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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
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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
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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
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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
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001285464
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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
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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.
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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.
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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.pdf8/12/2019 Marketing Mis.docx
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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
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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
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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
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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
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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
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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
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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.
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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
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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.
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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=18/12/2019 Marketing Mis.docx
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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#ixzz1BNE2NmeL8/12/2019 Marketing Mis.docx
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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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