Mkt 421 - Elements of the Marketing Mix

Elements of the Marketing Mix

Sandra Graves

MKT/421

October 5, 2011

Vanessa Easter - Facilitator

University of Phoenix

Marketing Mix

"A Marketing Mix - the controllable variables the company puts together to satisfy the target group (William D. Perreault, 2009, p.33)."

High -performance organizations today know that their marketing is a key part of their success or failure. Planning marketing management in a resourceful way is the best way to ensure that your marketing operations are successful. Marketing means setting goals, evaluating new opportunities, crafting marketing strategies, making plans for marketing, and coming up with marketing programs.

Development of market strategy is an important part of planning marketing. The creation of market strategy begins with targeting a particular market for a service or product, and then designing a market mix that will appeal to the targeted market. The elements and the marketing mix are important components of an organization's marketing plan. Product, Place, Promotion, and Price are the four P's described in the marketing mix. Some have the perception that the customer is a part of the marketing mix, but this is not a true fact. The customer is the main focal point. "The basic reason to focus on some specific target customers is so that you can develop a marketing mix that satisfies those customers' specific needs better than they are satisfied by some other firm (William D. Perreault, 2009, p. 36)."

Product

The "product" in the marketing mix means coming up with the right product for the targeted audience. The product could be a service, goods, or both. A product is not simply physical goods. "For example, the product of H & R Block is a completed tax form. The Product of a political party is the policies it works to achieve. The important thing to remember is that your goods or service should satisfy some customers' needs (William D. Perreault, 2009, p. 36)."

The McDonald's Corporation was founded in 1955 as a hamburger stand in Des Plaines, Illinois, by Ray Kroc who decided to develop a marketing plan using the market mix recipe. It is useful to reduce al the variables in the marketing mix to four basic ones: Product, Place, Promotion, and Price. It helps to think of the four major parts of the marketing mix as the "four P's (William D. Perreault, 2009, p. 35, 36)." McDonald's needed to research the best direction and strategy that would provide the product, the type of service, and the pricing options that would allow McDonald's to receive a profitable return on investment (ROI). The success of the recipes developed by McDonald's allowed Ray Kroc to create the McDonald's Corporation. The corporation was able to expand its position in the marketplace by franchising. The McDonald's is known worldwide.

Product

The early beginnings of McDonald's did not have the technology of today, such as cell phones, internet, personal computers, or jet airplanes. There was no awareness of health or fitness issues when Ray Kroc decides to start a fast food restaurant and called it McDonald.

McDonald's menu is consist of burgers, ( the big mac) fries, and thick creamy milk shakes. They developed an option for consumers that was, convenient, affordable, and an environment that was relaxing. An added attraction was the design and introduction of the golden arches and Ronald McDonald. The franchised corporation did not have any real competition, and in 1958, McDonald's sold its 100 millionth hamburger. The advancement of society began to create competition, and the competitors became more health conscious.

McDonald's reinvented its product lines over the years and never lost touch with controls for monitoring service processes-getting customers in and out quickly, conveniently, and with the appropriate order was a recipe for expansion into the global marketplace. Two years after their tenth anniversary in 1965, which was celebrated with an initial public offering price of $22.50, McDonald's commenced global operations in Canada and Puerto Rico; further, presently operations scan the globe in 118 countries (McDonald's.com, history, 2011).

They created a successful line of products which included the Big Mac, Quarter Pounder, French Fries, Filet-o-Fish, Happy Meals, breakfast fare, and salads. This includes a variety of soft drinks, coffees, teas, and desserts. McDonald's has accumulated franchises around the world, in such places as, India, Israel, China, Singapore, Fiji, and Morocco. Extensive research preceded expansion into diverse lands, which afforded smooth franchise transitions to operate and expand within the mindset of 'think locally'. Collaborations with local citizens proved to be a valuable lesson and profitable one. McDonald's franchises featured native citizens as owners, employees, and suppliers, which allowed for that seamless integration.

All McDonald franchises agree to conduct