Marketing Fundamentals: Concepts and Processes in Contemporary Approach

This article discusses the marketing mix strategy and target market concept in contemporary marketing approach. It also explores the impact of social environment on Kia motors and recommended strategies to gain competitive advantage. The article suggests that Kia motors should initiate extensive market research activities to understand the changing needs of customers and come up with diversified electric vehicle portfolio to bridge the gap between higher end performance and city usage.

Running head: MARKETING FUNDAMENTALS
Marketing fundamentals
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Question: 1
In contemporary marketing approach, there are number of concepts and processes are
being followed. One of the major concepts in the current time is marketing mix strategy. This
refers to the holistic process of determining the type of product to be offered, price to be
maintained, distribution strategy to be used and promotional strategies to be used (Aghaei et al.,
2014). Thus, with the implementation of the marketing mix strategy, Kia motors will be able to
design their basic elements in accordance to the market trend (Mintz & Currim, 2013). In
addition, this will also help them to design the pricing strategy, distribution and promotional
strategy in accordance to the product offered.
Another important marketing concept being used is determining the target market. Kia
motors are having number of vehicle types and each of them is for different needs of the
customers. In this case, determining the target market will help them to identify the needs and
requirement of a particular customer segment and offering the product accordingly (Zenker &
Beckmann, 2013). Thus, the more effective will be the determination of the target market, the
more effective will be the fulfillment of expectation of the customers. For instance, if the target
market for Kia motors is people with having moderate purchasing power and having the need for
city transportation, then they will be offered a small city car that will be lower in cost and will be
easy to use. Therefore, concept of target market can help Kia motors to have all the attributes of
the customer segment that they are going to market their products.
Question: 2
One of the major marketing environmental forces that can have potential impact on the
business operation of Kia motors is the social environment. Social environment refers to the

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process of change in social trend among the customers such as preference for the particular type
of vehicles (Gupta, 2013). This is more important for Kia motors due to the reason that social
trend in the automobile sector is rapidly changing towards the electric mobility over the
conventional gasoline powered vehicles. Thus, it is becoming more important to change their
product offerings towards more electric mobility and catering to the change in the social trend.
The major impact of the change in the social environment on Kia motors is influencing the
change in the product offerings (Sierzchula et al., 2014). Another major impact will be
origination of new customer segment for Kia motors. This is due to the reason that with the
change towards electric mobility, Kia motors will not be able to target their existing products to
the new set of customers.
Social environmental factor can be considered as macro factor due to the reason that
change in the social environment cannot be controlled by Kia motors. In addition, change in the
social environment will have equal impact on the entire automobile industry rather than just
having impact only on Kia motors. Thus, all these factors denote that social environment is a
macro or external factor for Kia motors.
Question: 3
In response to the change in the social environment for Kia motors, it is recommended
that they should initiate extensive process of market research activities in order to have the clear
and fair understanding about what the customers really wants and expects (Rezvani, Jansson &
Bodin, 2015). In accordance to the market research, Kia motors should come up with new
electric mobility solutions to meet the change changing need of the customers. However, it
should also be noted that only offering electric vehicles will not help Kia motors to gain

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competitive advantages due to the fact that there are number other rivals in the industry who are
offering similar vehicles.
Thus, in order to gain competitive advantage, it is recommended that Kia motors should
come up with more diversified electric vehicle portfolio catering to different requirement and
different set of customers. This is due to the reason that existing electric vehicles in the market
are either offering higher end performance with having exorbitant price, or offering city usage
but with lower range and performance. Thus, Kia motors should bridge the gap between these
two poles and offer the customers with vehicles that will be both moderately priced and will
offer good range and performance to the customers (Al-Alawi & Bradley, 2013). This strategy
will also enable Kia motors to have distinctive product offering in the market that will further
help them to gain competitive advantages. This strategy will also enable them to effectively meet
the demand and requirement of the target customers and Kia motors can be properly adhere to
the change in the social environment.

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Reference
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