketing can be met inside the time plan or schedule necessary for delivery.
  • The items of foods can be manufactured to the design and quality description laid down by the customers.

Marketing with human resource department -

Human resource management is a function of recruitment, selection, training and development of employees, compensation management etc. and other functional activities include employee motivation, performance management, health and safety and other legal feature of human resources. So, McDonald's marketing department use HR division for recruiting the best marketing assistant and marketing people who has all market knowledge of advertisement and marketing works. And create an competent and ambitious sales team. This company use advertisement on higher level for attract the customers.

Marketing with finance department-

This section manage all the financial function of this company. They make budgets for all activities. They manage the cost and prices of all function like production cost, advertisement cost, sales cost, maintenances and many other cost. Marketing section need to work with the financial division to ensure that- there is an adequate budget to meet the needs for promotion, distribution and research.(Lane, 2015). So, McDonald's can build market stocks and increase sales volume.

Marketing with information technology department:-

In this, technology include information system, computer hardware, programming language, websites, internet and computer software. Internet and websites are also use for providing information to the consumers. So, people can easily interact with the goods or products and more significantly people start to improve long-term relationship with the company. (Nguyen and Simkin, 2012). Information technology support and help the basis of customer relationship management. Intranet supplies up-to-date data to employees and workers of the business and other stakeholders of the company. An extranet provides data directly to the clients, distributors and consumers. Consumers can check price of products and other details.

Marketing with research and development department:-

Research and development division generates new thought, creating and innovation new service and products in McDonald's company. Marketing department need to research department for generating new ideas in products. So, that manufacturer can produce the products in different way then product can compete the other products in marketplace. Research should be driven by concept of marketing (Papasolomou and Melanthiou, 2012). Research and development department should be considered consumers in mind while innovating and creating the products for satisfying the consumers needs and wants. Also research on distribution channel and place in order to deliver products more effectively and efficiently to the consumers.

Value and importance of marketing role:

Marketing is an important component of McDonald' success. In this include many importance factor which are as under:

Marketing helps in exchange, movement and transfer of goods: Goods and services are made easily available to consumers through various mediator like retailers and wholesaler. It is helpful to both customers and producers. It tells about the particular preferences and needs of customer and to the latter about the commodity that producer can offer.

Marketing is helpful in maintaining and rising the standard of living:

Marketing is the delivery and creation of standard of living to the community. It is provided goods and services to the consumers at a reasonable price. From latest marketing technology, they also provide goods to the poorer section at a reasonable price.

Marketing creates employment:

The main marketing functions are financing, selling, buying, warehousing, transport, standardisation and risk bearing etc. These all different functions are performed by a large number of bodies and individuals. Thus, it is provide employment to many individuals.

Marketing as a source of revenue and income:

Marketing gives many opportunities to earn maximum profits in the operation of selling and buying of commodities, possession and place utilities, and by creating time. Marketing is only way in which could generate income or revenue and convey in profit.

Conclusion:

Inter relation of marketing department with other departments are very important because each department's activity has a potential effect on consumers satisfaction. In this concept, all department need to work together to satisfy the consumers expectations and needs.

TASK2

P3. Comparison of two organisations regarding marketing mix to marketing planning process

Marketing mix is a set of action that company uses to promote their product and brand image in the market. It is a combination of 7Ps which are product, price, place, promotion, people, process and physical evidence (Marketing Mix, 2018). Organisation uses these techniques at the time of planning process to achieve business objectives. It can be differ from other organisations. Marketing mix is a set of marketing techniques that McDonald's uses to achieve its marketing objectives.

Difference between application of marketing components of McDonald's and Burger king

There are following differences that two organisations are use different style of marketing mix to marketing planning process to achieve their objectives.

Basis

McDonald's

Burger King

Product

It is one of the most famous fast food restaurant. Its selling products are burger, French-fries, deserts, soft drinks etc. It provides their customers various options in food product for example: hotcakes, egg Mc-muffin, Hash brown etc. Which are beneficial to earn maximum profit and achieve its objectives.

It introduce new products or improving the existing products. Its offers many products like hamburgers, cheeseburgers, Fries, Onion rings, Coffee, Shakes, cookies etc. Burger king uses this technique of marketing mix and focus on their products and services to achieve its objectives.

Price

McDonald's use a broad range of pricing methods to sale their products. Different price options are available to customer as per product size and ingredients. It focus on every types of customers and decrease their product's price low by reducing cost of production. McDonald's uses price bundling strategy. In this strategy, they offer combo in which burger, fries and soft drink are included and charge prices of all three.

Burger king uses competitive pricing technique because there is high competition from McDonald's. It has been closely monitoring and evaluating their pricing policy. There are various customers belong to different income level so price of food products are vary from easily approachable from low to high range.

Place

Place refers to the area of distribution of goods and services. McDonald's make strategy of distribution in different countries (Pappas, 2017). For example: in some countries it offers home delivery option which increase sales and profit through which firm get success.

Burger King has its franchise almost everywhere in the world. For example: Europe, Oceania, Japan, Singapore South Korea etc.

Promotion

There are different promotional techniques used by McDonald's to increase sale and achieve business objectives. For example: it uses television, newspaper, internet and other media to communicate with customers. Its main focus to target children's small toys which are given along with meal and also offer discount coupon on certain products.

It includes various ways of communication techniques with customers. For example: Advertising, print media, news agencies etc. it is useful to aware customers about their products and increase sales which helps to earn more profit and achieve organisation's objectives.

People

There are so many people who work in McDonald's in UK. For example: Most of restaurants are owned by the local businessmen. McDonald's invest very high amount on training and development of employees because human resource are the strength for any company which helps to achieve its objectives.

People refers to the customers, employees, management and every other person who are involved directly or indirectly with burger king (Pike, 2015). Reputation of any organisation have in the hands of customers. For example: support of employees and customers is necessary to achieve success.

Process

It refers to a set of activities which is performed in order to get something. McDonald's perform many activities from manufacturing a product to deliver it to customers. For example: making food is an important activity in the overall process of manufacturing. Which is only source to achieve its objectives.

It is a methods of providing knowledgable services which are helpful to the customers. It can also useful to achieve objectives if services are provided in time.

Physical Evidence

It refers to the elements of the physical environment and customer's experience in McDonald's. For example: the interiors of McDonald's are attractive and the eating place is maintains clean and hygienic. It make a positive impact in customers view and helps to achieve its business objectives (Rancati, Gordini and Capatina, 2016).

Burger King has its website BK.com. It provides information about organisation like video history, product information etc. For example: brochures, pamphlets.

TASK 3

P4. Evaluation of marketing plan

Marketing plan include overview of company, mission and vision, strategic market objectives, SWOT analysis, evaluation etc. These are as follows:

Overview of the company: McDonald's is a fast food restaurant. It was founded by Maurice and Richard McDonald. There are more than 4million employees in McDonald's. It have more than 35,000 restaurants in over 100 countries (Purvis, 2015). This company serves 70 million consumers each day. It offers a uniform menu that involve the big mac, chicken nuggets, chicken sandwiches, quarter pounder with cheese, fries, hamburgers, wraps, salads, soft drinks, desserts and other beverages. Its main competitors are Wendy's and Burger king (An overview of McDonald's, 2018.). This company delivers an experience to its consumer via its trademark “service, values, cleanliness and quality.” This company have owned 19% restaurants and 81% of this company's restaurants are franchised.

Mission & vision: Its main mission is to be its customers' favourite way and place to drink and eat. Its vision is to serve delicious food every day to its consumers and become more and more batter McDonald's.

Objective: They want to “Increase profit in 12 months by 10% through launching new product I.e. soft drink that is health conscious for consumers”.

Segmentation: This new soft drink is based on demographic or age group. Soft drinks are available for different different age group.

Targeting: This new soft drink is health conscious for each age group.

Positioning: Its using value-based positioning strategy mean provide quality product and drinks to the consumers.

SWOT analysis: In SWOT analysis include strength, weakness, opportunities and threats of the company. This describe that how they deal with its competitors and gain advantages.

Strength

Weakness

  • World wide-Brand equity.
  • Good Balance sheet position.
  • Consistency.
  • Overseas market.
  • Weak product development.
  • Slowed income growth and revenue.
  • Declining market stock. Taste and quality of product.
  • Disgruntled franchisees.

Opportunities

Threats

  • International expansion.
  • React to social modification through innovation and provide healthier drinks.
  • Use of customer relationship management(CRM).
  • Globally expansion into emerging markets of India and China.
  • focused on corporate social responsibility, decreasing the affect on the community linkage and environment.
  • Provide Wi-Fi links to attract new customers. Joint undertakings with retailers.
  • Over stored industry.
  • Changing demographics.
  • Variation of foreign exchange rates.
  • More health-conscious customers.
  • Recession in economy impact on retailer sales.
  • Strength of competition.

Marketing Budget:

Marketing budget

 

Particulars

1st year

2nd year

3rd year

4th year

5th year

Initial money

4000

6500

10000

12500

16500

Investment

 

10000

21500

28000

8500

Total

4000

16500

31500

40500

25000

Marketing outlay

         

Promotion

4500

2200

5300

3300

3900

Sales publicity

1800

1600

2500

2900

1200

Direct selling

3200

1500

4500

2500

3650

Total

9500

5300

12300

8700

8750

Monitoring and controlling: After all these process, McDonald's evaluate all activities and performance of employees. In evaluating and controlling include review, track, identify the region in which alteration to the idea are necessary and initiate the similar changes and coordinate the performance and progress. Controlling is a key component of its sustainable company's success (Pike, 2016). For efficiently and effectively management, necessary various control techniques. This company choose bureaucratic method for effective and most workable controlling on affairs of the business. This control is known as a top-to-bottom technique. Managers attempt to impact employees behaviour through incentive and punishment in respect their working action. McDonald's bureaucratic method is easily spotted in each individual outlet of this large series fast food wholesale in any place over the world.

CONCLUSION

As per the above mentioned report, it can be concluded that marketing is very essential key for any business. Marketing is a department which is affect all the other administrative division of the company. It is established an effective relation among different departments who is help in achieving goals and targets of the company. They increase their loyalty towards customers and satisfy the needs of people by providing fresh and health conscious foods and drinks. They made effective marketing plan for launching new product which is health conscious for customers.

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