MMIP CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET COVERAGE 1
MMIP – CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET
COVERAGE
Liberty University
MMIP CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET COVERAGE 2
Q1. Describe and discuss the cultural, social, personal, and psychological factors that
influence the purchase of the product/service.
Consumer behavior has been very important to all branded companies all over the world,
because research about consumer behavior shows the needs and wants of consumers, how
consumers think, how consumers feel. (Akkucuk & Esmaeili Nooshabadi, 2016, para. 4)
Goodrich & Mooij, (2013, pg. 4) describe that culture shows the collection of norms,
values, beliefs, custom, behavior, and tradition of one society or country. If you understand the
culture of a country, you can comprehend the behavior of the consumer in that country. Culture
is different from one society to another society or one country to another country on the behalf of
their norms, values, tradition, beliefs, custom, behavior and their thoughts (Goodrich, & Mooij,
2013, pg. 4). Coca-Cola wouldn’t sell the same product in the U.S. that it would sell in India,
because both their cultures are different.
Q2. Explain the needs that are met for each of the firm’s target markets.
Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of soft
drink beverages. Coca-Cola uses "Multi-segment" targeting strategy which means that the
company has more than one single, well-defined, market segment (Shanthiny, 2018, pg. 79). For
instance, Coca-Cola uses geographic segmentation whereas their drinks target different age
groups, ethnic groups, sexes, and lifestyles. For example, powerade, which is a sports drink
targets athletics between the ages of 13 to 27. Minute maide, targets kids and adults from 1 year
to 10 and 40 plus being very convenient to carry. It targets parents that want their children to
MMIP CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET COVERAGE 3
drink healthier drinks (Harrison-Walker, 2011, pg. 137). For the diet seekers, who don’t want to
consume many calories there’s the diet coke.
Q3. Explain how potential global markets will be evaluated for potential entry. Discuss
the most likely mode or modes of global entry.
When Coca-Cola decided to enter global market, they first had to decide what markets to
enter and how to enter. The reason Coca-Cola would enter into global markets would be to
increase its profits and customer base.
These market entry strategies that Coca-Cola uses, include foreign direct investment,
joint ventures, franchising and exporting. One can conclude that there are various issues
influencing the choice of which marketing strategy to use as an entry mode. Some issue may
include, the legal framework, risk of macroeconomic instability, loss of assets due to non-
enforceability of contracts and physical destruction caused by armed conflicts (Skorobogatova,
2016, pg. 65). It is safe to say that all market entry strategies will be confronted with various
challenges, but Coca-Cola must be successful in overcoming the challenges.
There are several ways that Coca-Cola can enter a global market, but the most likely
mode would be exporting. Exporting is defined as the sale of products and services in foreign
countries that are sourced or made in the home country (Cooper, & Kleinschmidt, 1985, pg. 37).
Exporting is an effective entry strategy for companies that are just beginning to enter a new
foreign market. It’s a low-cost, low-risk option compared to the other strategies (Cooper, &
Kleinschmidt, 1985, pg. 38).
MMIP CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET COVERAGE 4
Q4. Describe the variables (demographic, psychographic, and behavioral) used to
segment the firm’s target markets. Explain how the firm evaluates the attractiveness of
each identified market segment.
For Coca-Cola to segment its target markets, Coca-Cola needs to determine how its' cola
is perceived differently from other brands with its customers. This will be done by determining
their consumer needs and behavior toward their product. They must also consider demographics,
psychographic, and behavioral of the target markets. To accomplish this Coca-Cola must
understand who their consumers are and how these consumers perceive and use their product.
Demographics
Coca-Cola target age groups from 15 to 25 and 40 and older.
They target both male and female with a several varieties of drinks.
Income-segments different income level. For example, by packaging: for low
level income the company is selling returnable glass bottle; for high level income,
the company is selling coke in tins (Smith, & Hanover, 2016, pg.20).
Psychographics
Since Coca-Cola is a well-known brand and people are brand conscious, they will
not drink others that are now well known. People will drink Coca-Cola to show
their status.
Without hesitation people will drink Coca-Cola, because it’s a brand that’s
recognized around the world.
MMIP CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET COVERAGE 5
Coca-Cola designed many brands of beverages to satisfy the different consumer’s
needs because the same demographic group can display very different
psychographic profiles.
Q5. Should the firm pursue full market coverage, multiple segment specialization,
single-segment concentration, or individual marketing?
Full market coverage is one of the market-targeting strategies in which a company
attempts to serve all customer groups (segment) with all the products they might need (Smith, &
Hanover, 2016, pg. 22). Coca-Cola utilizes the full market coverage because they cover a whole
market through differentiated marketing. In differentiated marketing, Coca-Cola operates in
several market segments and design different products for each of those segments (Smith, &
Hanover, 2016, pg. 22). Consumer’s attitudes, activities, and interest affect the goods and
services they consume. Coca-Cola has introduced a new range of pack sizes and increasing ‘zero
sugar’ flavors across the most popular brands to give consumers greater choice while ‘on-the-go’
(Harrison-Walker, 2011, pg. 138).
MMIP CONSUMER ANALYSIS, MARKET SEGMENTATION, AND MARKET COVERAGE 6
References
Akkucuk, Ulas & Esmaeili Nooshabadi, Javad (2016). The Impact of Brands on Consumer
Buying Behavior: An Empirical Study on Smartphone Buyers. International Journal of
Research in Business and Social Science (2147-4478). 5. 1. 10.20525/ijrbs. v5i4.551.
Cooper, R., & Kleinschmidt, E., (1985). The impact of export strategy on export sales
performance. Journal of International Business Studies, 16 (1985, Spring), pp. 37-55
Goodrich, K and Mooij, M. (2013). How ‘social’ are social media? A cross-cultural comparison
of online and offline purchase decision influences: Journal of Marketing
Communications, 2013 http://dx.doi.org/10.1080/13527266.2013.797773
Harrison-Walker, L. (2011). STRATEGIC POSITIONING OF NATIONS AS BRANDS. Journal
of International Business Research, 10(2), 135-147. Retrieved from
http://ezproxy.liberty.edu/login?url=https://search-proquest-
com.ezproxy.liberty.edu/docview/886544700?accountid=12085
Shanthiny, Kanesan (2018). “Identifying Market Segments and Targets for Marketing Strategy
Plan of Coca-Cola Company In Malaysia” International Journal of Business and
Management Invention (IJBMI), vol. 07, no. 04, 2018, pp. 77–80.
Smith, K., & Hanover, D. (2016). Experiential marketing: Secrets, strategies, and success stories
from the world's greatest brands. Retrieved from https://ebookcentral-proquest-
com.ezproxy.liberty.edu
