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.
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