Marketing Free Essay Example

align="justify"> The Company's management has confidently invested significant funds in marketing its products. Kellogg has effectively utilized ups to maintain its success.

How Has the Product Been Affected by Market Segmentation?

The case study highlights significant changes in the breakfast cereal market, with consumer needs and preferences evolving. Kellogg has successfully conducted market segmentation to understand the diverse needs and effectively meet them.

What Action Has the Company Taken to Re-Establish the Brand?

Kellogg acknowledges the importance of competing with its competitors and has demonstrated its dedication to preserving its leading role through substantial investments in advertising. As mentioned earlier, more than 15% of Kellogg's revenue is consistently reinvested in advertising, effectively showcasing their goal to be the top choice for breakfast cereal. Moreover, the company has adopted a slogan that highlights their own excellence: "Have you forgotten how good they taste?" By incorporating this slogan, Kellogg showcases their trust in their customers' loyalty, merely reminding them of what they already know.

What does the term "Market Niche" mean?

A niche in marketing is a smaller market with unique needs that are not being met. Marketers identify niches by segmenting the market or targeting a group seeking specific

benefits. Businesses focus on fulfilling overlooked product or service needs, such as specialized medical shoes for diabetic and elderly individuals.

Kellogg has created a product called "Special K" that specifically targets women who are on a diet. This can be considered a niche market as Kellogg has identified a specific group of consumers within a larger market segment.

What Evidence, if Any, Is There to Suggest That It Could Continue to Be Successful in the Future?

The case study highlights the importance of comprehending how customer buying behavior has evolved, and Kellogg acknowledges this significance. Marketers need to keep in mind their primary objective of providing the right product for consumers.

In 1979, Kellogg demonstrated its preparedness for competition by adopting a marketing strategy that involved dedicating 15% of its annual revenue to advertise a specific brand. At that time, there were a total of 84 brands in the market. Kellogg's success can be attributed to its significant investment in advertising and continuous efforts to improve products and packaging. Through these adaptations, Kellogg has established itself as a strong competitor and industry leader in the cereal product market.

The choice of targeting strategy, which involves selecting potential customers, segmenting the market, and determining the products for each segment, is influenced by various factors. One such factor is the level of competition for a specific product, which may prompt a business to transition from mass marketing to niche marketing.

The company will offer a product to a particular group of consumers that our direct competitors do not provide. Changes in the demography may also impact the targeting strategy. The company may need to identify a

new regional market if an aging population does not have great interest in dealing with modern products, leading to low sales.

The goal is to develop products that will provide a sustainable competitive advantage.

Before introducing a product, it is essential for a company to engage in research and development. This entails identifying potential consumers and understanding their needs and expectations. Rather than offering any random product, it is crucial to provide consumers with the right one. Identifying a niche market can be profitable as it involves recognizing the demand for a specific product that is currently unavailable in the market.

In order to achieve success, it is important to develop a product that meets the needs of our customers and fully satisfies their expectations.

The distribution arrangement is designed to ensure customer convenience.

Building relationships with "upstream" and "downstream" supply chain partners is necessary for producing and providing products to buyers. The value delivery network consists of the company, suppliers, distributors, and customers, who collaborate to enhance the performance of the entire system in delivering customer value.

The value delivery network relies heavily on marketing channels, both direct and indirect. These channels are crucial in ensuring that goods are readily available to the intended markets. Collaborating with various channel members allows a company to benefit from their extensive networks, expertise, specialized skills, and operational scale. The length of a channel is determined by the number of intermediary levels involved. Direct marketing channels involve no intermediaries between the manufacturer and customer, while indirect marketing channels incorporate one or more intermediaries.

Promotion is a crucial stage in achieving marketing objectives and is essential for generating good sales.

While developing an appealing product is important for attracting consumers and generating high profits, it is equally important to make the market aware of its existence. At the introductory stage of a product, promotion plays a significant role. Here are a few examples of how businesses can strategize to create consumer awareness beyond just advertising.

Special Offers Sweepstakes Endorsements Trials Direct mails Free Gifts

The analysis of the additional elements of the extended marketing mix focuses on the tools available to a business to achieve its marketing objectives and target its market. The traditional marketing mix consists of Product, Price, Place, and Promotion, while the extended mix includes People, Process, and the Physical environment. With the growth of the service industry, these additional elements have gained significance. People, which represent the business, encompass employees, management, culture, and customer service. The image projected by these individuals is crucial.

The initial interaction with the customer is usually human, and it plays a crucial role in shaping their perception. The level of training and expertise possessed by the employees is also crucial. Additionally, it is important to assess whether the staff members embody the desired culture of the business. In the service sector, processes hold significant importance. This includes the manner in which services are acquired by customers, such as contact channels, reminders, registration procedures, subscription options, form completion, and the level of technological involvement.

The Physical environment refers to the ambiance, mood, or physical presentation of the environment. When examining this aspect of the marketing mix, we can inquire about various aspects. Is the environment sleek or run-down? Is it trendy, retro, modern, or old-fashioned? Is

it well-lit or dimly lit? Is it romantic or lively? Is it clean, dirty, unkempt, or neat? Additionally, considerations may involve enhancements and smell, among others. Pricing is a crucial factor for businesses to contemplate when introducing a new product or even promoting an existing one.

Depending on the business objective, companies will adopt various approaches to their pricing strategy. Some well-known models of pricing strategies include: Price Skimming, where the price starts high and then decreases; Loss leader, selling a product at a low price to boost sales; Price integration, introducing a product at a low price and gradually increasing it; Psychological pricing, manipulating figures to confuse customers; and Market-oriented pricing, setting the price based on demand and direct competitors.

A business that is involved in the production and distribution of PCs and has an objective of providing one PC for every child by 2020 is unlikely to adopt a Price skimming strategy. This is because the company is highly concerned with the welfare of children and aims to offer PCs at an affordable price, which is better than the prices offered by competitors. Therefore, it is more likely that a company with a welfare/social assistance objective would practice a strategy like Loss leader.
3. The distinction between international marketing and domestic marketing.
Domestic Marketing:
The marketing strategies used to attract and influence customers within the political boundaries of a country are referred to as Domestic marketing. When a company operates solely within a country, it is engaged in domestic marketing. The company's focus is solely on the local customer and market, with no consideration given to overseas markets. All products and services are designed specifically

for the local customers.

International Marketing refers to the business activities of a company that target customers overseas or in another country. It involves directing the flow of goods and services to consumers in more than one country for profit purposes only. International Marketing is differentiated from domestic marketing by the fact that it has no boundaries and operates on a global scale.

While domestic marketing has limited scope and will eventually dry up, international marketing offers endless opportunities and scope. Additionally, the benefits in domestic marketing are fewer compared to international marketing, with the added incentive of foreign currency being important for the home country. In terms of technology, domestic marketing has limited use, while international marketing allows for the use and sharing of the latest technologies.

Political relations - Domestic marketing does not involve political relations, while international marketing contributes to enhanced political relations and increased cooperation between countries. Barriers - Domestic marketing does not face barriers, whereas international marketing encounters various obstacles such as cross-cultural differences, language, currency, traditions, and customs.

This section will discuss the differences in marketing products and services to both organizations and consumers.

The marketing strategy varies depending on the distribution level. Consumer promotion differs from organization promotion. Trade discount is offered to businesses due to high volume trading. In contrast, organization sales do not require significant investment in multiple points of sale, which impacts distribution placement. The primary method of buying and selling for organizations is through the internet.