In this section of ‘introduction to marketing’ I will be talking about and describing the different types of Market research that uses in order to have its marketing plans developed and contributed Towards.
Which of the methods of marketing research used by Kellogg’s and internal, and which are external? Internal marketing:
Previous marketing research
Questionnaires and Surveys
Sales Figures for the businesses own products:
Kellogg’s keep records of their past sales figures per annum. These figures can point out key flaws in the businesses structure and so therefore, can help them when deciding what has to be changed for the better of the company. At the end of the year can check the sales figure of that specific sector. If the numbers are high, then they can leave it as it is; but if they are not, then the figures have just given the company a grand decision to make. They can either invest a lot of money to improve that sector of the company or, they have the choice of shutting that Sector down permanently.
Carrying out marketing research to the company could give them information about their own company on how well they are running it and how much profit they can make a year or a month. If they don’t do a research about their company they will not know how well they are doing in their company regarding the results of their sales. This information which is used for Kellogg’s to run has the same information which is best for their business ideas.
Questionnaires and surveys:
Questionnaires and surveys is a part of primary research, which is a crucial part of developing a business. Questionnaires and surveys are good ways of gathering information from the general Public. This information can include whether or not they like the company at that moment, if they like the products and prices. In order to get reliable results, it is wise to survey people in fairly large numbers and also, to survey representatives of your target market. This surveys and questionnaires could tell how the company is from the feedback from the customers. The company has used this way of marketing to show and prove that it is the only best company to provide the best cereals and snacks which is good and has been running for several years.
Interviews and focus groups:
Interviews and focus groups can also be called primary research. These methods of primary market research are extremely good for finding out people’s opinions about your company. Since these are face to face methods, it is more like getting critical feedback on what needs to be improved and what can stay the same. This method is a lot more helpful than giving out surveys to unknown people, because people can lie or not be serious about their answers, and it can be those answers that can make the company believe that they need to change. Gathering this type of information is also justified by the interview.
This type of research can be useful when trying to pitch an idea for a new product, or when you are coming up with new marketing initiatives and want to test reactions to refine your approach. Such as Kellogg’s this method would be good. Because now the company they are running is not small company it a worldwide company. If the company could have interviews on the employees this could make the people in the company know how good they are and how fit they are to do the work. Knowing how good the employee is could at least make the company better the customers would get a good expression on how the workers and the company is.
Previous market research
Previous market research is another word for secondary research. By far the most widely used method for collecting data is through secondary data collection, commonly called secondary research. This process involves collecting data from either the originator or a distributor of primary research. In other words, accessing information already gathered.
Websites are a very good example of secondary research. Any type of internet surfing is basically gathering information that has already been discovered. On websites, you can find information on anything you want, and all of it will be second hand. The information was put there primarily by the originator and now since it has been used for many things (papers, definitions etc.) it becomes secondary and used. Websites are the only place where people could come to know about what the company is about and how well are they doing.
Books and newspapers
Books and newspapers are the good example of putting information about their companies. This is the best idea for people to know about the company and how well is it running at this time. The company usually puts a lot of information which could sometime not be related to the business that they are doing. In newspaper they put all king of their new released snacks and cereals images to let them know that they have improved something new for all people. Putting information in the papers is the most popular place for people to know about it. Doing well posting information about the company is not so good, by showing it how it is, It would be a pleaser for the company.
If you hand out questionnaires or surveys based on regions or towns, then you can possibly place your products in nearby shops, as you found out that many people like them. Even there will be a benefit for them to build more stores in other places. In order for that to happen they should build many stores in certain areas which could make the company popular. If it is not a popular company there will be no use of running it in only one area.
Again, by the results of surveys and questionnaires, plus interviews and focus groups with potential customers, you can deduce what the public crave and then start developing that product. This can include, widening Innocents market, adding new flavours and mixes, or even producing more stock on a certain product.
From a national census, you can figure out the average income of customers and the general population. From these figures, you can then set out a reasonable price that will be suitable for all to afford, and at the same time, high enough for Kellogg’s to reach and go over its profit margin from last year’s sales.
For a company such as Kellogg’s is now there is no need to promote it much, as it is already a pretty well known company. But, when it was starting, it would have had to promote itself quite a bit. They could have done this by putting adverts in newspapers, TV, and even internet websites, Internet. I believe it is the best method for Kellogg’s as they can check people’s opinions on how they promote their products. There are critique sites that they can visit, in order to see is their promotional methods are outdated or doing the job. They themselves can also promote on websites such as Twitter or Facebook, as they will know that these are the most common social network sites that people visit on a daily basis. Doing this will increase the awareness of the company and will also tell customers about great deals that are currently happening in stores. These are very important words for a company to understand them and use them correctly.
Over here if the company has connections to the political parties it could give them good support for their business. They can even have special permission to run any business. The company should have support from the political parties because when they are need of help no one give them as the political party leaders could give them .They could reduce the tax payment for the company. These political parties could be a benefit for their business from having any problems or fight. Here government regulations and legal factors are assessed in terms of their ability to affect the business environment and trade markets. The main issues addressed in this section include political stability, tax guidelines, trade regulations, safety regulations, and employment laws.
Through this factor, businesses examine the economic issues that are bound to have an impact on the company. This would include factors like inflation, interest rates, economic growth, the unemployment rate and policies, and the business cycle followed in the country. This economic culture is useful for their company in any ways. This is because it has a correct cycle of how to run a business. In other conditions people run businesses in their own ways which they make many mistakes and lose profits instead of getting them. If they have financial circumstances they should depend on the interest cause that’s the profit they are going to make. This could even test their businesses values and sales they are doing per year as this cycle is very useful for every business.
With the social factor, a business can analyze the socio-economic environment of its market via elements like customer demographics, cultural limitations, lifestyle attitude, and education. With these, a business can understand how consumer needs are shaped and what brings them to the market for a purchase. Social networking is one of the best ways for the company to become popular. Through these social work it is helpful for the company to become famous and good. From social work this could also lead a better way of helping other in providing few free goods. Helping the other company by sharing your company goods will be a bad impression to the people. As few think that these people are social workers. But its not the right way to do it. Sharing few free goods to the customers is a good way of social; working in the company.
How technology can either positively or negatively impact the introduction of a product or service into a marketplace is assessed here. These factors include technological advancements, lifecycle of technologies, the role of the Internet, and the spending on technology research by the government. Technology is the other way to make the work easier and better. Without technology they would be no customers in the shop.Ex- Having cash machines and cctv cameras. This technology is also useful for customers in the shop suppose if they lose their objects in the shop ex-cctv could help them, find what they are missing.
The company I’m talking about is Kellogg’s. They and their advantages. Their advantage in their company is they make a big profit than all any other than cereals company. Kellogg’s is now leading at the top position because they have the best cereals made all this years. They make a profit in their business in what they are providing.Kelloggs can do better than any other company because people already have tasted the cereals and snacks sold to customers.Its a popular brand which is known all over the world. At this time Kellogg’s usually reduce the prices as at few festival times. They can do better in selling the products in lower prices. People in the market buy products from us because it is due to the popularity and sales. It is easy to tell that it is popular but the main thing depends on how good the product is. These are our strengths that the customers look forward in buying our products.
Kellogg’s is known all over the world. If they could make a change in their products like inventing new types of healthy cereals and snacks this could be one reason for the company to improve.So,automatically when the new product is released many people will know that it was just released which could be good than the other products like cereals or snacks. But in one condition the company should avoid stuff like adding some junk to the snacks or cereals when making it.If the customers know that the company is not avoiding few junk materials this company could be sealed or no customers would buy products from this company. The people coming to buy our products see small shops or less products as a weakness. Because when the products are over or not there what they want this could tell them that the company isn’t having certain items what the people want.Not having the exact date products and exact required company products could make loss in their company as well as they make loss in their sales which is bad for a business to happen like that.
The company can spot many opportunities because they make a big profit, they could open many store in many different places.opportunities for them are likely in many ways.They can do whatever they because they have enough money to open as many stores as possible.There is also a chance from them to open a business other than the same company like opening a new company from the money that is left with them.
Getting new products which few times don’t attract customers this is the problem that happens to the company.At few times the opposition tells bad about the good company who are making better profit than any other companies.This threats happen rarely when suppose a new product is being released.In this case few companies do not have the money to buy the costliest and the latest products.
M2: Limitations of Market research- effectiveness and validity of data collected
Kellogg’s have all their sales accounts up-to-date information.
For Kellogg’s gathering and processing data can be very expensive. In this case many organisations like diesel may lack the experts to conduct extensive surveys to gather primary data,. This is the major problem whatever the potential benefits are and also lack the funds to pay specialist market research agencies to gather such data for them. In these cases, Kellogg’s organisation may be forced to rely on data that is less than ‘perfect’ but that can be accessed more cheaply.
Organisations like Kellogg’s and diesel are often forced to balance the need to build up as detailed a picture as possible regarding customer needs. Against the desire to make decisions as quickly as possible, in order to maintain or improve their position in the market
Reliability of the data
The value of any research findings depend critically on the accuracy of the data collected. In Kellogg’s they check that the data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biased interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary if poor decisions and expensive mistakes are to be avoided.
Legal & ethical constraints
The data collection for all the business is a good example of a law that has a number of implications for market researchers collecting and holding personal data. For instance in Kellogg’s and diesel researchers must ensure that the data they obtain is kept secure, is only used for lawful purposes and is only kept for as long as it is necessary. It must be made clear as to why data is being collected and the consent of participants must be obtained. In addition to this, there are a number of guidelines, laid down by such organisations as the Kellogg’s and diesel Society, that, although not legally binding, encourage organisations to behave ethically when dealing with members of the public.
D2- product launch failure:
In Kellogg’s there are total of 30 to 40 products which have been closed down which has been discontinued. The problem for them to close was they did not have the money to launch the products. Few of them were sent back to the company because the customers did not like the product named Razzle Dazzle, Rice Krispies,Treats Cereal, sugar Stars, Stars, All-Stars cereals, Strawberry Rice Kris pies and Strawberry Splits these are few products which were closed down .There are many products which were rejected by the customers to launch it. This happened 3 years back. But now the products they release is better than before. Customers like the products that have been newly released. Kellogg’s is, of course, a mighty brand. Its cereals have been consumed around the globe more than any of its rivals. Sub-brands such as Corn Flakes, Frosties and Rice Krispies are the breakfast favourites of millions. In the late 1980s, the company had reached an all-time peak, commanding a staggering 40 per cent of the US ready-to-eat market from its cereal products alone.
By that time, Kellogg’s had over 20 plants in 18 countries worldwide, with yearly sales reaching above US $6 billion. However, in the 1990s Kellogg’s began to struggle. Competition was getting tougher as its nearest rivals General Mills increased the pressure with its Cheerio’s brand. Kellogg’s management team was accused of being ‘unimaginative’, and of ‘spoiling some of the world’s top brands’ in a 1997 article in Fortune magazine. This is how the company contributed failure the company has been looking at alternate product categories to counter poor off take for its breakfast cereal brands in the Indian market. Meanwhile, the Kellogg main stay – breakfast cereals – has seen frenzied marketing activity from the company’s end. Acknowledging the relative failure of these brands in India, Kellogg’s has come up with a new strategy to establish the company’s brand equity in the market. If it can’t sell cereal, it’s going to try and sell biscuits. The news of this brand extension was covered in depth in the Indian Express newspaper in 2000.
The company in order to improve should start making new products which the customers recommend. This is the only one way for them to make their organisation develop. Secondly they need to avoid bad products like adding artificial food colours to the food which could affect the customers health. Thirdly reducing the prices what the customers would prefer to buy at a certain price. This three types of ideas could maker they company better than before. I would prefer the company to add more new products like cold drinks. This is the best option for them to develop their company including drinks. Customers will be surprised if they create cold drinks and milkshakes. New products are the keys for the company developing.