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Use of IT in Marketing - Case Study Example

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This research will begin with the statement that Coca-Cola is a world leading soft drink producer and marketer operating in more than 200 countries globally. The researcher states that it has licenses of over 400 brands of non-alcoholic beverages…
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Use of IT in Marketing
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Use of IT in Marketing Case Study of Coca-Cola. Company Profile Coca-Cola is a world leading soft drink producer and marketer operating in more than 200 countries globally. It has licenses of over 400 brands of nonalcoholic beverages. For several years, the company as has been the leader in manufacturing, marketing and distribution of no-alcoholic beverages. The products are provided in two categories including Sparkling Beverages that include carbonated waters, energy drinks as well as flavored water. The other category Still Beverages has drinks like juices and juice drinks, coffees, sport drinks and enhanced water. The company offers fountain syrups and concentrates including flavoring ingredients and sweeteners (Hackley, 2003). Coca-Cola has been facing challenges in the current market as a result of the market driven changes, Social-economic changes as well as regulatory changes. An external analysis of the company’s industry is conducted in order to comprehend the effect of the environment. An internal analysis of the company is conducted in order to comprehend its internal capabilities, external factors affecting its performance and future opportunities. This enables one to evaluate the approaches which firm can employ and needs to undertake in order to strengthen its position in the current soft-drink market(Hackley, 2003). There is also the need for checking whether it would be appropriete fior the firm to reduce its dependency on the carbonated drink and as well diversify its products portfolio to the noncarbonated sector in order to be top in the competition. The best approach to becoming a competitive beverage fir is by addressing the major issues identified to have directly impact to the company (Hackley, 2003). The Soft Drink Industry In the past (three decades down the line), the competitive environment of the carbonated soft drink (CSD) industry has been acknowledged by the implicit acquiescence of the dominance by the Coca-Cola Company. However, its dominance has been greatly challenged by other emerging firms in the industry such as Pepsi-Cola. The current competitive environment has been well publicized and quite intense. Since then, the Cola war has been declared and the battle is still on. In this industry, Coca-Cola and Pepsi Cola have been acknowledged widely as the two major marketing companies of the soft drink products. Currently, as the marketing strategies get heated up, some other fresh products and types of packages have been brought over. Such strategies as celebrity advertising have been widely employed. Others inluding change of formula for the coke drinks has been applied but no much significance. These are some of the major strategies, which have been used by the major companies in the industry. But most of them have been arising for Pepsi’s challenge to the dominance by Coke in this industry. Several other internal as well as external factors to this industry have been significant catalysts to the changes. Both firms have created and developed certain strategies, which have turned the new environment to their advantage. Strategic Analysis Strengths These include the organization's strongest areas. Sources of the organization's revenues are major issues which are suppolsed to lead one in understanding the strength of the company under investigation. Others include the company’s market share in several lines of their products, availability of skilled workers, employee’s morale, the company’s innovativeness and its ability to withstand international competition. Coca-Cola has gained its strength from its international popularity. It has been well acknowledged through out the world. This has made different people from all walks of live to purchase their product (Hackley, 2003). Coca-Cola has been a vey strong brand over the years. This is another major source of its strength. Its strong brand name is responsible for the trust its goods to gained. This brings the firm large amount of profit as well as global notoriety. Its effectiveness in aggressive advertising has also made the products highly valuable. Coca-Cola has been employing magazines and television commercials for its products marketing. It has also launched Web Site, which is easy to use, attractive and informative for all pof its clients. Several customers have visited the Web sites. Making more advancement in the web sites as well as more investment in the IT sector to market its products would further strengthen the firm in the industry of soft drinks (Hackley, 2003). Weakness The Coca-Cola's weaknesses have been the major challenge of the firm. Weakness of a firm is determined by evaluation of the products that are bringing the least profits to the firm, parts or department of the company which are not in a position to recover costs, the weak brands in the market as well as its inability to raise the needed capital. Other factors include company’s inability to withstand the price pressures exerted by its rival rival competitors, its ability to come up with fresh ideas, the trust and faith the employees have in the management and the company’s capability of competing with other rival companies in the industry. Health matters of the Coca-Cola products have been the main concern especially after they have been consumed by the customers. The products have been causing health problems in cases where hey have been used for long. This has led to some claims by their clients. Another major weakness is its inability to separate itself from other companies in the soft drink industry. Putting Coca-Cola at some level in the market would also imply that PepsiCo would be valued at the same level. Both have the same strength in brand value but have no things which offer then distinction. Opportunities This involves the situations and events that are likely to come up in the near future. It is determined by current competitive position of the company in the market, up coming technologies which the firm has a chance to make innovations at some lower costs as well as the opportunity and capacity to extend its several brands. Others are its abilities to cooperate with e-organizations, which are not rival competitors of the firm. Coca-Cola has opportunities ranging from manufacturing products which are not harmful to the health of the clients to provision of good that are of high quality. This would make the company not to be co related with its major rival competitors. Its other opportunity is market penetration as well as diversification. This refers the ability to reach fresh markets where it can offer its products. Using opportunities in the information and Technologies, Coca-Cola can reach more clients which have not been exploited by its rivals. This will add significant profit to the company. Threats These include the problems as well as challenges, which the company has no option but to avoid. Factors leading to company threats include training of the employees, its ability to withstand shocking sudden changes in the market environment, its product ability to toralate price competition as well as the capability it has in matching with the changes in technology world which is ever changing. Coca-Cola’s threats include several countries’ laws where they are operating. In some countries, such laws are so strict that they lead to delays in the selling of the products. Thy usually hampers timely completion of transactions. Marketing Strategies Use of IT to Market its Products i). The Internet Applications In order for Coca-Cola to increase its profit and occupy top spot in the soft drinks market, it ought to include fresh approaches of marketing its products to reach more new markets, which its rivals have not fully exploited. Proper and advanced marketing especially via the Internet would help it in attaining its objective and penetrate deeper into the soft drink market. A part from the traditional TV and Newspaper advertisements, Coca-Cola needs to employ Internet and web services to showcase its goods to its clients as well as elaborate to them the impacts of consuming its soft drinks to its customers. They can acheive this through collaborating with competent Internet organizations and as well post several post advertisements as reminders to web sites of other companies where people browwsing the interbnet can see them. The use of internet have a far reaching responsibility in companies’ trial to get access to its customers as well as sharing its important information regarding the customers especially as organizations would like to comprehend the customers in a more appropriate manner. This would be employed in development of new approaches meant for partnership with the customers employing a range of the several tools for interaction. This implies that it would be offering significant route for crucial information comment as well as feedback from such customers to the supplier and between the suppliers and the customers as far as the suppliers are concerned. ii). Use of Web Sites The use of web sites would be for sharing relevant information regarding the organization. Web sites have been practically a prerequisite for several companies. variuos customers usually look at the websites to find information regarding the companythey would like to be associated with. The website quality ought to indicate the quality of the business the organization is conducting and offer more than the content found in the in the text brochure. Such websites needs to be kept up-to-date and all necessary information regarding changes in the company’s marketing strategies indicated. Well design of websites shows the organization in the best light online. This is done by application of various tools which make it easy for one to maintain information updated. Use of DIY is another solution. This is a one-click website solution offering easy, fast and low-cost feature-rich sites (Carter, 1995). This would be done via designed websites which are aimed at customers or applying the Internet to establish knowledge as well as information in the organization. In addition to this, several IT tools can be employed in supporting such marketing strategies. For example competitive intelligence gathering, project management as well as GIS would be appropriete tools. Advanced Web-Applications As we advance towards the second generation Internet web-sites: Web 2.0. current websites need to become more interactive, functional but not just informational. There is need to establish a range of easy-to-use and well-distributed web-applications, which are meant for management of on-line services from informational publishing to address books that are privately shared. They are meant to distribute the information systems to services that are subscription based. The company’s websites threfore ought to be designed in such a way that they have Internet as the major consideration. In such an approach they will not be just copies of Internet systems. There is need to maintain standard of these websites and are occasionally available on WAP-based systems as well as PC-based systems. Employing Specialist Web Sites and IT tools In addition to various software developments, it would be essential to create and develop as well as configure specialist tools needed for marketing and project management and competitive intelligence gathering which is competitive. There would be need of consulting information and communication technology specialists to give advice on the most appropriate selection of data analysis tools employed in statistical analysis for conducting market research and provide the necessary training (Horton, 1995). A good example of such tools is the Geographic Information System (GIS) which is a mechanism employed in plotting maps with database information. Some current business–business information have geographic components. These can be useful to look at the business clients as well as orders by use of their geographical locations in order to assist them with sales management and as well offer several key analysis tools needed for supporting marketing via seminars and workshops. A good example is when one knows that almost half of the headquarters of the cooperate businesses are in such cities as South East or say London, such knowledge assist the organization in focusing their marketing to consider local solutions at that particular area (Dobney, 2009). The company’s marketing operations can also be improved through innovation platforms like: the quality and quantity of the supplies which would be improved through creating the necessary confidence attained as a result of market demand information, which is shared, on the on-line-community platform. In addition to this, the group marketing accumulation would be via improved communication shared on the platform. Such would allow the products of the company to be moved from the site of production to the product consumers. These services would be acheived through improved Information and Communication Technology. With increase in the use of internet and its associated technologies in marketing and customer management, the urgency for the application of key tools for managing the customers has also gone up. This calls for he needs to use the necessary measures in to deploy such approaches (Church, 2006). Such can be achieved through improved customer value in order to meet their needs and wants hence concentrate on the benefits of the customer. There is also need to create vision for longer-term development including introduction of additional sites as well as deepening of the current ones. This would be essential in supporting service, marketing and the needs of the customers. It would also help in meeting the needs of the customer in a better approach as well as reducing the costs of several other communication methods. For instance, in timetable look-up and confirmation of booking (Giardetti, 1999). The approach used in marketing can be harmonized within the advertising as well as communication programs. The message as well as the brand can be delivered occasionally across the advertisement or marketing media. The web can be used functionally in order to enhance involvement with the brand in approaches that are matching the company such as use of human face on the company brand. The web would be employed in enabling the customers to have control as well as provide and upgrade information regarding the company. The user constraints can be anticipated through such approaches. In such cases the customers would be able to get access to the site more quickly and conveniently (Czerniawska, 1997). Such an example is where advanced graphics would be wasting the time of the serfers since it slows down their downloads from the Internet. The use of on-line and off-line advertising and public relations coupled with a lot of hypertext links and cross promotions would be approproiete to promote the company’s products in the soft-drink industry. There is need for the best employement of security and customers privacy safeguarding. The Internet site needs to have resources and maintained adequately. All traffic volumes as well as patterns including user profile and their subsequent satisfaction needs to be examined logically via auditing methods which are independent (Maddock, 2000). Certain web site viewers also need to be reached by these companies through offering them with particular usual proprietary engine which utilizes frequent, informal and quick polls like coke (Bell, 2009). This is meant to see to it that the adverts are provided to specific interested consumers. Various rates of different targeting levels are offered such as ZIP codes, behavioral data and in-depth demographic information. This kind of approach would concentrate on offewring commercials in order to see to it that the consumers watching the adverts becomes part of the demographic target chosen by the company. Click Firm Idea Frame (2004) illustrates that the use of click firms’ idea is an appropriete strategy. Under this approach people are usually paid for clicking on particular links meant for advertisement at a specific rate per single click. Although some individuals would have less or no passuion in such messages appearing there, this marketing approach would be providing incentives enough to entice a big number of consumers generally to be enganged in these activities. Sirgy (1995) elaborates that the advertisers have assumption that there is a lot of young guys out there who have no serious business or have got nothing to do and are desperately searching for something to make themselves occupied or earn them some income. iii). Customer and Market Knowledge Databases As a concern to support employment of information and analysis which is a tool for marketing, there would be the need to establish databases which will be used in holding information for easy analysis as well as provide allowance for information sharing and sorting such as customer knowledge activities (Relationship Marketing, 2008). The use of market knowledge databases would be another strategy. This refers to the collection as well as dissemination of customer and competitor knowledge. Normally these are web-based systems around interface and industry applications standards. This would allow the company to collect then carry out dissemination of information via a wide variety of devices, which allow the use and access outside the organizational environment. They have to be accompanied by some demonstrations for clarity (Hackley, 2003). The use of self-maintaining databases has not been fully utilized. In such databases, the customers will have access to the organizations current information and be able to manage as well as update the information regarding them. This reduces the benefit of reduction of the chances of erroneously entering data while giving the customers chance to give the company information regarding their feeling for the organization (Hackley, 2003). iv). On-line Communities E-Commerce and websites development has been in place as a resourceful tool for company product’s distribution. Some of the websites, which are most effective usually, offer the business clients with an opportunity to communicate as well as share information among themselves and with the business organization and their employees. According to Dobney (2009) the on-line communities act as an extension of loyalty programs as well as customer feedback programs. They happen to be autonomous in their own rights. There has been fear by some companies that if they offer their customers a chance or forum to communicate with each other, it would go ahead and expose some problems as well as chaleenges that are experienced within the organization. But adapting open as well as honest communication is the most appropriete approach in generation of loyalty especially in cases were they are used to fix certain public relations problems and other challenges. The company would need to develop in-house skills in its major web-technologies, which would assist them in generating their own-on-line community for the customers to shared information regarding the company (Glennan, 1996). iv) Integration of IT in Loyalty Programs Launching of a customer loyalty program that target the demands of the organization’s and their subsequent satisfaction in all markets would boost in marketing the image of the company’s product. The launched website should be design with dedicated language of the local residents where the products are being marketed. It has to include some tailor-made properties, which must be aimed at suiting the preferences of its users from their respective countries. This offers some channel for the people using the Internet within the country to comprehend and explore much more about the products as well as the brand. It would help in maintaining the up to date various companies’ goods and operations, member activities and promotions being offered company (Horton, 1995). Loyalty programs for all marketing zones would be essential for advertisement of the Coca-Cola products. This would be meant to enhance the customer’s access to a wide range of products, which are specially designed for the local users. People who will be registering as club members would begin to enjoy such benefits as guaranteed discounts as well as rewards points. They would also be provided with exclusive offer as well as special promotions of various products of the company. The program members would be alerted of any fresh developments via the regular member-only newsletter designed specifically for their information (Maruish, 2004). The program should not be designed to attracts new customers only but should also be concerned with retaining the current and profitable ones. The business should also comprehend and identify the customer base segment that it targets to attract. This calls up on the organization to identify the approach it should employ in order to attract such customers Conducting prospective and current customers’ research is essential. This would enable the company’s management to come up with conclusion that customers are actually attracted to greater value on user-friendly modes of approach and the reward systems which are rich in contents and easy and convenient experience of the firm (Patzer, 1995). Points awarded in the customer loyalty programs would be changed into gift vouchers and used in the firm’s outlets any time of the year the customer makes purchases of the products. Such points can be al;tered to serve the customers in several other organizations but only those which are business friendly to the organization. For instance, they can be converted into miles with the airlines, which are associated with the company in business matters. Some of these airlines can be British airways, Air France KLM, Singapore Airlines, US Airways and the Qantas (Robert, 1961). The company’s loyalty program would be leveraging all the strength of the portfolio firm’s brand. This would cover all segments of the firm’s economy ranging from economy of the company brand to luxury and comfort of the customers. This would be aiming at meeting the demands of the raising fragmented and the ever-changing clientele searching for personalized and recognized solutions to the respective requirements (Laurillard, 1993). Through the loyalty program and the subsequent website, the customers would be able to manage their own information account from wherever and wherever they feel like doing so since they would be offered a personalized service for their details (BDL Media, 2009). Such a program is quite easy and simple for the customers to make use of. Any customer intenting to make purchases of the brand products would be in a better position to register for the program even after using some small amount on the soft drinks via the company’s dedicated loyalty programs and Websites. Such points would be up graded as the customer buys more of these goods. Conclusion The soft-drinks industry and markets have been dynamic and ever changing with tie. They have exhibited life cycles and are usually ever attracting competitors in several numbers as well as bvarious strengths and sizes regarding the stage in the life cycle. Finding a long-term survival motivation gives the chance for impetus to look for approaches of ironing out some of the big fluctuations related to profitability and sustainable development of the firm. The company by reviewing its market posture as well as looking for fresh approaches of attaining its desired survival goals would assit achieve this. Adapting such strategies as Information Technology to market its products would assist significantly in reaching some customers who have not been targeted before and retain the old ones (Dobney. 2009). References Bloom, C. 1998. Facilitating the Development and Use of Interactive Learning Environments. Mahwah NJ: Lawrence Erlbaum Associations. Carter, N. 1995. How Organizations Measure Success: The Use of Performance Indicators in Government. London: Routledge. Church, H. 2006. West Africa: A Study of the Environment and of Man’s use of IT. New York: John Wiley & Sons. Czerniawska, F. 1997. Corporate-Speak: The Use of Language in Business. London: Macmillan. Dinesh, P. 2007. Strategic Analysis of the Coca-Cola Company. (Online). Available at: http://ir.lib.sfu.ca/handle/1892/9357 [Accessed March 10, 2010] Dobney. 2009. Technology for Marketing. (Online). Available at: http://www.dobney.com/IT_in_marketing.htm [Accessed March 10, 2010] Frame D. 2004. Managing Projects in Organizations: How to make the Best Use of time, Techniques and People. Francisco: Jossey-Bass. Franses, P. 2001. Quantitative Models in Marketing Research. Cambridge: Cambridge University Press Giardetti, R. 1999. Images that Work: Creating Successful Messages in Marketing and High Stakes Communication. London: Quorum books. Glennan, T. 1996. Fostering the Use of Educational technology: Elements of a National Strategy. London: Rand. Hackley, C. 2003. Doing Research Projects in Marketing, Management aqnd consumer Research. London: Routledge. Laurillard, D. 1993. Rethinking University Teaching: A Framework for the effective Use of Educational Technology. London: Routledge. Horton, J. 1995. Integrating Corporate Communications: The Cost-effective Use of Message and Medium. London: Quorum Books. Maddock, R. 2000. Motigraphics: The Analysis and Measurement of Human Motivations in Marketing. London: Quorum Books. Maruish, M. 2004. The Use of Psychological Testing for Treatment Planning and Outcome Assessment. Mahwah NJ: Lawrence Erlbaum Associations. Patzer, G. 1995. Using Secondary Data in Marketing Research: United States and Worldwide. London: Quorum books. Patzer, G. 1996. Experiment-Research Methodology in marketing: Types and Applications. London: Quorum Relationship Marketing: The Technology –Using Information technology to Support Customer Management Strategies. 1999. http://www.ntwkfirm.com/policy%20publications/Close12.htm (Online). Available at: [Accessed March 10, 2010] Robert, W. 1961. Aging and Leisure: A Research Perspective into the Meaningful use of Time. Oxford: Oxford University Press. Samli, C. 1992. Social Responsibility in Marketing: a Proactive and Profitable Marketing management Strategy. London: Routledge Sirgy, J. 1995. New Dimensions in Marketing Quality-of-life Research. London: Quorum books Plagiarism Report Plagiarism is a vital academic violation. Ignorance of it would be disservice to the student, the lecturer, the academic society as well as the University. In case of any evidence of academic dishonesty, one if expected to take the following actions and give the evidence immediately. 1. Investigation There should be immediate meeting between the student and the lecture. This should be followed by the description by the lecture regarding the suspicion and the current proof of the findings. The student have to provide their version of the story and their rights indicated out. In case the suspicion is seen to be unfounded, the issue can be solved immediately. In case there is confirmation of the suspicion by the lecture the issue can either be solved internally or even send to the committee for disciplinary matters (University of Pretoria, 2004). 2. Solving the Plagiarism charge within the Department The plagiarism case is solved within the department if the following takes place; the said plagiarism was done on an assignment and it is the first time by the student. The detected plagiarism is minor and the lecturer has the opinion that it would be sufficient to just reduce a mark for compensation. Under this case the student is supposed to admit the transgression and also accept the kind of punishment and assume the issue to have been solved for once and for all. 3. Referral to the Disciplinary committee In as the following takes place, then maters is taken to the committee for disciplinary actions: The said plagiarism was done on a dissertation or a thesis and it is not the first time the student was found to have plagiarized, the extent of the plagiarism is big that a reduced mark would not be sufficient to acts as a[penalty. It also happens when the student opposes the accusation or the department head feels that the issue should be referred to the committee for further action(University of Pretoria, 2004). In this case the referral need s to include a written report on the case and statement in writing by the lecturer, the accused student and any body else who is in a positive to testify. The statement by the student have to include their student number, contact details as well as their signatures. The documentation ought to be taken to the registrar through the head of department office. The Disciplinary hearing In case the registrar has the feelings that the there are reasonable grounds which are existing for a charge of the said misconduct by the student , they ought to formulate a charge which is in form of writing and the accused student is summoned immediately. The student accused of plagiarism has no right to any kind of representations during the hearing period but the committee can allow them to avail themselves. Several copies of the documents relevant to this are sent to the dean as well as the head of the department. 5. Penalties In case the student is acquitted of the charges, the marks for the research paper or the assignment are availed but if found guilty, the committee have the obligation of deciding on the most appropriate penalty. In this case the student can decided to appeal to the Senate committee against the conviction (University of Pretoria, 2004). References University of Pretoria, 2004. Report Plagiarism. (Online). Available at: http://upetd.up.ac.za/authors/create/plagiarism/staff.htm [Accessed March 23, 2010] Read More
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