Marketing Mis.docx

8/12/2019 Marketing Mis.docx

1/32

TASK 1

a. As the Marketing Manager of Coca-Cola in the UK, compare the various alternative

definitions of marketing and indentify the main characteristics of marketing oriented

organization.

As per the Manager of marketing in the organization of Coca-Cola in UK, Marketing academics

and practitioners have spent a great deal of time on defining the discipline of marketing and

measuring its performance.1

Obviously, the job of marketing is not well understood by managers from any discipline,

including marketing. If it is ever to rise to the level of discipline, like finance or engineering, its

practitioners must establish a clear, precise, and measurable definition that expresses its financial

accountability. This paper suggests such a model in hopes of taking even a small step toward the

day when Marketing is broadly respected as an important and valuable professional discpline. 2

Marketing is the process of creating the hedonic value that, in conjunction with products and

services, is a component of the organization's value exchange.

Marketing is to establish, develop and commercialise long-term customer relationships, so that

the objectives of the parties involved are met. This is done by a mutual exchange and keeping of

promises. Marketing is a mediated activity occurring within the economic sphere that employs

strategies intentionally rendered and goal-oriented towards the exchange of goods and services.

Marketing is the process of planning and executing the conception, pricing, promotion, and

distribution of ideas, goods, and services to create exchanges that satisfy individual and

organizational goals.3

1http://www.articlesbase.com/marketing-articles/the-need-for-an-adequate-definition-of-marketing-

3619781.html#ixzz1AzuEIY00

2Article: The Need for an Adequate Definition of Marketing, (adapted from a paper originally published in March,

2001)

3American Marketing Association
http://www.articlesbase.com/marketing-articles/the-need-for-an-adequate-definition-of-marketing-3619781.html#ixzz1AzuEIY00http://www.articlesbase.com/marketing-articles/the-need-for-an-adequate-definition-of-marketing-3619781.html#ixzz1AzuEIY00http://www.articlesbase.com/marketing-articles/the-need-for-an-adequate-definition-of-marketing-3619781.html#ixzz1AzuEIY00http://www.articlesbase.com/marketing-articles/the-need-for-an-adequate-definition-of-marketing-3619781.html#ixzz1AzuEIY00http://www.articlesbase.com/marketing-articles/the-need-for-an-adequate-definition-of-marketing-3619781.html#ixzz1AzuEIY00


2/32

Marketing consists of all activities designed to generate and facilitate any exchange intended to

satisfy human needs or wants.4

When people hear sales and market they equate it to sales and marketingand the unfortunate

contention that often seems to exist between the two. Before we go down the path of sales versusmarketing, lets take a look at the characteristics of each type of orientation.

5

Market-Oriented Characteristics:

Consumers/Customers less willing to be persuaded;

Consumers/customers are knowledgeable about the market and the products/services

available;

Companies identify what customers want and tailor all business towards thosewants/needs (in an efficient manner);

Marketing vs. just selling (i.e. management of the 4 Ps, not just promotions);

Offers mass customization;

Product input before selling (Alpha testing, beta testing, trials, etc); and

Long-term vs. short-term planning.

4Sommers, Montrose, James Barnes, William Stanton, and Charles Futrell, (1989) Fundamentals of Marketing. 5th

Canadian Ed., McGraw-Hill Ryerson, 4.5http://www.theharteofmarketing.com/2010/02/integrated-marketing-sales-and-market-oriented.html


3/32

b. Would you say the sponsorship of the event is a market oriented organization or not?

Adduce reasons for your answer.

Event, or community, sponsorship allows organizations to reach their target market with less

clutter than other communications methods, exposes the product/service directly to the market,

and provides an excellent mechanism for the organization to give back to the community by

which it is supported. Event sponsorship, or sponsorship marketing, refers to supporting various

types of event ranging from local Little League teams, educational partnerships, and health fairs,

to college basketball teams, around-the-world sail boat races, professional auto racing, and even

to the Olympic Games. Sponsorship varies widely in a number of aspects including event type,

dollar expenditure, extent of professional planning and objectives, number and type of

participants, media exposure, and geographic context. Whether the type of sponsorship is

financial, media, or in-kind support (Cicora 1991), the list of company benefits derived from it

can range from publicity, to product sales, image enhancement, or even improved employee

morale (Decker 1991). Many organizations are now investing in sponsorships of the arts and

education to enhance their corporate image. Sporting events, however, continue to be the biggest

draw. 6

Although a great deal of the literature regarding sponsorship focuses on large corporations and

international events, potential benefits for small businesses sponsoring small local and regional

events are also impressive. Many small events are less likely to receive corporate funding and are

more dependent upon local and regional organizations for support. Similarly, small businesses

often cannot afford to sponsor large events. The community identity available from partnerships

between local events and local and regional small businesses can offer small businesses major

opportunities in terms of community relations, marketing objectives, and employee relations

(employees are often involved in these events as community members). While large international

corporations may need the media reach of an international event to achieve their objectives, the

6Event Sponsorship: An Exploratory Study of Small Business Objectives, Practices, and Perceptions Journal article

by Rhonda Walker Mack; Journal of Small Business Management, Vol. 37, 1999


4/32

proper partnering of smaller businesses and events may achieve those same objectives on a

smaller scale within the resources of both organizations involved.

Regardless of the type or level of sponsorship, more companies have begun to take their

sponsorship decisions seriously.7

7

http://www.questia.com/googleScholar.qst;jsessionid=46CA9C27B8572092C339BCF36487867E.inst2_1b?docId=5

001285464
http://www.questia.com/googleScholar.qst;jsessionid=46CA9C27B8572092C339BCF36487867E.inst2_1b?docId=5001285464http://www.questia.com/googleScholar.qst;jsessionid=46CA9C27B8572092C339BCF36487867E.inst2_1b?docId=5001285464http://www.questia.com/googleScholar.qst;jsessionid=46CA9C27B8572092C339BCF36487867E.inst2_1b?docId=5001285464http://www.questia.com/googleScholar.qst;jsessionid=46CA9C27B8572092C339BCF36487867E.inst2_1b?docId=5001285464http://www.questia.com/googleScholar.qst;jsessionid=46CA9C27B8572092C339BCF36487867E.inst2_1b?docId=5001285464


5/32

c. Explain the various elements of the marketing concept with reference to the Olympic

marketing activates.

Marketing environment for enterprise survival and development plays an extremely important

impact. Modern marketing that the key to business success is whether companies can adapt to the

changing marketing environment. 8

Changes in the value of marketing concept

For Chinese enterprises, through the melamine crisis of confidence and the impact of the global

financial crisis, the enterprise value orientation of marketing two major changes have taken

place.

One is the marketing concept into customer and market oriented.

In the financial crisis, enterprises are facing the most intense competition ever, growing trade

protectionism, competition for customers between the seller and the market share battle

intensified, attention, to meet customer needs as the market value of new business orientation.

We see a lot of business is to seize this, making exports rose contrarian. In the domestic market,

domestic demand and to seize opportunities, medium and small cities and rural markets for home

appliances, IT, mobile marketing campaigns have achieved impressive results.

The second is the concept of social marketing is taking shape.

Business philosophy through the production concept, product concepts, marketing concepts,

marketing ideas and social marketing concept. China put forward the scientific development

concept to guide the production, in the context of building a harmonious society, social

marketing concept in 2009, a major step forward.

Rapid changes in marketing channels

8http://www.seekglasses.com/news_2009-10-31/33223.html
http://www.seekglasses.com/news_2009-10-31/33223.htmlhttp://www.seekglasses.com/news_2009-10-31/33223.htmlhttp://www.seekglasses.com/news_2009-10-31/33223.html


6/32

Pressure caused by the shrinking market channel revolution, channels formed by the pyramid-

like structure to the flat trend in the direction of change is more obvious changes in the industry

are also more extensive.

Marketing to strategic marketing

Anxiously waiting for the market recovers, the company did not stop marketing strategy. Many

companies even use this opportunity to step up strategic layout.

Pressure and hope coexist, domestic demand and external demand in 2009 with the move,

more and more companies recognize that enterprises should be able to maintain a sustainable

competitive advantage, access to marketing competitiveness to be dependent on the conduct of

strategic marketing. The future, based on resources and competition-oriented, highly integration

of strategic marketing is bound to marketing to a new era.


7/32

d. Identify and critically assess the benefits and costs of marketing approach for being

official sponsor of London 2012.

The concept of sports sponsorship still holds good in establishing effective and efficient

advertising strategy in todays marketplace. In other words, sports sponsorship is one of the best

ways to build a communication path toward consumers9.

Unfortunately, not every company sponsoring World Cup and PGA enjoys significantly positive

cumulative abnormal returns but the short-term financial performance can be enhanced by brand

value. Product fit was identified as a potential driver that enhances short-term financial

performance. The event characteristics such as event period, sports type and popularity may

moderate in transferring sponsorship into increased financial outcome but result shows there is

no impact of those factors.

Critical elements in the success of event marketing can be defined based on this empirical result.

It is essential for companies to assess their brand value and sponsorship fit in selecting most

appropriate sports event. This might be because choosing the right event paves way to better

access to targeted audience10.

Marketers should make every effort to establish a relationship with the sports event affiliated

with the firms sponsored sport11. Compared to big sports event, niche sport event organizers

should also note that sponsorship at their respective events may possibly be devalued12.

9Buchan, Nick (2006), Sports Sponsorship Still Giving Enough bang for the Buck?B&T Weekly, 56 (2567), 5.

10Shani, David and Dennis Sandler (1996), Climbing the Sport Event Pyramid, Sports Marketing, 30 (18), 6.

11Sherry, J. Greg (1998), The Key to Maximizing Your Sports Sponsorship, Public Relations Quarterly, 43 (1),

24-26.

12Miloch, Kimberly S. and Keith W. Lambert (2006), Consumer Awareness of Sponsorship at Grassroots Sport

Events, Sport Marketing Quarterly, 15 (3), 147-154.


8/32

Increasingly, however, sponsorships are being used strategically inside companies to motivate

employee or facilitate a major structural change, such as a merger.13 Future research should

identify the relationship between sports sponsorship and employee, for example, employees

personal identity, morale, job satisfaction. Sports sponsorship effectiveness is still measured

largely in terms of fans TV consumption14. New media such as internet broadcasting and other

traditional platforms, such as press and radio, play an important role for sports followers15.

13http://www.aabri.com/manuscripts/09382.pdf

14 Farrelly Francis J. and Stephen A. Greyser (2007), Sport Sponsorship to Rally the Home Team, Harvard

Business Review, 85 (9), 22-24.

15Smythe, James (2007), Lagging behind the Media,Marketing Week, June 9, 26-27.
http://www.aabri.com/manuscripts/09382.pdfhttp://www.aabri.com/manuscripts/09382.pdfhttp://www.aabri.com/manuscripts/09382.pdfhttp://www.aabri.com/manuscripts/09382.pdf


9/32

TASK 2

a.

Identify and explain macro and micro environmental factors which influence marketing

decisions of the company to sponsor London 2012.

Micro environmental factors are,

1.The company

2.Suppliers

3.Marketing intermediaries

4.Competitors

5.Public

6.Customers.

The term micro-environment denotes those elements over which the marketing firm has control

or which it can use in order to gain information that will better help it in its marketing operations.

In other words, these are elements that can be manipulated, or used to glean information, in order

to provide fuller satisfaction to the companys customers. The objective of marketing philosophy

is to make profits through satisfying customers. This is accomplished through the manipulation

of the variables over which a company has control in such a way as to optimise this objective.

The variables are what Neil Borden has termed the marketing mix which is a combination of all

the ingredients in a recipe that is designed to prove most attractive to customers. In this case

the ingredients are individual elements that marketing can manipulate into the most appropriate

mix. E Jerome McCarthy further dubbed the variables that the company can control in order to

reach its target market the four Ps. Each of these is discussed in detail in later chapters, but a

brief discussion now follows upon each of these elements of the marketing mix together with an

explanation of how they fit into the overall notion of marketing.

Macro environmental Factors are,

1.Demographic


10/32

2.Economic

3.Natural

4.Technological

5.Political

6.Cultural

The term macro-environment denotes all forces and agencies external to the marketing firm

itself. Some of these forces and agencies will be closer to the operation of the firm than others,

e.g. a firms suppliers, agents, distributors and other distributive intermediaries and competing

firms. These closer external constituents are often collectively referred to as the firms

proximate macro-environment to distinguish them from the wider external forces found, for

example, in the legal, cultural, economic and technological sub-environments.

This consists of people, organizations and forces within the firms immediate external

environment. Of particular importance to marketing firms are the sub-environments of suppliers,

competitors and distributors (intermediaries). These sub-environments can each have a

significant effect upon the marketing firm.16

16 http://www.da-group.co.uk/index.php?option=com_content&view=article&id=31%3Amicro-and-macro-

environments&catid=2%3Amarketing-lectures&Itemid=3
http://www.blurtit.com/q5694977.htmlhttp://www.da-group.co.uk/index.php?option=com_content&view=article&id=31%3Amicro-and-macro-environments&catid=2%3Amarketing-lectures&Itemid=3http://www.da-group.co.uk/index.php?option=com_content&view=article&id=31%3Amicro-and-macro-environments&catid=2%3Amarketing-lectures&Itemid=3http://www.da-group.co.uk/index.php?option=com_content&view=article&id=31%3Amicro-and-macro-environments&catid=2%3Amarketing-lectures&Itemid=3http://www.da-group.co.uk/index.php?option=com_content&view=article&id=31%3Amicro-and-macro-environments&catid=2%3Amarketing-lectures&Itemid=3http://www.blurtit.com/q5694977.html


11/32

b.

With your understanding of the topic on segmentation, propose segmentation criteria that

the organization can use for its two different products in different markets.

About forty years ago, segmentation was viewed as an imperfection in market structure rather

than as a more precise adjustment to consumer or user requirements. From this time, the benefits

of adapting marketing resources to the heterogeneous needs and wants of customers is

recognized. Nowadays, in the context of globalization, the focus has shifted towards looking for

similarities and the search for global segments. As a result of these changes, Hassan and

Katsanis defined (global) market segmentation as follows:

Global market segmentation is the process of identifying specific segments, whether they be

country groups or individual customer groups, of potential customers with homogeneous

attributes who are likely to exhibit similar behaviour17

.

This trend of globalizing economies raised a new question: how should a company segment a

global/international market? Segmentation of a international market implied the addition of

another, country specific, dimension.

In domestic markets customer characteristics such as age, sex, social class, etc. and attitudes

toward a certain product or brand are often used as bases for segmentation. In international

markets an extra dimension has to be considered, i.e. country characteristics. For instance, every

country has its own specific social, cultural, economic, technological, political, legal and

environmental characteristics affecting marketing strategies and customer/market responses.

The different perceptions and approaches of multinational companies determined their

segmentation approach. Besides the shift from looking for differences towards the focus on

17Hassan, S.S. and Katsanis, L.P. (1991), Identification of global consumer segments: a behavioural framework,

Journal of International Consumer Marketing, Vol.3 No.2. pp. 11-29


12/32

similarities mentioned above, one can observe the influence of the internationalizing

environment and the evolvement of global strategies.18

Marketing Segmentation criteria for 2 products bottled water and breakfast cereal. Marketers

segment markets because it helps them to match their products better to their customers, as every

customer is different (age, sex, etc.) and has differing needs and wants dividing the market into

segments helps the marketer focus on these subgroups leading to a target market. This target

market can then be selected and a marketing mix can be made especially for them. This can save

a business time and money as it can be planned well as it is aimed straight at potential customers.

Also a greater understanding of who these customers are and what their needs are can enable the

business to gather information about the requirements.19

18http://www.best-information.eu/international-marketing-strategies/C2-international-market-segmentation.html

19http://www.writework.com/essay/segmentation-criteria-2-products-bottled-water-and-breakfast
http://www.best-information.eu/international-marketing-strategies/C2-international-market-segmentation.htmlhttp://www.best-information.eu/international-marketing-strategies/C2-international-market-segmentation.htmlhttp://www.best-information.eu/international-marketing-strategies/C2-international-market-segmentation.htmlhttp://www.writework.com/essay/segmentation-criteria-2-products-bottled-water-and-breakfahttp://www.writework.com/essay/segmentation-criteria-2-products-bottled-water-and-breakfahttp://www.writework.com/essay/segmentation-criteria-2-products-bottled-water-and-breakfahttp://www.writework.com/essay/segmentation-criteria-2-products-bottled-water-and-breakfahttp://www.best-information.eu/international-marketing-strategies/C2-international-market-segmentation.html


13/32

c.

Sketch out those factors that influence the choice of targeting strategy by the organization

with reference to its sponsorship of the event.

Targeting strategy decisions are influenced by these factors:

market maturity

diversity of buyers' needs and preferences

strength of the competition

the volume of sales required for profitability20

A strategy is a carefully considered plan devised to help a company meet its objectives. A

strategy can relate to the

company's brand, its marketing or how it meets customers' needs.

Global Blue Chip companies like Ford have carefully planned brand strategies. Sponsorship is an

effective way of

meeting Ford's brand objectives. It permits a company to enhance the value of its brand through

a positive association

with an event or tournament.

Ford has two objectives in its sponsorship strategy. One is to reinforce and further build the Ford

brand. The other is to

achieve a good connection between Ford and its potential customers. Through its association

with such a premium

sporting event such as the UEFA Champions League, Ford is able to directly reach its target

customer for nine months

every year. Research has clearly shown that this sponsorship creates a positive view of Fordparticularly amongst

football fans who watch football on TV regularly.

20http://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_startegies#ixzz1B6P30liK
http://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_startegies#ixzz1B6P30liKhttp://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_startegies#ixzz1B6P30liKhttp://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_startegies#ixzz1B6P30liKhttp://wiki.answers.com/Q/Outline_factors_that_influence_the_choice_of_targeting_startegies#ixzz1B6P30liK


14/32

The UEFA Champions League is the premium European club football competition. It was

officially inaugurated in 1992.

The UEFA Champions League features the top 32 European club teams with matches taking

place on Tuesdays and

Wednesdays across Europe. The current format came into play for the 2002-03 season. This

involves a qualifying

competition, one group stage involving 32 clubs and a final knockout stage involving 16 clubs

down to two and a final,

which is staged at a major European venue at the end.

Ford is one of six sponsors of the UEFA Champions League. Only official sponsors, i.e. those

companies who purchase

sponsorship rights from the Rights holder, such as UEFA, are able to associate with the

competition. By purchasing

these rights for the UEFA Champions League, Ford and other sponsors have the unique and

exclusive opportunity to

associate themselves with this event. This helps Ford drive a competitive advantage in its

particular market.21

21http://www.thetimes100.co.uk/downloads/ford/ford_11_2.pdf
http://www.thetimes100.co.uk/downloads/ford/ford_11_2.pdfhttp://www.thetimes100.co.uk/downloads/ford/ford_11_2.pdfhttp://www.thetimes100.co.uk/downloads/ford/ford_11_2.pdf


15/32

d.

How does buyers behavior affects marketing activities in two different buying situations

putting into consideration Olympic branding of products by official sponsors?

While the effectiveness of sport sponsorship has been suggested to some degree by literature

based upon diverse notions and theories of consumer psychology, there has been a dearth of

micro-level investigation that would provide more direct evidence supporting the commercial

value of sponsorship.

In order to examine the commercial merits of sponsorship, it is essential to conduct a micro-level

investigation that would directly measure the impact of sponsorship upon consumers actual

brand choice behavior in response to a particular sponsorship program, after controlling for other

marketing variables such as traditional media advertisement. 22

Given the paucity of the empirical studies that directly address the problems in sponsorship

research, this study seeks to add to the research on two questions: (1) whether consumers

actually purchase more of a brand that sponsors a major sporting event; and (2) if so, whether the

impact of sponsorship upon consumersbrand choice is significant even after the model controls

for other marketing effects, such as traditional media advertisement. This study examines the

impact of a major Olympic Games sponsorship relationship on consumersactual brand choice

behavior, by using a panel data set that spans two Games periods

The name-brand cola market is dominated by only two companies, Coke and Pepsi. Assuming

that consumer utility derived from product characteristics is identical regardless which brand is

consumed, makes it reasonable to assume that the determinants of a consumers choice of brand

arises from other factors, not from the product per se. 23

Various promotional strategies, such as coupons, shopper cards, and buy-one-get-one-free

programs, definitely influence consumer brand choice. By considering the prices that consumers

actually pay after incorporating such promotional strategies, these effects can be controlled.Coca-Cola, but not Pepsi, is one of the official sponsors of the Olympic Games, and the data

22Harvey, B. 2001. Measuring the Effects of Sponsorships.Journal of Advertising Research, 59-65.

23 Papadimitriou, D., and A. Apostolopoulou. 2009. Olympic Sponsorship Activation and the Creation of

Competitive Advantage.Journal of Promotion Management, 15(1&2): 90-117.


16/32

period contains two Olympics: Torino and Beijing. Sponsorship effects can be revealed by

tracking the change in consumer brand choice before and after the Olympics. 24

24http://www.sportmarketingassociation.com/2010conference/2010conferencepresentations/P-17.pdf


17/32

TASKS 3

a.

Describe how products could developed at a global sporting event such as Olympic to

sustain competitive advantage for registered official sponsor such as Coca Cola against

Companies unofficially associating themselves with the games.

Coca-Cola, the longest backer of the Olympics having first sponsored them at the 1928 Games in

Amsterdam, have paid more than $150 million (100 million) for the exclusive rights to be the

official provider of non-alcoholic drinks at the Games but claimed that they do not object to the

plans by London 2012 to let spectators bring in the drinks of other manufacturers.

A Coca-Cola spokesman told insidethegames: "The responsibility for deciding what can and

cannot be brought inside Olympic venues is a matter for LOCOG and we will support their

decisions.

"As the Games are almost three years away, we are still talking to LOCOG about their plans but

we are committed to providing our wide range of drinks, including sparkling, still, functional

drinks, waters and juices, during Games time."

Coca-Cola are keen to avoid the negative publicity that Pepsi have been involved in after theyhave had organisers at events they are sponsoring prevent spectators from bringing in drinks not

made by them.

At the Cricket World Cup in South Africa in 2003, for example, stewards searched fans' cool-

boxes for its rival's fizzy drinks and a Johannesburg businessman was evicted from one game for

drinking a can of Coca-Cola.

At the 2004 Champions Trophy cricket tournament trophy, where matches were played

throughout England, cricket fans were issued with a list of drinks and snacks they could take into

grounds.

Pepsi and its family of drinks, such as Tango, 7 Up and Abbey Well mineral water, were

acceptable, but no other brands were permitted.


18/32

London 2012 will also provide free drinking water during the Olympics and Paralympics, an

initiative also backed by Coca-Cola.

The spokesman said: "We believe consumers should have a choice of drinks - and that includes

competitors and spectators at London 2012 - so support LOCOG's decision to provide free

drinking water."

Coca-Cola's involvement Olympics in London has been the subject of controversy since the

capital was awarded the event in 2005 with public health experts in Britain claiming that it is

difficult to reconcile their sponsorship of the Games with encouraging physical activity and

fitness among the young.

But Coke, whose products are sold in more than 200 countries and who in 2005 extended their

relationship with the International Olympic Committee until 2020, claim that without the

backing of them and other sponsors up to 85 per cent of National Olympic Committees would be

unable to compete in the Games.25

25 http://www.insidethegames.biz/index.php?option=com_content&view=article&id=7621:exclusive-coca-cola-

back-london-2012-plan-to-let-fans-bring-in-own-drinks&catid=1:latest-news&Itemid=1
http://www.insidethegames.biz/index.php?option=com_content&view=article&id=7621:exclusive-coca-cola-back-london-2012-plan-to-let-fans-bring-in-own-drinks&catid=1:latest-news&Itemid=1http://www.insidethegames.biz/index.php?option=com_content&view=article&id=7621:exclusive-coca-cola-back-london-2012-plan-to-let-fans-bring-in-own-drinks&catid=1:latest-news&Itemid=1http://www.insidethegames.biz/index.php?option=com_content&view=article&id=7621:exclusive-coca-cola-back-london-2012-plan-to-let-fans-bring-in-own-drinks&catid=1:latest-news&Itemid=1http://www.insidethegames.biz/index.php?option=com_content&view=article&id=7621:exclusive-coca-cola-back-london-2012-plan-to-let-fans-bring-in-own-drinks&catid=1:latest-news&Itemid=1


19/32

b.

With reference to question a, how can distributions network of the companies be organized

to provide customer convenience for the event.

Coca Cola uses the following distribution channels:

1. Retail Stores including Convenient stores (Super markets etc)

2.Vending machine/Self Service Slot machines (school and other miscellaneous business)

4. Ho-Re-Ca (means Hotels, Restaurants, Cafes including Fast food outlets, cuisine Restaurants

etc.)

5. Mobile Carts (mechanized and non- mechanized)

6. Entertainment Zones (theme park, Disneyworld and so on)26

Central point in territory for warehousing of product, with manageable coverage area and

defined customer base (typically 150 outlets)

Distribution of product is mostly manual to keep costs at a minimum

Outlets served typically low volume outlets with high service frequency requirements and

limited

cash flow requiring fast turnaround of stock

The initiative presents two key opportunities:

1. To better show the wide ranging impact of the System (the multiplier effect)

already in place through the MDC system

2. To specifically focus on maximizing the socio-economic or development benefits

of the MDC concept through a focused research project, pilot and the creation of a

best practice model for replication

27

26http://wiki.answers.com/Q/What_distribution_channel_does_coca_cola_use#ixzz1BNE2NmeL

27 http://api.ning.com/files/mmVoOE-

YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdf---- Micro-distribution models in Africa, Coca-Colas Manual Distribution System
http://wiki.answers.com/Q/What_distribution_channel_does_coca_cola_use#ixzz1BNE2NmeLhttp://wiki.answers.com/Q/What_distribution_channel_does_coca_cola_use#ixzz1BNE2NmeLhttp://wiki.answers.com/Q/What_distribution_channel_does_coca_cola_use#ixzz1BNE2NmeLhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://api.ning.com/files/mmVoOE-YKk95aDcnvUmnHqyHbPZsEdqalb1DeTSK22ThTY8q3QdIFViIVZCDZ68Ne2ZJw4OiaNQLx9Lw4jadhrNioF474NV-/MDCPres21April09.pdfhttp://wiki.answers.com/Q/What_distribution_channel_does_coca_cola_use#ixzz1BNE2NmeL


20/32


21/32

Some times Coca Cola Company change their product prices according to the season. Summer is

supposed to be a good season for beverage industry in Pakistan.

So in winter they reduce their prices to maintain their sales and profit. But normally they reduce

the prices of their pet bottles or 1 litter glass bottle.


22/32

d.

Explain how the organization (Coca Cola) can integrates its promotional activities to

achieve its marketing objectives during the global sporting event.

Coca-Cola Cricket

Cricket the most sought after; watched & played game in india .the game of cricket has been

owned by various brands in the industry for the promotion of their products over a period of

time. It has ranged from tobacco to lubricants to communication companies to banks to airlines

& lately to the beverage industry. The competition has become tougher & tougher as the time has

progressed.

Coca-Cola signed a sponsorship agreement with IPL team of kings 11 Punjab . Coca-Cola

realizing the fact that cricket is a very strong element by which it can reach it consumers &

masses invested in the opportunity and launched a massive campaign on mass media showing all

these cricket stars endorsing & complimenting Coca-Cola brand. The Coca-Cola Company

developed three TV commercials & four testimonial ads with the player & ran them on the

national net work during various cricket matches.

.

Coca-Cola Food Mela

With a splash of food, fun & prizes to be won, the Coca-Cola food mela treated the people of

delhi, to a festive food festival comprising of 50 restaurants, spread out all over the bustling

citys map. The promotion saw the avid families & friends enjoying the delicacies at the

restaurants; all resiliently upholding the Coca-Cola identity.

Coca-Cola GO-RED


23/32

Quenching the thirst of motorist, pedestrians & passerbys during Delhi hottest summer season,

Coca-Colas GO-RED teams went out into the cities main quadrants to serve & refreshon

the spot with ice-cold Coca-Colas at discounted prices backed by a heavy FM announcement

campaign the GO-RED stall, served well to promote the Coca-Cola industry.

Coca-Cola Pet Promotion

In 2008, Coca-Cola launched 1.5 liter Pet contour bottle Targeting house wives & family home,

Coca-Colas 1.5 liter Pet bottle, took the limelight & gained momentum with a campaign

promoting the unique packaging and its numerous consumer benefits .A treat for the family,

Coca-Colas PET was offered through a price-off promotion

Coca-Cola & Mc Donalds

Coca-Cola & key account of MC Donalds launched the we go together joint promotion to

reinstate amongst consumers a real sense of the affinity that, both shares globally. The promotion

kicked off with pos material (Danglers, Bunting etc) displayed at all MC Donalds restaurants

along with a special offer for coke & fries.

Getting shelves

They gets or purchase shelves in big departmental stores and display their products in that

shelves in that style which show their product more clear and more attractive for the consumers.

Eye Catching Position

Salesman of the coca cola company positions their freezers and their products in eye-catching

positions. Normally they keep their freezers near the entrance of the stores.

Sale Promotion


24/32

Company also do sponsorships with different college and schools cafes and sponsors their

sports events and other extra curriculum activities for getting market share.

Scheme

Coke comes out with the schemes on their different products many times in a year. Most of

these schemes are made to benefit the retailers. Some of the schemes are as follows:

1 bottle of 2lt. free with one 2lt bottle pack.

1 bottle of 1lt. free with one 1lt bottle pack.

2 bottles of 500ml free with one 500ml bottle pack.

6 bottles of Kinley free with one pack of Kinley.

These schemes keep on changing depending upon the stock.

Promotion through restaurants and cinema hall holdings.

Coca-cola is tying up with different chains of restaurants and fast food centers to promote the

Coca-cola and its other brands like Limca, Sprite, Maaza etc. these restaurants are authorized to

keep and use the merchandising assets of Pepsi. Usually these kinds of restaurants and fast food

chains are in contract with the Pepsi Co., so that they cannot promote any other brand.

Merchandising assets.

Coca-Cola also try to promote their brands by providing their retailers and dealers some display

items. Some of such items are as follows:

1. Fridges2. Coca-Cola/Mazza stands3. Display bottles4. Posters

Coca-Cola provide the above things to the retailers to use them in promoting companies brands

and products, and provide refrigerators to the retailers in the hope that these retailers only use


25/32

these assets in promoting the Coca-Colas products and they will chill the Coca-Colas products

so that its products will always be available to the end consumers. But it is not true in most of the

cases. Retailers usually use the merchandising asset of one company in such a way that it

benefits another company. Sometime they do it unknowingly, sometimes they do it knowingly

and sometimes because of the deficiencies of the company


26/32

e.

Do an in depth analysis of the extended marketing mix with reference to questions A to D

above.

The sport industry is experiencing good growth and sports marketing emerging a new concept in the

emerging industry. Sports marketing are the specific application of marketing principles and processes

to sport products & services and marketing of non-sports products via association with sports.

Nowadays sports organizations define their businesses as entertainment providers. In addition to this,

sports organizations must practice a marketing orientation in order to be successful in the competitive

environment of sports. An organization with a marketing orientation focuses on understanding the

customers and providing sports products that satisfy consumer's needs.

The consumer of sports is the category of the people who observe the sports events as a spectator,

participate in the sports activities and even the sponsors who exchange money or product for the right

to be associated with a sporting event. All these are classified as consumers i.e. the participants,

spectators and sponsors use sports products.

The important tool of the trade of sport marketing is a sports marketing mix which can bedefined as the coordinated set of elements that sports organization use to meet their marketingmix objectives and satisfy consumers needs.

Elements of sport marketing mix:

Sport product Distribution or place Pricing Promotion

Another central element of marketing is the exchange process in addition to the marketing mixwhich may be defined as a marketing transaction in which the buyer gives something of value tothe seller in return for goods and services.

The planning process may be defined as understanding of consumers needs, selecting a group of

consumers with similar needs and positioning the sports product within the group of consumers. The

last step of the planning phase is to develop a marketing mix that will appeal to the targeted group of

consumers and carry out the desired positioning.29

For sportsmarketing, this opensupanewperspectivewhichvalues people (both

customers and employees) as a sporting organisations most important asset andaddresses the need to create viable strategies formeeting customer needs profitably.The possible application of relationship marketing to the different elements ofthe extendedmarketing mix for sports.

30

29http://www.firstclass-writeups.org/tutorial/files/633411459843056.php

30 http://www.download-

it.org/free_files/Pages%20from%20CHAPTER%207%20The%20Extended%20Marketing%20Mix%20of%20Relationship%20Marketing%20in%20Sports-43eff0082bb430223c204b2e8c67136d.pdf


27/32

Make the public aware of the existence of the firm and maintain the good name and image of

Coca-Cola by issuing press releases, organizing news conferences and informing the public

about the firms activities. Maintain goodwill amongst the public for the company. Goodwill is

the likelihood that the old customer will return and can be equated with brand loyalty. Brand

loyalty occurs when customers repeat-purchase a particular branded product on a regular basis.

Coca- Cola has a high level of brand loyalty. Whenyou want a drink do you automatically pick

up a bottle of Coca-Cola?31

31THE coca-cola brand & sponsorship The Irish Times, Business 2000, Fifth Edition


28/32

TASK 4

a. Attempt a suggestion of marketing mixes for two different segments in consumer

markets.

A convenient concept for explaining an organizations marketing activities and the decisions

made by marketing executives is the marketing mix. Just as a master chef prepares a mix of

ingredients for a favorite recipe, a marketing manager combines the marketing activities to form

a satisfactory marketing mix. Each company must develop a marketing mix that is most

appropriate for its products and target customers. To do this, marketing managers need

information that is provided by marketing information systems, marketing research, and sales

forecasting.

The major components of a companys marketing mix are product, distribution, price, and

promotion. These four elements are blended together to create a total package that will best

satisfy the markets needs. The marketing mixes of two watch manufacturers illustrate how

vastly different approaches can succeed. Timex sells a relatively inexpensive watch that appeals

to the mass market. Timex promotes the durability of its economical watches, has a broad line of

low- to medium-priced watches, and distributes through many retail outlets, including variety,

drug, and discount stores. On the other hand, Rolex has formulated a marketing mix that appeals

to a specific market. Rolex focuses its promotion efforts on developing a quality image. Rolexwatches are extremely expensive, and retail distribution is restricted to a small number of

exclusive jewelry and specialty stores.

The successful marketing of Dell computers provides a second example. Apple, IBM, and other

PC marketers relied on a traditional marketing mix strategy to sell the home PC market. This mix

involved mass media advertising, in-store promotions, and distribution through specialty

computer retailers.

Sensing an opportunity, Dell Computer Corp. tried a different marketing mix strategy. Michael

Dell, the firms founder, sensed that many customers wanted a quality PC at a low price. He

assembled the machines using inexpensive component parts, distributed these personal


29/32

computers through a low-cost mail-order system, and passed the lower costs to consumers

through reduced prices.32

32Article: The Concept of Modern Marketing, American Management Association, 2007


30/32

b.

What are differences in marketing products and services to organizations rather than

consumers?

There is often a great deal of misunderstanding about marketing. People often consider

marketing to be the same as advertising. It's not. Advertising is only one part of marketing. Very

simply put, marketing is the wide range of activities involved in making sure that you're

continuing to meet the needs of your customers and getting value in return.

Market analysis includes finding out what groups of customers (or markets) exist, what their

needs are, what groups of customers you prefer to serve (target markets), what products or

services you might develop to meet their needs, how the customers prefer to use the products andservices, what your competitors are doing, what pricing you should use and how you should

distribute products and services to customers. Results of this marketing analysis indicates the

position, or market "niche", for the organization to work from -- and to be seen as having.

Marketing also includes ongoing promotions, which can include advertising, public relations,

sales and customer service. Various methods of market research are used to find out information

about markets, target markets and their needs, competitors, market trends, customer satisfaction

with products and services, etc.33

There are a variety of reasons for an organization to want to offer payable services. From what

we hear from other organizations, there is no doubt that financial restrictionsdoing more with

lessare an ever-growing reality for all government or government subsidized organizations.

Going from no charge to payable services represents an important shiftin some ways, the

customer and customer satisfaction become the ultimate goal behind all decisions and activity. It

is important to realize that such a change does not happen overnight or without the support of the

whole organization.34

33http://managementhelp.org/fp_progs/mkt_mod/market.htm

34 Parasuraman, A., Zeithaml, Valarie A., Berry, Leonard L., A conceptual model of service quality and its

implications for future research, Marketing Science Institute, Cambridge, MA, August 1984.
http://managementhelp.org/fp_progs/mkt_mod/market.htmhttp://managementhelp.org/fp_progs/mkt_mod/market.htmhttp://managementhelp.org/fp_progs/mkt_mod/market.htmhttp://managementhelp.org/fp_progs/mkt_mod/market.htm


31/32

c.

Critically explain how and why international marketing differs from domestic marketing

with reference to sponsoring London 2012.

The Beijing Organising Committee for the Olympic Games (BOCOG) launched the marketing

plan of the Beijing 2008 Olympic Games on 1 September, bringing about sponsorship and

licensing opportunities for Hong Kong companies (including small- and medium-sized

enterprises).

Companies in different industry categories can become sponsors to the Beijing Olympics.

Companies having their own brands and aiming to build up their corporate image, especially in

the mainland market, may consider utilising the sponsorship programme as a marketing platform.

Sponsors can use BOCOG and/or Chinese Olympic Committee (COC) marks and designations

for the purposes of advertising and marketing promotions. They can also enjoy preferred options

to purchase TV advertising space and billboards during the Games. It is expected that sponsors

of different levels will make the most of their marketing rights to build up their corporate image.

As a result, there will be massive demand for corporate gifts and premium relating to the

Olympic Games. Excelling in developing and producing competitively priced quality gift items,

Hong Kong manufacturers should be able to benefit from this demand.

Hong Kong companies interested in supplying gift and premium items to large Olympic sponsors

for use in the mainland may need to consider logistics arrangements because some of these

corporations may have an extensive marketing network covering a huge area of the mainland.

Furthermore, as suppliers selling directly in the mainland, Hong Kong manufacturers would also

be required to be able to issue VAT invoices.

For the licensing programme, major licensed product categories include sporting goods, cultural

products, leisure goods, arts and crafts, and souvenirs. The programme will adopt a segmented

market strategy, ensuring that the licensed products will be available in a broad range of styles

and prices to target different consumer groups.


32/32

One of the objectives of the Beijing Olympics is to promote the "Made-in-China = High Quality"

message. Hong Kong companies, renowned for product design, quality control and intellectual

property rights protection, should have an advantage in bidding for licensing rights. Licensees

have to pay a minimum guarantee and a royalty advance to BOCOG.

For gift items supplied to Olympic sponsors or licensed merchandise, product design must

comply with the technical requirements regarding the Olympic symbol, emblem and mascot.

However, since the Olympic Games covers a wide range of sports, there is more room for design

development.

Recruitment of sponsors is expected to begin in the second quarter of 2004. For licensing, the

national programme will start in the second half of 2003 and the international programme will

commence after the Athens Olympics 2004.35

35http://info.hktdc.com/econforum/tdc/tdc030903.htm#1
http://info.hktdc.com/econforum/tdc/tdc030903.htm#1http://info.hktdc.com/econforum/tdc/tdc030903.htm#1http://info.hktdc.com/econforum/tdc/tdc030903.htm#1

Date post:	03-Jun-2018
Category:	Documents
Upload:	lovleshruby
View:	222 times
Download:	0 times

Marketing Mis.docx

Documents