Over the last few decades, expenses in the spheres of production and general management have been falling. At the same time, expenditures on marketing and advertising have increased. Furthermore, consumers have become more demanding looking for quality products at lower prices, thus, underlining the concept of efficiency in advertising and marketing in a company (Turner 2009). In addition, under the conditions of increasingly fierce competition, both locally and internationally, the pressure put on efficiency in marketing and advertising in order to demonstrate its value in improvement of the company’s performance is essentially greater than ever (Mooij 2010).
In a company context, efficiency is the ability of managers to do work while using the lowest amounts of the company’s inputs and creating the greatest amount of outputs. In advertising and marketing, efficiency involves using the lowest ratio of the cost of marketing and advertising and reaching a large number of target audiences. Efficiency is important because resources are limited, and, thus, using those that are available in the best way possible is essential. This is the major reason why efficiency is a significant aspect used to evaluate the productivity and performance of marketing and advertisement managers. This essay will first look at the concept of efficiency in general. Secondly, it will look at the concept of efficiency in advertising and marketing in the Coca-Cola Company.
Influential People in Marketing and Advertising Fields
Sheryl Sandberg and Neal Mohan are the most influential people in the field of marketing and advertising. Sheryl Sandberg, the chief operating officer in Facebook, has shown an exemplary performance in the company over the years (Zarrella 2011). As a Chief Operating Officer of the world’s largest social network, Sheryl established advertising based business strategy that eventually turned the business into a publicly traded company. On the other hand, Neal Mohan, the Google’s vice president of product management, has revolutionized the marketing and advertising fields in the company. Neal has played a crucial role in the application of all the advertisement technology in Google since the acquisition of the DoubleClick. Furthermore, he was the architect of the ambitious plan that led to the creation of a massive platform for the use of digital advertising in the company (Stay 2012). Neal’s ambitious plan continues to expand the Google’s market boundaries in the global market.
Coca-Cola’s Marketing and Advertising Organization
The Coca-Cola Company has a very efficient marketing and adverting strategy that has enabled it to edge out its major competitors from the market. For instance, in 2012, the company’s advertising and marketing expenses accounted for more than $3 billion. However, as a part of new marketing resolution, it intends to ensure that money spent on marketing communication campaigns is not wasted on ineffective promotional programs. This will be achieved through progressive evaluation of the effectiveness of the program in order to improve efficiency (Sleight 2012). The company has been involved in sport sponsorship, as a part of marketing and advertising strategy. In the USA, the organization has a reputation of sports marketing relationships with the major sport leagues. Furthermore, the company provides sponsorship to organize sports events as well as other extracurricular activities at schools and colleges. This has enabled the company to gain a large market share worldwide. In addition, the company provides caps, TV sets, bicycles and cash prizes in order to enhance efficiency and sustainability of marketing and advertising strategies. This strategy improves efficiency due to its popularity among the consumers (Sleight 2012).
Coca-Cola’s Marketing Structures
The Coca-Cola Company has one of the best organized marketing structures that raises the efficiency in marketing and advertising operations globally. Furthermore, the company’s marketing segment receives a lot of funding essential for the marketing process. In 2009, the organization spent approximately $2.7 billion on the production of prints, television and radio advertisements. In order to reach its global market base, Coca-Cola uses large investments in marketing and advertisement that enables the company to maintain its global position (Lindsay & Smith 2010). The Company hires reputable firms across the continent to market Coca-Cola on its behalf. For instance, The Red Cell Company is usually responsible for real advertising campaigns in the USA. Coca-Cola is also partners with BrightHouse, which is fundamental and central to all global operations of the company. The company’s marketing responsibilities are usually bestowed on the hired firms in different parts of the continent. This has enabled Coca-Cola to remain one of most efficient companies in the industry (Lindsay & Smith 2010).
Furthermore, the organization has well-established public relations firms that play a crucial role in its marketing and advertising. The firms operate across the globe and successfully convince the consuming public in the safety of the Company’s product. In 2011, with the help of the Beverage Institute of Health and Wellness created in 2004, the company strived to repel accusations that its soft drinks were to blame for the obesity epidemic. Speaking about marketing and advertising, the public relation firms continue to promote the use of caffeinated drinks on the market (Sleight 2012). In the UK, the company uses the services of the Lexis PR, while GCI group works with a large number of the US consumers. Public relation firms play a crucial role in maintaining the company’s reputation and form a core of marketing and advertising operations. Through the above mentioned marketing structures, the company has managed to maintain consumer’s confidence in its products (Sleight 2012).
Marketing and Advertising Processes
The Coca-Cola Company has a well-structured process of marketing and advertising that helps the company to promote its product worldwide. The Company conducts the market analysis to determine the possible market needs and demand. With the help of the SWOT analysis, it identifies strengths and opportunities to build on and weaknesses and threats that need to be addressed through marketing and advertising. Through the market research, the company develops the marketing plan that incorporates the target market, consumers needs as well as the message to be delivered in the process (Sleight 2012). The target consumers and the brand product to be promoted are identified with regard to the results of the SWOT analysis. This enables Coca-Cola to identify the appropriate audience and product brand to market without confusion. Furthermore, the process makes it possible to understand the competitors such as Pepsi (Mooij 2010).
The Company further identifies the appropriate media to reach its target population. Since Coca-Cola is a multinational company operating in different countries with diverse cultures, the media selection process takes into consideration the number of people to be reached. Most of marketing and advertising is often made through both printed and mass media in order to reach all the consumers worldwide. Furthermore, the Coke’s website highlights all the strategic initiatives and programs around the globe. Most of the programs described on the website are usually intended to market the company as well as to boost its image worldwide (Sleight 2012). Nonetheless, though the current marketing and advertising processes are considered to be efficient in comparison to the rivals, they need to be reviewed in order to correspond to the dynamics of the marketing and advertising. The company’s presence in the social media networks has been significantly low. Therefore, the company needs to implement the use of social sites such as Facebook, Twitter, LinkedIn and Instagram into its current marketing and advertising plans. Coca-Cola will also need to establish a rapport with the individuals concerning the problem of environmental degradation. For instance, the company has been accused of reducing the level of water tables in India. Such information has led to the diminishment of the market influence in the region (Turner 2009).
Disadvantages of Coca Cola Strategies
In an attempt to enhance efficiency in marketing and advertising, the company has embraced strategies that will enable the company to edge out its competitors. However, the strategies embraced especially the use of social websites to market the company will poses a major obstacle for the company. This is a result to rapid media evolvement which remains to be huge issue to marketers using the social sites. This is because the strategies that work efficiently today in social sites will essentially be ineffective tomorrow (Sleight 2012). Therefore, in order to avoid the above disadvantage, the company will be required to adopt a truly liquid approach to marketing and advertising communications
Marketing and Advertising Artefacts in the Company
In the Coca-Cola Company, there are various artefacts that are used for marketing and advertising purposes. For example, a large number of the consumers often collect the merchandise bearing the Coca-Cola promotional images and messages. These artefacts include the company’s own marketing items as well as the company’s favorite objects. Some of them are the bottles that were used prior to 1916, and which have become a trademark. The Coca-Cola glasses in the form of a curved bottle with the company’s logo is another artefact. Furthermore, the company has a large museum that provides exposition films about its history and different marketing themes used over the years (Turner 2009). However, the company’s brand design needs to be improved in order to improve its competitiveness in the market.
To sum up, it is evident that efficiency in marketing and advertising is defined with regard to the company’s ability to market its product through the appropriate media channels that can reach a large number of consumers while using the minimum amount of resources. This has been the case of the Coca-Cola Company that continues to expand further in the global market. Therefore, the company is considered to have efficient marketing and advertising processes.
- De Mooij, M (2010), Global marketing and advertising: Understanding cultural paradoxes, Sage Publications, Thousand Oaks, California.
- Lindsay, R & Smith, D 2010, ‘Executive opinion: Interview with Mr. Robert A. Lindsay, Vice President, Public Affairs and Communication for Coca-Cola Africa Group, United Kingdom’, Journal of African Business, 3(2), pp.137-141.
- Sleight, C 2012, ‘Keeping Coca-Cola’s marketing fizzy’, The Marketer, 64, pp.24-27.
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- Turner, M, (2009), How to think like the world’s greatest marketing minds, McGraw-Hill, NewYork.
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