a. What does marketing mean?
According to Kotler and Armstrong (2010) marketing entails both managerial and social processes. In which case, an organisation carries out activities that assist them identify its customers needs and wants and satisfy them by developing products and services to which the exchange of value guarantees the profitability of the organisation.
b. Discuss in details the five marketing management orientations and explain which one you believe is mostly used by today's organizations.
Marketing management orientations is basically the approach by organisations to business operations with a focus on the activities that aim to satisfy the needs and ants of its customers (Armstrong et al. 2015).
There are five major marketing orientation concepts in which organisations undertake their marketing strategies. In their study on applied orientation, Malhotra (2008) and Kotler and Armstrong (2010), discus these particular concepts in detail. First, the production concept perceives that consumers are likely to favour product or services that available and affordable. As such, the management team within organisations should emphasise on improving their production and distribution efficiency (Malhotra, 2008).
Second, the product concept perceives that consumers will favour products and services that offer better quality, performance and innovative aspects. As such, its focus is on the fact that marketing teams should make continuous improvements on their product quality and design (Kotler and Armstrong, 2010).
Third, the selling concept is employed by a number of organisations and it perceives that consumers will not engage themselves in the purchase of an organisations product unless it engages itself in large-scale selling and promotion venture. Organisations that employ this concept tend to do so with unsought goods, in which case, organisations have to search out prospective buyers and sell the benefits of the product (Kotler and Armstrong, 2010).
Fourth, the marketing concept perceives that of an organisation to achieve its desired goals, it needs to have a deep knowledge of its target consumers desires and wants in order to deliver value better than its competitors. Its approach is customer-centred and it is viewed as the most effective given its focus is on making the right product for its customers(Kotler and Armstrong, 2010).
Fifth, the societal marketing concept perceives that an organisations marketing strategy needs to deliver value to its customers by ensuring that it sustains or enhances both the consumer s and society s well-being (Malhotra, 2008).
a. Describe what is meant by customer relationship management
Customer relationship management is the effective management and fulfillment of customer s expectations through the delivery of good products and services as compared to its customers (Buttle, 2009).
b. What are the different relationship levels companies can build with customers?
Boulding et al (2005) in establishing the various relationship levels between an organisation and its customers indicate that they tend to vary.
First, they make mention of intentional relationship as one that arises from a customer s continuous use of an organisations products based due to an existing contract negotiation agreement. Second is dedication relationship in which a customer insists on continuous use of an organisations product or service because of its brand or social influence. Third is behavioral relationship in which a consumer insists on using an organisations product or service because it is the customer s favorite. Fourth is the constraint relationship, in which the customer s lack of option of a particular product leads them to engage in the services or products of a particular organisation.
c. In respect to customer relationship management concept and referring to the case above, explain what did Kellogg focus on in order to retain and gain its customers loyalty?
Kellog have indeed focused on established dedicated customers given it offers a wide range of popular products with emphasis on sustaining its brand name and by promoting healthy living as well. Kellog has achieved this by developing a stronger relationship with its customers by focusing on continuous improvement of its products in order to keep its customers satisfied. In particular, given the fact that Kellog was the first company to print Guideline Daily Amounts (GDA) on its products, it can thus be attributed to the way they have been able to sustain its employees by promoting the worthy cause of the health of its consumers. As this is an aspect of care towards its customers, they have as a result become dedicated to the company s products.
a. Explain how Kellogg managed to balance its marketing mix strategy. How did it manage each of the marketing mix components? The students should begin by explaining the marketing mix component while referring to BE200 material and then apply it to the case. (20 Marks)
All the elements of the marketing mix are of equal importance if balance is to be attained by a company when marketing its product within the market (Goi, 2009). Kellog employs the 4P s of marketing mix so as to be able to establish the strengths and weaknesses in the use of this marketing mix tools. Armstrong and Kottler (2010) indicate that it is essential for an organisation to have efficient products set at affordable prices, at located at accessible places and with effective promotional ventures. It is of no use if a product is well developed at lower costs with popularity among the consumer market yet it gets placed in a location that is not accessible. Goi (2009) indicates that it is essential for organisations to integrate these marketing elements together in order to achieve a balance. Kellog have been able to come up with a variety of new products by first analyzing the situation in the market. It is from this particular analysis that Kellog has been able to establish a balance framework within its marketing tools which they use in regard to identifying the needs of its customer s and hence develop a product that satisfies the need. Kellog has laid emphasis on each marketing element to be carried out in a balanced way in order to foster consistency in its growth.
b. Discuss how Kellogg succeeded in differentiating and positioning its products for maximum competitive advantage in the marketplace?
Kellog s Corn Flakes have succeeded in differentiating itself within the highly competitive cereals market not only through its value proposition, but also its positioning as a highly nutritious meal for its consumers. Its positioning is not one that imitates that of its competitors; rather it is one that seeks to help its customers improve on their health life by printing the GDA (Meza and Sudhir, 2010). Though a number of companies have followed suit, Kellog still remains as one of the first companies to utilize this type of positioning in the cereals market.
c. Identify any one of Kellogg's competitor and discuss the differences in marketing strategies between the two
Nestle is one of the main competitors of Kellog within the cereals market. In comparing the marketing strategies both Nestle and Kellog employ, it is evident that there are a number of differences. First, Nestle emphasize a lot on nutritional and food research in order to establish the type of product for its customers (Jankovic, 2012). Kellog in itself is insistent on consumer-centered research in which it uses the opinion of its consumers to advise its product development. Second, Kellog leads the way in regard to offering its customers with the products they want at lower prices to distinguish themselves from its competitors. Nestle s utilization of product-line pricing due to its variety of products makes them set their prices highly as they value their products highly (Jankovic, 2012).
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