Running head: marketing mix PAPER Marketing Mix Paper October 09, 2008 Marketing Mix Paper Introduction The term marketing mix” implies the combination of strategies and tactics the company uses in order to achieve its business strategic goals and objectives by marketing its products and services efficiently to a specific customer target group. Marketing mix is also known as the “4 Ps”, namely, Product, Price, Promotion and Place. Marketing Mix is important because the companies have a necessity to ensure that they are marketing the right product to the right person at the right price in the right place and at the right time. The present paper is aimed to examine the components of marketing mix (Product, Price, Promotion and Place) and, using McDonalds case study to describe how each one of the four elements of the marketing mix impacts the development of McDonalds marketing strategy and tactics. Finally, the paper describes how each element in McDonalds is implemented. Marketing Mix: Product, Price, Promotion and Place As it was already mentioned, marketing mix comprises of the following components: Product, Price, Promotion and Place. Product is referred to as the physical product offered to the consumers or service rendered by the company to its consumers. Product also related to any kind of conveniences or services the company offers to its consumers.
The Term Paper on Elements of Marketing Mix
... describe the four elements of the marketing mix; product, place, price, and promotion. In addition, the four elements of the marketing mix will be discussed on the impacts ... time. The four elements of the marketing mix are equally important. This is because the products, places, prices, and promotions of an organization surround the most ...
In such a way, the product decisions should include such aspects like appearance, function, services, packaging, warranty, to mention a few. What concerns price, the companies should take into consideration profit margins as well as the attempts to predict possible pricing reactions of the company’s competitors. In addition to the list price, pricing includes financing, various discounts, offers and other aspects like leasing, to mention a few. Place is related to distribution channels used by the company as the means for delivering products to the target consumers (10 Minutes Guide: Marketing Mix, 2004).
The system of distribution performs logistical, transactional and facilitating functions. In such a way, place also includes such aspects like market coverage, selection of the distribution members for distribution channels, logistics, and levels of service, to mention a few.
Finally, promotion involves communication and selling strategies. Promotion costs may be relatively large in proportion to the product price. Promotion elements include advertising, sales promotion, public relations, direct marketing, personal selling, etc. McDonalds Marketing Mix: Product McDonalds adheres to its policy of thinking global and acting locally. The company adapts its product range correspondingly, whether the product is in Europe, the United States, or in any other country. McDonalds management team acknowledges the necessity to adopt products in relation to the religious laws and other customs in each country, where the company establishes its presence; therefore in each country McDonalds makes changes to its product to ensure it is being offered to suit. For example, in the Muslim-dominated countries McDonalds product range includes no pork, and in India, where eating beef is prohibited, McDonalds products contain no beef, and McNuggets are made vegetarian.
At the same time, in Germany, where drinking beer is popular, the company serves burgers with beer (McDonald’s Corporation – a Case Study, 2003).
Also, in Italy, where the population likes espresso and pasta, the McDonalds burger is served with espresso and cold pasta. In addition, the important element of McDonald’s policy related to its products is to ensure the consumers that they have a choice. McDonalds offers its consumers a huge number of places to spend the money and the huge number of ways of spending it. In order to succeed, McDonalds emphasizes on developing a menu based on the consumers needs by conducting continuous market research. McDonalds Marketing Mix: Place MacDonalds management understands that local markets are quite saturated, therefore, the company adheres to expansion strategy considering the potential for growth in international markets. At the same time, MacDonalds continues its expansion strategy in the United States, thus planning to continue deriving benefits from its experiences in the United States (The marketing process, 2008).
The Term Paper on Blower Unit Price Market Company
Executive summary By early 1988, Augustine Medical executives were actively engaged in finalizing and marketing the program for the patient warming system named Bair Hugger Patient Warming System. The principal question yet to be resolved was how to price this system. Several considerations are required in terms of organizational objectives, demand for the product, customer value perception, buyer ...
MacDonalds has a lot of competitors, which are, in contrast to MacDonalds, are just starting international expansion strategy.
Therefore, the company understands that its experience in international markets is the source of their competitive advantage. McDonalds Marketing Mix: Price MacDonalds adapts its pricing policy to each local market where the company operates in. In addition, as far as the company adheres to the policy of standardization, it allows MacDonalds to have substantial cost savings. MacDonalds pricing policy allows the company to effectively select the price objective, to determine demand, to effectively estimate required cost and to identify their competitors’ price. In general, MacDonalds pricing strategy is aimed to increase its market share and to use price leadership by being the cheapest fast-food restaurant in the industry. Alongside with its pricing strategy, the company consistently looks at the demand for each product within MacDonalds product range, and consistently monitors its competitors pricing policy in each country MacDonalds operates in.
In such a way, flexible pricing policy allows the company to set prices for each country correspondingly. It should be also taken into consideration that MacDonalds, unlike its competitors in the fast food industry, while monitoring prices in the fast food sector doesn’t merely monitors the prices in fast food restaurants chains, but also consistently monitors prices in other local sources of food. MacDonalds pricing policy in Hong Kong can serve as an illustration to this policy. For example, in Hong Kong MacDonalds decided to establish the price of its value meal to be less than 50% of the simple noodles meal price (McDonald’s Corporation – a Case Study, 2003).
The Business plan on The Boeing Company Marketing Policy
CONTENTS 1. COMPANY OVERVIEW... p. 3 to 4 Company's vision, mission statement and objectives Vision... p.3 Boeing- Airbus market share... p. 42. SITUATION ANALYSIS... p. 5 to 10 PEST analysis...p. 5 SWOT analysis... p. 7 Boeing Corporate Culture... p. 103.THE BOEING COMPANY MARKETING POLICY... p. 11 to 30 Segmentation... p. 11 Boeing's Positioning and Targeting Strategy...p. 12 Buyer behaviour... ...
Such adaptive pricing strategy allowed the company to be one step ahead of its competitors. For example, according to the comparison of Big Mac prices from around the world, in Australia the price of Big Mac is $2.65 (?0.87), in South Africa R7.80 (?0.92), in USA $1.89 (?1.13), in Korea 2,600 won (?1.13), in India Rs 80 (?1.19), in New Zealand $3.65 (?1.2), in Turkey 500,000 TL (?1.25), in Japan 280 yen (?1.27), in Spain – 375 psts (?1.44), in Brazil – 2.95 reals (?1.52), in Ireland – IERP 1.85 (?1.52), and in Switzerland – SF 4.02 (?1.52) (McDonald’s Corporation – a Case Study, 2003).
In such a way, Macdonalds adheres to a flexible pricing policy adapted to the specific local and international markets. McDonalds Marketing Mix: Promotion Finally, the fourth element of marketing mix is promotion. McDonalds promotion policy is also adaptive and consists of advertising, direct marketing, sales promotion, public relations and personal selling. McDonalds actively promotes its products. For example, one of the most famous promotional activities involves McDonalds I’m lovin’ it” promotional campaign aimed at various consumer target groups featuring popular music artist Justin Timberlake. The launch of this campaign was announced on September 29, 2003 (McDonald’s Corporation – a Case Study, 2003).
By means of I’m lovin’ it” the company wanted to establish a cultural connect with all its consumers all over the world. I’m lovin’ it” campaign consisted of various activities, ranging from national sponsorships to training, promotions and local street marketing campaigns. According to Mike Roberts, the president of the U.S. McDonalds branch, 13,500 restaurants in the United States were united behind the new brand message I’m lovin’ it.” (McDonald’s Corporation – a Case Study, 2003) In its promotional activity, the company wanted to bring this theme to life for every consumer through perfect fast food restaurant operations and service, compelling food choices, new McDonald’s decors and motivating value. In addition to this campaign, McDonalds made partnerships with Limited Too, Walt Disney Company, and Blockbuster. Famous McDonalds Happy Meal bags for children also had discount coupons for various products for Blockbuster and Limited Too stores.
The Essay on Mcdonalds Marketing Communication Strategy Assignment
With television we can bring the associations of the season with our product, which is valuable. We do not use television for direct-response purposes, but want to let the customer know about our product and make them curious. The next time they step into a McDonald’s branch they are aware and curious of the existing of the product and that will result in a higher chance that the customer purchase ...
According to McDonalds estimates, this promotional decision was targeted at teenagers and was aimed to open doors to video games, movie rentals and fashion. Among McDonalds campaigns, the company also launched its own magazine, known as Relax that was targeted at mothers segment and contained helpful tips and advices to busy mothers. This magazine was distributed to each consumer, who purchased Happy Meal bag. In addition to Relax, the company launched new retail line McKids (videos, toys, books, clothes, and accessories for kids).
McKids was launched in the spring of 2004 in eight world countries (in North and South America and Asia), and soon was expanded to other countries (McDonald’s History, 2008).
In such a way, McDonalds experience can serve as an illustration to successful marketing mix strategy in fast food industry, being an effective combination of strategies and tactics used by McDonalds in order to achieve its business strategic goals and objectives by marketing its products efficiently to McDonalds customer target group.
References 10 Minutes Guide: Marketing Mix. (2004).
Retrieved October 9, 2008, from The Chartered Institute of Marketing: http://www.cim.co.uk/MediaStore/10_minute_guides/1 0_min_Marketing_Mix.pdf McDonald’s Corporation – a Case Study. (2003).
Retrieved October 9, 2008, from http://www.hotelschool.cornell.edu/chr/pdf/showpdf /chr/research/casestudies/McDonalds_Case.pdf?my_pa th_info=chr/research/casestudies/McDonalds_Case.pd f McDonald’s History. (2008).
Retrieved October 9, 2008, from http://www.mcdonalds.ca/pdfs/history_final.pdf The marketing process.
The Business plan on Marketing Management Case Analysis
Marketing Management Case Analysis Subway® Sandwich Shops Abstract Subway® Sandwich Shops was founded in 1965, and has been franchised into the hearts and stomachs of families all around the world. This highly successful sandwich shop was the dream of high-school graduate Fred DeLuca. Premium1113 Words5 Pages Benefits of Strategic Management “Research has revealed that organisations that ...
(2008).
Retrieved October 9, 2008, from http://mlp.sharepointlive.de/mlp/publications/Case %20Studies/mcdonalds.pdf.
