Marketing Relationship in the Car Industry - Essay Example

Introduction Marketing can be defined as a process of ensuring products and goods are well promoted so as the targeted consumers can be able to buy.The marketing strategy uses the four P's. They are: price, product or service, promotion and place. Price is the cost at which a product or service can be sold to the targeted consumer. Product or service is the finished good that a consumer can buy and use. Promotion is how the product or service is advertised or branded to attract the targeted consumer to buy them. Place is generally where the product or service can be found. It deals with the distribution of goods and services for the consumers to have an easy reach (Brassington, 2000, pp. 30-60). History of the car industry The car industry started as early as 1769. At that time having a car was something that was left for the rich thus the marketing strategies were not taken very seriously by those who were producing cars. This is because the industry was not ventured into by so many people thus competition was very low. The automobile industry started with steam cars, coal gas cars to recently where cars are using unleaded fuel. The car industry has continued to expand as very many companies have ventured in this business to meet the demand of cars world wide. Today, cars are not considered as a luxury but as a necessity. For this reason, car industries have seen the need of employing marketing strategies to ensure that their cars sell. In trying to attract customers, car industries keep coming up with new models of cars every time. There has been a consideration of all kinds of people in coming up with better and easy to handle cars. For instance, the automatic cars are made for the disabled people. Moreover, they can be used by any one who does not know how to drive because they are easy to understand and handle. The question still remains; is it the trust that car companies build that makes customers buy their cars or is it the product they give Well, it is evident tat as long as one is producing a good or service, it is important to employ unique marketing strategies. Companies have made it because they create trust between them and their customers. It is important to know how a car industry can create very strong trust with their customers (Calvert, 2000, pp150-300). Marketing intelligence Car industries have seen the importance of having strategic marketing plans thus the knowledge of what is going around in this industry. That is, what are the needs of their customers and what are their competitors doing to win very many clients. With such knowledge, this industry has seen the need of carrying out the SWOT (strength, weaknesses, opportunities and threats) analysis that helps the different car firms to know how they are going to differentiate their products and services from their competitors. This enables them to find out ways in which they are going to build customer trust as they carry out research, analyses it and then come up with new and better strategies of keeping their customers. Such research focuses mostly on what the customer needs and not the company (Ledgerwood, 2006, pp. 95-100). It is the quality of the car that matters and not the quantity and how cheap it is. Car industries are now bound to making cars that can last longer and are safe. Customers need to be assured that their vehicles will not breakdown after ten days of buying them. Once a customer buys a vehicle, they always want to know how long it can last on the road. Trust will be built if the car industry tells the truth. Customers become very disappointed when they are assured that a car will last for five to eight years then it only serves them for two years. If such a thing happens, then that brand is surely going to lose market (Ennew, 2006, pp. 94-100). Safety is another issue; customers need to be assured that the vehicles they are buying have the best safety products like safety belts and air bags. With the number of car accidents increasing world wide, safety has become a first priority when purchasing cars. It is important to tell consumers the truth if safety is considered while buying the car or not. Moreover, the products need to be of a very high quality (Estalami, 2006, pp.24-40). The car seller is expected to show the car parts to the customer so that they do not complain later that something is missing. This entails a drive test of the car for a long distance before the customers takes it home. Strategic marketing and positioning It calls for the car industry to position itself in a competitive manner. This can only be explained by the 4 P's. It is important for a car firm to know how it will price its product. It needs to offer very competitive prices (Moorman et al., 2007, pp. 58-75). This will enable the car firm to reach every kind of income earner. Most car firms are producing cars according to what the customers need. There pricing is guided by why the customer needs the vehicle. There are salon cars that are mostly bought for short distances, range rovers that are used for rocky and rainy days and even long distances. Such reasons for having different types of cars guide the car firms in producing their products. They also produce cars for luxurious purposes like limozeenes where one can find a swimming pool inside. All these are to give the customer what they will actually need. The fact that a customer knows that his or her needs will be met at any time enhances the trust they have in that company (John, 2004, pp.28-48). The customers become very relaxed and confident in the sense that they are able to get what they want from a specific firm thus no need to walk around looking for a specific type of car. For any company to survive in this era, it is important for it to know how to distribute its product (Jocelyne, 2006, pp.230-330). Customers are not expected to travel long distances to acquire the type of vehicle they need. The vehicles need to be readily available. Many car firms have put up agents in all countries to ensure that their products are distributed world wide. They ensure that every new model of a car they come up with is immediately sent to the specified agents. Agents are companies used by the original car firms to sell vehicles on their behalf. The agents need to have full information and knowledge of the products. This is because they need to give the customers the right information about the vehicles to avoid conflicts and misunderstandings. The information is usually about how the car operates, where one can find spare parts and how long it can last. To build trust, the agents need to give full information without distorting or eliminating any thing (Jocelyne, 2006, pp.230-330). Promoting goods and services is another strategy that the car firms use to build trust with their customers. Very many car firms advertise their products in televisions, radios, newspapers, magazines and so on. When they come up with a new model, they make it known to their customers through advertising. Giving information to customers makes them feel very valued by a company. Thus it is very important to ensure that they get regular information on the new company products. They should never be left out to find out on their own (Nirmalya, 2004, pp.28-48). Currently, technology has increased the promotion strategies by allowing the internet to help in marketing. Most car firms' have their websites and now a customer can find a type of car they want and its full information in the internet. They also use the internet in advertising their new products. In addition, they email information about their products to their customers as they have contacts of every customer. This has enabled the companies to keep a steady relationship with its customers. In case of any changes, they are immediately communicated to the customers (Magda, 2006, pp. 478-510). This strategy has helped the customers from being exploited by agents in terms of price and quality of a car. The fact that the websites give full information about the pricing and car parts and their functions, it has become very hard for theft to occur. Customers can now compare prices and car parts to avoid being sold the wrong vehicles and being coned to pay too much money. It is now very easy for customers to communicate with the mother companies of cars to get full information and to report such cases of exploitations. Car firms hold motor shows to show case their products and how they work. They invite their customers to attend such events and moreover, the general public. They ensure that they show case every type of their vehicles. There is usually a help desk where customers can inquire about specific products. For instance, they can ask questions on where to get original spare parts. Such questions need to be answered truthfully to increase consumer trust. It is good to tell a customer that the spare parts are hard to find rather than tell them that they can be found and yet they can not. It is always good to be truthful because the customer will always believe in what the firm says thus very hard to change product interest. Moreover, in such shows the customers are able to be educated on original goods and counterfeit goods. They are able to tell an original brand from a counterfeit one. This will avoid the misunderstanding that a particular car company produces false goods. The car firm needs to communicate to its customer cases of counterfeit goods to avoid a bad reputation thus losing market (Magda, 2006, pp. 478-510). Customer loyalty Car firms need to build customer loyalty to ensure that they keep them. One way is by knowing each customer by name. Regular customers can be kept by ensuring that any time they need a service from the company, they are called by name and their taste is always remembered by the firm workers (James, 2006, pp.10-12). For instance, a customer is bound to keep buying cars if an employee in affirm knows his taste of cars for example the favourite colour, make and brand name. When he or she is sure that the firm has his or her interest at hand, then they are bound to keep coming back for services. This is so because the customer sees that the company values him or her. It becomes like home and thus the customer will always be free. This can make the customer to advertise the brand of the car to his or her friends because of the good treatment received (Buckinx et al., 2007, pp. 32-40). Customer loyalty can be enhanced by giving the customer full information about the products. It is good to refer customers to mechanics who will repair their cars very well without taking out some parts or putting old spare parts. Moreover, such mechanics are expected to have full knowledge of how the cars are operated and where to get the original spare parts. It is also very important to tell customers on how long a car can stay to be serviced again which will prevent the car from being damaged too soon. Giving customers such information gives them a sense of consideration by the car firm. The car firm is expected to give information on the type of fuel and oil to be used by the cars. This will prevent the cars from being damaged easily thus lasting longer. If a customer is given such attention and then his or her car lasts longer, then for sure he or she is bound to come back for more cars from the same company and he or she will come with two more friends (Nigel, 2000, pp. 120-130). Flexibility is another way of ensuring customer loyalty is created and sustained (Paul, 2002, pp.50-68). When a car firm is able to sell differentiated cars, then consumers are bound to buy the products. Luxurious goods such as cars go with fashion thus, a car firm is supposed to come up with fashionable cars. The fact that a car firm can adhere to the new trends and not stick to the old ones makes customers stick to the products. This is because they know that they will get what they really need from that particular firm. It is quite tiring to walk around looking for products every where in the market thus having a firm that is flexible in producing new trendy products will save time used to look for new firms (Paul, 2005, pp.70-89). It is very important for car firms to be very reliable. Whenever customers need help or a product, the firm needs to be there (Dan, 2006, pp.120-135). When a customer pays for a car and it is expected to arrive at a certain time, then the firm should ensure that the customer has access to the product at the agreed time. It should never be later or make the customer follow up his or her product. If a customer has any query about a firm's product and services, answers should be readily available. As mentioned earlier, such answers can be found in their web sites. It is now easier to communicate because the internet is available throughout. There is need to have a customer care desk which should have well trained customer care employees who need to be available to answer questions from customers. Such employees need to have full information about the products and should talk to the customers in a polite and friendly tone. They need to avoid giving the wrong information to customers. If an employee does not know an answer to a question, it is important for him or her to refer the customer to a knowledgeable employee or the supervisor. It is important for the employee to ensure that the customer has understood the answer to his or her question (Michael, 2000, pp. 58-68). Employers need to treat their employees with respect to build employee loyalty. If they practice this, then they are assured that the services and car products given to customers will be the best. When an employer enhances a good relationship with his or her employees, they are bound to treat the customers well to keep them coming to the firm (Jill, 2001, pp. 230-250). They will have no reason to destroy the business thus produce better cars and ensure that the customers are served well. An employer who keeps quarrelling with his employees is bound to lose his or her customers because the employees will tend to feel like destroying the company. This will lead to poor services and goods to the customers which will run down the car firm. Employers need to learn on how to talk to their employees and sometimes give them the freedom to carry out activities the way they best know (Janelle, 2000, pp. 50-70). This will motivate them thus will work harder to bit their targets. It will defiantly lead to high production of cars, innovation will prevail and better customer satisfaction strategies will be built. Another important way of enhancing customer loyalty is by ensuring that the car firms get information from their customers. A company is supposed to treasure its customers because they are a huge source of information from the competitor (Robert, 2006, pp.120-130). The Mercedes Benz firm is able to know the strategies of the BMW firm from their customers. Customers will tell what the other firm is doing or planning to do to bit its rivals. It is important to talk to customers' politely if a car firm is guided by the fact that it wants to boost the sale of its products. Moreover, a firm is able to acquire marketing skills from customers. Customers will always complain or recommend on how services are provided. From such information, a car firm is able to know what they are to stop doing or keep doing and where it needs improvement. By listening to customers and making changes, it makes them feel very important. Thus customers will always tend to come to that particular car firm because of creating a good customer-firm relationship (Don, 2004, pp.378-420). Every time a car firm is coming up with a new model of a car, it is essential to ensure that the customer has a reason to come back and gets another model next time; creating customer incentive (Don, 2004, pp.68-88). This strategy is enhanced by ensuring that the models are unique, original materials are used, the pricing of the cars is attractive and that the services are up to date. Impression is the number one thing that will make a customer come back for more products from a firm. If a customer is ignored, they can as well look for another place where they will be treated with respect and given maximum attention (Stabblefield, 2004, pp.48-69). Improving customer loyalty has a great advantage to the car firms in that it makes their jobs easier (John, 2003, pp.69-89). Customers who regularly buy cars from a particular car industry will have the complete knowledge of how activities are carried out within the industry. This will make transactions to be carried out faster and easily. They do not need education on how they are going to be served as they already know the procedures to be carried out. In case procedures are changed, these customers need to be the first to be informed. They need to be educated on the new services to avoid confusion and feelings of being left out (Michael, 2004, pp.78-120). Conclusion In conclusion, the car industry has been forced to embrace the new strategies of increasing customer relationship because of so much competition. References Brassington F., 2000. Principles of Marketing: The four P's: Pp. 30-60. Buckinx W. et al., 2007. Predicting Customer Loyalty: journal of expert systems. Vol. 32, pp. 32-40. Calvert M., 2000. Marketing Plan; Consultancy Tools and Techniques- to be your own management consultant. Pp.150-300. Dan S., 2006. How to Sell Your Brand and Create Customer loyalty: Business and Economics. Pp. 120-135. Don E., 2004. Increasing Customer Loyalty: Five steps to deliver value and measure. Pp. 68-88. Don P., 2004. Many who consider customer loyalty to be the biggest single benefit: Managing Customer Relationship. Pp. 378-420. Ennew C., 2006. 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