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P2@ Explain Role of Promotional Mix

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Explain the role of promotion within the marketing mix for a selected product or service. P2 Draft.
Coca-Cola
Promotion plays a very important role in an organisations success. This is because it can be heavily influenced by other elements of the marketing mix.
Products and Services
Many products and services are found to be within a product range. Coca-Cola has a range of drinks such as Coke, Diet Coke, Coke Cherry, Coke Zero etc. Coca-Cola chooses its promotion to best promote the product range, even though the products are aimed to suit different market segments, different tastes and different price expectations.
Promotion plays a key role in informing the customer of the price being charged for the product. The price of the product typically conveys a perception of quality; customers are prepared to pay more for a product that they perceive is of higher quality than other products on the market. By this, the price also creates an overall image of the company.
The company has the widest portfolio in beverage industry comprising of 3300 products. Beverages are divided into diet category, 100% fruit juices, fruit drinks, water, energy drinks, tea and coffee etc. As per Nielson’s data, Coca cola is the No.1 brand in sparkling beverages, juice, and retail packaged water in 2010. Coca cola has its market presence around 200 countries.
Price
The activity surrounding promotion often reflects the prices charged for the product. It is often the case that organisations that sell higher quality products and services spend a more on their promotion than those that sell products and services of lower quality. Coca Cola tend to be more in price compared to the likes of Pepsi, and people are prepared to pay more for this product range of Coca Cola because they are perceived as a higher quality than Pepsi.
Coca Cola will research their competitors’ prices to see…...

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