Characteristics Of A Marketing Oriented Company Marketing Essay
|✅ Paper Type: Free Essay||✅ Subject: Marketing|
|✅ Wordcount: 3790 words||✅ Published: 1st Jan 2015|
In the above figure, we can see that even though the definitions given by both Chartered Institute of Marketing and Kotler are different but the underlying message is the same- Consumer satisfaction through fulfilling their requirements and also provide profit.
1.2 Characteristics of a marketing oriented company
In this section we will cover the distinctive characteristics of a marketing oriented company. In today’s global market, the success of the marketing oriented company depends on the marketing approach. The most important characteristics of a marketing oriented business are there goal to achieve consumer satisfaction and be to the lead of the challengers. Company based on marketing function and aim to draw as many customers as possible as the customer’s are the soul of their business.
There are four different distinct characteristics of marketing oriented companies (which are combination of the organisation values, organization strategy and all the stake holders of the business) have been listed below:
Marketing oriented companies focus mainly on the quality of there products and the satisfaction of there customers.
Marketing oriented companies make sure that the management levels are not too complicated and the structure is very simple with very few levels.
Marketing oriented companies mainly work on a strategy which on a long term basis, adjustable and any one can give opinions for changes in it.
Marketing oriented companies think about the stake holder’s prospects before taking any decisions pertaining to business.
1.3 Essential elements of the marketing concept
In this section we will highlight the essential elements of the marketing concept. Marketing concept focuses in the following four elements:
Customer direction: Every business should understand the target consumer and based on that develop good quality products for customer satisfaction. Company should not only understand the current need and value of the consumer but work on developing it in future.
Challenger’s direction: Company should not forget to check on there business competitors also. They should always investigate to find out the methods used by them to attract the customers. They should try to target there short term based strategies and develop own strategy to tackle the business challengers.
Co-ordination between the functions of organisation: Developing value in the customer through perfect marketing strategy is not just the responsibility if the marketing manager. It’s the responsibility of all the people in the business to co-ordinate with each other and help in increasing business value in the customer.
Profits earning: Just by giving what the consumer requires and of appropriate quality increases the value and number of the customers in the business. This adds to increasing profits and aiding in business achieving there aims.
1.4 Cost/benefit analysis of a marketing approach of Coca Cola
What exactly do we understand and get from Cost-benefit analysis. In simple terms its to determine whether the proposed action will have a good or bad result. Cost-benefit analysis can be performed in any field. Cost-benefit analysis help to find out all the possible hidden benefits and the negatives of the new approach take n up by the business.
In this section we will try to do a cost-benefit analysis of the development of a new machine that can help in production by Coca-cola. Out of all the marketing approaches, the main focus point for Coca Cola should be managing the sales request of the customers.
For example, if the Sales manager of Coca Cola wants to start a new sales managing center in a developing country like India or Bangladesh, he needs to get new technologies like computers. He needs to make sure that the staff members are well versed with the software technologies.
Let’s take the cost benefit analysis involved in this process:
15 computers with additional software’s at $3,450 individually
2 servers at $7,500
5 printers at $4,200 each
Cables and install process at $3,600
Software aiding in sales at $25,000
Training the staff members
Introduction to computers – 10 people at $300 per person
Keyboard training – 10 people at $500 per person
Sales technologies – 15 people at $900 per person
Additional costs involved
Time lost: 30 people/days at $250 per day
Sales lost due to interference: $25,000
Total cost: $70,700
Sales capacity: expected at $45,000 per year
Capability to keep up to the sales promotions: expected at $25,000 per year
Competence and dependability: estimated at $60,000 per year
Consumer service and staff retention: estimated at $40,000 per year
Accurate consumer information availability: estimated at $20,000 per year
Capability to handle additional sales: $40,000 per year
Total cost: $23, 00, 00
Payback time: $70,700/$23, 00, 00= 0.30 of a year
Task 2: Concepts of Segmentation, Targeting and Positioning
2.1 Macro and micro environmental factors
There are many factors which can have an affect on the marketing decisions. These factors have been categorized as Macro environmental factor and Micro environmental factors.
Macro environmental factors: Macro environmental factors are those essentials on which the business has no control and it can have effect on business anytime. The main factors have been listed below:
Micro environmental factors: Micro environmental factors are those essentials on which the business has control and the information can be retrieved and later utilized to develop and gain profit from the business. The main factors have been listed below:
Now we will analyse as to how these factors can affect Coca-Cola’s marketing in the up coming world cup.
Coca-Cola’s marketing can be highly affected by the external factors termed as the Macro environmental factors. As discussed earlier Coca-cola has no control over these factors. As far as the Consumer sector is considered, the increase in business depends on the consumption of the product by the people. Reduction in the customer has affected a lot. Finance can also become a strong reason, like increase in tax rate in South Africa can reduce the consumption of the drink. Increase in the prices can affect the company as the employees themselves may demand hid salary. Natural reasons are main factor which can affect not only Coca-Cola but any business marketing. Coca-Cola is a customer relying business and if the nature is not ok, then the customer will not travel to South Africa for the World cup. By implementing new technologies, Coca-cola can try and produce new products in the market for profits. Some time the same only product doesn’t attract crowds. Political reasons also affect the marketing as the government wants to make sure that the people of the country are healthy and sound.
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Coca-Cola’s marketing also can be affected by some internal factors even though these factors are within there control. We are talking about the Micro environmental factors. Factors like Organisation, Traders, Challengers, Communal, Marketing mediators opinions can be marketing affective. Employee within the organisation can create differences. If the buyers of the product are no longer interested to market the product the production can do into a huge loss. As far the other factor which can be a serious problem is from the competitors in the market. Increase in the quality and quantity of products given by other companies can affect Coca-Cola. Coca-Cola needs to always keep in mind that there business is running only due to consumer hence to satisfy the customer is the main priority for them.
2.2 Coca-Cola segmentation criteria
In this section we will highlight two segmentation criteria that coca-cola can opt to utilize for there two products in different markets. Segmentation helps the companies to identify the markets they want to target and satisfy the customers. Market segmentation help the companies to better understand the needs of their customers. The coca-cola company will be considering two segments for there two products:
Demographic in Customers segment
Location in Industrial segment
Customer segment comes into picture when Coca-cola is trying to develop new soft drinks of fruit juices. Coca-Cola will need to develop depending on the different factors:
Size of family etc
Depending on the customer’s coming under a certain category, this segmentation can be applied. Consumers are the main point of focus in customer’s segment.
Industrial segment consist of lesser number of companies or industries but huge quantity of the product. These can have dealer and resellers involved. If we take into account the location, then it plays a very important part as the company needs to be aware of the possible competitors in that location. For example Coca Cola’s tried to trade there new product Dasani bottled water in the United Kingdom, but this marketing became a flop as they were competing against the “purified tap water” in conjunction with mineral water of other brands. This issue cropped up due to some scandal started in the media pertaining to the contaminated water.
2.3 Factors affecting Coca-Cola’s choice of targeting strategy
This section will highlight the factors which can have an affect on Coca Cola’s selection of targeting strategy during the World cup. Some of the factors have been listed below:
Consumer requirement range: As World cup is one of the biggest sport event, the choice and range of customer product requirements will be diverse. Coca cola will have to be prepared for all these requirements of the customer to keep up to there brand name and business.
Competitors: Coca cola will have to keep in mind all the competitors in the market during the world cup and develop strategy to get there product on high demand.
Sales and profits: Coca cola will have to make sure that the sales of there products during the world cup are huge which covers all the expenses involved on the product marketing and also get profit for the company.
2.4 Affect of buyer behaviour on marketing activities of Coca-Cola
Buyer behaviour can affect the marketing activities of Coca-Cola in varieties of buying situations during the World Cup. In this section we will see how buyers behaviour can affect coca cola marketing in below two situation
Buyers behaviour is completely depended on how there needs are met and in what quality and quantity. Understanding the customer can help a lot in understanding there purchase behaviour. In order for customers to purchase Coca cola during the world cup, they will want to check on the quality and the supplier of other soft drinks available. Coca cola needs to understand the need of the customer and plan the marketing strategy accordingly. In order to coca cola to have the business deals during world cup, they need to develop all the specification and search for all possible suppliers available to get there product reach the dealers on time. Businesses will first evaluate the quality of the product and then depending on that be ready to purchase the drink.
In both the cases marketing of Coca Cola is highly dependant on the companies as well as the consumers.
Task 3: The Extended Marketing Mix
3.1 Development of products by Coca-Cola
In this section we will see how Coca Cola develops its products to sustain competitive advantage over its rivals in the market. In order for any business to succeed through strategy, it should be sustainable. In order to have an advantage, business should e ready to face challenges from other companies as well as changes in the business environment. In order to be competitive, companies needs to get new technologies as the customer choices changes. Business makes sure that there every product is copyright protected and no other rivals are able to copy the essence of the item.
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Coca Cola is one brand name that has been always trusted by the customers as well the companies. Coca cola has been working on offering products to customer in competitive and affordable cost. Company has been able to adjust to ever changing market needs and be a winner over other rivals. Company has been adapting to various new technologies and working on continues development to be competitive in the market. Company has developed it capabilities and now offers products in different ranges like soft drinks to mineral water etc.
3.2 Coca-Cola’s distribution of products
This section deals with the distribution methods that be utilized by Coca cola for there customers in World cup. Distribution is one the important aspects of the marketing mix. Development of an appropriate distribution system can help Coca Cola to get the products available to there customers on time.
In order for Coca Cola to meet there customers requirement, they need to outsource there distributions responsibility to as many retailer as possible. Coca Cola can offer discounts on the different range of products they are offering during this World cup. Coca Cola can get into collaboration with other companies during the world cup to share the distribution for customer’s convenience.
3.3 Price setting by Coca-Cola
Coca Cola believes in the investment which deals in completing the short term commitments and on the other hand helps in achieving the long term goal of the company. This section will highlight how Coca cola sets the prices on the products. Coca cola products are considered to be more costly when compared to other brands due to extra shelf life. Coca cola sets the prices of its products depending on the expensed pre and post production of the item (which even includes the promotional expenses). Coca cola increase the prices of its products during summer as consumer and other company’s will tend to purchase it at any cost and the when winter falls, coca cola reduces the prices of the products to compensate the pricing. Coca cola create a valuable image of the product among the consumer and then set the price appropriately.
3.4 Coca-Cola promotional activity
We will now demonstrate as to how the Coca Cola’s promotional activity can be incorporated to achieve its marketing objectives. Coca Cola is a worldwide famous company which is most famous for its soft drinks. Before we can check on the promotional activity of Coca Cola, we will cover the company’s objectives:
Market share objective
Objective for survival
Objective for growth
Promotional activity will aid in the achievement of company’s objective if promotion.
Ideas for promotions:
Coca Cola mainly do there promotion of products from Posters, Flyers, Brochures and advertisements. These promotional activities are very important as it helps to generate awareness in the consumers as well as the dealers. Coca Cola can take part is more charitable organisations and functions and sports events to generate awareness about there products. They can also start advertising on Radios and televisions. Through the promotional activity customers becomes more aware about there product and its quality hence get interested to purchase it.
As we know promotion is one of the elements of the marketing, which results in proper location setting, price setting of the product and the chances of increasing customer service.
3.5 Extended marketing mix in relation to Coca-Cola marketing activity
In this section we will analyse how the additional elements of the extended marketing mix in relation to Coca-Cola marketing activity for the World Cup. As if now we have seen that there are four main elements of marketing mix namely, product, price, place and promotion. In this section we will deal with Physical layout, the provision of consumer service and process.
We will first analyse the physical layout. Coca Cola needs to make sure that the physical appearance of the store and the websites, everything attract the consumers during the world cup. The Store needs to be clean and the arrangement of product should be appropriately done so that the customer can find the required item easily. Now if we take the provision of service to the customers, this becomes the most important area of focus. As this is World cup consumer will be available out of counts in thousands and appropriate customer service will be needed at this point of time. Customers will be always with the company which can serve them well all the time. Now the process that is involved in the customer service, Just by providing service the consumer won’t be happy, Coca Cola, they need to have staff who can address there complaints at the right time. Coca Cola can put up a complaint room during the world cup. They can set up another counter which handles customer’s orders, understands the required product needed by the customer and deliver them on time.
Task 4: The Marketing Mix, Different Marketing Segments and Contexts
4.1 Marketing mixes
In this section we will analyse the marketing mixes for two different segments in consumer markets for Coca-Cola products. There are four elements in marketing mixes
The two segments that we will be analyzed in this section under consumer markets are Geographic segmentation and Demographic segmentation.
If we take the Geographic segmentation, its segmented based on the population, weather conditions and type of region and kind of crowd (village or city). When we take the marketing mix in this segmentation, it will totally depends on how the product should be manufactured based on the population and the availability of the location. Pricing will depend on the usage among the crowd and promotional activity will be depended on the class the people live in.
But we take the Demographic segmentation; the segmentation is based on many factors like sex, age, Income and occupation of the person etc. The marketing mix in this segment has to be very extensive as it targets not just one kind of crowd but people depending and divided based on many factors. Product manufacture will depend on as to how many customers will purchase that. As there are many divisions in this segments, pricing can have a lot of variations, depending on the age group and product usage. Promotion and place will not be an issue as lot of mass has to be covered in this segment.
4.2 Marketing products and services to organisations and consumers
In this section we will see as to how marketing products and services to organisation are related to marketing products and services to customers. Even though it may sound similar but the marketing of products to company and than to customers has lot of differences.
These marketing strategies are developed to tackle different set of people.
When we take the marketing of product and service to organisations in account, it deals with the staff members of the organisation and the respective departments. Whereas when it comes to customer’s marketing is mainly depended on the demographic segmentation.
Organisation looks out for hard proof and documents explaining the quality of the product and service offered whereas customers look at the promotional activity and get attracted to get the product or required service.
In organisation, marketing will completely depends on the outcome of the product and when it comes to customers, they will somehow get attracted to the item.
Organisations don’t get carried away by the promotional activity of the product but believe on the hard data whereas customer needs media activity for developing awareness about the product.
4.3 Coca-Cola international marketing and domestic marketing
In this section we will compare the international marketing and domestic marketing of Coca Cola products. International marketing deals with marketing of the company’s product outside in the foreign market whereas domestic marketing deals with marketing within the limitations of the original country.
In Domestic marketing Coca cola has to concentrate only on the local competitors whereas when it comes to international marketing, the rivals are global and the scope is very wide.
Coca cola can develop different products depending on the local people in domestic marketing but International marketing demands development of products on international standards.
All the decisions pertaining to the business are made at the company’s head quarter in the home country but in the Internal marketing mix, the decisions are taken at the difference offices launched in the particular country (reporting still remains at the main head office in home country).
All the elements of the marketing mix are not utilized in the domestic marketing when compared to international marketing.
For the domestic marketing coca cola just needs to perform a local promotion through brochures, posters etc but for international marketing, Coca cola needs to get involved in different events like sports (World cup) and campaign for charity.
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