This study examines the importance of marketing mix factors in the success or failure of Inteva Products. It recommends improvements in the marketing mix to enhance performance.
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Running head: CRITICAL EVALUATION OF MARKETING MIX Inteva products Critical Evaluation of Marketing Mix 1/16/2019
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CRITICAL EVALUATION OF MARKETING MIX1 Executive Summary The intent of this study is to examine the importance of all the factors of marketing mix that is product, price, place, and promotion in the success or failure of the company that Inteva in emerging as well as developing markets. The marketing strategies are very essential for a business to undertake in order to represent the features and benefits offered by the company's productsincomparisontothecompetitors'product.Thestudyisfocusedtowards recommending improvements required in the marketing mix of Inteva Products that could eventually enhance its performance of the organization. As per the marketing mix, it has been analyzed that company is involved in the manufacturing of four product lines that are Motor and Electronics System, Closures System, Door System, and Roof System. Besides this, the Salonta branch of Inteva product is not allowed to get involved in the price negotiation with the customers. Inteva Products has worldwide alliance with OEM production with technical centres and manufacturing operations on five continents that are Europe, South America, Africa, North America, and Asia. However, company is not able to promote its services in the market effectively due to which it has low brand recognition. Therefore, in order to increase brand recognition report has suggested company to adopt mass marketing strategies that is advertisement through television, radio, hoardings, etc. In addition, company must get involved in the personal selling in order to have an oral and personal contact with the clients by using sales representatives.
CRITICAL EVALUATION OF MARKETING MIX2 Table of Contents Executive Summary...................................................................................................................1 Introduction................................................................................................................................3 Marketing Mix Models Discussion........................................................................................3 Inteva Marketing Mix............................................................................................................5 Product Strategy of Inteva Products...................................................................................6 Price Strategy of Inteva Products.....................................................................................11 Place Strategy of Inteva Products....................................................................................11 Promotion Strategy of Inteva Products............................................................................13 Marketing Improvement Suggestions..................................................................................14 Product.............................................................................................................................14 Price..................................................................................................................................15 Place.................................................................................................................................16 Promotion.........................................................................................................................17 Ansoff Matrix.......................................................................................................................18 Market Penetration Strategy.............................................................................................18 Market Development........................................................................................................18 Product Development Strategy........................................................................................18 Diversification Strategy...................................................................................................18 Conclusion................................................................................................................................19 References................................................................................................................................20
CRITICAL EVALUATION OF MARKETING MIX3 Introduction A marketing model supports an organization to create services and products with best efforts for earning a profit. It is because the strategy of marketing starts with research, considering the demand of the target market, strategies adopted by the competitors, and the recent trends in the market. With the help of this information, a business can define the numerous types of benefits that are needed by the clients and customers, at what price and the way business can differentiateitsservicesformthecompetitors.Besidesthis,itsupportsbusinessin establishing an image and brand in the market (Naert and Leeflang, 2013). The aim of the study is to represent the importance of marketing models to establish business and enhance its performance in the market. The study will highlight the application of marketing mix that is product, price, place, and promotion in Inteva Products. Besides this, SWOT analysis is one oftheessentialinternalenvironmentalanalysisframeworksthatsupportbusinessin identifying the internal strength, weakness, and opportunities of the business. Moreover, the models and strategies adopted by the company will be evaluated and rational suggestions will be provided that can support the company in enhancing its performance in the industry. Marketing Mix Models Discussion Market Mix (4Ps) The report will be majorly based on the marketing mix that is 4Ps. The marketing mix is said to be a set of tactics and strategies framed by a business to promote its brand or products in the target market. The 4Ps make up the marketing mix that is product, price, place, and promotion (Išoraitė, 2016). Product Product is an item that is presented in the market to sell. The product should offer a minimum level of value, or else even the excellent work on another marketing mix element will not provide benefits to the business. Price Price is the amount asked by the business from its target customer in exchange of product offered.
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CRITICAL EVALUATION OF MARKETING MIX4 Place Place is said to be a point of sale. In all the industries, getting the attraction of the customers and encouraging them to purchase the product is the main agenda of place or good distribution strategy. Promotion Promotion is comprised of all the activities undertaken in order to make product visible to the customer (Bridoux and Kurki, 2014). 7Ps The 4Ps are presented by the businesses at the time when it is likely to vend its product, in place of services. Over time, Pitner and Booms included three more extended service mixes that are People, Physical Evidence, and Processes. People Marketing mix is comprised of people, which is focused towards discovering the number of people in the target market that are in need of services presented by the business (Yasanallah and Vahid, 2012). Physical Evidence Physical Evidence are said to be the material part of every service such as logos, business reports, website, buildings, signs, etc. Processes The processes and system of the business influence the execution of the service, therefore, it is very important for the business to ensure a well-tailored process in order to reduce the costs (Alnaser, Ghani and Rahi, 2017). 8Ps Productivity Productivity is less related with the company’s internal capability that the capability of offer the customers well. Productivity is combined with the quality supplied by the business must be always best.
CRITICAL EVALUATION OF MARKETING MIX5 Marketing Mix 4Cs The 4Cs (Cost, Communication, Customer, and Convenience) allow company to think about the customer interest more than its own interest or benefit. Customer Under this aspect, company only focuses on the selling the products that are required by the customers. This reflects that company only analyses the demand and behaviour of the customer. Cost Cost variable provide detailed information regarding customer in comparison to the price variable. Price is said to be the amount that customer is ready to pay for the product and cost is the amount that goes into the service or good production. Communication Communication is the activity that is focused towards maintaining relationship with the consumer with the major focus on its demand and lifestyle. Convenience Convenience is the element of marketing mix that is focused towards making it simple, fast, and easy for the customers to avail the services. Inteva Marketing Mix Inteva Products is considered the largest supplier of automotive in the world. It is one of the original equipment manufacturers in the industry. Headquarter of the company is in trop, Michigan and operate around 50 sites in five continents. The company is concentrated towards offering high quality, on a budget, and on time, Inteva possesses worldwide resources for manufacturing, customer, and engineering services, systematized around four main product lines that is Roof Systems, Interiors System, Motor and Electronic System, and Closure Systems. Inteva Products is involved in the intensely competitive industry, which is regularly throwing tough challenges on the doorsteps of the business in order to affect the performance of the companyin theindustry. IntevaProductispossessed withone of the mosttalented
CRITICAL EVALUATION OF MARKETING MIX6 management team that is focused on framing different policies and strategies to effectively deal with the competition and offer the best services to its clients. The company has planned a set of tactics and strategies that support in attaining the objective of the business that is to serve customers in the best possible manner. The strategies and tactics used by the Inteva Product to attract potential customers are: Product Strategy of Inteva Products Inteva Products offers different types of products that are directed towards middle class and premium class customers. The company is focused towards meeting the requirement and expectations of the consumers by applying quality practices that can regularly enhance their procedures and products while upholding a safe and environmentally responsible work area (Bloomberg, 2019). Inteva has four product lines that are Motor and Electronics System, Closures System, Door System, and Roof System (Diop, Riguaud and Cornuault, 2017). Closure System The Closure System on Inteva includes Door System and Latching Systems offering best services to the worldwide consumers. The Latching System of Inteva comprises compartment latches,electronicactuators,andassociatedstrikersthatprovideviablefunctionality, strength, and performance with diminished package size, cost, and weight (Inteva Products, 2019a). In Door Systems portfolio, Inteva manufactures, engineers, and designs products that involve the range of window regulators and integrated composite door modules and are distributed to 2 OEM consumers that are Suzuki and Dacia. Besides this, it is working with 4 intercompany consumers (Rychnov, Inteva Zhengjiang,Matamoros, and Sully sur Loire) Latching System Inteva is known as the top manufacturer and supplier of the latch, creating around 42 million latches yearly. In order to date their expert engineering and manufacturing teams have created around 2 billion latches offering services to more than 50 consumers globally. Their wide global engineering and manufacturing footprint offers continuous support for the consumers across the world (Autonomous vehicles, 2015). Inteva offer best sound performance that is desired by the customers in their vehicle. The competitive design of the company offers numerous benefits comprising:
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CRITICAL EVALUATION OF MARKETING MIX7 Improved crash value Exterior styling flexibility Compliance of numerous requirement of the consumer for use on lift gates, sliding doors, side doors, end gates, and cargo doors Low mass and compact size with high strength capability Enhanced durability Other latching systems products comprise: Liftgate Latches Strikers Side Door Latches Hood Latches Sliding Door Latches Compartment Latches Decklid Latches Source [(Inteva Products, 2019a)] Latch category is also categorized into 3 family types (Rear versions, passenger version, and driver version), 4 functionality types (Super lock safe version, ECL-Electrical Child Lock button, Central Door Locking type (without safe), and MCL -Mechanical Child Lock button). Front left driver latchesIt splits into two with safe and without safe Front Right Passenger latchessafe and without safe Rear left latchesIt split into two i.e. Electrical Child Lock button and Mechanical Child Lock button
CRITICAL EVALUATION OF MARKETING MIX8 Door Systems Inteva Products has a strong legacy of around 95 years of experience in door systems, gears, and modules. To date, company has designed, assembled, and produced more than 600 million window lift systems and 38 million door modules across South America, Europe, and North America. Inteva is considered as the leader of the industry in terms of door module innovation, establishing the first hybrid door module and all composite door modules in the market. Inteva Product is regularly raising the bar in terms of value-added innovation that enhanced reliability and performance. Company has advanced door module and window regulator activities are presently concentrated on the utilization of advanced plastics and addition for piece-cost savings, high savings for fuel efficiency and decreasing system variations for enhanced performance (Ogri, Okwong and Etim, 2013). Inteva Products is the trusted and proven with key experience in the integrated sub-systems comprising: Cables Window Regulators Door Trim (module based) Door Modules (Inteva Products, 2019a) Door Handles Latching system, handle, and lock Power and Signal distribution systems Side Mirror actuators
CRITICAL EVALUATION OF MARKETING MIX9 Structural components Audio systems Source [(Inteva Products, 2019a)] Roof System At present date, Inteva is using advanced technologies in order to fulfill the needs of the top automakers in all the size, configuration, and shapes while sharing its advanced growth notions and future vision of the sunroof in autonomous and electric vehicles. Across the world, the 20-plus roof slides of Inteva is dedicated to reducing mass and noise while increasing body strength, styling flexibility, opening size, and durability (Inteva Products, 2019a). Source [(Inteva Products, 2019a)] Motor & Electronic System With the progressive internal development competence, Motors and Electronics product line of Inteva provide a variety of well-organized and robust electric motors for motorized and light-duty customer applications (Inteva Products, 2019b). Electronics Integrated Anti-Squeeze Systems Electronic Door Control Modules
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CRITICAL EVALUATION OF MARKETING MIX10 Motors Rollo-Shade Motors Window Lift motors Seat Motors Sunroof motors Source [(Inteva Products, 2019a)] In a year, Inteva produces 10 Million Window Lift Systems, 4.5 Million Yards of interterm, 4 Million Roof Modules, 700,000 Cockpits, 3 Million Door Modules, 500,000 Consoles, 6 Million Interior Components, 20 Million Motor, and Electronics Systems. Besides this company, every day provides 125,000 Latches, which is around 45 Million Latches in a Year. In Salonta Market Inteva offers, its services to four consumers that are VW Group, Dacia, Renault Nissan Group, and PSA Group with 10-product lines offered to multiple locations of the customers in Europe. Packaging Packaging of different tools and equipment of car is performed under struck supervision of the management team such that product can be protected from any kind of damage. Some of the details of different product packaging is presented below:
CRITICAL EVALUATION OF MARKETING MIX11 PUPcsTypeTotal qty carton box12pallet180 blue returnable10pallet150 blue returnable12pallet180 green returnable12pallet180 metallic container14guiterbox56 Price Strategy of Inteva Products The Salonta branch of Inteva products has no right or authority to perform price negotiation with the consumers in the market. They have a skilled and dedicated team in its sales corporate department, which is directly responsible to interact and link with the consumers and create the quotations for the award of a new potential program. The Salonta Branch of Inteva products is famous for introducing different improvement programs in order to decrease the product pricesyearlyfor the consumers. For instance,Non-valueadded workshop dedicated towards inconsistency reduction and non-value added a project, head reduction by executing automated structure such as sealing robots, greasing robots, bowl feeders,OEEupgradingworkshopconcentratedondecreasingthestoppage,operator proficiency scrap, and FTQ enhancement (Skyfi Labs, 2019). Yearly, the company is focusing towards reducing the selling price up to 2% in order to make the customer happy and satisfied to utilize the top products of Inteva in their car. Place Strategy of Inteva Products Inteva Products manufactures, suppliers, and design engineered components and systems to original equipment manufacturers in the automotive industry. Head office of the company is established in Troy, with technical and manufacturing centers in Hungary, Romania, Brazil,
CRITICAL EVALUATION OF MARKETING MIX12 United States, India, China, Czech Republic, Mexico, France, Canada, Spain, Netherlands, South Africa, Poland, Germany, Slovakia, South Korea, and Japan (Bloomberg, 2019). CustomerTownCountry PSATrnavaSlovakia OpelZaragozaSpain PSARennesFrance PSAMadridSpain PSAMulhouseFrance PSAPoissyFrance PSAVigoSpain PSAKenitraMorroco Inteva Products has worldwide alliance with OEM production with technical centres and manufacturing operations on five continents that are Europe, South America, Africa, North America, and Asia (Bloomberg, 2019). Source[(Bloomberg, 2019)]
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CRITICAL EVALUATION OF MARKETING MIX13 Promotion Strategy of Inteva Products Inteva products are one of the known and huge organizations that design and manufacture automotive parts for its clients. It makes use of different methods of promotion that are direct marketing, public relations, and sales promotion to attract car makers in the automotive industry (Austomotive Plastic News, 2017). Direct Marketing Direct marketing is a type of advertisement in which companies directly communicate with the customers, with different methods like email, online display ads, promotional letters, outdoor advertisement, messaging, interactive consumer websites, catalog distribution, etc. (Subramanian, 2017). Inteva Products communicate its advertisement messages to its clients with the help of its website and other interactive consumer websites. It also distributes its catalogs and fliers to different carmakers through sales personnel and sales representatives. The catalogs and brochures carry the images of different machines and tools in order to attract its clients. Sales Promotion Sales promotion is a kind of non-media and media marketing communication, which is used by different organizations for a pre-defined limited time in order to increase the demand from the customer end and increase product availability (Genchev and Todorova, 2017). Inteva
CRITICAL EVALUATION OF MARKETING MIX14 Products make use of coupons, products samples, trade shows, and exhibitions to target potential clients to purchase the products. The company organizes different promotional programs, which is open for every carmaker to visit and understand the features of different tools manufactured by Inteva Products. Public Relation Public relation is also known as publicity of the information regarding the Inteva products, which is carried by a third party hired by the business in an indirect manner. This comprises free publicity along with paid efforts to encourage interest and discussion. It could be accomplished by establishing a big news story indirectly in the media, or representing it through corporate anniversary parties or press releases (Bernays, 2013). Marketing Improvement Suggestions Regular enhancement in the marketing activities supports businesses in attaining an increased return on investment.Regularenhancementisa form of qualitymanagementthatis concentrated towards doing small incremental improvement into a procedure, in place of putting efforts to attain key changes in the business (Linton, 2019). Inteva Products needs to make some of the changes in its marketing mix in order to enhance its brand image, brand recognition, and revenue. Product Product is said to be an item that is manufactured by the business to sell in the market. The product must provide a minimum value to the customers otherwise; other elements of marketing mix will not be beneficial for the company (Anusha, 2016). Inteva products are presently designing and manufacturing an extensive range of automotive parts to its clients in the industry like VW Group, Dacia, Renault Nissan Group, and PSA Group. It is designing door systems, closure system, Motor and Electronic system, and Roof System because it has experienced and skilled workforce that support in converting paper planning into practical implementation. However, the end user of the car does not recognize Inteva as a key contributor to the innovations in the automotive industry. In order to enhance the brand image, Inteva Products can adopt a forward integration strategy by being involved in the manufacturing of vehicles
CRITICAL EVALUATION OF MARKETING MIX15 along with the manufacturing of their parts. Forward integration is a technique that comprises a type of vertical integration whereby activities of business are expanded to regulate the direct distribution or company’s product supply chain (Bresnahan, 2012). This strategy will help Inteva to increase its revenue, customer base, and brand recognition in the industry. However,on the otherside, thiswillincreasetheburden and work pressureof the management team of Inteva that can directly affect the quality of its products. Inteva Products can also put its efforts to rename its brand or change the logo of the business, as through present logo and name company is not able to enhance its brand image and brand recognition among customers. Moreover, the new logo and name will offer another chance to Inteva be established in the market as a premium brand for their automobiles. Furthermore, Inteva Products can work on changing the classic screen that is of round head to quick screw butterfly. A butterfly screw is in the shape of butterfly, which makes its appearance more interesting. This butterfly design is ideal for usage in which the axis is noticeable and hardware is more effective (Müller and Allgöwer, 2012). Price Price is value demanded by the company in exchange of its product from the customers in the target market (Deshpande, 2018). The Sales Corporate Department of Inteva Products is responsible and accountable for negotiating the price of its products with its clients, as they are skilled and trained in a particulararea.Thecompanydoesnotallowanyotherbranchtoperformtheprice negotiation such as Salonta Branch with its clients in order to maintain centralized regulation and control authority (Inteva Product, 2019b). This is also because to maintain the budget of the business. However, centralized price negotiation raises numerous types of difficulties for the workforce suchasunabletointeractproperlywiththecustomerswithoutpricenegotiation accountability. Besides this, it becomes time-consuming for the customers to interact with the sales team of the main branch for the price negotiation. In order to improve this procedure, Inteva Products need to allow the Financial Team of Salonta Broach to negotiating regarding the product prices with the clients. This will result in saving time, and money of both company and clients.
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CRITICAL EVALUATION OF MARKETING MIX16 Inteva Products need to design different price structure for its entire branch considering the location, scope, and size of its every client businesses. This will support in eliminating different type of confusions among the client and will offer opportunity to potential customer to purchase the automotive parts from Inteva Products Place The place of distribution is selected by the company in consideration of the mass of customers available at the selected place. It is one of the essential aspects of the marketing mix framework that must be taken very seriously by the management of the company (Karakaya, Badur and Aytekin, 2011). Inteva Products offer its services in different markets such as India, Japan, South Korea, South Africa, US. Etc. The company has adopted geographical segmentation strategy, according to which business target customers according to the geographical area like location, language, and other general elements that divides geography from the other geography. This strategy is considered one of the most basic kinds of market segmentation. However, in order to be competitive and cover highest market share, Company needs to expand its operations in more locations such as in Asian Countries there is the highest demand for cars. Inteva Products can expand its business operations in Thailand, Malaysia, and the Philippines, as these countries manufacture a maximum number of cars in the Asian region. From the analysis, it has been identified that Thailand manufactures 1,944,417 units, Malaysia manufactures 513,445 units, and the Philippines manufactures 135, 840 units in a year (Salikha, 2017). However, it will be very tough for Inteva Products to establish its presence in these markets because there is intense competition, which does not allow any other company to enter the market. Inteva Products need to hire more employees at its each branch as logistics and supply chain managers this will support company in having major control over the inventories and raw material that will highly eliminate the chances of damages and inventory lost. Besides this, they can assist the management team of Inteva Products in implementing different inventory management strategies in the business. However, on the negative side, hiring different logistics and supply chain managers will be costly for the business and can disturb the overall budget of the finance department.
CRITICAL EVALUATION OF MARKETING MIX17 Promotion Marketing strategies are comprised of numerous types of activities that are used by the business to introduce the product in the market successfully. One of the essential elements of the marketing mix is promotion, which is used to market the product among customers and increase its sales (Pour, Nazari and Emami, 2013). IntevaProductsisinvolvedinthepromotionofitsproductstoattractdifferentcar manufacturers and dealers in the automobile industry. The company majorly use direct marketing, sales promotion, and public relation promotional strategies in its promotional mix setting in order to only target business clients such as car manufacturers and dealers. But company is not involved in mass marketing strategies due to which it has low brand recognition in the market. The end customers in the industry do not recognize Inteva Products as the key manufacturer of automotive parts, which directly affects the brand image of the business. In order to increase the brand recognition and brand image, Company needs to adopt different strategies of the promotional mix such as Advertisement and Personal selling. Advertisement The advertisement is said to be a paid promotion and presentation of thoughts, services, or goods by a recognized sponsor in a mass medium. For instance, radio, catalogs, in-store displays, print ads, billboard, television, signs, direct mail, web pages, posters, brochures mobile apps, motion pictures, emails (Kumar and Raju, 2013). Presently, Inteva Products is not using advertisement strategy in its promotional mix due to which it is incapable to represent its contribution to the automotive sector. The company must use television, and radio to promote its products features that can offer additional privilege in driving cars. Besides this, if the company moved towards the segment of manufacturing cars along with its equipment, TV and radio advertisement will be very beneficial for the business to promote its services. On the negative side, promoting products through televisions and radio will result in increasing the marketing cost, which will eventually disturb the budget of the company. Personal Selling Personal selling is the procedure of persuading and helping prospects to buy a good or service with an oral presentation, frequently in a face-to-face way or by telephone, for instance, sales
CRITICAL EVALUATION OF MARKETING MIX18 meeting,samples,telemarketing,salespresentations,andincentiveprogramsforan intermediary salesperson (Antczak and Sypniewska, 2017). Inteva Products need to adopt personal selling strategy using sales representative who can visit different clients to promote its products. Ansoff Matrix Ansoff Matrix is said to be a strategic tool that offers a framework to support marketers, executives, and senior managers plan strategies for future growth. This matrix is focused on existing and potential customers and products (Craig and Campbell, 2012). Market Penetration Strategy Market penetration is the strategy used by companies to grow in the industry by offering its present products in the existing market. It makes efforts to grow its share in the market in the present market state. Inteva Products can use market penetration strategy in order to increase brand awareness and recognition among the customers. Inteva can make use of improved promotion strategy to target its existing customers in the existing market. Market Development Market development strategies are used by the business to expand its operations in the new market by using its existing offerings. Inteva products can make use of market development strategybyintroducingitsoperationsindifferentAsiancountriessuchasMalaysia, Philippines, and Thailand. Product Development Strategy Product Development Strategy is used by a business to develop new products that will be targeted towards the existing market to attain growth (Fuller, 2016). Inteva Products need to be involved in the manufacturing of cars along with its equipment and tools to its existing customers to increase its revenue. Diversification Strategy Inteva products can diversify its offering by manufacturing cars along with tools and equipment in order to increase its market share in the new target market. A diversification
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CRITICAL EVALUATION OF MARKETING MIX19 strategy will support Inteva Products to make customers aware of its quality and contribution in terms of innovation in the automobile industry. Conclusion The above report has provided a detailed analysis of the Inteva Product's Marketing mix along with marketing improvement strategies that could support the company in increasing its revenue and enhancing procedures. The report has analyzed all the four Ps of the marketing mix that is a product, price, place, and promotion of Inteva Products in order to analyze its strategies used in the market. From the above analysis, it has been recognized that Inteva Products is presently offering automotive parts to its clients in different countries. However, it is incapable to increase its brand recognition among customers due to insufficient market strategies to promote the offering. The report has suggested that the company needs to adopt personal selling and advertisementasthe promotionalmix tool to enhanceitsbrand recognition. Besides this, the report has also highlighted that the company can increase its market share by adopting product development and diversification strategies. Inteva Products can adopt forward integration strategy and start manufacturing cars along with its equipment.
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