The Impacts of Pricing in Marketing of Coke Drinks
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of the study are;
- to ascertain whether the pricing of coca-cola is more important than coke
- to ascertain the relationship between pricing of coke and companies image
- to find out whether you meet your target investment with the price you sell coke
- to find out the pricing strategy used is competitive.
CHAPTER TWO
LITERATURE REVIEW
Marketing Mix
“Marketing mix” is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to the market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by McCarthy (Mind Tools, 2014). The four P’s of marketing are product, price, place and promotion. The four P’s are the four key elements which the marketers of new products must take into consideration when setting out to design a successful marketing plan. The first of the four elements of the four Ps is product, which, Ehmke et al (2005) described as the goods and services that a business offers to its customers. Apart from the physical product itself, there are elements associated with products that customers may be attracted to, such as the way it is packaged. Other product attributes include quality, features, options, services, warranties, and brand name (Ehmke, Fulton, & Lusk, 2005).The price element of the 4 Ps is how much a business charges for its products or services. The “Place” aspect, of the 4 Ps of marketing, refers to the distribution channels used to get a business’ product to its customers. Finally, the “Promotion” aspect of the four Ps of marketing refers to the advertising and selling part of marketing. It is how you let your target market know what you are offering for sale. The success of a company is dependent on a well-balanced and integrated 4Ps of marketing mix, also known as the Marketing Mix Variables. The components of the Product, its Price, the Place (distribution channels), and Promotions have to suit each other. The marketers must embrace and integrate all marketing mix variables to see where adaption to product, price, and promotion and so on is needed (Kotler & Keller 2009). In case the marketing mix is not in balance, the communications might not reach the right audience at the right time, or the customers cannot buy the product when they want to, as it is out of stock, or the product is priced out of their reach, or even worse, the product does not meet the customers’ expectations.
Marketing Mix Theory
This study was based on the 4Ps theory of marketing or the marketing mix as coined in the early 1950s by Borden in his American Marketing Association presidential address. The term “marketing mix” became popularized after he published his 1964 article-The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940’s after Culliton had described the marketing manager as a “mixer of ingredients”. The ingredients in Borden’s marketing mix included product, planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. McCarthy (1964) grouped these ingredients into Product, Pricing, Place and Promotion, often referred to as the “4Ps”and offered the “marketing mix”, as a means of translating marketing planning into practice (Bennett, 1997).
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impacts of pricing in marketing of coke drinks. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of the pricing in marketing of coke drinks
Summary
This study was on the impacts of pricing in marketing of coke drinks. Four objectives were raised which included; to ascertain whether the pricing of coca-cola is more important than coke, to ascertain the relationship between pricing of coke and companies image, to find out whether you meet your target investment with the price you sell coke and to find out the pricing strategy used is competitive.. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from coca cola company, Enugu state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The study concludes that pricing of new products has an influence on the existing Coca cola products and that adjustment of prices of the new products has an effect on sales performances of Coca cola products, which can be positive or negative depending on the direction of the price adjustment. It also concludes that to a significant extent, customers do not consider price when buying new soft drink products and this phenomenon can be attributed to the fact that consumers do not have a price reference point as the product is new. The study further concludes that majority view prices of new Coca cola soft drink as matching with their quality and quantity.
Recommendation
The study established that pricing was very key when it came to a consumer making a buying decision.
Therefore, the price should compare favorably with existing products to avoid intra-product competition.
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