In ever dynamic nature of environment, it is essential for every business association to implement effective marketing strategies and policies so as to gain high competitive edge. Thus, marketing is a vital concept for every business; its a key process of promoting and selling products of firm to its target audiences. Profits are the bottom line for businesses and it can be generated only by successful sales. Without an effective marketing firms may fail to exist, hence they are required to have amazing or unique products which creates value for them (Armstrong and et. al., 2015). The present coursework is based upon McDonald's is multinational fast food restaurant by having more than 35000 outlets across 100 countries. The firm has occupied more than 4 million people and it serves 70 million customers everyday. McDonald's has a largest share in fast food restaurant industry of 17%; the organisation uses effective marketing tactics which supports it to gain high competitive edge. Apart from this, the report will describe roles and responsibilities of marketing functions in contrasts with other departments. There will be a discussion on marketing mix of two different corporate entities who deals in same sector. A basic marketing plan is going to be developed to attain firm's goals and objectives in the best possible manner.
P1 Key roles and responsibilities of marketing functions
Marketing is an indispensable business process which inform, attain and convince people that firm's products and services are value to them. It is necessary to use effective marketing tactics in order to promote business, offerings or brands. Without this, management cannot make higher sales. Marketing helps in increasing sales because through this people get know about existence of the firm. In addition to this, marketing is a key management process which enables manufactures to interpret customers' needs wants then exceed them so as to satisfy their needs and wants. In this ongoing activity, customers are the centre of attraction who affects all aspects of businesses (Askeland and Wright, 2013). By considering McDonald's, the firm has acquired various marketing strategies for attracting customers even under credit crunch situation. In order to improve its marketing strategy, the firm starts to provide home delivery services to its customers; which motive is to continue the competitiveness of fast food giant.
This graph shows the amount that McDonald's Corp. spent on advertising worldwide from 2014 to 2017. Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and accounted for 532.9 million U.S. dollars in 2017. Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses included in selling, general & administrative expenses were 100.2 million U.S. dollars in 2017.
Nature of marketing
Increases Awareness – Marketing increases awareness among people, as it builds potentials customer who know all information about the company, i.e. products and offerings as well. Most of the time people see advertisements and get recommendations but always do not buy that products straight away.
It sustains – Marketing is meant to sustain firm's market presence for long term period – not remedy lack of engagement. In simple words, marketing refers something which a business should to create and manage so as to manage healthy and positive relationship with customers (Desai, 2013). Along with this, marketing is significant cause it allows McDonald's to maintain ever present relationship with its target audiences; its a ongoing plan of action which supports business advancement.
Customer oriented – Marketing is a customer centric approach as its aim is to drawn more and more people. Here, business organisations formulate all of their marketing activities by considering target audiences and satisfying their desires and expectations in the best possible manner.