McKinsey & Company Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of McKinsey & Company through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
McKinsey & Company Product Strategy:
McKinsey is one of the top four management consulting firms, having offices all across the world. McKinsey offers consulting services in its marketing mix to diverse fields. They are into almost all sectors like airspace, oil, finance, marketing, media, travel, pharmaceuticals, mining, metals, chemicals, power, electronics, electrical, forest, retail etc. McKinsey consulting involves solving problems for the clients. These problems relate to the businesses and hence the objective of the firm’s consultants is to come up with solutions which are cost effective and sustainable so as to make a business profitable. This is done by extensive research of the sectors in which the problem relates to and knowledge base is increased and developed on a real-time basis.
Image: company website
This concludes the product strategy in McKinsey & Company marketing mix & strategy.
McKinsey & Company Price/Pricing Strategy:
Below is the pricing strategy in McKinsey & Company marketing mix strategy:
McKinsey is a top-class firm and offers services in diverse sectors. Because of its quality of service and brand value coupled with the high-profile clients that it works with it charges a premium for its services.
Thus, the pricing strategy in its marketing mix is called premium pricing strategy. The clients don’t mind paying that as they trust the firm and its employees as long as their problem is solved. New undergraduate consultants of McKinsey are paid around 80000 dollars a year whereas for senior consultants and top management the pay is as high as 1-3 million dollars a year. McKinsey employees sometimes have higher earnings than the clients’ net revenues.
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McKinsey & Company Place & Distribution Strategy:
Following is the distribution strategy in the McKinsey & Company marketing mix:
McKinsey consultancy services are provided by the consultants who are available at the offices of the company. It is currently in 120 plus locations and covers a vast number of geographical areas to offer their services. There are more than 22000 employees in McKinsey. The consultants need to sometimes travel extensively to meet their clients and hence there is a great amount of flexibility in the offering of the service.
The meetings are usually with clients who form the top management of their organizations and hence are held at high profile places.
McKinsey & Company Promotion & Advertising Strategy:
The promotional and advertising strategy in the McKinsey & Company marketing mix is as follows:
McKinsey does not need to promote itself as its position has already been established in the market as the best consulting firm. But even before it acquired this position it always maintained a low profile. It never wanted to advertise its service nor did it want to disclose its clients. McKinsey have always been working silently in the background and still have managed to be at the top. Although the website of the company may highlight its services it does not call out to the internet users to come visit their site.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of McKinsey.
People:
McKinsey hires fresh business graduates from top education institutes like Harvard, Stanford, IIMS, MIT etc. They have the ‘up or out’ policy which means that the consultants who don’t get promoted have to leave the organization. Therefore, every year around one fifth of the consultants are let off. The organizational culture is therefore extremely competitive having the brightest minds of the world. The structure is flat with every consultant having a mentor. Most of McKinsey consultants are so qualified that they eventually take up high positions in top organizations or Government organizations as decision makers according to research.
Process:
McKinsey has several business processes for ease of doing business. The process involves right from getting an appointment with the consultants to the point where the project is completed. The consultants are usually people who have expertise in that particular field where the client has his or her business. McKinsey consultants do extensive research of the sector of the particular geography using data analytics, insight analysis, and other research tools to come up with a result. From that they come up with a strategy. All this involves several iterations and meetings with the clients until the final feasible solution is obtained. Hence this concludes the McKinsey marketing mix.
Physical Evidence:
McKinsey offices are in locations which are upscale. The physical evidence consists of the office ambience and location and hence these two aspects form the primary image of the organization as perceived by the clients. The other aspect is the way the consultants offer the service. Right from the first meeting till the last their behavior and the quality of the consulting form the major part of the physical evidence. The McKinsey website is also very sophisticated one with the kind of user interface it has it clearly shows the precision and class of the organization. All these factors together form the physical evidence.
About McKinsey & Company:
McKinsey and Company is a consulting firm which was founded by James O McKinsey in the year 1926. Marvin Bower has also been credited for creating the organizational structure of the firm. It is considered to be the best consulting firm in the world by experts and the most prestigious to work in. It was the first firm to hire fresh college graduates from top institutes. McKinsey as of the financial year 2016-17 generated 8.4 billion USD in revenue. It is headquartered in New York and is also present in 120 other locations offering consulting services globally.
McKinsey has 22000 plus employees in all. It faces competition from firms like Boston Consulting Group and Bain and Company.
Browse marketing strategy and 4Ps analysis of more brands similar to McKinsey & Company. The Marketing Mix & Strategy section covers 4Ps and 7Ps of more than 800 brands in 2 categories.
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