marketing ch.5 Essays

marketing ch.5 Essays marketing ch.5 Paper marketing ch.5 Paper Essay Topic: Literature false When analyzing the immediate environment and the macroenvironment, marketers must be careful to keep the firm at the center of all analyses. ⠐ £ ⠐ £ false In the immediate environment, the competition has no effect on consumers. ⠐ £ false Demographics are transmitted by words, literature, and institutions from generation to generation. ⠐ £ false As the euro becomes more expensive relative to the dollar, Americans are likely to purchase more European wines. ⠐ £ ⠐ £ false Macroenvironmental factors include the company, competition, and corporate partners. ⠐ £ false The global spread of technology has eliminated all differences between cultures. ⠐ £ ⠐ £ false Tweens rarely use any type of technology. false he members of Generation X are also referred to as Digital Natives. ⠐ £ ⠐ £ false One of the social trends discussed in the text that is shaping consumer values in the U.S. and around the world is a concern about the vast disparity in income. ⠐ £ ⠐ £ false Burger King no longer uses SpongeBob SquarePants to promote burgers and fries because the character is no longer popular with young children. ⠐ £ false Socially responsible marketing is defined as a strategic effort by firms to supply customers with environmentally friendly merchandise. ⠐ £ ⠐ £ false Inflation refers to the cost of borrowing money. ⠐ £ identify potential opportunities By paying close attention to customer needs and continuously monitoring the environment in which it operates, a good marketer can ⠐ £ ⠐ £ identify potential opportunties As a retail clothing store manager, Randy frequently asks his staff what customers are saying and what they are asking for. He also attends the quarterly clothing show at the regional merchandise mart. Randys efforts will likely help him to ⠐ £ ⠐ £ all of these The factors in the immediate marketing environment include the actions of the ⠐ £ ⠐ £ consumers The centerpiece of the Marketing Environment Analysis Framework is ⠐ £ competition A firms macroenvironment includes all of the following EXCEPT ⠐ £ ⠐ £ the consumer the center of all marketing efforts is ⠐ £ ⠐ £ her target customers As director of a small art gallery, one of Fredericas major concerns is the preferences of the people who buy her artists work. Frederica recognizes that the center of her marketing efforts is ⠐ £ ⠐ £ to offer greater value than competitors offer. One of the goals of value-based marketing is ⠐ £ ⠐ £ from a customers point of view. Ryan knows that one of the goals of value-based marketing is to provide greater value to consumers than competitors offer. To accomplish this goal, Ryans firm must look at everything it does ⠐ £ ⠐ £ needs, wants, and ability to purchase Yvonne knows her firm must look at everything they do from a consumers point of view. One major difficulty is that a consumers __________ change(s) over time. ⠐ £ ⠐ £ This generation puts a strong emphasis on work/life balance and are experts at using various media forms. Select the statement that best describes the key traits of Generation Y. ⠐ £ Time-poor society When an office supply store offers self-check-out, extended hours at its stores, and online shopping with next day delivery, it is trying to address what type of concern? ⠐ £ privacy. When you register your telephone number with the Do Not Call Registry, you are responding to a need for⠐ £ ⠐ £ the firm itself In the immediate marketing environment, one key factor that affects the consumer is ⠐ £ match their core competencies. Successful firms focus their efforts on satisfying customer needs that ⠐ £ match its core compenetencies The Mayo Clinic in Minnesota is known for top-quality medical care. For decades, even presidents and dictators from around the world flew to the Mayo Clinic to utilize its services. The Mayo Clinic used its reputation to create additional medical facilities in Jacksonville, Florida, and elsewhere. This is an example of a firm focusing its efforts on satisfying customer needs that ⠐ £ all of these When evaluating competitors, marketers need to assess competitors ⠐ £ likely reaction to Yuris promotional activities. Yuri is considering a new promotional campaign in which he will compare his products to those of his competitors. Before initiating the promotional campaign, Yuri will likely assess his competitors strengths, weaknesses, and ⠐ £ ⠐ £ corporate partners The firms that work along with the focal firm to provide goods and services to consumers are viewed as⠐ £ ⠐ £ corporate partners Firms that provide materials, transportation, advertising, accounting, and other goods and services, helping a firm create value for its customers, are called ⠐ £ ⠐ £ external The difference between a firms immediate marketing environment and its macroenvironment is that the macroenvironment is ⠐ £ ⠐ £ culture The shared meanings, beliefs, morals, values, and customs of a group of people constitute their ⠐ £ regional culture Political candidates are notorious for appealing to the different beliefs and values of groups of potential voters in different areas of the country. These politicians are appealing to differences in ⠐ £ ⠐ £ culture Insight Guides, a line of travel books, provides travelers with background information about the peoples beliefs, values, and customs. Insights books educate travelers about a countrys ⠐ £ ⠐ £ can help to identify a particular group that might be interested in the marketers products. When studying culture, the challenge for marketers is to determine whether culture all of these Marketers have learned that culture influences __________ consumers buy. ⠐ £ ⠐ £ country culture Late in the day on September 11, 2001, the day of the World Trade Center attacks, Americans purchased all the American flags Walmart stores had available, nationwide. These purchases were indicative of can be used as a relevant identifier for a particular target group. he United States has often been called the melting pot society, integrating people from many different cultures into the social fabric of the country. The challenge for marketers is to determine whether a groups culture ⠐ £ ⠐ £ all of these identifiable elements of a countrys culture include ⠐ £ ⠐ £ language When considering the use of a radio commercial in England that was designed for U.S. markets, a marketer would likely need to consider which of the following aspects of culture that might be different between the two countries? ⠐ £ regional culture In New England foot-long sandwiches are called grinders while in many other parts of the country they are called subs. This is an example of the impact of ⠐ £ ⠐ £ reduce regional cultural differences. the shift of population from the Rust Belt in the North to the Sun Belt in the South and Southwest will likely ⠐ £ ⠐ £ all of these Typical demographic data include ⠐ £ ⠐ £ demographics When marketers look at advertising media they often begin with viewer or listener profiles such as age, income, gender, and race. They then compare the media profile with their target audience. These marketers are using __________ to see if the media fit with their advertising agenda. ⠐ £ ⠐ £ purchase behavior Generational cohorts are groups of people of the same generation who have similar __________ because they have shared experiences and are in the same stage of life. ⠐ £ ⠐ £ demographic data indicating that Monday Night Football attracts male viewers and the Academy Awards attracts female viewers. Viewers of the baseball World Series are likely to see ads for beer and cars, and viewers of the Academy Awards broadcast (the Oscars) are likely to see ads for clothing and hair care products, due to ⠐ £ baby boomers From a marketing perspective, what separates __________ from the generation before them is that they are individualistic, value leisure time as a high priority, and are trying to maintain their youth. ⠐ £ generation x Marketers selling to the __________ generational cohort need to recognize that these consumers are not too interested in shopping, are cynical, and are less likely to believe advertising claims than the generation(s) before them. ⠐ £ ⠐ £ generation x Julie is an experienced shopper. She has been doing the familys weekly shopping since she was twelve. She is not very interested in status items, and questions advertising claims. Julie is most likely to be in the __________ generational cohort. ⠐ £ ⠐ £ generation x The __________ generational cohort is characterized by the question, Why shop at Neiman Marcus when Kohls and Target are just as good, cheaper, and more convenient? ⠐ £ ⠐ £ generation y Tweens are part of which generational cohort? ⠐ £ greenwashing ABC Company knew that its customers were interested in environmentally friendly business practices, so it began marking all of their products as environmentally friendly because they were made with all natural ingredients, even though ABCs plant was one of the worst polluters in town. The new term for this practice is ⠐ £ income in the United States has become more unevenly distributed. When considering income as a demographic variable affecting marketing efforts, marketers need to recognize that ⠐ £ ⠐ £ creates opportunities to provide value to each group. Astute marketers recognize that the increasing disparity of income between upper- and lower-income groups value ince the late 1970s, most American families have seen their income growth stagnate, with income rising only slightly more than inflation. This has changed many Americans consumers concept of ⠐ £ ⠐ £ useful predictions of purchase behavior. for some products, marketers can combine education level with other data like occupation and income to obtain ⠐ £ ⠐ £ spend their disposable income differently. Marketers know that, compared to high school graduates who are working full time, college students ⠐ £ have been blurred in the past several years. gender roles they speak different languages and come from different cultures. Marketers should not assume that they can target all Asian consumers in the United States with one strategy because approximately 80 percent of all population growth in the next 20 years is expected to come from minority groups. Marketers in the United States are paying increasing attention to ethnic groups because ⠐ £ New York, Los Angeles, and Chicago. Marketers are more likely to find higher concentrations of foreign-born Americans and recent immigrants in⠐ £ the fastest growing minority population. Though Asian Americans comprise only 3 percent of the U.S. population, they represent ⠐ £ green marketing strategic efforts to supply consumers with environmentally friendly merchandise are called ⠐ £ more green-consumer conscious. Compared to consumers in the United States, Europeans are ⠐ £ ⠐ £ add value that other products do not have. By offering environmentally responsible products, green marketers ⠐ £ ⠐ £ value contributing to a greener environment. Many American consumers are purchasing hybrid automobiles even though they are more expensive and sometimes less fuel efficient when compared to compact conventional autos. These consumers ⠐ £ Honest telemarketers found it easier to reach customers. he U.S. Federal Trade Commission created the Do Not Call Registry to curb problems with unwanted telephone solicitations. Which of the following was NOT one of the results? ⠐ £ his lack of privacy. Recently, Jason, one of the few Americans who has not registered with the Do Not Call Registry, received a call from a marketer suggesting Jason needed additional insurance since he had just become a father and changed jobs. Jason was shocked and very concerned about ⠐ £ grab consumers attention. The many demands on consumers today have made it more difficult for marketers to ⠐ £ ⠐ £ all of these The reality that marketers face consumers who are time poor is illustrated by the fact that ⠐ £ ⠐ £ making their products available whenever and wherever consumers want them. Because Americans are working longer hours without increases in real, disposable income, and are utilizing an army of communication devices to keep up with the demands in their personal and work lives, retailers are ⠐ £ ⠐ £ the time-poor society. David travels a great deal in the course of his business. He has noticed ads in many new places, including fortune cookies, baggage claim conveyor belts, on the sides of buses, etc. Marketers would like to reach David, and are responding to concerns about ⠐ £ ⠐ £ advertising their products heavily on daytime television. Gretchen has a job that requires working late several nights a week. This puts a lot of strain on her to find time to shop and prepare meals for her family. Grocery stores recognize the importance of consumers like Gretchen and have responded in all of the following ways except ⠐ £ meet inventory needs. A recent advance in technology called RFID makes it easier for manufacturers, distributors, and retailers to track items through production, distribution, and sales. This advance helps the firm to ⠐ £ ⠐ £ age When marketers monitor the economic situation affecting their target markets, they are likely to monitor changes in all of the following EXCEPT ⠐ £ Mexican products became more expensive while U.S.-made products became comparatively less expensive. In the early 1990s, the inflation rate in Mexico was twice the rate in the United States, but the Mexican monetary authorities kept the peso/dollar exchange rate almost constant. For Mexican consumers ⠐ £ ⠐ £ more Canadian visitors. Every winter, resort managers in Myrtle Beach, South Carolina, check the exchange rate between the U.S. dollar and the Canadian dollar. In recent years, the exchange has changed from approximately $0.65 Canadian dollars per U.S. dollar, to approximately equal value of both currencies (i.e., $1 Canadian is worth about the same as $1 U.S.). These resort managers should expect ⠐ £ ⠐ £ increased choices. Laws that prohibit the formation of monopolies or alliances that would damage a competitive marketplace benefit consumers through ⠐ £ ⠐ £ generation z Which of the following groups has never lived without easy access to the Internet and other digital technologies? ⠐ £ ⠐ £ culture Which of these is a macroenvironmental factor? ⠐ £ ⠐ £ green marketing Kimberly-Clark recently introduced rolls of toilet paper without the cardboard core. What social trend does this product respond to? ⠐ £ ⠐ £ generation z The members of the __________ generational cohort tend to share preferences for TV shows and video games with their parents. ⠐ £ generation z the members of the __________ generational cohort were born into a world where the Internet and extensive digital technologies already existed. ⠐ £ creating an advertising campaign to target elementary school children. If McDonalds wanted to change its marketing strategy in response to the social trends outlined in the text, it might consider all of the following ideas EXCEPT ⠐ £ wireless payments from mobile devices. Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and in-store services current with technological advances. You would be experimenting with the next expected development in mobile technology, which is ⠐ £ ⠐ £ greenwashing Some companies have been accused of taking advantage of the current social trend of green marketing, positioning their products as environmentally friendly when this may not actually be the case. This is called ⠐ £ ⠐ £ yoga Part of the social trend toward health and wellness is a concern about the increasing degree of obesity in the United States. In addition, trend-watchers are noting the increasing popularity of ⠐ £ legislation and laws The political/regulatory environment comprises political parties, governmental organizations and ⠐ £ ⠐ £ baby boomer baby boomer gen y Which generation is also known as Millennials? ⠐ £ The first generation of latchkey children. Generation X is is known for which of the following characteristics? ⠐ £ $5,800 the poorest 10 percent of the U.S. population earned an average of _______ in 2010. ⠐ £ African American U.S. households are more affluent than previous studies suggested. Which statement about the changing diversity in the United States is TRUE? ⠐ £ privacy concerns Which social trend would lead you to purchase a protection plan against identity theft? ⠐ £ ⠐ £

Boiling Point Elevation Example Problem

Boiling Point Elevation Example Problem This example problem demonstrates how to calculate boiling point elevation caused by adding salt to water. When salt is added to water, the sodium chloride separates into sodium ions and chloride ions. The premise of boiling point elevation is that the added particles raise the temperature needed to bring water to its boiling point. The extra particles interfere with the interactions between solvent molecules (water, in this case). Boiling Point Elevation Problem 31.65 g of sodium chloride is added to 220.0 mL of water at 34  °C. How will this affect the boiling point of the water?Assume the sodium chloride completely dissociates in the water.Given: density of water at 35  °C 0.994 g/mLKb water 0.51  °C kg/molSolution:To find the temperature change elevation of a solvent by a solute, use the equation:ΔT iKbmwhereΔT Change in temperature in  °Ci van t Hoff factorKb molal boiling point elevation constant in  °C kg/molm molality of the solute in mol solute/kg solvent.Step 1 Calculate the molality of the NaClmolality (m) of NaCl moles of NaCl/kg waterFrom the periodic tableatomic mass Na 22.99atomic mass Cl 35.45moles of NaCl 31.65 g x 1 mol/(22.99 35.45)moles of NaCl 31.65 g x 1 mol/58.44 gmoles of NaCl 0.542 molkg water density x volumekg water 0.994 g/mL x 220 mL x 1 kg/1000 gkg water 0.219 kgmNaCl moles of NaCl/kg watermNaCl 0.542 mol/0.219 kgmNaCl 2.477 mol/kgStep 2 Determine the van t Hoff factorThe van t Hoff factor, i, is a constant associated with the amount of dissociation of the solute in the solvent. For substances which do not dissociate in water, such as sugar, i 1. For solutes that completely dissociate into two ions, i 2. For this example NaCl completely dissociates into the two ions, Na and Cl-. Therefore, i 2 for this example.Step 3 Find ΔTΔT iKbmΔT 2 x 0.51  °C kg/mol x 2.477 mol/kgΔT 2.53  °CAnswer:Adding 31.65 g of NaCl to 220.0 mL of water will raise the boiling point 2.53  °C. Boiling point elevation is a colligative property of matter. That is, it depends on the number of particles in a solution and not their chemical identity. Another important colligative property is freezing point depression.

Petit Verdot - Red Wine Grape Essay Example | Topics and Well Written Essays - 1250 words

Petit Verdot - Red Wine Grape - Essay Example The distinct nature of this wine is its inherently tart taste. This is of course the direct result of the high levels of tannin that are represented within the fruit itself. As a function of the fact that the wine is red, a large component of the color as well as the taste is concentric upon the level to which the grape skin itself is involved in the process of creating the juice which will in turn be fermented (Cejudo-Bastante et al 2011). Likewise, as tannin usually specifically resides within the skin of the grape, a process that is heavily intensive on using the skins to differentiate the wine will likely lead to a darker and more tart rendition of the wine as compared to a process that does not extensively uses these tannin-laden skins (Bird 2011). Although many authors belabor the point with regards to tannin, complaining that too much causes a bitter and or unpalatable wine, this is not the case with petit verdot, as experienced by this author. Although the bottle that was sam pled exhibited a distinctly bitter aftertaste; however, this was not so much the case that a meaty food paring such as veal or a type of gamey fowl could not easily compliment this (Herdenstam et al 2001). Critics have claimed that the wine exhibits elements of flavor similar to an aged leather, banana chips, and/or pencil shavings. The personal experience of this author noticed that of these three distinct tastes, that of pencil shavings mixed with a distinctly floral aftertaste was what most defined the wine when sampled by itself. Having done a fair amount of research into this specific wine prior to actually buying a bottle to sample, I had come to the realization that the best food combinations would be concentric around very earthy and hearty standard fare as a way to counteract the nature of this particular wine. It is necessary to note that although petit verdot is a particular type of grape, it is almost always used as a way to differentiate a certain way (Martinez-Gil et a l 2012). In other words, elements of petit verdot are often added to a given wine as a way to give a more full body and varied or nuanced taste. Alternatively, fire scorched and grilled foods also help to differentiate the taste of the food when paired with petit verdot. Due to the particular nature of the fruit itself, it is amenable to being used in this complimentary way due to the fact that by itself it would likely be considered to be too tart for normal consumption and individual food pairings. What is equally interesting about this particular wine is the fact that due to the fact that it is neither widely known nor popular, food parings is not an issue that has been fully developed as compared to other much more popular and well known varieties. It was precisely this approach that this author has chosen to take with respect to pairing the wine with the best available food. As a way to enhance the experience, this author set out to cook a meal that would help to bring out the well-balanced nature of the wine as opposed to many of the more harsh attributes that many wine critics seem so oddly fixated upon (MacNeil 2001). In this way, a meal was prepared that featured grilled duck filets along with a medley of seasoned vegetables with grilled corn prepared on the same grill as the

Flexography or Solvent Recovery (choose just one of these two topics) Research Paper

Flexography or Solvent Recovery (choose just one of these two topics) - Research Paper Example Additionally, there is wealth of information about the topic. This paper therefore, aims to review various literatures on the applications and importance of flexography, in information technology and the main steps followed in the process. According to Johansson colleague, flexography is described as a printing process which uses flexible relief plate (86). It is claimed to be the updated version of an older printing process which was known as letter press. The process is claimed that it can print on any substrate. Various researchers also argue that this process is well suited for printing large areas of solid color. The paper will conclude by summarizing all the key points that have been outlined. The analyses of these points will be made so as to determine the various applications of flexography in graphic information technology. The paper will also summarize the importance of this method, in information technology that makes it very popular than any other printing

Evaluating Customer Retention Methods used by Coca Cola

Evaluating Customer Retention Methods used by Coca Cola A consumer is a person who spots a need or desire, and then looks for the best way to satisfy his or her need either by purchase or acquisition (Solomon et al, 2010). Consumer behaviour as defined by Solomon et al (2006) is the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences to satisfy needs or desires. Customer retention is vital these days and organisations are looking for the best way to please and satisfy the interest of their consumers. According to Fill (2009), the understanding of the buyers behaviour makes marketing strategies and plan come out successful. The Coca-Cola Company is soft drink industry that has been able to build its brand loyalty with its consumers over its years of operation, despite the highly competitive market (Euromonitor, 2010). But this success would not have been realistic without understanding who the consumer is, what the consumer needs and how the consumer behaves. The Econo mic recession was a trying time for companies which led to the closures of some and loss for majority, the soft drink industry is not an exception and Coca- cola which falls under the soft drink industry will be analysed on how effective the management of their consumers was to in ensuring their survival in the recession. 1.1 A brief summary of The Coca- Cola operations The Coca-Cola Company (TCCC) is the largest manufacturer, distributor and marketer of non alcoholic beverage, concentrates and syrups in the world. Coca-cola has a portfolio of more than 3,300 beverages, from diet and regular sparkling beverages to still beverages such as 100 percent fruit juices and fruit drinks, waters, sports and energy drinks, teas and coffees, and milk-and soy-based beverages, which are now sold in more than 200 countries in the world. (Coca-cola, 2010). Coca- cola first got to Britain in the year 1900, after Charles Candler brought a jug of syrup along on a visit to England. Soon after, in the early 1920s, it went on sale at the London Coliseum and in Selfridges. Since then coca-cola Britain has come up with innovative soft drinks namely: Coca-cola; Diet Coke; Coca-cola zero; Sprite; Sprite zero; Fanta;Fanta Zero; 5 Alive; Schweppes; Schweppes zero; Powerade; Powerade zero; Kia ora; Kia ora(no added sugar); Dr. Pepper; Dr. Pepper zero; Lilt; Lilt Zero; Oasis; Oasis extra light; Glaceau vitamin water and Relentless. (Coca-cola, 2010) With about 4,650 employees, Coca-cola GB claims to have sold 228million cases in 2008. Pic. 1.1 The Coca-Cola Company Great Britain brands Available on this link- http://www.coca-cola.co.uk/brands/ 1.2 An overview of the soft drink industry in Great Britain Mintel (2010) stated that close to one-quarter of companies in the UK soft drinks market is growing at more than 10% per year. Some of the main players in the UK soft drink industry include Coca-cola, Pepsi cola UK, Tropical UK, Nestle UK etc to mention but a few. The British Soft Drinks Associations 2010 UK Soft Drinks Report found that the overall market grew by 1.7% in 2009, with total consumption reaching 14,140 million litres, at a retail value of  £13.224 billion (Mintel, 2010). The British Soft Drinks Assocaition (2010) stated that it was encouraging to see that the soft drinks market was holding up during the economic downturn. According to M intel (2010), for the second year running, Coca-cola topped interbrands best global brands table, placing it above its competitors in the soft drink industry. The coca-cola company has continued to focus on expanding its business through taking tactical places in niche soft drinks producers, by purchasing a stake in UK smoothie produce r, Innocent Drinks (Euromonitor, 2010). 1.3 The recession in United Kingdom Recessions occur during the down or contraction phase of the business cycle. The term business cycle refers to the familiar ups and downs of economic activity. (Pearce and Michael 2006). Furthermore, Pearce and Micheal (2006) opined that recessions cause significant declines in resources available to the firm because customers spend less, lenders lend less, and competitive rivalry increases. Initially, the behaviour of consumers changes during recessions. They have less money to spend and cut back personal spending in response to the overall decline in economic activity. Industrial and business customers may become disloyal, demand renegotiated contract terms, and alter purchase patterns. Also by Pride and Ferrell (1995), recession is a stage in the business cycle during which unemployment rises and total buying power declines, stifling both consumers and business peopless propensity to spend. The UK economy was growing faster than the average for the Euro zone throughout most of this decade. However, an abrupt slowdown began in 2008 and the economy entered a recession in the third quarter. According to Euromonitor (2010), real gross domestic profit fell by 4.9% in 2009, making this the UKs longest post-war recession. The UK has been harder hit than many countries because of its large financial sector. The fiscal position has deteriorated over the past several years. The deficit was pushed even higher as a result of the bailout of large banks. The number of unemployed also rose by 50% during the recession with 800,000 jobs being lost (Euromonitor, 2010). The recession led to business closures, job losses and a lack of employment opportunities in the UK (Athey, 2009). This first global recession in the new era of globalization, started in the US, spread to Europe, and eventually became global; its the worst economic crisis since the great depression. (Stiglitz and Joseph, 2 009). 1.4 The Coca-Cola Company and the recession TCCCs gross profit margin decreased to 64.2 percent in 2009 from 64.4 percent in 2008, primarily due to foreign currency fluctuations, adverse geographic mix as a result of expansion in their up and coming markets, current focus to steer better reasonable initiatives across different major markets and unfavourable channel and marketing mix in some certain markets. (Coca-Cola, 2010). Even though there was a slight decrease (0.2%) in their profit margin compared to the previous year, TCCC arguably performed well despite the economic downturn. The unit case volume in TCCC is one of the measures of the fundamental strength of the company because it helps to measure progress at their consumer level. In Europe, the sales volume of year ended 2009 versus year ended 2008 shows that the unit case volume in Europe decreased 1 percent, caused mainly by the ongoing hard macroeconomic situations in most part of Europe. These hard macroeconomic conditions influenced major markets and caused a decline in the unit case volume of 8 percent in South and Eastern Europe, 4 percent in Iberia and 2 percent in Germany. The volume declines in these markets were partially made up for by 6 percent unit case volume growth in France and 4 percent growth in Great Britain.(Coca-cola, 2010). Table 1.1- Financial result of The Coca-Cola Company Year Ended December 31, 2009 2008 2007 2006 2005 (In millions except per share data) SUMMARY OF OPERATIONS Net operating revenues $ 30,990 $ 31,944 $ 28,857 $ 24,088 $ 23,104 Net income attributable to shareholders 6,824 5,807 5, 981 5, 080 5, 872 GROSS PROFIT 19,902 20,570 18,451 GROSS PROFIT MARGIN 64.2% 64.4% 63.9% PER SHARE DATA Basic net income $ 2.95 $ 2.51 $ 2.59 $ 2.16 $ 2.04 Diluted net income 2.93 2.49 2.57 2.16 2.04 Cash dividends 1.64 1.52 1.36 1.24 1.12 BALANCE SHEET DATA Total assets $ 48,671 $ 40,519 $ 43,269 $ 29,963 $ 29,427 Long-term debt 5,059 2,781 3,277 1,314 1,154 1.5 Scope of Study The interest of this study lies mainly with The Coca-cola Company, focusing on Coca-cola Great Britain as the scope of study. This study also examines the level at which the recession affected the sales in coca-cola and the consumers attitude towards the purchase of coca-cola. CHAPTER TWO 2.0 Key Consumer Behaviour Aspects Three key consumer aspects have been carefully selected from Jiang (2010) as explained in the Consumer Behaviour Lectures; the following aspect of the consumer behaviour may have influenced the continuous purchase of coca-cola products despite the economic downturn- the buying process, Attitude formation and Motivation. 2.1 The Buying process A buying decision making process is the selection of an option from two or more alternative choices (Jiang, 2010). Coca-colas consumers can be explained in Consumer as a Problem Solver (Habitual Decision Maker). A habitual decision maker makes choices that are characterised by an impulse made with little effort and without conscious control (Solomon et al, 2006). Coca-colas brands are low involvement products and so require little information search. Most decisions made by people who consume coca-cola are with little or no conscious effort. Coca-cola consumers purchase Coke for example based on a habit that has been formed over time. Also the Evaluation of alternatives can be used to explain the brands resistance to the recession, much of the consumers effort that goes into a purchase decision develops at the stage in which a choice must be made from the accessible alternatives (Solomon et al, 2006). In many cases, there are a number of alternatives (such as water, soft drink or alcohol) a consumer could consider in satisfying a biogenic need, i.e. to conquer thirst. A consumer that has formed a habit overtime to purchase diet Coke for example will always have in mind a diet coke whenever hes thirsty. Branding can also be an influence on the evaluation of alternatives. In a survey of Global Brands, Inter Brand and Business Week identified the significance for companies to create communities around their products and services, which gives the customers the opportunity to feel as if they own the brand (Solomon et al, 2006). Fill (2009) also supported that as a brand becomes established with a buyer, so the psycholo gical benefits of ownership are preferred to competing offerings, and a form of relationship emerges Coke is not only seen as a drink by its consumers, but seen in the light of its heritage and relationship with them( Payne,2007). Brands also create impressions and strong feelings so much that when people see the coke bottle with its red label, and the content, people suddenly feel thirsty and the need to have a drink (Riesenbeck and Perrey, 2007) According to Mintel, (2010), the Interbrand ranked Coca-cola as the number one global brand in the year 2009 and 2010 respectively. Brands can influence a consumers choice in a decision making process, in a study conducted, 51percent of consumers preferred Pepsi over Coke , while in an open test, only 23percent preferred Pepsi over coke(Jenkinson, 1995). In my opinion, Coca-cola consumers have developed a relationship with the brand, which makes them to choose coca-colas brands amongst all other alternatives even in a recession. The econom ic downturn did not affect consumers choices, habits did not change despite the recession; coca-cola consumers did not change their product preferences because a habit has been formed over time. Table 2.1 Buying Decision making process Evaluations After purchase behaviour/feeling Involvement Information search Need recognition Need Purchase Decision Identity Alternatives Source- (Jiang, 2010) 2.2 Attitude Formation Attitude is a persons learned predisposition, tendency to respond to an object in a consistently favourable or unfavourable way (Allport, 1935) as cited by (Jiang, 2010). An attitude formed, lasts over a period of time, an attitude towards what a person eats or drink or developing an attitude towards different brands (such as drinking diet Coke rather than drinking diet Pepsi) or also having an attitude towards a general consumption pattern(such as eating twice to eating once in a day) (Solomon et al, 2006). The Utilitarian Function which is related to the basic principles of reward and punishment will be used to explain why TCCC was not entirely affected by recession. Attitudes are formed based on the presumed product qualities (either pleasure or pain) (Solomon et al, 2006). Attitudes influence a consumers decision making and the goal of a marketer is always to create a positive attitude towards a product or change existing attitudes (Fill, 2009). In a recent research conducted by TCCC to evaluate consumers attitudes towards its brands, it revealed that coca-cola is the brand most associated with happiness (Coca-cola, 2010). The result of the survey revealed that over a half of the people that participated in the research said its the taste that makes them smile others said sharing a bottle of coca-cola with family and friends can provide an opportunity to spend time together (Coca-cola, 2010). Coca-cola consumers have developed an attitude overtime, so the recession would not change their product preference but might just alter their consumption pattern (such as reducing the intake of one three bottles per day to two bottles per day). The theme of the TCCC also stresses straight forward benefits (Coca-cola.Open Happiness). TCCC develops strategies to penetrate their consumers lifestyle to pass a message. In order to promote Coca-Cola Zero (one of Coca-Colas brands),TCCC partnered with the Twentieth Century Fox and director Ja mes Camerons for his epic-adventure and blockbuster film Avatar. This promotional strategy helped to form an attitude towards Coca-Cola Zero and raise its awareness. They also use promotional activities and sponsorship of events such as sponsoring the premiership in England and Scotland to reach a large and well defined audience (football fans) and consumers attitude are formed through these sponsorships in making a purchase decision. Attitudes towards coca-cola could also be formed by the yearly coca-cola adverts, as supported by Pearce and Micheal (2006) aggressive marketing campaigns may be more effective during recessions, as competitors feeling the pinch might attempt to forestall losses by reducing their advertising. During the recession, TCCC, engaged in massive paid advertising to reinforce their brands in the minds of the consumers. Also towards the end of each year, coca-cola does an advert, using the Christmas theme to convey its message to its viewers. The viewers feelings about the context in which an advertisement appears can also influence brand attitudes (Solomon et al, 2006). Liking this Christmas themed adverts would naturally link us to Attitude Formation (three hierarchies of effects), Affect, Behaviour and Beliefs. Affect (like the brand), behaviour (buy the brand), belief (feel satisfied with the brand) or belief (create awareness of the brand), behaviour (buy the brand), affect (like the bra nd) or belief (create awareness of the brand), affect (like the brand), behaviour (buy the brand). Attitude formed over time influences a consumers purchase behaviour, in spite of the recession, it can be argued that the attitude of the TCCCs consumers did not change, and there was a continual process in consumers purchase pattern. Coca-cola was not so affected by the recession because of the consumers favourable attitudes towards their products Table 2.2 Three Hierarchies of Effects Attitudes based on cognitive information processing Affect Attitudes based on behavioural learning processes Behaviour Behaviour Behaviour Beliefs vvv Beliefs vvv Beliefs vvv Attitudes based on hedonic consumption Affect Affect Source- (Jiang, 2010) 2.3 Motivation Motivation is the driving force within individuals that impels them to action, this driving force is produced by a state of tension which exists as the result of an unfilled need (Jaing 2010). Every action is done for a reason. Motivation refers to the process that cause people to behave as they do, motivation occurs when a need (Utilitarian-consumers practical benefits or Hedonic-consumers emotional benefits) is aroused that the consumer wishes to satisfy. The desired end- state is the consumers goal. The degree of arousal is called a drive (Solomon et al, 2006). The purpose of purchasing a drink would be to satisfy a biogenic need, i.e. to conquer thirst. For a consumer to now choose a diet coke because hes thirsty is called psychogenic. Coca-cola motivates its consumers through its themed message (Open Happiness), and this can be explained in the hedonic needs (Consumers emotional benefits) The survey TCCC conducted for their consumers shows that the taste of coca-cola makes them happy. What motivates a consumer might be different compared to the other consumer. A regular coke consumer willing to reduce his sugar consumption will be happy to switch to coke zero which has no sugar and less calories. According to British Soft Drinks Association, (2010), Consumers are loyal to the drinks they know and trust but remain open to innovative products and brand extensions which meet their ever-evolving needs. The industrys ability to provide the public with a wide range of enjoyable and affordable drinks will ensure it remains resilient despite the tough economic climate. TCCC also motivates its consumers by regularly innovating different products to suit specific needs, e.g. no sugar drink (Coke zero). Also viewing it from the Consumer involvement angle, TCCC also motivates its consumers by connecting with millions of them every day through their brands Facebook pages, Twitter and influential blogs, creating a dialogue that allows TCCC to build their brand assets an d strengthen their consumer relationships. Solomon, (2006) defines involvement as a persons perceived relevance of the object based on his/her inherent needs, values, and interests. Through this Fans page on facebook and twitter, consumers can access their advertisements, Coca-Cola applications and downloads, and get live updates from the company. Also TCCC involves their consumers through the Coca-Cola Freestyle machine, this makes the consumers beverage innovators by giving them choices and variety to make more than 100 different branded beverages at the touch of a button, this provides fun, and a relationship that connects the company with its consumers. (Coca-cola, 2010). TCCC motivates their consumers by associating with things that will be of interest to the consumers, for example; on their website is a calculator used for checking amount of calories and quantity of drinks consumed every week so as to help consumers monitor their calorie intake in having a healthy diet and lif estyle. This can help motivate a consumer to purchase TCCCs product because they have shown the consumer the consumer that in as much as they want to make profit, they also care about them and their health. The recession did not really affect TCCCs sales because of the motivation TCCC tries to create and the relationship they have been able to build overtime with their consumers. CONCLUSION 3.1 Conclusion Understanding consumers behaviour is key to having a successful company; marketers need to deepen their research on their consumers because the consumers are becoming aware of the important role they play in their consumption pattern. Competitors are always also looking for tactics to grow and influence new consumers, and any organisation that does not meet up with consumers expectations would be losing a consumer. Companies should look for ways to retain their current customers and also focus on getting new ones attracting new customers should be a priority in a recession (Pearce and Michael 2006). Organisations should actively engage their customers more than before.

I Eat Mentos, Do You?

How many dilemmas a day do you stumble across, that given a solution would just make life easier? The ad for Mentos featuring Albert Einstein reads, â€Å"I eat Mentos, do you? Mentos. Helping People Get Ideas†, implying Mentos can help increase intelligence to a level comparable to Albert’s. In advertisements from Mentos ordinary individuals find themselves facing various dilemmas; however, if one consumes a Mento they are inspired to solve their problems, while staying fresh and cool. In every case a loser becomes a winner.Mentos’ ad featuring Albert Einstein is an effective advertisement, despite the absence of the appeal to logic, because its appeal to both credibility and emotions are so robust. Even though Logos, the appeal to logic, is unaccounted for, the ad is still very successful. Of the three major ways writers or marketers persuade their audience to purchase their product, it isn’t necessary for Mentos to explain the logic for using a breath m int. Logically we all know what breathe mints do, stating the obvious wouldn’t contribute to the persuasion of the ad.Even considering the appeal to false logic, the notion that Albert Einstein’s brilliant mind is thanks to a breath mint is implausible; therefore, the assumption could be made that Mentos had no intentions to appeal to logic or false logic. An individual seeing this ad would not literally think they’d become as smart as Albert from consuming a breath mint. Although there is a lack of logos in this advisement, it is an effective ad that includes only two of the three appeals.Ethos, the rhetorical element that appeals to credibility is the strongest element used to persuade customers to purchase this product. Albert Einstein is known for being one of the smartest men in history, and if that isn’t obvious enough to a reader, the ad also states that he is a, â€Å"World Famous Scientist†. The reputation and expertise of Albert in conjun ction with the advertisement’s tag lines, â€Å"I eat Mentos do you† and â€Å"Mentos. Helping People Get Ideas†, insinuates that if the consumer eats Mentos, they will be just as smart.The use of Albert’s celebrity endorsement is not only an effective display of using credibility but is also used to support the claim that Mentos will give you great ideas. Mentos’ use of humor was a clever and effective way to approach the appeal to Ethos. Like Ethos, Pathos is captured exceptionally well, and focuses more on the positive emotional appeal. In this ad Mentos uses the promise of gain; the obvious promise of gain is great breath, but Mentos achieves the emotional appeal by using Albert Einstein to suggest the gain will also be great ideas or a solution.Finding a solution to a problem can be extremely gratifying, giving you an overwhelming feeling of pride and satisfaction. The promise of the gain paired with the instantaneous gratification is what mak es the emotional appeal even stronger. The illustration of Albert gives him a softer feel, bringing a sense of friendliness and kindness to the ad. The soft colors, creased lines and folded edges contribute to the authenticity of the vintage illustration. The use of Pathos along with Ethos is what made this ad effective.To conclude, Albert Einstein’s Mentos advertisement makes a customer feel like they can benefit from the product without using the appeal to logic. Anyone who is going to see this ad knows that a breath mint freshens breath; the reason the Mentos ad is successful is because of the use of humor, along with Ethos and Pathos. It relates to something everyone wants, easy solutions and great ideas, and assures that this product is the answer. This all leads us to one question, â€Å"I eat Mentos, do you†?

Probability of Going to Jail in Monopoly

In the game Monopoly there are a lot of features that involve some aspect of probability. Of course, since the method of moving around the board involves rolling two dice, it is clear that there is some element of chance in the game. One of the places where this is evident is the portion of the game known as Jail. We will calculate two probabilities regarding Jail in the game of Monopoly. Description of Jail Jail in Monopoly is a space in which players can â€Å"Just Visit† on their way around the board, or where they must go if a few conditions are met. While in Jail, a player can still collect rents and develop properties, but is not able to move around the board. This is a significant disadvantage early in the game when properties are not owned, as the game progresses there are times where it is more advantageous to stay in Jail, as it reduces the risk of landing on your opponents’ developed properties. There are three ways that a player can end up in Jail. One can simply land on the â€Å"Go to Jail† space of the board.One can draw a Chance or Community Chest card marked â€Å"Go to Jail.†One can roll doubles (both numbers on the dice are the same) three times in a row. There are also three ways that a player can get out of Jail Use a â€Å"Get out of Jail Free† cardPay $50Roll doubles on any of the three turns after a player goes to Jail. We will examine the probabilities of the third item on each of the above lists. Probability of Going to Jail We will first look at the probability of going to Jail by rolling three doubles in a row. There are six different rolls that are doubles (double 1, double 2, double 3, double 4, double 5, and double 6) out of a total of 36 possible outcomes when rolling two dice. So on any turn, the probability of rolling a double is 6/36 1/6. Now each roll of the dice is independent. So the probability that any given turn will result in the rolling of doubles three times in a row is (1/6) x (1/6) x (1/6) 1/216. This is approximately 0.46%. While this may seem like a small percentage, given the length of most Monopoly games, it is likely that this will happen at some point to someone during the game. Probability of Leaving Jail We now turn to the probability of leaving Jail by rolling doubles. This probability is slightly more difficult to calculate because there are different cases to consider: The probability that we roll doubles on the first roll is 1/6.The probability that we roll doubles on the second turn but not the first is (5/6) x (1/6) 5/36.The probability that we roll doubles on the third turn but not the first or second is (5/6) x (5/6) x (1/6) 25/216. So the probability of rolling doubles to get out of Jail is 1/6 5/36 25/216 91/216, or about 42%. We could calculate this probability in a different way. The complement of the event â€Å"roll doubles at least once over the next three turns† is â€Å"We don’t roll doubles at all over the next three turns.† Thus the probability of not rolling any doubles is (5/6) x (5/6) x (5/6) 125/216. Since we have calculated the probability of the complement of the event that we want to find, we subtract this probability from 100%. We get the same probability of 1 - 125/216 91/216 that we obtained from the other method. Probabilities of the Other Methods Probabilities for the other methods are difficult to calculate. They all involve the probability of landing on a particular space (or landing on a particular space and drawing a particular card). Finding the probability of landing on a certain space in Monopoly is actually quite difficult. This sort of problem can be dealt with by the use of Monte Carlo simulation methods.