Introduction To Marketing

This document provides an introduction to marketing and its significance in business operations. It discusses the SWOT and Porter's Five Forces frameworks used in marketing audits. It also explores Dacia's marketing segmentation in the UK and their current marketing mix strategy. Additionally, it offers suggestions to improve targeting a better market.

Introduction To Marketing
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. SWOT and porter five force framework of Dacia...................................................................3
2. Information related to Dacai key marketing segments in UK.................................................4
3. Current marketing mix strategy of Dacia and suggestion to improve so that company can
target better market......................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Marketing is essential function of organisation that includes several activities or action to
promote business operation or its products and services to end customers. It also helps in
creating strong brand image of company in minds and hearts of people by fulfilling customer’s
requirements beyond their expectancy level. This report is about Dacia is an Romanian car
manufacturer that have established its business operation in 1969 in automobile industry with an
motivate to earn huge amount of profit by satisfying needs of customers. It has made use of
SWOT and Porter five force frameworks in order to conduct marketing audit of Dacia and also
contain information related to marketing segmentation done by company in UK.
1. SWOT and porter five force framework of Dacia
SWOT analysis is model that is used to understand several internal and external factors of
business that impact on growth and sustainability of enterprise in particular industry. It helps in
identifying key strength, weakness, opportunities and threat of business that contribute enterprise
in retaining competitive positioning in automobile industry (Fill and Turnbull, 2016). Therefore
SWOT analysis of Dacia is as follows:
Strength: Company strength lies in its strong brand image that helps in adding new and new
customers within organisation thus enhancing overall sales volume and profitability. Dacia have
dealers network of 134 outlets and with 450 trained employees that have knowledge and skills
related to the way vehicles are sold to end customers. It is one of the largest firm in Romania on
basis of exporter and revenue generation like it consist of 8% of total export made by country in
2018. Therefore, Dacia have huge market share, strong reputation that helps in expanding
business operation across different parts of country.
Weakness: Despite of so many strength of firm, there are key areas in which it lacks like Dacia
has limited presence in international market thus company is able to earn limited profitability.
Recall of cars at several times have impacted on brand image and customers satisfaction level so
company needs to take steps to remove key weakness in order to promote business.
Opportunities: It can be stated that Dacia have opportunities to enter into emerging segment in
order to add new customers within organisation. Increase in online presences is another
opportunity that can contribute in enhancing overall profitability of firm as customers can easily
book or select vehicles as per their ease and comfort (Hänninen and Karjaluoto, 2017).
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Threat: There are several threats that are faced by company like increasing competition level,
changes in technology, government policies and taste and preferences of customers. All such
uncertain or sudden changes acts as high threat on growth and sustainability of Dacia in external
environment for longer time frame.
Porter five force
It is another marketing audit model that helps in understanding major five factors that
shape particular industry like power of consumers, power of suppliers, existing rivalry, threat of
substitute product and threat of new entrances. Like :
Existing rivalry (High): There are numerous competitors in automobile sector in which Dacia
operates its business thus company have to face tough competition from several firms in order to
grow and survive in external environment. Dacia through using differentiates method to meet
customers expectancy has retained its competitive positioning in industry (Wedel, Bigné and
Zhang, 2020).
Power of consumers (High): Recently, customers have more power than suppliers or
organisation due to availability of several alternative options in automobile industry. Therefore,
bargaining power of consumers is high but Dacia through delivering innovative, unique and
qualitative vehicles and services have charged competitive and premium price form customers.
Power of suppliers (High): There are less numbers of suppliers in automobile industry as the
raw materials are too expensive so they are able to charged high price from various
organisations. Therefore Dacia in order to get raw material at minimum price has maintained
strong relationship with them thus attain its objectives.
Threat of substitute product (Medium): It can be stated that there are few companies that tries
to imitate products and services of Dacia in order to induce customers to be part of them rather
than firm. So, company have make use of patent and trade mark to avoid competition.
Threat of new entrances (Low): Dacia has strong presences in market so new enterprise require
large amount of capital to promote and operates several functions in automobile sector.
2. Information related to Dacai key marketing segments in UK
Marketing segmentation can be termed as classification of individuals into several
groups or segment in order to understand their relative taste and preferences so that right strategy
can be used to influenced them. There are different methods that are used by company to
segment or classified individuals in society like:
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1. Geographical: The first basis that is considered by marketing manager of Dacia to
segment individual is geographical or location at which people stay. On the basis of
location it have identified their belief, value and preferences thus set appropriate
strategies to influence select company products or services for fulfilment of their needs
(Wang and Kim, 2017). Therefore, geographical location is also one of the criteria that is
used by Dacia to target its customers and expand business operation.
2. Demographical: It is another key marketing segment in which manager have classified
people on basis of age, religion, gender, caste, disposable incomes. Dacia marketing
manager by classifying people into different category have offered vehicles that can
easily fulfil their wants. For examples: customers on basis of their income level select a
particular vehicles that can helps them to travel or mode from one place to another’s.
Therefore, Dacia have vehicles for all people whether they belong to rich or poor class,
are either male or female or are under or below age of 35 thus it helps in meeting wants
of different segment groups and increasing profitability of firm.
3. Psychological: Marketing manager of Dacia have segment individuals on psychological
basis also which included factors like value, interest, attitude, lifestyles and personality of
individuals. Company by classifying group of people on psychological basis or their
interest, lifestyles and attitude is able to decide appropriate vehicles that need to be
offered to specific individuals so that it can become loyal customers of firm (Baker and
Hart, 2016).
Dacia by classifying people on basis of different segment like demographical, geographical
and psychological is able to planned correct actions or steps that can be fruitful in motivating
customers to prefer it rather than other competitors in market. Segmentation has help firm in
understanding demands and needs of specific segment people thus plan right strategies that could
help in gaining maximum outcome.
3. Current marketing mix strategy of Dacia and suggestion to improve so that company
can target better market
Marketing mix is strategy that is used by organisation to promote its products and
services to maximum number of individuals so that company can enjoy high sales volume and
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market share. Dacia has make use of marketing mix strategy to grow and develop its market
share like:
Product: There are four model of car that can be chosen by people in UK, among them Dacai
Sandero is small car with two engines and simple configure. It cars have large space thus family
members can easily seat and travel different places for their respective task. Therefore, Dacai
have offered varieties of vehicles to customers to choose among with different varieties and
facilities at reasonable prices so that people are influence to prefer it rather than other
competitors in market (Hanlon, 2019).
Price: Company has make use of penetration pricing strategy or low cost so that people that are
highly price sensitive can be motivate to make use of vehicles of Dacia to fulfil their respective
requirements. Organisation also offer finance facilities so that customers can easily make
payment in instalment as per their ease and conveniences.
Place: Main operation of company is in Romania whereas it has production in different parts of
world so that it can provide maximum value products at minimum rates. Customers can easily
order vehicles through personally coming at stores or booking online on official website of
company.
Promotion: Dacia has make use of digital as well as traditional marketing method to generate
awareness among millions of customers in order to enhance revenues and sales volume of firm.
People: Company have highly talented and trained employees that are ready to give their best so
that Dacia can gain competitive advantages in automobile industry.
Process: It can be stated that Dacia have effective system or process and procedure regarding the
way particular task can be completed and best services can be delivered to customers (Patil and
Bach, 2017).
Physical distribution: It also helps in expansion of firm such as Dacia have strong distribution
network channel and number of stores in numerous countries thus people can easily make
purchase vehicles as per their requirements.
Recommendation
It can be suggested that Dacia needs to make innovation in its vehicles, make maximum
use of digital technology to deliver services to end users. Company through increasing its online
presences can easily attract millions of customers in limited time frame and cost.
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CONCLUSION
It can be concluded from above report that marketing segmentation, mix helps in
enhancing customer’s satisfaction and market share of enterprise. It can also summarised from
above analysis that Dacia by making use of different strategies have cover huge market share in
domestic and international market.
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REFERENCES
Books and journals
Baker, M. J. and Hart, S. eds., 2016. The marketing book. Routledge.
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Hanlon, A., 2019. Digital marketing: strategic planning & integration. SAGE Publications
Limited.
Hänninen, N. and Karjaluoto, H., 2017. The effect of marketing communication on business
relationship loyalty. Marketing Intelligence & Planning.
Patil, D. D. and Bach, C., 2017. Marketing-Mix For Strategy Building. Marketing, 4(4).
Wang, Z. and Kim, H. G., 2017. Can social media marketing improve customer relationship
capabilities and firm performance? Dynamic capability perspective. Journal of
Interactive Marketing, 39. pp.15-26.
Wedel, M., Bigné, E. and Zhang, J., 2020. Virtual and augmented reality: Advancing research in
consumer marketing. International Journal of Research in Marketing, 37(3).
pp.443-465.
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