Notesale: Turn your study into money

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Jack Carr
CAR12217089

BTEC Level 3 Extended Diploma in
Business – Year One
Assignment One
Introduction to Marketing
Michelle Matthews

Jack Carr
CAR12217089
Hand out date: 5th October 2015
Hand in date: 2nd November 2015

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Jack Carr
CAR12217089

Contents Page
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How do Coca Cola apply these techniques to the marketing of its
products?
Page 12: How do these techniques contribute towards the achievement of the aims and objectives of
Coca Cola? Recommendations on how Coca Cola could improve their marketing techniques
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Page 18: References/Bibliography

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What is marketing?
Marketing is a way in which a business communicates who they are as a business and what they do
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Alongside with satisfying the customer’s needs and wants in
order to generate a profit
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The business must identify what a
gap in the market may be and try to fulfil both the needs and the wants of the customer
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Once the business has identified or anticipated the current or potential wants and needs of the
customer they must satisfy these wants and needs to a high standard which will ensure the
customer is satisfied at all times
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I believe that this sums marketing up very well because the business wants to
satisfy the needs and wants of the customer through an exchange process
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The difference between customer and consumer
must be identified prior to marketing your product/service because the consumer used the product
and the customers purchases the product, for example an action figure, the marketing effort should
be to grab the younger generations (consumer) attention and make them want the action figure and
they may ask their parent or guardian (customer) to buy them the product
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Businesses will also have marketing objectives and these
objectives must be “SMART” they must be Specific so the business knows exactly what they want to
achieve and how to achieve it
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The target must also be Achievable so the
business can identify if the set target can be achieved and if not a new target may be set
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All set targets by a business must be Time-Related because the business must know how
long it will take for these targets to be achieved so they can identify a realistic amount of time for
the targets to be met
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Marketing Techniques a Business Uses
Many marketing techniques will be used in order for a business to market its product for example
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Market Penetration is also the business trying to increase the
number of sales of the product and they may do that in many ways for example promoting the
product in new ways for example, Bus shelters, TV Advertisements and possibly radio adverts
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Market Development:
Market development is when the business once again keeps the product exactly the same but this
time they market the current product to a new market and a new audience
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They could also try
to export the product in a new region where the product isn’t currently being exported too, for
example if the product isn’t in America at the current moment in time then the business could very
well try to export the product over in America in order to generate more sales and revenue and also
to gain new customers
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This is used to try to innovate and develop the current
product in order to replace the existing product/service
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New shaped bottles
or an overall change of appearance of the product could be released
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This
product will be totally different to the products the business currently offers
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Related
Diversification is where a business stays in a similar market for example if Cadburys brought out a
range of Birthday Cakes
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Production Positioning
Product Positioning is essential for a business to market their product because the length of a
business’s product can depend on how well the product has been positioned
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Pepsi are good
a product positioning because as soon as you see the logo you instantly recognise that it’s Pepsi
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These
are good examples of Product Positioning because it’s instantly recognisable by the customer
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This technique is more focused on the long term relationship the business
will have with its customer
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A prime example of Relationship Marketing is a Bank because they start up with
new customers having a current account then the customer’s may then set up a ISA or a Savings
account then in the future the customer may take out a mortgage with the bank
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Transactional Marketing
This marketing technique is used when a business’s efforts are solely focused on the sale of the
product/service and not focused on gaining a relationship with the customers
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The only relationship they will get is it the customer continues to purchase the
product/service
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Supermarkets are good
examples of businesses that use this technique because they will have a relationship with some of
their customers but they aren’t bothered if the customers who walk through the door are customers
who go there every week or customers who are walking through the door for the first time
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What all started at Jacobs Pharmacy in Atlanta in 1886 has grown and grown into the
global phenomenon that it is today
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Coca Cola will use many marketing techniques in order to market its product
and they are
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Another example of Coca Cola using Market
Penetration is when they advertise seasonally, the main seasonally advertisement of Coca Cola is the
Christmas Advertisements
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These both are good
ways to use the technique Market Penetration because the product hasn’t changed at all and also
because it appeals to the current customers which they have
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A great example of this was in 2010 Coca Cola’s sales increases
17% from the previous year and one of the main reasons for this was because they marketed their
products in many developing countries like Brazil, China and India
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Product Development
The marketing technique Product Development has been mastered by Coca Cola in past years
because they have marketed new products to existing customers and they have done this extremely
well
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Different sized
bottles have been released by Coca Cola and they will come under the Product Development
category bottles such a 1L bottle or a share size 1
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75L bottle
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Diversification
Both Unrelated and related diversification have been used by Coca Cola and used them both very
effectively for example; Coca-Cola purchased Glaceau for a total sum of $4
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This is a good example of
Coca Cola using Related Diversification because it’s selling a similar product but in the same market
(Drinks Market)
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These all are prime examples of Coca Cola using Unrelated Diversification because they all are
completely new products being marketed in a completely different market
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The USP features of Coca Cola ensure it is marketed
to perfection for example the shape of the bottle is recognisable straight away and the bottle cap is
totally different from its competitors which separate it from the rest of the products out there
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All these features are important to most, if not all of its customers
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Because they identify their most
valuable customers via segmentation
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Coca Cola also follows the three
steps of Relationship Marketing because they obtain the relationship by the customer having the
product for the first time then they maintain the relationship by ensuring the product is to a high
standard at all times and the final objective is achieved when the customers are now loyal customers
who regularly purchase Coca Cola
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This means that they may not be too bothered if the customers have bought Coca Cola for years or if
they have just started to buy Coca Cola as long as they are selling the product
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How do Apple use these marketing technique?
Apple was founded back in 1976 on April 1st by Steve Jobs, Ronald Wayne and Steve Wozniak
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The
range of products which Apple sells has made it the global giant that is today, it seems Apple can
cater to almost anyone’s needs
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Market Penetration
Apple will use market penetration to market their products and they do this by sometimes lowering
the price of some of their products to appeal and attract existing customers, this will increase sales
and increase brand loyalty at the same time
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However
they do get advertised by other companies mainly mobile phone outlets
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In my opinion this is an excellent way to
market their products due to all the success Apple products have had
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Examples of Apple doing this are; when Apple delve into a new region to export their products in
different parts of the world for example just this year, September 19th 2015 an Apple store opened
in Belgium for the first time and is the only store in Belgium
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This works so effectively because as soon as Apple is exposed in a country which
hasn’t had Apple before the demand for the product is so high due to people seeing celebrities and
just normal people with all kinds of Apple technology
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Product Development
Apple use product development a lot even on a daily basis
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New and improved models of the iPhone might be
introduced which will come with many other features that will appeal to existing customers and also
satisfy existing customers
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They have done this
particularly well in the Mobile Phone market because we are now on the 6th version of the mobile
phone and this shows how well Apple have developed their product over the past years
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They have used
related diversification because they started off as a computer manufacturing company then they
delved into the technology market as a whole, products ranging from mobile phones, tablets,
televisions and music players
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For example
Apple have a range of Mugs, T-Shirts and key rings all available to purchase online or in certain
stores
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What Apple also does exceptionally well is that they identify what the crucial parts
of the product are and the crucial features of the product and they ensure that they make them feel
important to the customer
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This is important to a lot of customers because they want everyone to know that they have
and are using an Apple product
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A prime example of Apple doing this is the upgrades as I
mentioned earlier
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Apple follow the three step relationship marketing
plan like a lot of other successful business’s do
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Transactional Marketing

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Transactional Marketing is more or less the opposite too relationship marketing
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This technique will be used mainly on first time buyers of Apple products because
they will have never had a purchase history with them prior to them making their first purchase with
the business, so they will only be focused on sales
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Limitations and Constraints
Both businesses (Coca Cola & Apple) will have limitations and constraints which will affect their
business
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Ethics is where people decide whether something is right
or if something is wrong
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Ethics is also related to the rules and beliefs of doing the right thing
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Examples of an ethically bad business is if a business
decides to increase profit by employing children to do most the work (Child Labour)
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This is ethically bad because it
is wrong the employee children under legal age to do many hours of work for next to nothing pay
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Ethics
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Both businesses must take into consideration several things for
example, what the consumer values, what the consumers believes and what the consumer thinks is
right or wrong
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A great example of ethical
marketing is Coca Cola’s idea of putting people’s names on the bottles and cans with the message of
“Share a Coke”
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This gives off the impression that
Coca Cola is a very friendly and welcoming brand and business
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This has seen Coca Cola been boycotted in several countries
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However Apple have been slated for the way they plan
obsolesce, this means that they have designed a product and attempt to place an expiry date on the
life of the product and the way the product functions
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When the malfunctions
occur a new product is normally being marketed, this is one way how they try to market a new
product by saying its bug free and it won’t malfunction like the last product did
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Consumerism
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It affects the
marketing techniques of both businesses because now they must ensure that the customers best
interests are a priority all times are taken into consideration when marketing the products they sell
and distribute
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This
also means both Apple and Coca Cola must make sure that everything that they use on
advertisement and other ways of promoting is 100% true and correct, so that it isn’t misleading to
anyone
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Different legislations will affect the marketing techniques used by Apple and Coca Cola
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Coca Cola pride themselves on following
this act at all times
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This entails that they give every consumer a choice of beverages to purchase, a
balance because they encourage that all products are consumed/used in moderation, an honest
approach is used so all marketing and sales activity is transparent and honest and finally they don’t
market any products to children under the age of 12
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Apple also must follow this as well because all products must be if a high
and satisfactory quality when first given to the consumer and all products must be sold as described
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Apple’s ways of marketing their product will be affected by the Consumer Protection
(Distance Selling) Regulations 2000 because if they sell a product through their website they must
give clear information on the business as a whole (a possible introduction to the business)
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Also how long the delivery process will be this includes times and dates of
delivery and possibly delivery options such as standard or first class delivery and finally the business
must ensure the customer has a right to cancel the purchase at any time up until the purchase has
been made
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Acceptable language may limit how Coca Cola and Apple market their products and the marketing
techniques they use because of many reasons for example they have to try and not offend any
customers
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In addition to all these factors, if the business pokes fun at any religion or mocks
peoples beliefs this may offend certain customers, also if the two businesses decide to market their
products using somebody who is posing in place that isn’t regarded as un-safe or if the person is
positioned in a demeaning way then they may find that offensive
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The ASA have the power of a lot of things for example
many newspapers up and down the country and magazines, any advert that is outside, promotions
on screens which include Television advertisements
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However the ASA can submit a request which states that they would like the
advertisement to be taken down or removed but this is not legal
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The ASA follow certain guidelines which will have an effect on the techniques used by
Apple and Coca Cola because they must take into consideration these guideline prior to using the
marketing techniques and the guidelines are if the marketing techniques used and if the
advertisement is fair to competition, if it’s honest, responsible, decent and legal
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Good and Bad Corporate Citizens
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The reason being is that both businesses will want to be branded as a good corporate
citizen because it gives off good long lasting impression to new and existing customers
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It will limit the marketing techniques used by
Apple and Coca Cola because both businesses will not want to be branded as bad corporate citizens
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If they fail to do this in their marketing techniques the
customers may pay no attention to the ways which they both market their products and then may
look elsewhere to the competitors of the businesses
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Evaluation of Coca Cola
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Overall I believe that Coca Cola does apply these techniques very
effectively and very successfully
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Coca Cola applies the technique market penetration to the marketing of its products very effectively
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The way they do is great because as soon as the Coca
Cola advert comes on near Christmas time that is when many people think the Christmas season is
upon us
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I can conclude in saying that
Coca Cola do apply the technique market penetration to the marketing of its products very
effectively and successfully
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The success has shown when in 2010 Coca Colas sales increased
by 17% from the previous year and this was down to Coca Cola exposing their product in developing
countries which haven’t had Coca Cola exposed there before
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I can conclude
in saying that Coca Cola use this technique very well and the success that they have received from
applying this technique shows just how well they apply it to the marketing of its products
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I believe this is the technique which Coca Cola apply the best because they
have done it so successfully and consistently
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The different sized bottles which they released are still sold to this day as well as
the different flavours this shows how well Coca Cola have mastered this technique
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Coca Cola also apply both types of diversification to the marketing of their products
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The
merchandise that Coca Cola made and distributed has become quite popular with many people
round the world as you see people wearing Coca Cola t-shirts quite regularly
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It also markets the original Coca Cola beverage
because people will see the Coca Cola logo and writing on the unrelated products and it may make
them want a Coca Cola beverage
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I can summarise in saying
that Coca Cola applied the overall technique of diversification quite effectively but there is still room
for slight improvement
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It’s applied with great success because of
how well they have made certain features of their products important to the customer and that the
customer feels these features are important
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They’ve also applied this
technique very well because how well a business positions its products determines the life of the
products, and Coca Cola has been around for years therefore they must have applied this technique
successfully
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Coca Cola also apply the technique relationship marketing to the marketing of its products
very effectively
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What I think Coca Cola do well is that that they target certain groups
to establish a relationship with, for instance they target women when wanting to market their range
of Diet Coke products and they have established a very good relationship with a lot of women
around the world because they would rather buy a Diet Coke rather than a regular Coca Cola
beverage
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Transactional marketing is another technique which Coca Cola apply to the marketing of their
products
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They use this technique very effectively
because people will purchase their products on a daily basis this meaning the sales targets will be
met regardless of who makes the purchase
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I can summarise overall and say that
Coca Cola apply all these marketing techniques very effectively and successfully and that success is
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shown by how they have become the market leader in the carbonated beverage world and a
worldwide known brand and business
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One of the other
aims that Coca Cola have is that they want to offer the world a wide range of drinks which anticipate
and satisfy customer’s desires and needs
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Transactional marketing also contributes towards the achievement of the aim and
objectives of Coca Cola because of the aims and objectives set by Coca Cola is that they want to
ensure that the long term return to the shareholders is as big as an amount as possible
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Another
one of Coca Colas aims and objectives will be to make a profit at the end of the financial year and all
the techniques that I have names will contribute towards this because all the techniques have the
overall plan to make sales and to make money
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It will contribute towards achieving this because the life of a
product depends on how well the business positions its products therefor Coca Cola will want to
ensure that they get product positioning right so that they can maintain their place as market leader
of carbonated beverages
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This will contribute to making a profit because
market penetration is a lot about making revenue so this will help towards achieving the aims and
objectives
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Recommendations on how Coca Cola could improve their marketing techniques
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They can improve the way they apply the technique market penetration by
advertising their product in different ways to appeal to their current range of customers
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Coca Cola could improve on the way which they
apply the technique market development by having a pop up stall where people can go and try Coca
Cola for the first time but they could do a few things differently like they could try and expose their
products in different countries
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They could
do a few things differently as well for example they could do something similar to what Walkers do
and trial 5 or 6 different new flavours of Coca Cola and get the public to vote for their favourite
flavour
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For example they could try to re-launch the water that they
attempted to launch a few years ago
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Coca
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Cola could improve the way they apply the technique relationship marketing by establishing a better
relationship with different groups of people and they could do a few things better for example Coca
Cola could try and do something that gives something back to the community and get all the
members of different communities involved in order to establish a good relationship with all
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In order
to generate more sales by using transactional marketing Coca Cola could have a competition where
when you but a bottle one of Coca Colas you receive a code where then you are entered into a draw
to win a prize, this may give people the incentive to buy Coca Cola

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