MKT 305 Mid-Term Written Assignment All students are required to review Chapter 10 Powerpoint and specifically at slides XXXXXXXXXXChose one of the companies off the three slides to complete your...

COMMUNICATION AND ADVERTISING STRATEGIES
Executive Summary
The purpose of this study is to examine the impact of price as a part of marketing mix variables of soft drink products manufactured and offered by Coca-Cola in relation to global sales performance. The report explores the concepts and business terminologies like perceived consumer value, competition and pricing, role of cost in pricing, various pricing tactics, communication theory and model of integrated marketing communication. In addition to this, the report lays out the relevance of internet pricing in today’s era of cut-throat competition and how Coca-Cola has adopted internet pricing to accelerate sale and promote business expansion.
Introduction
For Coca-Cola the beverage landscape is more holistic than ever with multifarious offerings fitting every walk of life. However, many of the younger demographic, particularly millennials and Gen Z categories have fallen out of favour with soda brands. This discussion aims to delve deep into the communication, marketing and advertising strategies used by Coca-Cola and how effective and competent those have been so far.
1. Describe perceived customer value
As the subjective name itself suggests, perceived value is contingent on the perceptions of the usefulness a consumer can enjoy. Hence, as stated by Reynolds and Phillips (2019), consumers pay an individually determined (subject to change any time) price for a product which along with consumer surplus (must be greater than zero) give us exchange value.
According to Melton, Damron and Vernon (2017), a sense of exploitation of basic human rights and privacy invasion for profit through utilisation of toxic, hazardous and life-threatening ingredients are triggering health-conscious people raise question on transparency, ethics and positive social contribution of soda brands like Coca-Cola. More intensive promotions for healthy products like Odwalla, Dasani and Vitamin Water should be done. This way customer trust can be gained back which would trigger a subsequent rise in perceived use value and exchange value.
2. Discuss competition and pricing.
The demand for soft drinks manufactured by Coca-Cola is relatively price-elastic. In other words, the demand falls to a greater degree as the price goes up, relative to the change in income. Similarly, as opined by Kayaba, Boyraz and Derdiyok (2017), it is also income-elastic which means the demand for soft drinks lowers as income of the customers lower, relative to a change in income level. Despite wide distribution network giving Coca-Cola significant pricing power, the intense competition keeps the prices stable for carbonated soft drinks. However, each sub-brand, market and geographic segment of Coca-Cola has different pricing strategy. Hence, target costing becomes more effective for Coca-Cola than cost-plus pricing. In case of the former, at the developmental stage, it can fix ideal selling price for target group of customers instead of determining product features first and then roll out the required product adhering by the cost.
3. Explain the role of cost in pricing.
A proper expertise pricing strategy can guarantee to cover costs though it may discourage cost containment and efficiency. If Coca-Cola quotes a lower cost, it consequently earns a lower revenue and thus a lower total profit. Contrarily, as inferred by Sharman, Larkin, Fernandez and Esteves (2019), a bloated...