Marketing Principles Report: Volkswagen's Strategies and Analysis

This report provides a detailed analysis of Volkswagen's marketing principles. It begins by outlining the different elements of the marketing process, including situational analysis, marketing objectives, and marketing strategy. The report then evaluates the costs and benefits of a marketing orientation for Volkswagen. It further examines the micro and macro environmental factors influencing Volkswagen's marketing decisions, proposes segmentation criteria for different markets, and details targeting strategies for specific products. The report also discusses how buyer behavior affects marketing activities and explores new positioning strategies. It analyzes how products are developed to sustain competitive advantage, focusing on distribution, pricing, and promotional activities. The report concludes with an evaluation of the extended marketing mix and its impact on Volkswagen's overall marketing goals. The assignment covers topics such as marketing mix, environmental analysis, segmentation, targeting, and buyer behavior, providing a comprehensive overview of Volkswagen's marketing approaches and strategies.

Marketing principle

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different elements of the marketing process....................................................................1
1.2 Benefits and costs of a marketing orientation for Volkswagen........................................3
TASK 2............................................................................................................................................3
2.1 Micro and Macro environmental factors influence marketing decisions of Volkswagen3
2.2 Propose segmentation criteria to be used for products in different markets....................5
2.3 Targeting strategy for a selected product/service.............................................................6
2.4 Buyer behavior affects marketing activities in various buying situations........................7
2.5 New positioning for as elected product and service.........................................................7
TASK 3............................................................................................................................................8
3.1 Products develop to sustain competitive advantage.........................................................8
3.2 Distribution to provide customer convenience.................................................................8
3.3 Prices are set to reflect an HSBC objectives and market conditions..............................10
3.4 Promotional activity integrated to achieve marketing goals and objectives..................10
3. 5 Evaluate the additional elements of the extended marketing mix ................................11
TASK 4..........................................................................................................................................11
COVERED IN PPT..............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing principle is widely used concept which is used for promotions and for
planning of an effective strategy to manage growth and development. Most of the organization
implements the use of marketing principle to either increase the performance of product or
launch a new product in market.
Volkswagen is a leading organization to enhance the business all over the world.
Volkswagen is based on the manufacturing auto-mobile company to provide variety of product
and services in marketplace.
This report will discuss about the various element which are applicable in the marketing
process. It will evaluate the cost of marketing and their benefits of company. Micro and Macro
environment are helpful in the organisation to take marketing. Further, this assignment will
describe target strategy and also determine the behaviour of buyer that affected buying
conditions and situations (Love, Staton and Rotman, 2016). This report will discuss about the
various services and products for growth and development.
TASK 1
1.1 Different elements of the marketing process
The marketing process determines the opportunity of market and select targets market to
develop an effective marketing mix approaches. This process helps the firm to easily understand
need and requirement of business. According to Volkswagen, managing various marketing
efforts can be applied for managing effectiveness business operations and functions. This process
will target customer to promote the product and launch new product according to the demand of
customers. There are different elements helpful in growth and development.
Situational Analysis- Volkswagen is a leading organization which is expanding their
business across the world. They also launch a new product in market and they are using an
effective planning for growth and development. Situational analysis is main foundation of
marketing plans and Volkswagen company analyse the weakness, strength, threat and
opportunities with the help of SWOT analysis (DeVincenzo, and Scammon, 2015). Situational
analyse is determine the conditions and situations of business with the help of Porter five forces,
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pestle analysis and stakeholder. Pestle analysis determine the internal and external factors that
affect the business operations and functions.
Marketing objectives- The marketing objective of Volkswagen to expand their business
all over the world. They mainly focus on their productivity and profitability. According to the
requirement, they have change their strategy and approaches which helps for increasing the
growth and development. Another organization such as Toyota. This is also fast growing
company to provide the best quality of product and services in marketplace. Marketing objective
is initial stage to plan real goals and objective of Volkswagen organization. The cites encourages
customer to buy the product by promoting quality of service and product in marketplace. It is
very important because it will show the benefits of Volkswagen in market.
Marketing strategy- Marketing strategy is a long term plan for achieving goals and
objectives. Volkswagen plans an effective marketing strategy in three steps such as
segmentation, targeting and positioning. These are important factors that helps in increasing
productivity and profitability in marketplace. Segmentation is essential for employee to analyse
life stage, benefits, behaviour, values, demographics, etc. Targeting is important as it allows
Volkswagen to classify the market value and segments. Positioning helps in developing product
and comparing same product in another company.
Marketing mix- Volkswagen organization is implementing the marketing mix to manage
the business process in proper manner (Carins, Rundle-Thiele and Fidock, 2016). It is
combination of variable that control the Volkswagen company to achieve their marketing goals
and objectives.
Product-A product is build and produced to provide the best quality of services to their
customer. Volkswagen organization mainly concern about the targeting customer to provide high
quality of services.
Place- product distribution is essential for organization to provide the product and services
nearby places. The effective distribution and positioning is directly speaking about the
marketplace.
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Price- In Volkswagen, price is essential component of marketing mix which determine the profit
and survival of organization. The entire marketing of Volkswagen affects the demand and sales
of product.
Promotions- Promotion is helps for organization to sale the product and services in marketplace.
Volkswagen company also promote their automobile parts in global marketplace.
Control and implementation- Volkswagen firm implements an effective strategic to
determine the result of marketing planning. It also improves management and their planning
process. Strategic control is last stage of business process. In Volkswagen, the manager has
responsibility to manage the business activities in proper ways.
1.2 Benefits and costs of a marketing orientation for Volkswagen
Volkswagen company develops product according to their product development
approaches or marketing oriented approach. Marketing orientation approach is the best concept
which is helpful for taking right decision. The organization take decision d on the basis of need
and requirement of customer. Marketing orientation approach is beneficial for Volkswagen and
their cost. There are some benefits discuss in followings:
Customer centric- This is essential process which helps for Volkswagen to give more
priority to their client. Volkswagen also use this process to provide the best quality product and
service in marketplace.
Addressing demand- Volkswagen firm is the fastest growing organization therefore the
firm focuses on maintaining quality of their services customer to serve customer satisfaction.
Nowadays, customer wants a high quality of product so that it is required for organization to
maintain their services according to their demand. Volkswagen to produce highly efficient
product in marketplace.
Reasonably competitive advantage- As Volkswagen develops the efficient services and
product according to the demand and need of customer. In this way, the competition level
increases in marketplace.
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Making customer benefits- It is important process that helps Volkswagen to create buyer
value which assist the management in increasing loyalty of customer. Volkswagen firm provide
many benefits to their customer regarding offer, discount on different automotive, etc. In this
way, more and more customers attract towards their services (Abidin, Roslin and Kamaluddin,
2018).
TASK 2
2.1 Micro and Macro environmental factors influence marketing decisions of Volkswagen
Volkswagen running operations and functions therefore, business environment can be
classified into two ways: Micro environment and Macro environment which influence decision-
making of Volkswagen.
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Illustration 1: Macro and Micro environment
(Source: Business environment, 2017)

Micro environmental factor- This environmental factor is very important for business
process and they directly impact on the success and their functions of Volkswagen. Micro
environmental factors are employees, customers, competitors, suppliers, shareholders, etc. This
factor determines the capabilities and resources of Volkswagen.
Customer-Volkswagen provide the facilities and services to their Customer. It is essential
for managing all the services in marketplace, most of the customer attract towards the product
and services.
Employee- Volkswagen firm has efficient, skilled employee motivate their staff member
towards the goals and achievement. Employee of Volkswagen plays important role in the
company to provide the high quality product and services in marketplace.
Supplier- Supplier is part for organization to supply the products and services in
marketplace. Volkswagen maintain their supply chain and they have capabilities to increase the
productivity and profitability.
Media- Volkswagen uses different tool and platform for promoting their product and
services in marketplace. Media is the best medium to promote the product in global marketplace.
Competitors- Volkswagen has many competitors in marketplace and they must be aware
about the business activities and competitors in market. Thus, firm implements the use of modern
techniques to identify the trading business requirement and also to understand the need and
requirement of customers.
Macro environmental Factor- This factor is not directly related to the organization but it
is an essential of organization because it is directly impact on the Volkswagen. Macro
environment factor determine opportunities and threats of the organizations. These factors are
economic, political, cultural, natural, technological, etc.
Demographics Factor- This factor depends on the customer demographic division which
is based on gender, location, address, occupation, etc. (Munro, 2017). It is important factor to
determine the detail of customers.
Natural environment- It consists of government interventions, pollution and other
natural resources that is necessary for organizations.
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Political environment- This factor is important that affect the organization and their
policies such as government laws, rules and regulations.
Economic environment- Economic environment is important for organization and
country because it will affect the entire business process. Economic Environment covers the
buyer, who are buying the product in marketplace. Volkswagen organization launch an effective
product in marketplace.
Cultural Environment-Cultural environmental factor impact on the organization because
many people beliefs in traditions, culture, etc. It consists of the values and behaviour of peoples.
2.2 Propose segmentation criteria to be used for products in different markets
Volkswagen organization launch a new product such as Volkswagen Polo car in India.
Volkswagen company is also maintaining the services in marketplace. Segmentation strategy is
helps in existing product because this organization is adding new features in the existing product
and then launch in marketplace. In this way, segmentation approaches are helpful for increasing
the productivity and profitability. Volkswagen develops and offers wide range of auto mobile
product in market according to the need and requirement of customer. Segmentation strategies is
divided into different ways:
Geographic Variable- In Volkswagen, Segmentation of market on the basis of size,
atmosphere, population and their region or geographical areas. Volkswagen will target India due
to large number of opportunities for growth.
Demographic Variable- In Volkswagen, segmentation of marker is based on sexual, race,
age, education, income, sex, etc. Volkswagen will target middle class people for polo car.
Psychographic variable- This variable is classified on the basis of customer, feelings,
interest, lifestyle, personality, social status, etc. the company will attract people to buy polo car
to increase their social status in society. (Ryu and Lee, 2017).
2.3 Targeting strategy for a selected product/service
Generally, Volkswagen has launched Polo car and is targeting country like India. This
organization is planning target strategy to provide low cost car and high average car to their
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customer according to the demand. In this way they have fulfilled the need of customer. For this
organisation has developed several marketing strategies to attract people. They can target middle
class people by providing car on loan or giving various benefits. The middle class people is
targeted because they want a car that is of low cost and better average. Moreover, India is a
country where large number of people belongs to middle class families. The organization follows
various target strategies such as selected marketing and concentration marketing.
Selecting marketing strategy chose because they mainly concern about the targeting
customer and group of people. There is different type of targeting strategy use the Volkswagen
for development.
Mass marketing strategy- Mass strategy is basically ignored the segmentation and they
generate single offer to the customer. The main aim of mass strategy to reach the audience to
explore the product in marketplace. Volkswagen uses mass strategy for development and growth.
Differentiated Marketing strategy - Volkswagen offering different market segments and
targets. This organization provides the unique benefits to different segments. The objective of
company to promote their VW car in marketplace.
Volkswagen uses target strategy for providing the best quality of services to their customer.
Recession is major cause of companies because it affects the business process. Volkswagen
conduct their marketing to target groups. Many organizations use mass marketing strategy and
they provide the best quality of good and services in entire market. This strategy is helpful sell
the product at reasonable price. (East and Ang, 2017).
2.4 Buyer behaviour affects marketing activities in various buying situations
The organizational marketing operations totally depend on buying behaviour of customer.
Many customers are highly involved with company's product and services. There are four type
of buying behaviour discuss in given below:
Complex buying behaviour- This is an effective behaviour of customer when they are
highly involved and spends lot of time in researching before buying the product and services.
Customer spends lot of time on company website and they will ask expertise people and then buy
product in marketplace. For example- car and gold.
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Variety seeking behaviour- The customer have many options available to them in
market. Their buying behaviour depends on number of varieties available for specific product.
Thus, they analyse them on basis of price, quality, etc. and then decision to buy it. For example-
In global marketplace, there are different type of perfume available in market and having many
options to choose the best quality of product.
Habitual buying behaviour- Customer not showing the interest towards the product and
services. These products are very essential for day to day life such as bread, milk, etc.
Dissonance buying behaviour- Customers are highly involved towards market because
there are many low products available in marketplace.
2.5 New positioning for as elected product and service
Volkswagen organization always give the priority to product and positioning because it is
very important to generate enterprises loyalty. Positioning is main part of organization in which
Volkswagen use marketing technique to provide the best quality of product and services
(Zarkada-Fraser and Fraser, 2015).
There is different type of positions strategy that can be applied by Volkswagen to promote Polo
car that is as follows: -
1. Product characteristics provide benefits to customer- This is important positioning
strategy which is helpful for providing the best quality of product in marketplace.
Volkswagen organization is promoting the durability, reliability and economy of polo
car. This organization is promoting their services and product in marketplace.
2. Pricing as a positioning strategy- This strategy is also known as quality approach
because it is based on the product quality and services. Volkswagen organization use the
quality approach strategy to provide high quality of services to their customer.
New position and market segment are interrelated to each other because Volkswagen establish
product positioning according to the segmentation. It helpful for creating messages and sending
the messages to customers with the help of different medium such as television, radio, magazine,
etc.
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Product positioning mainly depend on the fast services, high quality, creative ideas technical
expert, low price, support, etc. these are important key elements to increase brand value in
marketplace.
TASK 3
3.1 Products develop to sustain competitive advantage
Nowadays, most of the companies are using different approaches and techniques to
achieve their competitive advantages in marketplace. HSBC is a leading bank that is competing
with banks such as national Australian bank, Citigroup, Deutsche Bank, etc. These are strong
competitors of HSBC company. Product development is major part of strategies that help in
attaining competitive advantage in marketplace. Volkswagen develops an effective strategy in
the existing product to increase growth and development. Product development is important
concept in the HSBC company because they launch their own develop services and it can be
developed in two ways: One is to identify the need or requirement on the basis of market
research and another is regarding idea generation, detail engineering (Naik, 2015). These are
very important concept that can be helpful for providing the best quality of services to their
customers.
3.2 Distribution to provide customer convenience
Distribution convenience refers to the process through which companies provide products
and services to people. In can include wholesaler, retailer, etc. through which products are
delivered. Every company have their own process of distribution convenience.
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HSBC bank arrange the business process and distributed the services and product to their
customers. They also provide the distribution convenience which is beneficial for organization.
HSBC provides many options to buy the product in different areas and locations. HSBC bank
provide the various financial and banking services to consumers. It is helpful for HSBC is a
leading bank that provides various financial services to customer. HSBC bank different ways to
distribute their services in marketplace like distribution channel. HSBC use two different type of
channel. HSBC provide the best quality of services such as commercial banking, loan, financial
banking, etc. There are other banking company which are the strongest competitors in
marketplace. In UK, HSBC is a leading banking company to provide the best quality of services
to their customers. They give many services such as finance and investment. HSBC open their
branches in different place and areas. They give many schemes to provide their own credit card,
deposit, foreign exchange and business loans, etc. HSBC organization develop an effective
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Illustration 2: Distribution
(Source: Distributions provide convenience, 2017)

strategy to provide the services. Employee communicate with the customer in polite manner and
solve the problems in proper manner. Idea generation is the best technique followings
different process in product development such as business analysis, idea screening, technical
implementation, new product pricing, development and testing.3.2 Distribution to provide
customer convenience
3.3 Prices are set to reflect an HSBC objectives and market conditions
Price strategy and approach are different type such as focus on based pricing, discount
pricing, penetration pricing, product life cycle pricing, etc.
Penetration pricing- HSBC provide the best quality of services to their customer. Penetration
strategy is designed to provide the services at low price. The penetration strategy is effective for
HSBC bank because the demand of new product is high and many competitors coped the same
product.
Price skimming- Price skimming is strategy in which the market fixed the high price for
services. This strategy is capture the consumer product life cycle. HSBC also increase the price
of services in marketplace. Customer face many problems because of high price (Ena and
Chernobaeva, 2017).
Premium pricing- it refers to the pricing in which bank can charge high price from high class
customers. They can charge high interest rate from business. HSBC bank provide the services at
high price.
Economy pricing- This is based on the economy of country. HSBC provide services at low rate
and according to economic condition of country.
HSBC company uses two different pricing strategies that is penetration pricing and
premium. The price strategy changes according to the business process.
3.4 Promotional activity integrated to achieve marketing goals and objectives
Promotional activities are integrated with marketing objective because it is mainly
focused on goals and objectives. HSBC uses different approaches to promote their product and
services in marketplace. Promotion is major part of organization which is helpful for promoting
their services in marketplace. HSBC bank use different marketing approaches to promote their
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services. Marketing team is promoting the product with the help of different medium such as
social media, newspaper, website and radio, etc.
For growth and development, promotional activity is helpful for increasing the
productivity and profitability in marketplace. Marketing team has more responsibilities to
manage the coordination between company and customer. They provide many services and
facilitates to customers. It should be integrated to the promotional operations.
HSBC company uses different activities to maintain the business process such as
coordination, consistency. This company is spending a lot of money in promotions and
marketing.
3. 5 Evaluate the additional elements of the extended marketing mix
The first four important marketing mix elements are price, product, place, promotions.
Afterward, there are some elements added such as process, people and physical evidence.
People- The employee and management of HSBC are responsible part of organization
because they are providing the best services to their customer. Human resource management is
important department that hire the efficient employee to manage the entire business process in
proper manner. HSBC promote their services in marketplace (Dligach, 2017).
Process- According to HSBC, marketing activities is related to using some process such
as offering delivery. Manager develops a process on order to communicate the message to
customers. There are following process for achieving their goals and objectives.
Physical evidence- Physical evidence is an essential because it provides proof to the
customer. It consists of service delivery and infrastructure. HSBC provide the services in very
fast way and quickly.
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TASK 4
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CONCLUSION
Marketing is important part of organization to increase their popularity in global market.
Vodafone is a leading organization which is expanding at high rate. They provide the best quality
of good and services in market. It is evaluated the cost of marketing and their benefits of
company. Micro and Macro environment factors influence the marketing decision in
organization. Further, this assignment describes target strategy and behaviour of buyer that affect
the different buying conditions and situations. This report also discusses about the Volkswagen
company which is a leading automobile manufacturing organization uses different element for
marketing process. This report discussed about HSBC bank to develop an effective service. It
also uses different promotional activities for achieving goals.
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