The Concept of Market Orientation at Nissan Motors Company - Case Study Example

The concept of market orientation at Nissan motors company Executive summary Having been accepted by various market researchers as an imminent concept in understanding the market trend, market orientation embraces the best strategies that marketers should employ to succeed in their promotions. It is, therefore, intentional for the marketers to understand variations in market orientation before choosing the vital elements that induce market demand. Due to the current competitiveness in business and digital transformation, customers are forced to consider only those products that they believe would satisfy their demands. As such, customers are availed by numerous alternatives to choose from, if they get convinced that a product from one company sells at a fair price, then they will buy from the best competitor. Introduction Marketing is one of the business concepts that have undergone many transitions to its current level. Some business enterprises consider many factors as essential elements necessary to the success of a business. This is on the contrary to the motor companies where customer is the key anchor to business operations (Berndt, 2004). Based on Nissan Motor Company, this paper determines how the business carries out its orientation in accordance to the market share other than using the idea of customers as the only way to insinuate marketing options. It, therefore, compares and contrasts the variation between market orientation, product orientation and sales orientation. Market orientation has since drawn mixed reactions either directly among the partisans or among the stakeholders. In regardless to any other factor that is perceived important to have an impact on the business, performances have received much attention. Initially, market orientation was being contrasted to some of the internal factors such as production or sales. However, market orientations usually outdo other forms of orientation. As long the three forms of orientation indicated above correlates to each other, they still lack of appropriate data, as to whether they should be accepted as the best business orientation (Harrison, 2012). Product orientation With product orientation, the company believes in the production of quality substances with a motive that the products will draw the attention of the customers. Such companies have entrusted the superiority based on quality products as the mode of attraction that would automatically make the customers like the product. Therefore, companies become overreliance in mass production as an alternative to increase their economies of scale. Moreover, organizations that have implemented the use of product orientation are subjected further to do away with the issues of product efficiency as this concentrates mainly on the design and quality. However, any organization that has lost keen interest on the product design is susceptible to derail the attraction perspective of the customers. On the contrary to sales orientation, Product orientation relent minimal focus on the product under promotion. Moreover, this trend of product promotions is characterized by the perception that the organization should use very little or no amount of money in promoting their goods and services. As such, the company carefully cultivates the value of the product in the minds of the customers thus draw their attention that the company’s products are better than products of fellow competitors (Klopper; et al, 2006). Sales orientation About sales orientation, the companies relay focus in production, sales and distribution to the customers. In accordance to sales orientation, the company only makes production of what they believe is of high potential to the customer without conducting adequate research. This is on the contrary to the usual product development process that requires prior research on what the customer demands before it is developed then followed by a thorough promotion (Paul & Kapoor, 2008). This orientation focuses in persuading customers to buy the product as one of the best ways of generating sales return. With respect to this form of orientation, much force is placed on advertising as a way of sensitizing the need to increase sales return. Despite the fact that sales orientation does not carry out the research to determine what the customer requires in a product, it supplements this with rigorous advertisement that targets to increase the ability of the sales. In this case, the product and the quantity of production do not relate to the customers in a way. Sales oriented businesses are always characterized by promotional activities on specific products of the company that has already existed. More to this, the business places design an advertisement budget right at the production point. This orientation may be sustainable in the short run because, the more customers get to understand the product does the need to improve on the quality surfaces (Paul & Kapoor, 2008). Market orientation Market orientation business recognizes the need for incorporating all the customers demand in the design of a product. In such a case, all the activities constituting a product are based around the needs and wants of the customers. Moreover, the implementation of market-oriented strategy starts right from the market research, passed through the development process to sale when the product actually reaches the customers. A market-oriented business continuously envisions research as a development process with a perception to produce only what is dimmed fit to the customers (Kyriakopoulos, 2000). According to Kurtz (2013), several researches have pointed out that there is positive evidence resulting from market orientation and performances in various organizations. However, clear adaptation concerning the effect of market orientation to the business emphasis has not been identified. This has also extended to small business enterprises that only focus on the energy to produce efficient products other than market-oriented performance (Kyriakopoulos, 2000). Consequently, most marketing researchers have pointed out that marketing oriented approach while emphasizing on the innovative capabilities of the product is a propounded energy to the realization of sales and adequate returns in production (Kyriakopoulos, 2000). Marketing concept of Nissan motor limited Since Nissan Motors ventured into the business of automobile, it has undergone various expansive stages to becoming the second best selling motor company in the whole world today. On the contrary, to most organization in the automobile industry, Nissan motors use market orientation as their way of ensuring sustainable returns throughout all seasons. Having incurred losses in the period 1990s, the company resorted to doing thorough research before coming up with a particular marketing model. For instance, the company opted for the production of small cars such as Maxima and Sentra, which are cost efficient to the customers in terms of comfort and safety. Through its strategic plan Nissan power 88, the company managed to uplift its profit margins by producing various brands including SUV, pickup track and an electric car Nissan Leaf that has zero emission into the atmosphere (Feser, 2012, Pride & Ferrell, 2006). Nissan motor has also indicated the implementation of market orientation strategy by showing its concern to the environment. Through its mission, this states that whatever is good for the public must be good for the planet and is good business. This is a clear demonstration that the company has taken an active role in doing research to ensure that all the stakeholders benefit in their pursuant to improve sales volume. Moreover, with anticipation from the state future requirements of environmental sustainability, Nissan has taken adequate measures by implementing the right vehicle-emission standards as one way of indicating to the customers that their products are on the right track. Consequently, the organization has carried out several researches towards production of green" technologies” including clean diesel, hybrid and fuel cell vehicles because they believe that is the future trend for customers and would finally improve on sales margin (OECD,2002, Mikler, 2009). Part II Marketing of Nissan Leaf After years of trade in the automobile industry, Nissan motor company carried out several researches and launched an electric car on august 2009 Nissan Leaf. The launching, which took place in Japan, recognized leaf as one of the most affordable electric vehicle in the world. Nissan leaf forms among the very first car in the world that has a complete zero-emission into the atmosphere (Bryce, 2011). Before getting a resolution to manufacture Nissan leaf brand, the company undertook various research on environmental sustainable products including fossil fuel, clean diesels and fuel cell vehicles strategically to protect the environment. While playing a positive role in its product development and promotion through launching of Nissan leaf, the company played a vital role using the following four (4ps) marketing variables (Noel, 2009). Product marketing mix Putting into consideration the entire requirements needed to improve the unit of sales, Nissan leaf cars have been the product of choice for many people. Nissan leaf has been classified as a special product because its assembly constitutes unique body parts while its marketing embraces much research regarding both the customer and the environment. Nissan leaf mode of advertising mainly focuses on building the natural image of the product. It falls among the products with limited line because it is mainly produced for an imminent special function (Weihrich & Koontz, 2013). With respect to specialty, Nissan leaf is limited to preference of color and interior design. However, while cultivating to be the best product in the market, the company has embraces unique capability by marketing the product through its unique name Leaf. This simply shows how the organization is concerned about the environment. The name Nissan-leaf is considered as a product of twin branding. For instance, Nissan represents reliability of the organization while Leaf indicates efficiency that the products deliver by its coverage in miles besides an offering warranty on batteries of up to five years of usage (Mike, Nd). Nissan leaf is also engages in product sampling as a way of improving its sales margin. In essence, the organization uses dollars currency while undertaking charging, paying for insurance charges to its customers who have made purchases in Europe and allowing customers to come for service maintenance during specific periods (Ireland et al, 2012). Price marketing mix According to Nissan power plan 88, the organization plans to reduce the cost of production by 5% in 2016 while increasing the profit margin turnover by 40% through production of low cost efficient and eco-friendly Nissan leaf. This plan, however, finally came into success when Nissan leaf started to sell at $6000 much less than the other initial cars. The production manager who admitted that, even when federal tax is added to the cost of this model, its final cost would still come to approximately $18,800 later confirmed it. In places such as Arizona, the product is fetching incentives from the government due to its total commitment to zero-emission of waste to the atmosphere. While comparing the cost of Nissan leaf to the other electric cars like volt, it looks extremely lower and does not allow for comparison due to cut off in price. This has been attributed by the fact that Volt covers 35 miles with a fully charged battery before being supplemented by gas power while Nissan leaf covers up to 75 miles with a complete-charged battery before recharging for 15 minutes to proceed with the session (Scott, 2013). Nissan leaf has consistently improved its sales margin due to increase in value recognition and low cost. For instance, the company was expected to make a loss in 2010, but instead had its units shot up by 50% when it expanded the range of dealership. By the end of 2010 period, the company also managed to increase the sales unit by 22%, this amounted to a sales volume of 27,000 units that later increased by 1.5% in the subsequent year (Scott, 2013). Promotion marketing mix Nissan leaf while targeting to completely change how the world views the perception of the automobile industry, with a complete zero-emission of carbon into the atmosphere and through the leaf model, consumers have since found major changes in their way of life and driving habit of 100 miles after a simple charge. As part of its promotional strategy, Leaf has gained tremendous strength by being completely different from the other hybrid cars. It utilizes complete electric charge for propulsion with no supplements such as gasoline or diesel generation completely no emission into the atmosphere. Besides, the model produces 100% electric torque resulting into a higher acceleration with no slag. Moreover, being electric in nature, Nissan leaf produces no sound and its movement may not be felt because it does not incorporate the use of fossil fuel as compared to other electric models such as volt, and, therefore, they is regarded as virtually silent (Baker, 2012). The company has also based its promotional strategy on the fact that its engine system is very simple and would require less repair compared to the other engines that burn petrol or gasoline. This has been attributed by the fact that, Nissan leaf’s engine has very few parts, which are in motion that otherwise translates to fewer breakages in the end. Beside, the buyers enjoy the tax credit advantage of up to $7500 as a rebate from the government for having purchased a car that is environment friendly. This gives more courage to the customers to buy the same model so that they enjoy the incentives given by the government (Larminie & Lowry, 2013). Placement marketing mix of Nissan leaf In accordance to placement marketing mix, Nissan leaf has put in place all the necessary mechanism pacing ahead of the other local brands. In essence, Nissan leaf model is devoted to zero emission of carbon waste into the atmosphere. This has given the company more advantage over the other companies due to its potential recognition from members of the society, by the federal government and the customers who feel that the reduction of carbon dioxide emission into the atmosphere is healthy for the environment (Rirdan, 2012). The Nissan leaf has the potential to deliver a driving range of up to 160km with a single charge substituted by a 10min charge and can still drive further for an additional 50 km. Besides, leaf can be easily charged at the homestead for a duration of 8 hours only making it more simpler to be charged overnight before being used during the day. Consequently, Nissan strategies have proven to be very affective since their advertisements are based on television or YouTube, which are easily accessible by the majority. Nissan leaf’s advert targeted middle-income earners putting it strategic to the improvement on sales volume. Besides, since mid income earners forms majority of the population, it gives the company and an impressive intention of a higher sales volume (Edmonston, 2012). Conclusion The Nissan motor company has made much efforts in trying to win the heart of customers as one of the best motor company in the world. Featuring second after Toyota Company, Nissan has incorporated the use of marketing orientation as its best strategy to market its models in the market. 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