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In a business environment, marketing of products is critical in sales and profit maximization. In most organizations, the marketing department is maintained to ensure that the firm has the ability to build and uphold successful relationships with clients. It is, therefore, essential for the marketing managers to have decisive knowledge of the environment, in which their organizations products operate. To understand the marketing environment, I will look at the marketing of Oral-B and the pulsar toothbrush, a product from the Gillette Company. The Oral-B pulsar toothbrush is a manual brush with soft vibrating bristles that help clean the teeth. The toothbrush is widely used around the world and one of the most successful toothbrush brands. A number of environmental factors, which were contributed to the positive performance of the Oral-B toothbrush in sales namely the level of competition advantage gained over other brands, demographic composition in terms of age and sex and the advertisement by the company.
Advertisement is a critical factor that has affected and still affects the sales level of the Oral-B pulsar toothbrush. The marketing group of the company has heavily invested in marketing the toothbrush in newspapers, radio, television and billboards. Frequent adverts and quality images that are appealing to the customers on national television increases the demand of the product, since those people without brushes can purchase them at the local retail centers. The company has also indirectly advertised the toothbrushes through retailers by supplying them with the toothbrushes and giving those bonuses on the number of brushes sold. Advertising plays a major role in building goodwill for the brand of the company. It builds confidence in the consumer making the impression that the product purchased is the best. Through advertising, the consumer acquires the knowledge on how to use the toothbrush and the benefits that are likely to be enjoyed from using it. It is also important to note the challenges of advertising like it is an expensive exercise that eats into the most of the revenue collected from the sales of the toothbrushes. It is notable, that adverts of the Oral-B toothbrushes are made in all national televisions and newspapers. An exercise that should be keenly monitored to ensure that the cost of advertisement that not exceeds the benefits or sales have been derived from the advertisement. These can be achieved through mass production of the toothbrushes and diversifying the market covered by the company, since the company will be able to enjoy economies of scale.
The second force is demographic composition in terms of the population age, size, location occupation and sex. Demographic composition study is important to the marketing team, since it helps them divide population to target markets and market segments. The mode of advertising should be appealing to the group being targeted. The company should be able to establish the age group that purchases the toothbrushes more. For instance, if the young population is the one who prefers using the Oral-B brushes, the adverts on the toothbrushes should be appealing to the youth. Likewise, if the toothbrushes are preferred to by a particular sex, say male, the adverts should be appealing to that sex (Boettcher & Gaines 2004). By analyzing the demographic composition assist the company determines the output level and the need for expansion.
The third factor that affects the sales of the Oral-B brushes is the competition from other company’s products like Colgate. The company should ensure that it has gained competitive advantage over its biggest competitors. The company should establish a strategy that would make it sell its products more than other companies would. For instance, Gillette, the company that manufactures Oral-B brushes, may opt to lower its prices that would make the demand of the brushes fall at the retail shop (Australian Direct Marketing Association., & Coopers & Lybrand 1984). This would make other companies in the industry make loses hence leave the industry. Additionally, the company can gain competitive advantage over other companies by acquiring the other companies and making them subsidiaries or merging with competing firms. This would create a monopoly in favor of the company.
Different environments that include the political, legal governing sources, economical and bargaining power of the customer would in one way or another influence the marketing and sales of the company’s products. Political environment includes the government agencies that influence other organizations. In a stable political environment, more sales are likely to be made since there is enough cash in circulation to make the purchases. A business friendly environment greatly influences the market operations, since more investors have the confidence that they will earn profits out of their investments. Economic factors are critical in determining the actual sales level. The company would maximize profits by raising the output level to enjoy economies of scale. Another factor is the bargaining power of the customer. This factor would affect the profit margin in case the customer has a high bargaining power. The laws in a country can either encourage or discourage the sales a product through the laws in operation. For instance, the sale of Oral-B toothbrushes would decline, if the prices were inflated due to increased taxations. This would discourage the consumer from demanding the product. Similarly, the demand for the toothbrushes would significantly increase, because of a decrease in taxes. More people are willing to spend less on quality products.
There are a number of challenges that face marketers in their day- to -day business activities namely lack of finances to fund the marketing process, lack of proper coordination between different departments and stiff competition from other close substitutes (Hutchison, Macy & Allen 2010). It is, therefore, important to note that the marketing department is a crucial department in every organization hence the need for cooperation from other departments. Cooperation by other departments would lead to increase efficiency in operation. For instance, there is the need for cooperation by the finance departments to finance the advertisements of the company’s products. Additionally, it is essential for the company to ensure that it has achieved competitive advantage over its competitors and choose marketing methods that match the company’s available resources.