Question #1. 2Marketing: 2Five Marketing Management Orientations: 2Question # 2. 4(a) CustomerRelationship Marketing:- 4(b) FiveLevels of Relationship Building: 4(c) Kellogg’sRetaining Customer Loyalty: 4Question #3. 5(a) Balancingof Marketing Mix Strategy: 5(b) Kellogg’sDifferentiation Strategy: 5(c) Competitorand Kellogg’s.
5References: 6 Question #1 Marketing: Marketing has the main responsibility to earn revenue orprofits for the growth of the organization. Marketing should be able toidentify, evaluate, and selelct marketing opportunities and lay down strategiesfor achieving eminence if not dominance in the market. But marketing has bothsort off images good and bad, accurate and inaccurate it depends on themanagers how they put forward their product or service in the market in forntof their target market. (Kotler, 1999)Five MarketingManagement Orientations: This relates to the management activities of marketing. Thereare different concept of marketing utilized by different firms with respect totheir field of expertise.
The management develops new techniques, procedures,product features etc in order to attract more and more customers in thecompetitive market. Marketing campaigns require certain orientations in orderto attract the customers towards them. Following are the five marketing orientations that are most common andwidely used by the organizations to market their products or services. ProductConcept:- in marketing the product concept talks about an idea where afirm should be able to mainly focus on those product that help in improving theefficiency of the customers. The main focus of the product concept comes intoview when an organization puts extra effort in the production of a new productor just by adding value to its existing product such as new features etc. In lone with the “need-satisfying package”, it is obviousthat the marketing managers must have clear idea of what the essence of theproduct is that is being marketed to the targeted market. The product conceptis made out of; Core Product, Tangible Product, Augumented product, ProductImage.
(Strydom, 2007)MarketingConcept:- the marketing concept is related to the thinking on one handand doing the practical on the other. It determines the types of marketingactivities that a manager should look into in order to promote the product orservice. A businessman or woman should should be capable of recognizing thedifference between marketing and the marketing concept. (Jain, 2010)SellingConcept:- the selling concept is the big idea that will guide thecreative execution. It is known by many names but most commonly known as “theunique selling proposition”. Successful Marketers have long known that an ideathat emphasizes product benefits over product features has a much betterchances of success. (Roberts & Berger, 1999)ProductionConcept:- one of the most oldest concpets in marketing, this conceptbelieves that consumers only want those products that are low at prices and areeasily avaiable that they do not have to search for them far and wide. The Production Management has to look intocreating products that are capable of achieving high efficiency etc.
The idea that consumers will favor products that areavailable and highly affordable and that the organization should thereforefocus on improving production and distribution efficiency. The productionconcept is still a useful concept in some situations. And example both Personalcomputers maker Lenovo and home appliances maker Haier dominate the highlycompetitive and price sensitive Chinese market through labor costs, highproduction efficiency and mass distribution. (Armstrong, Adam, Denize, & Kotler, 2015)SocietalMarketing Concept:- this focuses on delivering the customers value of theproduct in a way that it works out for the betterment and well being of theenvironment.
Examples can be taken of Corporate Social Resposibility. Question # 2(a) Customer Relationship Marketing:- CustomerRelationship Management recognizes the key role of that the individualcustomers have and the most profitable customers have to identify so that thebusiness can focus on the customers appropriate to its strategy. For exampleDELL Computers invites its customers to specify exactly what they want in acomputer and delivers custom made in a few days. (Brink & Berndt, 2008)(b) Five Levels of Relationship Building:Thereexists five levels of relationship management on the basis of whichorganizations help build their product and organization’s image in the eyes ofits customers.· Basic Marketing: this is also known as direct selling.
· Reactive Marketing: when the product is sold and the customer isencouraged to give feedback incase of any comments or queries. · Accountable Marketing: After the product has been sold theorganization’s respective departments inquires about the experience with theproduct and whether the customers are having any issues while its use.· Proactive Marketing: this is mostly seen in financial markets wherethe companies keep a continuous improvement process but keep a regular check onthe customers whether they are satisfied or not.
· Partnership Marketing: the company works in partnership with itscustomers in order to improve the products.(c) Kellogg’s Retaining Customer Loyalty:Kellogg’stapped into the health conscious market. With the changing dynamics the companyknew that catering each and every customer would be difficult but will be ableto increase the customer loyalty.
They knew that providing the right product atthe right time, at the right place to the right customer is the key to success.The company has a brand image that helps it distinguish and differentiate fromall the other brands available in the market, thus the need is alreadyfulfilled of customer loyalty. Customers trust this brand for the reason it hasbeen providing nutritional cereals for the benefit of its customers.
Question #3 (a) Balancing of Marketing Mix Strategy:Price: Kellogg’s is comparatively priced higher thanits competitors. Looking into the factor that it has a very strong relationshipmanagement with its customers it can still build on some new customers bycatering to the new markets and reducing the prices to a certain limit in orderto enter in the market. Place: Kellogg’s being such a huge brand has a widedistribution channel this can help in the distribution of the product to everysupermarket, hypermarket and departmental stores. This helps in the productbeing readily available at all stores wherever the customers wants it to be. Promotion: Kellogg’s has been able to initiate manycompetitions and marketing communications in order to attract more and morecustomers towards their brand.
Product: Kellogg’s is known for its wide range ofproducts that start of with breakfast cereals to the weight loss cereals suchas Kellogg’s Special K. such products helps the brand to increase the number ofcustomers and helps in catering the wide range of customers from kids to adultsand provide nutritional benefits accordingly. (b) Kellogg’s Differentiation Strategy:Kellogg’saim was to provide its customers with the best of nutritional food and givethem the importance of having a balanced lifestyle. It targeted groups ofpeople and attracted them by attracting their mind sets regarding “balanceddiet”. It supported some physical activities in order to promote their brand.
The most important factor that helped in the differentiation and positioning ofits product is the nutritional labeling it carried out in 2007. This brought achange in the market. Since it was the first mover in this regard it hadalready captured the market of healthy people and people who were veryconscious about the calories they gain or lose every time they consumed thisproduct. Kellogg’shas also been noticed conducting many CSR activities in order to promote theirbrand in favor of the well-being of the society. (c) Competitor and Kellogg’sIn thecase of Kellogg’s its threatened most by Weetabix, the competition between thetwo brands is backed up with high amounts spent on advertising and promotion.
The Price war exists between the two and in which case Kellogg’s has to be morevigilant about. Due to the fact that more and more people are moving towardshealthy lifestyle they prefer something which is cost effective as well, and ifthey switch to a product that is equally competitive but is low in price thiscan be taken as a threat for Kellogg’s. Kellogg’shas it perception amongst some customers that some of its snacks are notfilling. As breakfast is considered as the most important meal of the day, someof the products of this company are not capable of meeting up with therequirements of the customers in terms of the diet. Also some customer are ofthe opinion that some products contain high level of sugar content in them.