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McDonald's is one of the famous food brands across the world. McDonald's is very much popular in the food industry (McDonald, 2011). It is mainly known as the ‘burger’ industry. Macdonald started its journey in the year 1948. This food industry belongs to the UK. McDonald's has 30.000 restaurants in more than 100 countries. The main objective of McDonald's to retain their fame and position in the global market. Through those branches, McDonald serves millions of people across the globe. McDonald's serve their customers with various food items these are hamburger, cheeseburger, french-fries, sodas, milkshakes, milk and coffees. McDonald's followed a ‘three-legged stool' business tactics. In these tactics, three legs are reefed as owners, suppliers and company employees (강민정 and 황희중, 2014). Nowadays McDonald's is one of the leading food brands (Drożdż, 2016) capable of pressurizing any famous food brand like KFC, Subway, etc.
P1 Explain the key roles and responsibilities of the marketing function for the chosen organization.
Definition of marketing: Marketing is the activity. Series of foundations, methods of producing, communicating, providing and alternate the customer assistance which valued for the customers, clients, partners, and humanity at enormous.
Nature of marketing:
- The exchange of products or goods material is essential for marketing.
- Marketing is entirely client or customer-centered.
- The market is the process that starts and ends up with the client.
- Marketing is a type of goal. This goal is achieved by earning a maximum profit by satisfying the customer needs.
- Marketing can transform the monitoring business.
- Marketing is scientific as well as art.
- It is a process of understanding and satisfying customers.
Marketing concepts of McDonald's:
Production concept: it is the oldest concept of marketing. In this type of concept, customers choose the kind of product that is extensively available and less expensive in the market. The manager depends on providing more products at a low price, with great product competence.
Product concept: this type of alignment where the product quality, performances, and innovative features delivered to the customer. The manager shows all the focus on creating the best quality of products and the advancement of the product.
Selling concept: this is a type of concept where the main focus is the selling of the product as per the customer's need. The manager aimed to sell the mass number of the product by promoting been the market. Various types of promotional options utilized by the company. The manager used lots of promotional tools to increase the sell.
The impact of external factors on McDonald's:
There are various external factors that show its influence on the market. These factors are competition, government policies, and natural forces, social and cultural demographic factors, technological factors.
The role of marketing:
- Modifying the product, satisfying needs, accelerate the quality of the people's life.
- With the help of less amount of price a rivalry atmosphere created.
- Increasing the necessity of product supply which has the power to sell the product in mass number. Moreover, customers from various geographical regions satisfied with the product.
Marketing as a business function:
Marketing is another function of the business. Through this functioning, business organization earns profit through selling products. In a business organization, there are five types of marketing. These are corporate marketing, strategic marketing, product marketing, and field market.
The corporate market is working with each public relations to investor relations. In this type of marketing lots of programs conducted to create various groups to aware of that product.
Strategic market: A strategy implemented to enhance the growth and utilize all these strategies to build up partner programs.
Product management: Price management is part of this management. It's lengthy tactics for product improvement.
P2 Explain how roles and responsibilities of marketing related to the wider organizational context for the chosen scenario.
Functions of the market in the business:
The market is an important part of the obtained profit in each business. In the case of small businesses, marketing is the only way to get success. The process of marketing consists of researching, packaging, presentation of product and customer services. Good marketing drive helps to achieve good selling market.
To better understand the role and functions of marketing in a business function are explained below-
- Research: it is one of the essential features of the market. Through proper research, the company makes out the customer’s necessity in the current market. Even the current value of the product determined by the analysis method. Researching is the best way to gather knowledge about the rival companies, and their strength, weaknesses.
- Packaging: with research method packaging another function of marketing in the business place. Packaging materials are decided according to the client's demand or desired. The company very much acknowledges the customer's mind. The company tried to deliver all the products you want with proper packaging. It also helps to gain more profit from the market.
- Transportation: transportation of the goods or the product to the client another essential function of the market. For a business organization transportation of goods is an important part. After production products or materials are distributed to customers via traffic. Some tie body started shipping facility for the customer. Risk assessment and quality control: controlling the product quality is essential to function for a company (MacGillivray, 2013). Various type of risks faced by the organization at the time of marketing. To avoid those risks the company tried to maintain the quality. In the case of a bad product, the quality company should face risks such as loss in the market. The reputation of the company damage because of multiple threats and bad quality.
Strategic marketing process:
Strategic marketing is another method that helps to cover the market by providing innovative products or ideas. There are five stages in the strategic marketing-
Identifying mission, analyzing the situation, setting objectives, developing a market strategy, planning and evaluation.
Mission: it is the first step in strategic marketing. It helps to counter the customer for a long time. An organization such as McDonald's took the mission to improve its services more to the client.
Situation Analysis: McDonald's conducts a case analysis (McDonald, 2011). That is known as SWOT analysis. This analysis is to calculate the strength, weakness (Hoffman, 2008), opportunities and threats (Suknev, 2004). This type of strategic marketing helps the manager to know about the resources. Swot contributes to face any challenges by the organization.
Objectives: McDonald's has own objectives to cope with the recent market. The main objective is to retain fame in the global market by delivering the best quality food item to the clients. The expectation of clients plays an important role to maintain the objectives by McDonald's. They never created any type of problem to take the quality of food items or customer services. So these are the objectives meets by the McDonalds.
LO2 Compare ways in which organizations use elements of the marketing mix (7Ps) to achieve overall business objectives
P3 Compare the ways in which the chosen agency applies the marketing planning process to achieve business objectives. How does it differ from other organizations or could do better compared to the institutions
The marketing mix is a favorite marketing technique tool by which any business groups can gain their targets and goals. Though some business organizations are limited in the core of 4Ps that is one of the primary marketing models included with the product, price, place, and promotion; the 7Ps model is adequate to achieve overall business objectives. The 7Ps plan was proposed by E. Jerome McCarthy, and the project was published in his books Basic Marketing. A Managerial Approach in 1960. At first, 4Ps was developed for the business where they sold their goods rather than provide services, and their primary role is to provide customer service that helps in brand development. When the business organizations considered reviewing their aggressive techniques, they need to use the 7Ps marketing mix. The 7Ps marketing mix provides benefit for rechecking and defining the main issues which effect on the commercialization of the company and their services and products.
McDonald's marketing mix connected with different types of approaches that attain business concerns for the various markets all over the world. The marketing mix tells about the tactics and strategies of the particular firm for using to reach their target markets and target consumers. The marketing mix a bunch of actions that the business users to make popular or famous products or brands in the marketplace(Dominici, 2009).
McDonald’s can be identified as a Market-leading company in the fast-food business industry, or the company is better known to the fast-food eaters as the burger industry all over the globe. In 2006, the fast-food industries attained $105 billion value in the fast-food market and 2011; they reached $ 128 billion value that is an increase of 23% from 2006. The most leading fast-food company, McDonald's possesses more than 35000 restaurants all over the world in 105 countries most probably, and they are serving millions of customers in various countries. As they provide very fast and friendly service and they maintain their food quality, cleanliness in their restaurants, the lists of a menu with the supplied values.
The McDonald's company follows an excellent business planning that has been defined as the "three-legged stool" within which those three legs suggest operators or owners of the company, employees of the firm and the suppliers. The company connects with various activities such as they operate, develops, services, franchises the common restaurant systems that make, assemble, package and sell some limited food items that can be prepared quickly with a moderate price range(THE Marketing Mix: a Review, 2014). McDonald’s has discovered training and marketing programs, quality food specifications, supply, and operational systems, all of them are concerned with the standard in the industry all over the world.
Every business firm should develop an impactful marketing technique. The managers use the 7Ps marketing mix for following the orders from authority to evaluate and reevaluate their business activities continuously. Product, price, promotion, place, positioning, packaging and people are the seven Ps in the marketing mix of an organization. These marketing strategies are utilized for confirming that the organization is on the right track and then they are ready to achieve maximum outcomes.
Product: McDonald's sells predominantly cheeseburgers and Hamburgers, and these food items make the portion of the standard recipe of the restaurant worldwide(Research on the institution of China construction employee based on relation theory, 2007). They also vend different types of products like chicken sandwiches and various fried items, soft drinks, French fries, desserts, and breakfasts, etc. They can sell varieties types of products within promotional fixed time periods. The firm tests its new food items on an ongoing basis. As the company tested on the Chicken Nuggets that are now very popular, but the company had to continue test on that particular product in 1983.
People:McDonald's company has many productive working employees who wear a standard uniform within the organization. The company also focuses on providing prompt and friendly service that helps the firm to keep its reputation always. The company should maintain their staffs in different positions as they can work together in an organized manner. The company provides them to keep their workers a great responsibility in the working sectors. They should organize some training processes for the employees for making their better knowledge and talent for the specific industries. There are different types of staff like restaurant management officers, restaurant workers, franchisee teams who maintain the various responsibilities for carrying forward their business efficiently.
Process: the company always tries to keep their manufacturing process and their products visible and transparent to its customers. When the consumers feel the need of watching the making process of the food items they are always allowed in the kitchen to look at the production of the food items(McDonald, 2007). But there is a huge risk if the organization allows all the customers in their production sector, which will be problematic for the company as the public entrance in that place may affect the hygiene of the products. McDonald's always maintained its standard by providing its consumers with high-quality food items. For doing the same, they use innovative ideas, and latest technologies that have been installed in their firm to utilize for controlling their product quality and the company provides their various food items with many facilities that can attract the customers easily.
Price: The company had different types of burgers including two-dollar cheeseburgers, different burgers, etc. that the company served to the customers at a reasonable price. The competitors cannot compete with the McDonald’s company as that is difficult for the competitors in the market. They use value-based pricing of their products, as they serve their customers the best value products, the consumers will not be affected anymore by eating their product. The company has to fix its price rate of the products by the customer's observation of value that is a significant determinant for setting the price rate. Customers always make a fantastic picture of the price rate as per their wish. The presence of the product is not only accepted as the physical items but also possess psychological connotations to the consumers. When customers get their food items in front of them, they feel some mental pleasure as a food lover. There may be some danger in using less price as the consumers can assume that the food quality as not as good as the previous time. It is the most important thought that when the authority decides about the price, they should be aware fully for maintain the integrity and brand(McDonald, 2006). The McDonald’s divides its items into two categories in India; branded core value items and branded affordability products. This different price value has been set up to satisfy the various customers of a different economic condition.
Product: McDonald’s sets a varieties type of menu that their customers want from them. Market research helps to identify what kind of clients demand what kind of product, though the new customers have different types of taste. As they want to face old and new customers, they have designed their food items with new items as well as old ones. The company is well aware of its products that may vary on the choice of different types of customers. In India, the company has a vast product range that is mainly focused on vegetarians, so they introduce their clients with extensive veg food items. The children's customers also play a vital role in the selling of the company.
Promotion: the promotion is the key aspect of the marketing mix in a business strategy as the company needs the promotion of its products in the customers. They employ their products through advertising by television, in cinema, radio, online, posters, etc. They also use the point of selling display, sales promotions, direct mail, merchandising, door drops, loyalty schemes, etc. for making their development(Slater, Hult and Olson, 2010). If the McDonald's publishes more posters on tv or newspapers and advertisements online and televisions, their products will attain the highest portion than the other competitors. They also focus on their children's customers by providing them toys and other things that can easily attract them. Applying these tricks, the company can make its targets for their profitable business.
Place: a place is an important factor for any business strategy. The firm or the restaurant should set up at a favorite place where they can achieve more customer's attraction than the other companies. The traditional place will help them gain better profit than the remote areas.
Physical evidence: McDonald's maintains to keep the interior of the restaurants hygienic and clean. At the same time, they decorated their outlets with attractive furniture and other decorative instruments that draw the attention of the customers quickly.
The Marketing Plan is a noteworthy section of the business arranging of an association to empower items to the client and to extend prevalence. Alongside that, present quality item impact fulfilment level of the clients. Along these lines, in this promoting arrangement, distinctive sorts of showcasing techniques will be talked about as Methods for New Product Development, Pricing Strategy, Product Description, and Distribution Strategy.
Part of Marketing Plan
For making profitable advertising systems, the administration of McDonald's needs to pick positive staff who will expand advancements. In other sense, the administration of McDonald's requires a bona fide showcasing plan to execute distinctive classes of advertising procedures. However, a viable promoting technique joins a couple of points, for instance, item advancement prepare, value estimation process, and market division handle, focusing on a group of onlookers, fabricate process and circulation prepare. However, every segment of the attractive arrangement is examined in the above sections.
Strategies for new product development
The administration of McDonald's needs to research flow advertises open doors for effective showcasing methodologies. Other than that, with the help of statistical surveying procedures, McDonald's can choose their customer's needs and points of view. Besides that, there are diverse sorts of advertising procedures or strategies required in the section of improvement of a new item, for instance, a full and correct delineation of the items which help the customer to see a Berger item precisely (Westwood, 2007). Other than that, in the McDonald business Berger item particularly healthy products n nut enhance has to appeal in the market. Like this, the administration of McDonald's is required to execute diverse advertising techniques to pull in clients towards new burger things. Also, many organizations apply a statistical surveying system that relies on upon new item's request rate in the present market. Alongside that, the administration of McDonald's can execute this showcasing technique to expand benefits. In this way, with the help of the advertising administrator, McDonald can accomplish the support and inclination of their clients.
On account of the Fast food industry which controls and controlled by McDonald's. Alongside that, an enormous measure of clients like their items and in this focused fast food industry, the requests of these items are continually high. Aside from that, the administration of McDonald's has delegated the aide showcasing chief explores the part of a few components of the advertising blend and perceive the request rate of their items for the promoting arrangement. In addition, McDonald's can run any country by drawing in individuals with the assistance of new and scrumptious burger items. Also, the administration of the McDonald ought to examine the present market openings before another advancement procedure.
The vast majority of the client needs great quality and dependable items at low cost. Then again, the administration of McDonald's can draw in practically every client towards their items which have new enrolment in the fast-food business with the assistance of low-value procedure. Alongside that, the notoriety and goodwill of burger both can accomplish the trust of every one of their clients. In addition, the cost of burger’s items has dependably a high-value rate, however, the brand estimation of burger never goes down (Davidson and Simonetto, 2005).
The circulation procedure or conveyance process is a blend of different sorts of strengthening of a salesman who gives the items through advertising merchants of McDonald's. In that capacity, the administration of McDonald's needs to perceive its target market and clients for future improvement. On the inverse side, request and inventory network of an item in stores and departmental shops demonstrates the choice of the customer which must be ensured by McDonald's to fulfill a client. In addition, the salesman has effectively circulated the results of McDonald's.
The advertising director has fundamentally explored the market and accumulates basic data for McDonald’s future open doors. In this showcasing arrangement, the promoting director has examined sorts of portions for new item improvement prepare. In addition, McDonald's can extend its business in a more extensive setting with the assistance of this showcasing arrangement which is made by the promoting chief.
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