Marketing Activities of Ford: A Critical Analysis and Strategic Recommendations
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This report analyzes the marketing activities of Ford, including the current marketing focus, strategy, and communication mix. It provides a critical analysis of consumer behavior and offers strategic recommendations for improvement.
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Executive summary The marketing is all about the actions of endorsing and selling products or services comprising market research and advertising. Such activities are undertaken by the company for buying and selling of the products and services. This report comprises the marketing activities of Ford. Ford is an American multinational brand promoting automobile services. This report includes the product overview of Ford. The critical analysis has been given on the current marketing focus, current marketing strategy and marketing communication mix. Finally, the strategic recommendations have been given to the board of directors for the further improvements. Finally it can be concluded that the Ford can enhance its operations by understanding the consumer behaviour in the better way.
Product overview The reasons have been evaluated from the previous assessment that why people like to buy a used car than buying the new ones. The people buying used cars face advantages along with some disadvantages. This report defines consumer behaviour concepts and marketing psychology concerning Ford. Ford is an American automaker company and has gained expertise in selling automobiles and commercial vehicles. The leading models of the Ford are EcoSport, Endeavour, Mustang, Figo, Aspire, and Freestyle. The consumer behaviour is the series of behaviours which consumers follow before acquiring products. Some customers purchase products of the company on a regular basis while others buy only one and disappear. Ford feels that the trends in consumer behaviour are shifting. Ford as a part of being futurist considers the possible pictures of the future scenarios. The company has been working on autonomous vehicles for years. The really big obstacle faced by Ford is consumer behaviour. The stakeholders have been also a big obstacle for Ford. The company is committed to the want and value of its customers. Ford makes every possible effort to suit the need of every customer. As per the report of the company, West is not ready for the self-driving cars. The research was made by Ford in eight countries concerning the self-driving cars. It was found that 84% of customers in India and 78% of customers in China confronted that they would love to drive self-driving cars. In the US only 40% of people agreed to they are ready for the self-driving cars and a lower number was found in the UK. In order to identify the consumer behaviour, Ford analyses reactions of the buyers which has an power on the Ford’s achievement. The marketing mix is created in order to satisfy customers. It also helps Ford to predict the way customers will counter to the marketing strategies. Critical analysis The consumer behaviour is given great importance by the Ford and their needs and wants are undertaken for producing products. The customers are always viewed by the company to look for product development opportunities. The factors are also evaluated which results in acquiring products. The consumer behaviour is the aggregate of the responses made by the customers. Ford finds out the buying role of the customers and analyses the decision-making process. The company even makes efforts to identify the growing market segments for the customers. It is also analysed which product design and the feature are accepted by the
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customers. There are six stages of consumer behaviour which are identified by the Ford in the buying process: Problem recognition: The problem recognition leads to the awareness of the need. It is the variance between the anticipated state and the actual disorder. The need for travelling identifies the need for a car. Once the need for a car is identified, the customers proceed with the decision of purchasing a car. Most of the customers like to go with the used car due to the less investment. But at the same time, the middle-income customers like to go with the basic models of the company. As they are assured of the quality whereas used cars are not assured of the quality. Information search: The customers like to make internal search and the external search is conducted if more information is required. The information can be obtained from friends and families. There are marketer-dominated sources and public sources. Effective information leaves a customer with all the possible substitutes like Ford, Toyota, Tata and more. Assessment of the alternatives: The criteria are established by the company for the assessment introducing what customer needs and what’s not. The weight is given by the customers or the search is resumed. If the customer wants to buy basic to the premium range, Ford is just a perfect example. Purchase decision: The purchase decision is all about buying alternatives comprising product view, store and the method of the purchase and more. Purchase: After satisfying from the above points, the final decision is made by the customers to purchase the car. The purchasing decision of the customers is also affected by the availability of the products. Post-purchase evaluation: The post-purchase evaluation can be made in the two forms of satisfaction or dissatisfaction. It can be condensed by certain aspects like pledges, after sales communication and more (Datta, Ailawadi & van Heerde, 2017). Ford has identified that consumer buying behaviour is resolute by certain factors like level of participation in the purchase decision. It signifies and intensifies interest in a product in a specific situation. Buyers’ level of engagement also defines the motivation to pursue information about the products. The consumer behaviour can be categorised into programme
behaviour, partial decision making, widespread decision making and precipitate buying behaviour. Current marketing focus The marketing strategy of Ford enables to focus on the limited resources in order to attain the best opportunities for increasing sales. It even assists in attaining a sustainable competitive advantage over the long term. The marketing strategies of Ford are: Accelerate the pace of the growth: Ford has started One Ford plan in order to grab the opportunities for accelerating the progress for driving operational excellence and lucrative growth. The Ford plan comprises benefits and strength. Provide product superiority with desire: Ford is also having precedence to offer product fineness with appetite. The products are considered essence of the business of Ford. The Ford plan has enabled to display the best product line-up the company ever had (D’Souza, et al. 2019). Drive innovation in every segment of the business: It is the 3rdprecedence of Ford to initiate innovation in every segment of the business. The automotive industry is speedily developing and new technology is having a substantial influence on the business. Focus on value creation: The generating value roadmap has been used by the Ford to run operations and driving results. Ford believes in adapting a continually changing environment and adjusts plans to keep step (Dost, et al. 2019). Current marketing strategy The marketing strategy of Ford is the makeup of the target, segment and positioning. Target market: Ford makes use of the differentiated strategy in the organisation. This strategy is having the aim of targeting 2 or more segments by emerging a marketing mix for each segment. Ford has deliberated cars to petition to several kinds of customers and to content several diverse needs in the custom of sports cars, economy cars, luxury cars, vans, trucks, station wagons and more. The latest car produced by the Ford is the Ford Fiesta. This car is designed to emphasis more on the young segment and ladies (Schlegelmilch, 2016). The young people focused by the Ford are 18-25 years old comprising teenagers and ladies with the average income. This model is quite suitable for the unmarried people because it has a
space of five seats and is not appropriate for big families. Fiesta is suitable for customers who like to have middle size cars. The customers who are interested in purchasing used cars can also easily purchase this model (Liu, et al. 2017). Segmentation: The segmentation variables used by Ford are identified as geographic, demographic, psychographic and behavioural division. Ford is majorly segmented to the UK automobile market industry along with Indonesia, Malaysia and more. The latest model of Ford, Fiesta is making more use of the demographic variable such as age, income and gender. So the model is focusing on the young generation, ladies and persons with the average income. Ford Fiesta also focuses on the behaviourist variables with the advantage of safety and fuel efficacy (Andaleeb, 2016). Positioning: The positioning is all about knowing where products stand in the attention of the customers. It assists in building an image in the customer’s mind. The value-based positioning strategy is used by the Ford in order to produce an emotional and stimulating touch with the customers (Vieira-dos Santos & Gonçalves, 2018). The positioning reveals a core organizational value which has been communicated to the customers. An appropriate positioning statement has been developed in the automobile market like ‘Drive one’. It offers the customer with the relevant information. The position of the company says that fuel- efficient products which enable to go further (Camilleri, (2018). Marketing communication mix The marketing communication mix of Ford has the capability to unite with the customers. The marketing communication mix of Ford comprises: Product mix: Ford provides a wide range of products. The main products comprised in the product line of Ford are automobiles, trucks, buses, tractors, automotive parts and the financial services. Ford is mainly identified for automobiles like Sedans. Ford’s Motor craft brand comprises automotive parts for most of Ford’s vehicle. Even certain parts of the Ford are even suitable for the lorries like Toyota (Cacciolatti & Lee, 2016). Due to high technology, Ford has offered some of the best vehicles. The products of the Ford are made on the concept to contest the local driving conditions focusing on the durability and less maintenance costs. The main attention is given for maintaining fuel efficiency and ventilation system to suit the climate of the countries (Bivins, 2018).
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Place mix: Ford introduces to the world with the concept of producing at great scale with the industrialized work force. The manufacturing plant has been also set up in 6 out of the 7 continents with the global dealers and factories. The company makes use of the places or sites in its strategy of the product distribution. This constituent is used to concentrate on the venues or locations utilised to grasp and trade to the customers. The places used by Ford for the product dispersal are authorisations, auto parts supplies, Ford parts website and Ford motor credit company (Capitão, Gonçalves & Santos, 2017). The dealerships are the utmost conspicuous place for allocating products. Price mix: Ford is one of the leading automakers of the globe. In order to be extremely profitable, the company takes into account cost incurred along with the profit margin. The prising policy is also decided by the company on the basis of the rivalry companies. Therefore, the price of Ford relies on the market (Pliniussen, 2015). The company mainly makes use of market-oriented pricing strategy along with the premium pricing strategy. Ford sets the appropriate prices in the market-oriented pricing strategy along with the consideration of the demand, competition, consumer perception and more variables. The latter focuses on setting higher prices for its premium range (Morgan, et al. 2019). Promotion mix: The competitive pricing strategy is used by Ford to build long lasting relationships with the existing and loyal customers. The company also links with the sponsoring events to highlight the brand name. The sponsorship with the football league has assisted in tapping sport passion of the customers. The company makes use of all the tactics in its promotions. The tactics comprise all the actions required to endorse goods and services. The promotional actions of the company are advertising, individual selling, sales promotions, direct vending and public relations (Stead & Hastings, 2018). Strategic recommendations It is quite significant that the board of directors are completely committed to the brand and speak thoroughly highly whatever the situation is. It will definitely ensure efficiency and prove vehicle quality. It will also build rapport with the customers and take care of customer behaviour. The board of directors is also recommended to complete the entire training and practice module on the company to attain more product knowledge along with the information which has been already circulated. It will make the board of director to be able and conscious to share all the details of each model offered by the Ford. The board of
directors will also be capable of adapting what customer is pursuing to purchase. Once the needs of the customers are identified, it helps in relating needs and feeding back to the customers. The board of directors are also recommended to share vehicle qualities which are favoured by the customers. It will assist in creating trust and relationship in order to complete the sale. The board of directors can more efficiently understand the consumer behaviour by communicating them about the efficiency and sustainability of the products. Ford should focus more on the sustainable and efficient business practices which helps customers around the world. The customers also now days like to buy the products which are environment healthy and causes less damage to the environment. The fuel efficiency cars are also fascinated more by the customers. The board of directors are even recommend to mention Ford as the globe’s most ethical company and the award for the sixth year in the row. The company was also ranked first in the Inter brand’s list of best global green brands. Ford is also the best overall performer on the basis of the social, environmental and economic performance scores. It helps in changing the insight of the customers toward the brand. The board of directors can hunt for something new and unique as providing efficiency to the customers result in retaining over the long time. It is also recommended to the board of directors to focus more on the virtual reality, artificial intelligence and autonomous technology. It influences to the customer behaviour and fetches them for purchasing the products.
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