Written Summary
Question: Explaining the role of 'suppliers' in an organization's microenvironment. Discuss the impact the supplier environment might have on the marketing of soft drinks.
Definition of suppliers: Firms and individuals that provide the resources needed by the company to produce its goods and services (lecture 3, p10). This includes materials and parts, capital items, supplies and service. (Diagram 1.4)
The Role of suppliers
Suppliers play a vital role in an organization's microenvironment. The relationship between suppliers and organizations are built on a solid foundation of value. (Diagram 1.3) The growth and the vision of the organization depend heavily on the values that the suppliers can offer. The extent to which
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Impact of supplier environment on the marketing of soft drinks
Soft drink company researched- coca-cola, PepsiCo, Quakers, Frito-Lay and Tropicana.
The use of societal marketing philosophy
In the five soft drinks company researched, all of them were involved in helping Minority owned business and Woman/Women Owned Business by making them their secondary suppliers to show that they are concerned about the need and the want of the society as a whole. Their diversity of suppliers made them welcomed in all cultures and different country as well as creates an environment for the organization that attracts better public reputation and favorable publicity.
Impact of supplier environment on the marketing of soft drinks
According to the marketing philosophy, the organization always has to try to satisfy the needs and the wants of its customer. But without the contribution of suppliers to improve and supply what's required by the organization to provide its good and services, it would be certain that the organization will not be able to satisfy the needs and wants of costumers.
A good supplier environment can help the business to perform better and achieve more. There are few factors that need to be considered for a good supplier environment. In a soft drinks company, the company need to make sure that product, pricing and costumer service of supplier are high in standard. These factors
A supplier who has a good connection preserved with Asda will be able to appreciate the specific requests and necessities
Suppliers want steady orders and prompt payment, they also want to feel valued by the company that they supply.
Discuss how online marketing could provide competitive advantages in the industry you analyzed in question A.
This is important as the selling organization can know how to improve the demand for their products through promotion promoting the demand for the others organization’s products. This can be achieved by either selling quality products to the other organizations that will ensure that they produce standard products or services that meet the customers’ needs or even coming up with mechanisms to promote the demand for the other companies’ products. For example advertising for the other companies’ products, carrying out the market research for the other organizations or any other activity to boost the sales (Antonelli,
Bargaining Power of Suppliers: A producing industry requires raw materials - labour, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits. Tesco maintains direct professional business relationships with all their suppliers of organic food and non-food product worldwide. They also conduct supplier viewpoint surveys to find out what their suppliers think of Tesco.
The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. If there is a market with much choice supplier choice, bargaining power will be less.
When you’re choosing a supplier, you’re not just choosing a particular product, but the people who push that product as well. Issues or late shipments are inevitable, but when those things happen, you want to feel confident that you’re working with professionals that will solve things quickly.
Individual Assignment 1: Using a company that you are familiar with, explain how factors in the external business environment influence marketing strategies and outcomes
Traditionally, soft drinks in the United States have relied heavily upon advertising and promotion, both at a local and national level. At the top of the supply chain, the concentrators (Coca-Cola, Pepsi-Cola) were in a way the home office. The concentrators were in charge of developing new products, marketing research for new and existing products, developing and executing national advertising campaigns, and coordinated the overall marketing
Unlike traditional supplier/buyer relationships that had a narrow focus, contemporarily such relationships are becoming more strategic thereby yielding adequate reduction of risk and good technological leverage etc. It should be recognized that this relationship is the most powerful process of consumer satisfaction.
When customers seek for a specific product or service, they obviously want the company to be responsible and well organized. A customer wants to be able to trust the company in which the company delivers everything correctly and the way the costumer wants. When all the customer wants and needs are met, the customer will be to determine which company fits best.
To be successful in business, "a consumer does not buy a whole of physical components of the product but it is usefulness, function, satisfaction of consumer's needs, solving the problem, etc" (Dubrouski, , p.1). "That is why the product is a whole of tangible and intangible components which means satisfaction of consumer's needs and desires, solving the problem"(Dubrouski, p.1). Companies and managers must learn to utilize marketing research, as well as, strategy skills to fulfill customers' satisfaction. Management has to focus on exclusive marketing challenges presented by the new era of the 21st century. Management has to be able to utilize inventive, dominant, and cost effective marketing techniques that will support the future success of the organization. Companies must meet,"the increasing importance of services as part of a product (offer, offering package) which cannot be neglected" (Dubrouski, p.1). Exploring the purpose of market research, as well as, evaluating the importance of such research, facilitates managers in realizing the importance of marketing to an organization's success and to be globally competitive.
For an organization to beat the competition, they need to understand what the consumer wants. Marketing concepts are based upon consideration on what the organization’s customers need and nourishing these needs better than the
When the power of suppliers high, the snacks industries will be less attractive. For example, when the supplier can suppress the high profitability of the snacks industry to what they sell by raising the price of the product or reducing the quality of the product, it would affect the performance of the snacks industry. Those factor would give an impact to the industry are suppliers concentration, threat of forward integration, switching cost and so on.
A supplier group have even more power over an industry if it is dominated by a few companies, there are no substitute products, the industry is not an important consumer for the suppliers, their product is essential to the industry, the supplier differs costs, and forward integration potential of the supplier group exists. Labor supply can also influence the position of the suppliers. These factors are generally out of the control of the industry or company but strategy can alter the power of