Introduction
Marketing, promotional and pricing strategies are critically important in determining the success of a company. While industries usually have similar characteristics and present similar conditions to the businesses operating in it, different companies have different external and internal circumstances which call for different strategies to be adopted (Nijssen & Frambach, 2010). The adoption of one promotional strategy or another may be the difference between one company’s success and another’s failure. The automobile industry is one of the industries has very many companies hence the cutthroat competition for market share. Globalization of the industry has made it necessary for automobile manufacturers to adopt international marketing, pricing and promotional strategies in order to effectively compete (Paley, 2006). GM and Toyota are the largest automobile manufacturers in the world thought their promotional strategies could not be any more different. Toyota's strategies have been more effective than GM's over the last decade. This has made Toyota overtake GM as the largest vehicle manufacturer in the world.
Promotional Strategies in the Automobile Industries
Each industry will usually have an industry standard which is deemed to be the most effective strategy given the circumstances and dynamics. Companies which are usually successful in marketing such as Toyota or Mercedes Benz are usually companies which adopt a given strategic marketing model in standing out from the competition (Doole & Lowe, 2008). In the automobile industry price, type of vehicles and consumer orientation play a key role in the success of the automobile manufacturer. Companies such as Mercedes Benz and BMW make use of the aspect of pricing and ...
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...s gives the consumer an emotional attachment which results in possible purchase and subsequent brand loyalty.
Conclusion
Marketing, promotion and pricing of automobiles in the current context of enhanced competition calls for the application of strategic management. It is critical that the organization gather as much information as possible regarding the strength of the competition, market demographics, and its internal contexts in order to differentiate itself and be effective in this market. The entry of companies such as Toyota which came up with new ways of doing things can offer important insights which would be of great importance to other companies wishing to replicate Toyota's. While Toyota has done a lot in terms of marketing its products and becoming the leading manufacturer it needs to keep on developing in order to continue to lead the
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GM should continue to use its technological advantages to create innovative automobiles, but do so cautiously. GM should follow the direction of today’s environmentally conscious consumers who want less expensive, economical automobiles. GM should primarily utilize a cooperative game-theory approach in its sales and marketing strategies in order to stay in sync with the current automotive industry needs.
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
Taming the wildest of these bucking broncos is not for the faint of heart as certain iterations of these freaks of nature pack more than the combined power of 500 of their animal name sakes. With such ridiculous levels of performance, clearly geared at a small percentage of owners capable of controlling such ferocity, Ford and Chevy are left with the daunting task of developing a marketing strategy that attracts a larger consumer base capable of profiting from an otherwise niche product. The strategies employed by both manufacturers encompass many similar aspects both of which ultimately convey a similar...
Ford competes with other automobile industries on many factors such as price, quality, reliability, appearance, available features, and fuel economy just to name a few. Such intense competition within the automobile industry tends to put downwards pressure on prices, making it harder for Ford to put a price on vehicles that are similar to other cars produced by competitors. The challenging price environment puts pressure on Ford to increase value to customers while trying to dramatically reduce costs to achieve the similar pricing of competitors. Ford must be able to reasonably price vehicles so that customers still feel as if they are getting the best car for their money. Competitive pricing is a threat to Ford because it must increasingly rely on customer perceived value to differentiate its car quality from its competitors. Ford must be able to justify its pricing in an industry where resembling cars have similar pricing and nearly identical features. Ford’s pricing objectives must somehow be achieved as other competitors are cutting costs and improving their vehicles. Negative pricing pressure threatens Ford’s ability to provide outstanding value to its customers for smaller or comparable pricing within the competitive automobile
Toyota’s Integrated Differentiated Strategy is very unique to the automotive industry. Its main focus, according to the president of Toyota, is that Toyota is not trying to rival other automakers; Toyota is trying to conquer customers with great products and service to obtain high customer satisfaction.
Strategic management Toyota case study. 2013. Strategic management Toyota case study. [ONLINE] Available at: http://www.slideshare.net/ArioArdianto/strategic-management-toyota-case-study-27410014. [Accessed 15 December 2013].
Marketing is a core pillar of an organization and contribute significantly in its prosperity through attaining the laid down targets as well as scope of development. The position of an organization is hugely based on its competitiveness and capacity to capture a significant portion of the market in relation to the prevailing needs of consumers. Interaction of the organization with the consumers and the potential consumer in the market arena is attained through the marketing wing of the organization (Ferrell& Hartline, 2012). The preferences of the consumer and avenues of satisfaction are aligned to the established marketing frameworks. However, the success of organization marketing is highly inclined to the marketing strategies formulated and adapted towards coping with competition and eventually enhancing firm competitiveness.
Having both marketing strategies and both products analyzed and the history of the important marketing decisions made and techniques used by the company written down, it will be interesting to perform a critical analysis of how the market and business realities made an impact on the marketing of Tesla Motors, why it happened and what was the effect. The presence of the CEO and the impact he makes on the public and investor confidence will also be critically reviewed. Based on the results, a list of recommendations will be composed for both representatives and marketing specialists who work in the same or similar
Within this essay, I will discuss Toyota’s generic strategies, which include cost leadership and differentiation. I will then discuss their diversification strategies, in which they have ventured outside of the automotive
Studies and analyses regarding variations between companies performing higher or lower regarding their marketing practices has helped out to assure that a central textbook marketing strategy principle; which is to achieve success regarding that in the long term the products and services of a firm have to be well ‘positioned’ in the market. This paper aims to highlight the common formulations or ‘anatomies’ for strategies and the isolation of some of the most important inclusions that were thought to be really important in achieving success. Just to bring some “flesh on the bones”, this article examines the method through which theory is translated into practice.
Introduction: Toyota Motor Corporation is a very successful automobile manufacturer that is recognized globally. They have continued to obtain and retain a competitive advantage over their counterparts, despite recalls over many years. Regardless of recalls, Toyota has been quick to rectify their shortcomings and continue to lead the automotive industry with their innovative measures. In this essay, I will discuss key internal factors for Toyota. Within those factors will include Toyota’s core competencies, which are what they do really well in comparison to their competition, three of their strength’s, which will include their posture within the automobile market and their heavy focus on research and development, and two of their weaknesses.
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.
Schmidt, J. (2010, September 29). Strategy and targets of mercedes-benz cars sales and marketing. Retrieved from http://www.daimler.com/Projects/c2c/channel/documents/1931898_Daimler_UBS_Paris_DJSchmidt_Handout.pdf
Market Segmentation, Positioning and targeting for BMW 1.1 Introduction This report aims to examine the market segmentation, positioning and targeting of BMW (automobile company). BMW will be examined giving information about the company and where it is now and any recommendations that we feel are appropriate. 1.2 BMW Company Profile BMW was formed in 1917, from the merger of two small aero engine makers. Their famous blue and white symbol stems from the colours of the Bavarian Luftwaffe and is said to resemble the view of the one of their plane through a propeller. BMW is renowned for its sporty, sophisticated & luxury image which has been built up since the 1970's with many motor sport victories ranging from Touring Car to Formula 1.