3/15/2018 McDonald’s Marketing Mix (4Ps) Analysis - Panmore Institute

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BUSINESS, MANAGEMENT

McDonald’s Marketing Mix (4Ps) Analysis

UPDATED FEB 5, 2017 | PAULINE MEYER

McDonald’s marketing mix (4Ps) involves

varied approaches that meet business
concerns in different markets around the
world. The marketing mix de nes the
strategies and tactics a rm uses to reach
target customers. McDonald’s has
corporate standards that its marketing
mix applies globally. The company also
A McDonald’s in Gdańsk, Poland. McDonald’s uses its
marketing mix to support global growth and maintain its uses some variations of its marketing mix
leading position in the fast food restaurant industry. (Photo: to suit the local conditions of markets.
Public Domain)
For example, McDonald’s promotion
focuses on print media in countries
where such media are most popular. The company’s effectiveness in implementing its
marketing mix contributes to the leading performance of the McDonald’s brand and
business in the international fast food restaurant industry.

McDonald’s marketing mix facilitates effective reach to the target market. This marketing mix
supports the company’s leading global industry position, as well as the strength of its brand.

McDonald’s Products (Product Mix)

McDonald’s provides mainly food and beverage products. This element of the marketing
mix covers the various organizational outputs (goods and services) that a company
provides to its target customers. McDonald’s product mix has the following main
product lines:

1. Hamburgers and sandwiches

2. Chicken and sh
3. Salads
4. Snacks and sides

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5. Beverages
6. Desserts and shakes
7. Breakfast/All-day breakfast
8. McCafé

McDonald’s is primarily known for its burgers. However, the company expands its
product mix through time. At present, customers can purchase other popular products
like chicken and sh, desserts, and breakfast meals. This element of McDonald’s
marketing mix indicates that the rm innovates new products to attract more
customers.

Place/Distribution in McDonald’s Marketing Mix

McDonald’s restaurants are the most prominent places where the company’s products
are distributed. This element of the marketing mix indicates the venues or locations
where the rm’s products are offered. McDonald’s main places for distributing its
products are as follows:

1. Restaurants
2. Kiosks
3. Postmates website and app
4. McDonald’s mobile app

McDonald’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 desserts. Some kiosks are temporary, as in the cases of kiosks used in seasonal
events and professional sports competitions. In addition, customers can place their
orders through the Postmates website and mobile app. Moreover, the company’s mobile
apps for iOS and Android OS let customers claim special deals and nd McDonald’s
restaurant locations. This element of the marketing mix supports McDonald’s intensive
growth strategies, especially market penetration.

McDonald’s Promotion (Promotional Mix)

McDonald’s promotes its products to attract more customers. This element of the
marketing mix de nes the approaches used to communicate with the customers.
McDonald’s uses the following tactics in its promotional mix:

1. Advertising
2. Sales promotions
3. Public relations
4. Direct selling

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3/15/2018 McDonald’s Marketing Mix (4Ps) Analysis - Panmore Institute

McDonald’s advertisements are the most notable among its promotion tactics. The
company uses TV, radio, print media and online media for its advertisements.
McDonald’s also uses sales promotions to draw more customers to its restaurants. For
example, the company offers discount coupons and freebies for certain products. In
addition, McDonald’s public relations activities help promote the business to the target
market. 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 selling, such as for corporate
clientele, local government or community events and parties. In this element of its
marketing mix, McDonald’s emphasizes advertising as its main approach to promote its
products.

McDonald’s Prices and Pricing Strategy

McDonald’s pricing strategy involves price bundling combined with psychological
pricing. In price bundling, the company offers meals and other product bundles for a
discount. In psychological pricing, McDonald’s uses prices that appear to be signi cantly
more affordable, such as $__.99 instead of rounding it off to the nearest dollar. This
element of McDonald’s marketing mix highlights the importance of price bundling to
encourage customers to buy more products.

References

Dominici, G. (2009). From marketing mix to e-marketing mix: a literature overview

and classi cation. International Journal of Business and Management, 4(9), 17-24.
Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal of
Marketing Studies, 1(1), 2.
McDonald’s Corporation (2015). Food.
McDonald’s Corporation (2015). Mobile App.
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and
New Product Development with a focus on Marketing Mix 4P model. Asian Journal of
Research in Marketing, 4(2), 98-108.
Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classi cation of the
marketing mix revisited. The Journal of Marketing, 83-93.
Yun-sheng, W. (2001). Perfection and innovation of 4P Marketing Mix – How to
evaluate 4P Marketing Mix. Commercial Research, 5, 6.

TAGS:
CASE STUDY & CASE ANALYSIS, MARKETING, MARKETING MIX (4PS), MCDONALD'S CORPORATION, 
RESTAURANT INDUSTRY

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