The marketing mix is a tool used to help brands understand what elements must be combined in order to meet their marketing goals and objectives. Ultimately, this includes the 4 Ps of marketing: product, price, place and promotion. The 4 Ps of marketing is used as an analysis tool to help determine which combination of advertising channels will be employed to meet the promotional objectives of one's marketing plan. This includes looking at a specific product and strategically planning the placement, price and promotion around it.
Among the 4Ps, products are a fundamental determinant of McDonald’s brand and corporate image. The company is primarily known for its burgers.
However, the business gradually expands its product mix. At present, customers can purchase other products like chicken and fish, desserts, and breakfast meals.
Influence the product lines included in this element of the marketing mix. In diversifying its product lines, the company satisfies market demand, improves its revenues, and spreads risk in its business. In terms of risk, a more diverse product mix reduces the company’s dependence on just one or a few market segments. This element of McDonald’s marketing mix indicates that the firm innovates new products to attract more customers and improve its business stability.
Place/Distribution in McDonald’s Marketing MixThis element of the marketing mix enumerates the venues or locations where products are offered and where customers can access them. Restaurants are the most prominent places where the company’s products are distributed. However, the business utilizes various places as part of this 4P variable. The main places through which McDonald’s distributes its products are as follows:. Restaurants. Kiosks.
McDonald’s mobile apps. Postmates website and app, and othersMcDonald’s restaurants are where the company generates most of its sales revenues. Some of these restaurants also manage kiosks to sell a limited selection of products, such as sundae and other desserts. Some kiosks are temporary, as in the cases of kiosks used in professional sports competitions and other seasonal events. This element of McDonald’s marketing mix also involves the company’s mobile apps. These virtual places are where customers can access information about the company’s products and buy these products. For example, the company’s mobile apps for iOS and Android let customers claim special deals, find restaurant locations, place orders, and pay for such orders involving participating McDonald’s restaurants.
Furthermore, customers can place their orders through the Postmates website and mobile app. This element of the marketing mix supports, especially in serving more customers around the world.
McDonald’s Promotion (Promotional Mix)This element of the marketing mix defines the tactics that the business uses to communicate with customers. Among the 4Ps, this variable focuses on marketing communications with target customers.
For example, the company provides new information to persuade consumers to purchase new products. McDonald’s uses the following tactics in its promotional mix, arranged according to significance in the business:. Advertising (most significant). Sales promotions. Public relations. Direct marketing. Advertisements are the most notable among McDonald’s promotion tactics.
The corporation uses TV, radio, print media and online media for its advertisements. On the other hand, sales promotions are used to draw more customers to the company’s restaurants. For example, McDonald’s offers discount coupons and freebies for certain products and product bundles, as a way of attracting more consumers. In addition, the company’s public relations activities help promote the business to the target market through goodwill and brand strengthening. For instance, the Ronald McDonald House Charities and the McDonald’s Global Best of Green environmental program support communities while boosting the value of the corporate brand. Occasionally, the company uses direct marketing, such as for corporate clientele, local governments, or community events and parties. In this element of its marketing mix, McDonald’s Corporation emphasizes advertising as its main approach to promote its products.
McDonald’s Prices and Pricing StrategiesThis element of the marketing mix specifies the price points and price ranges of the company’s food and beverage products. The aim is to use prices to maximize profit margins and sales volume. McDonald’s uses a combination of the following pricing strategies:. Bundle pricing strategy. Psychological pricing strategyIn the bundle pricing strategy, McDonald’s offers meals and other product bundles for prices that are discounted, compared to purchasing each item separately. For example, customers can purchase a Happy Meal or an Extra Value Meal to optimize cost and product value. On the other hand, in psychological pricing, the company uses prices that appear significantly more affordable, such as $.99 instead of rounding it off to the nearest dollar.
This pricing strategy helps encourage consumers to purchase the company’s products based on perceived affordability. Thus, this element of McDonald’s marketing mix highlights the importance of bundle pricing and psychological pricing to encourage customers to buy more products. References.
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The 4 P’s That Make Up a Marketing MixA marketing mix consists of a combination of factors that a business can control in order to influence consumers to purchase its products.By strategically manipulating these factors and continuously optimizing them, businesses can better serve their customers; in turn, boosting their bottom lines.Marketing mixes are comprised of the four P’s of marketing — product, price, promotion, and place.Below we outline the various components of each of the four P’s of marketing.