SEC Adventures: Hybrid Travel Agencys Marketing

Executive Summary

SEC Adventures is a start-up company that will compete in the adventure tourism industry. In the present business climate, the industrys leader, Mountain Travel Sobek, or MTS is the benchmark when it comes to business operations. However, SEC Adventures sees opportunities in niche marketing, specifically with focused target markets involving baby boomers and millennials.

The initial goal is to offer travel packages that are significantly cheaper than those offered by MTS. This is possible by scaling down the operation and offering less dangerous and less rigorous travel packages. Also, the company does not plan on hiring professional guides, instead of doing that, SEC Adventures will hire qualified personnel with the added advantage of providing personalized services for the clients, especially for a generation that requires access to the Internet and the need to engage in social media platforms.

Business Description

This business plan was created in response to a perceived need. It is the entrepreneurs responsibility to scan the socio-economic landscape to figure out the needs of the people. In this case, the proponent of the business plan is responding to the clamor for a safe and reliable adventure tourism company. It is a known fact to business leaders all over the world that the driving force of the global economy is the baby boomers and the members of the millennial generation.

Baby boomers were born in the aftermath of the Second World War, on the other hand, the members of the millennial generation are comprised of young men and women who came to this world in the decade of the 1980s and 1990s. Both groups are responsible for heightening the demand for adventure tourism. Those in the older generation group are asking for services and products associated with the adventure tourism industry because they want to enjoy their retirement years.

The members of the millennial generation on the other hand are sophisticated consumers and they want more than the usual vacation packages or travels to tourist destinations. In light of these requirements and demographics, the proponent of the business plan attempts to create from the ground up an adventure tourism company called SEC. Adventures. SEC is an acronym for key terms: safe, easy, and challenge. As the name suggests, the company offers more than the customary travel packages, because added into the mix are activities like hiking, trekking, spelunking, kayaking, bird watching, safari, cultural immersions, and tasting exotic foods.

SEC Adventures offers three major value propositions: safety, innovation, and ease of travel and adventure. Potential investors and customers are going to appreciate the aforementioned value propositions if they compare SEC Adventures business model to the industry standard which is none other than the travel agency and tourist destination framework. In the old paradigm, the client engages with a travel agent or a representative of a travel agency.

After making up his or her mind regarding a specific travel destination, the client works with a travel agency to handle a major part of the travel requirements. In the traditional framework, the travel agency takes care of the transportation or air travel aspect of the trip. Travel agencies are also responsible for hotel reservations. This is a good system because travel agencies have established business relationships or partnerships with counterparts from the airline and hotel industry. As a result, the client benefits from potential savings due to this type of transaction and partnership.

However, after considering the old paradigm, one notices that the travel agencies do not have anything to offer other than flying the tourists to their expected destinations and provide appropriate accommodations for them. Once the clients reach the Bahamas, Saigon, London, or Miami they are left on their own. The best that they can offer is a tour of the city or island hopping, but the travel agency has relatively little control over these events or activities.

As a result, travel agencies are unable to provide the type of adventure that baby boomers and millennials are cravings for. From a practical standpoint, it is not prudent for travel agencies to overextend their reach. They are already making a great deal of revenue with the traditional business model that they are using. As the saying goes, there is no incentive to fix something that is not broken.

Although SEC Adventures understands the advantage of the old business model employed by conventional travel agencies, the entrepreneurial spirit of the CEO and founder, Xueyao Wang, enables her to see the perceived need. In this regard, she is also able to see the market niche that has not yet been explored in a more significant manner by other business leaders. In this case, there is a demand for more exciting activities as compared to the travel agencys staider offerings.

Members of the millennial generation are not going to celebrate their success and enjoy their free time by going through traditional vacation routes. They are different from the older generation of travelers that are easily contented with the fact that they can spend from two to three weeks of vacation time away from the office or their hometown. The mere fact that they were able to visit Hawaii and did not have to worry about their jobs at home is already a gratifying experience. However, it is a different deal from the perspective of the millennials they want something more than just sunbathing or taking pictures of Mt. Fuji from the comfort of a tourist bus.

Although there is an age gap between the baby boomers and the millennials, there are those that are eager to take the less-traveled path. Baby boomers have the money to pay for extra excitement in the form of safaris, trekking, and bird watching. This group of people is not going to enjoy the traditional route either. Nevertheless, due to certain restraints, the SEC Adventures created a business model that offers only safe and controllable adventure activities. SEC Adventures does not cater to clients seeking for activities related to extreme sports.

In a nutshell, SEC Adventures is a hybrid travel agency company that also facilitates adventure tourism. In other words, the company functions like a conventional travel agency, such as booking flights and making hotel reservations. However, in addition to moving clients from Point A to Point B, the company determines the adventure activities appropriate or available in a given area. If the chosen location is an island or beach resort the range of activities includes diving, kayaking, fishing, and other water-related sports.

If the location is in a high altitude area, the company offers trekking, bird watching, and survival boot camps. If the location is in a city, the company offers a unique type of adventure called hunting and tasting exotic foods. The package also includes tours to locations that are not oftentimes reflected in the average travel guide.

Without a doubt, other travel agencies may offer this kind of service. However, the major difference is that the adventure aspect is just an afterthought. In other words, they do not provide excellent and dedicated services to satisfy the needs of the customers and to bring them home safely.

The key difference is safety, and the competitive advantage of the company is the deployment of a dedicated safety and events coordinator who understands the layout of the area and the inner workings of the proposed activity like the back of his hand so to speak. For example, the said safety and events coordinator understands the type of boat that the clients are using and the brand of the life vest that was made ready for safety purposes.

The safety and events coordinator memorizes details like the time required for the hikers to reach a particular spot in the trail or the number that he or she needs to call if there is an emergency. The safety and events coordinator also carries with him a portable electronic device with a rugged design, such as water resistance and shock-proof capability. The said electronic device contains the pertinent medical information of each client, and this includes allergies, blood type, and family history of hypertension, heart disease, vertigo, seizures, and related types of information.

About the legal structure of the business, SEC Adventures is a privately held company. Thus, the public does not have access to the organizations financial statements. Therefore, the financing requirements are going to come from selected investors and other business partners.

Market and Competitors

The target clients are baby boomers longing for something more adventurous than sunbathing or going to museums. However, this type of clientele also requires attention to safety and possible medical requirements when enjoying activities like island hopping, diving, kayaking, or spelunking.

The members of the millennial generation are going to appreciate the availability of the safety and events coordinator. However, they also require Internet connectivity, Wi-Fi, and related technology, so that they can engage in social media platforms even if they are enjoying adventures like bird watching, fishing, and hunting for exotic foods. It is difficult to please the millennials if the company does not provide a way to document the events, and more importantly if there is no ability to share the experience via Facebook and Instagram.

In other words, it is not enough to target adventurous millennials and baby boomers, it is also important to provide key requirements. In this regard, SEC Adventures has another competitive advantage over the competition, and it is the use of apps that enable the clients to purchase specific items needed for a specific type of adventure in a low-price scheme, and an online marketing framework so that the items reach them on time before they embark on their respective trips.

There are two types of competitors in this kind of business. First, SEC Adventures is going to contend with travel agencies that are also offering adventure type of activities like kayaking, diving, and trekking. However, as mentioned earlier, travel agencies are not going to be able to compete with SEC Adventures business model, because they are not geared to handle the requirements of a niche market. Also, the bulk of the revenue for traditional travel agencies are coming from travelers or tourists that are going to conferences and are contented with conventional leisure activities like spending a great deal of time with ordinary beach activities or city tours.

The real challenge comes from companies primarily designed to offer adventure tourism. For example, if one will scour the Internet, the company called Mountain Travel Sobek or MTS offers the same type of activities that SEC Adventures target market is demanding to experience. Also, MTS is a pioneer in this kind of business. For example, MTS provides expert guides and travel professionals to provide an exhilarating experience for clients.

Although MTS is the leading company in this type of industry, SEC Adventures is going to exploit certain weaknesses of MTSs business model. For example, MTS does not endorse a travel package if less than four people are signing up for it. SEC Adventures are going to provide the same type of service even if only three people are going to sign up for trekking or kayaking in a specific travel destination.

Aside from inclusivity allowing a greater number of individuals to enjoy this unique experience called adventure tourism, the companys competitive advantage is the deployment of a safety and events coordinator. An overview of MTS website reveals that they employ expert guides.

It is hard to compete with that kind of overhead cost. However, SEC Adventures will cater to less demanding activities. It will take a long time before SEC Adventures starts to offer trips that enable clients to cross the Gobi Desert. Thus, it has been made clear that MTS also focuses its attention on a niche market, specifically clients that are more adventurous than the rest of the population. SEC Adventures are not going to compete in this category.

Thus, there is no need to hire an expert that knows how to navigate the Saharan desert using camel or yaks. As a result, the company can hire travel guides with minimal expertise. The competitive advantage comes in the way these guides perform dual roles because as a safety and events coordinator they provide a personalized service ensuring the safety of the customers. Also, the safety and events coordinator is mindful of the requirements of the millennial generation. They have the skill to set up a mobile platform that enables the clients to access the World Wide Web even if they are vacationing in one of the islands in the Caribbean.

Also, the company utilizes a proprietary app or computer apps that synch with mobile tablets and smartphones that enable the customer to pre-order the requirements of a particular trip. For example, a trip in the Bahamas or Hawaii may require the need for a wetsuit or snorkeling equipment. The clients can order these things online using a scheme that allows them to choose the products from different suppliers. Due to the ability to compare prices, clients are assured of getting the best value from their money.

The company will be located in Miami, Florida. It is prudent to establish a corporate presence in this area because it is relatively closer to the Caribbean and Mexico. If the company establishes its presence in New York, the high rental cost and other constraints will make it difficult to get a break-even in the first two years of operation.

Marketing and Sales

The target market is executives that are going on business trips. They are baby boomers and millennials working in the corporate world. In a financial year, they may attend two or more conferences or they may leave town to go on business-related trips. During the conference or the business trip, the clients may find time to explore the city or the island. They may also find time to explore nearby tourist destinations if they happen to be in Miami.

When there is this kind of opportunity, the marketing arm of the company will exhaust all available opportunities to let them know that they do not need to get stuck in the hotel waiting for their flights. They are not supposed to spend their time in a coffee shop if they have several hours to spare. SEC Adventures will allow them to engage in some exciting activities.

The initial foray into marketing targets executives that are going on business trips or conferences. However, from this group or the first wave of clients, the company can build customer relations. The company also hopes to get word-of-mouth advertising after providing a service that exceeded the expectations of the clients.

The companys pricing structure depends on the outcome of a feasibility study. A major component of the feasibility study is the outcome of a research or exploratory scheme involving MTS. As mentioned earlier, MTS is the companys main competitor. In the course of the feasibility study that will be discussed in more detail later, a team will be deployed to test or investigate the MTS product offerings. This activity enables the company to accomplish two goals. First, to have a thorough understanding of the rival companys business operations. Second, to understand the rival companys pricing scheme. After factoring out these insights and ideas, SEC Adventures will figure out a way to offer a travel package that is 20 percent lower than the one offered by MTS.

In an ideal situation, the company must strive to offer a travel package that is 50 percent lower than what MTS is charging. For example, MTS offers a kayaking adventure tourism type of business in the Bahamas. This is a type of activity that SEC Adventures believes must become part of its portfolio of travel packages. However, the company offers half the price. It is possible to make this kind of offer because the company does not employ expert guides that are qualified to work for National Geographic.

Aside from scaling down the danger level and the excitement level of the travel packages, the company can lower overhead costs by scaling down the growth of the company. In other words, there is no plan for aggressive expansion to overtake MTS. There is no long-term goal of vanquishing MTS because SEC Adventures are going to provide services to people that cannot afford the travel packages offered by MTS. Thus, the company is not going to offer adventure tourism all over the planet. The attempt must start from controlled business environments in Miami, the Caribbean, Mexico, and New York.

After spending money on websites and apps, the savings will be utilized to pay travel bloggers to blog or discuss an alternative travel adventure company that is cheaper and more personal compared to MTS. This is the primary way of selling or marketing the company.

Financial Projections

To simplify the process of financial management the start-up company uses financial units worth $10,000 each. For this particular endeavor, there are at least five financial units or expenditures. The first one is on the website. The second one is the creation of the appropriate apps. The third one is the use of social media platforms. The fourth one is the expenditure on bloggers that are going to spread the companys message to the outside world. Finally, the last major source of expenditure is the video creation and video editing component.

The five financial units require initial funding of $50,000. To lower the cost of the start-up the company will use freelance sites like ODesk and Freelancer to hire experts that are going to develop the websites, the apps, the content, videos, and search for bloggers that are going to write positive remarks about the company. Freelance sites like the ODesk are populated by freelancing experts.

The company describes the requirements of the website and the apps and website developers and app developers are going to make their pitch and bid to work on the said project. The company will make the declaration that the website design is worth $7000 and the same project cost goes for the app development. The freelancers will make a bid. The lowest bidder with the highest level of technical capability will be chosen for the said task. The process uses an escrow-type of management scheme so that the consultants and experts get paid for every milestone that they can accomplish. The reason for the $3000 in reserve is in anticipation of less than stellar work.

If this happens, the remaining funds will be used to hire experts to rectify the problem. However, if everything went well, there are more than enough funds to hire bloggers that can create a different kind of marketing salvo for the company.

The same approach will be used for the creation of website content, videos, and messages that are needed for the Facebook posts, YouTube video, and the pictures for Instagram. Freelancers are also going to handle the video creation and video editing requirements of the start-up project.

After handling the requirements of the marketing and social media aspect of the start-up, the company will require an additional $20,000 for setting up the office in Miami. The first ten thousand dollars will be used to spruce up the office and to purchase computers and pay for service providers like the Internet, telephone, etc. The rest of the funds will be utilized to hire five employees. Thus, there is a need to pay local newspapers and hiring firms to secure the services of five qualified and talented workers.

Breakeven analysis and profit and loss measures are going to be handled by an accountant that the company will hire once the investors and core business leaders have made the final decision in setting up an office in Miami, Florida. Nevertheless, it is important to figure out the total cost of salaries and wages. It is also important to figure out the cost of training the workers and the cost of partnering with local travel agencies.

It is also imperative to figure out the expenditures required for partnering with local businesses, such as the owners of the kayaks, and the groups maintaining the trekking trails or the bird watching spots. These expenditures, inducing travel, and accommodations must be deducted from the fees that clients paid to enjoy the said services. These values are computed in consideration with the standby fund and cash reserves for the business operations. Thus, the break-even analysis must allow the company to know the expenditure level and the income level needed to keep the company afloat.

The profit and loss statements are also dependent on income projections. In this case, it is best to have at least 100 travel packages for a single financial year. The company must develop the appropriate marketing scheme, pricing structure, and austerity measures to come up with a profitable solution.

Operations

To lower the cost of operations even further, the first two years of operations requires a partnership with a travel agency located in Miami, Florida. The initial foray into this business limits the company to travel destinations and tourist attractions in Miami and the Caribbean. This will be expanded to include New York and Mexico after twelve months of operation. Thus, in the corporate office in Miami, there are five staff members.

Three of them serves dual roles as an office worker and at the same time the designated safety and events coordinator. The fourth and fifth employee handles the social media aspect of marketing. The fifth employee mans the phones and handles the other aspects of the business. The accounting and other financial aspects of the business are going to be outsourced to a third-party provider.

In the first two years of operations, the safety and events coordinator is going to learn everything they could about tourist attractions and adventure activities within the aforementioned scope of business operations.

The workers and employees are going to be hired locally so that there is an easier process for absorbing critical information regarding travel requirements and adventure tourism requirements.

Appendix

The professional video creators and editors are going to create a YouTube channel for the company. In the initial posting of videos, the consultants will use promotional videos that they created. However, after six to twelve months of operations, the company will work with satisfied clients to use their videos and images. The clients will accept the offer in exchange for discounts and the chance to become endorsers for a fledgling company.

The consultants will also work with bloggers to develop the appropriate messages in favor of the company. They will create links on Facebook that leads to the companys website or the blogs of the bloggers that are going to talk about positive things about the company. This is how they are going to promote the company using social media platforms.

The first 30 days will be used to post the project on freelancing sites like ODesk and Freelancer. After hiring consultants and professionals, the next 30 days will be used to upload the videos created by the professionals on the YouTube channel they created beforehand. The blogger will begin to write about the new adventure tourism company. His or her blog will be about adventure tourism or activities related to safaris, kayaking, trekking, spelunking, and diving. At the end of the blog, there is a link to the companys website.

In the next 30 days or the 90th day of the marketing campaign, a Facebook page will be created on behalf of the company. The CEO will contact sales and marketing representatives at Facebook to create some form of an advertising scheme. So when Facebook users post pictures of travel experiences that include images of sand, sea, and mountains, the advertising content describing SEC Adventures will be seen in a corner of the Facebook page.

The advertising content says that if the Facebook user visits the Facebook page or presses the like button, he or she can use her Facebook account to avail of a 10 percent discount. The CEO will also contact the sales and marketing arm of Google, and when users of the said search engine enter keywords related to adventure tourism, MTS, Miami, Caribbean, guided tour and related terms, the name of SEC Adventures appears in the search results as a paid advertisement.

Sample Financial Spreadsheet

Balance Sheet
Assets Start Date:01/01/2016 End Date:12/31/2016
CURRENT ASSETS
Cash in bank US$30,000 US$40,000
Accounts Receivable US$0 US$3,000
Inventory US$20,000 US$20,000
Prepaid Expenses US$5,000 US$5,000
Deposits US$2,000 US$2,000
Other current Assets US$10,000 US$10,000
TOTAL CURRENT ASSETS US$67,000 US$80,000
FIXED ASSETS
Machinery & Equipment US$5,690 US$6,500
Furniture & Fixtures US$2,100 US$2,600
Leaseholder improvements US$20,000 US$18,000
Land & Buildings US$0 US$0
Other fixed assets US$6,000 US$6,000
TOTAL FIXED ASSETS(net of depreciation) US$33,790 US$33,100
OTHER ASSETS
Intangibles 2000 1900
Other 2000 1900
TOTAL OTHER ASSETS US$4,000 US$3,800
TOTAL ASSETS US$104,790 US$116,900
Liabilities & Equity
CURRENT LIABILITIES
Accounts Payable US$3,000 US$60,000
Interest Payable US$2,000 US$3,000
Taxes Payable US$3,000 US$6,000
Notes, short term (due in 12 months) US$0 US$0
Current part, long-term debt US$10,000 US$3,000
TOTAL CURRENT LIABILITIES US$18,000 US$72,000
LONG TERM DEBT
Bank loans payable US$220,000 220000
Notes payable to stockholders 20000 18000
LESS: short-term portion 10000 8000
Other long-term debt 20000 18000
TOTAL LONG-TERM DEBT US$270,000 US$264,000
TOTAL LIABILITIES US$288,000 US$336,000
OWNERS EQUITY
Common Stock (US$120,000) (US$130,000)
Retained Earnings (US$63,210) (US$89,100)
TOTAL OWNERS EQUITY (US$183,210) (US$219,100)
TOTAL LIABILITIES & EQUITY US$104,790 US$116,900

Long John Silvers Restaurants Marketing Analysis

This paper aims at analyzing different advertisement strategies and mistakes made by businesses that lead to losses or closure. A food restaurant in the United States has been struggling to pay workers and make a profit. The business is among the poorly rated with an average daily income of less than $100. The research was conducted to assess the situation and have conclusive advice that can help the firm grow and restore its reputation.

Marketing Research

Companies depend on a reliable marketing strategy to meet their customers needs. Marketing involves the identification of clients desires and working towards fulfilling the requirements. The entire process of presenting products and services attracts customers, hence having sales growth, new clients, and efficient communication. Marketing also helps in creating demand and increasing profits. Advertisement strategies vary depending on the business level, with some using paid advertising, internet, relationship and diversity marketing, and word of mouth. However, there are challenges that companies face, such as inexperience of understaffing in the marketing sector, poor communication, new marketing strengths that most firms have little information about, and inability to interpret advertisement data.

Long John Silvers is a business in the United States struggling to make sales with poor reviews. The company is a fast-food restaurant making losses due to marketing problems. Most of the staff are undertrained hence have little knowledge of customer relations. As the food industry is growing tremendously, the business may soon collapse under the circumstances. There may be different solutions to the marketing challenge, including hiring professional employees and changing their marketing strategy. The restaurant may also need to introduce a new concept and product, preferably a signature meal that will attract a new wave of clients.

Research Method and Procedures

The marketing research was conducted to assess the challenges and make conclusive remarks with solutions that may enable the business to increase sales and grow. The analysis involved collecting information and having a comprehensive interpretation. A survey was conducted with the major data collecting method using questionnaires to former customers and employees. The questionnaire was close-ended, involving qualitative, primary data. The participants helped collect descriptive details to have insight on experiences in the restaurant. First, a criterion was made to recruit participants, with most qualified ones having grown near the business premises and witnessing the food joints rise and fall. The second group involved former employees who resigned or had worked in the eatery for more than three years. 50 participants were allowed to fill a quantitative questionnaire with both open-ended and close-ended questions. As a result, the qualitative data analysis method was used to assess the data collected and interpret it.

Data Analysis and Findings

The qualitative data analysis method was used to analyze words and open-ended questions allowing the researcher to make individual judgments (Morgan et al., 2018). The results indicated that 87 percent of the participants encountered poor services and were not compensated. Moreover, 70 percent complained of poor-quality food, either too greasy or cold with a few complaining about undercooked meals. Notwithstanding, the staff complained of underpayment and lack of unity as the management did not listen to grievances; 40 percent of the staff complained of working long shifts, with some claiming that the manager practiced favoritism. Lastly, 92 percent of former staff had little or no training in marketing and customer relations.

In summary, the majority of the staff had no motivation from the management, with most working with inconveniences. Customers were poorly treated, with the products sold being substandard. Moreover, the grievances presented were not utilized to improve customer service, and the staff had little or no information on marketing. The business needs a marketing strategy that can help improve reviews and increase sales reducing the losses made (Houghtaling et al., 2019). The management should review their staff and train them for quality service delivery with most of the menu revised to give the business a new beginning.

Conclusion and Recommendations

Under those circumstances, the business should create a market strategy to help improve sales and reputation. The management should introduce an expert dealing with marketing to train staff on customer service and quality product delivery. New marketing techniques with the use of technology such as social media should be utilized to help change the potential customers bad perspective of the business. Moreover, the new food should be introduced to the menu with improved cooking techniques and garnishing to attract potential clients (Hair et al., 2017). Food should also remain fresh, emphasizing timely delivery to reduce the time clients have to wait for their meals.

Equally, another method that will help the firm increase sales is the use of special offers and hosting events in the joint on specific days. For instance, having karaoke Wednesday each week will attract clients interested in music, or having fun Sundays where people are provided with special meals will attract more customers according to Hair et al. (2017). However, overpricing products will narrow the number of clients; hence the management should ensure that the price range is affordable (Morgan, 2020). In the same manner, there should be a delivery service for clients unable to visit the store (Hair et al., 2017). Most individuals are currently opting to order meals and have deliveries with transport costs included (Morgan, 2020). Deliveries will enable the company to increase their clients number, ensuring that as most enterprises have a transition to online transactions, the eatery is not declared redundant.

Different marketing strategies can be utilized to improve the eaterys sales, as mentioned. Tactful approaches are vital in ensuring that sales increase with more clients and a good reputation. However, having inexperienced staff and poor management techniques that discourage potential clients leads to the ultimate closure of businesses. Growth in businesses is determined by the sales, profits, and number of clients. Lastly, the motivation of employees helps create a conducive environment for good performance.

Limitations

The limitations of this research were the unwillingness of some qualified individuals to give information. Additionally, the data authenticity was not assessed hence the interpretation relied on the researchers views. Covid-19 limited the researchers access to credible data due to the restrictive measures established for personal safety.

References

Hair, J. F., Bush, M. W., & Ortinau, D. (2017). Essentials of marketing research (4th ed.). McGraw-Hill Education.

Houghtaling, B., Serrano, E. L., Kraak, V. I., Harden, S. M., Davis, G. C., & Misyak, S. A. (2019). A systematic review of factors that influence food store owner and manager decision making and ability or willingness to use choice architecture and marketing mix strategies to encourage healthy consumer purchases in the United States, 20052017. International Journal of Behavioral Nutrition and Physical Activity, 16(1), 5. Web.

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2018). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.

Morgan, R. M. (2020). Relationship marketing and marketing strategy: The evolution of relationship marketing strategy within the organization. In J. N. Sheth & A. Parvatiyar (Eds.), Handbook of relationship marketing (pp. 481504). SAGE.

Three Different Categories of Deceptive Marketing Practices

Marketers tend to implement deceptive practices that force the customer to believe they gain more profit than usual. Typically, these practices tend to provide misleading but appealing information about the product or service being offered. Even though deception is a commonly used method to attract more clients and increase sales, there are serious economic consequences that affect both traders and consumers. Marketing deceptive strategies are divided into pricing, packaging, and promotion.

The first deceptive strategy is promotion comprises a variety of advertising practices that are aimed towards affecting the decision-making of a client. Such situations occur when some specific features of the product are misinterpreted or mispresented. However, this practice attracts a lot of people who are ready for a bargain, when, in reality, the product is out of stock. Channels such as newspapers, radio, the Internet, TV, catalogs, or shop signs are usually the source of deceptive advertising.

This method is mainly represented through intentional oral, written, or visual misinterpretations that are prone to promising something grand when the product does not correspond to the demonstrated features in real life. For instance, the marketers usually present a product with free delivery included, though it actually involves some charges.

Another practice is called deceptive packaging and implies a row of actions concerned with product-packing, which is supposed to confuse the customers. Frequently, the manufacturers or traders use misleading labels, terms, vague design, wrong size, or fill only half of the package. Deceptive packaging is the method used for some reason. Firstly, the company may incur some rising costs. Therefore, it has to reduce the amount of the product in the package in a way that is not evident to the customers eye. Another reason is conditioned by the shape and the size of an item produced. Moreover, the exaggeration of the contents helps the manufacturer make a sales profit.

Deceptive pricing includes a number of practices related to false advertising concerning, for instance, the manufacturers sudden price reduction due to the going out of business or clearance. Despite these reasons for the price reduction, there are still hidden fees the buyer has to pay. False advertising impacts peoples choice-making in a split second. The decision changes because the customer is assured that they can acquire a product or service at a lower price, whereas in reality, they have to pay as usual.

The deceptive pricing may include bait-and-switch strategies. Therefore, when a buyer intends to buy a product at a lower price presented by the manufacturer, they have to make sure the product is available in the store and of decent quality. Sustainable marketing does not correspond with poor quality, so when the buyer is unhappy with the product purchased, they can spread this information, which is likely to influence the manufacturers reputation. This practices goal is to pay attention to clients and raise sales.

To sum everything up, it is clear that deceptive promotion, packaging, and pricing are the technologies that mislead the buyer. These practices tend to violate consumers rights and trust, which can result in the disruption of profitable business relations. Thus, one deception can make the customer choose a more reliable manufacturer. Marketers assume that the deceptive methods are no longer in the run as they are not sustainable. The implementation of deception in marketing is restricted and, in some instances, leads to financial penalties.

Not-For-Profit Marketing and Communication Strategies

Marketing has traditionally been a concept in commercial sector due to associated costs and strategic aim of selling a product, neither of which pertain to not-for-profit organizations. However, the application of marketing has been broadened in the nonprofit sector as a variety of mediums appeared that could be used to gain public awareness. A key distinction of nonprofit marketing is the necessity to continuously modify its strategy in accordance to the consumer environment, availability of financial resources, and the values which an organization supports (Not-For-Profit Marketing).

Nonprofit organizations function with the purpose of advocating or supporting a certain mission that covers social, political, or environmental concerns facing society (Gynn). This allows for content marketing that portrays a meaningful and inspirational narration which is appealing to any given audience. Using this concept of content marketing, organizations are able to address challenges of small budgets, understaffing, and lack of exposure. Nonprofits can focus on using mediums which are free (social media), employing volunteers, and increase public awareness through education and word of mouth; all of which are tremendously driven forward by inspirational ideology in strategic content marketing (Gynn).

Without a physical product or offered services, not-for-profit organizations struggle with the acquisition of customers through traditional advertising mediums, even via social media. Therefore, their marketing campaigns must select the most effective and cost-efficient methods to gain awareness. It is critical to note the reasons for why a non-profit organization requires marketing and public awareness. First, the more people know about the specific mission, the easier it is to engage social movements, gain political support, and attract support such as volunteers. However, since such organizations operate at a loss of profit, marketing is necessary to gain financial support. The most common categories of financially-focused marketing campaigns seek to attract:

  1. Traditional cause marketing that calls for donations in exchange for a symbolic product.
  2. Consumer fundraising to encourage donation at places of business or other platforms in support of the organizational mission
  3. Sponsorship of an organizational event or program to bolster the public cause (Lake).

A competent approach to strategic marketing allows for a nonprofit to expand its perspective beyond internal operations and focus its communications in a way that portrays a consistent and influential appearance to the external society. Nonprofit marketing consists of several key dimensions which encompass its overall strategy (Hafan). First, planning is critical in nonprofit marketing, helping to develop a strategy to achieve its goals as well as adhere to the strict budgeting and regulatory restrictions of such organizations. Positioning is the central concept to marketing that allows for an organization to establish its message and place within a community by creating a favorable and distinct image that would attract support and donations in a crowded marketing space (Hafan).

Goal and Methods of Nonprofit Communication.
Figure 1: Goal and Methods of Nonprofit Communication (Whats Normal? Communications at a Typical Nonprofit in 2015).

Communication remains a critical notion in nonprofit marketing in order to expand promotional capabilities. The following are strategies which an organization should apply in practice:

  • The use of promotional mix to build customer value and relationships.
  • Develop an integrated marketing plan.
  • Comprehensive strategy to utilize all available communication channels in a coordinated manner.
  • Focused message with a specific call to action (Molland).
  • Consistent communication between an organization and its stakeholders and clients.
  • Develop and incorporate a brand strategy for the organization.
  • Communication should create commercial value through consistency and identity.
  • Cost-benefits of not-for-profit branding include:
  1. Builds public trust through brand promise and communication
  2. Creates long-term and credible equity for the organizational mission
  3. Provides leverage for an organization to receive or gain access to critical financial, capital, and networking resources (Keller and Dato-on 87).
  • Communication strategies should outline an organizations goals that will be used to gauge and optimize performance.
  • Target audiences must be identified based on interests and social activity.
  • Observing target audiences in interaction with medial and online content can provide valuable information on increasing awareness about the nonprofit in that specific demographic.
  • Use the extensive and relatively inexpensive outreach of social media networks that can be carefully crafted to expand its influence over time. This allows relaying the organizations mission and background while encouraging action and contribution through the use of powerful imagery.
  • Non-profit marketing should focus on maintaining a conversation with its audience in communication, leading to more engagement and transparency (Best Nonprofit Communication Strategies).

A clear communication strategy should be in place that corresponds with an organizations stakeholders. Stakeholders are groups that interact and impact the organization, ranging from shareholders to regulatory agencies and supply chain partners (Not-For-Profit Marketing). Everyone, including employees, board members, clients, and donors require guidance and information that should be communicated in order for these parties to understand the non-profits strategic goals and objectives. Finally, resource attraction is the primary purpose of most nonprofit marketing campaigns, soliciting donations. A marketing orientation uses a variety of methods to develop vital relationships and expand the ability to influence the community (Hafan).

Developing a pertinent and competently developed marketing mix is critical for the survival of a not-for-profit organization in the market. The focus on nontraditional and grassroots efforts which are inexpensive and result in widespread awareness could be significantly advantageous for nonprofits. An efficient plan helps to understand and identify target audiences and segmentation that would be fundamental to commercial success.

Works Cited

Best Nonprofit Communication Strategies. Queens University of Charlotte, n.d.

Gynn, Ann. Nonprofit Marketing in 2017: Challenges, Strategies, and Examples. Content Marketing Institute. 2017, Web.

Hafan, Ty. Introduction to Nonprofit Marketing. n.d.

Keller, Eileen Weisenbach, and Mary Conway Dato-on. Testing the Premise that Marketing Attitudes and Brand Orientation Correlate with Nonprofit Performance: Connecting Research and Practice. Proceedings of the 2010 Academy of Marketing Science (AMS) Annual Conference. Developments in Marketing Science: Proceedings of the Academy of Marketing Science, edited by Dawn Deeter-Schmelz, Springer, 2015, pp. 86-90.

Molland, Judy. Integrated Marketing for Nonprofits. Charity Village. 2017, Web.

Lake, Laura. What is Nonprofit Marketing. The Balance. 2017, Web.

Not-For-Profit Marketing. Oxford University Press, n.d., Web.

Whats Normal? Communications at a Typical Nonprofit in 2015. Stone Soup Creative, 2017.

The Guinness Companys Applied Marketing Strategy

Background

Consumer behavior refers to the research on how customers select, purchase, utilize and dispose of resources to gratify their wants and needs. Understanding consumer behavior helps marketers in determining demand and understanding the best way to attend to consumers. Consumer behavior results to purchase decision varies depending on the product. The nature of consumer behavior is such that several factors influence it; it experiences continuous change, differs from consumer to consumer, region to region, information on it is significant to sellers.

Factors Influencing Consumer Behavior

Psychological factors include motivation, perception, learning, beliefs, personality, and self-concept. When primary and security needs are met, they influence motivation on consumers and cause them to purchase products and services. When a customer gathers information from things such as promotions and advertisements, it enhances their perception of the product and impacts their decision to buy (Akman and Mishra, 2017). Attitudes and beliefs make consumers act in a certain way towards a commodity, and it determines the brand image of the item.

Social factors influence purchasing behavior since customers are social beings and are influenced by people around them. Therefore, their buying actions depend on people around them, including family, reference groups, and their roles and status. Family plays a vital role in buying behavior, especially by observing the products frequently by the household. Reference groups are a class of individuals that one relates with, and usually, those that belong to the same reference group have mutual buying habits since they influence each other.

With cultural factors, people with the same ideologies belong to one community, and the values influence their buying behavior in their community. Cultural aspects include choice, morals, insights, and behaviors noticed and absorbed from people around. Within a culture, there are subcultures with similar beliefs and comprise individuals from diverse religions, locations, and ethnic groups (Sangroya and Nayak, 2017). These subcultures create a consumer segment with the same buying patterns. Social classes are dictated by income, education, dwelling location, domestic background, and career, which forecasts consumer habits.

Personal factors vary from one person to another; they include age, occupation, education, income, and lifestyle. The buying behavior of youths is different from that of the middle-aged and the elderly. People with higher incomes have more opportunities to spend and a higher buying power, while those with low incomes do most of their essential commodities. Individuals have a habit of buying items that are suitable for their profession, different lifestyles attract different buying behaviors.

The economy of a nation influences purchasing habits as prosperous nations attract high purchasing power. Some of the economic factors include personal income, family income, savings, consumer credit, and liquid assets. Higher expenditures are encouraged when consumers are granted accessible credits; customers who possess liquid assets spend more on items other than basic needs and gain more confidence to purchase luxurious items. The quantity of savings an individual has influenced consumer behavior as those with more savings tend to spend less on buying.

Buyers responses influence how consumers behave; consumers tend to buy those products that serve their interests. Consumers have specific categories they want; they prefer some brands to others and only spend on those they are comfortable with. Buying behaviour responds to who the reseller of that product is; purchasing timing also matters as purchasing power is always high during some seasons, especially when there are ceremonies. Some products cannot be bought frequently but only when required; consumers tend to purchase products offered at an affordable price.

How marketing is conducted determines how consumers behave; how a business promotes its products determines how consumers behave. Organizations have to set strategies and objectives that encourage buying. Millennials, for instance, obtain information about markets in social media; making use of technology means influencing their decisions to buy. Businesses located at strategic places with fair prices, quality products and good promotional strategies cause consumers to purchase more.

How the Factors Apply to Guinness Campaign

Made of More campaign by Guinness won an award since a lasting strategy was built that resulted in huge returns and increased efficiency on their return on investment. Guinness realized the importance of human psychology to buying decisions. They have invested in motivating consumers in different ways depending on their needs. They have strived to change consumers perceptions about their products through advertisements and promotions ((Li et al., 2021). Guinness has focused so much on reference groups and social status; they have devoted themselves to offering quality products to influence and maintain people with high social levels.

Guinness being a global company came up with ways of meeting needs of diverse cultures; they made their drink appeal to people with various desires. The makeup of the products was created so that they do not contract the values of a particular society (Jernigan and Ross, 2020). The company also addressed the needs of different social classes and subclasses by making various products in various formats. Guinness serves people with different lifestyles, education, and occupation, considering the difference in personal factors. Considering economic factors, Guinness is consumed in all economic environments across the world. These applied factors have enabled Guinness to thrive in the market since the organization is not affected by the change in consumer behavior.

Guinness has applied the marketing mix concept; it has its operations held in strategic places in different countries across the globe. Guinness provides quality products at the best prices through the skimming strategy; it has an appropriate marketing policy, and excellent advertising policies that exalts its brand name. Guinness has had different marketing campaigns with good taglines like made of more campaign that increased its visibility. Guinness applies the buyers response concept by investing in advertisements and promotions so that its brand becomes the best choice for consumers. For example, there is a promotion of winning a trip when one becomes a fan of it.

What Shapes Consumer Behavior and Why They Behave the Way They Do

On regular days, consumers are prone to holding on to their habits, even though there are times when consumers change behavior, and this forces organizations to find ways of satisfying their needs. Personal, social, psychological, environmental, and cultural factors are the ones that shape consumer behavior, and this links to the reasons why they behave the way they do. Firms can take some actions to influence consumer behavior; The steps involve strengthening positive new beliefs, shaping emerging behaviors with new offerings, enduring new habits, position information to consumers mindsets, and examining consumer beliefs and practices.

For one to understand consumer behavior, it first begins with conducting research. Customers these days have been reported to be making comparisons on the internet before making buying decisions. A large portion of consumers has confidence in online reviews, referrals, and personal endorsements. Marketers need to understand that buying is emotional, and so consumers are greatly influenced by their feelings; how options are offered to them matters and can act against their financial interests when there are biases. To entice buyers, they have to make sure they are present online to capture customers attention speedily and adopt a setting where reviews and extraordinary experiences are left.

What Guinness Is Looking to Achieve

Guinness has a vision of being the best performer, most reliable, and esteemed organization for consumer products. They endeavor to be the best by continually searching for knowledge and making continuous improvements. They establish high standards then strive to surpass them. Guinness anticipates coming up with a worldwide brand idea to increase its marketing efficiency globally (Arvanitis, 2020). Another objective they expect to achieve is establishing one consistent global approach for marketing and generating a flexible platform, bringing better economies of scale and results to brand fame.

How Guinness Breaks Down Differentiation Among Broad Cultural Differences

Guinness has employed different marketing strategies for other markets depending on their cultural values. It has adapted advertising with dialects that are acceptable to a famous country. The cultural preferences of different needs have been put into consideration, having many other products and presentations across the globe (Connolly, 2020). The shapes and features have been designed according to cultural significance. This has enabled Guinness products it remains significant for markets leading to organizational success.

Marketing Concepts

Marketing concept refers to the approach used by firms to meet the needs of consumers, grow sales, increase profits and survive the competition. Five marketing concepts help in knowing the best viewpoint for setting strategies and understanding the importance of interests of different entities. In the production concept, consumers advocate for products that are economical and accessible (Gurjar et al., 2019). When adopted by organizations, this concept exposes them to the risk of losing focus and can lead to bias. It pushes management to pay attention to refine production and efficiency in supply. Organizations using this concept tend to minimize the cost of production and widening distribution. The production concept applies when demand is higher than supply and when production cost is high.

The product concept claims that customers go for high-quality products, performance, and advanced features. Here, the marketing tactics focus on constant improvements on products; the key emphasis is on the product. The selling concept states that customers will not purchase enough of the organizations product until they commence extensive selling and promotion efforts. The goal is to sell whatever the firm makes and not what is needed in the market (Budnikevych and Gavrysh, 2017). It is practiced in unsought goods, and buyers usually have no thoughts of buying them. The organization is left with the responsibility of advertising and selling.

The marketing concept understands the needs of customers and offers satisfaction better than rivals. It holds that realizing company goals relies on understanding the needs and wants of target consumers and then satisfying them in an excellent way than competitors do. In this approach, the priority is on the customer; the desired commodities are produced in the right quantities and stipulations; the focus is toward making markets and not products. Marketing begins with the market, the customer, and then on realizing profits through buyer satisfaction. The societal marketing concept provides value to the buyer to improve the customers welfare and society. It prioritizes human wellbeing than profits and needs satisfaction, and sellers must balance between profits, buyer fulfillment, and public interest.

Guinness Marketing Concepts

The case study shows that Guinness uses the product concept to unite its global audience; it focuses on making continuous improvements in its commodities. Guinness has laid strategies for produce drinks that have a unique taste of high quality through a global approach. They keep improving their product from time to time to enhance its quality and improve its features. Improving the product comes from the belief that customers go for quality commodities with advanced features. That has helped them to have significant economies of scale and meet the needs of the worldwide market. Guinness also uses the production concept; Guinness has many operational markets across the world that work to ensure that its products can easily be accessible by its target consumers. It has also been focusing on refining its products to suit the needs of different markets worldwide.

As stated in the case study, Guinness uses the marketing concept to comprehend the needs of its target customers so that it can satisfy their needs better than other brewing companies. It concentrates on making its products to be a bold choice for drinkers. It realizes the connection between achieving company goals and understanding customer needs; it prioritizes the consumer. Guinness uses the societal marketing concept to offer value to its consumers than making profits; it made products that had medicinal benefits.

Guinness does not apply the selling concept since it focuses on market needs, unlike the selling concept, which neglects customer needs and the firm produces whatever it wants. The selling concept is not concerned about the relationship with customers, unlike Guinness, which aims to create an excellent public image for their customers. The products produced by Guinness are not unsought goods, so it cannot apply the selling concept. The study of customer purchasing practices helps sellers understand what buyers expect of them, influences them to purchase a commodity, and marketers can know what customers hate and like so that their marketing efforts towards the discovery.

Reference List

Akman, I. and Mishra, A., 2017. Factors influencing consumer intention in social commerce adoption. Information Technology & People.

Arvanitis, P., 2020, June. Dancing to enhance the destination image: Co-Creating a Guinness World Record. In Tourism Hospitality Events, International Conference (p. 36).

Budnikevych, I. and Gavrysh, I., 2017. Modern marketing concepts as the basis for formation and increase of the attractiveness of cities and territories. Baltic Journal of Economic Studies, 3(1).

Connolly, M., 2020. Chapter Title Factors Influencing Consumer Wine ChoiceThe Case of Wine Tourism.

Gurjar, P., Kaurav, R.P.S. and Thakur, K.S., 2019. Content Marketing: Concepts and Its Relevance in the Tourism Industry. In Proceedings of 10th International Conference on Digital Strategies for Organizational Success.

Jernigan, D. and Ross, C.S., 2020. The alcohol marketing landscape: alcohol industry size, structure, strategies, and public health responses. Journal of Studies on Alcohol and Drugs, Supplement, (s19), pp.13-25.

Li, F., Larimo, J. and Leonidou, L.C., 2021. Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing science, 49(1), pp.51-70.

Sangroya, D. and Nayak, J.K., 2017. Factors influencing buying behaviour of green energy consumer. Journal of Cleaner Production, 151, pp.393-405.

Jeep Companys Marketing

Introduction

Jeep is an automobile company, which was established in 1941 in the US. The firm is a subsidiary of Chrysler Group Limited Liability Company, which is owned by Fiat S.P.A and it is headquartered at Toledo, Ohio. Jeep has expanded its operations into the global market by establishing outlets in different parts of the world. The company specializes in the production of off-road and sport utility vehicles.

Jeep has undergone a significant transformation over the past decades by investing in innovation and refinement. It has invested in continuous innovation of its automobiles by investing in engineering. The firms innovative capacity has led to the introduction of diverse Jeep brands. In 2011, the firm redesigned the Grand Cherokee by incorporating additional styling cues. Jeep has managed to enhance its competitiveness by investing in continuous innovation.

In addition to innovation, the company appreciates the importance of adopting optimal marketing practices. It is imperative for firms management teams to incorporate marketing as one of their strategic marketing practices. Effective marketing enables organizations to develop long-term competitiveness by establishing a strong level of customer loyalty.

The firms commitment to marketing is evidenced by diverse aspects such as the adoption of Go Anywhere, Do Anything as its slogan. Currently, the firms customers consider the slogan as a way of life. Subsequently, they have developed a high level of customer loyalty towards the Jeep.

This paper is a critique of the Jeep brand by assessing how the firm has utilized social media in its marketing practices over the first quarter of 2014. The paper examines how the firm has utilized the various social media platforms such as Facebook, Twitter, YouTube, and Google+ amongst others in its marketing processes.

Analysis

Market changes  innovation and change in consumer behavior

The 21st century has been characterized by a high rate of innovation. Subsequently, the intensity of competition has increased significantly. New firms are increasingly entering the market to exploit market profit. Subsequently, most industries have experienced a significant increment in the degree of industry concentration.

Furthermore, firms in different industries have experienced a significant change in information communication technology. Innovation in computer technology has revolutionized information communication technology.

The past two decades have been characterized by the emergence of diverse web-based technologies. The development of social media platforms, for example, Facebook, YouTube, Flickr, Twitter, WhatsApp, and Instagram amongst others is one of the most notable changes in ICT.

In addition to technological innovation, the market has also been characterized by a significant change in consumer behavior. One of the most notable changes relates to the rate at which consumers are incorporating ICT in their purchase decision-making process. For example, consumers are using the Internet in searching for diverse product and service information.

In addition to the above, consumers are using diverse social media platforms in the process of interacting with their colleagues, family members, and friends.

The emergence of diverse social media platforms has increased the rate of interaction amongst consumers in the global market. In a bid to survive in a market characterized by a high rate of dynamism, it is imperative for firms management teams to adjust their strategic management practices to the prevailing market trends.

One of the aspects that the firm should take into account relates to branding. Developing a strong brand is critical in enhancing an organizations competitiveness. Through effective branding, an organization can deliver product promise and meaning to the target customers, hence developing a strong brand identity. Effective branding improves the level of market awareness, hence increasing the level of acceptability of a particular product in the market.

Application of social media in promoting the Jeep brand

Jeep has integrated diverse social media platforms to attain competitiveness by improving the relevance of its brand. Some of the various ways through which the firm has utilized social media in its marketing activities over the past three months are evaluated herein.

Twitter

In February 2014, Jeep developed an online marketing campaign through its Twitter platform. The campaign was conducted by adopting the slogan Stay Restless with Jeep Cherokee. Restlessness refers to a feeling, which emanates from ones failure to satisfy his or her curiosity.

Furthermore, restlessness makes individuals act on their curiosity. Subsequently, one can assert that restlessness fuels an individuals ambition. Jeep was motivated to develop the new Jeep Cherokee by appreciating the role of restlessness in the consumers behaviors.

The slogan Jeep Stay Restless was adopted during the 2014 super bowl match. The firms marketing department decided to integrate the slogan to influence consumers to purchase the new automobile. For example, the slogan was aimed at ensuring that customers develop a perception that they can do anything with a jeep, for example, undertaking a get-away trip to hike or skydiving.

Furthermore, the slogan illustrates the ability of Jeep Cherokee to deliver its clients from restless situations by providing them with appealing artistry, superior performance, user-friendly connectivity, and exceptional fuel economy. The images below illustrate commercial that the firm has integrated into its Twitter page.

!ommercial that the firm has integrated into its Twitter page
!ommercial that the firm has integrated into its Twitter page

To create awareness on the existence of the new brand in the market, Jeep developed an official Twitter handle dabbed #stayfree. This has given Jeep an opportunity to interact with its customers. Furthermore, the firm has adopted the slogan Go, Run, Act, Find. Dare in its online marketing campaign.

The slogan is aimed at motivating customers to consider the Jeeps ability to withstand diverse environments. The firm has adopted the handle #getoutthere to stimulate its customers to try new experiences by driving in diverse environments.

Jeep has also adopted Twitter in creating awareness regarding its public relations event. On April 8, 2014, the firm used its Twitter handle in creating awareness regarding an event dubbed the Easter Jeep Safari.

This goal is being achieved by developing a Twitter page dabbed #EasterJeepSafari through which it interacts with its customers. Jeep also uses its Twitter page to create awareness by posting images of its automobiles in off-road terrain.

YouTube

YouTube forms part of the social media platforms that are increasingly being utilized by marketers. The effectiveness of YouTube in marketing arises from its cost-effective nature.

For example, developing a YouTube video does not require any specialized skills. Moreover, a large number of potential customers around the world can view the video by posting it on YouTube. However, it is imperative for marketing managers to ensure that the video posted on YouTube is of high quality.

Considering the prominence of YouTube amongst consumers, Jeep has also incorporated it in its marketing communication. The firm utilizes it by posting videos of its products. This aspect enables the firm to explain the various features of its automobiles. YouTube has provided Jeep with an opportunity to illustrate the off-road capability of its automobiles.

For example, over the past few months, the firm has posted videos of its 2014 Jeep Cherokee Trailhawk in diverse terrains such as rocky, sandy, hilly, and muddy terrains. The course was specifically designed to illustrate the capability of Trailhawk to perform exemplary in an off-road environment. The video posted also illustrated the power and stability of Trailhawk in off-road conditions.

The video also illustrates how drivers can change the mechanism of the Trailhawk depending on the nature of the ground. Therefore, the video shows the ability to adjust the performance of the new 2014 Jeep Trailhawk to fit the road conditions. Jim Morrison, the firms director of brand marketing, conducted the demonstration and 1,130 individuals have viewed the video.

Posting videos of its products on YouTube has played a remarkable role in the firms innovative processes. For example, the comments made by consumers have enabled the firms marketing department to understand the market response on the new products. Furthermore, the firm can identify market gaps, hence gaining an idea on how to undertake product improvement.

Facebook

Jeep has also integrated Facebook in its marketing communication. The firm has created a Facebook account through which it interacts with its customers. The firm has continued to use Facebook in positioning its iconic brands, which consumers are increasingly associating with adventure, capability, and freedom.

For example, the firm created awareness of its 2014 Jeep Cherokee by encouraging customers to celebrate the warm weather by going on adventures using the Jeep. Similar to Twitter, Facebook has enabled Jeep to understand the customers responses. The firm has obtained relevant market information by understanding the prevailing market criticism.

In an effort to develop a strong brand identity, Jeep has developed a special Facebook account dubbed Jeep Fan Top Five. The account gives customers the opportunity to compete by posting images of Jeep under diverse off-road terrains. The top five images are posted on the Facebook fan page every week. Subsequently, the firm images are in a position to generate comments regarding the images.

The competition plays a critical role in illustrating the performance of the Jeep brand under different conditions  for example, customers post images illustrating the level of stability of the Jeep. The posted images generate compliments and complaints from consumers, hence providing the firms management team insight regarding the level of brand identity and loyalty.

Jeeps management team recognizes the importance of creating sufficient market awareness by providing customers with diverse product information. Subsequently, the firm has developed a page titled Jeep; One of One Million, which allows customers to find out the market position of the Wrangler JK by keying in their Vehicle Identification Number [VIN]. The page also gives consumers an opportunity to build their brand.

For example, customers can describe their Jeep automobile preferences. Consequently, the firm advises the consumers on the most appropriate type of Jeep. Some of the issues that the firm takes into account in its build and price campaign through the website include the product features such as the towing capability and engine characteristics such as fuel consumption among others.

Wikis and blogs

The high rate of innovation about information communication technology has led to the development of Wikis and Blogs, which are new social media platforms. Organizations are increasingly utilizing Wikis and Blogs in their marketing communication processes. Jeep has integrated blogs in its marketing processes.

The firm has been in a position to establish open market communication by developing The Jeep Blog through which consumers can interact with their customers. Furthermore, the firm is in a position to understand the customers compliments and complaints regarding its products and services.

Using blogs has played a critical role in enhancing the Jeeps public relation efforts. For example, on 16 February 2014, Jeep posted an article on its blog inviting consumers to show their love for their Jeep brand by participating in a Jeep Brand Vehicle Sweepstakes.

The blog attracted Jeep owners and fans to participate in the marketing process in which they would be offered Jeep brand camping gear. In a bid to participate in the event, fans were required to post a comment on the companys Facebook page describing their first jeep brand vehicle and why they love their current Jeep brand.

Critique of the performance of Jeep in its social media marketing

Improvement in operational efficiency and credibility

The above analysis shows that Jeep recognizes the importance of integrating social media in its marketing practices. First, social media has enhanced Jeeps market performance by creating an optimal level of market awareness regarding the Jeep brand. Furthermore, using social media has increased the firms ability to undertake continuous improvement in its automobile products.

For example, the firm gains insight into the consumers perception regarding the Jeep. Subsequently, Jeeps management team is in a position to obtain market feedback effectively and efficiently. Moreover, using social media has played a remarkable role in providing the firms management team with insight into the level of customer satisfaction.

Using social media platforms such as Facebook, Wikis, Blogs, YouTube, and Twitter has given the firm an opportunity to illustrate the performance of the Jeep brand. Subsequently, social media platforms have contributed to the development of a strong brand identity.

Furthermore, the tools have given potential customers the opportunity to understand certain product features, which would be difficult to communicate through traditional marketing communication mediums such as print media. Social mediums have also led to the development of a strong perception of inclusion amongst consumers in the firms product development processes.

For example, the consumers information is increasingly utilized in the process of improving the functionality and appearance of the Jeep brand. Subsequently, the likelihood of the firm developing a strong competitive advantage is greatly improved.

In the course of their operation, businesses do not have control over the market environment, which has become very dynamic over the past few years. The emergence of social media has increased the buyers bargaining power. For example, consumers can access information regarding a particular product or service through social media.

Some consumers may post negative comments regarding the firms products and services. Millions of consumers may view such comments across the world, hence affecting the reputation and image of the company. Such negative comments may adversely affect the firms ability to achieve long-term competitiveness.

Loss of brand reputation and credibility may take a firm a substantial amount of resources [time and money] to restore. In the event of such an occurrence, Jeep may utilize social media platforms in conducting damage control, hence safeguarding its brand image and reputation.

This goal can be achieved by posting comments to counter the negative brand image, which might have been created through social mediums. Subsequently, social media is relevant in the Jeeps marketing performance by improving the effectiveness and efficiency with which the firm deals with the negative brand image.

Improvement in the firms marketing communication process

Integration of social media has led to significant improvement in the firms marketing communication process. Using social media has greatly enriched the Jeeps market promotion strategy. For example, adopting social media has expanded the firms integrated marketing communication process.

Subsequently, the firm is in a position to create awareness regarding the quality of its automobile products to a large number of potential and existing consumers. Currently, consumers are utilizing social media in their socialization process, which leads to improved efficiency about marketing through word of mouth.

Strong customer relationship

Social media has also played a remarkable role in improving the level of the customer relationship. The firm extensively uses social media in interacting with consumers, hence understanding the consumers perception. Using social media in its marketing processes has led to the establishment of an online community, which is specifically concerned with communicating various issues associated with the Jeep brand.

Subsequently, the firm has been in a position to create market awareness to a large number of consumers globally. Moreover, the firm has been in a position to nurture a high level of customer-to-customer relationship.

Conclusion

This study shows that social media plays a remarkable role in promoting the marketing capability of a particular business entity. Jeep Incorporation has integrated social media in its marketing communication efforts over the past few years.

The firm has integrated diverse social media platforms in creating awareness regarding its Jeep automobile brand. The study has identified the main social media platforms used by the firm. These mediums include Facebook, Twitter, YouTube, Blogs, and Wikis.

These mediums have improved the firms marketing efficiency through a number of ways. First, the mediums have enabled consumers to develop a positive perception regarding the firms brand. For example, using You, Tube has given Jeep an opportunity to illustrate the efficiency, stability, and performance of its brands. Posting videos on YouTube have enabled Jeep to illustrate the performance of its automobiles in different terrain.

Subsequently, the firm has been improving the consumers perception regarding its brands. Furthermore, using social media has greatly enabled the firm to enhance the credibility of its products. Social media has also enhanced played a remarkable role in improving the firms performance by enhancing the level of the customer relationship.

Furthermore, integrating social media has enabled the firm to achieve efficiency and effectiveness in its product improvement effort. This assertion arises from the view that the firm can access credible market information from the customers feedback, which can be utilized in making product improvement decisions.

Therefore, social media has greatly enhanced the Jeeps marketing capability. Considering the current market changes, Jeep should undertake the continuous improvement of its marketing capabilities through the emerging social mediums. This move will play a significant role in enhancing its long-term competitiveness.

Snapple Juice Company Marketing Strategies

In terms of distribution infrastructure, the company owns over one hundred and seventy distribution centers within the U.S and twenty-three within Mexico with its warehouses operating within the proximity of the bottling plants. This in effect means that the company utilizes its network, convenience stores, and supermarkets for the purposes of boosting sales.

Distribution via convenience stores is most preferred as owners reap maximum gross returns with supermarkets by receiving the lesser gross return. Supermarkets are mostly preferred at later stages because of their capacity to stock different products under Snapples brand name as opposed to convenience stores which deal with limited product line under one brand.

Future strategy in enhancing distribution processes is by providing products to both off, and on-premise retailers with off-premise retailers granted the priority (U.S. Census Bureau). Snapple Company does internet marketing via their website domain (www.snapple.com) which is a strategy in support of promotional programs.

Advertisement within this site depicts brand character, humor and graphic looks, an avenue which led to an increase in sales by over 10% in late 1999 with the brand maintaining top attractions within the stipulated market share. Todays business world encourages the promotion of products through social sites marketing.

Considering the largest target market for Snapple products are the youth, insignificant investments in social sites adverts will have significant performance in product sales. Internet marketing has the advantage of being easily accessible and inexpensive compared to other forms (Deighton 3-7).

Snapple Juice Company commands 21.3% of the fruit juice market in the United States with a global presence in three other countries including, Mexico, Canada, and the Caribbean. Total Sales in these regions in 2010 was unevenly distributed with the United States having over 80%, Mexico and the Caribbean between 6-7% and Canada below 5%.

In the U.S and Canada, the company manufactures and distributes carbonated soda drinks sold inform of concentrates and fountain syrup. Whereas in Mexico and Caribbean regions the range of products includes; carbonated mineral and vegetable juice drinks amongst other products.

Besides these markets, the company needs to consider other global markets because of the effects of market saturation within their areas of operation. Diversifying sales into other regions will not only boost the sales value but also help in upgrading their percentage market share (Deighton 3-7).

Pricing within the juice industry appear to be highly elastic, change in pricing significantly affects demand with consumers preferring low prices of the nearest complementary products having the same qualities. The company can only offer discounts to wholesale purchases on its products and through loyalty programs offered through their distributors which could help counter the effect of price elasticity.

Use of premium pricing as a strategy used by the company justifies prices of products based on qualities. This system has maximum benefits to distributors and retailers of the products with Coca Cola and Pepsi companies being critical competitors to Snapple (Deighton 3-7).

A strong customer relationship is one of the critical values of any business. Long term relationships built on this platform has enabled the company market its product to a wide array of marketers including national retailers, large food service customers, and convenience stores. This has made the company meet adequate demands of consumers.

Lastly, product diversification under the brand name has proved to be effective in catering to all population groups. In the future, the organization needs to enhance web advertising and explore new markets (Deighton 3-7). Television advertising accounts for over 70% of resource allocation followed by print advertisements and internet advertising at 29% and 0.1% respectively.

Advertisements done over these modes have been made to reflect Snapple products as superior qualities to those of other competitors. The company promotes the sale of its products through sponsorship of sports events; they utilize such events to sell off their excess products. The company also applies the use of coupons, discounts, and enrollment of loyalty programs among consumers.

These methods work since they help in building a customer base and making the brand appear superior through high sales within the market, and also giving the opportunity of responding directly and adequately to consumers dilemmas. Personal selling is also one of the effective forms of promotion due to its low costs and is executed in the company through face to face interviews.

The company establishes customers needs through asking, listening and observation. Some steps are utilized for the success of personal selling, these include; the making of short-term measures for the purpose of checking marketing efforts, knowledge about current customers being dealt with, knowing how to differentiate the customers, selecting the best customers and finally giving offers to best customers.

The customers focus on opportunities since any changes made within the organization opens up other possible avenues for satisfaction. When the organization is not delivering to the expected standards, customers will automatically shift their focus towards other companies delivering quality products and services other than Snapple Juice Company.

The main objective of marketing Snapple juice is broad though increasing sales accrued to this brand and product line items and lastly to offer diversified products tailor-made to cater to customer demands. These two objectives can be met through the application of Strategic product pricing, offering robust distribution infrastructure and extensive product diversification.

Product diversifications encompass supplying products suitable for all population categories within the market. To achieve significant market presence products have to be made in various tastes and nutritive requirements for the benefit of the population. Also, these products are to be produced in sizes which are economically feasible to both consumers and the manufacturer to cater to the lower end category of consumers within the population.

The second tactic is enhancing effective, robust distribution of the products. Since a significant proportion of the population is not adequately catered for, the company should consider either investing in building dedicated distribution infrastructure or result in outsourcing distribution from committed distributors. This enhances the availability of these products within the market to cater for the increasing demand.

Works Cited

Deighton, John. How Snapple Got Its Juice Back. Harvard Business Review, (2002): 3-7

U.S. Census Bureau. United States Fact Sheet 2006 American Community Survey. NY; Vienna, 2006. Print.

Customer Relationship Marketing in Business Marketing

Introduction

The marketplace has become dynamic due to pressures of scientific advancement, demographic, economical upheavals, social evolution, and global politics. Business organizations are also experiencing changes and thus the marketing role in these organizations is also transforming. Due to these changes organizations are moving from marketing mix focus to relationship marketing focus. Todays marketing is different from its earlier form and it involves total organization commitment, persuasive throughout the firms operating system and culture (Bruhn 2003). Relationship marketing focuses on customer-driven marketing practices, profitability, and strategic marketing practices. The first objective of relationship marketing is extending the customers lifetime value through strategies that aim at retaining targeted customers. The second objective is the recognition that companies need to create relationships with stakeholders to achieve long-term success in the final marketplace. The third objective is to change marketing from being the sole responsibility of the marketing department but instead being pan-company and cross-functional.

It is very expensive for companies to get new customers than it is to retain and thus companies are working towards giving the best value to their customers to create their loyalty and avoid losing them. When organizations adopt the relationship marketing strategy, they can understand what the customers needs are and thus aim at meeting their needs satisfactorily to make the customer come back. Interaction with the customer helps one to understand the preferences and behaviors of the customers and thus gives a company an edge since it can satisfy the customer, which results in their loyalty and thus makes it hard for the customer to go to a competing company (Peelen 2005).

When a marketer understands the customers preference and behavior it is important to segment the market according to the different behaviors of different customers. The company then comes up with different products and services to meet the different segments. Advertising messages are also customized to target the different market segments appropriately. This creates customer value where the customers feel that the company understands their needs properly and can meet them satisfactorily and thus the customer becomes loyal to the company which makes the company have an edge in the market (Peelen 2005).

Customer relationship management (CRM) is a strategic approach aimed at creating customers value through an appropriate relationship with customers and customer segments it thus integrates the potential of information technology and relationship marketing strategies to deliver profitable, long-term relationships. CRM provides important chances to use data and information to understand customers and also to implement relationship marketing better. This thus requires cross-functional integration of people, marketing capabilities, and operations through information technology and applications.

Relationship marketing helps in customer retention which thus reduces the companys marketing cost. It is very expensive to get a new client than it is to retain an existing one because a lot of money will be used in research and analysis work to get one client. Cost may also be reduced because in some business-to-business markets, the relationship may be fully automated, and also some supply chain relationships may employ electronic data interchange (EDI) that automates the ordering, inventory, and invoicing process.

Relationship marketing also helps in better customer insight. Marketers can get a clear understanding of the customers needs and expectations and on the other hand, customers also understand what the marketers can provide for them. As the relationship becomes strong, commitment and trust also grow because companies are in a better position to identify and satisfy customers wants satisfactorily and profitably because they can sell more products and services to the retained customers (Peelen 2005).

Relationship marketing is important because it helps to drive customer response since, with established interaction with the customers, it is easy for one to get information from them on whether their needs have been met according to their expectations or not. This is important because the company can improve any shortfall that the customers may suggest about the products or services offered. This thus increases the loyalty of the customers which leads to the companys profitability.

Communication and relationship development

The relationship marketing process helps in creating and maintaining a healthy relationship in the exchange process. This results in increased customer commitment and collaboration through the ongoing transformation of the normal routines and norms (Bruhn 2003). Communication is important in developing marketing relationships because it helps in coordinating behavior in an organization and relationship marketing. Communication also assists in bringing together inter-organizational channels of distribution. It provides an understanding of the intentions of the partners involved in an exchange process and creates trust among the partners which helps in developing relationships. A good design of the communication process acts as a decisive role in relationship marketing.

In relationship marketing, communication is a prerequisite and it helps in informing, listening, and answering which involves two-way communication. It is no longer restricted to a small group of people like in the past but suppliers who have deals with customers sometimes act as marketers having the role of the relationship marketing communication (Peelen 2005). Relationship marketing development involves several phases which are the pre-relationship phase, negotiation phase, and relationship development phase.

The pre-relationship phase involves a situation where a customer looks for a new company due to dissatisfaction with the present one. The customer evaluates the services of the new company and compares them to competitors. Information is very important to make the right decision and a customer may get this information from friends about the services offered by a certain company and this forms the basis of linking. The social distance in this phase is large because the partners are not familiar with each others performance both personally and business-wise.

The negotiation phase involves the exchange of wants, issues, and priorities because it is a phase of discussion and bargaining. Arguments may arise in this stage on need uncertainty where a company may be faced with the challenge of understanding the needs of the customers properly. Market uncertainty may also arise where the decision-makers may want to commit themselves to one segment due to the heterogenic nature of the market. The other argument in this phase is transactional uncertainty which results in incompatibility problems between customers and operations of the business about technology and ability of delivery. Good communication can help in decreasing these uncertainties and assist in proper decision-making.

The third phase of relationship development involves increased benefits resulting from the exchange partners and their interdependence (Bruhn 2003). This phase creates trust between the partners and also satisfaction of the customers is achieved thus bringing down the level of uncertainty and the distance between the partners. Customer visits allow the face to face marketing and it helps one to understand the customers problems and their needs are well understood and interpreted.

Relationship marketing and customer loyalty

Relationship marketing results in the creation of customer loyalty. These customers are very profitable to the organization because they are very cheap to serve and are willing to pay a premium price for a certain brand, unlike the nonloyal customers. These customers also preach about the companys products thus attracting other customers through the word of mouth. To understand the customers loyalty and switching behavior, one must know the customers buying motivations (Peelen 2005). Brand loyalty by customers involves three components which are repeat purchase, commitment, and preference. To gain customers loyalty the product offered by the company must be superior according to perception by several segments, for it to be profitable. It should also be in a position to be embedded in a social network and be subject to adoration. Since it is difficult to achieve full commitment by the customer it is important to come up with different loyalty strategies for different segments.

The first segment has the emotive loyalists who are the most loyal type of customers and perceive that their current brand is the best and thus do not frequently reassess their brand. These customers also spend a lot of money because of their over-purchasing behavior. The other segment is inertial loyalists who are not involved with the product and face the high cost of switching which makes them practice repeat purchasing. The third segment is deliberative loyalists who are loyal to a brand because they perceive it to be superior to those of the competitors. They perceive its superiority by comparing its performance and price with other products. These types of customers reassess their purchases quite often depending on new information or other new alternatives (Bruhn 2003).

Customer loyalty is influenced by several factors like ease of switching whereby if the cost of switching a brand is very high then the customers will stick to their current brands. The degree of differentiation also influences the customers loyalty because if a companys product is differentiated unlike the competitors, then the customers will not be ready to switch to the competitors brand. How often interactions are made through service call or other means also influence the level of loyalty because when the interaction is maintained either through face to face, telephone calls, or visits, the customer feels valued and is likely to be loyal to the companys products.

Customer loyalty which is the relationship that a customer has with a product leads to brand equity. Customer equity includes value equity which is the assessment of the brands utility by the customer and it depends on the products price, convenience, and quality. Customer equity also includes brand equity which is an assessment by the customer of the companys image and is influenced by the attitude of the customer towards the brand, the firms citizenship, and brand awareness. Retention equity is also part of customer equity and it is the behavior of the customer liking a brand without assessing it.

Managing customer relationship management

Customer relationship management aims at creating shareholders value by developing a good relationship with customers and customer segments. It brings together the capability of relationship strategies and information technology to create profit and relationships with stakeholders and customers which is long-term. Marketing is a management responsibility and it involves looking for an effective market, coming up with strategies on how to create value, and ensuring a coherent whole. Customer relationship management helps the business to target customers more closely and implement one-to-one marketing strategies (Peelen 2005). The application of customer management principles results in good financial outcomes because it helps the company to get closer to the customers to help the company succeed as a whole. To successfully implement a customer relationship management system, there must be communal coordination in information gathering, serial coordination to get information of customers past behavior, symbolic coordination which will assist an organization to predict the future behavior of the customers, and integral coordination which will help in the company to respond immediately to the customers needs.

Strong internal partnership around the customer relationship (CRM) strategy is important in helping proper implementation. Management needs to form a strong relationship with other areas of an organization to avoid conflicting strategies. Employees can help in the collection of customers information to increase the depth of customer relationships. CRM helps to create, maintain and expand customer relationships (Peelen 2005).

To achieve customer relationships, a marketer should improve on several issues. The first thing is to get clear information by writing all the deals that one has agreed with the customers and share with other team members f the organization. Such details include what the customer said, the date when the customers orders should be delivered, and the date when the customers follow-up should be done. The second thing is that information should be accessed by all the employees in an organization and thus software is important because it will assist in recording, sorting, and sharing information. A company is also required to differentiate itself from the competitors so that the customer can know the difference between the products offered from those of the competitors. A company can achieve this by clearly showing the value they can offer to their customers so that the customers can choose them and leave the competitors. Another area of improvement is on building every customers profile (Peelen 2005). This will help a marketer to know whether these customers are worth transacting business with them and also to know whether the company is meeting their expectations and at the same time earning profits as well.

It is also important to describe the best customers by looking at their lifestyle, demographic issues, and what the company does to retain them and also look at other ways of retaining them. Since acquiring a new customer is more expensive than retaining an existing one, then the company should ensure that the existing customers appreciate the companys products and services to create their loyalty and thus retain them. Customer complaints should be analyzed and solved. The people concerned should be informed about complaints and should be trained so that the same problem does not occur in the future. Finally, customer contact points in a company should be installed so that the customer will feel appreciated which will help in building his loyalty.

Business to business relationship

The business-to-business relationship has been very successful in the application of customer relationship management. Inter organization relationships are created by trust and commitment because marketing to other organizations requires a great understanding of the customers business processes and value creation process. Several people are involved in making a purchasing decision for a business customer and thus a good relationship needs to be established to win the trust and their loyalty. Business-to-business relationship marketing results in better relationships, commitment and trust, cooperation, satisfaction with the relationship, and better relationship policies and practices (Bruhn 2003).

Businesses should always aim at proving the business customers with what they ask for. Businesses need to clearly understand the needs and want of these customers to offer and satisfy their needs as per their expectations. A business relationship helps the company to offer what the customer wants. Business-to-business relationships are created along with groups and are meant to increase the companys capital.

A company should give enough information to these groups or the business customers to convince them to buy the products. These customers want something to satisfy their needs and thus the company should work towards meeting these needs.

Building relationship marketing in an organization

Relationship marketing helps a company to have a competitive edge in the market, it adds value and also enhances the brand. For a company to achieve this, it should apply some strategies which include:

Communicating frequently

An organization needs to keep in contact with the customers either through a phone call or a visit. This will help in updating the customers on the companys new improvements on the product or service provision. The customer will feel valued by the company and thus will be loyal to the companys products. On the other hand, the company will cut down its operating cost because it will be cheaper to retain a customer than attract a new one. The customers loyalty will lead to the companys profitability because the customer will be ready to purchase a product at a premium price and also due to repeat purchases (Peelen 2005).

Enhancing customer service

When a company has good customer service it can add value and have an edge in the competitive market. A company should have an online customer service that will be assisting the customers in case of any uncertainties or problems. This service will help in retaining the existing customers and also attracting more new customers due to the word of mouth by the existing customers about the good reputation of the business. The companys sales will also increase because of repeat purchases and also due to new purchases by new customers.

Visiting the customers

To build a good relationship with the customer, it is important for the businesses, especially those selling to business customers to go and visit them rather than just doing the usual sale calls and the off-shelf marketing tools. This will help one to understand the challenges that the customers go through and thus come up with strategies to help them overcome those challenges (Bruhn 2003).

Building two-way communication

The company should seek to have feedback from the customers to know how they perceive the companys products or services. This interaction can be created through electronic newsletters, websites, online messages, and online surveys. This creates a rapport between the company and the customer and more so the customer feels valued because he has been allowed to air campaigns or compliments.

Holding special events

A company should hold a special event with the customers to create interaction between the customers and the companys staff. This is important because the customers will be free to express their feelings about the companys products or services and also will be loyal to the company due to this special kind of treatment. The company will also be in a position to understand the customers needs properly and also have an edge in the market due to the customers loyalty which it will gain. This special event can be either a summertime pool party, golf outing sponsored by the company, or even an early fall barbecue (Peelen 2005).

Offering customer rewards

This strategy works well for most businesses and the more a customer spends the more the rewards. This strategy helps a company to reward its best customers who are very profitable and at the same time eliminates the customers who are brand switchers (Bruhn 2003).

Conclusion

Marketing is experiencing a paradigm shift from its usual marketing mix to relationship marketing which aims at creating shareholders value and also makes a business gain a competitive end. Communication is very important because it helps a company to achieve a good relationship with the customer. This article has comprehensively explained the importance of relationship marketing in a business and how to build it. It has also looked at customer relationship management (CRM) in an organization and how it creates customer value. The business-to-business relationship is also important and has also been featured in this article.

Reference list

Bruhn, M. (2003) Relationship marketing: management of most custom relationships. Chicago: Financial Times Prentice Hall.

Peelen, E. (2005) Customer relationship management. Chicago: Financial Times Prentice-Hall.

The Starbucks Firms Value Proposition Marketing

Introduction

An affiliations ability to compete in the marketplace assures its long-term prosperity. The generation and dissemination of value for the consumer are both influenced by a companys economic position. This investigation concentrates on Starbucks and how it has been able to give its clients value proposition for its product. With only 40 franchisees, Starbucks oversees the bulk of its locations to maintain strict quality control (Kee et al., 2021).

The cornerstone of Starbucks achievement is its unique business approach. They deliver their guests the finest coffee they can produce domestically, with a significant emphasis on having a constructive humanitarian impact on the globe and in settings that offer a warm and welcoming atmosphere where everyone feels at peace (Wakeland, 2018). The theoretical marketing approach used to study Starbuckss marketing strategy in this work is their ambient customer relations and implementation of cross-cultural initiatives. This research will clarify how value proposition marketing has proved essential for Starbucks.

Since client demands and requirements continually shift, it takes a lot of work to attract customers in a highly dynamic industry. Consumer behavior and attitude are multidimensional in todays society. Consumer participation in organizational operations has increased significantly, and even the users position has changed from receptive to engaged (Otsuka, 2021). Before committing, the customer gains knowledge and decides what they desire regarding a tremendous value-added service.

Physical and societal inequalities have generally vanished due to the modern client being typically much more educated, for example, via the proactive use of knowledge and data technology, which causes these occurrences. An institutions ability to produce distinctive recognized value to its customers and convey this value using advertising interaction tools becomes a determining factor in the value of an organization. Because of this, modern marketing depends on a systematic strategy that can be adjusted to suit customers demands. Due to increased customer market dominance, organizational struggle, and customers clearer needs, value development for the customer has become more crucial.

Establishing value propositions within the process of creating value for the intended audience is essential, say academics, to implement a valuation strategy for advertising. The outcomes of producing customer value are the construction of a quality proposal and its presentation, which define the commodity or services customers desire to purchase and allow the company to satisfy this projected need. The business and the customer interchange reflects this activity, fostering reciprocal dialogue. The capacity to define worth with a thorough understanding of user demands and the comparative appeal of various market categories are critical factors in building a compelling value offer. The company may then work to produce and eventually supply the value and make the customer understand it.

Because of this, value products for the customer are essential and frequently assessed through the elements considered customer value, which might change based on the topic, and the cases chosen. Consumer-acknowledged value has been studied in the study journals as a component of worth generating for the buyer since the final assessment essentially relates to the viewed benefits the user enjoys from a good or service. To satisfy the client and grasp his needs, it is crucial to assess the grade of the provided good or service by providing a structured examination of the factors of economic relevance.

Starbucks was capable of providing the best product possible by maintaining as much authority over its manufacturing and transportation networks as possible. The business cooperated closely with the many producers and upheld strict coffee specifications (Fahad et al., 2019). As a result, they could buy green espresso seeds and roast them, following Starbucks requirements. To achieve this, the firm urged its collaborators to cultivate a close relationship with clients. This would include creating eye contact, beaming, conversing with clients, mastering the names of frequent clients, and abiding by the Just Say Sure policy, which obligated stakeholders to go above and beyond corporate directives to appease buyers. Starbucks cultivated a setting that altered peoples perceptions of coffee shops as somewhere to buy a cup of beverage.

Each Starbucks location was given a welcoming atmosphere that enticed visitors to remain and mingle. The goal of Schultz was to create a third space for individuals to go after work and residence where they could unwind and socialize. Starbucks approach strongly emphasized worker happiness because corporate administration firmly felt that satisfied workers produced happier clients. Because of this concept, the company paid its workers more than the average salary for the sector and provided stock opportunities and health coverage privileges. Furthermore, Starbucks promoted employees from inside the business. Starbucks value proposition was intriguing because it prioritized offering outstanding customer care and focusing on customer happiness in all other areas.

During this time, Starbucks established a reputation for providing excellent user care and fostering a welcoming setting centered on coffee pleasure. The initial Starbucks business statement still needs to be relevant in 2022. Starbucks allegedly moved its attention from its customers to brand marketing and introducing new items. Starbuckss customer approval scores have fallen due to the companys failure to utilize the data acquired to inform decisions. Evidence from studies demonstrates Starbucks substantial expansion between 1999 and 2005. With this expansion, Starbucks forgot about its shifting consumer base. The Starbucks client base was evolving. Its clientele was no longer limited to wealthy, trained white-collar workers, but also individuals from low income-or with less education.

The existing consumer base continued to attend the locations more regularly, but the emerging client base had a distinct impression of the Starbucks business. Furthermore, due to its expansion approach, Starbucks needed to have noticed its capacity to convey its beliefs to its consumers. Be aware that around 2001 to 2004, more consumers believed that Starbucks primary concerns were generating cash and opening more outlets. The survey group made this finding at Starbucks. This is a sign that the business needs to remember the elements that make up its competitive offer. Client care was a significant part of the brands value offer, but by 2003, the study team found that the company needed to catch up in objectives concerning client pleasure.

Clients of Starbucks have grown attached to drinking high-quality coffee, and switching to the general market would diminish the worth of the companys reputation. Starbucks would have little influence over the composition of its coffee in a free marketplace. This would undoubtedly conflict with their service proposition, which centers on delivering an enjoyable coffee encounter. Furthermore, in public markets, many manufacturers produce coffee using various methods, culminating in multiple goods with different qualities and characteristics. Starbucks can cultivate its beans, hand pick them, and make them directly, giving them complete influence over the manufacturing procedure.

Theoretical Framework

Any international firm must follow several steps while developing an overseas advertising plan. It is clear that some businesses have attempted to implement global advertising, yet they need to catch up. Market analysis and taking into account the four Ps of promotion are two key ideas in the international business plan. The commodity, pricing, venue and marketing aspects are essential. When a corporation adopts a worldwide promotional approach, market evaluation is a brand-new aspect that involves several other variables. The first step in the commercial evaluation process is the baseline assessment of the clients needs in the easily accessible marketplace. The nations that a firms goods or solutions may most effectively serve must be listed at this stage.

Organizations that benefit the most from the commodities or services are chosen, as the entire community can be the focus. According to the financial and socioeconomic aspects of distinct market sectors, the inventory created in the first phase of the industry evaluation is reduced in the next half (Field, 2019). The main monetary elements that could need to be implemented include the countrys current mortgage levels, commodity prices, and other banking practices. Economic variables include the size, strength, and expansion possibilities of a specific marketplace sector. An institution might remove antagonistic nations from the initial list using this study. Identifying the legal and financial elements of the left-leaning governments in the second phase entails the firm in concern researching the list.

This is important because it is desirable to ensure that a nations legal system will respect the interests of businesses. Any business that intended to operate in a country with Irans level of sociopolitical unrest would be making a severe error. The future countrys sociopolitical factors are considered in the fourth phase. The development and management of the company would be significantly impacted by the ethical and social norms of the nation. Determining what is permitted and what is not might be a good idea. For example, caffeine, a key ingredient in coffee, is prohibited by several religious views. There could be no reason to expand the coffee trade in a nation where such ideology is prevalent.

The corporation would only have a selection of two or many nations to enter at this stage of marketplace evaluation. Economic relations with other countries would be necessary at this point. This choice relies on the firms regulations; some people could choose an area with less rivalry, while others would prefer one with a fierce rivalry. For instance, there are prospective clients for the items when many businesses provide breakfast-related items. As a result, another firm may expand its product line there. Making a field trip to the selected nations to conduct a realistic assessment is the last stage in the business analysis process.

The advertising strategy might vary depending on the goods or the desired target market. Some items may not need any alteration, while others may need to be changed to satisfy the buyers needs. For example, a firm that makes pens doesnt need any changes. Nevertheless, certain goods must be altered following national laws and culture. For illustration, rolling gum manufacturers often package their products in packs of 9 to 25 pieces for their lucrative American market.

To meet client demands, the number of components packaged might increase to five in nations with little spending power. According to a country, the advertising plan also employs a particular move. The majority of transnational corporations utilize advertising to market their merchandise abroad. A corporation may choose from various promotional strategies based on the commodities or solutions. Comparable items may use equivalent advertising phrases, or they may use distinct taglines for similar products. Specific items may have different marketing slogans, or a corporation may use the exact promotional phrase for all its products.

Along with other variables, monetization strategies are influenced by several legal and governmental influences. International businesses must always present their items where clients find the most convenient. The usage of marketing networks ought to make it easier for clients to buy a good or a resource at a reasonable cost. Based on the consumers capacity to pay, the choice of the packages dissemination method should also be considered.

Analysis-application of Theory to Evidence

Most businesses have been inspired to succeed by Starbuckss promotional technique. This firm serves as a role template for other international corporations thanks to its heritage and rapid development. The corporation expanded from a storefront in the 1980s to a vast dominion in the Us and other nations. Since it began as a modest firm, Starbucks has been an inspiration for several companies of various sizes worldwide. Many management institutions have examined Starbuckss distinctive marketing technique to understand how such tactics perform. Due to the industrys employment of unusual tactics, the worldwide marketing approach is known as unique. Starbucks does not advertise its goods in newspapers, journals, or advertisements. Most prominent, well-known businesses employ these strategies to market their goods. Starbucks decided to use unique means to advertise its items both locally and abroad, according to the economic study it did. Starbucks uses various effective marketing techniques to market its coffee, with excellent cup of coffee being one of them.

This phrase places a strong emphasis on the manufacturers excellence. The business has made an effort to offer clients a good product, notwithstanding the high pricing of its espresso. Starbucks cappuccino is a high-quality beverage with an irresistible fragrance and scent. Another method is called second place, and it has been the emphasis of the companys advertising approach from the start to provide users with a 3rd option beyond jobs and their homes. Most clients were drawn to this tactic by its distinctive and pleasant encounter. Clients appear to like the industrys strong attachment to the runner-up notion. Starbucks has also made significant investments to guarantee consumer pleasure. Consumers are created to feel fabulous from the moment they enter the store until the last sip of their cappuccino.

The business has also developed a brand-centered ecosystem and corporate culture. Consumers can share their Starbucks views on their webpage, which helps to create this. To guarantee that consumers feel taken care of by the business, the firm, in turn, participates in consumer feedback. Starbucks has entered several nations through clever alliances and prospered commercially. The corporation has increased revenue in most of its outlets thanks to this method. This was a glaring example of how even successful companies require help to meet their objectives. When Starbucks and the American Noble and Barnes bookshop teamed together, this tactic started in 1997 (Ashton, 2018). The primary goal of this collaboration was to make sure that clients of bookstores could purchase its items. Starbucks and the Canadian Bookshop Group worked together in 1997 for the same business development goal.

Additionally, the corporation continued working with Pepsi Corporation in 1995 to create a North US Coffee Association business. In addition to numerous other partnerships, the +business has worked with Hilton Worldwide Corp (Armenta, 2017). to guarantee that its clients obtain the most incredible goods at the appropriate time. Starbucks accomplished its objectives, explored new regions, and broadened its revenue base using a cooperation model. Organizations that collaborate and share financial concerns can quickly meet their goals. Starbucks has consistently updated its goods and services to satisfy client needs using original and inventive concepts. For example, the corporation added additional meals to its inventory and diverse tastes to its cappuccino. Additionally, The company was one of the first to make Internet access available in its outlets.

Brand promotion is yet another essential tactic employed by Starbucks. This requires relying on word-of-mouth advertising and allowing the exceptional qualities of its goods and offerings to stand for its own. The firms distinctive marketing tactics have contributed to its present prominence. Starbucks has also used various income streams as part of its global marketing initiatives. The business knows the dangers of having all its assets in one place. Data monitoring estimates that 65% of Starbucks 2002 sales comprised drinks, 10% food items, 9% coffee grinds, and 5% coffee-making equipment (Bailey, 2020). The business is still planning to look for further opportunities in the networks where its commodities are distributed.

Starbucks typically runs most of its shops as part of the typical retail corporate model. However, it has adopted elements of the franchising approach into its plan in to profit on the growth while maintaining governance of its operations throughout its strategic plan, since growing regions are becoming an appealing terrain for entrepreneurs. Additionally, the company doesnt do traditional advertising campaigns. Instead, Starbucks focuses on improving its assessed value by providing high-quality products and operations. Since a typical consumer can make averagely six visits per month, the business decides to concentrate on providing a constant service for its devoted clients and, due to that, they attract more consumers.

The number of Starbucks delivery stations rose from 15000 to 43200 in 2008. These retailers were marketing their goods, including Walmart, Costco, and many food shops. Their capacity to serve as many consumers as feasible was enhanced by the roughly 60% rise in the number of locations (Pilarczyk, 2022). The opening of additional retail locations and the growth in the current locations cash flow contributed to the firms enhanced competitiveness. New retailers opening up coincided with other items entering the market. The firm expanded its stores in 2006, and as a result, its net sales climbed to $6, 350,300 from $9,294,500 in 2006 (Ratton & Spers, 2020).

Starbucks creates a lot of content, however it is divided up into multiple smaller parts and reused in other mediums. The content on each digital media platform is determined by the statistics of its members. The vocabulary is clear, understandable, and uncomplicated. Twitter uses short form, so despite the description being shorter, it continues to have the same distinctive feel. Additionally, patrons are encouraged to snap pictures of their Starbucks cups and post them on public networks. Additionally, Starbucks frequently holds social media campaigns and tournaments, awarding likes, tweets, and retweets.

The background of Starbucks demonstrates the variety of ways via which its commodities are distributed. The business uses a distinctive approach to connect with and serve clients wherever they areat work, on the go, and even in restaurants(Tom Platts-Mills, 2021). This has been made feasible by including qualified third companies aware of StarBucks more excellent value and dedication to excellence. For example, Starbucks provided entire bean and powdered coffee to businesses, cafes, and even medical institutions with the aid of culinary service firms.

For illustration, it was clear from the corporations fiscal records that it had over 5400 food business contracts in 2002, providing more than 40% of its total sales (Ghose, 2017). This was a blatant demonstration of how outside businesses help a business connect with its clients. The company has gone above and beyond to ensure that its items are delivered to the target clients in the ideal setting and state. With numerous shops, Starbucks has expanded into more than sixty nations (Boido, 2018).

The business has also started selling its items digitally so clients can buy them whenever and wherever they choose. For consumers who are often occupied, this has dramatically increased efficiency. Additionally, they frequently concentrate their stores at one location to better contact the clients. It is well known that Starbucks advertises its goods both domestically and abroad. They have announced their high-quality goods through various marketing options to attract consumers. To increase client business loyalty, they frequently run promotions for their goods that allow individuals to try their caffeine.

The primary subject of Starbucks 40th-anniversary celebration in 2009 was to support the growth of its corporate reputation. The business unveiled new designs for grocery bags, coffee mugs, and cup carriers. The company also made a fresh coffee mix, devotion, available to consumers around this time. All of these updates to their items were made to guarantee the ongoing improvement of their corporate image (Vaidhyanathan, 2017).

The original brand was distinguished by a vivid green hue that reflected the items vitality. For its goods, the corporation wished to illustrate the process of development. Re-energizing their clients, both old and prospective, was the critical focus. Buyers approval and comprehension are essential factors that must be considered first. The modification could also serve as a barrier to expanding the product range since they risk alienating potential new clients who might need to be more acquainted with the business.

Conclusion

In conclusion, Starbuckss administration has worked to ensure that the firms most important goals are met. The business urgently needed to increase its viability in Japan. This is planned to be accomplished by raising its number of stores to 1010 in 2008 (Barnes, 2005). The company hit this mark, and ultimately, its revenue rose. The management of its competitive challenges was another significant concern.

Large corporations like Creamer, Nestlé, Global Oats, and Nestlé have been fierce competitors for the firm (Ryan Cross, 2020). Starbucks has competed successfully because of its distinctive worldwide advertising tactics. To attract as many people as practicable, Starbucks has constantly looked ahead to expanding the exposure of its advertisements. This became feasible when the corporation started communicating with its consumers internet. The business may reach a larger market via internet marketing. While it has taken part in extensive investigation and improvement projects, there is still much to learn about the likes and inclinations of the native clients. Greater consumer comprehension would result in improved offerings, which would grow the client base and revenue.

References

Armenta, A. (2017). Protect, serve, and deport: The rise of policing as immigration enforcement. CrimRxiv. Web.

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Persuasive Business Messages for Product Marketing

Introduction

Marketing a new product is often associated with significant risks as the product can be unpopular or even go unnoticed, the target audience can remain indifferent to it, and so on. However, the benefits of developing and marketing new products are also unquestionable as the ability to market them has become a competitive advantage for successful businesses (Smith & Stewart, 2014). This organization has invested in various projects that have become real hits, and new eco-friendly sports bottles can also become one of these success stories.

The production of this kind of bottle is quite a new direction the company can choose to win new markets. Goyal and Bansal (2017) argue that multinationals are becoming digital eco companies that pay attention (or even focus) on sustainable practices, which helps them develop a favorable image, increase sales, and even reduce costs.

Becoming a Digital Eco Company and Its Benefits

The investment in the development of the new product will make this organization a digital eco company. Goyal and Bansal (2017) note that these businesses are characterized by the use of various sustainable practices, including (but not confined to) using fewer resources, utilizing organic products, recycling, improving supply chain and waste management, and so on. Importantly, these organizations pay much attention to communicating their achievements to the public to develop a favorable image. For instance, such companies as Nike and British petroleum invest substantial funds in becoming digital eco companies, and they manage to attract more customers worldwide.

This organization can benefit from becoming a digital eco company. The production of eco-friendly sports bottles will become a manifestation of the companys intention to make a difference and be a responsible corporate citizen. Western customers are becoming quite sensitive when it comes to environmental issues, which makes eco-friendly products very popular (Li, 2016). Smith and Stewart (2014) also note that the number of sport consumers is also on the rise, which contributes to the development of the market.

The product in question will not be confined to this group as many people will be eager to pertain to the world of sports and healthy lifestyles, at least, at some periods of their time. Since western culture has a considerable influence on various countries, these trends are becoming global. The modern mass media (especially social media) have become a potent tool in popularizing being sporty and eco-friendly. The mix of these two major global trends makes eco-friendly sports bottles a hit and even the first one of its kind.

Areas of Concern

It is noteworthy that the attitude towards environmental challenges varies in different parts of the world. For instance, Li (2016) explores the differences and similarities between the two major markets in the world. The Chinese and American consumer markets are leading and are estimated to remain top markets in the near future. Many companies, including this organization, try to operate successfully in these two markets as the Chinese market is also regarded as a gateway to a larger Asian market.

As far as the focus on sports and healthy lifestyles, Chinese customers are becoming similar to Americans who try to be healthy and sporty. Importantly, Chinese people are willing to accept western leagues and associations, as well as games and practices (Smith & Stewart, 2014). Chinese customers (especially high and middle classes) also tend to develop a significant degree of loyalty to various western sports brands.

However, when it comes to environmental responsibility, the consumer attitude differs in the two regions. Notably, even Americans (and the rest of the western consumer market) are not completely environmentally responsible. For instance, Atkinson and Kim (2015) examine American females attitudes towards eco-friendly products with the focus on the plastic bottle used for Ozarka Natural Spring Water.

The authors stress that the associated product (bottled water) is mainly viewed as very environmentally unfriendly. Women note that they find environmental issues important and are willing to consume eco-friendly products, however, they display quite a different consumer behavior. For instance, they buy bottled water but view the companys message concerning its environmentally sustainable practices rather misleading and vague.

As far as the Chinese market is concerned, the challenges are even more apparent. Li (2016) stresses that although Chinese people are aware of environmental issues, they do not see themselves as responsible for these problems. Chinese consumers are willing to buy high-quality and (in many cases) popular and prestigious products, but they are not willing to buy eco-friendly products, especially if there are cheaper items.

This attitude is a result of culture, economic situation, political agenda, etc. Nevertheless, the Chinese government is trying to address this issue and change peoples perspectives. The major message is concerned with making Chinese society truly harmonious. Furthermore, it is important to invest in making these customers aware of the existing environmental hazards and possible ways to address them (including eco-friendly sports bottles).

Actions to Undertake

Communication Channels

The challenges mentioned above bring to the fore the need to use effective marketing strategies to introduce the new product. First, it is essential to use the most efficient communication channels. Social media have become a platform for global information sharing. It is unnecessary to use such mass media as television as it is quite expensive, and the number of social media users among the target audience (youth, adults, and younger adults) is increasing exponentially (Smith & Stewart, 2014).

Facebook will be the primary social network used to promote the product. The official website of the company (as well as its Facebook account) will also include links to blogs devoted to environmental sustainability, bottled water, and, of course, the new eco-friendly bottle. The company will be able to obtain feedback immediately and respond to its customers needs, concerns, complaints, and so on.

Messages to Communicate

Apart from the effective communication channel, it is vital to choose the most appealing messages. These messages will differ depending on the region where the bottles will be sold. For instance, western customers may be more willing to buy eco-friendly bottles if they believe in the environmental benefit for the planet (Li, 2016). Therefore, it can be effective to concentrate on specific features that reduce the products environmental footprint.

It can be necessary to admit that bottled water is not a very eco-friendly product, but it has already become a necessity due to various reasons (scarcity of safe drinking water in many regions, the products convenience, and affordability). When it comes to the Asian market, the company should persuade consumers that the new product will make their society truly harmonious (Li, 2016). Such benefits of the product as its price, prestige, and relevance for healthy lifestyles should also be highlighted.

Credibility

It is also important to make sure that a corresponding customer support service should be in place. The service will be in the closest contact with customers responding to their questions concerning the eco-friendliness of the product, possible refunds, and the like (Smith & Stewart, 2014). Customers should always be able to talk to a representative of the company as it will create the necessary rapport.

Investments Allocation

It is crucial to make sure that the product is of high-quality and can be delivered to customers in a timely manner. However, it is equally important to make sure that the research related to sustainable practices is continuous. The product should constantly evolve, becoming more sustainable and attractive to potential customers. The investment may increase in the course of the products maturation.

Conclusion

In conclusion, it is necessary to note that the company can benefit from the development of eco-friendly sports bottles as they resonate with the existing trends in society. Modern consumers are becoming more concerned about environmental issues, and they also try to maintain a healthy lifestyle. Of course, markets in different parts of the world can have their peculiarities, which requires specific attention to cultural aspects.

The steps to undertake include using Facebook as the major communication channel and blogging, as well as investing in further research aimed at making the product even more sustainable. The new product will not only lead to larger profits for the company, but it will also contribute to the development of this organizations favorable image across the globe. People will want to learn more about eco-friendliness and ways to become more responsible environmentally. The company can become a reputable source of knowledge and products enabling people to maintain certain lifestyles.

References

Atkinson, L., & Kim, Y. (2015). I drink it anyway and I know I shouldnt: Understanding green consumers positive evaluations of norm-violating non-green products and misleading green advertising. Environmental Communication, 9(1), 37-57.

Goyal, A., & Bansal, S. (2017). Digital platforms & natural eco-digital eco strategy  top brands igniting it through environment sustainable revolution. International Education and Research Journal, 3(5), 497-504.

Li, X. (2016). Environmental advertising in China and the USA: The desire to go green. New York, NY: Routledge.

Smith, A. C. T., & Stewart, B. (2014). Introduction to sport marketing (2nd ed.). New York, NY: Routledge.