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The Marketing Mix - Case Studies
Understanding the marketing mix is crucial for crafting effective business strategies. At Business Case Studies , our detailed exploration of the marketing mix provides valuable insights into how businesses can leverage product, price, place, and promotion to achieve marketing success. This case study delves into real-world applications, showcasing how companies strategically manage these elements to enhance their market position and drive growth .
By examining the intricacies of the marketing mix, you will learn how organizations align their marketing strategies with customer needs and market demands. Our case study illustrates practical examples of successful marketing campaigns and strategic decisions, offering actionable lessons for businesses aiming to refine their marketing approaches. Whether you’re a marketer, business owner, or student, this case study will deepen your understanding of how to effectively utilize the marketing mix to achieve your business objectives.
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Marketing Mix: definitions, analysis examples [Complete Guide 2023].
29 september 2021 • 3146 words, 13 min. read Latest update : 22 january 2024
By Pierre-Nicolas Schwab
The marketing mix aims at making your marketing positioning concrete . Often associated with the term “ 4Ps “, the objective of the marketing mix is to make your positioning tangible each time your brand is in contact with the consumer (the so-called “touchpoints”).
This article explains the difference between 4P and 7P , explains each facet of the marketing mix with numerous examples , and ends with a detailed case study .
To go even further, we suggest you consult our online resource , where we detail and illustrate all the factors to study for each of the 7Ps. We have also published case studies analyzed according to the 7Ps: Rimac electric car , high-end watchmaking , fruit juice , cosmetics .
Finally, don’t miss our free pdf marketing mix guide with tons of exemples. It’s free to download.
- The 4P: definition
- Difference between 4P and 7P
- P1: Product
- P3: Promotion
- P6: Process
- P7: Physical Evidence
- Complete case study (Ryanair)
- Marketing mix guide (free download)
Marketing mix: what are the 4Ps?
The term “marketing mix” is often associated with another acronym: the 4Ps. The two have become almost interchangeable since Philip Kotler popularized the concept. “4Ps” is the English acronym for the 4 operational facets of marketing that make your company’s positioning a reality. They all begin with the letter “p” in English:
- “Product” : all aspects related to the product (the Product Policy)
- “Price” : the price positioning of your product concerning its competitors (the Price Policy)
- “Promotion” : the aspects related to promotion such as advertising or the ways to make people aware of the existence of the product (the Communication Policy)
- “Placement” : aspects related to the distribution of your product (the Distribution Policy)
If Kotler popularized the 4Ps, its paternity goes to E. Jerome McCarthy (1960) . The latter’s genius was to summarize these 4 facets in the form of an acronym that has now become part of everyday marketing language. Since the 1970s, however, marketing has evolved considerably. The 4Ps have become, if not obsolete, at least seriously incomplete. In the 1980s, marketing theorists called for a revision of the 4Ps, leading to the birth of the 7Ps .
History: how the marketing mix went from 4Ps to 7Ps
- In 1960, McCarthy invented the 4P model (Product, Price, Place, Promotion)
- In 1987, Judd proposed a “human” component in the form of a fifth P (“people”).
- In 1986, Kotler added “political power” and public opinion (“public opinion formation”)
- It was in 1980 that the 7Ps took shape. Booms and Bitner proposed to add three “P’s”: “people” (to cover the human aspects of relationship marketing), “physical evidence” (a material component of the service), and the “process” part (interaction with the service user).
Marketing mix: what is the difference between the 4Ps and the 7Ps?
Digitalization has made the 4P’s seriously outdated. The 4Ps were indeed well adapted to a “physical” world but much less to e-commerce. They have therefore been supplemented by 3 new “P’s”:
- People : aspects related to human interactions through the multiple channels available today (primarily digital)
- Process : the processes put in place to guide interactions, especially those related to services.
- Physical Evidence: the tangible elements put forward to convince the customer (sales outlet layout, customer reviews, etc.)
To help you implement the marketing mix, we have prepared a detailed example at the end of this article.
A recent example (2023): the collaboration between Yayoi Kusama and Vuitton
The famous Japanese artist collaborates once again in 2023 with Louis Vuitton. This collaboration allows us to illustrate several facets of the marketing mix:
- Physical evidence : the Vuitton flagship store, already famous for its spectacular window displays , is adorned with a unique ephemeral decor. The facade is studded with round motifs, symbols of Yayoi Kusama’s work, and a huge inflatable effigy in her image.
- Product : the collaboration is realized through a special edition of the famous Vuitton bag. The monogrammed canvas is adorned with round patterns. This is not the first time that Vuitton has carried out this kind of collaboration. We will remember, for example, the one conducted with the article by Jeff Koons.
- Promotion : this collaboration is making news, which results in a spectacular staging of the sales outlet on the Champs-Elysees and a limited edition product. This operation can, therefore, also be analyzed from the perspective of the Promotion P.
Vuitton’s flagship store on Avenue des Champs Elysées in Paris, photographed in February 2023 during the collaboration with Yayoi Kusama.
The P in “Product” (Product Policy)
The first of the 7Ps is, of course, the product . The term product does not mean only a physical object. It can also be a service.
The chocolate maker Pierre Marcolini had materialized its collaboration with Kistuné by very original packaging.
To cover this first “P,” you will have to describe the product’s characteristics (design, packaging, functionalities), its place in the range, as well as the services that are attached to it (after-sales service, repair, end-of-life recycling).
Try to explain the characteristics of the product that make it different, unique, and that are part of its identity.
Also, think about the packaging, which is often an integral part of the customer experience , as it is at Apple.
The P in “Price” (Pricing Policy)
In the marketing mix of luxury watch brands, the pricing strategy is “value-based.” The price is determined according to the value perceived by the customer and is not the sum of the price of the components used.
The second of the 7Ps is central since it is about price.
Here, the aim is to describe how the company manages the different facets of “price” in its market . This starts with a description of the pricing strategy adopted by the company. The most well-known are the following:
- costs + margins: you add a margin to your production costs
- value-based: the price is determined according to the consumer’s perception of value
- competitive: you realize using the competition research and fix your price according to one of your competitors
The pricing strategy, once determined, will have to be declined in a “ price tactic .” The pricing tactic is the operational extension of the pricing strategy. It describes how, in concrete terms, the pricing strategy is applied in the field. In this respect, the strategy of Swiss watchmakers is fascinating. They create a shortage that supports demand by voluntarily limiting production and choosing to whom they want to sell. Some, like Patek Philippe, also support the price level by buying back their older models at a high price to increase their desirability. The price of the products then soars on the parallel market, creating speculative bubbles like the one we described in this survey. The graph below shows the effect of the pricing tactics of Rolex, Audemars Piguet, and Patek Philippe on the price of their men’s watches.
[embed-media unique_id=”rdd5k4rq3″]
Once the overall strategy is described, you will need to describe the other aspects of the marketing mix that depend on price:
- the pricing policy towards your intermediaries
- the discount policy towards your customers
- the payment policy and possible facilities offered to your customers to acquire your products
The P of “Promotion” (Communication Policy)
The third “P” is “Promotion.” It covers the aspects related to the company’s communication and the strategies used to make itself known on the market. The result is measured by the notoriety of the company among its target customers.
Electric hypercar manufacturer Rimac promotes its Nevera model by using YouTubers. Here Many Koshbin tries the vehicle in one of his YouTube videos (YouTube screenshot)
It is helpful to start by describing, in broad lines, the communication strategy followed by the company. What is the company’s position on advertising, and does it realize using advertising? Are specific media used (sponsoring, influencers, etc.)? If so, which channels are favored (digital, radio, TV, press, Out-Of-Home), and according to what logic are these channels selected?
When advertising investments are made, the repetition of messages plays a role in the persistence of the information in the consumer’s mind. Therefore, the analysis should try to clarify which repetition is aimed at, which will make it possible to deduce the advertising pressure that the company wants to impose and the importance of advertising in its global strategy.
In addition to advertising, the company can also promote itself through inbound marketing . It is, therefore, a matter of attracting prospects naturally. Inbound marketing is a tactic that materializes in the digital space. The goal is to improve natural referencing (SEO) to capture the attention of Internet users and attract them to the company’s website. It is, therefore, necessary to analyze whether the company invests in content marketing and, if so, which online media are privileged.
The P of “Place” (Distribution Policy)
The fourth “P” concerns the distribution policy (“Place” or “Placement” according to the 4P terminology). In this part, we analyze how the product or service is distributed. There are three main distribution strategies:
- direct distribution
- distribution via a third-party network
- hybrid (a mix of the 2 previous ones)
Perugina commercializes its “Baci” in large-scale distribution but also has some stores of its own (here the one in Perugia)
Nespresso distributes its coffee capsules through its own stores (direct distribution). Most food manufacturers sell their products through third-party networks (retailers). However, some of these manufacturers invest in their own stores ( Perugina , Lindt, M&M, ….). This is a hybrid strategy.
Once the broad lines have been drawn, the analysis of the marketing mix requires going into detail. It is advisable to study the opportunity of franchising, especially when the ambitions are high in terms of the geographical distribution of products. Covering a large territory requires significant resources. Therefore, a start-up with a product in high demand may have to turn to the franchise model to accelerate its deployment. This is a widespread model in the fast-food industry.
The Printemps store in Paris offers visibility to many brands and attracts foreign tourists.Crédits : gibs02 via Flickr.
Outsourced distribution (via a franchise network or third-party distributors) also has marketing coverage advantages. Some brands may naturally attract customer segments that could represent additional sales for your company. Regardless of the distribution strategy chosen, careful consideration must be given to the location of sales outlets (in the case of physical sales). The research on implementing physical commerce is of particular importance because of the decline in the number of visitors to physical sales outlets . Over the last 10 years, city centers have lost 50% of their pedestrian traffic, which inevitably affects profitability.
If the company opts for e-commerce (which seems essential), particular attention must be paid to the logistical aspects. In particular, request what logistical processes need to be implemented to meet customer expectations regarding product availability and delivery times. Customer requirements are constantly increasing. They are shaped by the delivery policies of the industry’s giants (Amazon and others), whose logistical excellence allows them to shorten delivery times even further. For SMEs that lack operational excellence, the use of third-party fulfillment services can be an enjoyable (but costly) alternative to compete with the giants.
The P of “People” (Relationship policy)
Starbucks had set up a co-creation platform allowing customers to propose ideas to the company. Customer interaction was also possible.
The relational policy (the fifth “P”) is part of the 3 new “Ps” proposed by Booms and Bitner in 1981. The recognition of the role of the human being coincides with the emergence of relational marketing . We understand that the human component can contribute positively to the quality of service and customer satisfaction/loyalty.
In this part of the marketing mix, we will focus on understanding how its marketing positioning can be materialized through its human component. We will study the human part in the success of the company, and the satisfaction of the customer, as well as the role, played by the employees to transmit the values of the brand.
In the digital era, the relational policy is no longer only in B2C. It also materializes through C2C (Consumer To Consumer) interactions. Customers become ambassadors for the company and sometimes even play essential roles. Ryanair, for example, has set up a customer advisory board . Hollister, a medical equipment manufacturer, has created its Vivre+ network to create links between patients through activities organized throughout France. The customer thus becomes an essential component of the marketing strategy. They become a full-fledged player, just like the employee.
The P of “Process” (the processes related to the service)
This part of the marketing mix is about describing and analyzing the processes surrounding the service. To make your analysis enjoyable, you should focus on the most distinctive elements of the processes.
Processes are a central component in the success of Ryanair’s low-cost business model.
In the case of a low-cost airline (see case study), we will look at the role of processes in the business model’s success .
When the marketing positioning is the opposite (luxury), the sales processes play a significant role. The attitude, gestures, and behavior of salespeople are codified to align with the values embodied.
Your marketing mix analysis can quickly skim over certain aspects and should go into detail when justified.
The P of “Physical evidence”
Abercrombie & Fitch used to emphasize the plastic qualities of its salespeople to attract customers.
The last of the 7Ps is called “physical evidence.” In the spirit of the marketing mix, it is the tangible elements with which the customer is in contact when he buys the product .
These elements can be linked to the sales outlet itself (its design, its layout, the sound/smell / visual atmosphere), the objects found there, or the employees themselves (specific clothes, for example). The brand Abercrombie & Fitch , for example, became famous for the olfactory and sound ambiance of its sales outlets. Its employees, chosen for their “visual” qualities, worked shirtless.
The brand Archiduchesse sends its products accompanied by some “goodies” (candies, stickers, key rings)
If we immediately think of the attributes of the sales outlet, we must not forget the digital space. Online reviews are now part of the “proof” that the customer integrates before making a decision. The delivery can also be an important moment to comfort the customer in his choice. In this article , we have given 3 examples of companies that use delivery as an emotional touchpoint with the customer: the wine estate Le Cazal that adds a sprig of wild thyme to its deliveries, Coolblue that sends a personalized postcard, and Archiduchesse that completes its orders with some “goodies.”
Case study: analysis of Ryanair’s marketing mix
In this research we propose to analyze the marketing mix of Ryanair, the Irish low-cost airline which is today the n°1 airline in Europe .
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McDonald’s Marketing Mix (4P) Analysis
McDonald’s marketing mix (4Ps) involves approaches that meet business objectives in different markets around the world. The marketing mix defines the strategies and tactics that the fast-food restaurant company uses to reach target customers, in terms of products, place, promotion, and price (the 4P). In this business analysis case, McDonald’s has corporate standards that its marketing mix applies globally. For example, the company’s standards for productivity are implemented in the management of each company-owned and franchised location. McDonald’s also applies some variations in its marketing mix to suit the conditions of local or regional markets. For instance, the food-service company’s promotion strategies and tactics focus on online media in some countries, while television advertising is prioritized in other markets. The specifics of the 4P variables define the strategies and tactics that McDonald’s uses in executing its marketing plan and achieving related marketing strategy goals to grow the multinational restaurant chain business.
McDonald’s effectiveness in implementing its marketing mix contributes to the leading performance of its brand and business in the international fast-food restaurant industry. The company’s strategic management considers how its 4Ps relate to the marketing strategies of competitors, like Burger King , Wendy’s , Dunkin’, and Subway, as well as other food-service firms that compete with McCafé, such as Starbucks Coffee Company . McDonald’s marketing mix facilitates effective reach to target customers around the world. This condition supports the company’s global industry position, as well as the strength of its brand, despite the strong force of competitive rivalry shown in the Five Forces analysis of McDonald’s Corporation .
McDonald’s Products
As a food-service business, McDonald’s has a product mix composed mainly of food and beverage products. This element of the marketing mix covers the organizational outputs (goods and services) that the company provides to its target markets. McDonald’s product mix has the following main product lines:
- Hamburgers and sandwiches
- Chicken and fish
- Snacks and sides
- Desserts and shakes
- Breakfast/All-day breakfast
Among the 4Ps, products are a fundamental determinant of McDonald’s brand and corporate image. The company is primarily known for its burgers and fries. However, the business gradually expands its product mix. At present, customers can purchase other products, like chicken and fish, desserts, and breakfast meals. McDonald’s generic competitive strategy and intensive growth strategies influence the product lines included in this element of the marketing mix. In diversifying its product lines, the fast-food chain satisfies market demand and improves its revenues. In terms of risk, a more diverse product mix reduces the company’s dependence on just one or a few food-service 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 Mix
This element of the marketing mix enumerates the venues or locations where products are offered and where customers can access them. In McDonald’s marketing strategy, restaurants are the most prominent places where the company’s products are distributed. However, the fast-food company’s distribution strategy utilizes various places as part of this 4P variable. The main places or channels through which McDonald’s distributes its products are as follows:
- Restaurants
- McDonald’s websites and mobile apps
- Postmates website and app, and others
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 sundae and other desserts. Some kiosks are temporary, as in the case 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 food 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 strategic goals based on McDonald’s mission statement and vision statement , especially in serving more customers around the world.
McDonald’s Promotion
This element of the marketing mix defines the tactics that the food-service business uses to communicate with customers. Among the 4Ps, this variable focuses on marketing communications with target customers. For example, the company’s marketing strategy provides new information to persuade consumers to purchase its new food 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 promotion tactics in McDonald’s marketing strategy. 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, freebies, and special deals and offers for certain products and product bundles, as a way of attracting more consumers. In addition, the company’s marketing mix involves public relations to promote the fast-food 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’s promotional mix 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 promoting its products. The brand and other business competitive advantages specified in the SWOT analysis of McDonald’s contribute to the effectiveness of promotional activities in this marketing mix element.
Price in McDonald’s 4Ps
This 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. In its 4P, McDonald’s uses a combination of the following pricing strategies:
- Bundle pricing strategy
- Psychological pricing strategy
In the bundle pricing strategy, McDonald’s offers meal sets and other product bundles for prices that are discounted, compared to purchasing each item separately. For example, customers can purchase a Happy Meal to optimize cost and product value. On the other hand, in psychological pricing, the company uses prices that appear more affordable, such as $__.99 for a meal instead of rounding it off to the nearest dollar. This pricing strategy encourages consumers to purchase the company’s food 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. The cost objectives, requirements, and limits in McDonald’s operations management account for the price points in this marketing mix.
- Eze, F. J., Inyang, I. B., & James, E. E. (2024). Standardization versus adaptation of marketing mix in international markets: A systematic literature review. World Journal of Advanced Research and Reviews, 22 (2), 1192-1212.
- McDonald’s Corporation – Exclusive Deals .
- McDonald’s Corporation – Form 10-K .
- McDonald’s Corporation – Full Food Menu .
- McDonald’s Corporation – Mobile Ordering .
- U.S. Department of Agriculture – Economic Research Service – Food Service Industry Market Segments .
- Wang, X. S., Bendle, N., & Pan, Y. (2024). Beyond text: Marketing strategy in a world turned upside down. Journal of the Academy of Marketing Science , 1-16.
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Apple Marketing Mix Case Study
From one juggernaut to another, now we will describe Apple’s marketing mix according to product , price , promotion, and place.
Table of Contents
Apple’s product mix is mostly confined to consumer electronics and online services. As is the case with Amazon, however, Apple is expanding into other industries.
The current product mix consists of:
- Wearables, Home, and Accessories – such as Apple TV and Apple Watch.
- Advertising.
- Digital Content.
- Payment Services, and
- Cloud Services.
Most of these products form part of the Apple ecosystem that supports the company’s competitive advantage and makes each product more attractive to consumers.
In other words, Apple products sync with each other so consumers can easily copy media and other preferences across multiple devices.
Apple’s pricing strategy relies on product differentiation. With a proven track record of innovation and stable consumer demand, the company has power over its pricing .
New product launches are invariably hyped, which means Apple can focus on selling its products for a premium price instead of increasing unit volume.
The company also designates a minimum advertised price (MAP) to prevent retailers from selling its products below a certain amount.
This protects profits and, to some extent, increases the brand ’s prestige and the desirability.
Apple also utilizes price skimming.
This involves setting a much higher price for new model releases before gradually lowering it over time as each model is superseded.
Apple’s ability to market and promote its products is almost as legendary as its ability to innovate. Its marketing strategies focus on the power of simplicity in product form and function.
Simplicity can also be seen in the way that Apple structures the ads themselves.
They tend to be “to the point” and do not contain irrelevant information while still making an emotional connection with the target audience.
The company also loves to mention its superior user experience, whether that be its immersive product ecosystem or the professional customer service and visual layout of an Apple store.
In terms of building its brand organically, Apple relies on positive review building and subtle product placement in movies.
The company also markets its new products via traditional channels such as television, billboards, and print media.
But in line with its pricing strategy , Apple products are never promoted on sale or as part of a limited-time offer.
Apple utilizes multiple avenues to reach customers and make its product more visible on the global stage. These include:
- Apple stores – these stores embody the Apple brand and are placed in strategic locations with high foot traffic. Stores are designed in such a way that consumers can freely interact with demo products and Apple support staff. There are now approximately 518 stores in 25 countries around the world .
- Online stores – for those who prefer to order their products online or do not have access to an Apple store nearby.
- Retailers – countless retail businesses are also authorized to sell Apple products and services. These include many consumer electronics retailers, telecommunications companies, and department stores.
- Authorized enterprise resellers – these entities provide procurement, deployment, app development, and other services that help enterprises incorporate Apple products within their organizations.
Read Next: Marketing Mix , Apple Business Model
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The concept of “marketing mix” refers to a business’s foundation model, which has traditionally focused on product, pricing, place, and promotion. The marketing mix is described as a collection of marketing techniques that a company uses to achieve its marketing objectives in a target market.
Coca-Cola’s marketing mix or 4P (Product, Price, Place, and Promotion) involves competitively priced beverages that are promoted and distributed through various channels.
Understanding the marketing mix is crucial for crafting effective business strategies. At Business Case Studies, our detailed exploration of the marketing mix provides valuable insights into how businesses can leverage product, price, place, and promotion to achieve marketing success.
This article explains the difference between 4P and 7P, explains each facet of the marketing mix with numerous examples, and ends with a detailed case study. To go even further, we suggest you consult our online resource, where we detail and illustrate all the factors to study for each of the 7Ps.
Netflix’s marketing mix establishes strategic decisions for the company’s products, prices, places, and promotion (the 4Ps). The company’s effective development and implementation of the 4P ensure profitable operations in the global market for entertainment and streaming services.
The marketing mix defines the strategies and tactics that the fast-food restaurant company uses to reach target customers, in terms of products, place, promotion, and price (the 4P). In this business analysis case, McDonald’s has corporate standards that its marketing mix applies globally.
Amazon’s marketing strategy aims to create a seamless shopping experience, increase customer loyalty, and expand its market share. It revolves around customer satisfaction through data-driven decision-making. This approach has helped Amazon maintain a competitive edge and achieve sustained growth.
The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing: price, product, promotion, and place.
Apple’s ability to market and promote its products is almost as legendary as its ability to innovate. Its marketing strategies focus on the power of simplicity in product form and function. Simplicity can also be seen in the way that Apple structures the ads themselves.
There are 7 components to it – Price, product, promotion, place, people, process, and physical evidence. Together they make up a marketing mix. Ikea is known to sell a wide range of products ( goods and services) that cater to a large segment of consumers.