Marketing, Sales and Negotiation Skills: A Case Study of Mercedes Benz

This case study explores the marketing, sales, and negotiation skills applied by Mercedes Benz. It includes a PESTEL and SWOT analysis, discussion of the marketing mix, and the importance of sales and negotiation skills in the automotive industry.

Marketing, Sales and
Negotiation skills

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PESTEL and SWOT analysis......................................................................................................1
Discussion and analysis of Marketing Mix.................................................................................3
Sales as well as negotiation skills applied of organisation..........................................................5
CONCLUSION................................................................................................................................6
RECOMMENDATION...................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is an important activity for business as it plays important roles in earning profit of
business (Aisha, Sudirman and Siswanto, 2016). Marketing helps to create awareness of products
and service of company and attract customers towards brand of company. Marketing also helps
to increase sales as well as profit of company. Marketing helps business to meet needs of
customers and also ensure growth and survival of business in competitive environment.
Marketing helps to increase market share of company and allow them to decide right price of
product which create sufficient demand for products and service of organisation.
Marketing Benz is German automotive company which is established in 1926 by Karl Benz.
Company is operating in automobile industry and offering premium products like luxury vehicles
as well as commercial vehicles to their customers. Company has brand recognition and strong
rand value in market as they are focusing on quality of products rather than price which allow
them to increase satisfaction of customers. Object of company is to build desirable car for their
customers. Aim of organisation is to increase profitability and allow competitors to transform
electric mobility as well as comprehensive digitalisation. This object of company is fulfil with
marketing activities which helps htm to overcome of competition in market as company is
operating in highly competitive market.
MAIN BODY
PESTEL and SWOT analysis
SWOT analysis: SWOT is an internal external analysis which helps business to identify strength
and opportunity in market that helps to overcome of threat and weakness of organisation
(Barrager, 2016). SWOT analysis of Mercedes Benz are mentioned below:
Strength Weakness
 Mercedes Benz has strong brand value
as well as strong recognition in market.
 Company is focusing on needs of
customers which helps them to satisfy
their customers.
 Company has well supported research
team and development team.
 Mercedes Benz has recalled their unit
due to issues in headlight, defects in
steering, airbags issues.
 Organisation is involved in controversy
due to software installation in cars as
well as vans for cheating pollution test.
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Opportunity Threat
 Announcement of China cis related to
carbon neutrality and encouragement of
electric vehicle in country provide
opportunity to organisation. Company
is producing electric car with better
performance as well as design to take
advantage capture large market shearer
of China (Caruana, La Rocca and
Snehota, 2016).
 Company has more partnerships as well
a collaboration in market which helps
them to create new and unique product.
These partners provide both capability
as well as resources to organisation.
 Regulations of government related to
emission decrease demand of vehicle
which consume fuel.
 Due to global pandemic and economic
crisis some of business partners of
company are facing financial
difficulties which result in closing of
their operation This create impact on
business of Mercedes Benz.
PESTEL Analysis: PESTEL analysis is one of analysis which include identification of various
factors which are resent outside business environments (Maier and Brem, 2018). Mercedes Benz
conducting their operation at international level which create threat of these external factors on
organisation. PESTEL analysis of Company is mentioned below:
Political Factors Economic Factors
 Political factors are those which are
related to uncertainty of government
and interference in business. Company
is facing political uncertainty in
Europe, EMEA, America which can
create negative impact on their
business.
 Brexit is another issue which also
create problems as due to this
agreement government of UK and
 Economic crisis due to pandemic also
create problems for company as
partners of company is facing financial
difficulties which result in closing their
business. These closing of partners
business create impact on business of
Mercedes Benz.
 Movement in currency also create
impact on business of Mercedes Benz.
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Europe has made various changes in
their rules and regulation.
Social Factors Technological Factors
 Customers are becoming more aware
for environment which create demand
for electric cars.
 Innovation in industry of mobility is
taken place which provide opportunity
for organisation of providing electric
vehicles in market (Schaefers, Ruffer
and Böhm, 2021).
 Company is one of first organisation
which is using innovative address
systems.
 There is increasing trend of digital
products as well as service in
automobile industry which provide
them various benefit as company is
using advance and digital technologies
in their operation.
Environmental Factors Legal Factors
 Automobiles sectors are creating
negative impact on environment.
Emission of greenhouse gas in
environment is result from automobile
sector.
 Company is working on suitability in
their operation.
 There is increase in regulation for
autonomous vehicles.
 There is also regulation related to laws
and emission standards.
Discussion and analysis of Marketing Mix
Marketing Mix: Marketing mix is term which include combination of actions and tactics of
company for promotion of their product and service in marketplace (Shabir and Sharma, 2019).
These marketing mix comprise four components including price, product, promotion, place. But
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business also include extended p’s in marketing which are physical evidence, people, process.
Marketing mix of Mercedes Benz are mentioned below:
Product: Products refers to any physical thing which an organisation is selling in market
for exchange of monetary value. Mercedes Benz is working in automobile Industry hic har
offering premium cars in market. Company is offering wide range of cars, light and heavy
commercial equipment vehicles in market.
Price: Prices refers to value of money in exchange of products and service. Mercedes Benz
is targeting luxury segment group in which people are more concerned with quality in compare
to price. To provide quality product in market, organisation is offering higher prices in market.
Place: Place refers to market in which organisation is offering their products and service to
target market. Mercedes Benz is offering their products in international market which allow them
to sell their products in all over world. Company is selling their products in different parts of
world through dealership and service station. Major market share of company includes China,
Europe, Asia pacific, Germany, America and many more.
Promotion: Promotion refers to an activity which is conducted to increase awareness of
products and service in market (Sheptak Jr, and Menaker, 2016). It includes advertising, personal
selling, social media, sales promotion and many more. Promotion channel used by business is
online mode, print media, Billboard. Company is not using traditional method for advertising.
Marketing strategy of company is focused with products and technology.
People: People refers to those who run operation of organisation and include front line
staff to managing director. Mercedes Benz is one of organisation who has highly skilled
employees which are working in direction of growth and success of company. Having rights kind
of people in organisation provide them competitive advantage and helps to compete with other
market players.
Process: Process refer to delivery of service to customers which satisfy customers.
Mercedes Benz is one of organisation which ate providing various services to their customer.
They are providing pre and post purchase service to their customer in various ways.
Physical Evidence: Physical evidence are important mostly in service industry as service
are intangible which enhance their customers experience. Physical evidence helps to enhance
customers experience and Mercedes Benz is providing physical evidence by selling their
products to their target customers.
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Sales as well as negotiation skills applied of organisation
Sales and negotiation skills: Negotiation skills are those skills in which two or more parties are
involved to reach to a decision or compromise. These are important skills in sales which helps
increase sales of company (Viitamo, Luoto and Seppälä, 2016). Business carry out all effort’s in
market to increase saes of their product and service to get opportunity to increase their revenues.
These skills are learned by me through session of sales and negotiation skills. These skills are
implemented in Mercedes to build relation with customers and overcome of problems occur in
business. Some of sales and negotiation skills learned by me in session of negotiation and sales
skills are as follows:
Communication skills: Communication is one of important skills in sales as well as
negotiation skills. I have learned communication skills in sales and negotiation skills session as it
one of important skills for organisation of Mercedes Benz which allow individual to
communicate with right person in order to get sales for company. This skill helps me in
providing opportunity to get employment and get more sales as it I have learned to invest my
time and efforts on right people rather than on people who are not ready to by products of
company.
Building relationship: Building relationship is another skill which I have learned in
sales and negotiation skills session. This allow me to learn to build good relation with people
whch increase my contact. This skill is important in Mercedes Benz as with this skill they are
able to made good relation with their customers which increase their loyalty. Building good
relation with people allow them to get more sales opportunity.
Creative problem solving: Problem solving is another skill which I have learned from this
session of sales and negotiation skills (Woodside, 2016). Problem solving is one of important
skills as this is required to solve problems occur at workplace. Mercedes Benz is using this style
for solving various problem occur at work place and provide creative solution in order to solve
these problems. This creative solution helps to solve any problems and reduce negative impact
on business.
CONCLUSION
From above mentioned project report in can be concluded that marketing refers to a process
which related creating, communicating, exchanging ad delivering values to customers, client and
society. There are different marketing skills which is important for a person that helps them to
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increase sales of their products and also increase in satisfaction of customers. To identify
environment of market a firm conduct PESTEL and analysis and SWOT analysis. PESTEL is an
external analysis which helps a firm to identify factors which can crate negative impact on
business. Firm also use marketing mix which provide them clarity to use a particular channel of
marketing. It includes combination of product, price, place and promotion and also include other
P’s like people, physical evidence and process.
RECOMMENDATION
Form above mentioned project report, it can be recommended that it is important for a firm to
identify various factors in environment which can create impact on business. Identification of
these factors allow firm to find valuable solution and also formulate different strategies for
business to overcome of impact of these factors. To select appropriate marketing strategies, it is
important for firm to identify different components of marketing mix as it helps them to
effectively communicate strategy of business to different customers and attract them towards
brand of company.
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REFERENCES
Books and Journals
Aisha, A.N., Sudirman, I. and Siswanto, J., 2016, September. Conceptual model of
entrepreneurial, managerial and technical software competencies towards SME
performance in subsector software industries. In 2016 IEEE International Conference
on Management of Innovation and Technology (ICMIT) (pp. 237-242). IEEE.
Barrager, S.M., 2016. A new engineering profession is emerging: decision coach. IEEE
Engineering Management Review, 44(2), pp.33-40.
Caruana, A., La Rocca, A. and Snehota, I., 2016. Learner satisfaction in marketing simulation
games: Antecedents and influencers. Journal of Marketing Education, 38(2), pp.107-
118.
Maier, M.A. and Brem, A., 2018. What innovation managers really do: a multiple-case
investigation into the informal role profiles of innovation managers. Review of
Managerial Science, 12(4), pp.1055-1080.
Schaefers, T., Ruffer, S. and Böhm, E., 2021. Outcome-based contracting from the customers'
perspective: A means-end chain analytical exploration. Industrial Marketing
Management, 93, pp.466-481.
Shabir, S. and Sharma, R., 2019. Role of soft skills in tourism industry in Saudi
Arabia. International Journal of Engineering and Management Research, 9.
Sheptak Jr, R.D. and Menaker, B.E., 2016. Learning and working with the pros: Student
perspectives on an embedded experiential learning project. Journal of Hospitality,
Leisure, Sport & Tourism Education, 19, pp.104-114.
Viitamo, E., Luoto, S. and Seppälä, T., 2016. Servitization in contract manufacturing–evidence
from Polar business cases. Strategic Outsourcing: An International Journal.
Woodside, A.G., 2016. Participant Observation Research in Organizational Behavior. In Case
Study Research. Emerald Group Publishing Limited.
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