Car Industry Marketing and Ethical Communication Analysis

This essay analyzes the marketing and management strategies employed by the car industry, focusing on the promotion mix elements (Product, Price, Place, and Promotion) used to communicate with stakeholders. It evaluates how car companies encode and deliver their messages, considering the ethical and legal implications of their marketing practices, such as misleading advertisements and overpriced theft-protection packages. The role of the CEO in setting the marketing message and budget is also examined, highlighting the importance of ethical decision-making in ensuring successful and responsible marketing within the car industry. This document is available on Desklib, a platform offering a wealth of study resources including past papers and solved assignments.

Running head: MARKETING AND MANAGEMENT 1
Marketing and Management
Name of Author
Institution of Affiliation
Date of Submission

MARKETING AND MANAGEMENT 2
Marketing and Management
Companies in the car industry have a way of communicating about their products to
individuals, groups, organizations or customers to directly or indirectly ease exchanges by
informing and persuading them to accept their products (Song et al., 2018). The organization has
to communicate with its customers to promote their products. Their main aim of the promotion is
to attempt to persuade, inform or remind consumers and influence their opinion towards their
products.
To get their message out, the players in the car industry uses different sets of the
promotion mix. These elements include Product, Price, Place, and Promotion. Based on the
product, many companies in the car industry use their product in the marketing mix in order to
attract customers. When developing their product, they always try to come up with a brand that
solved a certain issue of their target market (Datta, Ailawadi & Van Heerde, 2017). They try to
develop brands that many customers will want to buy to meet their needs. For example,
according to the USA today news that was published in 2017, the Fiat Chrysler tried to recall its
pick-up trucks to improve on the issue of switching out of the park.
Based on price, the players in the car industry determine their product price based on the
operational and distribution costs incurred while availing the brand in the market. They set the
price of their brand within the means of their target market. Based on the place, they take their
brands to places where their target market is. Also, players in the car industry use promotion as a
means of selling their idea to customers. They tend to show and convince customers on how their
brand is of benefits. For example, according to (Southwest Florida Online Sunday Morning
news, 2015) Fuccillo Automobile promotes its brands by advertising to TV and magazines about
the merits of buying its brands.

MARKETING AND MANAGEMENT 3
The encoding of the message in the marketing of products in the car industry is done
using symbols, pictures, words and sounds via different forms of promotion. The encoded
message is delivered to customers through message channels such as newspapers, salespersons,
television, etc. When the audience views the message, he or she interprets the message and
understands what the source is trying to communicate.
The role of the CEO in setting a message to customers about their brands is crucial in
ensuring successful marketing. CEO setts the message by generating the required marketing
budget choosing the most effective channels that can reach the message to the target customers
or audience (Cherubini, Iasevoli &Michelini, 2015).
One of the ethical and legal complications of marketing in the car industry is misleading
claims in advisement. Some of the misleading claims may include the quality of the product and
the availability of service (Parsons, Maclaran & Chatzidakis, 2017). For example, as written by
Sunday Morning News, Fuccillo's advertisement about their cars is misleading to customers as
they claim they have the best cars besides being large in the dealership. Another ethical and legal
issue is the sale of theft- protection packages. For example, as per Central NY News, Billy
Fuccillo's auto dealers were sued and made to pay $1.6 as they sold cars at an overpriced and
illegal theft-protection package.

MARKETING AND MANAGEMENT 4
References
Cherubini, S., Iasevoli, G., & Michelini, L. (2015). Product-service systems in the electric car
industry: critical success factors in marketing. Journal of Cleaner Production, 97, 40-49.
Datta, H., Ailawadi, K. L., & Van Heerde, H. J. (2017). How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), 1-20.
Parsons, E., Maclaran, P., & Chatzidakis, A. (2017). Contemporary issues in marketing and
consumer behaviour. Routledge.
Song, R., Moon, S., Chen, H. A., & Houston, M. B. (2018). When marketing strategy meets
culture: the role of culture in product evaluations. Journal of the Academy of Marketing
Science, 46(3), 384-402.