The Factors Surrounding the Marketing of Magnetically Powered Products - Research Paper Example

Executive Summary The market research report analyzes the factors surrounding the marketing of magnetically powered products. Marketing mix deals with price, promotion, place and product. In this case, the product is unique, which means it premium pricing strategies can work. However, the pricing strategy should focus on allowing many people to purchase the product. The mission is to provide environmentally friendly vehicles to everyone in the world. The legal-political environment is very strict because of the regulations advanced by government authorities. There are no competitors at the beginning stage because it is an innovation. The economic environment negatively affects purchasing power of consumers if it has high inflation and low employment rates. The product appeals to different market segments, which are families, youths and the old people. The youth would go for flashy vehicles that are unique and popular. Families need safe automobiles that are cheap to maintain. The social responsibility issues are environmental sustainability and public safety. It is not ethical to manufacture vehicles that do not guarantee safety to the consumer. Global marketing can be facilitated by the internet. The internet will allow billions of people to receive information about the product. Introduction Magnetically powered automobiles can be a breakthrough in world where environmentally friendly sources of energy are high demand (Rubenstein, 2001). A market research analysis is conducted to project the performance of a product when it is introduced to the market. The research analyzes the factors that are likely to affect product performance in the market. The report presents a market research for magnetically powered automobiles. The high demand for hybrid automobiles that use electric power is a clear indicator that the industry is craving for efficient sources of energy. It analyzes different marketing conditions that will influence consumers to purchase these automobiles. Marketing Mix The marketing mix includes all the decisions that are made to facilitate the introduction of a product in the market (Lamb, Hair, & McDaniel, 2008). It is all about getting the product in the right place at the right time and with the right price. It also involves promotion. Magnetically powered automobiles are bound to perform well because they are unique. The product meets the customers’ need for a high-efficiency vehicle that use environmentally friendly energy. A magnetically powered automobile will sell itself because of unique ability to use magnets as the power source. Magnetically powered vehicles will be readily accepted in urban centers because of the high purchasing power of the residents. It should be available in remote areas for farmers who use tractors for farming. Magnetically powered automobiles will help save on the cost of buying fuel, which is one of the most expensive products. Consumers for this kind of products can be found in both rural and urban centers. However, the majority of these consumers exist in cities. Pricing is very important in the automobile industry. The purchasing power of many consumers has been heavily affected by the increasing inflation and lack of decent employment (Pasquier & Villeneuve, 2012). The majority of the customers are price sensitive, which means premium pricing reduces the number of potential customers by a big margin. At the same time, environmental enthusiasts are willing to spend on something on environmentally friendly products. Discounts should be offered to encourage consumers to purchase the new range of automobiles. The lack of strong competitors because of the product uniqueness can allow for premium pricing when the product is introduced. However, normal pricing has huge potential because it will attract consumers from all social circles. The promotions for magnetically powered vehicles should target families, working class, environmental enthusiasts and the rich. The promotion should insist on pricing and the benefits that a magnetically powered vehicle brings to the environment. The aim is to impress consumers from different segments. Billboards, TV commercials and direct PR will work well for the product. Environmental Scan The external environment factors that will affect the purchase of magnetically powered automobiles is the unstable legal-political environment, a rough economic environment, and the demographic environment. Economic recessions and rising inflation negatively affect consumer purchasing power. In effect, consumers will avoid non-essential products like vehicles except for people who live in remote areas (Pasquier & Villeneuve, 2012). The number of companies that produce magnetically powered vehicles are very few, which means the market is not concentrated. The pressure from competitors is very little because of the unique nature of the product. Safety issues should all be considered to make sure there are not problems in relation to the legal-political environment. The production automobiles are governed by many laws that focus on safety. The internal environment of the company should be characterized by sound human resource management practices, quality workforce, and good relationships with all stakeholders. A stable internal environment has a positive influence on product quality, which means additional sales. It also facilitates the creation of brand loyalty among consumers. Marketing Segmentation Market segmentation in the automobile industry is guided by age, socio-economic status and gender. The young people who lie between 20 and 30 years old prefer flashy fast cars. The women prefer small cars that are not too complicated. Families focus on getting vehicles that are big enough for the whole family. The older generation will go for any car because they care less about speed. However, the older people tend to be keen on brand. The segment of people aged between 20 and 30 years are likely to purchase the product because it appeals to their need to stand out. Acquiring the latest invention can make them stand out and seem flashy, which is why they will welcome the product. Families will go for magnetically powered vehicles because they are cheap to maintain. Premium pricing can be imposed on the consumers found in the rich segment. These consumers will spend so much on the automobile because it is a new invention, and it is unique. Ethical Issue The automobile industry is governed by ethics that is centered on how the vehicles are made, government regulations and the presence of any hazard. The car company must ensure all these ethical issues are considered to avoid mishaps. The main advantage of the ethical issue is that it aids in the production of safe vehicles (Lamb, Hair, & McDaniel, 2008) (Rubenstein, 2001). It allows the organization to avoid problems with government authorities. Social Responsibility Issue The company should ensure the product helps in achieving important social responsibility issues like environment sustainability. The company is socially responsible for providing accurate production information and putting vehicle safety above all. Environmental sustainability helps improve brand reputation, which positively influences sales. Global Marketing and Internet The internet can reach many peoples at once. The product can be market through internet in well-known websites like YouTube, Facebook and many more. The information about the product can reach millions of people around of the globe within a very short time. The internet offers an opportunity to reach many consumers at cheaper costs and within a short time. The creation of a website will improve the ability of the company to harness the benefits of internet marketing. Recommendations Magnetically powered automobiles are environmentally friendly vehicles that will appeal to a huge chunk of the population. The company should use the unique nature of the product to their advantage. It would be better to implement pricing strategies that focus on different markets. It will help in accessing a huge number of clients within a short time. The long-term effect is the development of brand loyalty. The promotion methods should appeal to all the market segments. Cost reduction has a huge impact on the success of the product. References Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2008). Essentials of marketing. Mason, Ohio: South-Western; London: Cengage Learning [distributor], Pasquier, M., & Villeneuve, J.-P. (2012). Marketing Management and Communications in the Public Sector. New York: Routledge. Rubenstein, J. M. (2001). Making and Selling Cars: Innovation and Change in the US Automotive Industry. Baltimore: Johns Hopkins Univeristy Press. Read More