Unit 2.

1 The role of Marketing:

Name:

Student Number:

Introduction Activity: Read the paragraph below and

answer the questions.
Wearable devices such as the Apple Watch are becoming more and more popular,
which shows that the marketing efforts of these business organizations are paying off.
This also poses the question of what people do with the devices that they do not need
any more due to the new trends and gadgets on the market. While studying the role of
marketing in organizations, some questions related to the concept of ethics should be
asked:
1) Is it ethical that organizations spend huge amount of funds on marketing to
attract customers?
Answer:
In our opinion, yes they should spend on funds for marketing but not huge
amounts that could possibly lead to having to take a loan.
2) What are the ethical issues of social marketing?
Answer:
Representing false information about their company/business
3) How has the growth of ethical awareness changed consumer preferences?
Answer:

4) To what extent are marketing practices a reflection of the norms and beliefs
people share at a given time period?
Answer:
I think marketing practices tells us a lot about the norms and beliefs of the people
in a certain business because for example if they put up a Christmas tree and
decorations we’ll know more about them.

Activity 1- A tale of two markets:

Morris Springs manufactures specialised industrial springs and sells these in various
countries around the world. Total sales in Australia in 2013 were 54,000 units. The
average selling price was $3. Total sales in Canada in 2013 were 10,000 units. The

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average selling price was $15. In 2014 sales volumes of Australia increased by 5% and
the selling price by 10%. In 2014, total sales value of Canada was $180,000, despite
the average price falling to $12.
Questions:
1) Calculate the percentage increase in the total value of sales for Australia
between 2011 and 2012.

Answer:

2) Calculate the percentage increase in the total sales volume for Canada between
2011 and 2012.

Answer:

Activity 2:
CHINA’S AUTO MARKET THE LARGEST IN THE WORLD AND STILL
GROWING RAPIDLY

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At 23, Shi Lingxi bought her first car. She considered a Ford Focus, but last week
she negotiated a huge discount of 35,000 off a brand-new Nissan Bluebird. Like
millions of other new motorists in China, she does not plan to use it much – it is
too hard to find a parking space – but she looks forward to the freedom the car
brings. China’s auto industry is now growing by around 1 million vehicles a year –
a rate of 23% last year. In 2014, China surpassed the USA to become the
biggest auto market in the world, and its growth rate is the world’s fastest.

In the American market, new car sales are growing only slowly if at all in some
years. Analysts predict that the Chinese market will grow by at least 10 per cent
a year for the next ten years. It is small wonder that there are over 100 global
and Chinese vehicle manufacturers now competing in this market.

Questions:
1. Explain the difference between market size and market growth.
Answer:

2. In what stage is the automobile industry in China based on the article?

Answer:

3. Explain in a paragraph why the Car Industry in China has remained in front of
their competitors over the last ten years. Ensure your paragraph is about 50
words.
Answer:

Activity 3- SWOT ANALYSIS – Read the case study and answer the questions to follow

Product

The Coca-Cola product range includes Coca-Cola and Diet Coke along with additional flavour varieties such as
Cherry Coke, caffeine-free Diet Coke, Diet Coke with Lemon and, in the US, Vanilla Coke.As for the formula,
there's very little to say. It is one of the most closely guarded secrets in the world.

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Recent developments: Coca-Cola is continuously looking to deliver against consumer needs and uses consumer
insights to help shape progressive new solutions to packaging and product offerings. In Great Britain, changing
demographics and the growing number of two-person households, drove the 2002 launch of a new sized 1.25 litre
bottle for Coca-Cola and Diet Coke.

June 2002 saw the launch of Diet Coke with Lemon. Developed with a taste specially formulated for the British
public, it has performed extremely well since launch, already capturing a significant share of the market and
showing a very high repeat purchase rate.

Promotion: The first-ever Coca-Cola advertisement was an oil cloth sign, bearing the phrase 'Delicious and
Refreshing'. Since then the brand's slogans have developed from 'It's the real thing' in 1942 (used again in 1969) to
'Things go better with Coke' in 1963. There has also been 'Coke adds life' (1976), 'Have a Coke and a smile' (1979),
'Coke is it!' (1982), 'Always Coca-Cola' (1993), 'Coca-Cola Enjoy' (2000) and 'Life Tastes Good' (2001).

The 2002 advertising of Coca-Cola in Great Britain was based on specific British insights and was rated by
consumers as some of the most enjoyable yet from the brand. The World Cup ad was an animated 'zero to hero' story
of 'Leggsy', a three-legged boy who realises every football fan's dream of scoring the winning goal for England at
the World Cup. In the Summer,'Mower Man' took an optimistic (and humorous) look at one man's spontaneous way
of finding his perfect English summer dream.

The authentic Coca-Cola Contour bottle has always been a timeless design classic, but 2002 saw the resurgence of
the bottle as a modern icon. In 48 sheet outdoor posters, the Coca-Cola Contour bottle took on a modern, highly
sensuous look, with a series of slick images of the bottle's curves juxtaposed with the curves of the human body.
Chilled glass bottles of Coke have always had a place in the hands of trendsetters in bars and at events and parties all
over the country.

As a leading marketer Coke continues to innovate with impactful promotions on a big scale that engage and appeal
with broad consumer audiences. 2001's 'Music4You' was the biggest ever music promotion, run in conjunction with
The Sun and News of the World newspapers. This opened up a massive range of music items and money-can't-buy
experiences for consumers for which they collected tokens and made online bids.

In 2002, Coca-Cola linked with one of the most credible music magazines in Great Britain, NME, to launch an on-
pack promotion offering thousands of gig tickets and 'access all areas' experiences to music fans.

Coke is a brand which also has the ability to work in ways which capture the imagination and bring a progressive
feel to its activities. Christmas 2001 saw Coca-Cola unveil the record-breaking World's Biggest Advent Calendar on
the side of Birmingham's Town Hall: the huge scale of the 3D calendar gave a sense of festive drama to the city
centre, while themed events brought the community together as each window came to life every day with music,
fireworks and, on Christmas Eve, Santa appeared with 'real' snow.

The brand used its global link with Warner Brothers' Harry Potter films to 'Bring the magic of reading alive' -- a
three-year worldwide partnership launched with the opening of 'Harry Potter and the Philosopher's Stone'. As part of
this commitment, Coca-Cola in Great Britain pledged to distribute 300,000 books to schools and community
libraries.

Coca-Cola has a long-standing heritage of supporting sport and in particular football, where the brand invests at
every level of the game - from international tournaments right through to community and grassroots levels. In the

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global arena, Coca-Cola has sponsored every World Cup tournament since 1978 and has maintained an unbroken
presence at every Olympic Games since 1928.

Questions:
1) Identify the strengths in the above case study:
Answer:

2) Identify the weaknesses that Coca Cola might have faced in the past ten
years.
Answer:

3) Identify the opportunities that Coca Cola has identified in the above case
study.
Answer:

4) Identify the threats Coca Cola might have faced in the past ten years.
Answer:

Activity 4- Gillette Case Study

Gillette is the world's leading shaving company and is famously
product oriented. Its Fusion and Venus brands generate worldwide
sales of up to $7.9 billion annually. The company also enjoys
operating margins of 32% thanks to the high markup it applies to its

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products. This high price combined with high market share led to
Forbes naming Gillette as the world's 28th most valuable brand in
2016. 

The company invests heavily in research and development in an

attempt to ensure its blades are sharper and its razors are
more ergonomic than those of its competitors. For example, it spent
a massive $750 million developing its Mac 3 razor, the predecessor
to Fusion. This continued investment allows the company to enjoy a
number of USPs and market dominance in the global shaving market. 

1. Gillette is well known for being product oriented. Explain the

meaning of this.
Answer:

2. Explain why a company with a USP is able to charge a higher price

than its competitors.
Answer:

3. Gillette is the market leader in the global shaving market. Suggest

one benefit of being a market leader. 
Answer: