The Promotional Mix Explained | McDonald's Examples

Summary

This video explains the five key techniques of the promotional mix used by businesses like McDonald's to boost sales and brand awareness. The techniques discussed include advertising (via traditional and digital platforms), sales promotions (such as limited-time offers and contests), direct marketing (email campaigns targeting customers), public relations (managing brand image through media and community involvement), and personal selling (upselling at the point of sale and through self-service kiosks). McDonald’s effectively integrates these strategies to maintain market dominance and connect with customers.

Takeaways

• 😀 McDonald's uses a variety of promotional techniques to increase sales and brand awareness.
• 😀 Advertising is a key part of McDonald's promotional mix, with a significant investment in TV, radio, billboards, and digital platforms like Facebook and YouTube.
• 😀 In 2020, McDonald's spent over $600 million on advertising to reach a broad audience.
• 😀 Sales promotions at McDonald's include time-sensitive offers like 'Buy One, Get One Free' and the famous Monopoly giveaway.
• 😀 McDonald's Monopoly promotion encourages repeat purchases, as customers seek to win prizes like free food and discounts.
• 😀 Direct marketing through email is an effective way for McDonald's to send personalized offers and seasonal promotions to its customers.
• 😀 McDonald's public relations efforts focus on improving their image by supporting charitable causes and sponsoring sporting events.
• 😀 Despite past criticism over health concerns, McDonald's tries to manage its PR by highlighting positive community work through the Ronald McDonald Foundation.
• 😀 Personal selling at McDonald's is subtle but effective, with upselling at the counter and through self-service kiosks.
• 😀 Self-service kiosks have been particularly successful at increasing customer spend, with research showing a 20% increase in average orders.
• 😀 McDonald's uses a combination of advertising, sales promotions, direct marketing, PR, and personal selling to create a comprehensive promotional mix that drives customer engagement and sales.

Q & A

What is the promotional mix and why is it important for businesses?

The promotional mix refers to the various promotional techniques a business uses to communicate with its target audience. It helps increase sales and awareness of the business and its products by selecting the most effective methods of communication.

How does McDonald's use advertising as part of its promotional mix?

McDonald's uses advertising through both traditional methods (TV, radio, newspapers, billboards) and digital platforms (social media, YouTube, Google search). In 2020, McDonald's spent over 600 million dollars on advertising to reach a wide audience and promote their products.

What are sales promotions, and how does McDonald's apply them?

Sales promotions are short-term incentives designed to encourage customers to purchase a product or service, often through offers like discounts or coupons. McDonald's applies this through promotions like the Monopoly giveaway, where customers receive stickers with their meal, offering chances to win prizes like free food or discounts.

How does McDonald's use direct marketing in its promotional strategy?

McDonald's uses direct marketing, particularly email campaigns, to target customers with special offers, seasonal menu items, and promotions. These emails are tailored to individual preferences and past purchases to increase customer engagement and drive sales.

What role does public relations (PR) play in McDonald's promotional mix?

Public relations (PR) helps build and maintain the relationship between McDonald's and the public. McDonald's uses PR to improve its image, particularly through initiatives like the Ronald McDonald Foundation, as well as sponsoring high-profile events. They also address negative press by focusing on their community work and food quality improvements.

What are the challenges McDonald's faces in public relations?

McDonald's has faced criticism regarding health concerns related to its food, especially linked to rising obesity rates. The documentary 'Supersize Me' and various lawsuits have intensified these concerns. However, McDonald's counters this negative narrative by focusing on positive stories, such as their community outreach and food quality efforts.

What is personal selling, and how does McDonald's use it?

Personal selling involves direct interaction between a salesperson and a customer with the goal of influencing a purchase decision. While McDonald's does not heavily rely on traditional personal selling, they use it subtly at the point of sale by upselling items, such as encouraging customers to make their meal a combo or to 'go large'.

How do McDonald's self-service kiosks contribute to personal selling?

McDonald's self-service kiosks engage in upselling, similar to personal selling, by prompting customers to upgrade meals or add extra items to their orders. Research suggests that customers tend to spend 20% more when ordering through kiosks compared to face-to-face orders, which boosts McDonald's revenue.

What are the key promotional techniques used in the promotional mix?

The five key promotional techniques are: advertising, sales promotion, direct marketing, public relations (PR), and personal selling. These techniques work together to increase sales, enhance brand awareness, and maintain positive customer relations.

How does McDonald's use its promotional mix to remain successful?

McDonald's effectively uses all five promotional techniques to maintain its success. Advertising and sales promotions boost visibility and customer engagement, direct marketing targets individual customers with personalized offers, PR helps manage the brand's public image, and personal selling at the point of sale or through kiosks drives additional purchases, contributing to increased profits.