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?
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....