Sales Manager FMCG Company,
February 12 2021.
Mr. Rorbert Rukwaro,
Chief Executive Officer,
RE: ATTACHMENT OF A BRIEF ON MARKETING APPROACHES.
Below I have attached a brief on marketing approaches in understanding consumer behavior. This is my original and accurate work.
COCA-COLA COMPANY, KENYA.
MARKETING APPROACHES AND CONSUMER BEHAVIOUR
Coca-Cola Company is an American beverage corporation located in Atlanta, Georgia in the United States. The Coca-Cola Company mainly deals with large scale manufacture of nonalcoholic beverages. In a bid to fully offer all production services it also wholesales, retails, supplies and markets its beverages. Coca-Cola offers a variety of beverages which includes; water, tea, coffee and soft drinks such as Fanta, Sprite, Coca-Cola and Coke,
Primary Target Audience: The Administration and Employees of Coca-Cola company.
Secondary target audience: To our Wholesalers, Retailers Marketers and Suppliers.
The main objective of this brief is to make the audience aware of marketing approaches that will aid in making it understand consumer behavior of our products. This information is noble and greatly contribute to the success of our company. We want our products to always pick up the market as soon as they are out in order to increase our sales retain our customers.
Expound on marketing approaches that will ensure Coca-Cola remains number one brand in the market.
The following are marketing approaches that will enable Coca-Cola retain their customers and enhance its sales;
• Market segmentation- segmenting consumers into groups in terms age, quantity consumed per brand, consumption per region and periods of high demand is vital. It enhances precision in data collection and analysis.
• Analysis of competitors-for soft drinks industry there is high threat for substitute products for example juices and energy drinks. Energy drinks are now becoming the greatest threat since they have proved to be healthier than soft drinks. Caffeine in soft drinks has been advertised by companies producing energy drinks as not being healthy an increase in number of varieties is also a threat as it changes consumer tastes. Competitors analysis as a marketing approach provides such useful information about consumer trends.
• Campaign analysis-it aids in understanding how consumers respond to your campaigns. Since coca-cola started it has rapidly expanded its business through strategic campaigning. This has made it become the world largest beverage company. Campaigns basically increases awareness to consumers about the advantages of acquiring our sevices therefore increase demand.
West, L. (2015)Whatis the Problem with Soft Drinks?About.Com website, from http://environment.about.com/od/health/a/soft_drinks.htm
Amine, L. S., & Raizada, D. (2015). Market Entry into the Newly Opened Indian Market: Recent Experiences of US Companies in the Soft drinks Industry. InProceedings of the 1995 Academy of Marketing Science (AMS) Annual Conference(pp. 287-292). Springer International Publishing
Armstrong, G., & Cunningham, M. H. (2012).Principles of marketing. Pearson Australia.Coca-Cola Company (2016). About the Company.Dataretrieved from http://www.cocacolacompany.com/stories/Coca-Cola-sponsorships/.
CALL TO ACTION
Coca-Cola to design strategic marketing approaches and action plan. The main objective of the newly designed marketing approaches is to ensure the company achieves its goals and maximize its profits. Action plan to stipulate various mitigation measures to combat utmost challenges facing the company.
The action plan must include the following;
• Vividly outline its objective and targets
• Address the issues in a proper and realistic way
The marketing approaches highlighted in the document attached are re necessary for the runing of this reputable Company. A feedback will be highly appreciated.
When a consumer is faced by a want or a need an urge ocurrs within him or her to act torwards fulfillment of the want .so he or she is motivated to search for information on how to get the want
It’s a stimulus that gives opinions to satisfy a silent motive.In a market set up,prices, packaging, advertising and styling will serve as cues to help consumers fulfill their needs in product-specific way.the purpose of consumers is also to direct when they consistent with their expectations.
It simply signifies how coonsumers react to motives and cues.the response a consumer makes greatly depend on the previous learning wich intern depends on how related responses were reinforced previously.
Contextually reinforcement implies a negative or positive outcome that influences the likelihood that a specific behavior will be repeated in the future in response to a specific cue or stimulus.
this attitude helps consumers justify what they are aware is wrong but choose to ignore despite the repacations. Ego-defensive attitudes priotizes on deeds that conserves and boosts one’s own self-esteem. For instance someone who is addicted to alcohol will chose alcohol as a stress reliever compared to exercises sleeping and listening to music.
Knowledge is important in making decisions .As a function of attitude it aids consumers to make a buying decision based on what products and brands they are well conversant with. Lets consider coca-cola and pepsi companies which deal in similar products namely soft drinks.if I am used to coca- cola drinks and I love their taste and quality, I will always go for their drinks even if pepsi comes up with a new drink which is more tastier and zero health effects.
Value express function
This function of attitude enables consumers to illustrate their core values.beliefs about themselves and beliefs about others. Consumers values are important in making decisions about goods to buy. For instance lets consider a consumer who values good health when buying drinks and beverages. He or she will prefer bottled water and energy drinks as soft drinks contain caffeine which is harmful healthwise. the cumulative effect of caffeine in our bodies is harmful since it causes nervousness, restlessness and insomnia.
COGNITIVE EVALUATION THEORY
By Deci (1971-1975)
The theory majorly talks about the two types of motivation systems which are namely:
• Intrinsic motivation
• Extrinsic motivation
Intrinsic motivation It refer to motivation that is generated internally. In other words self motivation.This comes as a result of successful accomplishment of a job which was your own interest. Generally some one feels happy for completing a job.It does not depend on any external factors as feelings are internal. No reward is expected as a result of completing a task
Extrinsic motivation A reward is expected for completing a job or a task. This reward offered is was generates motivation in this case.Rewards can be in terms of money, bonuses,and incentives.Extrinsic motivation also results from positive feedback,improved working conditions in the persons enivironment.
The theory explains the effects of extrinsic factors on intrinsic motivation. It states that when one gets a reward for any task done,then the intrinsic motivation derived from the task is reduced.
It also says that extrinsic rewards reduces the overall motivation earlier driven by intrinsic motivation. The reason behind this reduction is loss of control which an indidual experiences when an extrinsic motivation factor is introduced. This causes the focus of an individual to change from input to output.
The theory also approves that there is a possibility of motivation to change from extrinsic to intrinsic for instance one may be given a task to execute with some extrinsic motivation accompanied but later he or she start liking the task and continue doing it. A typical example is a teacher may ask a student to read a novel because it’s going to be set in examinations but after that the student finds it interesting reading novels.
From this theory we can assume that extrinsic rewards motivates employees. However the theory contradicts itself that extrinsic motivation reduces intrinsic motivation.
Extrinsic motivation can be verbal or tangible. Verbal motivation comes from positive comments about the task done while tangible motivation can be as a result of money and incentives. The theory approved that verbal rewards live appraisals from supervisors are more effective.
The theory explains the concept of self-concordance as the degree to which people reasons for pursuing goals are consistent with the interest and core values.for example when one is doing a job he or she is interested it becomes fun.it advices that someone should choose a job based on intrinsic rewards not extrinsic rewards.