Marketing Essentials of AUDI: A Comprehensive Report

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Marketing Essentials of AUDI
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Table of Contents
Introduction......................................................................................................................................2
Company Background.....................................................................................................................2
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organization.....................................................................................................................................3
P1 Explain the key roles and responsibilities of the marketing function....................................3
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context..........................................................................................................................................6
LO2 Compare the ways in which different organizations use elements of marketing mix (7ps) to
achieve overall business objectives.................................................................................................9
P3 Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives........................................................9
LO3 Develop and evaluate a basic marketing plan.......................................................................11
P4 Produce and evaluate a basic marketing plan for an organization.......................................11
Conclusion.....................................................................................................................................18
Recommendation...........................................................................................................................19
Reference List................................................................................................................................21
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Introduction
The essential factors of marketing provide a huge insight into the company positioning in the
wide market of various emerging companies. It is due to the essentials of marketing that the
organizations are able to gain a specific positioning in accordance with the brand image and
various other marketing factors. The marketing essentials form a significant part for any
company and organization in order to stabilize its position in the vast emerging market (Sinha et
al., 2016). The requirements of marketing include a vast range of considerations, starting from
the consumer demands to providing a proper promotion for the concerned brand in the market.
These factors are extremely essential for the organization to provide a significant basis in the
market and provide proper marketing skill for the company. This assessment on the marketing
essentials provides a vast approach towards the various ways in which marketing is approached
by the luxurious automobile brand of Audi (Mocker and Fonstad, 2017). This assessment sheds
light on the various roles of marketing in Audi and how it interrelates with the other functional
units of the luxurious automobile brand providing a proper delineation on the various key roles
and responsibilities of the marketing function. The assessment on the marketing essentials also
provide a crucial marketing model that constitute the marketing mix along with the comparison
of the ways in which different organizations apply the marketing mix to the marketing planning
process to achieve business objectives and aims. The assessment also includes the evaluation of
the basic marketing plan for the luxurious automobile company of Audi.
Company Background
The luxurious automobile brand of Audi AG is primarily a German automobile manufacturing
brand that is functional in manufacturing, designing and distribution of the multinational brand
vehicles and luxurious cars to various parts of the globe (audi.com, 2019). The brand has gained
a huge global acclamation for its lavish manufacturing take on the automobile vehicles. The
company Audi is also an additional affiliate of the Volkswagen Group that provides a vast
market exposure for the brand. The manufacturing factories for the luxurious automobile brand
are produces in overall nine factorie4s for production and distribution worldwide. The brand has
its roots in the early 20th century when the brand Horch was established along with other
automobile brands Auto Union by August Horch. It was later in the years preceding 1960s that
the automobile company Audi was established through its independent collaboration with the
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Volkswagen Group. The company acclaimed international and global exposure specifically after
the manufacture and production of its series of Audi F103 that still holds the present day
acclamation and fame for the lavish automobile company of German origin. The company name
Audi has been derived from the name of its founder, August Horch. The word “Horch” has the
meaning “to listen’ in German language, that is changed into “Audi” in the Latin transformation
of the automobile company name. The overall yearly income of the company is about Euro 3.463
billion according to the report of the year 2018.
LO1 Explain the role of marketing and how it interrelates with other functional units of an
organization
P1 Explain the key roles and responsibilities of the marketing function.
Marketing function is referred to as the roles, which business organization splay for identifying
products, which have the potentials to be successful in the market and take resort to promote
them (Feng et al., 2015). These functions are highly significant in business organizations, which
involve development of product plan, marketing research, development process, finance,
promotion, sales and customer service and so on. Various responsibilities of the business
organization are involved in the marketing functions, which are highly significant for the market
growth. The marketing functions include marketing research, strategy management, product
development, sales support team, finance team, human resource department, distribution systems
etc (Cacciolatti and Lee, 2016). The marketing functions are assigned with the task of promotion
of growth of the business organization. The marketing functions of the automotive company,
Audi are endowed with the responsibilities of conducting an effective market research,
development of product, finance, communication, planning, distribution, promotion, selling and
so on. The marketing functions play a pivotal role in the business organizations.
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Figure 1: Universal Functions of Marketing
(Source- Mocker and Fonstad, 2017)
The marketing function of Audi is endowed with the responsibility of focusing on the practical
application as well as management of the marketing operations. In order to effective market
functions, efficient marketing managers are recruited by the company. The marketing managers
of the multinational automotive company are seen to be proficient in communicating as well as
in analyzing. The marketing department of the company is seen to be playing a crucial role in
formulating, coordinating as well as directing marketing activities for influencing customers for
choosing the products as well as services from the company over its prevailing competitors. The
functions of the marketing department of Audi are as follows:
Effective conduct of the Market Research
A market research is carried out by the marketing department for gaining a detailed
understanding of the needs of the customers of the company. The marketing department of Audi
is enabled in identifying new opportunities with the help of marketing research, which turn
enable the company in creating a market niche for its services as well as products. Market
research of the automotive company also includes the analysis of the marketing strategies of its
competitors for the incorporation of effective marketing techniques along with development of
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superior products (Kirova, 2017). Market research is conducted by the companies by the usage of
face to face interviews, questionnaires or the analysis of the purchasing habits of the customers.
Development of Effective Marketing Strategy
Marketing Department of Audi is endowed with the responsibility of the development of the its
marketing strategies. These strategies are formulated by the marketing department for enabling
the employees to promote its services and products to the target market, which in turn will be
crucial for the increase of its sales volumes as well for the gaining of an advantageous position in
the competitive market (Homfeldt et al., 2017).
Management of Customer Relationship
The marketing department of the automotive company, Audi looks after the development as well
as management of an effective relationship with the customers. The information is collected from
the customer base of the company by the marketing department for creating a survey for
customer satisfaction (Wierenga and Van, 2017). This information is then circulated among the
employees of the company in order to enable them in offering highly effective customer services
to the target customer for building long lasting relationship. This in turn will assist the company
in gaining huge profit.
Effective Management of the Employees
The marketing department of Audi is charged with the responsibility of looking after the services
of the employees within the department. Duties are assigned as well as target for the
departmental staffs are set by the marketing department. The marketing department is assigned
with the task of performing periodic evaluation of performance of the employees, who are
working for the company.
Identification of Better Market Opportunities
The significance of identifying better opportunities in the market of automobile companies
provide is highly essential and important in order to provide better scope and opportunity for the
luxurious automobile company Audi (Homfeldt et al., 2017). Thus it is absolutely essential to
provide a huge scrutiny of the market opportunities according to the exploration of the market of
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Audi. The proper decision of market choice can be properly implemented by Audi primarily
through establishing a proper market planning and functioning by identifying the key market
strategies for product building along with its manufacturing and distribution. The additional
methods of promotional aspects for the luxurious Audi vehicles are significant in providing the
brand with a clear view of the market idea in order to gain better market opportunities and areas
of providing higher objectives for Audi. The luxurious automobile brand of Audi also require
proper evaluation of the company functionality through establishing an apt company structure
that can help the company to gather proper information of the market they want to expand into.
According to Mocker and Fonstad (2017), the effective handling of leadership in automobile
company Audi is crucial in order to provide motivation to the company employees and sales
department employees to scrutinize into the matters of economic expenditure and maintenance of
a budget in the market they enter.
Apart from the above mentioned functions, the marketing department is assigned with the job of
implementing an effective marketing research programs along with formulating the
organizational structure. Moreover, the marketing department of the company is further endowed
with the responsibility of looking after every operational department, organizing a sales
intermediaries’ network as well as transformation system, organizing customer conferences,
improving product, changing prices in accordance with the market preferences along with
formulating effective promotional tactics (Srinivasan and Ramani, 2019). It becomes quite
evident from the analysis of the role and responsibilities of the marketing department of Audi
that it plays a pivotal role in enabling the organization gain success.
P2 Explain how roles and responsibilities of marketing relate to the wider organizational
context
Athanasopoulou and Selsky (2015) suggested that in every organization, the prime focus must lie
in satisfying customers by responding efficiently to the customers' demands. As the automobile
companies are competing to provide the latest innovation in the competitive market, it is high
time for Audi to generate latest products before their rivals. Therefore, the marketing department
must maintain the mission to ‘Re-Think' so that they can serve the customers effectively. The
marketing VP (Vice President) of Audi is assigned two major works. One is to monitor the
internal marketing activities of the organization. The second is to align the marketing strategies
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with operations and finance so that they can stand the expectations of the customers. The
conflicts of interest are unavoidable as different departments are assigned a unique task to be
presented at the time of assembling. A steady communication must be maintained at every level
of the marketing team so that no information is missed while designing an advanced product. On
the contrary, Crane et al. (2019) revealed that the engineering team and the marketing team are
always at conflict. This can occur due to two reasons. Either the marketing team is inefficient to
sell the products or the engineering team has designed a poor product. Thus, to launch a new
product in the competitive market, all the departments must work in a team for the successful
completion of the project.
The expansion of roles and responsibilities can be illustrated through the support of various
interactions that tales place within the selected organization, Audi. It is very important to delve
with the presence of interactions that projects the scenario of roles and responsibilities and this
can be relatable to establishment of better regulation of functions in the organization (Verburg et
al., 2018). This can be illustrated through the help of various types of relationships that can be
enhanced through the means of interpretation of relationships in the organization, Audi.
It has been observed that various departments help to from various types of relationship in the
organization, Audi. Audi is one of the finest organizations that delve with the presence of
different departments and henceforth, this becomes easy to maintain a well working environment
that runs successfully through the help of developing relationships (Gutierrez et al., 2018). The
formation of veracious relationship help Audi to work well during the time of problems and
accordingly such roles and responsibilities help to mitigate the issue. This can be formulated
through the help of maintaining good relationship with Human Resource Department (Wiener,
2018).
In terms of roles and responsibilities can be easily illustrated through the help of better
propagation of work in an efficiencies manner (Osagie et al., 2019). The foremost activity that is
maintained by Human resource department of the organization is to enhance the productivity that
will bring further development in the organization. The roles and responsibilities will be helping
the organization through the support of department on the grounds of Human resource (Osagie et
al., 2019). Henceforth, this can be stated that Human resource department of the organization,
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Audi will help to project required tasks that is based on the completion of determined ambition
by Audi (to attract targeted consumers).
The presence of roles and responsibilities, of the HR department that tends to helps the
organization to maintain the organizations, Audi’s business ethics. Moreover, this can be validate
that HR department is a helping part of every organization that primarily comes up with the
revelation based on the propagation of accustomed nature that delves with the variation in the
marketing of the organization (Osagie et al.,2019). However, the relationship that can be develop
through the help of better formation of relationship and this inversely help to maintain to
business ethics of Audi.
Another part of role and responsibility can be illustrated through the help of relationship that take
place between the various departments (Rialti et al., 2018). Audi gains the profitable results
based on the relationship on the part of Finance Department. Activities help to gain successful
factor in Audi backed by the power of Finance department. Additionally, Finance department of
Audi will help to build formulation of statistical data based and that will depict the good
performance on the part of productivity (Rialti et al., 2018). Good relationship due to the
support of fiancé department will help Audi to come up with advance level of commercials,
logos and new logos of the organization to throw tough competition to its rival (El et al., 2018).
It has been observed that Audi will be gaining successful factors basked by the power of finance
department that relates with the propagation of advancing level of performances. The implication
of good relationship will help to develop the backbone and accomplishing structure of Audi.
However, the other part of the organization can be gaining the help form Production Department.
The relationship that takes place between the numbers of various dissimilar departments will
help the organization to gain beneficial results in terms of expansion of Audi in the international
market (El et al., 2018). Thus, it can be stated that the collaboration between the departments
will help the organization to deal with better level of performances through the support of roles
and responsibilities.
The other department of Audi will be gaining profits from its rival. The prime roles and
responsibilities that are maintain by the production department to handle various customers by
accomplishing and executing the products to meet the basic requirements of the loyal consumers
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(Gutierrez et al., 2018). Moreover, this can be stated regulation on the part of production
department will help the organization to gain profitable results based on the reflection of quality,
expenses which deals with performance level by productivity in Audi. However, this can be
validating that the presnece4 of various types of department will help the organization to
propagate success factors to throw tough competition to their rivals (Gutierrez et al., 2018).
LO2 Compare the ways in which different organizations use elements of marketing mix
(7ps) to achieve overall business objectives
P3 Compare the ways in which different organizations apply the marketing mix to the
marketing planning process to achieve business objectives
For any organization, the marketing procedure needs an in-depth assessment of marketing
essentials which is very required. In order to execute marketing practices and expand advanced
profit and competitive benefit for the business, it is very necessary for them to take positive ways
of increasing appropriate marketing skills (Balmer, 2017). These techniques and skills have
pertained to the process of different selling theories which assist the organization to accomplish
the objectives that they are wishing to. The marketing mix is a type of theory (Wu et al., 2018).
The marketing mix assists the organization to achieve constancy and power in the huge sphere of
rising markets. The implement of the marketing mix is basically used by different companies that
assist in the recognition of the business or goods contribution (Dadzie et al., 2017). The
assessment of the marketing mix has been recognized in this portion of this assignment. The
assessment has been utilized and balances among two automotive companies. One of the
companies is AUDI and the other company is Honda. These two companies have a high
reputation and high demand in the market. These two companies belong to two different areas.
AUDI is an automotive company and its headquartered present in Ingolstadt, Germany. On the
other hand, Honda is also an automotive company but its headquartered is present in Minato,
Tokyo, Japan. Both the companies have a large sequence of automobile showrooms which is
successful in comparing the marketing mix of the organizations.
Marketing Mix with regard to Products in AUDI and Honda: AUDI is known as a part of the
big three luxury car manufacturers. AUDI have increased their range and now manufacture a
wider verity of new cars like A1, Q5, Q7, A4. Production numbers for the Audi company are
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impressive and the cars are very expensive and luxuries also (Cudny and Horňák, 2016). On the
other hand, Honda lacks on the matter of quality in comparison to Audi. Honda mainly focuses
on manufacture motorcycles whereas Audi is famous for its luxury cars.
Price in AUDI and Honda: The pricing approach of Audi is a large amount of superior and
luxurious than that comparison to Honda. Comparison to Honda, Audi offers a greater stage of
manufacturing cars. Honda has a reasonable pricing plan based on the reality that it requires to
create a center of attention of a larger number of the purchaser and develop the brand in the
present market sphere (Jena, 2017). However, Honda sticks to the plan of a skimming strategy.
Or else in contrast to Audi, Honda has a much lesser pricing rate. The strategy implementation of
Honda is also very low compared to Audi.
Place in AUDI and Honda: In India Audi have 28 dealerships across 11 states. The branches of
Audi expand at a large rate. The competitive rate of Honda is much lesser than Audi (Johnson et
al., 2016).
Promotion in AUDI and Honda: Audi is concerned in different sports and sponsorship
ventures such as many football teams. Audi has a stable facet in Sony's Play station Home.
Without overdoing promotion Audi manages to maintain itself in the public eye (Allen, 2019).
The company is successful to advertise on television, magazines, and billboards. The excellence
of promotional events for Audi upsurges the company's fame between the purchasers. The
international market growth of Audi promotes brand advertises, promotional proceedings. On the
other side, Honda has a lower rate of international exposure and lacks the effort to give market
promotion. The company especially attracts the clients from surrounding backgrounds in the
Indian market and it heavily lacks global exposure (Cuaresma et al., 2015).
People in AUDI and Honda: The employees in Audi are one of the most important parts of
their company. It includes the different people who are responsive and patient concerning the
management client's needs and issues. They require being familiar with the ways and interests of
the client who visit Audi showrooms in order to give them excellence service (Bastian et al.,
2019). Honda also has a capable employee force and attends to client needs.
Processes in AUDI and Honda: The procedure and transaction of attending clients in Audi are
way under control than Honda. The client in Audi showrooms is way additional than that of
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Honda. Consequently, a huge strength of the purchaser is attended by the employee pretty
professionally and effectively. On the other side, the employee at Honda showrooms are quite
efficient as well but compare to Audi it is lesser competitive due to higher client rate and brand
attraction for its lower price (Devi et al., 2018). The errors in Honda in terms of purchaser
management are there. However, they have willingly taken note of such occurrences and they
struggle to avoid it in the future. Audi in this contrast has an appropriate process and method of
treat clients and they are given with high superiority services which make it value the benefit.
Physical Evidence in AUDI and Honda: The physical evidence in Audi has an appropriate
method of engaging clients due to its global brand value and international design. The past
experience and outer spark of Audi add to the organization picture and gives a greater range of
market growth. On the other hand, Honda fails to provide advanced quality of physical evidence
compare to Audi. Honda brand has lower market development and a lower rate of competitive
benefit in the marketplace (Tumuju et al., 2017). For this reason, this results in investing in
minor capital in the marketplace. It creates lower physical evidence for Honda.
LO3 Develop and evaluate a basic marketing plan
P4 Produce and evaluate a basic marketing plan for an organization
Marketing Plan of Audi
Marketing Objectives The missions and vision of Audi helps to
create ma proper marketing plan for the
organisation. Audi is an important
automobile manufacturer company of the
earth. The mission of this organisation is to
provide quality services to the customers as
well as strengthen the brand image of the
products. This organisation focuses to
implement innovative technologies in its
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