This report explains the key roles and responsibilities of the marketing function for Volvo Group, and how they relate to the wider organizational context. It also compares the ways in which Volvo applies the marketing mix to achieve business objectives, and how it differs from other organizations.
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Marketing Essentials (Unit 2)
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1. Explain the key roles and responsibilities of the marketing function for the chosen organisation.................................................................................................................................3 P2. Explain how roles and responsibilities of marketing relate to the wider organisational context for the chosen organisation or scenario..........................................................................6 TASK 2............................................................................................................................................9 P3. Compare the ways in which the chosen organisation applies the marketing mix to the marketing planning process to achieve business objectives. How does it differ from other organisations or could do better compared to other organisations (with examples).................9 TASK 4..........................................................................................................................................12 P4. Produce and evaluate a basic marketing plan for the chosen organisation........................12 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION Marketingisdefinedasthesetofactionsperformedbyabusinessinorderto communicate and deliver the product or services as per the need and want of consumer. The main aim of marketing is to improve the relationship between customers and brand by regularly flowing the information which consumers require to form up their purchasing decision or remaining connected with the brand (Baker and Magnini, 2016). The current report is based on Volvo Group which is a larger multinational manufacturing company of automotive and its parts. Itscoreactivitiesinvolvesmanufacturing,distributionandsalesofbuses,trucks,cars, construction equipments and it also supplies marine, industrial drive system and financial services. This report involves a detail explanation ofrole and responsibilities of marketing function performed within an organisation and its interrelationship with other functional unit present within the organisation. Further it involve a differentiation between the marketing strategies of Volvo and Toyota on the basis of marketing mix. At the end it involve the marketing plan of Volvo. TASK 1 P1. Explainthekeyrolesandresponsibilitiesofthemarketingfunctionforthechosen organisation Marketing is defined as the set of activities performed by a business in order to promote, distribute and sell the good and services to its target customers in order to fulfil their demand and expectation (Campbell, Martin and Fabos, 2018). The marketing practices is mainly perform for delivering right product to right customers which mainly started from introducing the product or services to the consumers and pursued to purchase them. The aim of marketing can be better understand from the step by step process of marketing that consists of four steps such as, Evaluate about several opportunities present in market that includes assessment of need and want of target consumers. After analysing the market, next phase is to perform marketing mix for formulating strategies which help in promoting and offering the products effectively to approach the customers. Once the targeted market is decided the next step is to develop marketing mix strategy which help in promoting and offering the product as per the requirement of customers.
The final step involve the actual execution of plan which is formulated in order to promote and approach the customers. Marketing plays a significant role in attracting the customers to purchase product or services of an organisation. It involves a range of functions that help in making people identify the product or services that suits their requirement (Cavusgil and et. al., 2014). Volvo is a large multinational organisation that operates throughout several different countries and offer range of models, but in to ensure that customers get their choice of vehicle it perform range of marketing practices. So that the target market get information regarding variation among the models available for the customers.Following are certain roles and responsibilities that marketing manager must consider while performing marketing practices, Roles:- Financing:-It is defined as the process of managing and making fund available for performing the business operations effectively without any sort of delays. The main role of marketing manager is to maintain communication with the finance department for ensuring that fund remains available to them for performing marketing related activities. This support marketing manager of Volvo in determining the estimated amount they have for performing each activity so that the marketing practices will get performed smoothly. Pricing :-It is defined as the monetary value which a customers pay on exchange of purchasing a particular product or services. Under this function the main role of a marketing department is to set the price of product in ethical manner which cover up all the production and distribution cost and remain affordable to consumers (Clow and James, 2013). The role of marketing manager of Volvo is to place appropriate price of its model as per the quality, safety and technology i.e. in a manner which worth its features or benefits offered to consumers.Promotion:-It define as set of practices performed to make customers aware about the products or services and attracting them to influence them for making purchases. The main of promotional activities is to have communication with target market about the product or clearing out doubts they have. The role of marketing department is to ensure provide real information to the customers without any kind of manipulation. The role of
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marketing manager of Volvo is to mention about all the features that it is using in manufacturing of car so that nothing remain hidden from consumers.Product and service management:-It is a process of decision making where a company make up a decision regarding what to sell, how to sell, where and whom to sell. Under this the main role of a marketing is to create, manage and improve the marketing mix strategiesforexploitingtheopportunitiespresentinmarket.Withthehelp0of appropriate product and service management, the marketing manager would be able to align the products as per the demand of customers(Hair Jr and et. al., 2015). The role of marketing manager of Volvo is to ensure effective product or service management where it become able to differentiate its vehicle models from that of other competitors present in market by regularly evaluating the demand of consumers and placing its models in market accordingly.Distribution:-It is a process through which product or services get deliver to the end consumers. Under this the main role of marketing department is to make sure that the product or services get available to the customers in right manner. The marketing manager of Volvo has to perform a role of checking that all the documentations regarding purchasing of vehicle remain appropriate or verified on timely manner so that vehicles can be delivered to the purchaser with all the legal formalities to maintain its reputations. Selling:-The marketing and selling practices consider to be complementary services to one another as marketing support sales representatives to sell more unit as customers are already being educated with the promotional practices performed by marketing manager. On the other side the outcome of sales department support in determining the actual performance of marketing department(Huang and Sarigöllü, 2014). Her the main role of marketing department is to ensure that the customer are being educated effectively about the products through marketing so that the can make right decision and get satisfied with the services. The role performed by Volvo's marketing manager is to remain focused toward ensuring that its showrooms have adequate availability of models to display in front of customers to make them choose vehicle of their choice. Responsibilities:-
Formulating strategy:-The key responsibility of marketing department is to formulate effective strategies in order to perform actions in a manner that get aligned with the main organisational objective(Joshi, 2012). The responsibility of marketing manager of Volvo is to formulate effective strategies related with its marketing practices in order to ensure that each actions get conducted as per the provided guidelines that help in achieving the desired level of performance. Market research:-Another major responsibility of marketing department is to perform market research for determining the demand of consumers or changes that get anticipated within the business environment in order to keep company safe from threat and provide chancestoexploitopportunitiesavailable.ThemarketingmanagerofVolvois responsible to firstly ensure that proper marketing research get performed so that right product get placed in marketing without any kind of loss to company and dissatisfaction to the customers. P2. Explain how roles and responsibilities of marketing relate to the wider organisational context for the chosen organisation or scenario Marketingisdeterminedastheeffectivewaythroughwhichcompanydevelops awareness of its products and services among customers as well as other people in order to enhance their sales performance (opolšek and Čurin, 2012). In addition to this, it also helps businesses in enhancing their profitability in effective manner. Marketing activities basically includes selling, advertisement, delivering effective products to its end user with the motive if satisfying them at higher level.
(Source:KeyBusinessFunctions, 2018) From specified graph, it can be said that all functional area of the company are interrelated with one another. While, it is talked about marketing function, it can be said that marketingdepartmentofeveryorganisationishavingtheirrelationswithotherother organisational function (Pappas, 2017). It can also be said that every department requires support of one another so that they can easily execute their work and accomplish their work in rapid manner. By getting support of one another businesses can easily accomplish their organisational objectives and attain success in rapid manner. With reference to Volvo, interrelationship of its marketing department with other organisational functions are specified as below in detailed manner:Marketing and Human resource department:-Human resource department of Volvo is mainly responsible of recruiting candidate for the company so that they can easily accomplish their goals and objectives in rapid manner. This department is directly related to marketing department as it is providing skilled workforce to the marketing manager who further performs the work of promoting services of this company among its potential Illustration1: Key Business Functions
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customers in rapid manner. Here, HR department initially communicates to the marketing head about what kind of employees they want in their team who could work according to the core the requirement (Rancati, Gordini and Capatina, 2016). It can be said that the positive relationship of HR department with marketing team helps them in accomplishing their respected goals and objectives in quicker manner which ultimately leads to the success of company.Marketing and Finance department:-Finance department in every organisation handles all sort of financial activities at workplace that is responsible for developing budgets, allocating finances, develops financial plans, monitor and control uses of financial usage. This department shares highly influential role in the growth of business association which supports them in handling all financial situations in rapid manner. In addition to this, it can be further said that finance department of Volvo is related to marketing department. Here, finance department provides adequate amount of money to finance department which helps them out in promoting their products and services among customers. Also, adequate amount of financial resources helps marketing team and deciding rightful promotional activities that effectively provides them support in enhancing awareness of products and services among its potential customers. This simply provides support to marketing department in accomplishing their respected goals and objectives in rapid manner. Marketing and Research & Development department:-R&D department of every company emphasises on gathering information about the current market trends, changing needs and requirements of customers and other things which helps them out in modifying their actual products and services according to the core requirement of changing market situations. R&D department of Volvo conducts market research at constant basis and gathers information on the current market situation and latest trends that could attract customers towards them in effective manner (Rossi, Allenby and McCulloch, 2012). This departmentdirectlyprovidesinformationto marketingdepartmentaboutthelatest marketing which ultimately helps them out in promoting their products and services among its customers in appropriate manner that contributes in the enhancement of organisations sales performance which maximises their probability in the rapid manner.
On the basis of above specified information associated with the interrelationship among different department of Volvo, it can be said that department are sharing strong relationship with one another as their work is interdependent on one another. The overall motive of all these departments is to accomplish their personal goals and objectives in timely manner with the preliminary motive of attaining organisational goals and objectives in the same manner for accomplishingsuccess.Alongwiththis,positiverelationshipofthesedepartmentshelps company in improving their business performance by serving its customers in more appropriate manner. This also leads to the attainment of competitive edge at marketplace. TASK 2 P3. Compare the ways in which the chosen organisation applies the marketing mix to the marketing planning process to achieve business objectives. How does it differ from other organisations or could do better compared to other organisations (with examples). Marketing mix is defined as the set of actions, strategies or tactics which a company uses for promoting its brand as well as product to market for smooth functioning of business. This support in formulating effective strategies for offering the product or services effectively to its targetted customers(Kladou and et. al., 2016). Every organisation uses marketing mix for performing effectively within the market place and to achieve success but the method of implication of each business is different as the strategies is mainly formulated as per products it offer or pre specified objectives of it.
Illustration2: The Marketing Mix, 2018 Source: The Marketing Mix, 2018 According to above mentioned image, it can be stated that the seven components of marketing mix form up most appropriate strategy for market exposure of a product or services. These components areproduct, price, place, promotion, process, people and physical evidence. The Volvo develop its marketing mix in such as manner that it can differentiate it from other competitors in order to become main choice of consumer. This difference can be better understood through following table: ComponentsVolvoToyota ProductVolvoisoneamongthelarger Automobile company based in Europe butoperatesthroughoutworld including a well managed market in UK. The Volvo group products are spread into six business areas such as Trucks,Buses,Construction Equipment,GovernmentalSales, VolvoPentaandVolvoFinancial Services. In addition to this it is also known for manufacturing reputed car intermofclassicstyleandsafety Toyotamakebeautifuldesigns,fuel efficient, comfortable and safe product which help in providing the services for meetingthemobilityneed.The company’s product mix offer products suchasengines,marineproducts, accessories and spare parts, Toyota auto- mobiles,Lexusautomobiles,and Welcab series.
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standards. PriceAstheVolvodealsinrangeof segments it employ its pricing strategy as per the segmentation(Lane, 2015). But it mainly follows the competitive pricingstrategyAstheinformation regardingthecompetitorspricingis easilyavailableandcustomeralso judgetheproductonpricingbases after features. Toyota set its pricing strategy on the basis of competition as Volvo maintains in order to remain competitive within the marketplaceasthecompetitionis relatively higher. But majority of time it offer its model on higher rate as compare toitscompetitorasitoffermore features. PlaceThe Volvo sell its products through two marketing channels, where one is onlinechannelusingitsofficial websiteandotheroneisthrough wholesalers who then sell to different retailers.Additionallyitmaintains around 2300 local dealers throughout the world. Toyotafollowsanomnichannel distributionsystemwhereitfocuses toward integrating the online and offline stores for allowing its customers to get more easy access to services. Despite of thisitalsoperformpartnershipwith number of delivery service providers for ensuring timely delivery of products. PromotionVolvo make use of multi channels in order to promote its models. In this it make use of traditional media such as newspaper, magazine,televisionand radio for promoting the products as it is beneficial in reaching larger number of people. Additionally it make use of social media platform which is cheap and at the same time beneficial for increasing the usage of internet. Toyota spend much on promotion and marketingpracticesusingboth traditionalanddigitalchannelswhich includes TV, newspapers, social media sites etc. Other than this it also perform mediapublicityandpublicrelations (Malhotra, 2015). ProcessVolvomakeuseofasystemfor ensuring that the products always satay Toyota maintain online delivery process wheretheyreceiveorderattheir
available to retail stores. As through this system, retailers can notified when theinventorylevelislow,sothat productsremainavailablewhen customer demand for it. computersystemsandbasedonthis requ9iremnet o9f customers the relevant productsarethendeliveredtothe deliveryserviceproviderfromthe inventory. PeopleItmaintainahighskilledand competentworkforceinseveral segments(Lovelock,2011).This includes,saleteamwhichisbeing trainedinpersuasivetechniques, interactionwithcustomersetc., customer services team remain active for help for resolving issues, suppliers fro timely availability of raw material, retailers for making vehicle available to customers at their nearest. Toyotamainlyfocusestowardskilled and experienced staff in order to place themfordealingwithcustomersand helping in resolving the queries they are having about the products or services so thatbestpossiblesatisfactioncanbe provided. Physical evidence Volvo sell its model in different colour ordesignswhicharedisplayedin differentsectionsoftheretailer showroom where customers can move through them all and choose as per their choice. Toyota maintain its online website more effectivelywhereitdisplaymost demanding product on home page of its websiteandthencategoriesallthe modelsaspertheirfeaturessothat visitors easily get an idea regarding the options available for them which fit into their requirement. TASK 4 P4. Produce and evaluate a basic marketing plan for the chosen organisation. Marketing plan is determined as the overall base document for the marketing which pro9vides effective guidance to marketing manager about all activities of marketing activities which is going to be performed by them in theupcoming year. This basically includes several action plans, strategies and resources which supports company in accomplishing their overall
organisational objectives in quicker manner (Scarborough,2016). With reference to the Volvo, the respected company is planning to introduce electric cars for its customers that will serve them in adequate manner. In this regard, marketing managers has developed effective marketing plan which includes few of the main steps that are specified as below in detailed manner. Company overview:-Volvo is large scale multinational automotive company which is highly involved in the activities of production, distribution and sales of automotive products like trucks, buses and others. The respected company is determined as the second largest manufacturer of heavy duty truck. Volvo operates its business across the world but presently it is emphasising on introducing electric car in UK in order to serve its customers in better manner. Vision & mission:-The vision statement of Volvo is “To become most desired and successful transport solution provider worldwide”. It mission statement “To develop transportation services according to the requirements of its customers”. Objective:-The main objective of Volvo is to enhance its services portfolio and provide customers better experience with the electric cars. For performing this it in more appropriate manner, its management team is required to develop SMART objectives for attaining success ion quicker manner. The main objective of this company is to grab 25% of market share within UK by 2021. STP approach:-This is aneffective approach that is consist of three factors which provides an overview to the marketing manager about the respected strategies that must be adopted by them while introducing new product at marketplace. All three section of this are stated as below: Segmentation:-In this, the proposed manager of this company has planned to adopt demographic form of segmentation for introducing electric cars at marketplace. Targeting:-In this, high class people has been specifically selected by the managers in demographic section. The main reason behind choosing this section is that services offered by this company are quite expensive that can be only afforded by high class people and provide higher benefit to the company (Smith, 2014). Positioning:-It involves the process of placing the pr9oduct in mind of customers by differentiating it either on the basis of feature or benefit. The Volvo group will position its electric car as per eco-friendly vehicle that help in reducing the pollution.
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SWOT Analysis:-SWOT analysis is determined as the effective framework which helps company in determining organisational strength as well as weaknesses. Also, it supports company in finding out proposed threats as well as opportunities for the company. This knowledge provides support to the company in gaining competitive edge. SWOT analysis of VOLVO is stated as below: StrengthWeakness Itoweshigherbrandrecognition across the worldwide. Strong brand loyalty helps Volvo in retainingitscustomerstowardsthe company for longer period of time. VOLVO makes use of latest technology thathelpsthiscompanyinserving customers in more adequate manner. Pastnegativeadvertisement experiences has affected its image at marketplacewhichhavealso influenced its sales performance. Declininginprofitmargindirectly placesnegativeinfluenceoverthe shareholders confidence. OpportunitiesThreat Company can gain higher benefits by entering into other associated fields too withtheusageofdiversification strategy. Volvo could also gain opportunity by developing strong outlook for its global truckmarketthatwillcontributein creating their demand at marketplace. Stringentenvironmentalregulations varies from country to country which could make it difficult for operators to comply with the same worldwide. Increasingcompetitionwithinthe industry is becoming major threat for this company as its customerscould move towards the rivalry. Budget:-Budget is considered as the overall estimation of whole project in terms of financial values (Zolkifly and Baharom, 2016). With reference to Volvo, its marketing managers has developed overall budget for the proposed marketing activities which is specified below in the tabular form.
Marketing budget Particulars1st year2nd year3rd year4th year5th year Initial money55009000120001450018350 Investment1200013500255003200013500 Total600022500375004650031850 Marketing outlay Promotion70003100430034003150 Sales publicity32002200330021002100 Direct selling32002500600030004750 Total1290078001360085009800 On the basis of above mentioned budget, it can be said that financial details for marketing activities different varies from activity to activity. This plan is developed for total 5 years. Here, in the initial time the company has invested with £12000 whereas, the marketing head has decided to invest 13500 in the fifth year. CONCLUSION Throughout this report it can be summarised that marketing plays a significant role within the growth as well as success of an organisation as it help in keeping the product or services of a business perform well in marketplace. It ensure that right message get delivered to the consumers on timely manner in order to pursued them to make purchases for the same. But the practices involve in marketing can not be performed at individual manner as its execution can be effective only when the other department coordinate with marketing practices. Apart from this the marketing plan of a business also support a lot in directing the actions to be taken toward the [pre decided visions and objectives. Additionally marketing mix also support in performing well within the marketplace by deciding the tactics through which performance of a product can be maintained.
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