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Marketing Principles and Practices Essay Example

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Marketing Principles and Practices

The big players like Anheuser-Busch produce a complete row of products and introduces fresh brands to reach new customers as well as attracting consumers away from other players in the sector. As of the viewpoint of the customer choice, this has lead to a high fragmentation of the USA beer market with thousands of brands available for consumers. Branding is therefore an important marketing strategy for the leading brewers in the country (Jain n.After branding, what follows is classifying the brands into different classes with each class having a different price. Different classes compete around the different prices even those produced by the same brewer. The brewer therefore evaluates both the level of competition within the brands he produces and the overall competition with the other brewers. A product promotion program can therefore target a specific class or brand which has recorded a fall in its demand in the market (Howard & Ogilivie 2011).For the brands, price is a very important characteristic. Higher price of a given brand to consumers means higher quality and status and lower price means lower quality and status. For example, craft beer and other brands consumed on basis of prestige will sale at a higher price than the other brands. In addition, Budweiser, which belong to the premium class sales at the best price and is more profitable than the other brands that have the same cost of production.Another clear example that demonstrates the significance of the role of pricing in shaping the behavior of consumers is the introduction of Lowenbrau by Miller’s in the 1970s. Lowenbrau had a foreign hoard but its price was below that of the import class of excellent premium to challenge A-B’s Michelob. Miller, when advertizing, emphasized the German name to give the impression that it was an imported brand though brewed in the United States. Lowenbrau could thus beat Michelob substantially in the market prompting A-B to sue Miller for deceiving packaging as well as advertizing. Finally, Miller had to change his brand name to bring out the true picture of being a USA product (Ascher 2012).Again, A-B increased the price of the sub premium brand by nearly three percent in the year 2011 to eliminate the gap between the premium and the sub premium brands. This was a means of influencing consumers to shift to the premium brand. As

Bibliography

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Povich, E. S. 2014, Craft beer industry taps profits of big beer, The pew charitable trusts, Philadelphia, Viewed 7 October 2014, < http://www.pewtrusts.org/en/research-and- analysis/blogs/stateline/2014/05/27/craft-beer-industry-taps-profits-of-big-beer>

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preview essay on Marketing Principles and Practices
  • Pages: 10 (2500 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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