Principles of Marketing: Volkswagen's All Electric Vehicle Concept

This document discusses the principles of marketing in relation to Volkswagen's all electric vehicle concept. It covers market analysis, key competitors, customer attitudes, and segmentation targeting and positioning strategies.

Principles of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
PRODUCT/SERVICE DESCRIPTION..........................................................................................2
A) A brief description of the new or improved product or service that is the focus of the
company.................................................................................................................................2
MARKET ANALYSIS....................................................................................................................3
B) Including a brief analysis of the market............................................................................3
C) Key market trends of electric vehicle in the UK...............................................................4
D) Analysing the key competitors..........................................................................................4
E) Summarising the current customer attitudes/behaviours in the market.............................5
SEGMENTATION, TARGETING AND POSITIONING (STP)...................................................6
F) Segmentation......................................................................................................................6
G) Summarising the profile and persona of the targeted market segment.............................6
H) Including a statement that identifies why the target market should buy the improved
product or service...................................................................................................................7
RECOMMENDED MARKETING MIX........................................................................................7
I) Marketing Mix....................................................................................................................7
CONCLUSION................................................................................................................................8
REFRENCES.................................................................................................................................10
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INTRODUCTION
Marketing refers to the activities and actions a company forms for promoting the sales and
purchase of its production services. Marketing is a very broad term which includes numerous of
activities beginning from market research and ending on the sale of the product or service to the
potential consumer. Marketing includes several activities such as advertising, promotion, selling
and development of brand image. In simple words marketing seeks to take a product or a service,
identify their particular and ideal consumers and drawing their attention towards the specific
product or service. The report is based on marketing principles and the chosen organisation is
Volkswagen (Palmatier and Crecelius, 2019). The company was founded in 1937 by German
labour force and it is headquartered in in Wolfsburg, Germany. The organisation is considered as
the largest automaker of the world according to the sales unit of it in the recent past year. The
report covers a thorough description of a new or improved product or a service. A market
analysis is also conducted in which key market trends, competitor analysis and customer
behaviour are identified in the respective company along with the main opportunities relevant to
the organisation. Moreover, a appropriate segmentation targeting and positioning strategy is
developed according to the market analysis conducted. And at the end a marketing mix strategy
is generated.
MAIN BODY
PRODUCT/SERVICE DESCRIPTION
A) A brief description of the new or improved product or service that is the focus of the
company.
The organisation and the brand Volkswagen is world famous and known as the largest automaker
in the globe according to the past worldwide sales unit of the company. Volkswagen is existing
in the market from several decades and known for its innovative and environment friendly
products and services (Migliore, Howard and Gray, 2018). The meaning of the word
Volkswagen in German is “people’s car”. The brand Volkswagen offers several different models
and types of cars and vehicles to different segments of the society according to their needs,
desires and more importantly their abilities. The company is regularly evolving in all different
aspects for providing the best designed and technological cars to the people and to targeted
audience. From the very beginning the company has evolved providing old different types off
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cars to the respective audience. Volkswagen operates and provides its products and services in
worldwide location and the largest Market of it is in China where it delivers around 40% of its
sales and profits. The new product and offering which the organisation is planning to bring in the
market by 2020 is its electric vehicles. A very high buzz is already surrounding the market about
the three highly anticipated Volkswagen electric concept vehicles named as ID SPACE
VIZZION, ID.4 and ID. BUZZ. The new product offering of Volkswagen is its electric car
concept and the company also claims to be all electric in near future by introducing almost 70
new electric cars in the market. The Volkswagen group have said that organisation is on the
brink to the biggest transformation till date and announces they switch to making electric cars
exclusively (Bernyte, 2018). Many of the manufacturing factories of Volkswagen are already
started switching their operations over to exclusive production of green electric cars starting
from Zwickau in Germany where the production of ID.3 will be starting from November. Along
with it the organisation also cleans that all of this production units and change for the ID concept
will be completely CO2 neutral. Volkswagen is focusing over renewable and reusable resources
with the high performing anticipated top tracks seeds and fast charging. All the electric vehicles
which are supposed to enter the market by the end of 2020 and id3 unique look of the vehicles
brings back the memories of Volkswagen their the company promises a revolution in everyone’s
future. Therefore, the new product offering of Volkswagen is revolutionary and consisted of
latest technology and trends along with the production process of environmental friendly
operations by making use of reusable and renewable resources. The new product offering of
Volkswagen is the concept of all electric vehicle where organisation is planning to enter with
Value products by the end of 2020 with the help of sustainable means of production and with the
latest updated technology bringing revolution in the automobile sector by their unique designs
and utmost comfort.
MARKET ANALYSIS
B) Including a brief analysis of the market.
The electric vehicles market in the UK is amped up and on the rise. In simple words the
electric vehicle market around the globe is evolving rising on a very fast pace (Sahaf, 2019). In
the recent past year the global sales of new electrical vehicles have shown a rapid rise and
brought use opportunities and profit for the organisations. The electric vehicle market is
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gradually increasing and gaining its speed bringing a revolutionary change in the automobile
sector and in the World. Volkswagen is the largest automaker and one of the biggest market of it
is China from where the organisation earns 40% of its sales and profits. China also remains
firmly in the lead on the electric vehicle index where a very significant expansion of Chinese
Market over the previous years have seen and which puts in the leadership position in the electric
vehicle sales. Their soul the market for Volkswagen all electric vehicle concept is very large and
beneficial. A lot of opportunities and growth is available for the business and mainly its electric
vehicle concept in the coming years (Gilligan and Lowe, 2018).
C) Key market trends of electric vehicle in the UK.
The United Kingdom’s electric vehicle market showed a very huge improvement and the
projection is made to the growth at a very robust speed. Anticipated growth in the market can the
attribute to the increasing affordability of electric vehicle offered by the leading automobile
manufacturers and increasing need of running on cleaner fuels for automobile companies due to
urgent of pollution levels. The current trends of the UK market shows the robust and
aggressively increasing sales electric vehicle along with projection of more and more demand of
environmental friendly electric vehicle. The market trend of automobile sector in the UK are as
follows:
 More people are opting for AFV Vehicles- The current trends and researches analyze
that the alternative leaf used vehicles and their use is increasing. The people of UK
diverging towards alternative fuel vehicles (Morrison, 2018).
 Increasing use and demand of electric vehicles- The organisation like Volkswagen and
other key competitors have already introduced some electric vehicles in the market. The
current trend of electric vehicle is growing and rapidly increasing the researcher also
suggest that a robust agrees is to be seen in the coming years in the electric vehicle
industry. Therefore the concept of all electric vehicle introduced by Volkswagen has a
huge potential to be successful and enabling the organisation to become the market
leader.
D) Analysing the key competitors.
Volkswagen is an organisation which has its presence in the global market and in the
worldwide automobile sector by making its presence in the market with physical stores and by
effective use of digital technology and tools. There are several large organisations which are the
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key competitors of Volkswagen. The organisation like Volkswagen is a major global company
which has several brand in its portfolio such as Audi and still have a strong position in the
market. The main reason behind strong and competitive position of Volkswagen in the market is
its strong financial position and id-id its brand image. The largest and the key competitors of
Volkswagen are Skoda and Audi (Armstrong and et. al., 2018). These are the most popular
brands that have achieved an excellent position in the worldwide market and highly popular
market in Asian countries. another very tough competitor of Volkswagen is Toyota as the brand
is globally known 18 as a manufacturer of SUVs and electrical vehicles. Now with the changing
environment and environmental conditions the company e focus is over sustainable growth and
the production of electric vehicle that holds a very low impacts on the environment. Therefore
the key competitors of Volkswagen are Toyota Audi and Skoda along with other International
brands which are also concentrating on growth by developing and the use of technologies for or
moving forward in the market and attaining a largest customer base.
E) Summarising the current customer attitudes/behaviours in the market.
Customer behaviour refers to the attitude, attributes and purchasing decisions made by
consumers in a particular market. Consumer behaviour has a very strong influence over the
purchasing power and purchasing decision of an individual. therefore it is very important for
Volkswagen to analyse and understand the consumer behaviour in order to gain knowledge about
the specific strategies which are helpful for them in relation with positioning its products and
entering the potential market in the most potential manners (Pererva, Nagy and Maslak, 2018).
Volkswagen is bringing the concept of all electric vehicles by the end of 2020 and the consumer
behaviour is a very important aspect to understand effective and appropriate positioning and
marketing strategies. The determined consumer behaviour according to the current trends of the
marketplace highlights that the people are moving and focusing on more sustainable goods
which are favourable for the environment and also developed with the updated technologies.
Thus, it can be said that consumer behaviour are in favour of Volkswagen and its idea of
bringing the concept of all electrical vehicles in the near future beginning from see you uniquely
designed and produced with sustainable means electric vehicle range of ID BUZZ, ID.4 and ID
family.
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SEGMENTATION, TARGETING AND POSITIONING (STP)
The segmentation targeting and positioning strategy is one of the most potential and
important principle of marketing. The strategy is developed and divided into three phases which
are highlighted by its name that is segmentation targeting and positioning. The segmenting
targeting and positioning model of marketing helps the marketers to craft their messages on
behalf of company develop them and delivered in tailored format to the segmented and targeted
audiences. In other words the STP strategy help the company to develop effective plans for each
phase and deliver appropriate messages to all the targeted audience.
F) Segmentation.
The first stage of STP model is of segmentation, while marketing the organisation need to
identify their potential consumers and convince them in season of purchase of the particular
product. The segmentation strategy is used for identifying and determining the niche market
which specific needs and desire that can be articulated by the company clearly. The segmentation
strategy is basically of dividing the marketplace into smaller groups according to their features
and characteristics. Along with it segmentation also helps the company to identify and search for
new customers (Swenson and Rhoads, 2019). The segmentation of market can be done by
demographically, psychographic, behavioural and geographical means. The segmentation
marketing strategy used by Volkswagen for marketing their concept of all electric vehicles is
psychographic. This segmentation strategy is a way of classifying the behaviour of individuals
according to their personality and emotional traits which are linked to their purchasing decisions.
The psychographic factors are the attitudes lifestyle hobbies and personality of individuals. This
type of segmentation is used by Volkswagen to understand and identify potential consumer for
its new concept of all electric vehicles.
G) Summarising the profile and persona of the targeted market segment.
The second stage of STP marketing strategy is known as targeting. The targeting strategy
is developed after segmentation is done because it allows the organisation to understand the
profile and persona of the different segments and types of consumers present in the marketplace.
According to the understanding of consumers their behaviour that purchasing decisions and their
attitudes it becomes easy for organisation to target a particular segment according to their needs
and desire and matching them with the offerings of entity. The targeted audience our customers
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of Volkswagen for its all electric vehicle concept are the higher class and elite class people of the
society. Volkswagen is targeted the higher class society because of the potentials they hold for
investing and easily being attracted towards the new technology as their attitudes and personality
highlights their purchasing decisions towards those goods which are are technically updated
uniquely designed and innovative in nature.
H) Including a statement that identifies why the target market should buy the improved product
or service.
The third stage of STP marketing strategy is of positioning. The positioning strategy maps
the variables discussed in the segmenting and targeting stages and defines a particular space
where the offerings of organisation resides related to the competitors in the view of their
consumers. Positioning is one of the critical stage and can bring competitive advantage towards
organisation as it is a component of branding and promoting the good in the most efficient
manners in front of the targeted audience (Chaffey and Ellis-Chadwick, 2019). The positioning
strategy which is used to by Volkswagen will decide their impact on the consumers in relation
with the new idea and offerings of all electric good in the recent coming years. The higher and
elite class people are targeted by Volkswagen which the branding of the product needs a lot of
investment and have to be on the larger scale. Therefore the organisation has started the branding
of its new offerings even before the commencement of production of the new electronic ID
family vehicle. The organisation made its position in the market by introducing their ideas in the
most attractive manner in front of the world with the help of social media by using 3D and 2D
images.
RECOMMENDED MARKETING MIX
I) Marketing Mix
The marketing mix tool is a component of seven elements highlighting 7 tactical areas which
is needed to be explored by organisation in order to effectively enter the market and present its
offerings in the most influential manners. The marketing mix strategy of Volkswagen for its all
electric vehicle concept is as follows:
 Product- The product offering of Volkswagen is very unique and revolutionary as it is
planning to bring the most updated and uniquely designed electric vehicle which are not
present in the market till date. The ID family of Volkswagen will be produced by
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sustainable means as all the factories are being changed into environmental friendly
operations.
 Price- The pricing strategy adopted by Volkswagen is according to the production cost
and therefore it is high because investment in in production and also in the factories of the
company. Along with it the organisation is initially targeting higher and elite class people
of the society which makes it office that the organisation has to undertake higher pricing
strategy in order to attract larger customer base (French and Gordon, 2019).
 Place- The presence of Volkswagen is in worldwide location and in worldwide
automobile markets therefore the distribution of products will be done on the worldwide
basis serving to all the potential consumers.
 Promotion- The promotional tool which is used by organisation for its revolutionary
concept of all electric vehicles is social media as the appropriate designs and plants are
being issued by the company on its official website.
 People- The employees plays a very important role in success of the business and of a
particular product therefore Volkswagen have appointed the experts such as designers
engineers from all over the world along with training and developing expertise in their
existing staff.
 Process- The production processes which are used by Volkswagen earlier are still
continued but for the all electronic vehicle concept and for the ID family the organisation
is changing its factories into eco friendly and environmental friendly operations which is a
very revolutionary change done by any automobile business.
 Physical evidence- The physical evidence of the truthfulness and success of the idea of
changing automobile in all electric vehicle social media and the website of Volkswagen
group where it is present all over the organisation is evolving and moving towards more
technological and environmental friendly approach in the coming years beginning from
the 2020 (yousef Alkhateeb, 2018).
CONCLUSION
The report concludes that market in and its principles are the most essential and important
aspects for business to consider while entering and bring in new products or services in the
market. the marketing strategy needs to be developed by organisation. But before that market
evaluation considering analysis of competitors, consumer behaviour, present opportunities and
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most importantly the trends in the marketplace needs to be performed. According to the market
research the organisation then develop effective marketing strategy with the help of STP and
marketing mix tools that will enable the entity to bring their products and enhance their brand
image in the particular market efficiently and effectively.
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REFRENCES
Books and journals
Armstrong, G. M. and et. al., 2018. Marketing: an introduction. Pearson UK.
Bernyte, S., 2018. Sustainability marketing communications based on consumer values and
principles. Regional Formation and Development Studies. 26(3). pp.26-35.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
French, J. and Gordon, R., 2019. Strategic Social Marketing: For Behaviour and Social Change.
SAGE Publications Limited.
Gilligan, C. and Lowe, R., 2018. Marketing and healthcare organizations. CRC Press.
Migliore, R. H., Howard, N. C. and Gray, D. M., 2018. Contemporary marketing
evolves. Journal of Marketing Development and Competitiveness. 12(2).
Morrison, A. M., 2018. Marketing and managing tourism destinations. Routledge.
Palmatier, R. W. and Crecelius, A. T., 2019. The “first principles” of marketing strategy. AMS
Review. 9(1-2). pp.5-26.
Pererva, P., Nagy, S. and Maslak, M., 2018. Organization of marketing activities on the
intrapreneurship. Mind Journal. (5). pp.1-10.
Sahaf, M. A., 2019. Strategic marketing: making decisions for strategic advantage. PHI
Learning Pvt. Ltd..
Swenson, M. J. and Rhoads, G. K., 2019. Engaging Students in Large Sections of Principles of
Marketing. Business Education Innovation Journal. 11(1).
yousef Alkhateeb, T. T., 2018. Principles of Marketing Theories & Applications.
Online:
Volkswagen electric concept vehicles, 2020. Available Through: < https://www.vw.com/electric-
concepts/section/overview//>
Volkswagen To Go All Electric By 2026. 2019. Available Through: <
https://industryeurope.com/volkswagen-to-go-all-electric-by-2026//>
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