Terence Chan's Blog

Wow.  That’s pretty much all I can say about the second semester. It feels this way every time a semester ends.  You just don’t realize how much time has passed by until you actually stop to think about it. From the beginning of Comm 296 where I had minimal interest in marketing to the end of Comm 296 where I’ve developed an interest so strong I’ve decided to take marketing as my second option.

This course also gave me an invaluable experience, the marketing plan group assignment. To be honest, ever since coming to University, I’ve found it quite difficult to both meet new people and retain contact with them after the semester is over. The marketing plan assignment gave me an opportunity to meet great people. Of course, the marketing plan was our first priority but because of the opportunity that were given to us to meet we were able to become great friends. Most of the time, after our 6 hour meetings on Sundays, we would go out and enjoy a meal together to commemorate our hard work for the day.

As for how we worked together, quite frankly we weren’t very efficient in getting work done. We would meet up and collaborate on the task at hand but we were not very efficient in splitting up the work. Aside from that however, we worked great as a team. We had very great discussions about the issue at hand, and we respected everyone’s opinion. Furthermore, everyone gave their all in completing this project and as a result, we became not only great team mates but great friends as well.

Overall, this opportunity to analyze Zara and create a marketing plan according to it’s pre-existing marketing mix gave me a valuable experience. Not only did it let me meet fellow Sauder comrades but it gave me an opportunity to indulge in marketing, and develop a sense of direction in my future career towards the marketing field

It’s time for a random thought of the day! Today, I had a glass of Coca-Cola and couldn’t help but think about the vast market share that coca cola has attained over the years. In fact, the brand is so reputable and well known that virtually everyone knows it. The question I pose today is, why do they continue to advertise? Coca-Cola spends billions of dollars each year on advertising when virtually the majority of individuals know of the brand and has tasted it before. Wouldn’t it be better for for Coca-Cola to use this money on R&D instead to develop better products? To be honest, this has puzzled me for a long time.

It took me a while to put my mind around this, but when I actually thought about it, it became painfully obvious. Imagine if Coca-Cola completely stopped advertising. No more Television commercials, no more sponsorships, nothing. Pepsi, its main competitor and sworn nemesis would take that opportunity and gain massive sales by continuing its advertising. In a sense, its a “prisoner’s dilemma”. Pepsi and Coca Cola would both earn more profit by not advertising then if they both advertise. However, if one party advertises and the other doesn’t, the party that does not advertise will incur substantial cost. Therefore, there is an incentive for both parties to invest in advertising.

Of course, there are obviously many more reasons that would give incentives for a firm to spend on advertising despite their reputation. However, this is the the simplest and to me, most realistic example of why.