Sales increase when the customers are satisfied. In past only the marketers used to think about the customers but now everyone thinks about the customer whether HRS department, production department or sales department etc. Companies now believe that selling to well-defined and loyal customers Is of great Importance rather than selling the products to everyone. Now organizations are of the view that true valued customers are more important than the sales. Having a strong marketing means having true and strong sales. With changing time methods of marketing has also changed.
Many ways of marketing have evolved like advertising, personal selling, direct marketing etc. And hose ways creates a good image of the company. Awareness among the customers is now observed customers In many parts of the world are now being more brand conscious rather than price. This means that for a good brand customers are ready to pay more. This shows that marketing has actually brought a big change in the modern world. Companies being market oriented company also tries to be a future oriented company rather being a past oriented company.
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Innovative products produced by the company shows that company believe in change and modernization rather than sticking to one and old methods of producing products and selling them y same old methods. Advertising uniquely also shows that how well-managed and unique a company is. People especially companies now believe in being the market leader than a follower. Let’s take an Example of Apple Company launching Phone entirely changed the perspective of smartness. Touchstones phones, mobile Internet, multimedia etc. Is actually innovation.
Apple Company competed with Its competitors and Is still giving all other mobile companies a tough time. This example shows that the company is a future oriented company and believed in change and has actually brought a change. Due to so many changes around companies now believe that being a market oriented company will most of the times bring customers and profits. Task 2 Company Introduction/Overview: Colgate Is a well known company with a long series of products having different varieties with different acceptable flavors.
Colgate is a market leader in oral and facial products. Colgate is a $10. 6 billion global multinational company functioning in hygienic. They’re products Focuses on * Oral care * Hygiene Care * Home care * Pet nutrition Colgate is delivering a Key product globally in order to increase the market adhering position, such a products are Toothbrushes, Toothpastes, Bar and liquid soap, deodorants, dishwashing detergents , household cleaner, Fabric conditioner and Pet food so that Colgate provide the hygienic product so that the consumer enjoys the healthy life.
External micro environment External micro environment includes * Customers * Suppliers * Competitors * Distributors Customers: Organization’s survival is only possible if the company’s are satisfied. Colgate Company is a well reputed brand and has customers all over the world. Users of Colgate care, oral products are in million s the company is one of the oldest brand and has gained trust of its all customers. Suppliers: Suppliers are those firms which directly affect the Company’s production. Even the companies are not self sufficient.
They do need raw material and other resources for production. And as Colgate also imports many chemicals like Fluoride from Africa etc. Required for their products production from different Countries like USA, china etc. Though the company has its own supplies, factories and laboratories still they are totally not self sufficient. Competitors: Good and well known companies re not alone in the market they always have competitors. Competitors are always trying to attract ones company customers towards their own company.
Colgate Pakistan even though is a very big company but still has its own competitors like P;G, Milliner brothers, Posted, Close up etc. Distributors: Distributors are the intermediaries between manufactures and the customers. These companies help in marketing of the company as well. Retailers and wholesalers are also the distributors of the firm. In Pakistan Colgate products are present almost everywhere, every retail store has Colgate Products. Major and minor outlets are distributors of Colgate Pakistan Products.
Macro Audit of the Firm It includes PEST which is Political, Economical, Socio and Technological. Political Factor: If the Government policies are not proper, the business is eventually affected by it. Political Situation greatly influences the company’s sale and production. Colgate Pakistan also suffered a lot due to high taxes levied by the government and due to unstable government production and sales became less in the couple of years. Economical Factor: Economic variation effects the company’s production and sales. Economic downfall according their budget and disposable income.
And as poor economic condition of the state customers only buy according to their need. Socio- Culture Factors: Before making any product the company keeps in mind the culture and social values of customers. Colgate Pakistan makes those products which are accepted by every citizen of the society. The company started making Colgate sensitive for sensitive teeth as these days’ customers mostly complained about teeth cavity so company in order to satisfy the modern need and demand of the customer the produced new and innovative products.
Company while operating in any state keenly observes the social and cultural values so that their products are accepted easily. Technological Factors: Technological factors value cannot be ignored. Advancement in the production occurs daily. Newly highly equipped laboratories and factories of Colgate is a result of technological advancement. New products developed by the company is because of latest and modern technology (Machinery), chemical researchers etc.
Soot analysis of Colgate STRENGTH: * Strong global presences * Reputed well known brand * Loyal customers Weakness: * High prices * Strong competitors Opportunities: * Advanced technology * Many investors Threats: * Unstable political conditions Conduct internal environment audit of the firm (Mission, vision, objectives, marketing strategies, marketing functions, resource audit, and financial standing and information systems): Mission Statement: In the mission statement of Colgate it is indicated that three factors are most important to the company.
The most important one is caring about their customers, how they will fulfill their needs. They indicate that the whole Colgate team (the company, the workers, the customers) are all a single unit; they will share ideas amp; move towards innovation. The final factor is about their continuous improvement. They don’t want to stop, they want to increase the quality and surpass the expectations of their customers. Vision Statement: In the vision statement of Colgate, they have stated that they will try to increase their market share ; increase the profits to its shareholders.
They want to go beyond the expectations of their customers by satisfying them, making quality products for them ; fulfilling their needs. Objectives: The key objectives of the Colgate Company are SMART. They are specific, measurable, f time are to increase their market share, to make Colgate a household name. They want to satisfy their shareholders along with the customers by increasing the revenue ; continue on delighting their customers, as delighting their customers is Collage’s main priority.
Strategy of Colgate: Colgate follows a strategy which is bases on customer satisfaction. This kind of strategy is called a marketing strategy. In this strategy the most essential thing is satisfying the customers and how to make a long lasting relationship with them & how to make them their advocates. This kind of strategy has some advantages ND some disadvantages. The big advantage of opting for a marketing strategy is that products are tailored to the needs of the customers; this will ensure both profits & customer satisfaction.
The major disadvantage of this type of marketing strategy is that it is very time consuming as the firm has to do proper research in order to find out that what the customer wants & how they can be satisfied. Resource Audit: Financial standing: Colgate is a well known company and had a strong performance in 2011. Their net sales grew 7. 5% all time record level and their global unit volume grew 4. %from the last year 2010. This company achieved their profit goals with the earning per share increasing 4% despite increase in material cost.