Marketing Mix: Promotion

Promotion strategies for CARBONATED SOFT DRINKS and AIRLINE FLIGHTS

Companies across all industries always seek to market and sell their products as much as possible. They always desire to have more shareholder value, more market share, and more profits. Companies have achieved these objectives through R&D, successful initiation and monitoring marketing strategies across various domains (Baines Fill & Page, 2013). In the business world, for firms to attain such objectives, efficient and effective marketing strategies must be implemented to compete with rivals in the industry. This paper has focused on analyzing Promotion strategies for carbonated soft drinks and airline flights. The paper will refer to various companies in the respective industries.

Promotional and other marketing mix strategies are crucial aspects in the business field. Researchers have defined marketing as the social process that companies use to acquire what they want through producing and exchanging items or services with others. Marketing mix is composed of price, product, promotion, and place. The price of a product is the main determinant of the volume of sales and value of the product sold (Smith & Taylor, 2009). In addition, consumer demands and satisfaction is achieved through getting value for their money, which is hard earned. Place is the second element of the marketing mix. It revolves around methods of storing goods and systems of distribution (Baines Fill & Page, 2013). Companies must ensure goods are always available to customers at all times whenever they want them. A suitable distribution mechanism ensures customers get the right products, at the right time and that products are at the right place. The choice for a distribution method varies as some companies find it convenient to distribute items directly to wholesalers. Then, wholesalers tend to sell the items to retailers who take the items to the end users.

Promotion is among the vital components of a marketing mix. It refers to the process of a company communicating with customers and potential customers. While communicating with customers and potential customers, a business creates awareness about its offerings and provides vital information. This information will assist the customers make informed decisions buy the product or service. An effective promotion will increase sales in order for advertising costs to be spread across the entire output (Baines Fill & Page, 2013). Often, increased promotional activities reflect a response to an issue like a competitive activity. It enables a business to create and build a succession of messages, which might be cost effective.

The success of any business is based on the product, which is the final component of any marketing mix. Promotion, price, place, and the entire business cannot exist in the absence of a product. Product is described as something offered to the market to satisfy a need or want. It is the basic and vital ingredient of any marketing mix. It includes everything tangible and intangible offered by a company in exchange for money (Smith & Taylor, 2009). In this case, Pepsi Inc. was established in 1965 through the merger of Frito-Lay and Pepsi-Cola (Smith & Taylor, 2009).

Currently, the company is among the leading manufacturers in the beverage, snacks and food industry. Pepsi is multinational companies using the concept of the marketing mix in maintaining and acquiring new markets to stay ahead of its rivals Coca Cola and Kraft Foods. The company produces a line of several brands including teas, Pepsi, Tropicana, 7Up, Lipton Teas, Quaker Foods, Pepsi Max, and Mirinda among many more. The company packages these products differently including 600ml, 300ml, 1 litre, 2 liters and 375ml (Wensveen, 2011).

Pepsi is among the well-known trademarks across the globe with almost all countries being able to recognize its products. The brand has stood the dynamics of the global marketplace and undergone evolution to become a brand that everyone wants to have an association. In terms of the four Ps of the marketing mix, Pepsi prices its items based on the amount and size. Prices of this company have been easily accepted by the public population. This increases the product’s demand. Pepsi is a pro-at its promotion tactic (Smith & Taylor, 2009).

Pepsi has been doing promotion since its inception. The company does this in an effective and efficient manner to attract new customers while retaining existing customers. The promotion of Pepsi is composed of radio, television, billboards, internet, global events like World Cup and pamphlets (Palmer, 2012). As among the leading beverage company, Pepsi is easily available and accessible across the world. Obviously, Pepsi can be found everywhere because of the increasing demand for its products. The company has always established effective, and attraction strategies to attract its target market; packaging in football events with Pepsi products.

US Airways is a multinational corporation providing service items, flights in various destinations, within the transport sector. U.S. Airways marketing strategy entail quality of flights, flight services, executive class, various worldwide destinations, security, and years of experience, support facilities, and speed. As a brand, U.S. Airways provides comfortable and efficient transport to customers. In terms of product development, company is positioning in selecting the most appropriate strategy, has been recognized to be a strategic factor (Wensveen, 2011).

US Airways has been positioning itself as a high quality, high standard airline, and the leader in the category market. The company tries to fulfill all the diverse customer expectations and needs from the first class, economy class and business by offering various services (Palmer, 2012). U.S. Airways prides in the on-board menu, in terms wines, and foods and different lounges for first class clients contrary to its economy class. It provides business class seats, gold and silver cards for frequent customers and an executive lounge in all main airports. In addition, it offers customers with free drinks and food flights with exceptional service. The company has a unique two-in-flight magazine various radio channels, a collection of movies and TV programs for entertainment (Wensveen, 2011). It also flies the most convenient and busiest lines and airports from almost every country across the worldwide destinations.

US Airways has expanded its marketing by introducing effective pricing strategies, which cater for across the board clients. Price refers to the value put on the items exchanged in the process of marketing. Customers pay money to receive utility or satisfaction (Baines Fill & Page, 2013). Some neoclassical experts argued that utility is the bi-product of any economic activity. Therefore, U.S. Airways understands that it must set its prices in such a way, which encourages clients to perceive value of their belief in terms of money they have spent. The company sets prices based on the value offered and perceived by customers.

If prices exceed the perceived customer value, the U.S. Airways will lose potential clients and profits. On the contrary, if prices are lower than the perceived customer value, then it will be impossible for U.S. Airways to harvest potential benefits. The company has set up different prices factoring in the diverse customer needs. They include the middle class, the executive class, and the economy class. Additionally, U.S. Airways uses promotional pricing on flights going to specified destinations, as well as on special occasions like the Christmas season. For instance, the company has set low fares for local destinations (Wensveen, 2011).

References

Baines, P., Fill, C., & Page, K. (2013). Essentials of marketing. Oxford: Oxford University Press.

Palmer, A. (2012). Introduction to marketing: Theory and practice. Oxford: Oxford University Press.

Smith, P.R., & Taylor, J. (2009). Marketing communications: An integrated approach. London: K. Page.

Wensveen, J.G. (2011). Air transportation: A management perspective. England: Ashgate.