Produce a marketing strategy for a product or service with a clear understanding of the principle of marketing.

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The principles of marketing

E1. Produce a marketing strategy for a product or service with a clear understanding of the principle of marketing.

My objective for the marketing strategy is to achieve more profits by making some adjustments to the packaging of Coca-Cola. I want to see whether the demand for Coca-Cola will increase or decrease due to small changes. These changes are that I will replace the opening with a cap on a Coca-Cola can to stop people throwing away the drink due to a lack of storage space. By doing this I hope to gain a bigger market share for Coca-Cola.

Before I start making any changes I need to primary and secondary research in which consumers will be asked whether they would buy the changed product. In order to make the idea a success I will have to develop a marketing strategy which evaluates ways which we can achieve these objectives.

The reason businesses seek to make a profit is that, without a profit, a business is unable to do all the things it wants to do. Without profit the business cannot keep its shareholders happy, it cannot pay higher wages to its employees, it cannot invest in better technology to improve its products and so on.

Understanding customer needs

In order to anticipate change, organisations need to have an antenna that is highly sensitive to changes taking place in the buying population. For example, what is happening to:

* The age structure of the population?

* Tastes and preferences?

* Incomes?

Market research is the antenna of an organisation and is far more complicated then simply asking 100 people if they like as product. This is the stage where market research starts. It is therefore, the ability to satisfy customers that marks the difference between a successful and unsuccessful organisation. There are only few firms who can provide for individual needs. Most marketing activities are therefore designed to meet the needs of groups of customers within a market.

The first challenge for any organisation is to find a set of customers and to identify their needs to that appropriate goods and services can be developed. The first element in the marketing mix is the product, then all the other elements in this marketing mix can be engaged to meet customer needs. These may include developing the pricing for the product or service provided, working out how to distribute (place) goods to the customers, as well as how to promote them.

Coca-Cola need to understand customer needs to be able to sell their product. They must undertake market research to find out what their customers want so they can produce to their needs.

Understanding and keeping ahead of the competition

One of the key factors in any market is the existence and strength of the competition. In a competitive environment organisations are forced to be on their toes. They cannot allow rivals to gain advantages by offering lower prices or goods customers perceive to be substantially better.

In order to be successful, organisations will gear activities to being better than their competitors, and to keeping up with any improvements competitors make. Coca-Cola must be in front of their rivals so that their product is at the top. They must make improvements all the time to better their product so that competitors don't take over.

Marketing in any organisation must constantly seek to enable the organisation to manage the effects of change and competition-by coming up with new products, advertising promotions, price alternations and special offers.

As competitor activity is one of the biggest threats to a business organisation, many marketers spend a lot of time finding out what their competitors are doing. Finding out about competitors involves considerable amount of research. This will start with finding out as much as possible about competitors' products and other elements of their marketing mix.

Unfortunately, over the course of time, many organisations develop a product orientation rather than a market orientation. Marketing orientation is based on the belief that, if organisations do not satisfy the needs of customers, they will not survive. It is therefore essential to match the production and development of good and services with the identification and anticipation of customers' desires and requirements.

It is important, then, for organisations not just to look at their competitors' products but also at how they deal with their customers. Customer needs and requirements are identified in every area of organisational activity, from the original idea and design right up until the final sale and after-sale and after-sales support. This is important for Coca-Cola to think about as they need to look at how their competitors are selling their product so that Coca-Cola can do it in the same way but better.

Communicating effectively with customers to satisfy their expectations

An effective network of communications is essential for any form of promotional activity. It enables an organisation not only to communicate with its customers and satisfy their expectations but also to build an image with the world at large. Such an image will help others to form a judgement about what the organisation stands for, and will influence their dealings with it.

For marketing purposes, communication of products and services contributes to the persuasion process, which encourages consumers to buy at whatever the offer might be. The various ways the consumer is persuaded comes under the promotional mix.

The promotional mix has all the marketing and promotional communications methods used to achieve the promotional objectives. These can be further broken down into two distinct areas:

. Controllable and

2. Non-controllable.

Non-controllable communication consists of marketing messages that occur as a result of word of mouth, personal recommendation or a consumer's overall perception of a particular product or service. This may depend on how long a family has been using the product/service. Today, consumers are increasingly influenced by the power of brands and designer labels.

Controllable communication consists of marketing messages that are carefully directed to achieve an organisation's promotional objectives. These may include the following:

Advertisements- messages sent to the media to inform or influence the people who receive them.

Direct mail-personally addressed advertising sent through the post.

Sales promotions-techniques designed to increase sales, such as money-off coupons, free samples and competitions.

Coca-Cola should therefore study the communication process carefully. It should have a clear idea of what the message is whom it is sent to and what the outcome of sending it is. They should communicate effectively to always persuade consumers to go out to buy it and also have new advertising to persuade them after a while.

Co-ordinating marketing functions to achieve marketing aims

Business strategy is concerned with the big decisions organisations make. This may have substantial implications for the whole organisation and influence the future of a business for a long time to come. An organisation with a strategy knows where it is going because of its planning ahead. Marketing strategy is concerned with identifying and meeting the requirements of customers successfully so that the organisation can meet a range of objectives.

Marketing strategies are the way organisations attempt to find out exactly what their customers want, and then to influence customers in the way that is favourable to the organisation.

Marketing strategies require detailed research to find out about:

* Customer requirements

* The right products to develop to meet customer needs

* How to position the product or service in relation to other products and services

* The right marketing mix.

After the strategy is set, tactics must be decided on e.g. market research. Then marketing objectives should be made which are realistic. Coca-Cola should come up with a new strategy when needed to meet consumer wishes because other organisations will and Coca-Cola will lose sales.

Constraints on marketing activities

Every organisation involved in marketing activity is faced with a number of constraints that may limit their activity. Internal constraints relate to the source capabilities of an organisation. When a company wants to develop new products/services, it needs the resources to finance expansion. The bigger the scale of the development projects, the more resources are required. Also businesses need the skill and know-how for a range of marketing activities.

External constraints involve a series of factors within the business environment in which an organisation operates that limit, in one way or another, the organisations activities. This may include the following:

Consumers- if an organisation is not market focused or if consumers are not interested in a product, then it will be difficult to market.

Competitors- it may be difficult to market a product for which a competitor already has an advantage.

Economy- in a period of economic recession when consumers have falling incomes, it may be difficult to market a luxury product.

The law- there may be a number of laws constraining the activities of a business. Which may make it difficult for the business to do well.

If this is the case with Coca -Cola then they will have to research all these constraints fully and will try to find solutions that enable it to turn weaknesses into strengths and threats into opportunities.

Maintaining a relationship with other stakeholders

As individuals, groups or organisations are affected by what an organisation does, they are said to have a stake or interest in the decisions the organisation makes.

A company's stakeholders, therefore include not only its customers and owners but also its workforce, its suppliers (and their families), those living near the sites, special interest groups and, of course, society as a whole, including the environment.

Some examples of these may be:

* Employees

* Customers

* Suppliers

* Creditors.

It is important for Coca-Cola to maintain a relationship with their stakeholders, as they are the one who has made Coca-Cola into what they are today.

QUESTIONNAIRE ANALYSIS

E2. Appropriately identify, collect and use primary and secondary data relevant to the marketing strategy.

I have designed a questionnaire allowing 15 people regarding Coca-Cola. This varied asking what quantity of coke they purchase to how much they pay for it. For my primary research, I will hand out questionnaires, which I will analyse the data that I receive.

Using questionnaires have many advantages. First of all it is probably the most important form of getting data. The reason being because it is easy to understand and the answers give the consumers opinion on what they exactly think whereas a survey does not do this. A questionnaire also allows a business to see what consumers are critical and happy with so they can either make changes or leave it as it is.

The problems with questionnaires are that sometimes not all of them are returned so can be very inconvenient, some are not completed or others don't answer the questions required. I will give out my questionnaires out to anyone I know.

Quantity

Amount

can

9

small bottle

6

2 litre bottle

8

3 litre bottle

This is showing that a lot of people tend to buy cans but that is because, my questionnaire was given out to 16/17 year olds who tend to buy cans as they contain drink and are easy to carry around. I asked this question because I wanted to find out what quantity is bought the most so that it could then enable me to base my promotion on it. I wanted to find out what people buy.

Amount of people pay varies from quantity of coke they purchase but they are mostly the same. I asked this question because I wanted to find out what price people pay and whether they think it is worthwhile as asked in the next question. By looking at this people pay different as to what quantity they buy but overall said the price charged was quite reasonable. This helped me as it showed that no emphasis needed to put on the price factor. So this means that I don't have to have a promotion on the price, as the customers are happy.

E.g. 45 p for a cola can.

Answer

amount

yes

2

no

3

Majority of the people think the amount they pay is worth while. So this shows that no changes need to be made on price as said above.

amount

Yes

4

No

This question shows that Coca-Cola is the number one brand. The reasons why I think this is because it is a trend in which everyone has to have it. Also it is well known so consumers tend to go with well-known products. Also advertising plays a big part as it encourages consumers to go out and buy it for themselves as they make it look and taste so nice which is irresistible.

I asked this question, as I wanted to find out whether Coca-Cola is the number one brand. If customers said yes then it would be vital to understand their needs, which should be fulfilled. If it is not then what is that Coca-Cola should be doing and what changes should be made to make it a number one brand.

answer

No.

yes

5

no

9

don'know

By looking at this the majority of people thought that Coca-Cola were doing what their competitors were doing. Others said that they should be doing what their competitors are doing such as putting on promotions such as buy one and get the second free or do more advertising.

I asked this question because I felt it was important to know whether Coca-Cola is doing what they should be doing and if not what they should do. It would also let me know whether customers were happy with Coca-Cola and if not what they wanted changing so it gave me the chance to look at what I could change to make the customers happy. It would also show what the competitors are doing and who they are.

answer

Yes

2

No

0

sometimes

3

By looking at this 10 people said that the advertising done by Coca-Cola did not encourage them to go out and buy the product so this suggests that maybe the advertising was not effective, as it should be. Also 2 people said that it did encourage them whereas the other 3 said it did encourage some but sometimes. I asked this question because I wanted to find out whether the advertising done by Coca-Cola is effective or not. If it is not then I could then improve on it to make it effective. This could also let me know what advertising I should use and what would be effective.
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I asked whether people wanted anything by appearance changing, a few said that they wanted the shape changing. Others said that they bought more when there was a price reduction in the summer. These questions were asked to what customers wanted changing as to appearance so that I would now what needed changing for my promotion. This also let me know when the best time is to put on the promotion which customers would go for.

Secondary data

This type of data is the existing data that a business can use for its own purposes.

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