Concepts of Marketing Management in an Organization - Essay Example

Marketing Management Name Institution Date Table of Contents Table of Contents 2 Abstract 2 Introduction 3 Literature Review 4 Methodology 5 Analysis of Concepts 6 Strategic Options 6 Market Analysis 7 Marketing Mix Analysis 8 Product Life Cycle Analysis 10 Understanding of Buying Behaviors 11 Marketing Communication Mix Analysis 12 SWOT Analysis 13 Channel Management 14 Conclusion and Recommendation 15 References 17 Abstract Marketing management is very essential for any business organization. This is because it entails aspects that guide a business towards the desired success. Marketing management is achieved through proper customer relations which in turn, lead to profits maximization for the organization. The paper explores the concepts used in marketing management and how they are used for the purpose of making profits as well as satisfying the customers. This is in relation to Coca Cola Company which focuses on the manufacture of soft drinks both locally and internationally. The needs of the customers have also been discussed in the report and it mainly acts as the benchmark for the marketing concepts used by the company. The approach used during the research was mainly interviewing the marketing team of the company for the purpose of obtaining relevant and accurate data. Literature review was also utilized during the research. The report was able to establish that the company utilizes eight of the most important marketing concepts which have led to the success of the company. It was established that the company has been able to satisfy its customers through proper marketing and coming up with products required by the customers. The report concludes by stating that the marketing concepts are important in terms of achieving the aims and objectives of a business organization. The report also recommends that the company should put in place measures to exploit new markets and also enhance the product lifecycle so as to satisfy the customers better. These are concepts that are important in marketing and lead to success of an organization as discussed in the paper. Introduction Marketing involves delivering the needs of customers satisfactorily with the aims of making profits (Gary, 2008). The marketing process is complex in nature and it involves various parties. The main parties are consumers and the sellers. Marking entails various components and concepts that require a lot of attention and analysis for a company or business enterprise to succeed. The market environment is an important consideration before engaging in the marketing process. This involves thorough analysis of all the stakeholders and players in the sector. Strategies are also important during marketing as it determines the ability to influence customers and satisfy them. Buying behavior is also an important concept during marketing as it acts as a guide to the process. The buying behavior of customers is an important determining factor for the success of any product in the market. The marketing process also involves business to business and the use of information technology also plays an important role during marketing. The marketing concepts are mainly for the purpose of ensuring that the business organization or company achieves its main goals and objectives which in most cases is customer satisfaction. The paper thus discuses the marketing concepts in relation to Coca Cola company which is among the most successful multinationals due to its effective marketing concepts (Coca cola Company, 2012). Literature Review According to Adcock (2001), marketing management is considered as one of the major elements of business. This is because it focuses on the customer relations and the operations of a business organization. Emphasis in this topic is however, on the customer satisfaction and the means of attaining it. The marketing management mainly emphasizes the need for business to shift from production to focus on the customer needs and satisfaction. With this, the marketing management concepts explain how customer focus can be profitable to the organization. The marketing concepts also emphasizes that the only way of achieving organizational goals and objectives is through customer satisfaction. The marketing concepts thus interconnect a variety of issues that are applicable during marketing. The concepts also ensure that the business enterprise becomes profitable while the customer gets satisfied or they receive value for their money (Chekitan, 2005). Methodology Methodology section elaborates on the techniques that were employed during the research process for fact findings. Qualitative and quantitative means of data collection were employed to come up with adequate and trusted information. Literature review was one of the methods that were used. It entailed reading credible literature about the organization; how the entire system manages its day to day operation. According to Armstrong (2006), the importance published sources such as articles in referred journals is that there is already application of quality control and therefore the sources can be relied on. However, evaluation is always necessary. The marketing players also provided the relevant information. This form of information was received through interviews carried out by the researcher. This method involves asking questions and receiving instant responses from the respondents. The choice of this method was based on the fact that first hand information is acquired. They are flexible, accessible and point out essential facts. The management of Coca Cola Company was interviewed for the purposes of obtaining information regarding how the processes are carried out in the institution. Analysis of Concepts Strategic Options The strategic options involves the long term plans the company pts in place for the purpose of marketing its products. This is considering that a company may have a variety of products which it intends to benefit from. The products may be diverse and intended for different types of consumers. A strategy has to be put in place to ensure the product is successful in the market. This is also considering that competition may be stiff in the market and thus affecting the sales of the product. In other instances, a company may come up with new products that it intends to supply in the market. This requires a lot of planning for the purpose of ensuring the customers purchase the new products. The process of coming up with the long term plans of ensuring the product is sold in the market is the strategic plan. Without a strategy it may prove difficult for the company to successfully influence the consumers to purchase the products. Coca Cola Company has a wide range of products in the market. Most of the products have attracted huge number of clients and thus making the company quite successful. The company also introduces new products in the market fro time to time and using proper strategies it performs well in the market. This is despite competition the new products usually face. In order to promote its products, the company usually caries out massive advertisement campaigns whenever it launches any new product. Advertisements for the existing products are also launched from time to time through the media. Sales promotions are also held by the company in a bid to attract more customers and hence wining their loyalties. Campaigns using sales letters and posters are also important strategies that the company uses to popularize its products. On the other hand, the company diversifies its products as a strategy to increase its popularity and hence increasing the consumption of its products. The main strategies of the company are however based on customer satisfaction which the company has perfected over the years. Market Analysis The market analysis is mainly the general profile of the market. It includes the volume or the size of consumers for a certain product in the market (Al Halborg, 2001). The analysis is mainly for the purpose of ensuring a company makes proper marketing decisions which are relevant to the market. The analysis involves the trends of a certain product in the market and how the consumers have perceived it. The trend may also focus on the global economic situation and he forcers affecting the market environment. The customer preferences and behavior is also focused on the market analysis for the purpose of coming up with products that best suits the customers. The analysis also focuses on the roles the stakeholders and player have in the market. The market analysis monitors how a certain product may perform in the market or the number of customers who may be interested in the product. The process may involve a thorough research about the market using various means. The data collected from the research is analyzed to give a clear picture of the market. The research may also involve primary and secondary data (Paliwoda, 2009). Coca Cola Company has a dedicated team of researchers in the marketing department. Their main duties involve the analysis of the market through data collection. The data is then analyzed b y the experts in the team to determine the real market situation. Through market analysis, the company is able to develop new products in areas with potential and also supply existing products in areas that requires more products. It is also through market analysis that the company is able to know how much it should produce and in which regions. The analysis of the market is also important to the company since it enables it take appropriate measures to deal with any uncertainties or global economic crisis. The rate of competition in the market is also determined through market analysis by the company. This plays an important role in coming up with strategies of beating the competitors. Customer satisfaction survey is also done by the company as part of the marketing analysis for the purpose of determining the performance of the products and obtaining suggestions for improvements. Marketing Mix Analysis The marketing mix analysis is comprised of the tools and approaches that are used in combination for the purpose of achieving the marketing aims and objectives (Rakesh, 2005). It mainly includes four components which are price, product, promotion and place. The marketing mix analysis is manly viewed in two perspectives which include that of the supplier and that of the consumer. The product manufactured a company has to win the acceptance of the clients for the process to continue. The company thus focuses on the quality while the customers determine whether to accept it or not. The price is also very important once the customers have accepted the product; the price has to be affordable for them to purchase it. Poor pricing may lead to the failure of the product to attract a wider customer base. The supplier must therefore focus on the affordability depending on the customer base. The place where the products can be found is very important t. This determines the availability of the products to the customers. If the products are not readily available to the intended customers, then the company will not benefit as the customers may not purchase it. Promotion on the other hand plays an important roe in ensuring that the customers are aware of the products. The awareness includes the quality and contents of the product. These factors are thus considered important components of the marketing mix (Kottler, 2009). Marketing mix is an important t concept at Coca Cola Company as it plays an important t role in the marketing process. The company always ensures that its products are safe for consumption and are of high quality. This has won the acceptance of the customers and thus its high production. The new products from the company have also won the acceptance of customers due to the high levels of loyalty. The pricing of the products depends on the customers. Most of the products from the company are priced according to the level of income in the localities. This has made the products quite affordable in practically all the regions in the world. As compared to most competitors in the market, the prices of the products from the company are quite fair. Most of the products from the company are less than a dollar in most countries despite the high quality. The company also has various outlets and distributors in most parts of the world. This has made its availability quite easy. It is practically possible to find the products from the company in the most remote parts of the world. The availability thus boosts its sales and performance in the market. This has been made possible through a strong network of distributors. Promotions are always run by the company from time to time to create awareness of the product. In most instances, the promotions always run in conjunction with major world events like sports. An example being the promotion during the football world Cup held in South Africa. Product Life Cycle Analysis The product lifecycle is an important concept of marketing. It mainly deals with the lifecycle of a product from its initial development period to its decline period. This is due to the fact that some of the products may receive a high acceptance during its development stages but it becomes less popular as time goes by (Menon, 1999). This may be attributed to several reasons which may include competition in the market or changes in the consumer behavior. The product lifecycle analysis is thus used for the purpose of analysis how long the product will last in the market before it finally declines. This cycle is important for the purpose of planning when to improve the product by making changes or rebrand the product. The product lifecycle is also useful for planning improvements to the products. The period at which new products should be developed after the decline of the older products is also an aspect of consideration in the product lifecycle analysis. Coca Cola Company is always very keen on the product dev elopement lifecycle. This is due to the fact that products that the company manufactures. Most of the soft drinks manufactured by the company has undergone rebranding and improvements over a period of time. However, some of the original products by the company have successfully maintained its quality and taste over a long period of time. Product development cycle is important for the company in terms of making improvements to the existing products as well as developing new products. The improvements made by the company also include addition of different flavors to the drinks. It is common to fid the products of the company under the same name but different flavors. This is mainly due to improvements as a concept of the product lifecycle. In this way, the company has been able to maintain the names of different types of soft drinks but of different flavors over a long period of time. New products have also been developed by the company after the existing becoming g less popular. This marketing concept has thus been very important for the company and it has enabled it maintain its brands for a long period of time. Understanding of Buying Behaviors The buying behaviors refer to the type of behavior portrayed by all types of buyers. This is because business can be transacted from a supplier to consumer or from one business organization to the other (Armstrong, 2006). The buying behaviors have to be understood by the business organization for the purpose of avoiding losses. This is because buying behaviors are influenced by various factors which may be internal or external. For most consumers, the social set up affects their buying behavior and it is for that reason that they cannot purchase one product or the other. Personal reasons are also factors to be considered as some consumers prefer products of their own taste. The economic situation may also influence the buying behavior during certain seasons or periods. It is common for most consumers to purchase less during harsh economic time. This is situation that the business owners have to understand. The culture of the people also plays an important part in influencing the buying behaviors. In some cultures, certain products are considered outlawed or rather not well perceived. The marketing managers should thus come up with means of ensuring their products are acceptable with a certain cultural setting (Lisa, 2006). Coca Cola Company fully understands the buying behaviors of its consumers. The company always ensures that it respects all the cultural issues surrounding the consumption of various products. The company manufactures a diverse rang of products which can be consumed in any part of the world and thus ensuring that its influence is worldwide. The company through its advertisements always focuses on the positive aspects of its products for the purpose of influencing the buying behaviors of the consumers. The advertisements in different counties are also closely linked to the cultural behaviors in the countries and thus a symbol of understanding the consumer behavior. The company also produces more products during certain season like the festive seasons in high quantity. This is mainly guided by the buying behaviors as the sales are expected to rise. However, during the cold seasons, the company does not produce much as most consumers prefer alternative drinks during the cold seasons. The understanding of consumer behavior has thus enabled the company to make wise marketing decisions during production and sale. Marketing Communication Mix Analysis Marketing communication mix is the methods of advertising, offering sales promotions, direct marketing, and personal selling used by the company to purse its marketing objectives. This is mainly for the purpose of communicating with the customers and influencing them to purchase the products of the company (Gerald, 2003). Advertising may include the use of media or posters. Sales promotions are mainly short term and are meant for the purpose of increasing g sales. This can be achieved through price reductions or discounts during the promotion period. Direct marketing involves a targeted customer base and the company deals directly with them by trying to convince the intended customers to purchase the products of the company. Personal selling on the other hand mainly targets individuals and it is done through direct contact with the customers. This may involve the services of trained sales personnel. All these methods are usually directed to customers for the purpose of increasing sales and hence more revenue. Coca Cola Company has various methods of communicating with the clients for the purpose of fulfilling its objectives of customer satisfaction as well as making profits. The company invests huge sums of money every year for the purpose of advertising through the media. The company has contracted an advertising agency to carry out the process by creating quality and creative advertisements. This is usually combined with sales promotion which the company runs almost every year. The customers may win certain prizes if they purchase the products of the company. This has made the company quite popular and thus enabling it fulfill its marketing objectives. The promotions in some instances also include price reduction and boosts sales. Direct marketing is sometimes done by the company at a lower level to ensure the products of the company are popular in remote areas. The methods have worked well for the company as it has been able to achieve its marketing objectives over the years. SWOT Analysis SWOT analysis is mainly the analysis of a company in terms of strengths, weaknesses, opportunities and threats. The strengths of the company mainly involves the characteristics or unique factors within the company that gives it an advantage over the competitors in the field. The weaknesses on the other hand comprises of the characteristics that makes the company weak as compared to the other competitors and thus exposing it to risks of losses. The opportunities on the other hand are the external chances in favor of the company and it may exploit it for the purpose of making more profits. The threats on the other hand are the external elements that may cause problems to the company. The threat in the market environment may include competitors or new establishments in the market. SWOT analysis is mainly used for the purpose of matching and converting. The matching involves the strengths and opportunities while the converting involves weaknesses and threats. In cases where the company cannot convert weakness and threats to opportunities and strengths, then it is advisable to avoid them (Hill, 1997). Coca Cola Company has a lot of strengths in the market. The company has a wide range of customers allover the world as compared to most of its competitors in the industry. This wide following is an advantage as it is always easier for the company to introduce new products and receive high sales due to the loyalty the customers have on the product. The company is also stable financially and thus low risks of making huge losses. However a weakness exists within the company as sells expensive products in some regions as compared to its competitors. This reduces the revenue for the company and thus exposing it to some weaknesses in such regions. Despite the weakness, the company has huge opportunities in areas that has not been exploited. Due to the popularity of the company and financial stability it can expand its business in some parts of Asia and Africa. Emerging beverage companies are however a threat to the company in some areas during certain seasons when the products of the company registers low sales figures. Cheaper beverages which are being introduced in the market also rivals the products of the company and thus threatening it. Channel Management Channel management mainly involves the formalized programs created by a company for the purpose of selling and servicing the customers. Channel management also involves the segmentation of the characteristics of the clients (Angie, 2005). The segments may include the buying patterns and their needs. This is then followed by setting up goals for each of the segment for the purpose of satisfying the customers as well as meeting the objectives of the company. Policies should then be put in place for the purpose of guiding the segments and achieving the required goals and objectives. Products for each segment should also be clearly defined so as to ensure the products are well developed to meet the required standards. Support programs are also important for the channels and should be clearly designed to avoid any errors whenever they are being used. The segmentation process may also include dividing the products according to special needs of the consumers. This may include adults or children due to the nature of the product. Coca Cola Company has a proper system of channel management. This is because its products are of different tastes. The brands for the company mainly target certain individuals. Some of the products from the company are meant for adults due to their bitter taste while others are meant for children due to their sweet taste. Gender is also targeted during most of the advertisements as some of the products best suits women while others best suits men. However the company does not neccessarily indicate that the products are meant for certain groups. The market research from the company as well as the buying behaviors however suggests that the products are consumed according to the gender and sometimes age. Channel management is thus important for the company in terms of branding and managing its diverse products. Conclusion and Recommendation In conclusion, marketing concepts are very important in the operations of a business. The marketing objectives play an important role in achieving the aims and objectives of an organization. Coca cola company is successful be cause of utilizing the marketing concepts in all its undertakings. Through the marketing strategies, the company is able to determine the needs of the clients and hence satisfaction. The marketing mix is however the most important t concept of marketing for the company. Through a good marketing mix together with the communication mix, the products of the company are widely known and are also available in the market. This has played an important t role I popularizing the products of the company and hence its good performance in the market. The management of the company is also innovative in terms of marketing g as the company is able to come up with new product s which perform well in the market. It is recommended that the company should put in place measures to exploit the existing g opportunities in the market. This is mainly for the purpose of countering the weakness and threats that are emerging in the market. The company should also come up with new products that can be sold during the low seasons. This is due to the fact that the company registers low sales during cold seasons. The product lifecycle should also be enhance. This is mainly for the purpose of developing new products and attracting new clients. This is because some of the product s from the company have been in the market for too long and requires rebranding. Marketing segmentation should also be taken serious for the purpose of developing a wide variety of products for different consumers. This will ensure that all groups of consumers are able to enjoy the products of the company. References Adcock, D, 2001, Introduction: Marketing: principles and practice (4th Ed.). p. 15, Retrieved on 14 August 2012 from Al Halborg, C, 2001, Marketing: principles and practice. p. 16, Retrieved on 14 August 2012 from, Angie, Y, et al, 2005, Consumer Orientalism: Images of Asian/ America women in multicultural advertising, journal of qualitative sociology, vol. 28, no.1, excerpts pp. 4-10. Armstrong, M, 2006, A handbook of Human Resource Management Practice (10th edition), Kogan Page, London. 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