“How does an understanding of the influences on marketing contribute to business success?”
In this business report I will be discussing the importance of understanding the influences on marketing and how it will inevitably contribute to the business’s success. For example purposes, I will use Coca-Cola Amatil (CCA) as a case study to back up my statements. Firstly I will define and explain each influence on the marketing plan, including Factors influencing Customer Choice, Consumer Laws and Ethical Influences. I will then use relevant statistics and information on CCA to show how important the understanding of these influences is for a business’s success and survival.
Factors Influencing Customer Choice-
A psychological influence refers to the way we think, feel and reason when picking a product. It includes the way we perceive the product, how it reflects our personality, our lifestyle, attitudes and beliefs.
CCA enforces this factor into their marketing plan often. Many people choose to drink Coca-Cola Amatil products because they enjoy the product and what it represents. Usually words like ‘happiness’, ‘summer’, and ‘share’ are placed strategically within their many campaigns to reinforce this psychological connection. Each product has its own image, for example ‘Powerade’ attracts an athletic type, whereas a health conscious person may be attracted to another product, such as ‘Diet Coke’. CCA have purposefully manipulated these add campaigns to capture the customer through psychological means.
Understanding this factor allows businesses to manipulate the product to attract the target market. Product features can be added or removed, colour swatches can be developed and text can be altered to entice and hold on to customers, all from an understanding of this key influence.
Sociocultural influences refer to the influences from the society or culture of which the customer is in. It refers to the social class, family, roles or status, to name a few, of the customer.
‘Cherry Coke’ is a product advertised by CCA, which entices the younger generation (between 8-15) who enjoy sugary drinks. This is due to the other children they are surrounded by and the impact that the other children’s preference has on their own. Many products such as ‘Coke- Original’ and ‘Mother’ are tactically advertised at lower class to middle class customers, where as ‘Mount Franklin Sparking Water’ and ‘Natural Springs’ are aimed at upper middle class to upper class customers. CCA intentionally advertises these drinks in certain ways to widen their market of appeal and inturn increase their profit.
The understanding of this factor is extremely important to the success of a business. Businesses need to accurately monitor changes in society constantly to keep up with the newest trend, fads and likes and dislikes of the group focused on. Changes in social structure will also have an effect on the product’s success. One change in society that has shown to be extremely profitable from businesses, including CCA, who alter their product’s to allow the change is a ‘healthy life style’. This has also tailed a strong reaction to advertisements of products with copious amounts of sugar to children.
An economic influence refers to the changes in spending and income in the economy. With a growing economy comes high spending confidence, with low confidence brings more saving.
CCA has been monitoring this influence and even though the consumer market is relatively flat at the moment, CCA expands its products into markets that are increasing. There has been a strong growth from the Indonesian and PNG businesses with volumes growing by 12.9%, and with the successful execution of ‘ProjectZero’ capital investment programs continue to delver positive results. They have also taken the fact that...
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