Marketing Principles - Report Example

Marketing Principles Table of Contents Table of Contents 2 Introduction 4 Understand the Concept and Process of Marketing 4 1 Explain the Various Elements of the Marketing Process 4 1.2 Evaluate the Benefits and Costs of a Marketing Orientation for a Selected Organization 5 2: Be Able To Use the Concepts of Segmentation, Targeting and Positioning 6 2.1 Show Macro and Micro Environmental Factors Which Influence Marketing 6 Strengths 6 Weaknesses 6 Opportunities 7 Threats 7 Political Factors 7 Economic Factors 7 Social Factors 7 Technological Factors 8 Environmental Factors 8 Legal Factors 8 2.2 Propose Segmentation Criteria to Be Used For Products in Different Markets 8 2.3 Choose a Targeting Strategy for a Selected Product/Service 9 2.4 Demonstrate How Buyer Behaviour Affects Marketing Activities in Different Buying Situations 9 2.5 Propose New Positioning For a Selected Product/Service 10 3: Understand the Individual Elements of the Extended Marketing Mix 10 3.1 Explain How Products Are Developed To Sustain Competitive Advantage 10 3.2 Explain How Distribution Is Arranged To Provide Customer Convenience 10 3.3 Explain How Prices Are Set To Reflect an Organisations Objectives and Market Conditions 11 3.4 Illustrate How Promotional Activity Is Integrated To Achieve Marketing Objectives 12 3.5 Analyse the Additional Elements of the Extended Marketing Mix 12 Conclusion 13 References 14 Introduction With the changing lifestyles of customers, the modern era has witnessed an increase in the marketing activities utilized by contemporary organizations to maximize profitability and enhance customer satisfaction. Marketing can be considered as the process by which organizations are able to attract and cater the demands of customers through utilization of techniques such as advertisement and market research (Silk, 2006). Ford Motor Company (FMC) identified as Ford is a company that has made effective use of marketing tools since its inception until date, which has enabled the company to ensure success (Ford Motor Company, 2014). Hence, the aim of the study is to focus on the importance of marketing and procedures that assist the marketers of Ford in the deliverance of quality performance for optimizing customer satisfaction. In addition, the study intends to discuss the various elements involved in marketing process, further outlining the importance of marketing concepts such as Segmentation, Targeting and Positioning. Finally, the paper would discuss various factors undermining individual elements of the extended marketing mix that can be utilized by the marketers to gain a substantial market share and establish itself as a market leader. 1: Understand the Concept and Process of Marketing 1.1 Explain the Various Elements of the Marketing Process There are a number of elements in the marketing process, first one being the corporate objectives of the organization. Ford has a corporate objective of developing and establishing a positive culture and deliverance of innovative products to the customers. Ford must ensure that the goals and objectives are specific and attainable, which can be easily achieved by the company to ensure success. Another important element of marketing process is the Marketing Audit, which includes information regarding the past performance, marketing tasks as well as the future course of action that can taken by Ford to ensure success. Furthermore, Marketing Audit of Ford would include the list of automobiles sold by the company, the market share of the company in the home and host nations of operations and the profit margins determined by the company in those nations (Ford Motor Company, 2014; Czinkota & Ronkainen, 2006). Environmental analysis is another marketing element that is used by Ford to gain a comprehensive understanding of the company’s external environment factors affecting its business operations. This includes political, economical, social, technological, environmental and legal factors undermining Ford’s external business environment. SWOT analysis is another prominent marketing element that is utilized by Ford to determine the internal as well as external factors surroundings its business operations including strengths, weaknesses, opportunities and threats that have a strong influence on the performance of Ford. Marketing mix is another marketing element used by Ford that includes assessment of products i.e. automobiles offered by Ford, apart from the prices that Ford determines to sell its products. Furthermore, marketing mix used by Ford also includes place of sale determined by the company to market its products and the various promotional techniques used by the company in the process of marketing (Czinkota & Ronkainen, 2006.). 1.2 Evaluate the Benefits and Costs of a Marketing Orientation for a Selected Organization Marketing orientation refers to the process of implementing the concept of marketing that majorly focuses on the customers. Ford has successfully made use of marketing orientation that has enabled the company to enjoy a number of benefits including satisfaction of the customers’ needs and preferences, increased sales, establishment of long-term profitability and customer relationship. This would also include costs effective production by Ford and its enhanced growth in sales, which would in turn, establishes long-term relationship between Ford and its customers (Singh, 2004). Although there are a number of benefits associated with marketing orientation, however, Ford faces a number of costs involved in marketing orientation, such as inability to cope with the changing customer demands and difficulty in understanding customer perceptions regarding the products. Furthermore, huge investments made by Ford for the purpose of marketing research may act as another potential cost for the company, as it involves huge costs (Ford Motor Company, 2014; Kyriakopoulos, 2000). 2: Be Able To Use the Concepts of Segmentation, Targeting and Positioning 2.1 Show Macro and Micro Environmental Factors Which Influence Marketing Micro Environmental factors comprise of various factors such as competitors, customers, suppliers, amongst others, who have an influence over the marketing of Ford. Strengths One of the micro environmental factors that have an affect over the company is suppliers, who provide raw materials to Ford, in terms of automobile components. Customers of Ford can be considered another micro environmental factor that consists of potential purchasers of Ford (Ford Motor Company, 2014). Weaknesses Competitors also act as micro-environmental factor since they are considered rivals of Ford, who might pose a challenge for Ford’s business operations (Blythe, 2013). Furthermore, Ford faces the weakness of being a low-end car manufacturer, with reduced innovative efforts (Ford Motor Company, 2014). Opportunities Ford enjoys the opportunity of having enhanced brand awareness across the globe, apart from lowered levels of debts (Ford Motor Company, 2014). Threats Fords has the potential threat of facing fierce competition in future, with a global slowdown in car sales (Ford Motor Company, 2014). Macro-environmental factors of Ford are those that have an impact on the micro-environmental factors, consisting of economic, demographic, technological, political and cultural issues. Political Factors Political factors inhibited by the nation of operation, can be considered as another macro environmental factor that will include the affect of government policies and changes in existing taxation laws (Havaldar, 2005). Economic Factors The economic factors affecting Ford would include the purchasing power of customers, their level of spending, amongst others. Ford can also be affected by the economic factors consisting of the demographic factors such as age, gender, and occupation of the customers (Havaldar, 2005). Social Factors Another macro environmental factor that might have an impact upon Ford is the social factor, which encompasses the attributes, preferences and values of the customers that play a key role in determining Ford’s sustainability and success in the home as well as host nations (Groucutt & et. al., 2004). Technological Factors Technological factors surrounding Ford, such as changes in the technology, increased market opportunities and rate of innovation, might also have an impact upon the company’s market operations and business decisions (Havaldar, 2005). Environmental Factors Ford constantly strives towards the achievement of organizational goals by providing due consideration to the environmental factors such as environmental degradation that might hamper its business operations in the future (Havaldar, 2005). Legal Factors Legal factors such as governmental laws existing in the nations of operations have an effect over Ford’s business. In this regard, the company is needed to perform operations in accordance with governmental policies (Havaldar, 2005). 2.2 Propose Segmentation Criteria to Be Used For Products in Different Markets Market segmentation can be carried by Ford based on a number of criterions that would include factors such as geographic, psychographic, behavioural and demographic segmentation. Ford can utilize different segmentation criterions in different nations of operations such as geographic segmentation that focuses on market segmentation based on geographical location, area, region and other geographical factors. Demographic factors would include segmenting market based on income, occupation, age and nationality of the customers. Psychographic segmentation would include factors such as lifestyle and social class of the customers, apart from the behavioural segmentation, which would encompass factors such as user preferences, their status in society and their attributes towards company’s products and services (Dibb & Simkin, 1996). 2.3 Choose a Targeting Strategy for a Selected Product/Service To establish itself as a prominent market player and attract the attention of customers, Ford needs to utilize a target strategy that would allow the company to target a particular market segment and ensure customer loyalty. Targeting refers to the process of selecting and focusing upon a particular market segment at a specific point of time, which can be categorized into differentiated and undifferentiated targeting strategies. Ford has made use of the differentiated targeting strategy, as it aims at providing unique products and services to different market segments. Alternatively, Ford can utilize the undifferentiated target strategy, which can help Ford to target the whole market with the help of a single product or service (Ferrell & Hartline, 2012). 2.4 Demonstrate How Buyer Behaviour Affects Marketing Activities in Different Buying Situations Behaviour displayed by buyers plays a key role in determining the effectiveness of the marketing activities undertaken by Ford. This would include factors such as various dimensions surrounding the buyer attributes, influences of internal and external environment, social variables, life cycle, behaviour of an organization towards purchasing and selling of products and services among others. These factors have an affect over Ford’s business and the company needs to analyze such situations prior to the determination of the business objectives (Lamb & et. al., 2011). 2.5 Propose New Positioning For a Selected Product/Service Positioning, as the name suggest, refers to the process of establishing company’s position in the market. Ford has focused upon providing fuel-efficient cars to its customers at a lower price compared to its competitors. Providing fuel-efficient cars with quality components and contemporary features at a lower price would ensure that the company is able to sustain in the market for longer period and gain substantial market share. Furthermore, with the purpose of marketing its products, Ford can also make use of ‘multi-focused positioning’ that would enable Ford to provide customers with special offers and discounts on purchases (Baker & et. al., 1998). 3: Understand the Individual Elements of the Extended Marketing Mix 3.1 Explain How Products Are Developed To Sustain Competitive Advantage An organization can gain competitive advantage if it is able to satisfy the needs and requirements of its customers more than that of its competitors. Michael Porter suggested 3 basic elements to gain a competitive advantage that include ‘cost leadership strategy’, ‘differentiation strategy’ and ‘niche marketing strategy’ (Porter, 2008). Ford can utilize the cost leadership strategy to gain competitive advantage, which would require the company to determine lower costs for the offered products and hence, attract a larger customer base. Conversely, differentiation strategy can also be pursued by Ford that would allow the company to gain competitive advantage by providing differentiated goods and services to the customers, which would set them apart from its competitors (Sengupta, 2005). 3.2 Explain How Distribution Is Arranged To Provide Customer Convenience Distribution refers to the process of sharing available resources as per their needs and preferences of the customers. In this case, Ford’s distribution strategy would play a key role in determination of the company’s ability to ensure convenience to its customers and gain customer satisfaction. Distribution refers to the place of providing manufactured products and services to the end customers i.e. car showrooms. Place of distribution plays a key role in determining the organizational level of success, since it creates a platform for interacting with the customers and ensuring customer satisfaction as well as loyalty. Ford arranges its cars in a manner that attract the attention of customers, thereby increasing sales. Furthermore, Ford makes optimum utilization of warehouses, which ensures that the company is able to provide customers with the cars as per their requirements. Furthermore, staff members are trained and after sales services are also provided that ensures high level of sales. Hence, distribution plays a key role in ensuring customer satisfaction, thereby leading to success and profitability for Ford in the long run (Dent, 2011). 3.3 Explain How Prices Are Set To Reflect an Organisations Objectives and Market Conditions Prices set by Ford plays a key role in determining the level of success for the organization, since they have an affect over the company’s market conditions and objectives. Prices are usually determined based on achievement of two objectives i.e. maximization of profits or increasing customer satisfaction. Ford has successfully set its prices with the aim of increasing the level of customer satisfaction, as it leads towards ensuring success in the long run. Furthermore, the prices are kept lowered than that of competitors to attract customer attention and grab market share. Ford also ensures that market conditions are being reviewed prior to the determination of prices such as perceived value of the company’s products among its customers, level of competition and ethical issues among others. Ford can also make use of premium-pricing strategy that would enable the company to raise its status and ensure that it is able to provide premium services to its customers. The pricing strategy of the company is devised on the basis of certain factors that include quality, features and extra services offered among others (Haber, 2000). 3.4 Illustrate How Promotional Activity Is Integrated To Achieve Marketing Objectives Ford involves itself in making utmost utilization of the promotional tools to ensure achievement of marketing objectives. Ford focuses on the effective utilization of marketing tools such as advertisement, sales promotion and publicity among others. Furthermore, it would include taking steps to raise effectiveness and corporate image through the use of online marketing and other, apart from focusing on the enhancement of public relations. Moreover, promotional activities such as increased advertisement of cars and personalized after sales services can ensure successful marketing by meeting the needs of the customers. In addition, making use of the social media for providing information relating to quality after sales services offered to the customers, which would ensure successful marketing efforts by the company (Boone & Kurtz, 2015; Ford Motor Company, 2014). 3.5 Analyse the Additional Elements of the Extended Marketing Mix Apart from the 4P’s of marketing mix, there are a number of additional P’s as part of the extended marketing mix. This includes Process, People and Physical environment. In Ford, processes refer to the various strategies that have been utilized by the company to retain the existing customers and attract the new ones. People refer to the customers involved in purchasing products offered by Ford playing a key role in determining the success or failure of the business. Ford has laid strict focus upon its physical environment, comprising its place of manufacturing to the place of selling the cars i.e. showrooms. Ford has emphasized developing positive attitude amongst its customers, apart from ensuring a positive ambience in the showroom that would facilitate the process of marketing for Ford (Boone & Kurtz, 2015; Ford Motor Company, 2014). Conclusion The aforementioned study provides a clear understanding of the various marketing elements, such as environmental analysis and marketing mix that are being utilized by Ford to enhance market share. Furthermore, Ford has ensured that it exploits the benefits of increased sales and establishment of long-term profitability through market orientation. Moreover, Ford has concentrated upon the macro and micro environmental factors such as economic, demographic factors, apart from factors such as buyers, sellers and competitors. It has been identified that the company has been using differentiated marketing strategy with the intention of providing unique products as well as services in different market segments. The company also uses the extended marketing mix aspects that include people, process and physical environment to ensure success in the future. From the above analysis, it has been recognised that the company has been effective in using different marketing principles with the intention of ascertaining that business operations are conducted in a successful manner in worldwide market segments. References Baker, M. J. & et. al., 1998. Marketing: Managerial Foundations. Macmillan Education AU. Blythe, J., 2013. Principles and Practice of Marketing. SAGE. Boone, L. & Kurtz, D., 2015. Contemporary Marketing. Cengage Learning. Czinkota, M. & Ronkainen, I., 2006. International Marketing. Cengage Learning. Dent, J., 2011. Distribution Channels: Understanding and Managing Channels to Market. Kogan Page Publishers. Dibb, S. & Simkin, L., 1996. The Market Segmentation Workbook: Target Marketing for Marketing Managers. Cengage Learning EMEA. Ferrell, O. C. & Hartline, M., 2012. Marketing Strategy. 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