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Impact of Marketing on Business Performance

University: University of London

  • Unit No: 3
  • Level: Undergraduate/College
  • Pages: 12 / Words 3054
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 156
Organization Selected : MacDonald and KFC

INTRODUCTION

Marketing is defined as the strategic approach to promoting the products and services of an organization in a way that organizational profits can be maximized. Marketing concepts aim at regulating factors that can affect the purchasing behaviour of consumers. Marketing plays a significant role in determining the success of any business. Thus, it is very essential for organizations to develop highly efficient marketing strategies.

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The report will discuss the impact of marketing on business performance and its interrelationship with other functional department of organizations. It will describe the roles and responsibilities of marketing functionality within McDonald which is the leading restaurant chain in the world. The document will also analyze the seven elements of the marketing mix which have a great impact on business functions. It will provide a comparison of McDonald's and KFC's on the basis of marketing mix elements. The report will produce a marketing plan for achieving the marketing objectives for the given case study.

LO 1

P1 Roles and responsibilities of the marketing function within McDonald

Marketing can be considered as the key element for successful achievement of long-term business goals. The key responsibilities of marketing are described as follows:

Hospitality organization: McDonald

Organization overview: McDonald's is ranked as top in fast food restaurants (Chandiok and Sharma, 2017). The company operates globally and serves a variety of food products in its restaurants which are located in several countries. The head quarter of the organization is in the United States.

Roles and responsibilities

Execution in McDonald

Product development

The different kind of dishes or products are prepared in McDonald after appropriate research and the interest of consumers. For example as organisation operates in different countries the product preferences are different for each customers. The marketing team analyse the choices of customers and then promote the particular product for further development.

Promotion and advertising

This is the key responsibility of marketing department of McDonald (Kotoua and Ilkan, 2017). To promote the services, organisation use various methods such as social media publicity, advertisements and collaboration with other leading brands in foreign countries to establish its roots.

Customer service

The marketing objectives and policies are framed by keeping in mind the interest and preferences of consumers. McDonald keeps the prices and products in its menu as per the consumer. To provide quality services the human resources of McDonald are well trained so that they can effectively communicate with customers and can provide them required solutions. For enhancing the customer relation company also use consumer loyalty rewards and give priority to feedbacks so that McDonald can become first preference of its target audience.

public relations

It is important for marketing team to develop polices which helps organisation to build long term public relations. These relations are important for the company to enhance its market share and to raise the brand value of organisation. McDonald can achieve this objective by participating in charity or cultural events and by contributing in corporate social responsibilities.

Analysis of marketing responsibilities in relation with marketing environment

Role

Responsibilities

Interrelation between roles, responsibilities and marketing environment

Business promotion

The marketing manager and associates are responsible for creating innovative promotional strategies. McDonald experience tough competition from organisations like KFC, burger king and many others (Dileep, and Mathew, 2017). Thus, advertisements and brand management of company must be powerful enough to gain the attention of consumers otherwise the company will not be able to sustain its position among its competitors.

If promotional team of McDonald is not concerned towards their responsibilities then McDonald may not achieve its sales target and thus growth of company will directly affect. The strategies for business promotion are highly affected by technology, social, legal and competitive factors.

Risk analysis

With regularly advance techniques the functioning strategies of McDonald also change continuously. Marketing team analyses the risk associated with the strategies. For example if company introduces any new product or food item than marketing team must analyse in prior that will it give benefit or new techniques will be easy to manage or not.

The risk analysis of marketing team of McDonald is incomplete without macro environment factors such as technical, economical and legal factors. The political factors can also affect the extent of risk and damages. However micro factors also affect this role but its extent is lower than macro factors.

Maintaining customer relations

Customer relations are key to sustain the long term growth. Marketing managers helps to retain the customers by delivering them high quality services in every aspects such as food quality, comfort, payment and order management system as well as feedback monitoring.

The customers relations are largely affected by micro factors. For example if there is conflict between suppliers or competitors provide better products at low cost then it will become challenging or marketing functional team of McDonald to sustain the consumers (Hinson, Abdul-Hamid and Osabutey, 2017).

P2 Relation of marketing role to wider organisational context

The organisational hierarchy of McDonald has been shown below. The organisation has its various stores in different regions. At broad level the organisation is distributed according to region wise. For example Asia, Europe, Africa and America each region have its own segment of the stores of McDonald. The corporate section of each of the McDonald unit consist of separate departments of sales, market research, human resources and sales analysis (Neuninger, 2017). The market research team evaluate the latest marketing trends so that engineering team can formulate the concepts, methods and procedures for delivering services. For developing effective marketing strategies McDonald aims that only skilled and talented human resources are employed.

Significance and impact of marketing functions on other functional departments

Marketing functions also affects the working and policies of other functional departments of the company.

Marketing and range of products served in menu:

The promotional techniques and other elements of marketing greatly affect the product range of McDonald. For example when marketing team analyses that any particular product is prime choice of consumers then to gain more benefits from it the company can launch specific discounts on it or can even present that product as its signature service (Veríssimo and Loureiro, , 2018). It will increase the profits and sales margin. The quality, price of products are also dependent on market research by marketing team. Like if French fries of McDonald are highly appreciated in one country then it is not necessary that the same response will be observed in other countries as well. In the absence of this relationship it will not be possible for the company to meet its desired sales targets or to attract new customers.

Marketing and information technology department:

Though marketing division of McDonald is not responsible for implementing technology or concepts of information technology. However, the functional team has to follow the latest trends of technology because it directly affects their functions. The interrelation between these functional units will ensure that McDonald follows the latest trend. If company will not follow technical advancements like digital payment or online booking then most of the consumers will think organisation as outdated. In such condition it will be challenging for the company to retain audience for long term. Similarly, with advent of social media newspaper advertising has been limited. Thus, McDonald has to promote its services on digital platforms otherwise it will not be able to gain profits from the new opportunities.

Key elements of marketing functions and their relation with other functional units of organisation

The marketing functions consist of four essential key elements. These elements include research, strategy, planning and tactics. Market research analyses the scope of product development and how company can meet marketing goals. To deal with the competitors and to enhance consumer loyalty discount offers or short term plans are made by McDonald. These plans are known as the tactics. Marketing functions have significant relation with other functional units.

Marketing and human resources: Marketing team can achieve its goals only if highly skilled employees are recruited by HR department (Alnawas and Hemsley-Brown, 2018). IF there will be no interrelation between both of these units then new recruited human resources will not be able to understand the marketing requirements of organisation and hence McDonald may fail to achieve its goals. Similarly, HR department must also have prior knowledge of the skills required for a marketing team member. An inappropriate recruitment will cause wastage of time as well as resources.

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Marketing and finance unit: The product development, price and promotional expenses are the fundamental parameters of marketing functioning. These parameters must be in alignment with finance department of McDonald. If company will not have coordination between finance and marketing team then there are possibilities that marketing plan and research does not fit well in budget consideration. Thus, it will be suitable that before executing actions marketing team must follow up budget parameters.

Marketing and operational team: The promotional strategies and product development related plans of marketing team are difficult to accomplish without support of operational team. Thus marketing functions have dependency on operational unit as well. The prior coordination between both departments will prevent unnecessary last moment work pressure on operational team. Thus, organisational tasks will be performed with more accuracy. Before developing any product operational team must keep in mind the specifications used by marketing team for promotional description. It will prevent conflicting situation so that customer will not feel that quality is compromised.

Marketing and information technology team: The current marketing strategies and methods are largely based on technology. Thus, for safe and effective implementation it is necessary for marketing team to have perfect coordination with technology team (Ozturk, Allahyari San, Okumus and Rahimi, 2017). This dependency can also cause difficulties. For example if there is any technical error then it will significantly affect the marketing operations. Similarly, for providing advance marketing approaches the team must explain their needs to IT team so that they can give suitable technical solution.

Thus, it can be observed that marketing functions have great impact on other functional departments. Get the best Online HND Assignment Help from experts. Chat Now.

LO2

P3 Compare ways in which hospitality organisations use elements of the marketing mix (7Ps) to achieve overall business objectives

In hospitality sector it is very important for company to promote their products and services through effective strategies. promotion helps in creating awareness in minds of people. It also supports in giving an insight about who will be target audience, price, place of availability, etc. this is done by using marketing mix. It is a portfolio that consists of several strategies which is used by firm to achieve their goals and objectives. There are basically 4 P’s used by companies which are product, place, price and promotion. Every organization have their own marketing mix plan. Here, the 7 elements of McDonald’s and KFC are compared that is as follows:-

Elements

McDonald’s

KFC

Product

The product mix of McDonald’s is very wide and allows customer to choose from variety of products that include burgers, fries, soft drink, salads, etc. it has been produced as per needs of people. Company also provide services like home delivery, online payment, etc. in festive seasons offers and discounts are provided to attract more customers.

KFC products are also similar with McDonald’s but it consists of mostly non veg meals. Also, there are burgers, sandwiches, shakes, etc. they are designed especially for non veg people. Company does not provide services like abc. It is having a large customer base.

Price

Prices of the McDonald's are generally lower as compared to KFC because this company generally contains products wide range of products. Prices are comparatively cheap. MacDonalds generally adopts various pricing policies such as “campaign 55” this provides hamburgers at bargain prices.

Prices of KFC are high because this company deals with limited products and also the production of such food items are so costly because it mostly deals with non vegetarian eatables.

Place

This company is located in many countries across the world. Its outlets are mainly present in 12 eastern coastal provinces. Mainly 80% outlets of MacDonalds are situated in 1376 places. No outlet of this organisation is present in those cities which are below the level of provincial capital. It is located in prime locations such as malls, complexes etc.

It is a Chinese fast food which is normally located in a very less area. This company mainly deals with Chinese products which usually chooses fast food industrial marketing area. China has become one of the most important markets for international fast-food over last many years. Approximately 71% of KFC outlets are in the western regions as relatively compared to ordinary cities.

Promotion

Being a global brand it basically explore in the old market because children are more likely to attract from such variety of eatable items. They target large middle class audience because it provides lowest prices products.

This enterprise mainly target non vegetarian people so casts and religious are mostly targetted. Advertisement and promotion on social media had a great impact promoting KFC items.

physical evidence

This can be considered as a lowest paying job which generally requires less skills and it also had a fewer advancement opportunities. Physical evidence appearance creates long lasting impression in the minds of consumers. It might be staff members, building maintenance in terms of speed, quality transparency, cleanliness etc.

It is also referred as the physical environment of Outlets where customer visits so Staff management of KFC have to follow certain standards which are adopted by parent company. It attracts customers (Ozturk, Allahyari, Okumus and Rahimi, 2017). KFC uses good technology equipment as compared to MacDonald.

packaging

Packaging of the product is the most important aspect as this packaging influence large number of people it can also be referred as a physical evidence. Packaging of MacDonald contains an attractive logo which is big yellow colored 'M'

KFC provides very attractive packaging to its product which mostly influence people who belongs to the those group who likes to try different chicken varieties.

Process

This is referred as the food products which are manufactured needs to be transparent to customers so that this builds strong faith among customers. MacDonald have invented the most efficient cooking equipment's

Here process starts with the visits of the consumers into any of the outlet which leads to great customer satisfaction. This organization also allows customers to order online

P4 Produce a basic marketing plan to meet marketing objectives

Marketing plan is a most strategic plan which involves most creative ways for potential; clients and this can be done by visiting by providing open invitation to people. Marketing plan of Travelodge includes new designed structure and satisfied room services. Marketing plan is basically considered as a strategy which helps in exploring different services across the world.

CONCLUSION

It is been concluded that hospitality management is a much wider scope which requires planning and marketing strategies in order to communicate large variety of services to customers.

This study had provided the main essential requirements of hospitality management. The study had mainly discussed the various roles of marketing and interrelation of different functional units with each other. The research had widely focussed towards comparing various marketing mix (7 P's) elements of MacDonald and KFC in order to achieve over all business objective. The study had also provided a marketing mix plan of a hospitality management company named as Travelodge which aimed at marketing its new strategies to large of people.

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