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Both the increase in market share and increase in marketing are shown in the following chart.
The first reaction of some, as a result to Kellogg’s increase in marketing expenditure, would be to subsequently increase one’s own budget proportionately as well. This would be a knee jerk reaction and would probably show some effects. However, we should view the decrease in sales of 12% these past two quarters as an opportunity to re-tool and redesign the marketing plan. As it was stated, the marketing plan, in general, is made up of 3 areas: trade deals, advertising, and premiums. For the most part, representatives from each of the three areas believe their field is the best to invest into and make strong arguments to that effect...
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