Marketing may be identified as a business function whose sole responsibility is identifying customers’ wants and needs designing appropriate programs, services and products that need to serve required target market as well as identifying the organization’s target markets. Therefore, marketing acts as a guide to the whole organization. This is done with the objective of enhancing custom which is often achieved through building customer relationships that are value- based with other external as well as internal business units. As a result, market leadership is attained due to the organization’s ability to understand the needs of consumers and identifying solutions that are of quality and superior value. Marketing also involves identification, enhancement, establishment and maintenance of the relationships that exist between various customers and stakeholders as well as organizations in order to attain profit and the objectives of these parties. In other words it is a process that involves four steps: defining and analyzing a universe of most likely buyer or users, marketing process with the intention of capturing the buyers or users’ attention in a given marketplace, establishment of various systematic efforts and lastly offering buyers with various desired actions that is goods and services that need to be bought
Need essay sample on "Business: Advertising"? We will write a custom essay sample specifically for you for only $ 13.90/page
Marketing is a very important discipline in today’s competing business environment which is constantly changing as a result of advances in technology. This is also because it is diverse as it involves public relations, promotions, advertising and sales. Products are gotten into the market through sales, promotion and hence behavior of consumers is encouraged.
Another significance of marketing is that marketing strategies have changed and this therefore calls for effective marketing in today’s global economy. The mainstream tactics that are used today were perceived to be radical then. Marketers have strived to be more creative today because there are so many messages that get to consumers as concerns the various products that exist in the market hence creating a lot of difficulties for most markers when it comes to enabling consumers to notice their products.
Marketing also plays a crucial role in the world of business because of the many changes that is constantly taking place around the world. These changes include consumers’ tastes and preferences, product choice, changes in technology, competition, political environment, socio cultural values and beliefs among others. Those companies that lack a mindset that concerns marketing are placed at a greater disadvantage level as compared to their counterparts. This also applies to those businesses that still center mainly on their products instead of their consumers. Both groups are bound to terribly fail in their businesses if at all they still practices. This therefore calls for all businesses around the world to acquire knowledge on the expectations of their clients as well as exceeding these expectations hence establishing a perfect reputation which is based on the customers needs as this will eventually lead to prosperity in businesses. Paying attention to various needs of customers makes them attracted to a persons business and products but ignoring them drives them away (Baker 26-35)
Marketing is also essential since its efforts never go to waste. They always reap great benefits so long as it is carried with great sincereness and caution. In addition, marketing related activities if well invested will result into making enormous profits for the organization. This also enhances the level at which those marketing agencies from outside and also the various professional consultants that deal with marketing can be able to place their focus on the various requirements of marketing free from any bothering from employee relationships, politics and the internal company relationships. This is also because the effective strategies that will work as well as those that cannot work can be identified by those professionals so as to gain effective marketing strategies (Baker 26-35). Our group will be focusing Budweiser. Budweiser is sometimes also known as Bud and it is one of the largest bale larger brands. It is owned by the Anheuser-Bush company which is based at St.Louis. Budweiser is also produced by various breweries located worldwide as well as in United States.
Customers are the focal point as concerns the purchasing of products that organizations worldwide promote, develop, price and distribute hence this call for proper definition of these products so as to enhance and maximize consumer satisfaction. Production, pricing distribution and promotion activities are referred to as marketing mix since they decide what type of the element to use and to what amounts. The four types of marketing mix namely products, price, place (distribution) and promotion constitute what is normally referred to as the 4 P’s of marketing. These variables are often utilized by marketing managers for effective controlling of a business organization’s processes so that consumer’s needs in the target market are satisfied. They are blended with an optimal manner by a firm with an objective of getting a positive response from consumers of goods and services in the market. Therefore these four variables play a vital role in the decision making process by management. Products could either be goods or services that are available for consumer consumptions. Decisions that are made based on products may include appearance, service, function, warranty and packaging among others. (Baker 32-35).
Apart from being the amount exchanged for a service or an idea, price could also constitute the various services and goods that are mainly exchanged for ownership or their utility. The need to make decisions about prices occurs under a number of specific circumstances for different types of services and products. For an existing brand or product the decision can incorporate increases, reductions and holding price. The major circumstances in which pricing decision need to be made are: new product introduction, changes in external circumstances e.g. competitive action in raising and lowering of prices; raw material tax or any duty changes, promotion, changes in the market structure as well as other internal changes arising from new products and new processes. It is therefore vital for decisions made on pricing to consider the probable pricing and the profit margins of products, discounts, financing, and other various options such as leasing also constitute pricing. Placement decisions are mostly linked to various marketing channels of distribution which often provides means for transferring these products so that they can get to the specified customers (Baker 32-35).
Decisions that concerns distribution include logistics, channel member selection, levels of service and market coverage. On the other hand, decisions that are made relating to selling and communication towards potential consumers are referred to as promotion decisions. These decisions require a breakeven analysis as these costs may be large as compared to the various product prices. In addition, the customer’s value needs to be known as this is useful in establishing if at all the additional customers are really worth the value that they have been acquired with. These decisions involve promotion public relations, advertising and media types among others.
Budweiser may be examined under its strengths, weaknesses, opportunities and threats. The strengths for Budweiser’s Anheuser-Busch company include the demographics, pricing leadership, brand strength, production and distribution among others. As regards demographics, the company expects the range of 21-27 year olds to increase to about 150% for the coming years and this will be a major boost to the growth of the company. Budweiser’s price has been on a leadership position since its inception hence this has been on the increase over the past years. The company also has over the years had the leading brands worldwide especially in the major domestic categories of beer. Among the top brands in the United States include Budweiser and Bud Light.
In the production and distribution, there are several networks that consist of 12 breweries and this provides a strong system which is unmatched that consist of wholesalers who are more than 600 who are charged with the responsibility of distributing these brands. In addition, Anheuser-Busch Company that provides Budweiser has a lot of opportunities that in most cases provide fresh growth in every business that the company has. The other opportunity is the new markets that the company is constantly creating through the various branches that it is opening both in the United States and the rest of the countries worldwide.
The company is also among into other market segments that are new and which often offer diverse and improved profits, and has also managed to venture into new international markets competing with the other competitors in the global marketplace. The major weakness of Budweiser is the bad reputation that it has concerning its advertisements. This also applies to the company’s products and services that are not fully differentiated as compared with the company’s other competitors in the beer industry. The threats that Budweiser faces include competition that the company experiences both domestically and globally. This competition is stiff in that it posses a great risk to the company’s future holdings worldwide especially retaining its customers. These also include the price wars that often exist between the company and its competitors.
Targeting may occur in two main phases. The first one concerns the single segment which consists of a single product. This is whereby a single product is targeted by a marketer and this takes place in a market that consists of many segments. On the other hand, the second phase relates to a situation whereby a single product is aimed at the available market segments as a whole by marketer. In this case les importance is placed in differentiation as compared to cost. In addition, there is also the multi-segment system of approach and there is whereby different segments in the market are targeted by a marketer and this also includes various products that are differentiated. Anheuser-Busch Company that produces Budweiser is a large organization that carries most of its operations internationally and Budweiser is regarded as the company’s worldwide beer number one and this is made possible through the company’s marketing strategy which is effective (Baker 44-55).
The company mostly advertises its products during events such as sports. This is because the sports audience is quite large consisting of people who poses same general attitude to the sport that is being watched. This is the target market for the Budweiser (our company of choice). It is during the football session that Budweiser is extensively advertised. This is because the targeted market is generally obnoxious as well as loud consisting of men from the ages of 18-49 who have a very crude sense concerning their humor and they are also overweight. In United States, Budweiser has had its great shares since the target market fits this profile. As concerns segmentation of the target market, since Budweiser is among the best selling beers worldwide, its distribution occurs to many countries worldwide. The beer is categorized as the United States’ leading group of premium beers which has resulted in outselling all other beers in the domestic market. Because of this, the company has been in a position to make huge profits hence becoming financially stable. Therefore the target is segmented using the multi-segment approach that involves a variety of segments as well as differentiated products.
Advertising is a vital tool which is used in the marketing communication mix. The communication as result of advertising is directed to various people hence a mass medium. As a result, advertising creates various positive implications to the advertiser. The first implication is that the control of the massage conveyed lies with the advertiser to focus the massage to various large numbers that consists of potential consumers with the help of only a single hit. This occurs at a low cost in which it will be beneficial for both parties. The form in which advertisement takes place is quite quick as compared to the other elements that exist in marketing communication mix for instance personal selling which requires briefing of the entire force that exists in sales. This therefore creates an essential opportunity for an advertiser to effectively communicate to majority of the target audience. (Baker 44-45).
Marketing consists of a marketing mix made up of the 4 P’s of marketing (price, place, promotion and product). This includes processes, marketing services, people and the physical evidence and this could also be seen as promotion of these goods and services that are produced by a company. The marketing communication is also integrated to enable transmission of a single message through all marketing communications as customer confusions is generated when customers are exposed to different messages hence damaging existing brands. These mix that exists in marketing communications are often blended together in various amounts in an existing campaign.
The various aspects of the marketing communication mix include sales promotion, direct marketing, personal selling, sponsorship, advertising which involve below and above the line, publicity as well as public relations, Trade Fairs and Exhibitions, Packaging, Brands, Internet promotions and marketing, merchandising and the point-of-sale. The characteristics of Budweiser’s integrated marketing communication mix consists of public relations, internet promotion, direct marketing, advertising, packaging and all these are aimed at enhancing the sale of Budweiser. Public Relations (PR) should be placed ahead of advertising because it concerns with the way an organization deals with its customers. It is a purposeful form of communication directed towards the publics by organization with the objective of developing goodwill. Public relation is also future oriented and proactive hence has the objective of maintaining and building an organization’s positive perception (Baker 56-65).
The advertising agency is charged with the responsibility of handling all or part of the marketing activities. This is often carried out on behalf of an organization’s client. These agencies are found in various sizes which range from small to even vast ones. In addition, these agencies often collect commission and this is often gotten from purchases made by the media. The main types of agencies that exist today are the full-service agency, specialist agency or a la carte agency. A whole campaign or project is mainly taken by the full-service agency whereas some aspects relating to campaign like media buying are carried out by a la carte agency. A specialized agency on the other hand is small and focuses on various specific aspects that concern marketing communication. Services offered by the full-service agency include account planning, media, creative, traffic and production, and account management (Baker 56-65).
Decentralized advertisement system comprises of a separate marketing, promotion departments that exists for various businesses or even product lines that exist in an organization, advertising and sales. This form of advertising system applies the use of brand management or product management systems. One of the advantages of decentralized advertising is that there is concentrated attention from the management in the organization. This therefore enhances service delivery and service efficiency. The other advantage relates to the existence of a rapid response to various problems that may arise in an organization. This again leads to increased efficiency and productivity by employees (Baker 56-65).
Increased flexibility is also another advantage that arises from the use of decentralized advertising systems. The major disadvantages that exist in a decentralized system of advertising include internal conflicts, lack of authority, ineffective decision making and problems that exists and relating with fund allocation. In order to describe a typical scenario of our customer, using the buyer decision process for our team’s product, Budweiser, the customer’s decision will be based on the various brands that are offered by them. The customer will go for the best and widely known brand of beer in this case Budweiser. This also applies to the perception of the customer as concerns the quality of the beer that will be brought will be perceived by the buyer as to deliver quality dimensions at available sufficient levels.
In addition, an advertisement can use the post-purchase evaluation to evaluate customer satisfaction. These brands that exists at the post-purchase valuation stage often create a positive implication on both locally and satisfaction. Therefore, the marketer may be able to evaluate customer satisfaction by establishing the attitudes of the customers towards certain products or brands. The marketer can also evaluate customer satisfaction by establishing the attitudes of the customer’s satisfaction through the loyalty that the consumers pay towards a certain brand or product. All these are derived from satisfaction that is felt by the customers. Satisfaction in this case means that the goods and services have to exceed the expectations of consumers and loyalty which definitely show the behavioral effect of the customers towards certain products or even services (Baker 66-75).
The most effective means of communication for our product (Budweiser) is the mass media method of communication. This method enhances the rate at which we can connect with our target customer who are mainly sports spectators. They can easily be reached through the television, radio and internet among others. This is therefore the reason why we choose to use mass media. Our team intends to use televisions as the primary messenger of our advertisement. This is because the majority of people can be reached through television and hence this makes our process of conveying various massages to our target customers to be effective. Our team’ advertisement will attempt to create the appeal of quality and relaxation that is derived from the consumption of Budweiser. Quality and relaxation is meant to attract more consumers from our target audience so as to enjoy our product.
Positioning as a concept has in the past and even today changed the available nature that relate to advertising. The stating point for positioning relates to a service, an institution a person or merchandise. Positioning entails making the product to appear in a person’s mind (Ries and Trout 1-3). Positioning is therefore effective when it takes place at the right circumstances and at the right time. Getting into a person’s mind involves having the right massages fixed into people’s minds and this calls for an appreciation to first get into people’s minds as this will enhance success in business since these people will be having the right massages concerning the various products that are offered by a company (Ries and Trout 20-22).
Therefore in advertising, enormous advantage is guaranteed for those products that are able to position themselves in the market as first products hence it is essential to have very good products in the available particular fields in business.
Baker, John M. The Marketing Book. Elsevier, 2003.
Ries Al and Trout Jack. Positioning: The Battle for your Mind. McGraw-Hill Professional, 2001.