1. Appropriate example the process of new product development.

Step 1 - Idea Generation

Sytematic Search for new Product Ideas Obtained From Employees and Also From
Customers – Competitors – Distributors and Suppliers.

Step 2 - Idea Screening

Helps spot good ideas and drop poor ones as soon as possible. Many companies have
systmes for rating and screening ideas which estimate: Market Size, Product Price,
Development Times & Costs, Manufacturing Costs, and Rate of Return. Then, the
ideas is evaluated against a set of general company criteria.

Step 3 - Concept Development

1. Develop New Product Ideas into Alternative detailed Product Concepts.

2. Concept Testing – Test the New-Product Concepts with Groups of Target
Customers.
3. Choose the One That Has the Strongest Appeal to Target Customers.

Step 4 - Marketing Strategy

Part One Describes Overall: Target Market, Planned Product Positioning Sales,
Market Share, Profit Share & Profit Goals.

Part Two Describes First-Year : Products Planned Price, Distribution, Marketing

Budget.

Part Three Describes Long-Run; Sales & Profit Goals, Marketing Mix Strategy

Step 5 – Business Analysis

Step 6 – Product Development

Business Analysis, Review of Product Sales, Costs, and Profits Projections to See if
they satisify Company Objectives
Step 7- Testing Marketing

Product and marketing program are introduced into more realistic market settings.
Can be very expensive and time consuming.

Test the following: Positioning strategy, advertising, distribution, pricing,branding,

packaging and budget levels.

Step 8 – Commercialization

Introducing the New Product into the Market

2. Why winning customers’ loyalty is important to any firm?
3. Explain the components of this marketing environment

Market Enviroment is consists of the actors and forces outside marketing that affect
marketing management’s ability to develop and maintain successful relationships with
its target customers.

Includes:

Microenvironment – forces close to the company that affect its ability to serve its
customers.

Macroenvironment – larget societal forces that affect the microenvironment.

4. What are SWOT and PEST analysis?

SWOT Analysis is strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT
analysis may be incorporated into the strategic planning model. Strategic Planning, including
SWOT and SCAN analysis, has been the subject of much research.

- Strengths: attributes of the person or company that are helpful to achieving the objective.

- Weakness: attributes of the person or company that are harmful to achieving the
objective.

- Opportunities: external conditions that are helpful to achieving the objestive.

- Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the
SWOTs. If the objective is not attainable a different objective must be selected and the
process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths,
weaknesses, opportunities and threats. It is particularly helpful in identifying areas for
development.

PEST analysis stands for “Political, Economic, Social, and Technological analysis” and
describes a framework of macro-environmental factors used in the environmental scanning
component of strategic management. Some analysis added legal and rearranged the
mnemonic to slept, inserting Environmental factors expanded it to PESTEL or PESTLE, which
is popular in the UK. The model has recently been further extended to steeple and steepled,
adding education and demographic factors. It is a part of the external analysis when
conduction a strategic analysis or doing market research, and gives an overview of the
different macro environmental factors that the company has to take into consideration. It is a
useful strategic tool for understanding market growth or decline, business position, potential
and direction for operations.
The growing importance of environmental or ecological factors in the first decade of the 21st
century have given rise to green business and encouraged widespread use of an updated
version of the PEST framework. STEET analysis systematically considers Socio-cultural,
Technological, Economic, Ecological, and Regulatory factors.

Coca Cola

Strengths Weaknesses
Internal -Popularity -Word of mouth
-well know -lack of popularity of many Coca Cola’s
brands
-branding obvious and easily recognized -Most unknown and rarely seen
A lot of finance -result of low profile or non-existent
advertising
Customer loyalty -health issues
International Trade
Threats Opportunities
External -changing health-consciousness attitude -many successful brands to pursue
-legal issues -advertise its less popular products
-Health ministers -buy out competition
-Competition (Pepsi) -More Brand recognition

Strengths- Coca Cola is an extremely recognizable company. Popularity is one of its superior
strengths that is virtually incomparable. Coca Cola is known very well worldwide. It's branding
is obvious and easily recognized. Things like, logos and promos shown on t-shirts, hats, and
collectible memorabilia. Without a doubt, no beverage company compares to Coca Cola's
social popularity status. Some people buy coke, not only because of its taste, but because it
is widely accepted and they feel like they are part of something so big and unifying. At the
other end of the spectrum, certain individuals choose not to drink coke, based solely on
rebelling from the world's idea that coke is something of such great power. Overwhelming is
the best word to describe Coca Cola's popularity. It is scary to think that its popularity has
been constantly growing over the years and the possibility that there is still room to grow. If
you speak the words “Coca Cola”, it would definitely be recognized all around the world.
Money is another thing that is a strength of the company. Coca Cola deals with massive
amounts of money all year. Like all businesses, they have had their ups and downs
financially, but they have done well in this compartment and will continue to do well and
improve. The money they are earning is substantially better than most beverage companies,
and with that money, they put back into their own company so that they can improve. Another
strength that is very important to Coca Cola is customer loyalty. The 80/20 rule comes into
effect in this situation. Eighty percent of their profit comes from 20% of their loyal customers.
Many people/families are extremely loyal to Coca Cola. It would not be rare to constantly find
bottles and cases of a product such as coke in a house. It seems that some people would
drink coke religiously like some people would drink water and milk. This is an improbable feat.
Customers will continually purchase these products, and will probably do so for a very long
time. If two parents were avid Coca Cola drinkers, this will be passed down do their children
as they grow loyal to the company. With Coca Cola’s ability to sell their product all over the
world, customers will continue to buy what they know and what they like…Coca Cola
products.

Weaknesses- Coca Cola is a very successful company, with limited weaknesses. However
they do have a variety of weaknesses that need to be addressed if they want to rise to the
next level. Word of mouth is probably a strength and weakness of every company. While
many people have good things to say, there are many individuals who are against Coca Cola
as a company, and the products in which they produce. Word of mouth unfortunately is
something that is very hard to control. While people will have their opinions, you have to try to
sway their negative views. If bad comments and views are put out to people who have yet to
try Coca Cola products, then that could produce a lost customer which shows why word of
mouth is a weakness. Another aspect that could be viewed as a weakness is the lack of
popularity of many of Coca Cola’s drinks. Many drinks that they produce are extremely
popular such as Coke and Sprite but this company has approximately 400 different drink
types. Most are unknown and rarely seen for available purchase. These drinks do not
probably taste bad, but are rather a result of low profile or non existent advertising. This is a
weakness that needs to be looked at when analyzing their company. Another weakness that
has been greatly publicized is the health issues that surround some of their products. It is
known that a popular product like coke is not very beneficial to your body and your health.
With today’s constant shift to health products, some products could possibly loose customers.
This new focus on weight and health could be a problem for the product that are labeled
detrimental to you health.

Opportunities- Coca Cola has a few opportunities in its business. It has many successful
brands that it should continue to exploit and pursue. Coca Cola also has the opportunity to
advertise its less popular products. With a large income it has the available money to put
some of these other beverages on the market. This could be very beneficial to the company if
they could start selling these other products to the same extent that they do with their main
products. Another opportunity that we have seen being put to use before is the ability for Coca
Cola to buy out their competition. This opportunity rarely presents itself in the world of
business. However, with Coca Cola’s power and success, such a task is not impossible. Coca
Cola has bought out a countless number of drink brands. An easy way to turn their profit into
your profit is too buy out their company. Even though this may cost a vast amount of money
initially, in the long run, if all goes to plan, it results in a large profit. Also, the company will no
longer need to worry about this product being part of the competition. Brand recognition is the
significant factor affecting Cokes competitive position. Coca Cola is known well throughout
90% of the world population today. Now Coca Cola wants to get there brand name known
even better and possibly get closer are to 100%. It is an opportunity that most companies will
ever dream of, and would be a supreme accomplishment. Coca Cola has an opportunity to
continue to widen the gap between them and their competitors.

Threats- Despite the fact that Coca Cola dominates its market, it still has to deal with many
threats. Even though Coca Cola and Pepsi control nearly 40% of the entire beverage market,
the changing health-consciousness attitude of the market could have a serious effect on Coca
Cola. This definitely needs to be viewed as a dominant threat. In today’s world, people are
constantly trying to change their eating and drinking habits. This could directly affect the sale
of Coca Cola’s products. Another possible issue is the legal side of things. There are always
issues with a company of such supreme wealth and popularity. Somebody is always trying to
find fault with the best and take them down. Coca Cola has to be careful with lawsuits. Health
minister could also be looked at as a threat. Again, some people may try to exploit the
unhealthy side of Coca Cola’s products and could threaten the status and success of sales.
Other threats are of course the competition. Coca Cola’s main competition being Pepsi, sells
a very similar drink. Coca Cola needs to be careful that Pepsi does not grow to be a more
successful drink. Other product such as juices, coffee, and milk are threats. These other
beverage options could take precedent in some people’s minds over Coca Cola’s beverages
and this could threaten the potential success it presents again.