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Duality of Beer Marketing: Marketing to Consumers and Businesses - Term Paper Example

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The Duality of Beer Marketing: Marketing to Consumers and Businesses BY YOU YOUR SCHOOL INFO HERE DATE HERE The Duality of Beer Marketing: Marketing to Businesses and Consumers Introduction The beer industry is complex and dynamic, a business environment characterized by significance in marketing to outperform larger and smaller beer brands both domestic and international…
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Duality of Beer Marketing: Marketing to Consumers and Businesses
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Download file to see previous pages Diverse buyer segments and inability to differentiate product highlights the methodology by which major beer producers focus on brand establishment with consumers and businesses. The complexity of target consumers desired by large beer producers is too difficult to express substantially, as each brand in major beer producer product lines looks to target based on lifestyle, needs fulfillment, resource procurement, or other psychographic attributes known in key market segments. Consolidation of distribution practices, as one example, is generally done in this industry as a matter of cost reduction or cost improvement, marking the dynamics of the business-to-business marketing environment. Establishing a brand relationship with the business environment requires staying dedicated to logo presentation and utilizing a significant merchandising effort such as POP or distribution of free consumer promotional merchandise. This report took a qualitative approach to identifying the duality of beer marketing in this industry, focusing on consumer-based attributes and the B2B environment. Many of the competitive tools utilized by major beer producers are not highly publicized, likely as a product of the powerful reliance in this industry on promotion. However, there is substantial research evidence that it is the market itself that creates the necessity to segregate consumer marketing from business marketing to maintain competitive edge. The goal of major beer producers is to link brand professionalism or exploit brand equity with business customers while establishing connective consumer relationships as brand-building focus in this dimension of marketing. The Consumer Marketing Environment Michael Porter’s Five Forces Model of business describes the various externalized threats that impact successful business strategy. This industry is characterized by consumer buying power on the market as there are considerable threats of substitutes. Guinness, as one relevant example, understands that its product composition is unique with diverse and differentiated flavor. Guinness is one of the only beer brands on the market that can rely on its product attributes to reduce consumer brand switching costs, thus threat of substitutes is minimized as compared to such brands as Miller Lite or Budweiser from In-Bev. Because of differentiation, Guinness maintains concerns over alcohol as substitutes (Oboulo, 2011), allowing Guinness to promote a certain consumer premium perception. Why is this necessarily relevant? It is necessary to understand the dynamics of the industry in order to illustrate the duality of beer marketing between major competition. Guinness is not as heavily driven by consumer sentiment on the market, having established differentiated brands of beer products. Guinness can then rely on brand equity in marketing strategy to achieve effective profitability with key markets. On the other hand, companies like Miller or In-Bev are concerned with customer relationship management and establishing lifestyle-focused principles in marketing to gain consumer attention and, ultimately, long-term loyalty. An inability to differentiate by product for the majority of producers strongly dictates the standard by ...Download file to see next pagesRead More
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