Marketing Mix Strategy - Research Paper Example

Running Head: Marketing Mix Strategy Marketing Mix Strategy Name Course Tutor Date Executive Summary This report aims at developing a new marketing mix strategy for Toyota Prius car that competes against Ford Mondeo. Ford Mondeo seems to be a good car but when compared to Toyota Prius, the Toyota Prius seems to be a better option. Based on the marketing mix and the value propositions, it is evident that the consumer is likely to be lured into purchasing the Toyota Prius since it offers more benefits and advantages as compared to the Ford Mondea. The main motivating factor will be the fact the car seems to be more environmentally friendly and the company seems to offer products which suits both the low and high incomes earners. Thus, despite ones level of income, one can still own a car with a lot of ease. Contents Executive Summary 2 Contents 3 Introduction 3 Consumer Analysis 4 Competitor marketing mix analysis 6 Product 6 Promotion 7 Price 7 Place 7 People 8 Process 8 Physical evidence 8 Proposed marketing mix strategy for the competing product 8 Product 9 Promotion 9 Price 10 Place 11 People 11 Process 11 Physical evidence 12 Justification of the proposed marketing mix strategy for competing product 12 References 15 Introduction This report aims at developing a new marketing mix strategy for Toyota Prius car that competes against Ford Mondeo. This report therefore sets out to demonstrate how the proposed marketing mix strategy will create and at the same time deliver sufficient customer value for the targeted consumer segments to change its preferences from the chosen nominated product. The main products to be used in this report are car. Ford Mondeo is the nominated product while Toyota Prius is the competitor product. The report will start will a competitor analysis, followed by the competitor marketing mix analysis, the next section will deal with the proposed marketing mix for the competing products while the last section will offer a justification of the proposed marketing mix strategy for the competing product. Consumer Analysis Consumers all over the globe are in need of a car that meets their needs and offers a great level of convenience to move from one place to another. Despite the limitations in terms of the resources available to purchase the car, consumers also need to purchase, a product that meets their needs well and in this respect the car that is likely to meet their need is the Toyota Prius. There are instances in which cars are mainly bought due to individual’s requirements but the main reason for the consumers in this case is the family (Newson, Vanslyke & Kruckerburg, 2000). The main target audiences in this case are the young people who seem to be in a dire need for a car that will enhance their travelling and make their work activities easier. The main trigger in purchasing a car will be due to family while some will be looking to attain a certain status in the society though this percentage of consumers will be small. This group of consumers is also interested with cars that are technologically advanced and at the same time, they require a greater amount of space. This preference is true irrespective of whether the customer is either female or male. Nevertheless, at the same time, the consumer is likely to consider the aspect of whether they can afford the purchasing of the car as being a reason to the need of purchasing a car. This in a way suggests the consumers desire to use a car and more so as being a statement of their success. In regard to the information search, while manufactures of cars place social media strategies as a high priority, consumers on the other hand attach less amount of importance to information gained from social networking sites (Blythe, 2009). The target consumer group mainly make use an old fashioned, and the word of mouth as among the most essential source of information. Despite the great amount of emphasis that is placed on the sales persons by a great number of the dealers, they do not have a major influence on the decision making process of the consumer. This in a way reiterates with the important role that is played by keeping the ownership experience and buying experience pleasant for the consumers. All this is aimed at building a great level of credibility when such kind of customers ventures into the market searching for a replacement car. The consumers will make look for comments and ideas from people who have used the cars before them (Li et al., 2000). Nevertheless, it can also be noted that a great number of consumers fails to conduct research for the brands they have in mind. In the modern age, people are likely to look and take note of online reviews and this is mainly due to the greater penetration of the internet. Through this, they will come up with the decision of which car suits them best. In this respect, they will also consider the speed, availability of parts, and ease of use and consumption of the car, cost and space. Based on all these aspects, the consumer will make a selection of the car that meets his or her needs in the most effective manner. Consumers will also make a number of visits of the dealers to view the cars and thus make informed decision in the end. This will offer the consumers with the opportunity to even test the various cars and this will go a long way in helping them to make informed decisions in regard to the car they want to purchase (Zeithaml, Bitner & Gremler, 2013). Competitor marketing mix analysis Value proposition of Ford: a car that offers convenience and value for your money. The marketing mix of Ford Mondea offers support to the company’s ability to connect well with their customers. The marketing mix is a term that is commonly used to refer to the approaches that are used to implement an organizations marketing plan. In regard to ford, the target markets for the company are varied and they are available all over the globe. The figure below shows the 7Ps of the marketing mix Product With the advanced technology and the various numbers of manufacturing plants, Ford has provided the consumers with some of the best vehicles and a good example of such a vehicle is the Ford Mondea. Ford has done a good job in ensuring that its products are localized and are manufactured with a concept that matches the local driving conditions and places great emphasis on less maintenance costs and durability. Promotion Ford applies a strong marketing strategy and all this is aimed at building strong relationships with kits customers. At times, it has even made links with a number of sporting events with the aim of highlighting their brand name. Ford has successfully dealt with the promotional aspects of its business and this has helped them greatly in developing its brand image. The use of television and print media has had huge success. Price Ford is termed as among the major players in industry and for it to attain such a position, its pricing strategy has been of great importance. For the company to succeed, it takes note of the profit margin, the costs incurred, and it rivals’ products. Ford also takes up certain sponsorship contracts and do not change the selling price of its products. The car is among the favorites due to the low fuel consumption. Place Ford differentiates itself from the others and more so in that it makes use of the concept of manufacturing on a large-scale basis. This is evident in that; it has manufacturing plants in up to seven continents and this ensures that the selling prices of its products do not shoot up to unrealistic levels. The company has also signed many dealers and this enables consumers to buy cars easily in their exact locations. The company allows its dealership network easily accessible and strong. People Ford appreciates the fact that the people working in the organization are the main drivers of its success and thus it values and appreciate them at all times. When employees are motivated they are likely to work with a lot of enthusiasm and ensure that they arrive to work on time. By doing these, Ford also ensures that the employee’s deals with their customers in the right manner thus leading to satisfied customers. Process In regard to manufacturing, Ford mainly manufactures on a large-scale basis. It has also introduced a concept that ensures that it manufactures at least four models of cars on one manufacturing plant. All this is aimed at they meet the demand for its products in a timely and efficient manner. Physical evidence After the purchase of the car, the customer will attain other things in addition to the actual car. The customer will receive a receipt, the car keys, a manual as well as the warranty information. All these tangible items helps in making the purchaser of the car to feel more empowered and they offer evidence and a sense of ownership. The value proposition and the marketing mix in this section are likely to influence the target market decision due to the ease of use and the fact that the car is within ones budget but the main factor will be the financial ability of the individual (Rafiq & Ahmed, 1995). Proposed marketing mix strategy for the competing product Value proposition of Toyota: The value proposition to be used in this case is a car that can make use of gas power and make use of electric power. The car will be offered a company that runs on the brainpower. This in a way proves that, Toyota Prius is an environmentally friendly car and it will be appealing to those consumers who complain a lot due to the gasoline prices. Product In relation to the marketing mix, a product is a term used to refer to what a business has to offer for sale. In some cases, this may include even the services that are offered by the organization (Li et al., 2000). Product decisions are mainly made when aspects such as features, quality, style, design, packaging and benefits are considered. Toyota offers a wide range of products that the consumers can choose from and with time, it has been able to inject most of the products into the global market. Toyota has in a way left an outstanding mark in the global motor industry. Actually, the company has manufactured automotives that can cope with impending fuel upsurges. Resultantly, Toyota has become a major player and a fierce competitor in the motor vehicle industry. By embracing, the technological advancements over the years, it has launched products that are at par with the needs and expectations of the consumers. This is likely to lead to more sales and increased profits since a great number of purchases are likely to occur when the product in the markets meets their needs. Promotion Promotion on the other hand refers to the marketing communication that an organization makes with the aim of luring consumers into purchasing from it (Li et al., 2000). Toyota needs to launch a number of promotional activities. Through such activities, the company will show its commitment into meeting the needs of the consumers and more so when it comes to manufacturing cars that are environmentally friendly. To counter any challenges that it may have faced in the past, Toyota need to continually come up with new strategies and advertising approaches, offerings as well as new marketing and sales processes. Additionally, Toyota needs to make use of the local media, for example, the use of newsprint, television and radio. Another common media that Toyota needs to make use of is the internet. The internet has for some years now become a major form of communication and a great number of companies are making use of it. This is based on the notion that the media has a wide reach and the message is easily spread within a short period. Price Price refers to total cost that a consumer who is acquiring the product is willing to pay and at times, this cost may involve both the psychological and monetary costs (Li et al., 2000). In the past, Toyota has set its prices in a proportional way and this is mostly done in regard to the income of the consumers from various parts of the globe. Toyota has adequately dealt with the needs of its consumers by manufacturing products that can be bought both by the high and the low-income earners. Through this, it is able to meet the needs of its consumers in an effective way. This offers the company with a competitive advantage over its competitors in the industry and this is mainly the case since the sales are likely to increase with time and thus Toyota can achieve maximum profits from its operations. Toyota also needs to base its pricing on the demand and supply of its product. Toyota needs to continue with its price determination strategy which is friendly to the consumers and it needs to be consumer friendly. This will enhance the purchasing of the product and at times, the consumers will influence their friend’s to purchase the car in the future. Place In marketing mix, place is a term that is used to refer to the indirect and direct channels to market, territorial coverage, market location and retail outlet (Li et al., 2000). Toyota needs to identify a number of market segments where its goods has experienced high demand in the past. This is likely to result into the product being able to successfully penetrate a great number of markets in various continents such as in Europe, America, Asia and Africa. People People are the human actors who play an active role when it comes to service delivery. Every organization has a number of service personnel who represent the values of the company to the customers (Mc Carthy & Perreault, 2003). Toyota has been very keen in empowering its workforce on the production and service line. It ought to continue doing so, to gain greatly from such aspects. By doing so, the workers are likely to become more customers friendly and creative. Such measures have boosted the self-image of the company in the past as well as the ability of the company to respond to the expectations of the consumers. It is of great importance to have the right people for a business to be driven forward. Process In the marketing mix, process refers to the number of activities that plays an essential role when it comes to the delivery of the product benefits (Mc Carthy & Perreault, 2003). In other instances, it refers to the order of tasks undertaken by an employee. Toyota has for a long period embraced lean production model thus it is able to deliver its product just in time. The proper management at Toyota has helped in reducing wastage as well as the production costs and this has increased the level of efficiency in the organization. This has helped and is likely to help the company in capturing a large market share all over the globe. Physical evidence These are the non-human elements are present in the service encounter including the facilities, furniture and equipment (Kotler & Keller, 2006). In a great number of companies, the interaction that takes place between the manufacturers and the consumers mainly ends when the ultimate deal is made. Nevertheless, Toyota has for a considerable amount of time maintained a tangible and stable dealership with the old and new clients. This also ensures that the consumers can still get great services from their manufacturers when they are in need. This has led to an increased level of confidence and it has enhanced the sales made by the company. In this respect, Toyota needs to continue with aspects that seems to be good for its business for it to gain more sales in the coming years and be an industry leader. Justification of the proposed marketing mix strategy for competing product The proposed marketing mix of the competing product is likely to change the consumer target market purchasing behavior because the car, that is Toyota Prius, seems to offer more value for ones money as opposed to the nominated product that is Ford Mondea. With time, a great number of customers have acknowledged that they need to get value for their money, and thus, prior to purchasing an item, they determine its worth (HaKansson & Waluszewski, 2005). Another justification of the competing product is that it has friendly employees. The employees make the purchasing decision easier and offer credible advice that informs ones decision. With the good customer service, consumers are likely to be lured into purchasing from Toyota since the consumers places a lot of emphasis on how they are treated by a company’s employees (Hartley & Rudelius, 2001). Another aspect is related to the fact that the model of car that has been proposed seems to be meeting the needs of the consumers in an effective manner. In this respect, the proposed car model is environmentally friendly (Kotler, 2000). At the same time, it offers consumers with the option of either using the car being powered by gas or they can at time interchange and use it as an electric car. This seems to be the car that the consumers needs. Additionally, the manufacturing company also offers the consumer with a wide range of products that they can choose from. In this respect, it has cars that are well suited for the low and the high-income earners all over the globe. Another justification is related to the idea that the car is readily available and a person who needs it can easily access it and get all the required information prior to purchasing. Additionally, the consumer is unlikely to change due to the fact that Toyota has for a considerable amount of time maintained a tangible and stable dealership with the old and new clients (Chai, 2009). This also ensures that the consumers can still great services from their manufacturers when they are in need. All the customers need is a company that offers them with great services and even after sales services. Toyota seems to be doing this in the most effective manner and thus makes it a better alternative as compared to Ford (Kotler, 2012).. Additionally, Toyota has for a long period embraced lean production model thus it is able to avail its product just in time products. The proper management at Toyota has helped in reducing wastage as well as the production costs and this has increased the level of efficiency in the organization. When all these aspects are coupled, they ensure that the cost charged on the product is minimal (Mei, 2011). Conclusion In conclusion, it can be noted that the two products are well suited for the target consumers but it is more likely that the consumers will have to make a choice between the two. Based on the marketing mix and the value propositions, it is evident that the consumer is likely to be lured into purchasing the Toyota Prius since it offers more benefits and advantages as compared to the Ford Mondea. The main motivating factor will be the fact the car seems to be more environmentally friendly and the company seems to offer products which suits both the low and high incomes earners. Thus, despite ones level of income one can still own a car with a lot of ease. References Blythe, J.(2009). Key Concepts in Marketing. Los Angeles: SAGE Publications Ltd. Chai, L. (2009). A Review of Marketing Mix: 4Ps or More?. International Journal of Marketing Studies, 1, 1, 2-15. HaKansson, H., & Waluszewski A.(2005). Developing New Understanding of Market: Reinterpreting the 4ps.Journal of Business & Industrial Marketing. Hartley, K., & Rudelius, W. (2001). Marketing: The Core. New York: McGraw-Hill. Kotler, P. & Keller, K. (2006), Marketing and Management. Upper Saddle River, NJ, USA: Pearson Prentice Hall. Kotler, P. (2000). Marketing Management. Custom Edition for University of Pheonix, Prentice Hall. Kotler, P. (2012). Marketing Management. Upper Saddle River, NJ, USA: Pearson Education. 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