Marketing in a Business Organization

Marketing in a Business Organization
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(March 31, 2012)

Marketing in a Business Organization
Introduction
Marketing is the process by which entities, businesses or organizations capture value from their customers by promoting the sale and distribution of a product or service. It is the whole process of capturing the attention from customers regarding the product or service provided by a business. Every organization needs to have a strong marketing department to ensure that proper marketing is done with an aim of capturing a large number of customers to withstand competition from other related organizations. Competition among organizations is healthy as this ensures high quality goods and services which are of benefit to the consumers (Federal Trade Commission, 2012). This is where good investment in marketing comes in. Spending heavily in productive marketing means that many customers are made aware of the goods and services provided by an organization which is vital in decision making. This paper seeks to analyze the Principles of marketing needed to be understood by managers in order to develop and implement effective marketing practices.
Main Body
Coca Cola is one of the biggest international companies. It is an American based organization and it is widely known for its non alcoholic beverages (The Coca Cola Company, 2012). Its success in the international market is due to great venture in marketing of its products. It faces stiff competition from another non alcoholic company known as Pepsi. However, Coca cola has an upper hand in the industry and this is brought about by its policies and tactics regarding marketing around the globe. It has ventured into both rural and urban markets attracting large numbers of customers for its wide range of products. The success of the company is brought by implementation of effective marketing practices by its managers which are applied with a consideration of the social, psychological and ethical factors which have a direct impact on its market.
There are various principles of marketing which are vital to any organization in dictating the sale of its products and services. An organization like Coca Cola has to adhere to these marketing principles to ensure a well promising future and long-term existence in the market. The following concepts are a guideline to an effective marketing practice.
Market Segmentation
Market segmentation is the identification of groups of customers which vary from each other and working towards satisfying them equally in regards to their needs (Internet center for management and business administration, 2010). The non alcoholic beverage industry run by The Coca Cola Company should incorporate this concept into their marketing strategy. It’s necessary to identify and understand their different customers for their different commodities and work in satisfying their needs. Mass marketing and target marketing are two ways market segmentation is carried out. Mass marketing involves treating the customers as a homogenous group and marketing to them as one group. This is not the correct move towards marketing since customers have different demands of the commodities. Target marketing involves marketing different products to different customers according to how they need them. This is the efficient method in marketing because the needs of the customers are met leading to attraction of a bigger market (Internet center for management and business administration, 2010).
Marketing Environment
Marketing environment is a factor in business marketing which requires attention since it affects the business performance. It is a component of business environment and it involves exterior factors which affect the operations of the organization (gb3group, 2011). The Coca Cola Company is a big organization which influences the environment in which it operates. Small businesses can not influence the environment in which they operate in (Keohane, 2007). Marketing micro-environment are factors which interact with a company resulting to a production of certain product as dictated. There are internal and external market micro-environment factors. Internal micro-environment factors are factors which arise internally from the organization. They include the employees, the company’s vision and marketing integration. External micro-environment factors arise from outside the company and they also interact with its performance. The factors include customers, the public and competitors (gb3group, 2011). Business companies should study the trend in their marketing environment in order to create effective plans on how to market themselves.
Marketing a New Product
Marketing a new product in a business involves investing more in the marketing departments, coming up with new marketing strategies and working hard to convince new customers that the new product or service is of great quality. The first step in a new product for a company is to identify its importance to the consumers (Gannon, 2011). A new product can only thrive in the market if only it meets the demands of the consumers. If the company’s management studies the market and identifies a favorable environment, the next step is to manufacture the product and market it largely to its potential customers. A new product in the market should be availed to the consumers at friendly prices as a way of attracting customers. Interactive and acceptable ways of advertising the product should be used so that trust is won among the customers regarding the company and the product.
Competition
Competition in business organizations is a daily experience and cannot be avoided. The Coca Cola Company experiences stiff competition from its counterpart Pepsi which is also a non alcoholic beverage producer. With such expected competition among organizations, better and high quality products are produced and this is an advantage to the consumers. It results to innovations and better methods of production are used (Federal Trade Commission, 2012). Much competition also forces the managements of organizations to come up with new methods of marketing that will earn their products or services a good reputation among the public. Healthy competition leads to identification of the needs of consumer’s hence new products are manufactured to meet their demands (Federal Trade Commission, 2012). A good marketing department is able to cope with competition from other companies by coming up with better strategies and marketing methods as dictated by the stiff competition. The government is forced to intervene whenever competition is not healthy as in not operating well.
Product Life Cycle
A product’s life cycle is the period in which a product exists in the market starting with the first day of its launching to its final withdrawal (Komninos, 2002). In the Coca Cola Company, its major beverages have existed since its day of inception. However many of its other products have been on and off the market. Demand by consumers dictates the existence of products in the market. Highly demanded products exist for long because of many and readily available customers. Products with short life cycles are characterized by a low demand in the market. Well marketed products attract more custo...