Marketing
Essay Preview: Marketing
Report this essay
Marketing
Market research is a very important component of a companys success. At Kudler Fine Foods (KFF), the marketing mix of product, price, place and promotion has the capability of creating new opportunities for the new catering service they will be providing to their customers. In this paper, I will asses the relative value of the two pieces of market research found on Kudlers intranet site. I will also explain the components of the marketing mix and how Kudler should determine the products they want to offer and determine how the pricing should be in relation to competitors. I will then discuss what the term place means in terms of a catering service and how they might promote this new service. Finally, I will describe how technology is affected by the target market and if the plan for the new catering service goes through, how it will go together with the new decision to use local organic growers.
By definition, “marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions,” (Kerin, Hartley, Berkowitz & Rudelius, 2006 p. 10). The overall purpose of such research is to “identify and define both marketing problems and opportunities and to generate and improve marketing actions,” (Kerin, Hartley, Berkowitz & Rudelius, 2006 p. 10). The marketing research conducted by Kudler in 2005 and 2006 helped Kudler to understand which areas were satisfactory to customers and which areas needed improvement. By conducting these customer surveys, Kudler was made aware that in 2005, the percentage of customers who were pleased with the hours of operations, were in the “agree” category. The numbers in this category for 2006 remained close, with one difference: there were 1.45% of customers who were not pleased with the store hours. In 2005, the survey results reflected that of 64 customers, roughly 85% found the stores dД©cor atmosphere and decor appealing, but in 2006, of 69 customers, the numbers dropped to roughly 81%. These surveys are important to Kudler in that they are making the store managers aware of the need for improvements in the stores hours of operation and decor in order to retain existing customers as well as potential ones. Kudlers surveys showed a slight to steep decline in customer satisfaction in several other areas such as satisfaction with the merchandise available and the value for the money.
In order for Kudler to determine the market for a new catering service, they must first determine their target market. Once a target market has been decided, Kudlers marketing department must then figure out how to satisfy the target markets needs. To do this, they must figure out the product (the service itself), the place (how to get the product to the consumer and how many locations), the price (how will the customers be charged) and the promotion (how to advertise the new catering service to customers). This marketing mix is very important to the success of Kudlers catering service because these components are controlled by Kudlers marketing department. The marketing department is responsible for collecting this information in order to come up with a strategy that will appeal to customers on all levels.
One way for Kudler to determine the products that will be offered to customers is for them to look at their frequent purchase program. This information will give them the necessary data that they need to determine customer purchase patterns. By having the sales and purchasing departments working together, they will be able to make adjustments to the new and existing products they offer the customers in order to better reflect their customers needs. The results of this data will let Kudler know which items are sold frequently and in what price range. By determining the products frequently sold, Kudler would be better able to know which products customers would be most likely to place orders for. This information also helps Kudler to know whether or not the company should continue purchasing the product or not.
Benchmarking is one way for Kudler to determine what its pricing should be in relation to other catering companies. Kudler needs to look at other catering companies around the area in order to understand how much customers are willing to pay and what services they are being offered. Should Kudler choose to set their prices on the higher end, they must decide exactly what extra services they will offer in order for customers to feel they are getting their moneys worth. At Kudler, discounting prices for products and services has never been the primary goal. Instead, delivering exceptional quality products and services has always been the companys goal and their customers have always been willing to pay for them. Rather than offer discounts to their customers, Kudler will instead offer points which can be redeemed for items such as airline first class upgrades and high end gift items.
In terms of a catering service, place is a very important component. Kudler first needs to decide where they want to set up the new services. Since it should be easily accessible to potential customers, Kudler must decide if they want the catering service set up in the stores, or have their own separate areas. If the catering services are to be kept in all three stores, the time factor needs to be considered for finding a spot in the stores and renovating if necessary.