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Roles and Responsibilities in Marketing Functions – McDonald

University: University of Birmingham

  • Unit No: 2
  • Level: Post Graduate/University
  • Pages: 18 / Words 4391
  • Paper Type: Assignment
  • Course Code: MARK1800
  • Downloads: 228
Question :

This assessment will cover following questions:

  • Explain the roles and responsibilities in the marketing functions.
  • Compare ways in which McDonald uses elements of marketing mix to achieve business objectives.
  • McDonald is a fast food chain. Generate basic marketing plan for the organisation.
Answer :
Organization Selected : McDonald

INTRODUCTION

In today’s scenario, marketing is a basic requirement of an organisation which drives them to maintain healthy relations with the targeted people through recognising their needs and requirements by conducting market research. It assists organisation to make suitable actions and effective marketing plan to influence buying behaviour of people in favour of company’s offerings. It performs various functions which include promotion, market research, and fixation of price and selection of suitable distribution channels. The present assignment report is based on McDonald which is one of the largest company of United States. It was established in the year 1940 and has engaged in offering wide varieties of food items such as Hamburgers, Chicken nuggets, French fries etc. The project includes marketing concept along with the roles and responsibilities of marketing manager. The project also discusses the interrelation of marketing department with other departments, marketing mix of two organisations operating in similar sector and marketing plan.

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TASK 1

1. Concept of marketing, including current and future trends

Marketing is an activity which starts with identification of needs and requirements and ends with the deliver of products to the final customers. Through marketing function, an organisation enables to reach targeted people and meet their requirements in the long run. McDonald is well established brand which operates its functions in many countries such as UK, India etc. It faces huge competitions in market due to engaging in food sector (Ahrens, 2011). For this, marketing manager develops marketing concept over the period of time so as to achieve huge stability in market for longer period of time.
marketing concepts

Figure 1:Marketing Concepts

(Source: Bhasin. H, 2018)

Production concept: It is the concept which is connected with the operations of an organisation. Such concept directs operation department to utilise limited resources and control wastage so as to make positive impact on the overall business cost and profitability. Nowadays customers are more prices sensitive due to which any increment changes in price of products may shift the customers to their rivals.

Product concept: Customers easily attracts towards quality according to the market survey due to which an organisation must required to offer quality products which indirectly makes huge positive impact on their existing customer base. It help in competing with their rivals through offering better quality from their at an affordable price.

Selling concept: It is another effective concept which makes either positive or negative impact on the revenue of company. The management of McDonald should select best distribution method to supply its quality products to the customers within limited period of time. It helps them in achieving huge market share and profitability.

Consumer concept: Under this concept, marketing is giving customers as main priority. For this, marketing manager put maximum efforts in maximising the satisfaction level of customers through offering them quality products and after that collect feedbacks on the same which creates better relation with them for longer period of time (Bird, 2012).

Marketing concept: This is another marketing concept under which marketing strategies has been implemented to increase brand image of company in market. Marketing strategies includes several activities such as the adoption of marketing tools such as TV advertisement, social media, market research, etc. It mainly focuses on conveying information about company’s offerings along with their benefits to the targeted people.

2. Marketing process

A firm adopted marketing process in order to analyse the impact of influencing factors exist in business environment so that the strengths and weaknesses can be identified and developed through making a suitable strategies and plans. Marketing process consists of situational analysis in which McDonald may adopt porter five forces model or can conduct PESTLE Analysis to analyse the external environment. After that, marketing strategy has been formulated with the help of STP. In addition with this, marketing mix is developed by the management through utilising promotional activities, advertising, prices etc. At last implementation and monitoring is done in order to identify whether all the actions has been executed properly and if not then what are the deviations so that corrective measures can be taken.

3. Role and responsibilities of a marketing manager in McDonald

Different roles performed by the Marketing department of McDonald are mentioned as under:

Customer satisfaction: This is the prime motive of marketing department to achieve as all the marketing plans and activities are executed to achieve the same with a hope of getting maximum advantages to company in return. For this, marketing manager mainly tried to recognise their needs and preferences and fulfil them accordingly with the help of other departments. Through market research, the demands of McDonald is identified which directs them to deliver the same within limited period of time. It makes positive impact on the sales of company.

Monitoring and managing social media: At present times, every organisation invests lots of money in adoption of digital technology so as to reach its targeted people and identify their needs and requirements. In order to compete with the rivals such as Burger King, McDonald need to use online platforms to market their products such as social media, mobile technology etc. It provides an opportunity to company to communicate with the targeted people and collecting feedbacks related to their offerings so that needed changes can be implemented within shorter period of time (Cabrera and Williams, 2014).

Track Trends and monitor competition: There are huge numbers of rivals who provides substitute products of McDonald offerings which may affect their sales and revenue as well. For this, marketing manager need t monitor the strategies and operation of other brands so as to achieve competitive advantage.

Manage marketing budget: Business environment are complex in nature which can be changes on frequent basis due to having various influencing factors. Marketing department should analyse the market situations through preparing an effective budget for market survey. It requires huge amount of funds due to which the marketing manager is held liable to raise funds so as to reduce the risk of influencing factors in more effective manner.

Defining strategic marketing plan: To achieve growth and success in market among their rivals, it is necessary for the marketing manager to prepare an effective marketing strategies and plan which contains all the details of company including mission, vision, objectives, marketing mix, SWOT analysis etc. It gives proper guidance to the employees to perform in right direction so that maximum efforts can be gained by company in accomplishing their desired goals and objectives (Campbell and Martin, 2015).

4. Marketing influences and interrelates with other functional departments

McDonald’s is a well-established organisation operated at global level which deals in providing wide range of food items and beverages. It gets adequate support from various departments in serving millions of people across worldwide. To perform various functions, marketing department took help from other departments which are briefly explained as under:

Marketing versus production: Marketing division is held responsible to identify market needs and requirements which can be possible through conducting market survey or research. The information collected from the market research conveys to the production department so as to give them an appropriate direction to produce food products which are nowadays more in demand. Therefore, both are interrelated with each other for performing their allotted functions which in results support organisation in achieving its pre-determine goals and objectives within limited time period.

Marketing versus finance: To conduct market research and adoption of an effective marketing tools, marketing division required adequate amount of funds on the basis of which marketing budget has been formed. For this, marketing division approaches to finance department for supporting them financial help with a promise of providing maximum outcome in return. Therefore, both departments are interrelating with each other and give mutual support to achievement of organisational goals and objectives ((Cleverley, 2017).

Marketing versus sales: It is clearly observed that sales of company mainly depend on the marketing activities performed by marketing division. As marketing department tried to influence buying behaviour of targeted customers in favour of company’s offerings through adopting various promotional tools such as TV Advertisement, Print media, Hiring celebrities etc. which can bring huge impact on the overall sales of company in positive way. Therefore, both are very much interrelated with each other performing altogether to achieve huge profitability of company.

5. Value and importance of the marketing role

Marketing support the organisations to achieve huge market share and influence their buying behaviour to by company's products. Importance of market is McDonald is defined as under:

Create the demand of product: Marketing assist targeted people to acquire knowledge about the developed products offered by company into market which influences their buying behaviour towards the products. Thus, it creates the demand and revenue of company.

To increase the goodwill of the company: Marketing promotes the products and services of company into market using various marketing tools and techniques such as TV advertisement, social media marketing etc. which increases the goodwill of company.

6. Significance of having effective interrelationships between different departments

Every organisation requires abundant support from their various departments if they contribute together to achieve it. Each department perform different functions instead of that required support from other departments for better functioning. For example, marketing or production department requires support from finance department in terms of getting adequate amount of funds so as that execution of activities will be done more effectively. This will maintain healthy relationship among various departments which brings long term advantages to company.

7. Comparison of two companies in the same sector applies marketing mix to achieve business objectives

Marketing Mix: It is considered as basic model consisting 7 P’s of marketing which includes product, price, place, promotion, process, people and physical evidence. It is used by most of the companies with an aim of achieving marketing objectives and targets. The basic purpose of adopting marketing mix is to aware the people about the products and services of an organisation so that they can influence towards their offerings which in results generates huge sales and revenue (Daniel, 2011). McDonald’s is multinational food company having its operations across worldwide. Due to this, the company has conducted marketing mix which assists them in capturing large market share and brings them ahead in the competition among their rivals. Here are the marketing mix of McDonald’s and Burger King in order to understand their marketing strategies.

McDonald's

Burger king

  • Product- It is related with offering by an organisation. McDonald's offers various fast food products with different segments such as vegetarian, Non vegetarian, beverages and Frozen deserts etc. management of McDonald's gave emphasis on the menu card which is modified as per requirements of customers. Their research team helps in determination of actual market trends which assists in getting customer's requirements. Customer's needs and demands are changes continuously over the period of time. To meet out the needs of the different segment of customers. It is essentially required to innovate new products with replacing old ones. Management of McDonald's understands that popularity of their products in menu will change over the time due to this, their ability will get impact to generate profits at different time
  • Product- The Burger king covers different type of products for different ages of people. The items which are offered by this restaurant includes burgers, beverages, milkshakes etc. Burger king provides product in both veg and non veg category. They also started providing salad and veggies for diet conscious customers.

 

 

 

 

 

  • Price- It is related with amount which is charged on the offering of a product by the organisation. McDonald's charge accurate price which satisfy the different needs of customers persists in various segments. For e.g. if low price will charged for their offering then customer will create perception for quality compromised. It is essential for McDonald's to analyse the value of their brand in market it will assists them in deciding the price of their products. For this, Differentiation pricing policy is adopted by McDonald's for their different type of offerings to tap middle section of society
  • Price – the strategy which is followed by Burger king for pricing of their offering is market oriented. For giving tough competition to McDonald's they have started providing quality products with affordable price to the customers.

 

 

 

 

  • Promotion- this aspects covers all type of methods which are used by the organisation to meet with requirements of customers. The different type of promotional methods includes advertisement, T.V, radio, magazines etc. Some other methods are used such as direct mail and loyalty schemes. These methods are used by McDonald's to get profitable results. For e.g. T.V advertisement helps the organisation with giving knowledge to the customers about food items and press advertisement will help in providing details of products. In present scenario, they gave focus on children due to this, they provided small toys to them along with meal.
  • Promotion – Burger king uses two methods of marketing such as social media and advertisement through print media. They also takes support of different sponsors which assists them in spreading their product at the reach of their customers. Furthermore, another promotional techniques are used by them which is providing discount to online orders due to this they increased the number of customers

 

 

  • Place- It is related with location where customers get the products of organisation. In present scenario McDonald's outlets are spread out in main cities which are easily find out by end customers. Drive in and Drive out options are also provided by McDonald's which increases their number of customers.
  • Place- Burger king's supply chain network is very strong. Charge of appointing suppliers has taken over by quality control department of Burger King to ensure best is provided to their customers. Their market presence is higher in western regions along with physical stores they develop their own mobile application for attracting new customers.
  • People- The way in which McDonald's treat their customers and employees in unique. Proper dress code is followed by employees. More emphasis is provided on attainment of customer friendly behaviour. Priority is given on fast delivery of food items and satisfaction of needs of customers.
  • People – Management of Burger king provides emphasis on both customer's and employees. They are very keen towards their employee which shows from the result that customer satisfaction ratio of burger king is highest in comparison to other outlets.
  • Process- It is related with procedure which defines the method of delivering the product by the organisation. McDonald's modified their cooking methods over the period of time. New technologies are adopted by the organisation to continue the working of food processing along with packaging and distribution of food items. A big amount is invested in research activities in order to improves quality of working.
  • Process: The process which is used by Burger king to operate their functions is designed internationally by experts. This will helps the organisation to maintain same taste and work culture in all outlets operative in more than 71 countries.

 

 

  • Physical evidence: McDonald's having good physical evidence which aid in influencing the mind of consumer. The basic aspects which depicts physical evidence perspective of McDonald's includes speed of service, cleanliness, hygiene etc. It is family restaurant, so arrangements are made according to their requirements. As their targeted segment is children's, they provide happy meal toys to attract them
  • Physical evidence: Burger king has presence almost in most of the developed nations. In 71 different countries their outlet is established in 15000 locations. Now, they start expanding their operations in some developing countries also like India. This will be considered as huge opportunity for Burger King as trend of fast food continuously increasing in developing nations like India.

8. Produce and evaluate a basic marketing plan

Marketing plan is a valuable decision of marketing department which help organisation in achieving desired goals and objectives within pre-determines time period. Marketing plan is a documentation which contains all the details which required to be achieved by company such as mission, vision, objectives, SWOT analysis etc.

Marketing plan of McDonald’s

Introduction of company: McDonald is well-known fast food company which deals in providing number of food items such as French fries, hamburgers, chicken products, soft drinks etc. It has annually generated approx. 24.622 billion pound and has owned more than 3000 food outlets located in more than 100 countries. At present, McDonald’s has decided to launch an oil free fries for health conscious people (Dudu, and Agwu, 2014).

Vision: “To become a progressive and modern burger organisation to provide maximum customer experience”

Mission: “To become a favourite place of individuals where they can eat and drink”.

Marketing objective of McDonald’s:

SMART Objectives has been followed as tactics by McDonald in order to achieve its objectives:

  • Specific:McDonald’s has objective to influence buying behaviour of heath conscious customers in order to enhance profits by 10% and expand sales of products by 20% in future period of time.
  • Measurable:Changes in sales of first month can help in measuring future outcomes.
  • Achievable:Such objectives will be achieving with the greatest efforts of employees.
  • Relevancy:Achievement of objectives directly makes positive impact on the sales and brand image of McDonald’s.
  • Time Bound:McDonald’s has allotted 6 months as time period to achieve such marketing objective.

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STP: It is the concept of Segmentation, targeting and positioning which are determine by company to identify the targeted market and on the basis of which making an effective strategies.

Segmentation: Under this, population is divided by McDonald’s on the basis of three segmentation which includes demographic, behavioural and psychographic.

Targeting: Under this, company targeted customers who are more preferred to buy company’s offerings. McDonald’s has targeting teenagers due to receiving more demand of its products.

Positioning: McDonald’s has established a strong brand position in market through offering quality product at effective prices (Eslinger, 2014).

SWOT Analysis of McDonald’s

Strengths

  • Operations at global level
  • Attained Strong brand image and reputation
  • McDonald’s successive approaches
  • Specialised training to managers

Weakness

  • Declining market share.
  • Slow income growth and revenue.
  • Unhealthy food image
  • High employee turnover

Opportunities

  • Expansion at international level.
  • Joint ventures with retailers
  • Growth of fast food sector.
  • Strengthen its value proposition by encourage individuals to visit.

Threats

  • Changing demographics
  • Public health crisis.
  • High rivalry
  • Fluctuation takes place in exchange rates.

Marketing strategy

In order to achieve desired aims and objectives with pre-determined time period, it is important for McDonald to develop marketing activities. In the context with McDonald, relationship marketing is better option which aids in displaying a better bond of firm.

Marketing Budget:

Marketing budget

 

Particulars

1st year

2nd year

3rd year

4th year

5th year

Initial money

8000

11000

13000

11000

11000

Investment

4000

19000

26000

36000

19000

Total

12000

30000

39000

47000

30000

Marketing outlay

         

Promotion

13000

5000

10000

11000

5000

sales publicity

5000

5000

5000

5000

5000

Direct selling

5000

16000

6000

5000

5000

Total

23000

26000

21000

21000

15000

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Monitoring and control:

This aspect indicated the different measures which must be applied by the marketing manage in order to receive expected outcomes after implementing of marketing plans. Monitoring the activities of employees ensures company in receiving maximum advantages in near future. After which controlling over the activities should be done which assist employees in minimising the wastage of resources as well as identifying and removing the gap between standard and actual performance and enhance effectiveness of business activities (5 Marketing Essentials for Your Business to Appeal to Millennials, 2018).

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CONCLUSION

It has been concluded from the above project report that marketing is an essential aspect of an organisation which brings lots of advantages to company in form of increasing brand image, sales, customer base etc. It performs important functions with the support of other departments for the achievement of organisational goals and objectives within pre-determined time period. It also required for multinational organisations such as McDonald’s to prepare an effective market plan so as to achieve success in launching of new product.

REFERENCES

  • Ahrens, C. D., 2011. Essentials of meteorology: an invitation to the atmosphere. Cengage Learning.
  • Bird, A., 2012. The LinkedIn Essentials: Leveraging LinkedIn to Grow Your Business. Fair Trade Digital Exchange, Incorporated.
  • Cabrera, S. A. and Williams, C. L., 2014. Consuming for the social good: marketing, consumer citizenship, and the possibilities of ethical consumption. Critical Sociology. 40(3). pp.349-367.
  • Campbell, R. and Martin, C., 2015. Media essentials: A brief introduction. Macmillan Higher Education.
  •  Cleverley, W. O., 2017. Essentials of health care finance. Jones & Bartlett Learning.
  • Daniel, J., 2011. Sampling essentials: Practical guidelines for making sampling choices. Sage.
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