For the performance of any businesses products, the products need to be marketed so that they can revenue to. The marketing environment due to its positioning (around the organizations) bears a great influence on the organization. In stamping this influence on the organization, the components of the environment are normally evident. These are the macro environment, micro environment and the internal environment. In this essay, my main component of interest in the micro environment and the influence it possess on the activities of soft drinks marketers. The elements of a micro environment are very close to the company and affected the companies’ ability to serve it customers. These elements greatly determine the modes of advertisement and channel s of distribution use d by the marketers to ensure that potential customers get to know of the existence of the drinks and the drinks actually reach them, this way the impact on the way the marketer conduct their activities in pursuit of realizing great value and benefits to these customers.
The elements of the micro-environment
According to Kotler,P, & Armstrong (2008; p25) the element of the micro environment are closely linked to the organization and directly influence the activities if the organization. In this regard they also closely influence the activities of the soft-drink marketers in reaching their customers and generating the soft drink giant large amount of profits (Vrontis, Kogetsidis, & Stavrou 2006: p 257). The elements or components of the micro-environment of the business are six in number and include the environment within the company or organization, popularly known as the internal environment and comprises of the campanile management personnel and their departments such as the manufacturing departments, marketing departments , the purchasing department, finance department, research ad development department and others; the intermediaries in regard to the companies marking activities who include all the individual and companies that provide their services in the distribution , promotion and selling of the soft drinks; the companies suppliers who include individual or companies that supply the company with raw materials in terms of goods and services that are very essential for the production of the soft drinks; the competitor; the Customers who make up five different types of markets for the soft drinks, consumers, government, industrial, resellers and international markets; and last the companies publics which comprises of individual or groups of people that can the affect the marketers ability to realize their objectives, such include citizens action groups, the government and media. Basically it is through these elements that the micro-environment of the company influences the marketer as they try to realize value for the company’s customers.
The mechanisms of influence of the elements
The company’s internal environment
The company on it own is a force that greatly influences the marketability of its products. The top management in the company plays a very significant role in coming up with the companies mission, expansive strategies, objectives, goals and polices (Kotler,P, & Armstrong, 2008: p30). In this regard they come up with policies and objective that affect the marketer since they have to uphold the policies and also strive to achieve. The decision and practices of the marketing manager must stay within the overall decisions and policies mad by the top management team of the company. In addition, the marketing department must also work in association with other department. For instance, it has to work with the finance department in order to get some money for promotional activities. The other departments include the manufacturing department, the purchases department and the accounting department which together share the same goals and objectives. Certainly, all departments on the company should bear the consumer in mind as they perform their function. Their aim should be to provide the customer with superior quality soft drinks.
Intermediaries at the market
These are popularly known as marketing intermediaries. They are the firms that facilitate the company to conduct promotion of its drinks, distribution and a selling them to the final buyers. The intermediaries provide a link between the company and the final consumers (Oxford University Press, 2007). It these regard it is upon the marketer know all the intermediaries available the, strengths, weakness and suitability to reach a particular market. According to Gupta & Neelesh (2010 p 40) Coca-cola’s intermediaries include resellers who are distribution channel firms that facilitate the company in getting customers or makes sales for the company to these customers. The resellers include wholesalers and retailers who by and resale various commodities. In most cases resellers perform important factions more cheaply that would have been expensive if performed by the company itself. It is however very difficult to seek and cooperate with resellers since some of them demand and use a lot of power from the company. Despite this, the service that these firms render to manufacturing companies such as coca-cola can not be overemphasized. Physical distribution agencies help soft drinks companies to move goods from their point of manufacturing to their point of consumption they also help stock the drinks in destinations that are far from the producing companies. There are also marketing agencies which include from media firms, marketing research companies, advertising agencies and others, whose services help the company single out and target their customers and further promote the companies products. The last group of intermediaries is that financial intermediaries which includes institutions that assist in conducting financial transaction and insure the company against risks. They include the insurance companies, banks and credit companies. These marketing intermediaries have a great influence on the way the marketers of the soft drinks perform their actions (Kotler,P, & Armstrong 2008: p 75). This varies depending on whether the company partners with these intermediaries or purely hires their services. Coca-cola in most cases partner with the intermediaries such as Wendy’s (Kotler & Armstrong, 2008: p75).
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The companies Suppliers
To the company the suppliers are other companies, firms or organizations and /or individuals that avail resources for use by the company and it competitors for the purposes of production of the soft drinks. Suppliers are a very important link to the companies overall “value delivery system.” The first thing the company should do in managing its supplies is to always take into consideration monitoring of the supplies availability (Oxford University Press, 2007). In this regard the company has to be in the look out to identify shortages in the market in good time for strategic changes. The second thing is to always monitor the changes in the prices of the key inputs. Rises in the cost of supplies should be a cause for alarm. According to Oxford University Press (2007) it is the inputs that are converted into the soft drinks that are marketed by the market department. In this regards, limited supplies may implicate greatly on the amount of soft drinks that is bottled and supplied to the market. Certainly the marketer will have to take into consideration the quantity of the rink that the company is able to produce when coming up with a marketing strategy. It would be wasteful to come up with an ambitious and expensive marketing strategy when the production is on the low. However, when the raw materials are available in plenty and at an affordable price it is highly likely that the production will be in surplus. As such, this would be the best moment to put up ambitious marketing strategies and try to reach as many customers as possible. In regard to potters five market forces, the suppliers in this soft drink industry which is almost a duopoly have a considerable bargaining powered given that the raw material for making the drinks can also be used to make other food products (Goutham’s Thoughts, 2007).
It is important for the company to analyze and understand the customer since each market has it own feature. The soft drink market include customer markets that are made up of individual customers who by the drinks for personal consumption; reseller markets that consist of buyers who by the soft drinks in order to resell them at a profit; government markets that is made up of government agencies that purchases soft drinks for various function such as conferences; and finally the international markets that are made up of all of the above markets in foreign countries. Marketer understand these market properly and their demand partners for instance the consumer market and reseller market may demand a lot of this drinks during the festivity seasons such during Christmas and New Year celebration (Zikmund & D’Amico, 2001: p 55). During such time the marketers come up with spirited promotion of the drinks encouraging those celebrating to include the Coke’s products as the soft drink of choice. The customer of soft drinks despite being many luck bargaining power and would buy the drinks irrespective of the prices.
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The soft drinks industry has various competitor of most of them are minor competitor or regional. The main competitor the coca-cola has to deal with is Pepsi which like coca-cola enjoy a global presence. The marketer of soft drink always aim at securing a competitive advantage by positioning their companies product at a better place that those of their competitors. In this regard any promotional activities and offer by the competitor will greatly influence the action of these marketers since they will want to counter such offer to avoid loosing customers to the competitor giving the offers. The marketer must also come up with a competitive strategy to deal with the competitors products. In regard to potter‘s five forces that influence the market, Coke an Pepsi enjoy a large market share (Gupta, G, & Neelesh, S, 2010: p 792). Threat from new entrant is insignificant due to numerous barriers to entry. Such burrier include bottling net works, high advertising cost, brand image/ loyalty, retailer shelf space, and fear of retaliation. Coke enjoys a great deal or royalty a feature that the marketer would capitalize on (Goutham’s Thoughts, 2007)
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Various groups that have potential or actual impact or interest in the company may influence the behavior of the marketers in many different ways. Marketing plans as such take into consideration the influence that these publics have on the company or the consumption of the soft drink. The various public that influence the behaviors of marketer include the financial publics who have a bearing on the finical assistance to the company; government publics ; media publics who spread information about he company and its precuts; the local publics made up of community organization and neighborhood residents; citizen action publics who consist of consumer organizations; general publics whose opinion on the company and products matter greatly; and internal publics comprising of workers, volunteers, managers and board of director.
The micro-environment certainly has a great influence on the activities of the marketer if soft drinks. The micro-environment being classiest to the company influences the company and its marketer through its elements such as internal environment, customers, suppliers, intermediaries, competitor and publics. In some cases the influence is strong and in some it is weak. The influence basical determines how the marketers apply the four ‘P’s of marketing.
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