The Marketing Strategy in the Automotive Industry - Term Paper Example

Marketing Strategies for Automotive Industry – Term Paper Thesis ment: Competition in the automotive industry requires a strategic marketing approach that would help the automotive firm to lure customers and segments the market according to the needs of the customers. Outline I. Abstract II. Introduction III. Market survey IV. Marketing strategy a) Scope of business b) Objectives of the firm V. Market segments a) Geographical segmentation b) Customer type segmentation c) Buyer type segmentation VI. Marketing positioning a) Quality b) Service c) Distribution channels d) Packaging VII. Market targeting a) Undifferentiated marketing option b) Differentiated marketing option c) Concentrated marketing option VIII. Marketing mix Abstract This paper elaborates on how the success of the automotive industry lies on the marketing strategy that an automotive firm adopts in marketing its products. The approach a firm adopts would dictate the market share and the sales of the firm. Many automotive organizations would devise an effective marketing strategy that would lead the firm to success. A firm would boost that it has succeeded in business if it has met its objectives. When the firm is designing its objectives, it has to consider factors that would influence the market entry approach of the firm, pricing and distribution. Many automotive motive organizations face stiff competition in the market. This would call for a marketing strategy that aim which would aid the firm to meet its set objectives. Information regarding products of the firm in the market is very important since it enables the business to identify areas, which need correction when designing marketing approach. Marketing survey is an important exercise to the firm since it will dictate the approach or entry behavior of the business in a particular segment. Marketing strategy is a tool that the automotive firm would use to make a calculative approach into the market. The strategy would influence issues such as pricing, distribution, and market share among others. Marketing of products require a strategic entry behavior into the market in order to meet the set target of the organization. Most automotive companies manufacture similar products and supply their products into the same markets. Competition among these companies requires a devised mechanism that would woo buyers to purchase specific products of a particular company. Branding of the company products and employing marketing tactics would help to woo buyers into buying the company products. Automotive firm needs to consider a number of factors before rolling its products into the marketing. These factors would influence the amount of sale the firm is able to make, the growth of the automotive firm and market share of the firm. This paper explores strategic marketing strategies for automotive company. Market survey helps in establishing taste and preferences of customers. Conducting a marketing research would help an automotive firm to develop products that would suit the interest of the consumers. The firm may interview consumers or use resource information to establish the current demands in the market. Advancement in technology influence market trends. Some people may require complex products while others would require simple products. Since the automotive industry is flooded with many competitors, it is wise for a firm to conduct the survey. Marketing survey would act as an aid towards developing marketing entry behavior. Sometimes a company may rebrand its products in order to lure customers. Establishing of customer needs helps suppliers to avoid incurring loses or stocking products that take along time to be sold. Success of any business enterprise hangs on the profit margin that the business is able to make. Sales of business products influence the profit margin. A high sale in a business is a reflection of how well the business is doing. Marketing department in the automotive firm must establish a mechanism that would lead to high sale turn over. Marketing strategy describes a plan that a firm would use to market its products (Fifield 43). The strategy includes how to achieve desired objectives and goals of the firm. Largely, the strategy is developed after considering the business trends in a specific market. Business trends in a specific location helps in designing the entry behavior into the market. Some markets may require familiarization of the products. Business marketing strategy consists of scope of business. This would define the group of customer the business is likely to serve in the specific market. For example, automotive company like Ford Cooperation has to identify the customers of its product, the technology that they require in their products and terms of services if any that they may require after selling the products to them. Firms that buy automotive products in bulk usually require after sale services or may require parts of the automotive product. Such a case would force a firm to establish a branch or liaise with local dealers in order to promote the business product in that market. Establishing good customer relationship leads to growth of the business. Many firms like devising means, which would help them to have a large market share. The strategy developed by the business would help it to command a large market share. A good business strategy should incorporate the objectives of the firm. Objectives of a business enterprise help in defining the operation of the business. Market entry behavior that does not consider the firms objective may fail to deliver the aims of the business. Market share of a firm defines the profit the firm would make. When the business commands a large market share, it would reach many customers and yield high profit. The aim of any business enterprise is to make substantial profit. Factors that would influence the profit of the business in a negative manner should be scrapped in order for the automotive firm to make profit. Devising strategic approach helps to reduce costs that the firm may incur in conducting its operations. The marketing department of the firm must develop a mechanism that would help it to meet the objectives of the firm and satisfy the needs of the customers. The strategy of the firm should include target segments of the market and positioning. Market segmentation refers to the approach that a firm would take in dividing the market into different homogeneous groups of product consumers. When the firm is considering the market segmentation strategy, it has to take care of the response to marketing mix, distribution channels, and viability of the market and profitability of the market. Segmentation of the market would based on geographical segmentation, customer type and buyer behavior. In geographical segmentation, the automotive firm would take its business approach in various regions depending on the information about the customer demand. Regional variable that would influence the firm include customer concentration, international microeconomic factors and regional automotive industrial growth rate. Customer type segmentation provides information regarding the customers of the firm for example, large business corporations, value chain position etc. Buyer behavior would help the firm to establish information regarding the customers in the market. A firm needs to establish information about the buyer in order to plan its manufacturing capacity. Sometimes the customers of the business may have high demand for the business products thereby influencing the production rate of the company. The firm should make a market profile for various segments in order to provide effective services to its customers. According to Luther, market positioning refers to the strategic position which products of firm takes in the market (117). Identification of perceptual location helps the firm to meet its customers without any difficulties. When a firm is designing its market positioning, it must calculate the cost involved in reaching the customers. Effective design would help the business to make high profit because it shall be able to eliminate unnecessary costs. Positioning dictates the image of the automotive firm to its customers. When the firm portrays a poor image, it may not be able to convince its customers to buy its products. This would translate to poor business growth and low market results. The following affects positioning of the firm quality, service, packaging, pricing, and distribution. An element such as pricing would define the nature of customers that buy the products of the business. The quality that the firm presents to the market would attract or distract the attention of the business customers. Largely, quality of a product would influence its price and sale. Offering benefit services to customers helps in retaining customers of the business. The distribution method that the automotive firm would take will influence prices and the time that the product would reach into the market. It is wise for the automotive firm to choose a distribution channel that is effective and economical. Long distribution channels would lead increase the production cost. Packaging of the business product would promote the business. Attractive packaging would lure many customers leading to high sales of the business products. Market targeting is an approach that the automotive organization would take in transacting its businesses in the market. The automotive firm has to choose the most appropriate targeting option that would yield effective result for the firm. The firm can choose one of the three targeting options for its operations. Undifferentiated marketing is a case where the automotive firm decides to send a particular product to the entire market (Ferell and Hartline 186). Undifferentiated marketing or mass market would serve the business well if the customers of firm prefer to buy its product. The automotive firm can decide to adopt the differentiated marketing strategy. In this case, the firm would target specific segments of the market with specific products. For example, the Ford Cooperation may decide to send its executives car products to markets, which can purchase these products. Other products of the firm would directed to other segments of the market. The firm may opt for the third option, which is concentrated marketing. When the firm adopts this approach, it would concentrate its marketing abilities in a specific segment (Lamb, Hair and McDaniel 272). It would force to produce a product that fits the need of a particular segment in the market. For example, the automotive firm would be required to manufacture products, which suit the needs of celebrities. The cars manufactured to cater for the needs of the celebrities may not suit the needs of common person. Marketing mix is an essential element of marketing strategy. Marketing mix would help the business to design the prices of the products, distribution methods, products and promotion methods that the automotive firm would adopt in marketing its products (Belohlavek 8). In many cases, the firm would weigh the pricing system in order to come up with an effective approach that would lead to success of the business. Promotion of automotive product helps in creating awareness and winning more customers for the business. The promotion adopted by the firm should aim at meeting the target of the business. In conclusion, marketing is a process of identification and distribution of business products to willing customers. Marketing strategy enables the automotive enterprise to conduct market research and devise the most appropriate method of marketing its products. Marketing strategy describes the components of a plan that the automotive firm would use to market its products. Marketing segmentation enables the firm to distributes its products according to the needs of the of different market segments. Market positioning would influence the business location, service delivery, quality, packaging and the distribution channels that the firm would adopt. The approach that the firm adopts in supplying its products in the market would be influenced by market target. The business can choose from undifferentiated marketing option, differentiated marketing option or concentrated marketing option. Marketing mix would influence the pricing of the firm’s products, promotion strategy among others. The success of the automotive firm would depend on the strategy that the firm adopts. Work Cited Belohlavek, Peter. Unicist Marketing Mix. New Mexico: Blue Eagle Group. 2008. 8-16. Print. Ferell, O. and Hartline, Michael. Marketing Strategy. Mason. OH: Cengage Learning. 2010. 180-188. Print. Fifield, Paul. Marketing strategy: the difference between marketing and markets. Oxford: Elsevier/Butterworth-Heinemann. 2007. 42-56. Print. Lamb Charles, Hair Joseph and McDaniel, Carl. Essentials of Marketing. Mason. OH: Cengage Learning. 2011. 270-282. Print. Luther, William. The marketing plan: how to prepare and implement it. New York: AMACOM Div American Mgmt Assn. 2001. 117-122. Print. Read More