These include diversification where the organisation effectively enters a new market. Tesco have done this where they have gone from just selling products in their shops to selling petrol, insurance and having their own mobile network. Kellogg’s have also done this as they have gone from selling cereals to selling cereal bars, ready to eat cereal with milk and they have recently introduced crisps through their Special K range. Kellogg’s will develop their products, they would have gone from just selling the cereal Frosties to then selling Frosties cereal bars and the Frosties that comes with milk so it is ready to eat. Tesco will also develop their products and they will do this by having more than one product so that the customer can choose from a range of items.
Organisations will develop in the market. Tesco would do this by ensuring that they have a big supermarket in each covering area of a certain size of population, as well as having your local community stores (Express) and the city/town centre stores (Metro).
Kellogg’s will make sure that their products are always available by supplying them to stores and they would make a deal with organisations such as Tesco where they would say that each Tesco store would stock Kellogg’s products.
Ansoff used these four categories in a matrix to show how the opportunities differ in terms of new and existing products and markets. Survival strategies Kellogg’s and Tesco have both established a national brand with products that are seen to be of a certain quality. These products are also seen to be reasonably priced as they aren’t the most expensive and are also not the cheapest but that is because there is a quality to their products. They try to back this up by advertising on TV, radio and in newspapers.
The Essay on Marketing Pricing Objectives Products And Selling
Pricing objectives are goals that describe what a firm wants to achieve through pricing. Pricing objectives must be stated explicitly, and the statement should include the time frame for accomplishing them. There are six stages of setting prices. They are developing pricing objective, assessing the target market's evaluation of price, evaluating competitors' prices, choosing a basis for pricing, ...
Both organisations are seen as a brand you can trust and they are name to sell a wider variety of products. This is shown where Kellogg’s have started to sell crisps and Tesco sell insurance and flowers etc. so therefore they are using the trust of the brand. Branding is important when you are influencing the buyer as a strong brand will stick in a buyers mind. Once a brand has built strength it can take the business into a wider market with less risk of failure as if a customer has a good opinion on a brand then they are likely to try their new products.
marketing relationship building with the target customers">relationship marketing This is based on keeping customers happy rather than just concentrating on the sales of the organisation. And that is the difference between relationship marketing and transactional marketing; relationship marketing is keeping the customers happy and transactional is where the effort is being made to focus on sales. A lifetime customer is invaluable to an organisation and you know that if you don’t screw up you will keep these customers.
An example of an organisation screwing up is when it came out that Tesco had been selling products with horse meat in them. This meant that Tesco would have lost some of their valuable customers as they would no longer trust them. With a lifetime customer you don’t have to do much to keep them happy as they already trust you and they just want you to continue delivering a good service to them. This is different with customers who change organisations regularly as you would need to do more work on them such as adverts and sending the customers offers to try and win them over.
The Essay on Branding in Product Marketing
Short explanation of why brands have become a critical issue in product marketingBrand is defined as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting ...
