Marketing Fundamentals Solved Assignment

Marketing
Fundamentals

EXECUTIVE SUMMARY
Marketing is the main department which communicate with society related to products
and services. As these days there is competition, so it is essential to produce new and innovative
ways of marketing. This attracts consumer to purchase product as ounces. This report is based in
TESLA and Mercedes Benz which are auto mobile company. Manifesting managers of these
organisation use different technique to market products. There is discussion about different
factors which affects consumer behaviour, marketing concept, marketing mix strategies and at
last PESTLE analysis. These are the some ways through which organisation can market products
and compete in industry.

CONTENTS
EXECUTIVE SUMMARY.............................................................................................................1
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 2............................................................................................................................................3
Factors which influence buyer behaviour and their implication for marketing segmentation
strategies......................................................................................................................................3
TASK 3............................................................................................................................................5
Marketing mix.............................................................................................................................5
Marketing concept.......................................................................................................................7
TASK 4............................................................................................................................................7
PESTLE analysis.........................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing means actions or business activities for promotion and selling products or
services, including market research and advertising. This is the way to communicate with
external parties of organisation in order to advertise product and services. There is use of
different techniques such as advertisement, social media, etc. through which marketing of
product and can be possible. These days role of marketing is relevant and effective for enhancing
profit and revenue (Macharia, Collins and Sun, 2013). With the help of marketing, it is easy to
analyse market and take actions which are relevant and effective for attaining good brand image.
There is specific department for marketing function which deals with changes taking place in
external environment by analysing it. This report is based on TESLA is an American automotive
and energy company. This organisation is famous for electric car and solar panel manufacturing.
This report covers factors which affects buyer's behaviour, marketing and marketing concept,
PESTLE analysis.
TASK 2
Factors which influence buyer behaviour and their implication for marketing segmentation
strategies
Consumers are the people who wants to purchase product and service. They are
impressed and educated about product and services with the help of marketing aspects. There are
some changes which has to be made in order to deal with external factors. Consumer behaviour
are the decisions and actions which affects purchasing behaviour of consumer. This is the factor
which not only understands past information but also insist on future concepts (Tingchi Liu and
et. al., 2013). TESLA is the organisation which deals in auto-mobile sector, so consumer's
demand has to be analysed in order to maintain good brand image. Investing in care is huge
investment, so consumer analyse every aspect and then invest in it. Hence there are some factors
which affects buyer behaviour such as quality, pricing strategy, etc. As marketing manager at
TESLA, some factors are identified which affects consumer buying behaviour-
Marketing champaign- Marketing activities is one of the most affecting behaviour for
consumer. There are different marketing activities planned and organised by marketing manager
of TESLA such as social media advertising, television advertisement, etc. which helps to convey
information related to product and services. There is competition in auto-mobile sector hence
marketing must be with best approaches. While adverting television, it must be at the time when

targeted people watch TV. Hoarding must be at the place where more and more people pass
through. For instance while adverting on social media, there must be advertisement which
provides familiar feeling with brand. This creates attachment with brand and influence consumer
to buy or not to buy products. Marketing strategies affects buying nature of employees and
makes other brand effective over other. When marketing are done on regular basis, then this
helps to remind society about brand (Koivupuro and et. al., 2012). This creates brand awareness.
This is fruitful when individual wants to but car.
Economic condition- Economic condition of consumer is second foremost factor which
influence consumer to buy product. Economic factor includes occupation, income level, family
income, income expectation, savings, etc. Arte considered. TESLA deals in luxurious segment of
cars. They have full sized and mid sized electric cars. Hence consumer think twice before
purchasing expensive cars because high instalments, maintenance cost, etc. are associated with it.
So if income of consumer is low, then they do not prefer to purchase high income car.
Personal preference- There are some personal factors such as age, attitude, belief,
culture, etc. which influence individual to buy product and services. There is difference in likes,
dislikes, priorities, fashion, etc. of employees so this affects nature related to purchasing car.
Personal experience related to car may also affects buyer's behaviour (Xiao and Nicholson,
2013). For instance while test drive of TESLA or someone's car, consumer does not feel good
related to interior of car, so they do not prefer to purchase this brand. In this case, individual may
gets negative view related to cars and hence they may share these views with others also.
Group influence- Consumer interacts with some people and purchasing car is big
decision, so they interact with other people in respect to purchase car. In group family members,
friends, relatives, peer members, neighbour are considered. Hence they may give positive or
negative reviews related to product of TESLA. In case positive reviews are gained, then
consumer may think to purchase care of TESLA brand. While if negative impact is analysed then
this consumer may change their mindset.
Purchasing power- There is essential role of purchasing power which influence
behaviour of consumer. If individual is able to buy and maintain car then this factor is crucial for
making decision. This is relevant and effective factor which influence sales a lot. If income is
high then consumer has good purchasing power, while at the same time if income is not good,
then consumer do not prefer to purchase frequently.

From the above discussion it is clear that there are some factors which affects consumer
behaviour in negative and positive manner. It is essential to make changes in marketing
strategies, so consumer satisfaction can be achieved. Market segmentation includes actions of
dividing consumer base or business market in different groups on the basis of various grounds
(Onwezen and et. al., 2012). There is influence of these factors in segmentation of strategies of
TESLA. There are mainly four kinds of segmentation. They are discussed as under-
Geographical segmentation- This is the segmentation in which consumers are divided on
the basis of different regions. As per this measure, there is difference in demand of consumers
because the reside in different regions. For instance: people residing in traffic areas of UK has
more requirement of electric cars as compared to less crowdy places. Hence there must be more
advertisement campaign, so it attracts more consumers.
Demographical segmentation- In demographic segmentation, age, gender, race,
occupation, nationality, family size, etc. are considered under this component. These factors has
to be considered by managers of TESLA. For instance: if income level is good, then consumer
prefer to purchase branded cars. Family size of consumer is small, then they prefer to buy small
sized car. Hence demographical factor affects consumer behaviour (Visschers and et. al., 2013).
Behavourial segmentation- As per this segmentation, customers are divided on the basis
of their behaviour. There is difference in behaviour of consumer on the basis of preferences,
decision making ability, etc. While using car there is difference in purpose behind its use. For
instance: customer want to use car for small distance, then they prefer small sized car. Hence
behaviour factor is also responsible for affecting consumer behaviour. Under this segmentation,
consumers are considered as brand neutral, brand loyal, etc.
Psychographic Segmentation- This difference is similar as behavioural segmentation. As
per this culture, consumer is bifurcated on the basis of personality, lifestyle, attitude, etc. buyer
behaviour gets affected due to personality and attitude. If personality of consumer suits more for
sports car, then they do not prefer to use electric cars of TESLA. Personality and life style are
two main components which affects consumer buying behaviour.
TASK 3
Marketing mix
Mercedes Benz is the company which deals in automobile sector. This brand has good
name in luxurious cars. It has head quart in Germany. While working at international branch,
there is use of different marketing strategies which helps to educate people related to product and
services (Menegaki, 2012). Marketing mix is the plan which is used by Mercedes Benz which
helps to implement marketing policies in best manner. Top level managers of Mercedes Benz are
launching new model of car i.e. AMG 63 S Coupe in market during London 2017 Car Show,
hence marketing mix plan is conducted for it.

Product- Mercedes Benz is the organisation which deals in luxurious class of cars, buses,
coaches, truck. This brand is famous at international level. This organisation launches cars in
different series such as S- class, E- class, C- class, etc. AMG 63 S Coupe offered by Mercedes
Benz is S class model. This is car which has good interior with power 3 gear engine. This car is
beneficial for off road riding as well. This is the car which aims for middle income people (Tapp
and Spotswood, 2013).
Price- Pricing strategy of Mercedes Benz is for creamy layered people of society. This is
the organisation which aims at high class people f society. Hence process of. AMG 63 S Coupe
is also aims at it. They have penetration pricing strategy for cars.
Place- This organisation deals in different parts of country, such as UK, Germany, China,
India, Asian countries, etc. Hence this brand is well known in different countries and brand
loyalty is more.
Promotion- Promotional events of Mercedes Benz are less because they target few
segmenet of society i.e. high class people. But as there is much competition in automobile sector,
so managers of Mercedes Benz must market AMG 63 S Coupe with online advertisement, social
media, television advertisement, print media,, etc. With help of these factors, people are aware
about facts and features of this car and it is easy to launch and introduce to society (Sinapuelas,
Wang and Bohlmann, 2015).
People-Mercedes Benz is the organisation which deals in all over the world. They have
franchisee in different parts of organisation, so through this they can contact to consumers. This
brand targets at upper class of society, so they have fewer outlets in geographical region. As
managers’ of Mercedes Benz is thinking to launch AMG 63 S Coupe at Car show, then it is best
to contact large population. Mercedes Benz has dealer in different regions.
Process- Mercedes Benz does not famous for quality and uniqueness of auto- mobile but
they have proper process through they can provide after sales. They keep proper record related to
customers and up-date them related to services. This is one of the important aspect which
provides satisfaction to consumer. They have quick serving system of car which saves time and
cost of consumer.
Physical evidence- Last factor of marketing mix is physical evidence,. As per this factor,
there are some aspects which provides knowledge about brand of Mercedes Benz. Logo, tag line,
free gifts, etc. are part of physical evidence.

Marketing concept
Marketing concept is an strategy through which organisation can analyse need of
consumer and then take actions to satisfy it. This helps to compete with other firms. There are
some changes which have to be made in order deal with external changes and satisfy consumer
demand (Homburg, Jozić and Kuehnl, 2017). Marketing concept is used by managers of
Mercedes Benz which is relevant and effective for attaining good sales and create customer base.
There are following marketing concept which is followed by managers of Mercedes Benz-
Production concept- According to this concept, what is produced by organisation ad is it
producing in abundant quantity. Mercedes Benz use of different methods to produce product i.e.
car, bus, trucks, etc. This is the main aspect which helps to provide satisfaction to consumers. If
production of cars in not in enough, then waiting time of consumers is more, so it is essential to
produce product and services with minimum time. This helps to provide satisfaction and
consumer prefer to avail services from Mercedes Benz.
Selling concept- According to selling concept that organisation is able to sell product of
not and they are able to produce in abundant quality or not. Selling is one of the important aspect
which deals with changes taking place in society. Profits and revenue are directing related with
sales, so sales can be conducted with analysis of targeted consumer. Selling of car is easy and
convenient when delivery of car is on time and waiting time is less.
Marketing concept- Marketing is one of the important aspects which has to be
considered by managers of Mercedes Benz because there is competition in automobile sector and
innovation are taking place frequently, so it must be conveyed (Kafashpoor, Mortazavi and
Hasani, 2012). According to marketing concept, mangers of Mercedes Benz must focus on
demand of consumer, are they able to satisfy it, what more can be done through which consumer
satisfaction can be achieved. There are many approaches through which marketing of product is
possible. Apart from this there is use of marketing aspects for taking feedback related to product
and services. Feedback through social media, telephonic interview, etc. are part of taking
feedback which provides consumer familiar feeling with brand. This builds a scope of
improvement and compete with other organisation.
TASK 4
PESTLE analysis
Business operates in society, so there are many changes which are taking place in
external environment. It is responsibility of managers to analyse external factor, so they
can work accordingly. In auto- mobile sector, changes are taking place very frequently,
so in order to del with them, PESTLE analysis is done. For instance: changes in legal

values are not in control of managers, so manager has to later their plans and policies.
This helps to keep them competent to external market. Managers of Mercedes Benz
found new growth opportunity in Asia, so they are thinking to expand business there
(Srdjevic, Bajcetic and Srdjevic, 2012). With the help of PESTLE analysis, external
factors of environment are analysing.
Political- In political factor, government policies, foreign trade policies are covered.
Political policies are one of the important aspects which has to be covered by managers of
Mercedes Benz. There is political stability in Asia, so it is easy to perform business operations
because there are less possibility of frequent changes in political factors. When there is less
change, then consistency can be achieved in business operations. These assist managers of
Mercedes Benz in specific manner and reduce possibilities of government interference.
Economical- Economic factor talks about changes which are taking place in economic
sector such as interest rate, GDP, inflation rate, etc. These are the common factors which affects
growth of business. In Asia, economic growth is good. This isb the best place where Mercedes
Benz can expand their business. Because people have good purchasing power. There are
different economic policies by government, so managers of Mercedes Benz can expand their
business. Hence according to economic factor also Mercedes Benz can expand business in Asia.
Social- Social factor includes belief, values, cultures, attitude, and preferences of
consumer people residing in society (Sridhar and et. al., 2016). In auto mobile sector all these
factors are crucial because Mercedes Benz deals in high rate cars. Asia is densely populated, they
have high per capiat income. Majority of consumer are residing in rural areas and there is
difference in social class of consumers. In order to expand business in Asia managers has to
come with off road cars ore. This suitable for cultural and social background of country.
Technological- Technological changes includes up-gradations in techniques such as use
of internet, use of digital technology, etc. In auto- mobile sector, this is one of the best and
crucial component whiuch has to be considered by manager. In cars, many technical changes are
taking place such as engine up-gradations, audio style, Blue tooth, etc. In Asia, these change are
welcomed and frequently. So in order to expand business at Asia, it is easy to upgrade
technology because people are techno friendly. In Asia, roads are interrelated, hence there are
requirement of fast, easy, convenient transport facilities. Asia is famous for tourism business
also, there is more demand for car and transport facilities. This is fruitful for Mercedes Benz.
Legal- Legal factor includes laws, regulations related to business. In Asia there are
proper laws which aims at creating equality in industry. This is relevant and effective for

Mercedes Benz because this insists them to work in ethical and appropriate manner. in case of
any discrepancy, legal actions are taken against brand Mercedes Benz. For instance: if there is
change in working hours of employees, then managers has to alter their policies of working. This
accretes loyalty and trust in mind of stakeholders.
Environment- In environmental changes, alteration in climatic changes are considered. In
Asia, climatic is not stable which might be not suitable for working. There are different natural
vegetation which assist in perfuming business. Managers can think to use renewable sources of
energy. This is relevant for creating satisfaction among stakeholders and conserve nature. Use of
solar heater is best example of environmental protection.
From the above discussion it is clear that Asia is the country which is relevant for growth
of business of Mercedes Benz. This can be more effective and relevant with some alterations in
working style. Such as use of e- techniques. To conserve nature, Mercedes Benz can launch
electronic cars.
CONCLUSION
From the above discussion it is clear that these days role of marketing is increasing. This
is the department which provides knowledge about features of product and services to society.
This factor assist in improving sales. Economic factor, purchasing power, etc. are some
components which affects customer behaviour in auto-mobile sector. While marketing product
and services, segmentation on the basis of geographical, demographical, behavioural and
psychological must be considered because it affects consumer behaviour. Marketing can be
understood with concept of marketing mix because this provides knowledge about organisational
strategies for marketing product, price, etc. Marketing concept covers five concept such as
marketing, selling, production, etc. which improves working style of auto- mobile organisation.
At last PESTLE analysis is done to understand global market environment because this affects
sales and revenue of company directly.

REFERENCES
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Online
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