The interrelationships between the marketing function and other business areas in mcdonald’s

Table of Contents
I.

Introduction........................................................................................................................4

II.

The roles of some positions in marketing function............................................................4

III.

Functions and responsibilities of the two most significant roles...................................5

IV.

Marketing Department Functions..................................................................................6

V.
VI.

The interrelationships between the marketing function and other business areas.............7
The interrelationships between the marketing function and other business areas in

McDonald’s................................................................................................................................8
VII.

The business objectives of McDonald’s and KFC.........................................................9

VIII.

7Ps strategy in marketing of McDonald’s and KFC....................................................10

IX.

The most important 2Ps analysis in the marketing mix...............................................13

X.
XI.

Conclusion........................................................................................................................16
REFRENCE LIST........................................................................................................16

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I.

Introduction

We will discover about the Marketing department's tasks and responsibilities concerning the
internal and external environments of one of the world's most powerful fast food empires,
McDonald's. The company was founded in 1940 by brothers Richard and Maurice ("Mick &
Mack") McDonald. Ray Kroc acquired the McDonald brothers' foundation for today's famous
business, which grew into one of the world's most successful fast-food companies.
McDonald's is not only well-known in the United States, but it has also achieved influence
spread in the foreign market. McDonald's fast-food restaurants may now be found in over 100
countries! McDonald's will be located anywhere you go, offer several hamburgers at different

prices. The company has over 69 million followers worldwide, with 14,000 shops in the
United States, and 37,000 locations.
In 2013, businessman Nguyen Bao Hoang, son-in-law of former Prime Minister Nguyen Tan
Dung, was granted permission to open the first official McDonald's restaurant in Ho Chi
Minh City, measuring around 3,000m2 and serving 350 people. And by 2021, this fast-food
chain have more than 20 locations in Vietnam.
(McDonald, 2021)
(Top 10 VietNam, 2021)

II.

The roles of some positions in marketing function
The roles of marketing executive

A marketing executive is a key responsibility in any business. They are mostly in charge of
developing and implementing marketing strategies to promote the company's products or
services. This revision a variety of roles, such as planning, participating in public relations,
planning events, producing goods, doing research, and advertising. In addition, the marketing
executive must develop goals and tasks for each marketing strategy and explain these goals to
team members and industry partners. At the same time, they must collaborate with other
departments to develop a clear marketing strategy that is in line with the client's or
organization's goals.
The roles of communication officer
Marketing officers work in a wide range of industries. They might be engaged by colleges,
charities, artistic groups, private schools, and public sector organizations in addition to
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private-sector corporations. A marketer's core tasks may include: doing market research,
understanding the company's audience and requirements, working directly with management
to design particular strategies, and writing PR content such as press releases, newsletters, or
speeches. In addition, they will be in charge of corporate communications. Marketing
officers are also responsible for formulating and keeping good ties with the media to promote
the company's image, plan promotional events, and participate in press conferences. They
must also monitor and respond to consumer and media comments, and ensure that digital
marketing operations are consistent with the company's identity and brand messaging.
The roles of digital marketer
Digital marketing is the promotion of products and services using various digital channels
such as the internet and smartphones. A digital marketer will be involved in the creation of a
business's multichannel communication strategy and may work across many areas or
specialize in several, depending on the size and needs of the organization. Digital marketers
are classified into four types: social media marketing, search engine optimization (SEO), payper-click (PPC) advertising, and affiliate marketing. A digital marketer's responsibilities
include writing and sending email marketing campaigns, researching new online media
opportunities that can benefit the business, designing website banners and web visual support,
communicating with clients, managing a network of affiliates and affiliate partners,
performing keyword research, and compiling web statistics reports... Furthermore, they must
be proficient at working with members in different regions to ensure the success of their
campaigns.

III.

Functions and responsibilities of the two most significant roles

The two most significant jobs in McDonald's marketing department, in my opinion, are
marketing executive and digital marketer.
The Marketing Executive's Role

In Internal Environment
The marketing executive's duty in the business's internal environment is to synthesize and
make choices based on the BOD's short and long-term goals. As the primary supervisor of
marketing campaigns, the marketing director must also interact directly with other
departments inside the company (accounting, human resources, R&D, etc.) about the
objectives and strategies of such campaigns to develop a thorough, logical, and successful
strategy.
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In External Environment
For the external environment, the marketing executive will also need to deal with suppliers
and marketing intermediaries (resellers, warehouses, transshipment warehouses,...). At the
same time, having information about competitors, as well as recognizing trends and customer
purchasing demands is key for them in making marketing strategy decisions.
The Digital Marketer's Role
In Internal Environment
Digital marketers are also very significant in the internal environment. This role contributes
to the development of advertising campaigns to assist the organization to accomplish its
objectives. They must comprehend the company's and other departments' situations to
develop appropriate and successful initiatives. For example, when it conducting a digital
marketing campaign, digital marketers might base their decisions on the results of research
conducted by the R&D department. According to research, 80% of consumers currently make
purchases via mobile devices, so McDonald's has used a variety of social networking sites to
sell and engage with customers.
In External Environment

For the external environment, digital marketers assist to plan the business so that it may
easily outperform rivals and come up with these ideas that are by current trends to please
customers. As a result, the organization can maintain existing consumers while also attracting
new ones.

IV.

Marketing Department Functions

The Marketing Department is critical to the success of an organization's business and
purpose. It serves as your company's public image, coordinating and generating all materials
that reflect the company. The Marketing Department's mission is to reach out to potential
consumers, customers, and investors to establish an overall picture that positively portrays
your firm. Basic marketing responsibilities may include: creating and managing your brand,
designing and implementing promotional programs, being in charge of corporate
communications, doing market and consumer research, and so on.
In Internal Environment
The work of assessing the market and consumers are also crucially important in the internal
environment. Following market and consumer research, the marketing department is
responsible for cooperating with other departments to examine the firm's position, such as
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budget, staff, or corporate policies. Create the best marketing plan for your organization
based on your findings. Not only that, but the marketing department is also responsible for
internal communication inside the organization. Typically, this department is in charge of

staff communication by internal newsletters.
In External Environment
Market, competitor, and customer research will assist you in identifying your market, goals,
and opportunities, as well as provide you with a clear overview of your products and services.
Controlling and managing company communications is also crucial. When your company is
mentioned in the media, a marketing employee typically serves as the company's
representative. This helps in the growth of your company's image and brand. It also provides
the government, media, and customers with an understanding of your business.

V.

The interrelationships between the marketing function and other business
areas.
The relationship between Marketing department and R&D department

R&D is an abbreviation for Research and Development. This section is regarded as an
essential link in the success of many significant corporations around the world. Making
investments, purchasing and selling, analyzing, learning and gathering information, testing,
and producing new goods for the organization are all examples of R&D operations.
Meanwhile, the marketing department will make use of the R&D department's data, as well
as an analysis of the company's existing situation. After that, create a marketing strategy for
each service and product.
The relationship between the Marketing department and the Finance department
The finance department of a company is in charge of supervising the financial position.
Finance is critical to every company decision, from planning and budgeting to risk and cost
management. The marketing department is in charge of the company's sales management and
development. To develop a specific advertising strategy, the finance department must
collaborate closely with the marketing department to track market trends. In a nutshell, the
business's finance and marketing departments collaborate to reduce expenses and increase
revenues.

The relationship between the Marketing departments and Human Resources
departments

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The human resources department is responsible for hiring, training, and developing human
resources, assisting the organization in meeting its objectives, and ensuring the company's
business activities run smoothly and efficiently. The human resources department of the
organization provides excellent support for the marketing department's work. Through staff
selection and training, this force will be able to satisfy the demands of customers. As a result,
these two departments must collaborate closely to satisfy the company's customers and
partners.

VI.

The interrelationships between the marketing function and other business
areas in McDonald’s
The relationship between Marketing department and R&D department

McDonald's has seen success as a result of the perfect collaboration of its R&D and
marketing departments. To build excitement, the R&D department's researchers had to
investigate the patterns of teenage clients, along with the culinary menu. McDonald's has
teamed up with world-famous K-pop boy band BTS to promote the "BTS meal" campaign,
which is the most effective marketing plan for 2021. This combination has attracted a lot of
attention. worldwide, especially BTS fans. McDonald's also announced that, compared to the

same period last year, the worldwide fast-food chain's income has increased by a staggering
41% to approximately $5.9 billion thanks to a partnership with boy band K -This pop. From
them, it is clear that McDonald's smart and fair marketing campaigns have brought great
success to the corporation's company.
(An, 2021)
(Pafitis, 2020)
The relationship between the Marketing department and the Finance department
McDonald's is currently one of the world's largest fast-food enterprises. They must also
actively promote their services and goods. As a result, marketing and advertising are
significant expenses. The finance department will collaborate with the marketing department
to develop a marketing strategy before preparing the budget report. The finance department
will also provide direct advice to the BOD on advertising expenses. A well-executed
marketing plan is likely to yield positive results in terms of revenue. However, the finance
department will decide whether or not it is truly successful in terms of cost. McDonald's has
had several successful advertising initiatives throughout the years, such as Hands Full, Search
It, Bevin Burger's Facebook live, The Big Mac's 50th birthday, and so much more. As a
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result, we can see extremely good teamwork between McDonald's financial and marketing
departments
(Econsultancy, 2019)
The relationship between the Marketing departments and Human Resources
departments
Marketing must help businesses accomplish their objectives by providing the demands of
their customers. The HR department's mission is to achieve the business's goals through the

utilization of human resources. A good HR strategy will also help the marketing department's
other specific strategic goals. McDonald's successful product localization methods, such as
the 2019 introduction of "Burger Pho" to the menu "Love Vietnamese." The unique mix of
the essence of different cultures from across the world not only surprises local customers but
also piques the interest of the global culinary community. One significant achievement is that
on April 26, 2021, McDonald's was awarded to earn the Golden Dragon Award 2021 for its
efforts in overcoming the Covid-19 epidemic and building a sustainable company.
McDonald's receives this honor as a result of the HR department's achievement in the areas of
training and human resource development. Each employee at McDonald's Vietnam has a
defined growth path that takes them through a variety of jobs, allowing them to better
understand the organization and find their strengths. McDonald's was been named one of the
top 50 brands in the world by students.
(McDonald's News, 2021).

VII.

The business objectives of McDonald’s and KFC

McDonald's business objectives
McDonald's main objective is to provide tasty cuisine at a good price in a welcoming,
enjoyable environment. Furthermore, McDonald's aspires to be a socially responsible
business that generates excellent profits for its shareholders.
(McDonald's Annual Report, 2021)
KFC's business objectives
"Always Original," according to KFC. KFC continues to invest in innovation by refunding,
repackaging, and reconnecting our key menu items throughout the world. KFC's main
objective is to provide consumers with a leading brand of cuisine that is energetic and
enjoyable for people of all ages. The KFC brand's criterion and strategy are "Youth in the
soul, energetic in life."
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(YUM! Brand Annual Report, 2020)

VIII. 7Ps strategy in marketing of McDonald’s and KFC

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IX.

The most important 2Ps analysis in the marketing mix

Products and Price are, in my opinion, the two most essential components in McDonald's and
KFC's 7Ps marketing mix.
1. McDonald’s Products
Advantages
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McDonald's, as a food service company, concentrates on primary items such as prepared
dishes and drinks. The creation of a diverse range of items is also a component of this brand's
success. Customers may enjoy a variety of foods for different purposes. At the same time,
because fast food is not a common sight in Vietnam, it piques people's interest.
Disadvantages
In addition to successful product launches, McDonald's has faced problems in big markets
such as the United States. McDonald's introduced a new burger named Arch Deluxe "Mature Burger" in 1996. The brand intended to debut an adult-only burger, but the product
failed to attract the targeted number of customers. McDonald's has not had much success in
terms of product strategy in the Vietnamese market, in particular. The company also makes an
effort to develop "localized" items but has had limited success. Because Vietnam has a
thriving culinary culture. Meanwhile, McDonald's menu focuses on quick dishes such as
chicken, burgers, and beverages. Vietnamese customers have many options outside of
McDonald's.
2. KFC’s Products

Advantages
KFC's products are well-known for drawing customers owing to their unique taste. KFC
provides each consumer in each nation with the surprise of exotic cuisines combined with a
little touch of home flavor. Customers love it, which contributes to the brand's success. In
Vietnam, it is apparent that KFC has focused on the development of chicken rice. Because
this is a popular meal among the Vietnamese. At the same time, it fits the requirements of a
simple but healthy lunch.
Disadvantages
KFC was successful with over 25,000 restaurants in over 145 countries globally, however, it
was not successful in Israel. Even though KFC has been present in this Middle Eastern
country since the 1980s, the brand is still struggling to create a foothold. Israel has the most
devoted Jews in the world, and they must stick to strict dietary regulations. The Jews prohibit
the mixing of meat and milk in cooking, but KFC does it every day over the world. Although
KFC has attempted to investigate and develop Kosher fried dough with soy milk powder as
the vital element. This style of fried dough, however, has lost its signature chicken taste.
Hopefully, KFC will be able to capture this market in the future.
(Leo, 2019)
3. McDonald’s Price
Advantages
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McDonald's has a competitive pricing approach in huge markets such as the West. As we can
see, the majority of the nations in this market have developed economies. People's GDP is
also pretty high. As a result, purchasing fast food is also quite simple because the prices
published by McDonald's are also appropriate for their income level. Not only that, but there

are major competitors in these areas such as Subway, Burger King, Captain D's, and so on. As
a result, McDonald's use of a pricing competition approach in these markets is logical.
Disadvantages
McDonald's plans to produce big surprises in the fast-food industry sector although it was
just established in Vietnam in 2014. However, McDonald's failed by employing a high-price
approach in a nation with a weak economy, such as Vietnam. A Big Mac now costs around
66,000 VND in Vietnam (2.91 USD). This is an excellent deal for the Western market. But,
considering the typical Vietnamese income, this price is extremely high, making it unsuitable
for providing regular meals. Even though McDonald's offers a few items that have been
adjusted to suit Vietnamese tastes, not all Vietnamese diners can become regular customers at
McDonald's due to price difficulties.
4. KFC’s Price
Advantages
KFC is experimenting with regional pricing. Each country and economy will have its pricing
criteria. In Vietnam, KFC is very clever in its use of the discount method. This helps them
attract clients while also expanding their market to include low-income individuals such as
students. KFC took the tactic of raising prices higher than its competitors after proving its
brand in the Vietnamese market and having more competitors. This also confirms that the
product's quality is comparable with the price. Furthermore, KFC modifies prices for
customers who have VIP cards, offering combo to assist consumers to save money.
Disadvantages
KFC, like many other major firms in the fast-food business, has not been very successful in
Vietnam. Spending 50,000 VND (2.2 USD) on a fast meal is pretty simple in wealthy nations.
Because it is a reasonable price to their income. At the same time, they have a limited
selection of other goods, while Vietnam has a huge and diversified street food culture. Food
of various types is accessible everywhere, whether on the pavements, in shops or on the
river's boats. With a wide choice of items, customers may have a tasty full meal at a more
good price no matter where you are.

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X.

Conclusion

We now have a detailed understanding of the function of marketing in business in general, as
well as its relevance to McDonald's success. At the same time, we are aware of several key
roles in the marketing department, as well as the department's close relationship with other
departments.

XI.

REFRENCE LIST

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