The Concept and Process of Marketing (Coca-Cola case) Essay

The Concept and Process of Marketing (Coca-Cola case) - Essay Example Marketing can also be defined as a process through organization creates effective channels of exchanging of goods and services with their customers, through coordination of the four P’s of marketing, which are product, price, place and promotion. Marketing therefore involves identifying a product that can satisfy a given consumer need, determination of its price, determination of an effective distribution channel for the product to reach the customer, and finally designing ways to inform the potential consumers about the product (Wysong and Flores, 2008, p.54). 1.2 Consumers Needs and Wants Consumers are motivated to buy goods and services by their specific wants and needs, a consumers needs are those items that every person requires for survivor such as clothes, food and shelters. The consumer’s wants refers to those items that a person would consider buying after fulfilling his or her needs, which may include a car, going for holiday among others. However, a want can easily translate into a need when a person desperately wants an item. However, Hartline and Ferrell (2010, p.184) warns that referring to needs as necessities is simplistic since the definition of a need is subjective. Therefore, in this respect, a need occurs when a consumer’s level of satisfaction is below the desired level while a want is a desire of a given product to cater for a need (Hartline and Ferrell, 2010, p.184). As stated earlier, a consumer will buy goods and services primarily to satisfy his or her wants and needs. Therefore, it is prudent for a business to understand the needs, which can be satisfied by its products. As Hartline and Ferrell...For instance, Coca-Cola has in the past used their bottles to conduct a lottery, whereby a faithful customer who manages to collect specific winning bottle tops gets the reward. 2.37 Consumer profitability. Companies undergo various costs in the process of advertising, consumer relations, and in the process of trying to increase their sales. Consumer profitability is the difference between the revenue that a company gets customers, and the cost they incur to get those customers (Raaij and Eric 2002, p 1). Coca- Cola Company should do the cost benefit analysis, in order to ensure that revenue incurred in the customer relation process is more than the costs incurred, and that such difference is significant. 2.38 Narrow marketing focus Narrow marketing involves a product with fluctuating prices in the market, which is usually as a result of change in demand or supply. A narrow marketing strategy involves a company not putting efforts to win new customers. The cost of narrow marketing focus is low sales, fluctuation in product demand. Coca–Cola Company can avoid this pitfall through adopting strategies to get new customers and using good customer relations to retain existing customers.

Factors that cause shift in demand curve Essay Example | Topics and Well Written Essays - 1500 words

Factors that cause shift in demand curve - Essay Example When the price of the bread increases to $70, the quantity demanded as a result decreases to 6 million or where the price decreases to $50 from $40 then the quantity demanded increases to 10 million. This phenomenon can be said to be the movement along the demand curve. The reason for the shift of the demand curve is due to the change in factors other than that of price, such as the change in price of the related goods, income of the consumer or preference of the consumer etc. An increase of decrease in these factors can shift the demand curve on either side as the price will remain the same. Two goods are said to be the substitute of each other when the price of one of the item causes the price of the other item to rise simultaneously or the goods are such identical to each other that a normal consumer may switch to the other good when the price of the prior rises. The customer expectation that the price of a good may increase of decrease can have affect on the demand curve as due t o the expected increase in price. The customer will tend to purchase and stock the particular good before the price rises and vice versa may happen when there is a possibility of decrease in price. The change in income of a consumer is one of the basic causes of the shift in the demand curve. When the income of the consumer increases he will switch to more luxury goods as compared to the normal goods, because of the increase in his purchasing power which provides a better margin to purchase more of a good.