Basic Principles of Marketing (pdf)

Running Head: PRINCIPLES OF MARKETING 1
PRINCIPLES OF MARKETING-FORD MOTOR DRAFT 4
Jennifer Bean
Liberty University
Principles of Marketing 330

PRINCIPLES OF MARKETING 2
Company Goals
Ford Motor is a multinational automotive company founded by Henry Ford in 1903 and
whose headquarters are based in Michigan. The company is divided into two brands, Lincoln
brand which sells luxury cars and ford brand which sells commercial vehicles and automobiles
("Ford Motor Company: Company Information | Ford.com," n.d.).
i. Improving fuel economy for all products while adhering to regulations and
addressing stabilization of the climate
ii. Delivering the Company’s smart mobility plan through embracing budding
prospects in mobility
iii. Growing the company’s annual car sales to 9.4 million representing 45-55% by
the year 2022
iv. Extensively Increase its share in the markets of Europe, Middle East Africa, and
Asia-Pacific
v. Continued support for women and minority-owned business through material
sourcing
vi. Reduction of the company’s environmental footprint through sharing of best
practices and collaboration with selected suppliers.
vii. Helping suppliers in establishing their ability to handle sustainability issues
touching on their supply chain.
viii. Adherence to their the commitment to promoting and protecting human rights and
local laws through their manufactured and sourced products
ix. Saving water used in the manufacturing by 30% by the year 2020
x. Reducing the amount of Carbon Monoxide emitted in the production process for
each vehicle by 30% by 2025.
xi. Continued promotion safe driving practices through the provision of information
and educational programs
xii. Meeting or exceeding regulatory safety requirements through designing and
manufacture of vehicles with driver assist and innovative safety technologies

PRINCIPLES OF MARKETING 3
xiii. 40% Electrification of the company’s lineup by the year 2020
xiv. Continued provision of services and programs focused on employee
empowerment for the achievement of well-being and health of their employees
("Ford Motor Company Official Global Corporate Homepage ...", n.d.).
Situational Analysis
Product Situation
There are two core products of the company which includes the luxury cars and
commercial vehicles. The luxury car products of the company use the state of the art technology
to provide enhanced comfort to the customers of the market. In terms of the commercial cars of
the company, the management has goals to improve the fuel economy so that it can attract more
customers of the market. Einwiller & Steilen (2015) stated that fuel economy of the cars is one of
factors that influence buying decisions of the customers of the market.
Key Competitors
The behaviors of the competitors are different based on the different segment of cars.
While the competition in the luxury car segment is tough, the competition in the commercial car
segment is less fierce. Audi, BMW is two of the main competitors of ford. Both the rival
companies of ford spend more than 6.5 billion USD each year for R&D (Xing & Tzeng, 2017).
This allows them to stay updated with modern technology which can be used in the production of
the cars.
FORD MOTORS is into manufacturing both luxury cars and commercial cars. The rate
of competition differs based upon the types of products pitched by the company. The
competition is more severe in the segment of luxury cars, whereas it is less stringent with respect
to commercial cars section. FORDS has received the maximum of its competition from Audi,
BMW.
The segmentation patterns of AUDI and BMW are based upon the income status of the
population. As mentioned by Rozdolskaya & Ledovskaya (2015), Audi and BMW have a loyal
customer base that is ready to pay the high prices for the cars. The themes used by the

PRINCIPLES OF MARKETING 4
competitors for attracting the target customer groups are-comfort design, safety features and
brand image.
Advantage to Key Competitors
AUDI, BMW spends 65 million US dollars every year in its research and development
activities. These activities help the company in being update with the latest technology which
provides them with a competitive advantage. As mentioned by Güçdemir & Selim (2015),
psychographic segmentation pattern is used to attract the target customer group. The brand image
associated with Audi and BMW further provides them with a competitive advantage over some
of their similar market players (bmw.com.au, 2018). The additional amount of emphasis upon
the safety features has made the brand a favorite among the target customer groups.
Distribution Situation
The distributional channels used by Ford Motor Company are almost same as the
distributional channels used by the other companies of the market. For the luxury segment of the
cars the company takes order to customize the products. It is done through the retail outlets
where the commercial vehicles are supplied directly for sales. However, in case of international
business, the company also uses the licensing channels to distribute the cars of the company.
Environmental Situation
The manufacturing of the both the class of products requires a lot of water. Apart from
that, the manufacturing units also emits lots of harmful chemicals and gasses in the neighboring
environment degrading the quality if the environment. The degradation of the environment can
significantly affect the performance of the company in the future. The management of the
company also has goals in the future to reduce the use of water in the production process Laari-
Salmela, Mainela & Puhakka (2015). Apart from that the goals of the company also includes the
reduction in the emission of carbon mono-oxide so that the environmental degradation is
lowered.