4. External agencies can provide valuable marketing services to marketing organizations. Under what circumstances do you
that a marketing organization might seek the services of an external
agency like a distributor? A marketing research supplier? An advertising agency? A materials
supplier?
5. Comment on the impact that the decline of mass marketing might have on marketing strategists for companies that have typically mass marketed products.
6. How should a marketing organization define its competition?
7. What role do plice competition and discount promotions play in
marketing of
Do
you think that the use of these strategies has been effective from [he standpoint of organizations?
8. Briefly describe the impact that
of the following has on marketing activ ity: regulators, the
economy, and technology.
PROJECT
Since Pathfinder touched down on Mars, much has been learned about the
Planet.
did you
know that sales of MatteI's Hot Wheels Mars Rover Action Pack skyrocketed and that sales of Mars bars increased dramatically?
The activities of the National Aeronautics and Space Administration (NASA) from Alan
ard's first space flight to today's Pathfinder have spawned many new products and spuLTed the sales of many products. Track key NASA events, like landing on the moon, and see which products' sales were boosted by some of these events. Also, discover what new products entered into the marketplace as a result of developments in space technology.
CASE APPLICATION
is in a financial funk.
Clearly Canadian is in a sales free-fall.
Results are mixed for Pepsi's juice line.
Coca-Cola's Fruitopia is off to a slow start.
These could have been headlines for these
Age beverages. They do accurately describe their
performance. At the same time, "plain
carbonated beverages were making a comeback after years
of flat sales.
One reason cited for these results
the fading intensity of America's health kick. Consumers
scem to have grow n weary of sipping "all-natural" teas and juices. Many have returned to chuggi ng sweet, fizzy colas. A second reason, according to taste researchers, is that people quickly get tired of the taste of distinctive juices and unusual teas . According to one industry expert, a third reason is that many consumers got caught up in the mystical, good-for-you, Generation X phenomenon . The phenomenon was cute and in teresti ng for a while, but had no staying power,
A fourth reason cited for waning consumer interests is in consumer perceplions. Originally,
many
believe that all-natural sodas,
and juices were healthier than brown
How-
ever, it has been discovered that many of these alternative beverages contain more sugar than do traditional colas.
Finally, the new generation of soft drinks has not pleased bottlers . Many bottlers spend mil-
lions of dollars to overhaul their product lines or change their distribution systems to accommodate the new soft dlinks. Despite the many new products,
Age beverages have resulted in only small
sales increases.
REFERENCES
125
Sales of these alternative beverages are still growing, reaching a level of $5.36 billion in 1999.
In that same year, the soft drink industry had total sales of about $51 billion.
Some industry experts are predicting an industry shakeout. Their reasoning is that New Age
beverage sales are driven by trendy young consumers who are constantly seeking the latest drink.
Tapping into this young generation, over 100 companies introduced a New Age beverage into the
marketplace.
Questions:
1. Describe the external factors that have an impact on the soft drink industry.
2. How would you assess the competitive situation in the soft drink industry?
3. What marketing strategies might be appropriate for soft drink marketers in order to improve
sales of New Age
REFERENC ES
1. Subhash C. Jain, Marketing Planning and Strategy, South-Western
6. Oscar Suris, "Electric Cars Also Pollute Air, EPA Study Says," The
Publishing Co., Cincinnati, OH, 1981, p. 67.
Wall Street Journal, (AprilS, 1994), BI , B8.
2. Robert H. Malott, 1981 ,
Overdose of Lawsuits," excerpts from
7. Peter Francese, "America At Mid-Decade," American Demographics,
a speech in Friendly Exchange, August, 27-28.
Feb, 1995, pp. 12-31.
3. Witcher, S. Karene,
Driving Tip From Down Under: Keep Those
8. Laurie Freeman,
Tricking the Media-Savvy," Advertising Age,
Roos Off the Bullbar," The Wall Street Journal, (July 14, 1994), BI.
Feb 6, 1995, p. 30.
4. Robert 1. Samuelson, "The Joy of Deregulation," Newsweek, (Feb-
9. "The Power to Create Competit ive Advantage," Roper Starch World·
ruary 3, 1997), p. 39.
wide, 2000.
5. Alan R. Andreasen "Socia l Marketing: It's Definition and Domain ,"
Journal of Public Policy & Marketing, Vol. 13(1 ), Spring 1994,
108-114.
