Monday, May 9, 2011

Ch. 7 - Business Marketing







Not only does Svedka participate in marketing to consumers for personal consumption, but a major portion of their marketing energies goes to business marketing.  Through business that purchase large quantities of their products, such as distributors, warehouses, bars, and restaurants, Svedka's revenues are gained only through this method.  Svedka falls into several categories as described in the text book.  Svedka falls under the supplies product type, and is sold to resellers, who in turn do not modify or use the product to make another, but only seek to make a profit by marking up the price the purchase price.  Even thought marketing relationships need to be strong for any successful company, sometimes the consumer market may demand another product.  For example, while purchasing alcohol at Astoria Wine and Spirits in Astoria, Queens the other day - I was told that the store no longer carried Svedka, and that a more popular vodka took it's place.  The demand was obviously higher for Vesica vodka.  The store attendant then told me that their customers were seeking a less expensive product, and that it was problematic ordering cases of svedka because the demand was not there.  This just goes to show that no matter how hard the efforts are of marketing sometimes they are not rewarded.  Furthermore, the store invest in wines, rather than spirits which could explain the phenomenon.  Phenomenon, because everywhere else in Manhattan carries Svedka, and advertises it heavily.




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