Marketing Report: Analysis of Ford's Marketing Strategies and Models

This report provides an in-depth analysis of Ford's marketing strategies within the automobile industry. It begins by exploring the consumer decision-making process, outlining the stages customers go through when purchasing a car, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. The report then applies Porter's Five Forces model to assess Ford's competitive position, examining threats of new entry, threats of substitutes, bargaining power of customers and suppliers, and industry rivalry. The report then delves into the development and application of the GE matrix and BCG matrix to evaluate Ford's business units and investment strategies. Finally, it discusses Ford's segmentation, targeting, and positioning (STP) strategies, providing a comprehensive overview of the company's marketing approach. The report highlights the significance of these marketing concepts and their impact on Ford's success in the competitive automobile market.

Introduction to Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Consumer decision making process applicable to automobile sector.....................................3
2. Porter’s five forces model........................................................................................................4
3. Development of Matrix............................................................................................................6
a. The GE Matrix.....................................................................................................................6
b. The BCG Matrix..................................................................................................................8
4. Segmentation, targeting and positioning strategies of Ford....................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing can be defined as activities that organisation undertakes to manufacture,
promote and sale their products to customers. In order to succeed in these activities there are
different elements that requires considering by organisation. Some of the concepts that are
included while carrying out activities of marketing involve consumer decision-making,
competitive forces and target market of the company. This report aims at discussing different
concepts, theories and models of marketing in context of automobile industry. This report will
discuss about consumer decision making process, porter’s five forces model. Later this report
will discuss about GE matrix and BCG matrix, and further will discuss about STP strategies of
the organization.
MAIN BODY
1. Consumer decision making process applicable to automobile sector
Consumer decision-making process is a process that outlines journey of customers that
they go through while making purchase of a product. Consumers decision-making process is as
follows-
Recognition of Need- This is first step of the buying process in which customers feel like they
require car or automobile product to fulfill their requirement. In automobile sector companies has
to determine what customers need and when they need that. Companies when determine
customer requirement in such situation they communicate to customers by means of
advertisements and promotion (Stankevich, 2017). This means realization of customers that they
need certain product and then automobile companies connect their offer with need of customers.
Success of this step is mainly based on efficiency of the organization in targeting right customers
in target market.
Information Search- This is another step of consumer decision-making process. This step
involved search of the product by customers. This means that when customers get to know about
automobile product of their requirement they are likely to search for the product. This involves

making search through search engines and website of the company. Other than this, in
automobile sector customers can also search information through directing contacting dealers
and by test drive of vehicles. This is very important that automobile organizations provide all
required and adequate information to consumers when they make search for the product.
Adequate information helps them in making right decisions for the product.
Evaluation of Alternatives- This is another step in which customers will make search about
alternatives of a product. For example- customers are looking for a luxury can then they will
make search about different alternatives (Block and et.al., 2016). This will be followed by
evaluation of different alternatives in luxury cars and customers in this step of buying process
aims at identifying which alternatives is best to fulfill their requirements. This means that
customers can make evaluation in BMW, Audi, Mercedes and other luxury vehicles. Evaluation
of these models will help customers in analyzing what product offers desired characteristics,
price and value to customers.
Purchase Decision- This involves making purchase of the product that is best suitable for the
customers and fulfils their requirements. This decision of customers is based on information
gathered through different sources that are online and offline and pre-purchase trial of the
product and its uses. At this stage customers make purchase and complete transaction. Decisions
get affected by several factors that are information gathered and knowledge collected by
experience.
Post-purchase Evaluation- This involves making post-purchase evaluation and customers
express their experience of using the product. Post-purchase evaluation also expresses customer
satisfaction in which customers share their experience and what value customers have achieved
by their purchase (Kanagal, 2016). Post-purchase evaluation also has effect on product image
and quality of the product and also effect purchase decisions of other customers who are willing
to buy products of automobile customers. For the purpose of post-purchase evaluation it is
important that organization provide right and adequate customers services. In automobile
industry customer services are very important for the purpose of customer satisfaction.

2. Porter’s five forces model
Porter’s five forces is a model that is utilized to determine competitive position of a
organization in its industry. This model involves five forces that are-
Threats of new entry- This is concerned with threat for Ford in which company gets affected by
new entrants. New entrants are a competitive force because they are likely to increase
competition in industry and also increase competitors of Ford. Threats of new entrants gets
affected by barriers to entry, barriers to entry are factors that create difficulty for new firms to
enter into industry. Generally barriers to entry involves capital and investment required, skills
and knowledge required, economies of scale, regulatory barriers and in relation with Ford all
these barriers are there (Bruijl, 2018). On the basis of these, threat of new entry for Ford is low
because capital, skills required along with regulatory barriers are high.
Threats of substitute- Substitute refers to those products can be utilized in place of a given
product. Ford is a car manufacturer and any other product that can give value and fulfils needs
like car is a substitute for Ford. Power in this force of Ford gets affected by several factors and
among which number of substitutes and cost of switching are important factors. There are
several substitutes for Ford and cost of switching to those substitutes is also low. This means that
power of Ford in this force is low because number of substitutes is high.
Bargaining power of customers- Bargaining power of customers is power because of which
customers can reduce price that they are expected to pay for the products of Ford. This gets
affected by number of buyers and number of sellers. This means that high number of customers
and low number of sellers is a favorable situation. In case of bargaining power of customers in
context of Ford, bargaining power of customers is high and this lowers power of Ford. This is
because there are several sellers for similar products and also for substitutes of the product of
Ford.
Bargaining power of suppliers- Bargaining power of suppliers is concerned with power that
suppliers have and this power helps suppliers to increase price of the products of the company
(Steidle, 2016). This power gets affected by number of suppliers and product and material that
they are supplying to Ford. On the basis of these elements and factors power and position of Ford
is strong because there are several suppliers supplying requires resources and material to Ford.

Industry rivalry- Industry rivalry is concerned with competition within existing competitors in
an industry. Ford operates in automobile industry and this is why competition within
organizations operating in automobile industry. Because there are several firms operating in
automobile industry and this is why industry rivalry is very strong within automobile industry.
Competitors of Ford involves organizations like Honda Motors, Toyota Motors, Chevrolet, Fiat
and few other organisations.
This suggests that Ford’s competitive position is at moderate level because its position in
threat of entrants and suppliers is strong but its position in substitutes and buyers is low and
because of this it overall position in competitive forces is at moderate level.
3. Development of Matrix
a. The GE Matrix
It is important for automobile companies to identify their position in the market as it can
help them out in taking better strategies. By knowing their position in the market as compared to
competitors and knowing areas where it can invest can help it out in increasing sales and
accomplishing goals. With the help of GE matrix model it can identify or analyze business unit
portfolio that may facilitate it in investment decision (Peixouto, Nunes and Furtado, 2016).
As per the model it is found that Ford Company is located in the selective harvest box it also has
high strength because it provides qualitative automobile products and demand for these products
will be remain forever. But there are several global competitors in this industry but still Ford is
known as the top competitor globally and it is the reason it is known as have medium industry
attractiveness. For knowing effectiveness it is important to know customers satisfaction growth
opportunities, technology, margin and economic trends. Via external analysis it is found that it
can take advantages of expanding business in the market and it is one of the main opportunities
for this company. Threat that is found with market analysis is lower profit margin and increasing
overall cost due to rising fuel prices as well as increased political pressure regarding global
warming in US economy. It suggests this company that it should focus on investing in tools that
can help it out in reducing pollution and errors in manufacturing process.

Figure 1: GE matrix
Sources: (Position of Ford, 2018)

There are several markets where it can expand its business and has become successful such as:
Canada, US and Mexico. All these markets help this company out in increasing profit, sales and
increasing revenue. By attracting global customers to the great extent by making appropriate and
effective decision regarding investment, it has take opportunities of increasing customers’
retention rate and business development. Now it has known that it wants to grow and expand
business in China market because there are several market growth opportunities as China is
known as the biggest auto market all over the world. So, by analyzing and with the help of GE
Matrix it can take better investment decision and can protect itself against failure of business
expansion in China (Pivac and et.al., 2016). It can also be said that Ford is in highest competitive
market and it is well known that can take advantages of external opportunities.
b. The BCG Matrix
It is also like GE matrix that also helps company in knowing its position and also
knowing investment strategy. As per the BCG matrix of Ford it is found that variety of Cars
causes it high relative market share and high market growth. This product can provide it
competitive advantage (Mohajan, 2017). Electric car also plays a vital role as most desirable
market segment and it comes under low market growth and it creates problems for Ford in
performing well and in an effective manner.

This matrix involves four situations in which organization operates. These matrix provide
different situations on the basis of market share and market growth rate. Situations are as
follows-
Star- This is a position in which market growth rate and market share both are high. In this
situation organizations are market leaders, and generate significant cash flow and also are able to
maintain high share in market. Organizations performing successfully for continuous time and
are successfully diversified and ensure cash flow for long term. Such organizations often operate
in a fast growing industry.
Question Mark- This is another position in which market share of the company is low even
when market growth rate of the organization is high (Fadrian and Arifin, 2018). This is why such
organization have potential to become stars in future by increasing their market share. However,
in order to become stars these organizations require adopting right and suitable strategies through
which organizations can increase their market share.

Cash Cows- These are organizations that are having high market share but their market growth
rate is high. This means that organizations can generate significant cash flows in limited market
share. This often occurs when companies are in later stage of their industry and product cycle.
Stars can often become cash cows when scope for growth limits and organizations has managed
to reach significant market share.
Dogs- This is another situation in which organization’s market share and market growth rate both
is low. These originations and units of organization are not worth any further investment.
Position of Ford can be considered as Star because its market growth rates as well as
market share both are high (Mohajan, 2017). This is one of the most favorable positions and
organization requires adopting several suitable and effective strategies in order to remain at this
position.
4. Segmentation, targeting and positioning strategies of Ford
Segmentation- segmentation is a strategy and activity of marketing in which organisations
divide customers on the basis of their similar characteristics. This practice is aimed at giving
knowledgeto organisations about desired and requirements of different market segments. This
practice helps Ford Motors in determining which type of automobile products is required in
different customer segments. On the basis of this organisations can create product and determine
segment that the can serve on the basis of their capabilities (Liu and et.al., 2019). Segmentation
is concerned with dividing customers of Organisation in groups according to their characteristics.
Mainly customers are divided on the basis of psychographic, demographic, behavioural and
Geographic characteristics. Segmentation strategy adopted by Ford Motors includes a mix of
psychographic demographic and Geographic segmentation. Ford Motors works on fulfilling
needs of customers of different segments.
Targeting- targeting involves selecting and organising selecting a market segment that
organisation desire to serve and is capable to fulfil requirement of selected market segment.
Targeting strategy that has been adopted by Ford Motors is differentiated targeting strategy.
Differentiated targeting strategy allows organisation to target more than one market segment. In
this targeting strategy organisations create different product and services need and requirement
of different market segments (AL-hazmi, 2020). Ford Motors offer specific product to specified

market segment in order to ensure effective targeting and offering customers exactly what they
require rather than offering something that does not required by them and also does not interest
customers. Decisions of Ford Motors regarding marketing and promotional efforts are also based
on segment of customers that organisation targets. This helps Organisation in communicating to
right audience which is likely to convert in customer of organisation.
Positioning- positioning refers to activities and strategy that organisation undertakes to help
customers perceive organisation just the way organisation wants to be perceived by its
customers. There are several strategies that organisation can utilise for the purpose of Positioning
and strategy of positioning that has been used by Ford Motors is value based positioning strategy
to create emotional and inspirational appeal to its customers (Kiviti, 2018). This involves
positioning products of Ford Motors on the basis of perceived value by customers and this is why
this positioning strategy get affected by customers feedback and estimation of perceived value of
product by customers. In this positioning strategy price of the product of a company are also
influenced by perceived value of product by customers and different attributes of a product that
are aimed at providing specific value to customers.
CONCLUSION
On the basis of above discussion it can be concluded that customer consumer decision
making process has very important effect on success of Organisation in attracting right
customers for organisational offerings. This report discussed the different steps included in a
consumer decision making process. Further report discussed about competitive forces of Ford
motor and discuss one suggest that Ford Motors operate at in a moderately favourable
competitive environment. This report also involved in developing g e Matrix and BCG matrix for
Ford Motors and this was that position of Ford Motors is strong in its market. Further report
discussed segmentation, targeting and Positioning of Ford Motors. Company adopts positioning
strategy that is value based positioning with differentiated targeting strategy.

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