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BUS105 Unit 3 Individual Project Raven S. Benson BUS105: Business and Society Even Alexandra A. Clausen October 25th, 2009

2 Price, Product, Promotion, and Placement are four of the Ps in marketing. Each of them play an important role in how a product or service is offered to the consumer. For a business to be truly successful, each of these Ps must be tackled with strategy and understanding of the elements at play. A company that understands those terms is the world’s leader in “nonalcoholic ready-to-drink beverage”‘s Coca-Cola (Marketing strategies 2009). Price is determined by many factors, the cost of the materials and labor, as be used as a marketing strategy to curb in consumers for a company’s product or service. Supply and demand of a product also influence pricing (Unit 3 Multimedia), since with a higher demand; prices go up, while with a lower demand, prices go down. A Coca-Cola beverage must be priced delicately, since if the price is too high, consumers will buy Pepsi instead. However, if CocaCola prices their drink too low, they will not get a profit, if even break even at all. An example would be that if Coca-Cola was to raise their price by a single U.S. dollar, American’s might not even but Coke. A single can of Coca-Cola is considered a product. Products or services can be placed in to two different categories; utilities to benefits (Chat 6). A utility is a product or services that are absolutely needed for everyday life. A benefit is a product or service is wanted can be lived without. A can of Coca-Cola is considered a benefit because it is not needed by anyone for basic survival. However there are some people who are addicted to the caffeine levels in Coca-Cola, and to them, a basic can of Cola is a highly important utility to start their day with, and that they just cannot go on without their Coca-Cola fix

3 Promotions can actually make or break a business depending on well the promotion runs and how many people are affected by it. Promotions usually are when a company finds a way to get their product directly to the consumer, usually with a trail offer or a free sample. Coca-Cola has an interesting promotion that is has been doing for a few years now called My Coke Rewards. How this promotion works is consumers buy a bottle of Coca-Cola or a case of cans, and they receive a code. This code can be registered at the My Coke Rewards website, for about 20 points. After a consumer had bought enough Coca-Cola and register enough codes, they should have enough to “buy” a DVD or another type of prize. This promotion has been working very well for Coca-Cola for the past three years, however they have not yet decided if they will carry on this promotion into 2010. The last of the four P’s is placement; however placement really isn’t the correct term, as much a distribution is. Placement is the process where services and products make their trip from where they manufactured to the consumer. Coca-Cola’s example of placement would be their distribution plants. Each country that sells Coca-Cola has their own bottling and canning factory (Marketing strategies 2009). In America, the Coca-Cola factory is located in Atlanta, Georgia. There in the plant, Coca-Cola is bottled, canned, and put into soda fountain taps. Coca-Cola also has their own army of trucks that they use to deliver to stores, warehouses, and fast food chains. After the Coca-Cola products have reached those said places they become available for purchase by the consumer. In conclusion, a product or service really needs the four P’s of marketing to really make much headway in today’s economy. For without a price, a company wouldn’t make any money off a service or product. Without a product, what would a consumer buy? Without promotions,

4 what would pull consumers in other than general advertising? Lastly without placement, how would the consumer even get a hold of a product or service to use it?

5 References Chat 5 Chat 6 Coke joins 300-ml cold war with price cut In Delhi. (2003, April 15). Retrieved from The Indian Express Limited website: http://www.financialexpress.com/news/Coke-Joins-300-ml-Cold War-With-Price-Cut-In-Delhi/76504/ Khan, S. U. (2009, January 16). Marketing strategies of Coca Cola. Retrieved October 25, 2009, from fakhar.z101, Scribd website: http://www.scribd.com/doc/10552013/Coca-Cola Marketing-Strategies My Coke Rewards (2009) The Coca-Cola Company http://www.mycokerewards.com/home.do Unit 3 Multimedia