Marketing Consumer Behavior

This document discusses the impact and importance of promotional methods, channels of distribution, and customer services in marketing consumer behavior. It also explores the pricing strategies and variables used by Coca Cola Company to influence demand in the market.

Running head: MARKETING CONSUMER BEHAVIOR: 1
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Marketing consumer behavior: 2
Coca Cola Company produces products of high quality. For the company, quality is not just a
measure and what the products taste but is what the customer see (Coca-Cola Australia, 2019).
Quality is the major issue that in every procedure during the whole process of making beverages,
food and the material from which the products will be packed. This characteristic makes the
clients/customer to be attracted by the goods and products that are produced by the company.
Coca-Cola company uses three pricing strategy to influence the demand in the market.
These pricing policies are namely; market price, skimming and market penetration. These pricing
strategies offer a variety of prices to the customer at the market. For instance, market skimming
is a pricing policy where Coca-Cola set the price high when the item is novel at the market and
the consumers are not certain about the product quality. The aim of this strategy is for the coca
cola to get maximum revenue before the customer gets used to the products, for example, Coca-
Cola no sugar brand. The company also uses market price where the company sells its products
at the same price as its competitors. This is done for a product to continue thriving in the market.
Finally, the company uses a penetration pricing strategy. This strategy prices the product brand at
a low price because it is new but as the time elapses the company starts to increase the price. In
the beginning, the company gets very little profit. This is mainly done for the product to thrive in
the new market.
Pricing variables. In order for the company to increase the demand in the company, the
company gives variable pricing to customers such as discount percentages and advertising their
products through their social media platforms and other traditional channels of communication
such as newspaper and television, for example, taste the feeling of Coca-Cola. This process of
discounting and advertisement enable the customers to purchase more of the company’s product
hence increasing the demand in the market.
Analyze the impact and importance of the following;
a) Promotional method
Promotion of products in the market enhances the buying behavior of the products. When the
promotion method is used together with advertisement and personal selling the product brand
stands a chance of breaking through the market. Coca Cola Company uses sponsorship as a
method of promoting and because of the quality of its products it has been used by sport and
music industry in the world. In the process of promoting this industry, the company is most
likely to attract customers from the intended market location.
b) Channel of distribution
Channels of distribution refer to the process of making goods available to the target
consumers. Before distributing the products the company must assess the demand of the product
in a specific demographic location or else it will sell nothing. Coca-Cola uses wholesalers and
retailers as intermediaries to make their products available to the market. Also, the company
takes part in supplying their product to the target market. This process makes the company
products available to the right consumer.

Marketing consumer behavior: 3
c) The level of customer services provided
In the market, there are three levels of customer services provision which include the
customer expected, desired and finally the anticipated level. The expected level is the minimum
quality level that is expected from the product the coca cola provide. The desired level refers to
the level in which the customer desire the company’s services level to be. On the other hand, the
anticipated level refers to the situation where the company imposes regulation to offer something
to the customer for them to be happy. For instances, there is no returning of money to the
customer after the item is open but the company returns the money to the customer because
he/she is a regular buyer.
The main pressure to coca cola to win the customer base and establish a long-lasting
relationship is via promotion opportunities that the coca cola take to their customers with
crediting their community and sports sponsorship. This activity is reaching the young generation
of musician and footballers. They also establish communication with the community via
sponsored player and musician which by the end promote the company’s products.
Market mix (4P)
Products. In the market, consumers satisfy their needs and want through products. For
instances, they satisfy their needs with Coca-Cola products such as Coca-Cola diets. The quality
of a product will influence its demand for the market. For instances coca cola produces products
of high quality in order to stimulate the demand in the market product of low quality are
disregarded by the consumers hence they have low demand.
Price. Price refers to the amount of money a product is sold. Price should always be seen
as a good presentation of the product’s value. Therefore the company does not sell its product at
a low price because the customer thinks the product is of low quality. Also, the company does
not charge the product high price because the consumer sees the product as being overpriced.
Promotion. This refers to the process of letting the consumer know that the product
exists. Coca-Cola uses a number of ways of showing consumer their products. This method of
promotion includes advertisement, personal selling, and percentage discount.
Place. In marketing, this refers to the process of distributing products to consumers.
Coca-Cola transports its products from where they are manufactured to where they are required
by the consumers.
External factors influencing the business and their impacts
Economic influence. When the country is in financial crises it may influence the
purchasing behaviour of customers because of the unemployment. This means that the consumer
does not have money to buy the company’s product.
Political influence. For instances, if coca cola was to support one political party over the
other, some people will not buy products from the company, therefore, reducing the numbers of
products sold.

Marketing consumer behavior: 4
Before producing any product coca cola need to consider the consumer priorities, needs
and performances then start looking at ways of making products that will satisfy those needs. For
example, the company identify a segment of market which require stevia products with no
sugar. When the company fails to analyze the needs of the consumer it will produce products that
will not be purchased.
New products or services in the market must align with the marketing objectives so that
the product can thrive through the market. Also for it to succeed in the market it must address the
need of the market segment. Finally, the product must be distributed to the target consumer.
For the market to continue to exist the four main components of the market mix must be
playing in. pricing must be able to reach out to the objective of the company in the market place.
Also, the product should be made available to the consumer and satisfy their needs. From my
critical thinking products is the most crucial component because all the other components depend
on the product for them to function.

Marketing consumer behavior: 5
Reference
Coca-Cola Australia (2019). New Look - Same great feeling. Discover our brands and stay up to
date with the latest news and special events. (n.d.). Retrieved 10 May, 2019 from
https://www.coca-cola.com.au/en/home/