Marketing has gained a new twist in the recent past. Initially, marketing was given an inward approach. Business units laid emphasis on production. The main concern was to produce as much as possible and then look for the market. This has changed as consumers are becoming more aware of their needs. Technology has turned the world into a global village. Information is available to both consumers and the manufacturing firms (Piercy, 2009).
With limited trade barriers, a US firm can easily operate in the United Kingdom, while a Chinese businessperson can invest in the Kingdom of Saudi Arabia. There is no firm operating in a vacuum as the world is reduced into a smaller trading region. Consumers are also obtaining information about alternative products and where they can be found. Through the mass media, social media and other forms of communication, the consumer has become increasingly knowledgeable and very demanding.
Therefore, this paper will analyze how Coca Cola Company manages to market its products domestically and internationally. To capture this clearly, the paper will evaluate various aspects including how the company copes with cultural differences, the issue of social responsibility, political concerns and technological issues among others.
Global economic interdependence
Due to globalization, world economies rely on each other for success. The convergence of systems has offered many opportunities to companies such as Coca Cola. The company is able to produce goods in excess and make them available to other parts of the world through air transport.
This is attributable to the agents of globalization such as improved transportation and communication. Through the mediums of communication, the company is able to advertise and market its goods abroad. The world is currently treated as a single community due to globalization.
Goods are to be produced and consumed almost at the same time. Coca Cola Company has taken advantage of this convergence of systems to market its goods worldwide (Piercy, 2009). Furthermore, the existence of trade agreements allows the company to market its goods freely. The agreements provide for liberalism, which means that any entity is free to conduct any legal business around the globe.
Demographics and Physical Infrastructure
The world population has enabled the company to diversify its services. Domestically, the company has a strong consumer base that assures it survival. Furthermore, the customer base in the North America provides the company with a competitive edge. It is able to concentrate on the foreign markets since there is no tough competition locally. Furthermore, the profits obtained locally are utilized in strengthening the financial position of the firm in new markets (Holbrook, 2003).
Cultural factors have considerably influenced the behavior Coca Cola consumers. It usually determines what a customer wants and therefore affects his or her decision-making process. Generally, the way children are brought up normally affects their level of perception. It also enables them distinguish between basic goods and luxury goods, as well as recognizing important things according to the societal needs and lifestyles.
In relation to culture, marketers have become much keen to understand changes in cultural factors among diverse customers in order to customize products as per their lifestyles and traditional beliefs. Coca Cola Company is one such firm that has comprehended the effects of culture on its products. Certain products might be wanted in new regions or perhaps where they exist they would need an increase. It therefore becomes crucial for businesspersons to remain vigilant on cultural changes, which affects brand performance.
Social responsibly can be defined as the manner in which power is shared in the corporation. Furthermore, it can be defined as the way in which corporations meet the legal requirements in the process of making money. Public dimensions of corporate governance involve making rules at the organizational level aiming at reforming the organization and streamlining the internal linings. This aims at achieving self-governance of the firm (Woodruff, 1997).
From the above analysis, Coca Cola Company seeks to make sales more responsibly and accountably. On the other hand, this would force it to disclose more of its managerial tactics to shareholders and other stakeholders.
Because of the unique environment in terms of ownership and operation of the Company, its corporate governance tends to be different from those of other Multinational Corporations. The Company must always conform to domestic policies and national agendas of the host countries. This has made it easy for the company to market its goods locally and externally.
Political Systems and International System
In the international system, states are more concerned about their national interests. In the host countries, Multinational Corporations such as Coca Cola are usually under pressure to abide by the rules and laws. Domestically, local leaders are always dissatisfied with the operations of big companies since they do not serve their interests.
From time to time, the politicians would force the company to abide by unpopular rules. Coca Cola Company has managed to withstand pressure domestically and abroad (Holbrook, 2003). This is possible due to a number of reasons. Domestically, the company promotes social activities such as sports, which would win the confidence of local elites and the public.
The company has sponsored a number of sports in order to gain a competitive edge. Internationally, the company enters into negotiations with the ruling elites in order to reach at a compromise. For instance, the company promises jobs and other goodies to the locals, which pleases the political elites and the public. Furthermore, the company is always keen on maintain high morality.
Innovation is the best tool in the current competitive market. Emerging technologies are bringing in new trends that no marketer can manage without embracing creativity. As Piercy (2009) observes, in view of the emerging technologies, innovation can be the best tool that any firm that wishes to withstand market pressure can employ.
Change is a reality that no one can challenge. This change is double-edged, with possibility of giving either the positive or the negative edge to the firms involved. Although fate has a place in this, the positivity or negativity would always be determined by the conscious decisions of the firm. A slow response to change can be dangerous, just as a wrong step towards it would be. Embracing change would demand innovation and creativity by the firm.
This has been Coca Cola Company’s biggest asset. Starting out with just a few brands all of which were meant to refresh individuals who were thirsty, the company realized that such products would lack relevance during winters or when the temperatures were generally low. They then came up with products that would be consumed when temperatures were low. Then came the health concern and the company came up with iced tea and bottled water (Dasani) both of which are free of any industrial chemicals.
Holbrook, M. (2003). Customer value and auto ethnography: subjective personal introspection and the meanings of a photograph collection. Journal of Business Research, 58(1).
Piercy, N. (2009). Market-Led Strategic Change. Oxford: Butterworth Heinemann.
Woodruff, R. (1997). Customer Value: The Next Source for Competitive Advantage. Journal of the Academy of Marketing Sciences, 25(2).