Principles of Marketing: Pricing Strategies for the Ford Motor Company

This report examines the pricing strategies employed by the Ford Motor Company. It delves into the auto spare parts pricing strategy, highlighting how Ford ensures affordability and availability of spare parts to encourage vehicle purchases, particularly for commercial vehicles. The report further analyzes Ford's market-oriented pricing strategies, which focus on aligning prices with market conditions, competition, and consumer demand, especially for trucks and sedans. The premium pricing strategy is also discussed, explaining how Ford positions its luxury car models as high-quality products to justify higher prices and create a perception of superior value. Additionally, the report explores Ford's leasing and renting strategy, designed to cater to customers who desire luxury vehicles but may not be able to afford them outright, ultimately driving sales through flexible payment options and potential future purchases.

Running head: PRINCIPLES OF MARKETING BUSINESS 1
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PRINCIPLES OF MARKETING BUSINESS 2
The ford company
Pricing strategies for the Ford Motor. Ford Motor concentrates on assembling of two types of
vehicles; the luxury cars and commercial cars or rather automobile cars. This, therefore, calls for
different pricing strategies to be employed so as to be able to a high number of sales compared to
their competitors Audi and BMW car model. (Ferguson, 2017) The Ford motor company,
therefore, has employed several pricing strategies to achieve the maximum sales and profits. The
following are the strategies;
1. Auto spare part pricing strategy
The ford company as stated above, ventures in assembling both luxury cars as well as
commercial and automobile cars. In most cases, the commercial vehicles require often
maintenance due to tear and wear of some parts. This makes them, during choice making on the
car model to purchase for their commercial activities, settle for a car that has cheap and readily
available spare part. With this information and knowledge, the ford car company has employed
the auto spare marketing strategy as a way of encouraging potential customers to buy their cars
with an assurance that in case of spare parts need, they can easily and affordably acquire them.
(automobile consulting group, 2015)
2. Market-oriented pricing strategies
One of the main goals and motivating objectives of the ford car company is setting up
product prices that tally with the market conditions after considering the current market
competition, demand and consumers point of view. The ford company employs this strategy
more so to the trucks and sedans that it produces.

PRINCIPLES OF MARKETING BUSINESS 3
3. Premium pricing strategy
This is a strategy that depends on the price point of a product and psychological image of the
product to the users or customers. The ford company uses the premium strategy as a way of
establishing its product image to be a high-quality product in the consumers’ minds. They use
this product to create a picture that their car models are of high quality than their competitor’s
and therefore the prices too should be high. Majorly this strategy is applied to their luxury car
models. This creates some positive perceptions of the willing buyer that the car must be of higher
value than competitors. (Woodruff, 2018)
4. Leasing or renting luxury cars
One of the objectives of the ford company is to satisfy its customers’ demands for comfort
and also reach out to the luxurious demands several groups of people that are less or relatively
wealthy class and cannot afford expensive luxurious cars. This, therefore, saw it as the need on a
way in which the company can satisfy the demands of those who cannot afford these cars.
Leasing and renting them cars is a perfect pricing strategy and move that makes them end up
selling a good number of their cars. One can drive their ford dream car by leasing the car for a
given period of time depending on the agreed terms. This makes them to later purchase them due
to the level of comfort they achieve. Leasing means paying for that car only as much as you use
it, although the ownership remains with the leaser. At the end of the agreement, the lease can
fully own the car and thus a good pricing strategy. (Laja, 2017)

PRINCIPLES OF MARKETING BUSINESS 4
References
automobile consulting group. (2015). Auto spare parts pricing strategy. auto analysis, 3.
Ferguson, E. (2017). Ford Motor Company’s Marketing Mix (4Ps) Analysis. Business management, 2, 2-7.
Laja, P. (2017). 4 Fundamental Product Pricing Strategies and Techniques. pricing strategies, 3.
Woodruff, J. (2018, March 28). pricing strategy. Retrieved from small business. business planning:
http://smallbusiness.chron.com/premium-pricing-strategy-1107.html