Demand Reflection

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MLA Annotated Bibliography

Central Question: What is Coca-Cola’s marketing strategy and why is it effective?

Source 1:

Bullas, Jeff. "5 Lessons from Coca Cola's New Content Marketing Strategy." Jeffbullass Blog RSS. 30 Sept. 2012. Web. 19 Mar. 2013.

The source contains information regarding Coca-Cola’s marketing strategy, highlighting their mission. Coca-Cola’s mission statement is to refresh the world, inspire moments of optimism and happiness, and create value and make a difference. The brand recognized that it needed to utilize both creative excellence, which is at the center of their advertising, and content excellence, to be used on a social scale through different lessons. Lesson one states that they want to create ideas that cannot be controlled, known as liquid content, through social media. Lesson two ensures that content is linked to the brand, customer interest, and the company’s business objectives.  Lesson three is to create conversations and allow distribution technologies to connect consumers and empower them. Lesson four is concerned with dynamic storytelling, meaning being multifaceted in order to evolve and spread the story. Lesson five is to be brave and creative, allowing both low and high risk campaigns.

This source shows the importance behind Coca-Cola’s multifaceted marketing campaign. The mission of the company is what drives its business strategy and is ultimately the reason it is effective.  The source points out that the company utilizes the branding to refresh the world and create happiness and seems to never settle for what they have. The strategy of creating liquid content is explored, for if that were not utilized, the company would not be growing. The essential effectiveness of the marketing revolves around the ability to adapt and change due to the environment at the time. Another reason their strategy is effective is its ability to work beyond their original marketing by creating ways in which consumers can promote the product themselves.

Source 2:

Carpenter, Lee. "Best Global Brands 2012 - Coca-Cola." Interbrand Best Global Brands 2012. Interbrand, 14 Dec. 2012. Web. 19 Mar. 2013.

The source evaluates the power of the Coca-Cola brand and its affect. The brand itself is highly recognizable, is always evolving, and promises fun, freedom, and refreshment. The company is able to keep the nostalgia of the brand while keeping the marketing new and different. The company utilizes promotions such as celebratory anniversary ads and the Olympics. Coca-Cola scored at over 90% of brand awareness in countries like the US and France. The presence at the Olympics gives a platform to a global audience while building tradition and recognition with the games. Still the brand proves to be agile, adapting to local markets and never ruining the legacy. It recently is embracing the digital market, engaging in ‘Coca-Cola Music’ and aiding in matters of all kinds such as the polar bears or politics.

The source highlights the different outlets in which Coca-Cola advertises. The multifaceted campaigns give the company essentially endless possibilities for marketing, allowing the creation of numerous ideas. The many outlets give the company numerous changes to interact with people and build a foundation. The company’s involvement in the Olympic games allows the company to expand their marketing to new targets, all while building a stronger relationship with those that are already customers.

Source 3:

Linem, Kasi. "Marketing Mixx." Marketing Mixx RSS. .17 Mar. 2011. Web. 19 Mar. 2013.

The source highlights logistics of the Coca-Cola marketing strategy. The target market is not limited to age, area, or gender. The brand wants to be present globally and currently has over 500 brands in 200 countries. Coca-Cola wants to achieve aims such as maximum consumption of their product, maximum outlets, brand association, and invest in research, aid in safety and health of consumers. Key strategies include availability, affordability, and acceptability, periodic assessment of plans and product response, engaging in partnerships. The company had a net income last year of over 11 billion, allowing a large marketing budget. The marketing mix of Coca-Cola includes the product, price, placement, promotion, competitors, and changing tactics. Some strengths include its brand name that is highly trusted and its availability all over the world. Its largest weakness is its brand deals only in drinks and could expand into snacks or other items.    

This source evaluated the strategy itself and essentially lays in all of in a format that allows maximum drink movement. The maximum consumption gave the company aims to spread as far over the world as possible. It highlights the effectiveness of using sports ads to advertise and how this spread the brand. The main function of Coke’s advertising is to spread to as many markets as possible to increase things such as brand associations. The brand however uses the marketing to promote Coke’s numerous acts and events coming up.  

Demand Wrap up

Part 1

1. Utility 

Definition: Ability of a good or service to be of use or give satisfaction to someone 

Example: Coffee has the utility of giving a person energy and usually will make them happier due to enjoying a delicious beverage
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2. Complementary demand

Definition: The demand of an item that changes equally with an item that pairs with it 

Example: When the sales of hot dog go up due to a sale, the sales of hot dog buns will go up as well

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3. Substitute demand

Definition: The demand for an object will have an inverse effect of a substitute item (items that have same utility) if the price goes up or down 

Example: If the price of Cheerios goes up, then the demand for frosted flakes would increase due to the similar utility

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4. Elastic demand

Definition: Demand that will be effected greatly by a change in price

Example: As the price of cookies goes up, the demand will go down because the cookies are an unnecessary good

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5. Inelastic demand

Definition: Demand that will not be effected by a change in price

Example: If the price of shampoo were to increase, the demand would remain static because shampoo is necessary to stay clean

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Part 2

A. Elastic Demand 

B. Inelastic Demand 

Part 3

A. Increase in Demand 

B. Decrease in Demand 

Changes in the Demand Environment

Increase in Demand

Consumer Income can cause a change in demand at each and every price.

Demand Schedule

Graph of Demand Curve

Increase in Demand at each price

When consumer's incomes increase, it allows them to have a greater disposable income. Therefore, they are more willing and able to purpose more of a good at a higher price. One good of this sort would be some form of entertainment such as tickets to Disneyworld. A higher income would allow them to be more willing  to spend extra money on a nonessential service such as entertainment. This is an easy thing to go without but would be nice to have if there is an extra income. 

Decrease in Demand 

Consumer Tastes can cause a change in demand at each and every price.

Demand Schedule

Graph of Demand Curve

Decrease in Demand at each price

When consumer's tastes change, it can decrease their willingness to purchase a good or service. For example, when summer ends, consumers need to pay for a swim center decreases. While they are still completely able to, the weather and mood change causes them to no longer have the want to go swimming. This demonstrates a change in taste that decreases demand for a good. 

Demand Headlines

1. Complementary: iPhone 5 released, new phone cases sales dial up.
2. Substitute: Walmart's frying pan prices raise, Sears pans sales sizzle up.
3. Elastic Demand: Skittles prices reduce dramatically, now whole country is tasting the rainbow.
4. Inelastic Demand: Electricity prices skyrocket, but no one wants to be left in the dark.

In our modern world, almost no household could be run without electricity due to its incredible utility. The need for electricity steams from our need for light, utilities, and entertainment. A modern household could not function using candles for light or without a microwave for food. Although if electricity prices rose, many families would likely attempt to be more careful with their use of electricity, being careful to not be wasteful or use it frivolously. However, they would not be able to stop using it all together.

The utility of the electricity would outweigh its price raise for its multiple uses. One use would be the lighting of a household, because houses are not built to utilize natural light. Therefore, electricity would be a necessity for lighting a home and making it functional. Another use would be its ability to make food in a microwave. Many households utilize a microwave, and without it, they would have to change the way they eat, making life more difficult. 

Demand and Utility

Throughout this week, I plan to exhibit economic demand for goods and services through:

1.  Purchasiung gasoline, which has a utility of making my car run, allowing me to use it for entertainment, work, and travel purposes and also allows me to have more freedom.  
2. Purchasing coffee at Dutch Bros, most likely an Iced Kicker, which has a ulitity of giving me energy and allows to be allert, as well as satisifying my need for a tasty drink. 
3. Purchasing a burrito from Chipotle, which has a utility of satisfying my hunger, giving me nutrients, and gives me energy, making me happy and satisfied. 

Markets

What are the strengths or weaknesses of the American Market Economy?

The American Market Economy is one that has many advantages and disadvantages  In general, the economy can be considered a success due to its high level of American support. Some of its strengths include its ability to change. The American Market place is effected greatly by other markets around the world and therefore, it must adapt when production factors change. For example, many corporations have the ability to predict the changes in the economy, allowing the economy to stay quite stable. The other major advantage is that there is an individual freedom available to all people, giving them the choice and opportunity to purchase anything or even start a new business. This ability gives people the freedom to start a new career or creating a business and gain a future.
Other strengths in the American Economy include its lack of government inference. The government stays out of the economy and does not change in the outcome of different businesses. Due to the low level of government control, there is also no centralized decision making. This way, the economy is defined purely by the consumer, allowing a variety of goods and services that are desirable by the public. The variety also allows us Americans to find many different and interesting items that aid us in our daily lives, giving us a high satisfaction.