Marketing and Management Strategies for Car Dealership Market Analysis

This report offers a comprehensive analysis of the car dealership market, covering key aspects of marketing and management. It begins with an introduction to marketing management principles and the car industry's structure, including the roles of dealerships and manufacturers. The report then proceeds with a market audit, examining factors such as sales records, inventory, and customer preferences. A detailed market analysis follows, considering both macro and microenvironmental influences. The core of the report focuses on the marketing mix (4Ps), including product, pricing, place (distribution), and promotion strategies. A SWOT analysis is also included to assess strengths, weaknesses, opportunities, and threats within the industry. Finally, the report concludes with recommendations for improving marketing performance, emphasizing the importance of understanding customer needs, fuel-efficient vehicles, and effective management practices.

Marketing and management
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Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
Car dealership market audit.............................................................................................................3
Part 2................................................................................................................................................5
Market analysis................................................................................................................................5
Part 3................................................................................................................................................5
Audit................................................................................................................................................5
Part 4................................................................................................................................................8
Recommendation.............................................................................................................................8
Part5.................................................................................................................................................8
Conclusion.......................................................................................................................................8
Reference list...................................................................................................................................9
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Introduction
The term marketing management means giving directions to an organization’s resources in order
to implement the best possible strategy so as to meet the desires of the customers. The goal
should be maximize the sales of the particular product or service. The person responsible for
overseeing, planning the development of new products is the manager of the company. “The
manager is also responsible for making the advertisements and promotions. He is also
responsible for sales and managing the products for both day to day. He also maintains the long
term strategies of his organization”( Akdeniz & Calantone,2017, pp. 43-57). Mainly the
advertisement and marketing department of a company work a s a single department. The
marketing manager oversees both the departments. The manager also looks after the projects of
the employees and their tasks which help the company in making new projects. The car industry
has a large range of companies and organizations which are involved in designing, development,
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manufacturing, marketing and selling of the car products. The car industry began in 1960s. The
car industry companies have to maintain the safety of the cars. “The manufacturers have to make
sure that the parts that they are using are not causing any harm to the passengers or they should
also have to make sure that there is no chances of accidents” ( Atkinson, 2016, p. 386).
Part 1
Car dealership market audit.
The car industry is always composed of care dealers who are new. They accepts the ins in trade
on the sales of the new car products. They can also purchase old articles directly from different
customers, or from the other car dealers. They can also buy from the wholesale markets and the
fro the auto dealers who work independently. The independent auto dealers don not have
affiliation as an automaker, they can only sale the used vehicles. “While examining the dealer
before buying a product, the examiner should make some specific questions” (Camagni, 2017 pp.
183-202). The questions that he should make regarding sales are –
 Wheather he is making a personal record or the list of the profits in on the cars or their
deals.
 Which sales are at auction?
 If there any sales to wholesalers.
 What are their sales to other retailers?
 “Is there any in housing dealer finance systems?”( Charter & Polonsky, 2017 pp. 57-70).
 Is there any financing sales who are third party present or not?
 Is there any other types of transactions in sales are present or not?
 If there is any sale which have brought loss should be described.
 While making the sale of a car, how do they report the sales.
 The prices of gross sales per sales contracts should also be known.
 Does the sales price includes the licensing fees and the titling fees ?
 How they keep the records of the incomes and the expenses on books?
 Does the person really own the car company or he is just only the shareholder of the
company?
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 How he can arrive about the amounts of discounts that is recognized on the sales ?
( Charter & Polonsky, 2017, pp. 57-70).
Regarding the inventory items the questions that should be made are –
 “For setting the value of invention for a car, what are the different information sources
that are used? Have the values have ever changed? What are factors to be considered for
changing the values?
 If a car has to be repaired for it’s resale, how the costs are recorded?
 What is the value used for vehicles at the end of the inventions and how the value
actually differs from the price that was estimated previously”( Cherubini et al, 2015,
pp.40-49)
Apart from these the customer factors must also be considered for new inventions , for launching
a new project. The choices and needs of the customers actually changes from time to time. The
types of cars which were liked by people years ago are not liked by people now. They also want
goods within a reasonable price. For example when a car first launched, it’s demand was huge
as the cost of the car was much less in comparison to other cars. But now, the demand of the car
has reduced as people after using it are not satisfied with the quality of the car. So people now
will go for other modes of transport or other types of cars. Mainly demand high quality goods of
comforts at low price. So apart from buying cars, people may buy bikes as they are available at
reasonable price. Each and every person needs a mode of transport. So if they cannot afford car,
they may go for bikes (Christopher, 2016).
Part 2
Market analysis
The macro environment and microenvironment factors affect the production of the cars. In most
of the countries the production of car is restricted only to domestic or regional uses and demands
of the local people. Also the level of car production by an industry is dependent on the level of
incomes of the people. It is also dependent on the interest rates and also the financial ability. It is
also dependent on the confidences of the consumers and it is also dependent on the other
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macroeconomic factors. Production of a product takes a long time , so the consistent and
predictable progress in the economy is important. Therefore the general macroeconomic and
monetary policies which gives consistency in GDP per capita growth are really important factors.
“The primary sources of information are those which are used during the studies or the research
of the material. In the car industries the primary sources of information include the original
research that is being done, the documents of the government, raw data like the statistics and
surveys. It also includes different laws regarding the Australian car industries. Whereas the
secondary sources include the ideas and the scholarships of others. Some examples of the
secondary sources include some books regarding car industries, articles, histories, criticisms
related to the car industries”( Kimes & Wirtz,2015, pp. 1-68).
Part 3.
Audit
The marketing mix includes the four decisions which should be taken before the launching of
any project. These four variables are mainly known as the 4Ps of marketing. The marketing mix
of the car industries also includes the 4Ps. Any car industry without involving these 4Ps will not
be able to make a business prosperous. The 4Ps of the car industry includes –
 Products in the marketing mix – the first thing which comes about while starting an
industry is the product. So the first variable in any industry is the products. The decisions
to be taken in first is about the products. A product is again divided into core product,
augmented product and the tertiary products. Before taking decisions on the components
of the products the company should make sure about some questions .
1. What products are the company going to sale?
2. What the quality of the products would be ?
3. What are the features that are different from the markets?
4. The USP of the product should e known.
5. Whether the product that is going to be launched will be sub branded or will be
another new brand?
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6. What the secondary products are that could also be sold alongwith the primary
products?
Based on all the above questions the product decisions should be made. This would
affect the other market mix. Like if the company wants to launch a car of much high
quality then the pricing, promotion and placing will also have to change ( Kotabe &
Helsen, 2014).
 Pricing in the marketing mix – Pricing of any product depends upon many things, so the
pricing of goods change from time to time. Major considerations while pricing a product
is the costing of the product, the advertisements and the expenses in marketing. It also
includes any fluctuations in the price of the markets, distribution costs, etc. The pricing
should be made in such a way that it is capable of adjusting with the changes from time to
time. Alongwith these there are other thongs which is needed to be considered.
Competition is one such example. At the same time the pricing also involves effects the
targeting and positioning of the product. In sales promotion pricing is given as trade
discounts. Thus there are many pricing strategies, any one can be implemented for
pricing the cars in car industries. (Kotler, 2015).
 Place in the marketing mix – “Place in the marketing mix refers to the distribution
channel. If the product is the product of the customer then the product should be available
as wide as possible. If the product is a premium customer product, then the product is
available only in the selected stores. Where as if the product is a business product then a
team is needed which always interacts with the business and the customers are available
with the products due to this. Distribution has a good effect on the profits of the
products. The logistic decisions and the supply chains are considered as very important
costing decisions in the firms. The car industry should have a full proof logistics and
supply chains”( Lutz, 2015,pp. 593-603. ).
 Promotions in the marketing mix – “The integrated marketing communications including
the advertisements and sales promotions are the ways through which a car industry
endorse a new product. Promotion of a good is dependent a lot on the goods and also the
pricing of the products. It is also dependent on the budget and also the stage at which the
product is launched. Product awareness promotions should be given if the product is
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completely new in the market but brand recall promotions should be given if the product
is already existing in the markets. The right kind of promotion effects all the other three
variables. If the promotions are seen to be effective then the distribution channels also
have to be increased. The p[riving of the products also have to be increased. Promotion is
considered as the expenses of the company and the same thing has to be considered while
setting the costing. Sometimes increasing in the budget may cause decrease in the
demands of the products. So proper promotion should be given for a product” (Mathur,
Valecha & Khanna, 2018, pp. 286-290).
SWOT analysis –
The car industries have strength, weakness , opportunities and threats.
Strength
 “Evolving industries
 Continuous innovation of the car and advancement in technology.
 Increasing demands of VHM vehicles.
 Increase in demand of the luxury, commercial vehicles”(Palmer, 2017, p. 225).
Weaknesses
 “Cars recalled
 The consumers have bargaining power.
 The growth rate of the car industry”( Riasi & Pourmiri, 2015, pp. 915-926).
Opportunities
 “Introduction of fuel efficient vehicles.
 Strategic alliances.
 Changing life styles and customer groups.
 Market expansion”( Penna, & Geels ,2015, pp. 1029-1048).
Threats
 Intense competition.
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 Volatility in the prices of the fuels.
 Sluggish economy.
 High investments in the research and development ( Shaw, 2016).
Part 4
Recommendation
In order to improve the marketing performance of the car industry, the companies need to know
about the increasing demands of the people. They have to make much more research on the
growing needs of the customers. The car that people are liking at present may not be their
priorities later. So the company have to make sure that they are coping up with the needs to the
people. They should create such vehicles which consume much less petrol so that it does not
cause much air pollution. Less fuel consumption also reduces the costs. They need to modify the
existing products so that people do not band making use of those old products. The manager of
the company must also increase his knowledge about leadership skills, so that he can run his
company fruitfully. He must also maintain a homely relationship with the other members of the
company.
Part5.
Conclusion
The assignment has almost come to an end. While doing this assignment I have learnt a lot
regarding the management and marketing of car industries. Though the marketing and
management policies of all industries are same but the car industries have some special
characteristics. The dealership qualities of the car industry has some differences. The questions
that the examiner must ask the dealer for dealing the products have some differences. The car
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industry has to abide by all the rules that has been set by the government. It has to follow all the
product mixes to achieve success in the business.
Reference list
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Camagni, R. (2017). From city hierarchy to city network: reflections about an emerging
paradigm. In Seminal Studies in Regional and Urban Economics (pp. 183-202). Springer,
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Investigação em Antropologia, 19(3)), 593-603.
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Riasi, A., & Pourmiri, S. (2015). Effects of online marketing on Iranian ecotourism industry:
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