Introduction to Marketing: Assessment 2

This document provides an introduction to marketing and focuses on topics such as consumer decision making process, Porter's five forces model, GE matrix, BCG matrix, and segmentation, targeting, and positioning in the automobile sector.

INTRODUCTION TO
MARKETING
assessment 2

Table of Contents
INTRODUCTION ..........................................................................................................................1
Explain consumer decision making process to automotive industry..........................................1
Apply porters five forces model..................................................................................................2
GE matrix....................................................................................................................................4
BCG matrix.................................................................................................................................5
Range of different segmentation, targeting and positioning used by the automobile sector......6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to the process of giving the profitable results to the company that helps
in satisfying the needs and want of the customers and gain long term and short term goals. This
also helps in gaining the competitive advantage within marketplace so that high sustainable
outcomes can be get by the business enterprises. It main aim is to enhance the knowledge related
to company so that high profits can be attained by the company. That helps in gaining higher
success of the company. This report includes the Renault that is a French multinational auto
mobile manufacturer. The company can combined the 6 brands that are Dacia's, Samsung,
Alpine, LADA, Venucia etc. This includes the consumer decision making process that helps in
gaining high profitable market. Further it includes the porters five forces model, GE, BCG
matrix which helps in gaining the high market share and position within competitive
marketplace. At last it involves the different segmentation, targeting and positioning by using
STP model so that high market share can be captured easily(Di Lorenzo-Aiss and Mathisen
1996).
MAIN BODY
Explain consumer decision making process to automotive industry
Consumer decision making process refers to the process in which buyers are become
aware related to their needs and desires. In this they can collect the information related to the
products and services so that they can effectively take the purchase decision and examine their
buying decision effect6ively and appropriately. In context of Renault manager can prepare a
consumer decision making process so that they can get high number of customers and enjoy
more profits. The process can be shown below:
 Need recognition- It is the primary stage of this process in which consumer can examine
their needs and wants related to buying decision. It can be prompt internally or externally.
In case of Renault company can highly focus on the needs of the consumers that they are
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buying the cars. For instance- If a consumer can focus on buy a car to show their status
within the society. In this manager can focus on creating awareness related to their
products so that customers take their positive decision towards the firm. At this timer
customer can examine the several information related to the automotive products so that
their purchase is to be done easy(Grönroos, 1994).
 Search for information- After recognising the needs by the consumers they can focus on
gathering the several information related to the automotive that helps in their purchase of
the cars. For example- If a customer can focus on buyi8ng a new car that he will highly
focus on gathering the more information related to the different car companies and their
offered services and features and design of the car. It reflects as an external approach in
which customer can checked the several aspects to strong their purchase decision.
 Evaluating for alternatives- It reflects as a third stage in the costumer decision making
process in this consumer can examine the several brand in the market related to
automotive company on the basis of their features, design and services of the products
and organisation. This helps in meeting their aim of the buyers related to purchasing the
car. It is complex situation for customers to compare the several companies as per their
viability, accessibility and affordability(Kotler and et. al., 2017).
 Purchasing decision- After evaluating the alternative customers can focus on taking the
purchase decision and done their purchase which can fulfils their needs and demands
related to their buying in effective and efficient manner. In this buyers purchasing is
highly influencing by the social media, crowd leads, family and friends etc. This is also
beneficial for the company profits and sustainability.
 Post purchase evaluation- This is the last stage where consumer can give their reviews
regarding the products and services which they purchase and use it. It will reflects by the
consumer behaviour, feeling, satisfaction after usage of the Renault products and
services. Good reviews of the customers help in gaining high market share and low
reviews can negatively impact the company profits and sustainability.
Apply porters five forces model
Porter's five forces is structure of observing and analysing the different companies or
competitors. It helps to observe and control company's debility or weakness and power. This
analysis constantly used to observe or identify an organization's framework decide business
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strategies. Porter's model can be put into any component of the economy to get a idea about the
different quantity of competition with in the business or sector and improve the long term
productivity and profitability(Laverie, 2006).
Competitive Rivalry- In Renault company the competitive rivalry is high, there are
various competitors of this company such as : Nissan, ford, Honda and Chrysler. This industry
constantly to grow as a combine and associates are found between different manufacture or
producer pool the techniques and resources for good or improved results. In this company the
fixed cost is high of the business as a initiate in manufacturing plant and retailing cost or
marketing cost in billions of dollars. In Automotive sector produce and offer different or various
products. Dedications make it challenging for an organization to leaving this industry.
Customer's would sustain a average switching cost if they want to produce a vehicle of different
or another manufacturer as a model costs in thousands in dollars. Each output or product is
different or composite. Communication between customer and producer is important, as a output
competitive rivalry extreme(Mohr and Shooshtari, 2003).
The threat of new entrants -In Renault company the threat of new entrants is low, It has
accepted the presentation and cost benefits through more experience . It accept brand in the
automotive industry. Customer sustain a average switching cost if their car is a new and
minimum or low switching cost id their car is older. The channel of distribution is other issue for
new beginners. Licenses and assent and different rules or regulations issued by the government
is required. In this industry those are already in they get benefits in production, performance and
development cost.
Bargaining power of suppliers - The resources and materials is require by this company
take in plastic, paint, glass, Aluminium and different other resources, all of these products and
materials are not special these are normalize. This is also a reason switching cost for company in
automotive sector , minimum or low in process material are not change. In this industry the short
term contract with suppliers is easier for shift to the suppliers. But if good relationship build with
suppliers then new one cannot simply enter the industry as a standard and other elements are
requires trust that create through time. Many suppliers are ready to give the required resources
as the company offers industry in millions , thus their bargaining power of suppliers is low they
are not in a situation(Parasuraman, Grewal and Krishnan, 2006).
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Bargaining power of buyers - In this industry the buyers are large in numbers in
automotive sector but buyers making costly purchase in Instalments that last for some years. The
cost of shifting is low for buyers, they can sell their current car and buy new car at any time.
Customer can get important information about the car or product from different third party and is
they know about the needed information. Buyers also keep budget in their mind for car.
Customers can modify their car according their budget and lifestyle, they can give payment in
monthly instalments also.
The threat of substitutes- In this industry the threat of substitutes are average, the
substitute of cars are : buses or public transport, railway, bike, bicycle and many more , each of
them is a acceptable substitute that is frequently made use by buyers . Renault have various
boundaries and performance bound in phrase of comfort and justifying with owning or buying a
car. The cost shifting sustain by buyers are in terms of fares, passes, tickets and etc. there are
different substitute are in market for the manufactured by Renault(Piercy and Morgan, 1990) .
GE matrix
It refers to that strategic decision in which business firm can evaluate the overall strength
which helps in developing the products, brand, potential product can be mapped within then
similar industry. This model is to be developed by the McKinsey in 1970. IN case of the Renault
and Ford this matrix can be shown below:
 Grow- This strategy reflects the industry attractiveness and also the strength of the
business unit. In context of Renault, this strategy represent the invest of the business
within the products and services for gaining high profits and sustainability. In this
Renault prominent and star products are to be included and manager can highly focus on
investing those products so that they has large base of customers and also the competitive
advantage. In this company can highly invest in the promotional strategy of their cars so
that they can gain high profits. For instance- Ford can highly focus on their technological
aspects because it helps in growing their market within the competitive business
industry. This will helps in giving the high returns to company(Roese, 2000Sargeant,
1999).
 Hold- This aspect is related to that factor in which company can invest if they can have
financial resources after investing in the growth products. For example- Renault can
focus on hold their KWID for future modification because it gives the high profits after
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focusing on their designing. Another Ford which is a best car manufacturer in the world
can focus on holding their Figo as it is good in features but the design of the car is not
much better due to this company can highly invest in this.
 Harvest- In this factor company can harvest their investment and invest in the growth
products. Company can face major loss due to this they can divest the amount and invest
in the success one. For instance- Renault can highly focus on removing their invested
amount within the Lodgy as their worst pe4rformance within market and because of this
company can face high loss. Another one is Ford in which company can de invest their
amount within the Ecosport as it is not providing the safety features within their cars. Due
to this customers are not highly investing their money to purchase this car within UK.
BCG matrix
This matrix is highly based on the product life cycle which is used to examine the high
priorities of the company on the products and services based. In this company have the high
portfolio of products which need high growth products that includes cash inputs and also the low
growth commodities in which company can remove their financial resources. In case of Renault
and Ford this can be shown below:
 Stars- It refers to that framework in which company star products are to be included that
helps in enhancing the sales growth and market share. In context of Renault they can
generate the high profits and revenues in the European market by investing high in their
duster cars as it is cost effective and also technology updated. For instance- Ford can
highly focus on Endeavour as it is highly effective because of their safety features which
is highly liked by the costumers(Skaates and Tikkanen, 2003).
 Cash cow- In this aspect of BCG framework company can focus on segment their market
ion the basis of low sales growth and high market share. For instance Renault can highly
focus on those car which cannot perform high in the UK as their growth is low in context
of sales because of their Dacia brand their production can be mainly done in Romania
due to this their cost is too high in selling the products within the UK market. For Ford ,
the product that are under the cash cows are those which contains high cost in their
manufacturing but cannot attract the large base of customers within marketplace.
 Question mark- In this framework Renaulat included their Kwid which is highly
effective in features due to this many middle class people can mainly focus on
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purchasing this one and this will generate high profits and revenues. Sometimes it will
create question market in the company growth due to this firm can do high
promotion(Vriens, 1994).
 Dogs- This type of products are worst and organisation can highly focus on removing
their investing amount within this. In Renault, company focus on remove their amount
within their Lodgy cars which is not effective and also contains high cost sue to this
company can face major issue and loss. For instance- Ford can de invest their amount
within the Ecosport because of their worst safety features customer cannot buy it. Inn this
major loss can be face by the company and it also impact their brand image.
Range of different segmentation, targeting and positioning used by the automobile sector
 Segmentation- It is a process by which the Renault divide the whole market into various
segments as per the demographics such as age, gender, occupation, marital status etc. The
products offered by the company are of good quality which becomes with fit and fine
finishing. Also the cars of renault are known for his fuel efficiency as the mileage of all
the models are efficient which makes it popular among the middle class people who seek
affordable car with minimum cost of maintenance. Renault has various models for
different category of people such as Renault kwid for the middle class people. This
process helps the company to target their customers more effectively. By this company
would be able to identify which product will be targeted to which category of people.
This helps in the reduction of time and cost involved in prospecting and generating sales.
Also segmentation helps the company to develop and apply new strategies to penetrate
into the market more deeper and effectively which ultimately increases the revenue of the
organisation. Similarly, through segmentation it is possible to make changes in the
product as per the category of people for providing them products of their own
requirements which helps in increasing customer satisfaction and goodwill of the
organisation(Weitz, 1985).
 Targeting- For targeting, this report includes the Renault automotive company. In this
company can target their customers as per the segmenting and it can be done on the basis
of interest, age, income etc. of the people. Majorly company can targets the middle class
people by doing the awarenesses within marketplace. This will generate the high profits
and revenues of the business enterprises(Wheeler, 1995).
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 Positioning- In position step company Renault can highly focus on their promotional
strategy by using the social media and also several marketing campaign. This helps in
attracting the large base of customers and gaining high profit market. For Ford company
can high focus on positioning their brand by using their technological feature and also
adopting the artificial intelligence. It can be done by using the proper segmenting the
market and also targeting. It will enhance the high market share and also gaining the loyal
customers(Wind, and Mahajan, 1987).
CONCLUSION
From the above report it is concluded that marketing is very prominent term to gain and
attracts the high base of customers. It inculcates the consumer decision making process that helps
the automotive industry to attracts the large base of customers. Further the porters five forces
model helps in gaining the competitive advantage. Further the GE matrix and BCG matrix helps
the business enterprises to gain the competitive strength so that high proficiency results can be
shown. It also inculcates the several segmentation, targeting and segmenting the Renault
products so that company cost is to be maintained and it helps in longer sustainability of
business.
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REFERENCES
Books and Journals
Di Lorenzo-Aiss, J. and Mathisen, R.E., 1996. Marketing higher education: Models of marketing
internship programs as tools for the recruitment and retention of undergraduate
marketing majors. Journal of marketing for higher education. 7(1). pp.71-84.
Grönroos, C., 1994. Quo vadis, marketing? Toward a relationship marketing paradigm. Journal
of marketing management. 10(5). pp.347-360.
Kotler, P. and et. al., 2017. Marketing for hospitality and tourism.
Laverie, D.A., 2006. In-class active cooperative learning: A way to build knowledge and skills in
marketing courses. Marketing Education Review. 16(2). pp.59-76.
Mohr, J.J. and Shooshtari, N.H., 2003. Introduction to the special issue: marketing of high-
technology products and innovations. Journal of Marketing Theory and Practice. 11(3).
pp.1-12.
Parasuraman, A., Grewal, D. and Krishnan, R., 2006. Marketing research. Cengage Learning.
Piercy, N. and Morgan, N., 1990. Internal marketing: making marketing happen. Marketing
Intelligence & Planning.
Roese, N.J., 2000. Counterfactual thinking and marketing: Introduction to the special
issue. Psychology & Marketing. 17(4). pp.277-280.
Sargeant, A., 1999. Direct marketing.
Skaates, M.A. and Tikkanen, H., 2003. International project marketing: an introduction to the
INPM approach. International Journal of Project Management. 21(7). pp.503-510.
Vriens, M., 1994. Solving marketing problems with conjoint analysis. Journal of Marketing
Management. 10(1-3). pp.37-55.
Weitz, B.A., 1985. Introduction to special issue on competition in marketing. Journal of
Marketing Research. 22(3). pp.229-236.
Wheeler, M., 1995. Tourism marketing ethics: an introduction. International Marketing Review.
Wind, J. and Mahajan, V., 1987. Marketing hype: a new perspective for new product research
and introduction. Journal of Product Innovation Management. 4(1). pp.43-49.
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