Arden University MKT4001: Principles of Marketing Report - VW Group

This report provides a comprehensive analysis of marketing principles, using Volkswagen AG (Volkswagen Group) as a case study. The report begins by outlining the marketing planning process, emphasizing the role of marketing orientation and its significance for businesses, and then explores the importance of environmental audits using a PESTEL analysis to assess the external factors influencing the electric vehicle (EV) market. The report then delves into the marketing mix, highlighting its components and the role of the 7Ps in crafting effective marketing strategies. Furthermore, the report distinguishes between B2B and B2C market segmentation, targeting, and positioning strategies. The report also evaluates segmentation and targeting strategies applied by Volkswagen across its various vehicle models, considering different market segments and approaches. Overall, the report offers a detailed examination of marketing concepts and their application in a real-world business context, providing valuable insights into strategic marketing practices.

Principle of marketing
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INTRODUCTION
Marketing is the interest, set of establishments, and procedures for creating, conversing,
handing over, and replacing contributions which have cost for clients, customers, companions,
and the public at massive. Marketing indicates to sports a corporation assumes to endorse the
shopping for or promoting of a service or product. Marketing consists of promotion and
marketing, selling, and bringing merchandise to purchasers or other agencies. Some advertising
and selling is completed by using associates on behalf of an enterprise. In order to complete this
project, Volkswagen AG is taken in to consideration which is known as the Volkswagen Group
(Морозевич and Голомазова, 2019). It is a German international automotive mechanized
corporation headquartered in Wolfsburg, Lower Saxony, Germany. The assessment will explain
about marketing environment and planning process. Moreover, it will discuss about
segmentation, targeting & positioning and marketing mix analysis.
Section 1
(a) Marketing planning process and the role/importance of adopting a marketing orientation
Marketing plan refers to the method made via an organisation to discover the property
which can be to be had and utilising the ones constrained assets for undertaking the goals and
targets related to advertising and marketing of the agency and its products. Marketing plan
allows an employer in determination of the goals which form the premise of destiny organisation
sales and growth. The cause of advertising and marketing and advertising plan prepared with the
useful resource of the control of EV is to decide the earnings channel, strategies of sales
advertising and marketing and structures which may be to be used for creating consciousness
about the products which can be being furnished consisting of on line and offline mediums
(Chen and et. al., 2019). There are different components of marketing planning processes such as
market investigate, target marketplace, positioning, competitive analysis, market plan, budget
and matrices etc. which can be adopt and consider by the management of EV in order to market
their product.
The international electric powered vehicle market extent is planned to expand from 4,093
thousand devices in 2021 to 34,756 thousand gadgets via 2030, at a CAGR of 26.Eight%.
Factors which consist of growing call for low emission commuting and governments supporting
lengthy variety, 0 emission cars via subsidies & tax refunds have forced the manufacturers to
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provide electric powered vehicles across the arena. This has triggered a developing call for
electric powered cars inside the market. Countries round the arena have installation objectives
for emission discounts in keeping with their private capability. Increasing investments by way of
way of governments across the world to make bigger EV charging stations and Hydrogen
fuelling stations alongside detail incentives supplied to customers will create possibilities for
OEMs to growth their sales movement and geological existence (Garrigou and et. Al., 2020).
The marketplace in Asia Pacific is projected to experience normal growth manner to the
excessive call for decrease charge-green and espresso-emission cars.
With advertising and marketing direction, a industrial organisation rotates its tactical
selections across the needs and wants of the goal market, at the side of potential customers. A
enterprise this is advertising and marketing-oriented has the determination to charging
consumers and the clients’ desires. In truth, it may even make a contribution to the
transformation of a employer’s enterprise way of life. This advertising idea includes 3 vital steps
in being patron-targeted. First, the requirements and desires of the clients are investigated and
recognized. Then, the study outputs are considered by using the marketers and new merchandise
are fashioned primarily supported mostly on the purchaser requirements. Finally, purchaser
pleasure is aimed after public cognizance and advent of the product is made. An advertising and
marketing-oriented commercial enterprise is characterised via way of several attributes. The
corporation makes correct and full-size use of advertising studies, develops new and huge
merchandise, highlights product rate and blessings, makes use of product innovation strategies,
and designs supplementary offerings or customer blessings which include transport, set up,
guarantee, and credit score accessibility. All these are geared toward purchaser benefit.
Marketing plan can be of critical importance for the management of EV in determining
clean sales targets shaped on the basis of practical market research and having a clarity of idea.
Having a clean objective allows in better performance and operational consequences. It can be
argued that this decade has witnessed one in all of the most critical waves in technological
innovation and improvement which has additionally changed the face and dynamics of marketing
(Zibani and Kalusopa, 2019). Tools and mediums of advertising and marketing have developed
with a wide number of options to be had for any industrial employer commercial enterprise
corporation to marketplace its products and services and create brand attention. Marketing plan is
an crucial step in self-control of the channels and equipment which may be to be utilized by the
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corporation for its destiny advertising and marketing and marketing campaigns because of the
truth that a particular channel is probably extra powerful than others for the organization. For
instance, online advertisement is extra effective in context of EV.
(b) An environmental audit by using PESTEL Analysis for EV market
PESTLE Analysis of Volkswagen analyses the brand on its enterprise business enterprise
procedures. Volkswagen PESTLE Analysis inspects the different outdoor factors like political,
financial, social, technological (PEST) which influences its industrial enterprise collectively with
jail & ecological elements.
Political factor- The UK is a chief marketplace in Europe and Volkswagen is a German
emblem. It technique imports and exports taxes after the go out of Britain from the EU.
However, the Brexit deal ensures free change most of the UK and Europe. But the clerical and
documentation price may growth the fee of the motors (Varadarajan, 2020). The new UK
authorities’ understanding to give up gives of diesel and oil automobiles by way of 2040. "Street
to Zero" has been completed through the United Kingdom Government as some other interest.
Economical factor- European Union's greatest automaker, Volkswagen has considered
financial issues rotating around them due to the disturbance made with the aid of using Brexit
prompting excessive swelling and due to the truth that that has came about the spending via the
shoppers has fundamentally reduced, at final coming approximately right into a decrease
outstanding for logo spanking new cars.
Social factor- Social powers assuming a top notch method in expansion in this century in
all endeavours of commercial enterprise corporation enterprise. Social patterns are pondered with
the useful resource of change in human beings' propensities and dispositions, likewise inspired
thru socio-social elements of customers. Vehicle organization includes social pattern adjustments
in the vehicle sharing levels, mainly amongst twenty to thirty 12 months olds. Volkswagen's
hobby in car sharing and enjoy hailing projects has superior which gives a whole lot less
expensive and useful transportation.
Technology factor- Innovation has constantly supposed a focal device inside the
automobile commercial enterprise corporation and Volkswagen has had modernization
supposing a focal assignment. The greatest check that the modernization of Volkswagen is
meeting is definitely the development in driving cars (Berkowitz, 2021). The maximum
contemporary modernization being applied in the vehicle agency is the character-made
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brainpower, territory sensors, mapping cameras, radar modernization, and huge facts assessment.
Change of city versatility is wanted to be engaged thru independence from everybody else riding
automobiles because of the reality the accentuation will want to "portability as an assist".
Legal factor- Legal elements like protection, business operations, and difficult work
prison guidelines could affect Volkswagen. Since the business enterprise operates its business in
approximately 160 international locations (Kemper, Hall and Ballantine, 2019). The legal
guidelines and hints vary from nation to nation. Therefore, the automobile commercial enterprise
corporation need to study the hints of various governments earlier than introducing its
merchandise there. Volkswagen deliberately tricked the carbon emission take a look at of diesel
engine motors.
Environmental factor- The primary aim at the back of the manufacturing of hybrid
vehicles, hydrogen fuel batteries, and electric powered cars is to build a technology that is
environmentally sustainable within the long time. It might help the corporation to satisfy the
dreams of environmentally conscious customers and boom the sale. It’s genuine each for the
company and the surroundings. The court docket instances, environmental policies, pandemic,
converting inclinations, and monetary recession is the number one challenges. Volkswagen need
to deal with these issues with the useful resource of changing its strategies hence.
(c) Marketing mix analysis and importance of strong marketing mix
The advertising and advertising combination is the set of controllable, tactical advertising
and marketing and advertising and marketing tools that a company uses to offer a favoured
reaction from its goal marketplace. It consists of everything that a enterprise company can do to
persuade call for its product. It is also a device to assist advertising and marketing making plans
and execution. Marketing blend refers to the aggregate of things that shape how a business gives
cost to its clients. These factors are known as the 7Ps: Product, Price, Promotion, Place, People,
Process, and Physical proof. The advertising blend is a widespread device for growing the proper
promotion method and its execution through efficient techniques. The evaluation of the roles of
their manufactured goods, advertising and marketing, charge, and location performs an important
factor for their widely wide-spread advertising technique (Trintini and et. al., 2021). The blend
enables in figuring out which advertising and marketing technique is proper to their organisation.
It is step one in advance than they even create their organisation or advertising plan. The reason
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is that their advertising and marketing mix choices also have an impact to their positioning,
concentrated on, and segmentation choices.
Section 2
(a) Outline the distinctions among segmentation of the B2B and B2C markets
Many a success corporations the world over study segmentation, focused on and
positioning (STP) as part of their advertising techniques. Volkswagen (VW), a enterprise agency
that makes automobiles is one of the successful organizations that practice STP.
Segmentation-Market segmentation is the method of dividing the heterogeneous
marketplace for a product into several sub-markets or segments, every of which tends to show
homogeneity in all essential elements. Segmentation is the manner of dividing a market into
discrete companies of clients based totally on factors such as wishes or characteristics,
behaviour, advertising and advertising and marketing mixes, or who might require distinct
products (Santiago Vaquerizo, 2020). A business enterprise’s marketplace may be partitioned or
divided based totally on unique bases. Some of the bases usually achieved in segmenting a
marketplace are demographic, behavioural, geographic, and psychographic tendencies.
Volswagen generating particular varieties of automobiles for wonderful desires beneath
their subsidiaries. Every model of the Volkswagen virtually segmented with strength of mind to
unique shape of purchaser. They're producing small motors like polo, golfing and well-known
betetle to a extraordinary deal highly-priced one like Lamborghini, Bentley and Bhugatti.
Volkswagen has it’s very personal meeting flora in most of the international locations and
typically used to serve the dependable the united states. Volkswagen made some of it’s motors
for only legitimate regions which includes polo and golfing. Beetle is the oldest manufacturing
automobile within the worldwide and it’s though producing in some flowers as of it’s
recognition.
(b) Discuss targeting for either B2B or B2C market
Targeting- It is the strategies of comparing how attractive market segments are and
choosing the section(s) to go into. It includes making selections thinking of to be had and vital
sources. Firms have a number of options regarding the focused on approach to apply (Gupta and
et. al., 2019). Unlike most of the car agencies in the promote it didn’t pass for the single phase
technique and choose the multi section technique.
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Single phase method: Focused on a unmarried phase with a merchandise or employer idea.
Highly cheap but excessive threat. Example is Ferrari. Whilst the recession started the sales may
be exaggerated.
Multi section technique: focused on a special idea or manufactured goods at each of a
number of segments and increase a marketing mix method for every of the chosen segments.
This approach can be vulnerable to over-dedicated in a unmarried place, it may be extremely aid
disturbing.
In huge most of the motors are dedicated to clients among 18-49 yrs antique. Maximum of
the cars provided thru Volkswagen are categorizes as more low-priced and green for any person
and for a employer hobby (Mortazavi and et. Al., 2019). In accordance to different
manufacturers Volkswagen moreover separates cars by the use of gas intake of petrol and diesel.
Volkswagen also embattled the immoderate prevent clients with their merchandise such vehicles
from Audi, Lamborghini.
(c) Explain the term positioning and suggest how an electric vehicle would be positioned in
consumer or business market
Positioning- Market positioning is the method of setting up the identification or image of a
manufactured goods or brand in order that it's miles perceived in a certain way by means of
clients. With regard to positioning, Volkswagen takes pride in being a leader in automation place
and to this quantity uses the tagline. Volkswagen retaining its patron values and employed a few
form of rate transport packages. Volkswagen produces his automobiles everywhere in the global:
Brazil, China, India, Germany, Slovakia, North America, Hungary, Japan, Russia, Nigeria,
Spain, Argentina, Portugal, Poland, Mexico, and, South Africa (Морозевич and Голомазова,
2019). All Volkswagen models are found in each nation with high require for vehicles, knowing
after great marketplace investigation where have to the agency role a version more than the other
one.
Section 3
Explain 7Ps of marketing mix
Marketing mix Volkswagen (Electric/ Hybrid car)
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Product The manufactured goods approach and mix in Volkswagen marketing
approach can be defined as follows: Volkswagen gives severa motors
in taken into consideration one of kind global locations. Its top
promoting and maximum famous fashions encompass Volkswagen
Polo, Volkswagen Passat, Volkswagen Jetta, Volkswagen Sirocco,
Volkswagen Tiguan, Volkswagen Touran, Phaeton, Eos, and Beetle.
All those vehicles are the product approach in the advertising and
advertising and advertising combination of Volkswagen. Depending at
the quantity of localization, talents, consolation, length, seating
functionality, options, mechanism configurations and power several
first rate trims and versions are supplied (Chen and et. Al., 2019). The
several body types Volkswagen gives together with hatchback,
property, sedan, coupe, convertible, SUV, crossover, coupe and MPV.
It moreover makes and sells Hybrid, Dual gasoline and Electric cars.
Volkswagen automobiles, Polo and Gold moreover obtained the
distinguished European Car of the Year award that is 50 years antique.
Price Volkswagen is major worldwide vehicle producer. With 34500 vehicles
presented each day, Volkswagen expenditures its merchandise
competitively for certain developing international places and somewhat
greater luxuriously for economies in which it's far visible as a logo
which can command a higher pinnacle price. Volkswagen banks on its
better first-class as a determine for its barely steeply-priced fees.
Psychological pricing is one of the strategies used by Volkswagen to in
addition its pricing targets. Reduction in patron remorse via perceived
and real extreme tremendous facilitates them excuse the extra money
they pay for Volkswagen vehicles. Spares too are priced at the
luxurious feature (Garrigou and et. al., 2020). Hence, he pricing method
within the advertising and marketing and advertising combination of
Volkswagen is typically based on opposition, segment, demand,
functions supplied in the car and the geography being provided.
Place Volkswagen vehicles are obtainable nearly anywhere at some degree
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within the sector. Having collecting traces and industrialized centers in
numerous additives of the sector. These consists of Germany, Mexico,
USA, China, India, Indonesia, Russia, Czeck Republic, Portugal, Spain,
South Africa, Poland, Slovakia. After recognizing Indonesia as a
pinnacle vacation spot for car and van earnings, Volkswagen set up a
present day-day plant for $a hundred and 40 million in the course of the
production of large convey cars and multivans. As a protracted manner
as India is worried Volkswagen to start the assembly of precise export
modules of engines and additionally nearby engines to boom
localizations levels to ninety% from the cutting-edge 70%. In its
present day-day confront into Algeria, Volkswagen furthermore
discharged a present day manufacture plant there to assist increase
localizations degrees and create vehicles loads much less costly (Zibani
and Kalusopa, 2019). Volkswagen possess a sincerely global
attendance and has its allocation properly laid it out for the global
places it functions in.
Promotion Volkswagen has commonly been powerful with its ad campaign. As
part of its advertising and advertising combination selling method,
Volkswagen has utilised 360 making to encourage now not only the
parent industrial business enterprise, but all its motors in my opinion.
With higher rank of tensile power applied in its metal, superior
intensity and shine of paint, higher craftsmanship of its cabins and
better machine tiers has assisted Volkswagen pressure ‘higher amazing’
as a attribute of all of its vehicle and most of its promotions in
developing international locations marketed the identical. Abuse
incredible gather and sturdy production collectively with durability
come to be promoted in India and helped it gain essential sale numbers.
Violent promotional sports the use of social media networks and online
systems which embody Twitter, Facebook, You Tube and Instagram
assist Volkswagen live on the top of the promotional sport as
competition are more and more heading into online vicinity
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(Varadarajan, 2020). Product separation is one advertising tactic used
in the innovative for promotional actions of Volkswagen and protection
and German gather fantastic are tendencies utilised most often in
campaigns of its motors. Hence, this sums up the whole Volkswagen
advertising and advertising mixture.
People It refers to personnel, shops, providers, vendors and clients and so on.
In Volkswagen, employees help in dealing with and preserving
employer sports and operation in time period of carrying out set
industrial employer goals (Berkowitz, 2021). Customers moreover play
an important function in time period of purchasing merchandise and
make development in agency’s success and improving market
proportion.
Process It has a web delivery approach, in which orders are acquired inside the
pc gadget and based totally on those orders, the applicable product
from the stock is sent to the transport company agency. This is actively
concerned in reading market opportunities that allows you to recognize
customer wishes. It also develops knowledge regarding client desires
thru comments gathered at maintain, its helpline or social media pages.
Physical evidence It consider design, structure, physical tangibility and many more
(Kemper, Hall and Ballantine, 2019). It has an internet web site this is
character-friendly and allows clients to view its products in high high-
quality pics taken from numerous angles.
CONCLUSION
This has been summarised from the above stated records that advertising is an powerful
tools and method of buying and promoting commodities. By developing a advertising and
marketing plan, the control of a firm can make powerful planning to song the needs and wishes
of customers and imparting commodities as regular with their desires and needs. By using
powerful advertising and marketing and advertising and marketing strategies the organization
can operate its business enterprise in appropriate way.
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REFERENCES
Books & Journals
Online
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