Unit 3: Introduction to Marketing (P1,P2,M1)

Unit 3: Introduction to Marketing

Introducing the Basics of Marketing

Task 1 (U3 P1)

In the assignment I am going to describe how marketing techniques such as branding, relationship marketing and growth matrix are being used by Kellogg’s and diesel.  There are so many different types of methods that are being used in marketing to make your business becoming more successful. The first one is branding, branding is a very important part of marketing because this tells the consumers who owns what and helps them to identify which one they want and which one is better, most of the brands will have certain things which makes them noticeable, it could be anything like Logo, design or the slogan. For example if there is a giant K on the cereals then most of the people will know its Kellogg’s special. Kellogg’s and diesel takes branding very seriously because branding sometimes can be the importance between the successes of the business or not.

Out of the two companies I think Kellogg’s take’s branding much more important than diesel because consumers recognise Kellogg’s by their logo most of the times for example when you go shopping in the supermarket for some cereals and the ones with the colour and the way it’s written on the box you will know that it’s Kellogg’s, they designed their logo very simple and eye catching. On the other hand diesel also focus on brand just as much as Kellogg’s consumers will know it’s diesel when they see it because it very noticeable they use red back ground with white letters is not very creativity because they just use their name diesel however it defiantly noticeable. Kellogg’s they don’t really have a slogan for their company but they have numerous slogans for their for their breakfast cereals because the company only produces cereals, however "They're Gr-r-reat!" has always been used. The "Gr-r-reat" has been punned in different slogans as well like:

·         They're more than good, they’re great!

·         They're gonna taste great!

·         Gr-r-reat 'till it's gone! (Tony's Cinnamon Krunchers)

·         Bring out the tiger in you! (1980s)

·         The taste adults have grown to love. (1980s - 1990s)

·         Hey Tony

·         Gr-r-reat for growth! (Whole Grain Tiger Power)

·         Earn your stripes!

·         Never let the tiger catch you!

·         Put a tiger on your team!

·         Pass it on!

·         Scientifically proven better than branflakes and other cereals

·         It's Gr-r-reat!

·         Super-de-duper!

·         A Gr-r-reat Taste

Unlike Kellogg’s diesel produces thousands of different clothes and accessories and they can’t just have one slogan to describe all of their products so they don’t really use slogans. The next marketing technique that’s been used is relationship marketing. Relationship marketing is how businesses such as Kellogg’s and diesel keeping their existing customers either by building long lasting relationships with them and merely trying to attract new customers to organization or trying to make the customers satisfied by meeting their expectations to increases the profitability of the organization. For example Kellogg’s releases new flavour or special K and they see it’s been sold very will then afterwards they might release the same one again however this time they’re going to do it in a bigger box or cheaper so they can keep the existing customers satisfied and making them repeat the process. For diesel it would be the same process for example if diesel releases new shirt in red then the possibility is very high that they will release the same shirt again but in different colour, this way it will keep the existing customers shopping for different colour shirt one of them might be he or she’s favourite colour. This gives the businesses a relationship with their customers. Also this is a kind of market penetration which means it is the same product but has a small difference to the original. The final marketing technique is growth matrix. Growth matrix is a method which created to help businesses growth by using different techniques. One of them is the Ansoffs Matrix. The Ansoffs Matrix has four parts to it which can all help a business grow, keep its customers, get new customers or go in a completely new area.

The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy. The first one I am going to discuss is market penetration. Market penetration is using a product which already exists and then putting it into an existing market for example Kellogg’s have used is Coco Pops. They have been out for many years and around about once a year they release a different sort of Coco

Pops, like Coco Pops Moon & Stars. The product is still the same the taste is still the same but the shape of is different. The same goes for diesel they been making clothes and perfumes for years however all their products are different from shapes to style but it’s still the same material or smell this makes the existing customers thing is a new product have come out which makes them shopping there even more also it will attract new customers.

There are four main objectives market penetration seeks to achieve:

·         Maintain or increase the market share of current products

·         Secure dominance of growth markets

·         Restructure a mature market by driving out competitors

·         Increase usage by existing customers

The next one is product development.  This is where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. An example of this would be Kellogg’s coco pops then using this cereal they then made Coco Rocks which is another cereal made from the older cereal. Another example is Diesel’s footwear, some of their footwear is the shape of a boot, then they have the same design but it’s just different style or shape. So it makes it a completely new product from an older one. The next one is Market development unlike market penetration which takes the existing product into an existing market; market development takes an existing product into a whole new market. And finally the last one is diversification also this is the most difficult one of them all. Diversification is basically creating a whole new product and launching it in a completely new market. This is very risky because you just don’t know if the product is going to do well as you’ve never tried it anywhere, also you don’t know how the new market will respond, therefore this will either result in a massive loss or a huge profit. The best ideas are to use market penetration or market development as your products are more likely to sell well.

Task 2 (U3 P2)

Because Kellogg’s and Diesel are both such a huge and successful organisation, it’s only natural that legislation will have a huge impact on their marketing activities. The legislation that affects both businesses is sale of goods. The sale of good is a law which helping buyers to obtain redress when their purchases 'go wrong'. It is in the interest of anyone who sells goods or services to understand the implications of the Act for them and the responsibilities they have under it. The next one is customer protection from unfair trading this is the law which protects and makes sure customers get a fair deal on what they purchase, for example if you bought some jeans in diesel or bought some cereal in Kellogg’s and you found out there are manufacturing faulty then the sales of good act comes In which makes sure you are entitled to full refund or exchange. This is the probably the most useful and relevant to the problems many consumers face when they make purchases on the High Street, online or by mail order. The next one is Consumer Credit. Consumer credit is basically the amount of credit is being spent by the consumer; however consumers can only spend it on non-investment goods or services such as recreational vehicles, boat, education and many more….

Task 2 (Merit)

For the merit part of this assignment I am going to compare the similarities and differences of the marketing techniques which are being carried out by diesel and Kellogg’s. Although Kellogg’s and diesel are in the different market to each other but they’re both achieving the same goal it just the way they achieving it it’s different.  Although both Kellogg’s and diesel’s marketing techniques are very similar there are differences in the as well, both of the businesses use something called growth matrix when they want their business to growth or expand. Because they’re different companies which produce different goods, their tactics of how to achieving this will be slightly differently from each other. For example, market penetration this is the increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. Diesel make jeans but they’re constantly releasing new jeans and new designs to make the customers think that they’re a bit different than they originally were so they can make more out of it, however when doing this people are going to have to see it immediately, otherwise they are not going to tell the difference in them and customers might not but them so they have done all that for nothing. On the other hand for Kellogg’s this is where the differences comes in for diesel they have to make people visually see the different in the product Kellogg’s have to make people Taste the differences, people need to taste the breakfast cereal in order to tell the difference, therefore they do not have to change the packaging as much for people to see straight away. An example for this is Coco Pops and the new moon and star ones. For this reason they are using market penetration differently. The next one is product development this is one of them that both Diesel and Kellogg’s will use it the same way this is because  both businesses want to achieve a new product from the previous one. Therefore they have to find a way to either edit or improve something on the product to make sure that it’s defiantly different from the previous one.  Market development is where both businesses are very different this is because Diesel might struggle to find a new market because in the fashion world there are too many competitions and to founding a new market is quite hard to do because other fashion businesses probably already done it also it very time consuming and expensive, even if you do have a new market it doesn’t grantee the new product will do well. Whereas Kellogg’s can go to all sorts of different markets as many different people all over the world eat cereal. And finally diversification, Kellogg’s can do well in diversification because lots of people already know about Kellogg’s and they have so many cereals out there that there everyone must like at least one. Therefore people might not mind trying a different one. However as it is in a new market and a new product it can also do badly due to the lack of experience Kellogg’s have with this new market and new product. In the case of Diesel, they might need to release a whole new range of clothing and accessories, or they can go into a completely new area such as vehicles or technology. This again is risky because of their lack of experience.

  

for task 2 I am going to give a review of the communication that TNS Global use on their website. Their communication is very affective because there is different ways to view it such as: Links, videos, pictures, emails. The advantages of link are that Linked lists are among the simplest and most common data structures. They can be used to implement several other common abstract data structures, including stacks, queues, associative arrays, and symbolic expressions, though it is not uncommon to implement the other data structures directly without using a list as the basis of implementation. The disadvantages of links is that it’s not face to face and sometime can take you to other website that you don’t want also links are not always in the language you want and there can be virus links as well. The advantages of videos are it’s very simple to use that instead reading the information you can just watch it and skip it to the part you want however the downside of this is the videos can take a very long time to load up or the information is fully understandable. The advantage of pictures is that It makes people understand what people trying to say without saying it or writing it down however the downside is not everyone is going to understand it. The next one is emails the advantage is. Emails are easy to use. You can organize your daily correspondence, send and receive electronic messages and save them on computers. Emails are fast. They are delivered at once around the world. No other form of written communication is as fast as an email. The language used in emails is simple and informal. When you reply to an email you can attach the original message so that when you answer the recipient knows what you are talking about. This is important if you get hundreds of emails a day. It is possible to send automated emails with a certain text. In such a way it is possible to tell the sender that you are on vacation. These emails are called auto responders. Emails do not use paper. They are environment friendly and save a lot of trees from being cut down. And the disadvantage might be Emails may carry viruses. These are small programs that harm your computer system. They can read out your email address book and send themselves to a number of people around the world. Many people send unwanted emails to others. These are called spam mails. It takes a lot of time to filter out the unwanted emails from those that are really important. Emails cannot really be used for official business documents. They may be lost and you cannot sign them. They could have more methods in the future such as sharing options and more…

Flyer and News letter

news and flyer god

will

Task 1

To make a market plan we are going to cover eight topics in which to make the product best

for its consumers. To do this we will be covering the concept of the product, the product

itself, any similar products from competing businesses, where the product will be sold, the

life of the product on the shelf and finally the target group.

Market research

When looking to create a new product market research must be used, market research is

very important to the company as it helps to get an edge over other companies, and to help

get information first. There are many strategies of market research that can be used when

creating a new product for example focus groups which will vary in ages depending on what

age the product is aimed at. A focus group will involve questions about cereals for example

“what would you want in the morning?” and “what are other products missing” and the

answers to these questions will be used to create the new product. Another way of using

market research is to use quantitative research and this involves questionnaires and

customer research for example people who go out in high streets with surveys and

questionnaires and will stop random people and ask them questions about products. The

use of ways like focus groups is known as Qualitative research, and this mainly uses feelings,

and ideas and colours and shapes instead of facts and digits. 

Marketing elements

Key elements of a successful marketing strategy

Existing and potential customers, they fall into particular groups or segment, characterised

by their needs as a customer. Identifying these groups and their needs through market

research, this is then followed by addressing those needs more successfully than their

competitors; this then would be one of the key elements of your marketing strategy.

Kellogg’s can then create a marketing strategy this then helps their business make the most

of their strengths and matches them to the needs of the customers you want to target. For

example, if a particular current group of customers of the Kellogg’s company is looking for

the quality of the product first and foremost, this means then that any marketing activity

aimed at them should draw attention to a high quality of the products that Kellogg’s are

making. Once Kellogg’s has created a marketing plan and have decided on a marketing

strategy, Kellogg’s then have to decide on which marketing activity or activities that will

ensure their target market group, for this task the target group audience is ‘Teenagers’, and

they will need to know actually the product that Kellogg’s are offering and this also includes

why they meet their needs for the target group.

Executive Summary

Executive summary is basically a short document or a section of document this is produced

for business purpose. That summarizes a longer report or proposal or a group of related

reports also this is like a summary of the marketing plan, and a simple marketing plan would

include:

•          Mission – this is the overall of the company and their overall goal is to be able to bring new product for a target group.

•          Objectives – objectives is what are you trying to achieve usually over the next year. For Kellogg’s their objectives are successfully lunch the new product and sale enough to make it successful.

•          Strategies – The strategy is to narrow down our thoughts on who would buy the product and who the product is meant for. To do this we will need to look at similar cereals and find what market they are in.

The challenge

The challenge is basically similar company goals but it’s just for the product instead of the

company, and their main goal is to create the product to their standards and selling to the

market successfully for the next year

Situation Analysis

The company main goal would be to make a profit from the new product. Their main focus

is on making a profit from the product and also to satisfy the customers who purchase the

product. Next, is the culture, this is to make the product available to all people without

offending anyone from a different country and also it should appeal to them. Next are the

advantages and disadvantages. The company’s advantage is that they are very strong at

selling cereals however they are not too strong at selling energy bars as they have never

done it before. However, Kellogg’s sell cereal bars which are similar to energy bars.

Customer analysis

The customer that would buy this product is mums who have children. This is because she is

a caring mother who wants her children to do well in school and the bar is all about making

kids brains work better hence the name Brain Food. Another reason is because it is a low fat

which is also good for children.

Climate

 The economic climate is the recession around the world, which is causing people to spend

less and have less money.

Politically we are being ruled by a co-elision government.

The social change that is happening is, people are not eating a traditional breakfast

anymore. A lot of people are eating on the go or even missing breakfast.

A main technological change is almost everyone has a smart phone, for example and I

phone. A way advantage could be taken is a Kellogg’s application could be made.

Product

The brand name of the products is going to be Brain Food.

This has to be a high quality product because Kellogg’s is a high quality company and they

have to keep their name well respected.

We are only going to sell 1 version of the product at first in case it does not succeed,

however if it does do well we will most likely expand on the product.

The packaging for the product is going to be a flow rapping and will be bright colourer and

energetic, this is because it needs to attract students and it has to represent energy in the

morning.

Price

The list price of the product is going to be £1.29

Discounts for the product could be offers such as two for £1, or we may do a multipack of

six bars for £3.

Place (distribution)

The distribution channels will be sold on high streets, in Tesco’s as this is a huge food

company. Tesco’s can then sell ‘Brain Food’ in multi packs. It can be sold in all other

supermarkets, they can also be sold in garages as an energy snack.

We are going to give our distributor margins 60%.

Promotion

Advertising will be though television adverts, bill boards and magazines, they then can

promote it in multipacks in supermarkets as then parents would pick them up for their

children.

For public relations Kellogg’s could do a ‘Call of Duty’ game supported by ‘Brain Food’ as it

will promote the cereal  bar.

Short & Long-term Projections

Short term – sell 1 million in 3 months

Long term – become leading energy cereal bar

Conclusion

In this report we have spoken about price, product, promotion, place, swot analysis and

competitor analysis.

Advertising Legislation

Advertising legislation

1.       What is the role of the ASA?

ASA (Advertising Standards Authority) they role is to handle any complaints and to avoid the imposition of legislation, the advertising industry set up an independent organisation, the Advertising Standards Authority (ASA), in 1962.

2.       What advertising do they regulate?

The ASA deals with most types of advertisement but not every single one of them.

And the type of advertising they deals with is:

·         Magazine and newspaper advertisements 

·         Radio and TV commercials (not programmes or programme sponsorship) 

·         Television Shopping Channels 

·         Posters on legitimate poster sites (not fly posters) 

·         Leaflets and brochures 

·         Cinema commercials 

·         Direct mail (advertising sent through the post and addressed to you personally) 

·         Door drops and circulars (advertising posted through the letter box without your name on) 

·         Advertisements on the Internet, including banner and display ads and paid-for (sponsored) search 

·         Marketing communications on companies’ own websites and in other, non-paid-for space under their own control  

·         Commercial e-mail and SMS text message ads 

·         Ads on CD ROMs, DVD and video, and faxes

·         We regulate sales promotions, such as special offers, prize draws and competitions wherever they appear

3.       List some of the forms of advertising the ASA doesn’t regulate?

·         Financial advertising  - this is dealt by Financial Services Authority

·         Fly posting – this is dealt by your local Council

·         Fundraising – this is dealt by Fundraising Standards Board (FRSB).

·         In-store advertising – this is dealt by your local trading standards

·         Medicines – this is dealt by the Medicines and Healthcare products Regulatory Agency.

·         Phone-paid services – this is dealt by PhonepayPlus

·         Political advertising – this is dealt by the Electoral Commission.

·         Products, services and contractual disputes – this is dealt by trading standards. There are many more the ASA doesn’t regulate….

4.       What is a voluntary code?

Voluntary codes represent an innovative approach to addressing the concerns and needs of

Consumers, workers and citizens while at the same time helping Canadian companies to be

more competitive.

5.       What is drink aware campaign about?

They make you aware how alcohol affects your life whether is your health, work and study, social life, relationships or family. And they will be giving you advices or tip on how to either quite for good or balance alcohol with your life.

6.       Who funds the campaign?

The company current being funded over 50 companies, however I going to show you a few:

·         Carlsberg UK Ltd

·         Cellar Trends

·         Charles Wells Ltd

·         Concha y Toro

·         Constellation Europe Limited

·         Daniel Thwaites PLC

·         Diageo Great Britain Ltd

·         E & J Gallo Winery Europe

·         Enterprise Inns plc.

·         Everards Brewery Ltd

·         First Drinks Brands Ltd / William Grant & Sons Ltd

·         Fosters EMEA ltd

·         Frederic Robinson Ltd

·         Fuller Smith & Turner PLC

·         Halewood

·         Hall and Woodhouse

7.       Why would they do this?

They did this because to change the UK’s drinking habits for the better. We promote responsible drinking and find innovative ways to challenge the national drinking culture to help reduce alcohol misuse and minimise alcohol-related harm.

8.       Explain how this relates to Kellogg’s

This relates to Kellogg’s because the article is about junk food and it says World Health Organization figures suggest that up to 177m children worldwide are threatened by obesity-related diseases, and it is predicted that 2.3 billion people over 15 years old will be overweight by 2015. This relates to them because Kellogg’s are health brand their cereals are only two per cent fat and they say it perfect to lose weight.

9.       Explain how it relates to diesel?

This relates to diesel because the models doing crazy things just like the brand they are focus on party people how like to have one night stand and all the other crazy things.

10.   Write a definition and an example of how each of the following pieces of legislation would apply to that example.

A.      SALES OF GODS ACT - The Sale of Goods Act 1979 is perhaps the most useful and relevant to the problems many consumers face when they make purchases on the High Street, online or by mail order. It is worth knowing about this piece of legislation, in terms of what rights you have and how you can resolve the situation, because not all shops can be relied on to act in an honourable or lawful way.

B.      CONSUMER PROTECTION FROM UNFAIR TRADING - They implement the Unfair Commercial Practices Directive (UCPD) in the UK, and replace several pieces of consumer protection legislation that were in force prior to 26 May 2008. The Regulations introduce a general duty not to trade unfairly and seek to ensure that traders act honestly and fairly towards their customers.