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1.0 Introduction 2.0 Decision Making Process 3.0 Need Recognition & Problem Awareness 3.1 Motivation 3.2 Motivation and Involvement 3.3 Promotion 4.0 Information Search 4.1 Culture and Subculture 4.2 Memory 4.3 Product 4.4 Promotion 5.0 Evaluation of Alternatives 5.1 Attitudes 5.2 Product 5.3 Price 5.4 Promotion 5.5 Personality 6.0 Purchase 6.1 Place and Distribution 6.2 Price and Lifestyle 7.0 Post Purchase Evaluation 8.0 Conclusion 9.0 Bibliography and References 2 2 3 3 3-4 4 4 4-5 5 6-7 7 7 7 7-8 8-9 9-10 10 10 11 11 12 12 - 13 14
Youth and Prosperity. 2. The decision making process is integral for companies to understand how buyers think and behave when making purchasing decisions.net/business/marketing/buying_decision_process. Companies utilize the decision making process because they are concerned with both the practical needs of the buyer and the emotional or personal needs of the individual.´ Since its inception in 1886 Coca Cola has gained momentum making it a globally recognized brand with a portfolio of more than 3000 beverages. Fig 1 Decision Making Process 1 1 http://tutor2u.Coca Cola 1.0 Introduction Coca Cola has been an iconic brand that has been considered as a ³living symbol of Joy. Coca Cola has led the soft drink market expanding to other markets achieving an oligopoly position with an immense market share making them the global leader for carbonated drinks. But how has this iconic brand become a legend? More importantly is why consumers are still purchasing Coca Cola? The purpose of this assignment is to demonstrate how Coca Cola has become a success utilizing the consumer decision making process as the framework upon which the principles of consumer behavior will be integrated.0 Decision Making Process The consumer decision making process is essential to understanding the various decision processes a buyer experiences.asp 2 .
An example of this can be seen when the Coca Cola Company held a ³Fire Passing´ activity that consisted of passing the fire of the Olympic Games in preparation of the Beijing 2008 Olympic Games. 3.0 Need Recognition and Problem Awareness What triggers a consumers want for a coke? When consumers are affected by an internal stimulus such as thirst.html 3 . This type of motivational tactic enhanced the involvement of consumers and actually 2 http://askjason. juice etc.com/2008/06/question-what-is-maslows-hierarchy-of. The first is the biogenic need which is the psychological utilitarian need of thirst which can be seen as the lowest level of the Maslow Hierarchy of Needs (Fig 2). Fig. ego needs and self actualization.blogspot. problem awareness is created. In order to satiate this need consumers are exposed to a variety of thirst quenchers for example water. Coca Cola however seeks to satisfy the higher level needs such as hedonic needs.1 Motivation Coca Cola appeals to two types of needs within a consumer. Therefore Coca Cola has made it an integral part of their operations to include strong campaigns that increase both motivation and involvement with their product.3. Therefore Coca Cola understands the importance of targeting higher level needs in order to build brand loyalty for ensuring consistent sells.2 Motivation and Involvement Thirst acts as a drive that¶s motivates consumers to take action to quench their thirst. However consumers choose to consume a Coca Cola beverage instead which indicates their satisfaction is fulfilled by a want for this particular beverage. 2 Maslow Hierarchy of Needs 2 3.
wordpress. Image #1 3 4. 3.created an environment that suggested that Coca Cola wants to be part of their lives. It can also lead to consumers being motivated to purchases Coca Cola as well as create brand awareness.0 Information Search As the consumer becomes motivated to seek a solution to their problem of thirst.com/ 4 . -The pause that refreshes Coca Cola has attempted to make consumers believe that consuming a Coca Cola entails a refreshing. -Coke adds life.3 Promotion Consumers can also become motivated by the various slogans such as: -Passport to refreshment -Coca-Cola has the taste thirst goes for. they engage in two forms of information search: 3 http://sierrafath. Examples of this can be seen in their advertisements which perceive Coca Cola to be the ultimate thirst quencher unsurpassed by other brands therefore consumers who see these advertisements may experience the need for a coca cola. This type of involvement appeals to consumers and increases their favorability towards Coca Cola. exciting experience that triggers an emotional response that can only be satisfied with their product.
Coca Cola appeals to this particular segment by stressing out different values such as family. established brand in a highly competitive market) and has to be defended from competition of other companies with similar products.1) Internal 2) External 4. Coca-Cola¶s products are in different stages of the µproduct life.´ This is an example of family of orientation whereby Coca Cola targets the parents who in turn influence their children¶s decision making Its current advertisement shows different age groups in diverse locations drinking their new product (Coca-Cola Zero).S. friendship. body and soul. Coca-Cola Zero is at the maturity stage (well known.haq who is a popular singer in Pakistan assisted with the brand positioning of Coca Cola in Pakistan by publicly announcing the benefits of Coca Cola to the mind. showing offices and other work based locations.´ Coca Cola Concerts: Abrar-ul. exercise and being cool. 5 . and Europe) in 2005. An example of how Coca Cola targets families can be seen in the ³Coca Cola Pet Promotion. happiness. Coca Cola has a competitive advantage due to the fact that 94% of the world¶s population is familiar with the Coca Cola brand. Coca Cola however has taken a very Westernized approach to its advertising methods that have been significantly altered and customized to certain countries that they inhibit due to globalization of the brand. The exposure of the distinctively designed label and the coordinated and structured image differentiates the company¶s products from the rest of the competition and made Coca-Cola the most recognized global product band. The variety of values of Coca Cola covers a broad range of consumers from different ethnical backgrounds as well as reflecting the tastes and preferences of each generation. Now.1 Culture and Subculture Information search is significantly aided by the consumer¶s cultures and subcultures. The company is responding to growing consumer concerns towards obesity and the changes towards healthy and organic living. This type of endorsement was specifically targeted towards the youth which is an example of the Observational Theory. giving the consumer a unique experience they never tasted before. It reaches out to the working and business class. ³where there is basant there is Coca Cola. For example Coca-Cola Zero was introduced in Western countries (the U. Examples of this transition can be seen in their sales promotion activities in Pakistan: Coca Cola Basant Festival Coca Cola is the official sponsor of the basant festival that gives the more refreshing flavor to the colors of basant by adding more life to the festival.
4. Coca Cola does sponsoring for charities such as: -Katrina evacuees -Tsunami Reliefs. This can be linked in terms of personalities to Sigmund Freud¶s Psychoanalytic theory which is based on the hypothesis that human behavior is driven by motives that are influenced by psychological needs. The shape also bores a semblance to a maternal meaning which involves feelings of security and peace. 4. The psychological effect of the color associates Coca Cola with key words such as winner. Image # 2 4 Another rather prominent feature that stands out among consumers is the actual packaging of the Coca Cola that bores a semblance to the figure of a woman/ breasts. 4 http://vi. This creates a positive image and customer perception that consumer¶s affiliate with Coca Cola. The tactic implied by Coca Cola is one of creating high levels of exposure to their consumers by sponsoring big events.3 Product Coca Cola embraces the saying that.2 Memory Coca Cola is of the opinion that it is essential to make sure that their product is stored in the long term memory of consumers. These two packaging tactics are likely to be stored in a consumer¶s long term memory. implementing intensive campaigns and focusing on packaging. -Utilizing the best possible mix of energy resources.Coca Cola is also aggressively aligning itself with the values of environmentally concerned consumers by: -Reducing carbon emissions. This unmistakably sexual sign unconsciously attracts the attention of consumers. The classic typeface is meaningful because it captures the essence of the American way fo life therefore appealing to its Cultures. desire and hunger for fullness and experience of life that contributes to its brand personality.us/view/fabiano/853685f33fa94489d1d38659507f42a2/ 6 .´ by the usage of bright and vivid red colors Coca Cola is utilizing the strongest of all colors. ³Color is a creation of our eyes and minds. sex being one of them.sualize.
1 Attitudes Changing attitudes about Coca Cola can be caused due to an approach avoidance conflicts such as: . .Coca Cola applies a classical conditioning approach by linking their product with jingles and songs. This is an economical form of advertising that imprints upon consumers thoughts of Coca Cola that through repetition will be stored in the long term memory of consumers.´ Always Coca Cola The Bee Gees Coke Commercial. ³ I¶d like to buy the world a coke. Coca Cola must aim to be included in the ³consideration set´ of the consumer from which they will choose. The recognition received was an excellent way to increase consumer awareness because consumers who are familiar with Mc Donald¶s and Nokia and have preferences towards those products will assume that the high standards of Mc Donald¶s and Nokia are duplicated at Coca Cola. 7 . It is futile to Coca Cola if they are not included into that set because then they would not be an option for step 4 of the consumer decision making process. This is an efficient way to gain storage in long term memory of consumers because Coca Cola is affiliating with globally recognized brands such as itself.0 Evaluation of Alternatives After the Information search the consumer must now evaluate the information gathered.The fact that consumers may develop a negative attitude towards the product due to the unhealthy aspects of Coca Cola. 5.4 Promotion Coca Cola campaigns that were immensely popular: Coca Cola and Mc Donald¶s A joint promotion was launched entitled. ³we go together´ whereby Coca cola was heavily promoted throughout the Mc Donald¶s franchises. Examples of this are: The Hilltop Story.The evaluation of competition such as Pepsi. Coca Cola and Nokia Under the crown promotion that gave away Nokia phones with the purchase of Coca Cola products. 4. The campaigns also assisted in increasing brand loyalty and confidence among consumers. 5. ³Caught Red Handed´ campaign that pin pointed consumers who were consuming Coca Cola and awarding them with cell phones and vice versa if they were caught conversing on a Nokia cell phone.
Consumers will purchase the Coca Cola because of the high standards and high quality of the Coca cola products. 5 http://whosbetter. An example of this is seen in the comparison of Coca Cola and Pepsi. Its positioning is based on the process of positioning by direct comparison and have positioned their products as to be beneficial to their target market. which deliver the core product. The augmented product is the extra consumer benefits provided to the consumers such as the fulfillment of higher level needs. ³Coca Cola´ is the most recognized trademark. Thankfully Coca Cola has invested several million dollars into the development and promotion of their brand resulting in worldwide recognition.3 Price The price of Coca Cola is one of the most important factors to consider when the consumer is purchasing. Image # 5 5 5. 5.´ Positioning Coca Cola applies positioning to allow consumers to see what is unique about its products in comparison to its competition. recognized by 94% of the world¶s population and is the most widely recognized word after ³OK. Coca Cola.wordpress. (Fig 2) Branding Coca Cola utilizes the individual brand strategy whereby each individual product receives their own brand name e.com/2009/11/ 8 .The main task of Coca Cola at this stage is to convince consumers of its benefits which will then persuade them to purchase Coca Cola. The popularity of a brand is often the deciding factor in terms of consumer purchasing.2 Product Coca Cola portrays their product on three levels: The actual product which is the parts and features.g.
com/archives/InstaPunkArchiveV2. loyal customers and technological edge Coca Cola is currently considered to be the leader in pricing.instapunk. Above the line Television and Radio.Coca Cola has used appealing words and slogans in their advertisements to make them seem more appealing.Coca-Cola uses µpenetration pricing¶ (low price for product) to achieve high market shares and revenue maximization overseas.Coca Cola uses this expressive form of advertising to persuade consumers that they are the # 1 drink through the use of repetition. Coca cola aims for consumers to perceive them as selective exposure through slogans such as: -Open Happiness 6 http://www. Coca-Cola¶s pricing strategy relies upon international and domestic competition. Image 6 6 Glittering generalities. Testimonials.Coca Cola uses this type of advertising to transfer feelings of the people existent in the commercial to the product. The costs of marketing products in developing countries have been kept low to achieve a high profit margin. Coca Cola also adapts a type of psychological pricing whereby its ending figures are 98 instead of . Marketing products in developed countries are relatively important. The company¶s pricing decisions are dependent on trade tariffs.00 which gives the consumers the perception that the product is cheaper. 5. therefore the pricing is kept higher than other regions but with same profit margin.4 Promotion Coca Cola utilizes both above the line and below the line promotions. taxes and regulations. brand recognition and penetration of the products etc.php3?a=682 9 . Due to the large market share. A very popular testimonial is the coke Santa that creates a positive image for Coca Cola therefore creating a competitive advantage.
The promotion sparked an interest within the public who avidly collected their Coca Cola caps. Marilyn Monroe and various famous professional athletes.com/ 10 . Coca Cola also uses Peripheral Route with celebrities such as Elvis Presley. By doing this Coca Cola has translated the classic elements of Coca Cola into something new and engaging that speak to today¶s style minded consumers. Coca Cola is associating themselves with the particular sport thereby gaining recognition and increasing market share. 5. Coca Cola has done this through advertisements that emanate traits that consumers can relate to. Singapore and Cairo. NASCAR.-Coca Cola makes good things taste better.Coca Cola has launched a green contest that is aimed at promoting environmental sustainability. FIFA world cup and English Football League. New York.Allowed consumers to get the opportunity to win a dream vacation to destinations such as Paris. NBA. Hollywood. Below the line Green contest.By targeting sports fans.5 Personality Coca cola has created a brand personality that consumers align themselves using an ideal self concept. The company has sponsored the Olympics. -Enjoy Coca Cola Sponsoring Sports. All the promotional tactics of Coca cola aim to shape the culture of the population to think that drinking Coca Cola is the way of life. Coca Cola Wonder of the World Promotion. Fig # 11 7 7 http://themarketingdirectors. NCAA.wordpress.
6. An example of this can be seen in past Coca Cola slogans 8 such as: -All Trails Lead To Ice-Cold Coca-Cola. Think Of Ice Cold Coca-Cola.com/oh/cocacolaantiques/slogans. the retailer as well as the payment method.0 Purchase Coca Cola has the ability to fulfill the pre purchase evaluation of any consumer due to its aggressive marketing mix strategies.2 Price and Lifestyle Mobile Vending.due to innovations they have developed a cash free way of purchasing Coca Cola via SMS text message. This type of payment method appeals to on the go consumers who are part of the modern age whereby cash is a thing of the past.Wherever You Are. When You Think Of Refreshment.angelfire.e. The purchase step means that consumers have come to a decision of the brand i. Coca Cola.Dependable As Sunshine 6.Coca-Cola Goes Along .1 Place and Distribution Coca cola does not sell directly to its consumers therefore it utilizes an indirect distribution via intermediaries. This is because Coca Cola utilizes an intensive distribution method whereby anywhere a consumer goes there is Coca Cola. This is a contributing factor towards Coca Cola¶s popularity and it can lead consumers to perceive Coca Cola as being reliable.html 11 . 8 http://www. . Whatever You Do.Along The Highway To Anywhere .Coke Follows Thirst Everywhere . . Wherever You May Be. In order for a consumer to purchase a Coca cola the following distribution channel is observed: -The Coca Cola Company -Wholesalers/ Distributors -Retail/ Corner Store/ Vending Machine -Consumer Some consumers may wonder why at almost every food place. gas station or convenience store you can find a Coca Cola.6.
This means that Coca Cola can give consumers so much satisfaction and enjoyment that they value it far above its price. When consumers associate Coca Cola with a low level of purchase involvement it is known as a habitual product that consumers purchase every day. Evidence of this can be found via the mobile campaign of Coca Cola and Cha Cha Mobile that enables Coca cola to gain a deeper understanding of consumers by allowing them to text questions and their opinions.7.engineering of its trademark shaped bottle to the launch of appealing and enticing marketing campaigns the Coca Cola Company has consistently sought to illustrate Coke as a hallmark of quality and style that seeks to remain ever present and relevant. After purchasing a Coca Cola the consumer would experience either: 1) Post Purchase Dissonance 2) Post Purchases Consonance Coca Cola has prided itself on having a high level of post purchase consonance. Coca Cola found that consumers who have had their complaints satisfactorily dealt with are more loyal than those who did not have an avenue to express their complaint. Coca Cola¶s has the ability to make consumers feel that they are experiencing an increase in marginal benefit against a constant marginal cost. 8. 12 . Coca Cola¶s success as the leading manufacturer of the carbonated drink market emanates their understanding of the importance of the consumers psychological core as well as the consumer environment and how it affects the decision making process.0 Post Purchase Evaluation This is an essential step in the decision making process for consumers because it decides whether product purchase has been a success or not. Coca Cola has portrayed its products as being modern and sophisticated that speaks the vocabulary of contemporary consumers as well as reflects the signature style that loyal older consumers have grown up with. Another important factor when consumers purchase Coca Cola is the level of purchase involvement.0 Conclusion Coca Cola has earned its status in the minds of consumers by being a leader in the world of style and reflecting the tastes and preference of each generation. Low Level of Purchase Involvement when consumers adapt a low purchase involvement with very limited post purchase evaluation they generally maintain a high level of repeat purchase. From the development of its original logo. therefore purchasing it without hesitation. to the re.
but also their cultural as well as social aspects that influence their purchasing decision.Coca Cola has truly understood the consumer not only how they think. 13 . This is clearly evident by coke being recognized as the most recognized and beloved brand in the world.
2006.com Coca Cola Available from: www. P. London: Geraldine Lyons.html http://sierrafath. 2nd Edition.com/ http://vi.. Miniard. Armstrong.R.com/oh/cocacolaantiques/slogans. J.2004.wordpress. 11th Edition.9. Consumer Behaviour: A European Perspective. Schiffman.com/ourcompany/mission 14 . L. FT Prentice Hall. & Engel.A. Weeks. New Jersey: Pearson Prentice Hall. L. Managing People. B & Gray. Essentials of Marketing Communications. Financial Times Press Pearson Solomon M et al.com/ http://www.instapunk.G.D. L.wordpress. 2nd Edition. 4th Edition..com/2008/06/question-what-is-maslows-hierarchy-of.asp http://askjason. 2009. Harlow: Pearson Education Ltd.W. Harlow: Pearson Education Ltd. 2009. Websites Company Profile. 6th Edition. 2010. Consumer Behaviour. 10th Edition. Cole. Kotler. & Kanuk. 2006..datamonitor. Harlow: Pearson Education Ltd. Management Theory and Practice.angelfire. P.php3?a=682 http://themarketingdirectors.. Principle of Marketing.us/view/fabiano/853685f33fa94489d1d38659507f42a2/ http://whosbetter. England.com/archives/InstaPunkArchiveV2. et al. 10th Edition.The Coca-Cola Company (2006) Available from: www.blogspot. P. 2010.com/2009/11/ http://www.wordpress. Kotler. P. Marketing Management. Scott. Consumer Behaviour. G.sualize.html Bibliography Books Blackwell. 2003. Finance & Marketing. G.net/business/marketing/buying_decision_process.F.coca-cola. Thomson South Western Blythe.0 Bibliography and References References 1) 2) 3) 4) 5) 6) 7) 8) http://tutor2u. J.
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