Detailed Report on Marketing Strategies of Volvo Group (Unit 2)

This report provides a comprehensive analysis of the marketing strategies employed by the Volvo Group, a multinational automotive manufacturing company. It begins by defining marketing and outlining its core functions, emphasizing the importance of understanding consumer needs and wants. The report delves into the key roles and responsibilities of the marketing function within Volvo, including financing, pricing, promotion, product management, distribution, and selling. It further examines how these roles interrelate with other organizational departments, such as human resources, finance, and research & development. The report then compares Volvo's marketing mix to that of Toyota, highlighting differences and potential areas for improvement. Finally, it concludes with the development and evaluation of a basic marketing plan specifically tailored for the Volvo Group, offering valuable insights into their marketing approach.

Marketing Essentials
(Unit 2)

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Explain the key roles and responsibilities of the marketing function for the chosen
organisation.................................................................................................................................3
P2. Explain how roles and responsibilities of marketing relate to the wider organisational
context for the chosen organisation or scenario..........................................................................6
TASK 2............................................................................................................................................9
P3. Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives. How does it differ from other
organisations or could do better compared to other organisations (with examples). ................9
TASK 4..........................................................................................................................................12
P4. Produce and evaluate a basic marketing plan for the chosen organisation. .......................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Marketing is defined as the set of actions performed by a business in order to
communicate and deliver the product or services as per the need and want of consumer. The
main aim of marketing is to improve the relationship between customers and brand by regularly
flowing the information which consumers require to form up their purchasing decision or
remaining connected with the brand (Baker and Magnini, 2016). The current report is based on
Volvo Group which is a larger multinational manufacturing company of automotive and its parts.
Its core activities involves manufacturing, distribution and sales of buses, trucks, cars,
construction equipments and it also supplies marine, industrial drive system and financial
services. This report involves a detail explanation of role and responsibilities of marketing
function performed within an organisation and its interrelationship with other functional unit
present within the organisation. Further it involve a differentiation between the marketing
strategies of Volvo and Toyota on the basis of marketing mix. At the end it involve the
marketing plan of Volvo.
TASK 1
P1. Explain the key roles and responsibilities of the marketing function for the chosen
organisation
Marketing is defined as the set of activities performed by a business in order to promote,
distribute and sell the good and services to its target customers in order to fulfil their demand and
expectation (Campbell, Martin and Fabos, 2018). The marketing practices is mainly perform for
delivering right product to right customers which mainly started from introducing the product or
services to the consumers and pursued to purchase them. The aim of marketing can be better
understand from the step by step process of marketing that consists of four steps such as,
 Evaluate about several opportunities present in market that includes assessment of need
and want of target consumers.
 After analysing the market, next phase is to perform marketing mix for formulating
strategies which help in promoting and offering the products effectively to approach the
customers.
 Once the targeted market is decided the next step is to develop marketing mix strategy
which help in promoting and offering the product as per the requirement of customers.

 The final step involve the actual execution of plan which is formulated in order to
promote and approach the customers.
Marketing plays a significant role in attracting the customers to purchase product or
services of an organisation. It involves a range of functions that help in making people identify
the product or services that suits their requirement (Cavusgil and et. al., 2014). Volvo is a large
multinational organisation that operates throughout several different countries and offer range of
models, but in to ensure that customers get their choice of vehicle it perform range of marketing
practices. So that the target market get information regarding variation among the models
available for the customers. Following are certain roles and responsibilities that marketing
manager must consider while performing marketing practices,
Roles:-
 Financing:- It is defined as the process of managing and making fund available for
performing the business operations effectively without any sort of delays. The main role
of marketing manager is to maintain communication with the finance department for
ensuring that fund remains available to them for performing marketing related activities.
This support marketing manager of Volvo in determining the estimated amount they have
for performing each activity so that the marketing practices will get performed smoothly.
 Pricing :- It is defined as the monetary value which a customers pay on exchange of
purchasing a particular product or services. Under this function the main role of a
marketing department is to set the price of product in ethical manner which cover up all
the production and distribution cost and remain affordable to consumers (Clow and
James, 2013). The role of marketing manager of Volvo is to place appropriate price of its
model as per the quality, safety and technology i.e. in a manner which worth its features
or benefits offered to consumers. Promotion:- It define as set of practices performed to make customers aware about the
products or services and attracting them to influence them for making purchases. The
main of promotional activities is to have communication with target market about the
product or clearing out doubts they have. The role of marketing department is to ensure
provide real information to the customers without any kind of manipulation. The role of

marketing manager of Volvo is to mention about all the features that it is using in
manufacturing of car so that nothing remain hidden from consumers. Product and service management:- It is a process of decision making where a company
make up a decision regarding what to sell, how to sell, where and whom to sell. Under
this the main role of a marketing is to create, manage and improve the marketing mix
strategies for exploiting the opportunities present in market. With the help0 of
appropriate product and service management, the marketing manager would be able to
align the products as per the demand of customers (Hair Jr and et. al., 2015). The role of
marketing manager of Volvo is to ensure effective product or service management where
it become able to differentiate its vehicle models from that of other competitors present in
market by regularly evaluating the demand of consumers and placing its models in
market accordingly. Distribution:- It is a process through which product or services get deliver to the end
consumers. Under this the main role of marketing department is to make sure that the
product or services get available to the customers in right manner. The marketing
manager of Volvo has to perform a role of checking that all the documentations regarding
purchasing of vehicle remain appropriate or verified on timely manner so that vehicles
can be delivered to the purchaser with all the legal formalities to maintain its reputations.
 Selling:- The marketing and selling practices consider to be complementary services to
one another as marketing support sales representatives to sell more unit as customers are
already being educated with the promotional practices performed by marketing manager.
On the other side the outcome of sales department support in determining the actual
performance of marketing department (Huang and Sarigöllü, 2014). Her the main role of
marketing department is to ensure that the customer are being educated effectively about
the products through marketing so that the can make right decision and get satisfied with
the services. The role performed by Volvo's marketing manager is to remain focused
toward ensuring that its showrooms have adequate availability of models to display in
front of customers to make them choose vehicle of their choice.
Responsibilities:-

 Formulating strategy:- The key responsibility of marketing department is to formulate
effective strategies in order to perform actions in a manner that get aligned with the main
organisational objective (Joshi, 2012). The responsibility of marketing manager of Volvo
is to formulate effective strategies related with its marketing practices in order to ensure
that each actions get conducted as per the provided guidelines that help in achieving the
desired level of performance.
 Market research:- Another major responsibility of marketing department is to perform
market research for determining the demand of consumers or changes that get anticipated
within the business environment in order to keep company safe from threat and provide
chances to exploit opportunities available. The marketing manager of Volvo is
responsible to firstly ensure that proper marketing research get performed so that right
product get placed in marketing without any kind of loss to company and dissatisfaction
to the customers.
P2. Explain how roles and responsibilities of marketing relate to the wider organisational context
for the chosen organisation or scenario
Marketing is determined as the effective way through which company develops
awareness of its products and services among customers as well as other people in order to
enhance their sales performance (opolšek and Čurin, 2012). In addition to this, it also helps
businesses in enhancing their profitability in effective manner. Marketing activities basically
includes selling, advertisement, delivering effective products to its end user with the motive if
satisfying them at higher level.

(Source: Key Business Functions, 2018)
From specified graph, it can be said that all functional area of the company are
interrelated with one another. While, it is talked about marketing function, it can be said that
marketing department of every organisation is having their relations with other other
organisational function (Pappas, 2017). It can also be said that every department requires support
of one another so that they can easily execute their work and accomplish their work in rapid
manner. By getting support of one another businesses can easily accomplish their organisational
objectives and attain success in rapid manner. With reference to Volvo, interrelationship of its
marketing department with other organisational functions are specified as below in detailed
manner: Marketing and Human resource department:- Human resource department of Volvo is
mainly responsible of recruiting candidate for the company so that they can easily
accomplish their goals and objectives in rapid manner. This department is directly related
to marketing department as it is providing skilled workforce to the marketing manager
who further performs the work of promoting services of this company among its potential
Illustration 1: Key Business Functions

customers in rapid manner. Here, HR department initially communicates to the marketing
head about what kind of employees they want in their team who could work according to
the core the requirement (Rancati, Gordini and Capatina, 2016). It can be said that the
positive relationship of HR department with marketing team helps them in accomplishing
their respected goals and objectives in quicker manner which ultimately leads to the
success of company. Marketing and Finance department:- Finance department in every organisation handles
all sort of financial activities at workplace that is responsible for developing budgets,
allocating finances, develops financial plans, monitor and control uses of financial usage.
This department shares highly influential role in the growth of business association which
supports them in handling all financial situations in rapid manner. In addition to this, it
can be further said that finance department of Volvo is related to marketing department.
Here, finance department provides adequate amount of money to finance department
which helps them out in promoting their products and services among customers. Also,
adequate amount of financial resources helps marketing team and deciding rightful
promotional activities that effectively provides them support in enhancing awareness of
products and services among its potential customers. This simply provides support to
marketing department in accomplishing their respected goals and objectives in rapid
manner.
 Marketing and Research & Development department:- R&D department of every
company emphasises on gathering information about the current market trends, changing
needs and requirements of customers and other things which helps them out in modifying
their actual products and services according to the core requirement of changing market
situations. R&D department of Volvo conducts market research at constant basis and
gathers information on the current market situation and latest trends that could attract
customers towards them in effective manner (Rossi, Allenby and McCulloch, 2012). This
department directly provides information to marketing department about the latest
marketing which ultimately helps them out in promoting their products and services
among its customers in appropriate manner that contributes in the enhancement of
organisations sales performance which maximises their probability in the rapid manner.

On the basis of above specified information associated with the interrelationship among
different department of Volvo, it can be said that department are sharing strong relationship with
one another as their work is interdependent on one another. The overall motive of all these
departments is to accomplish their personal goals and objectives in timely manner with the
preliminary motive of attaining organisational goals and objectives in the same manner for
accomplishing success. Along with this, positive relationship of these departments helps
company in improving their business performance by serving its customers in more appropriate
manner. This also leads to the attainment of competitive edge at marketplace.
TASK 2
P3. Compare the ways in which the chosen organisation applies the marketing mix to the
marketing planning process to achieve business objectives. How does it differ from other
organisations or could do better compared to other organisations (with examples).
Marketing mix is defined as the set of actions, strategies or tactics which a company uses
for promoting its brand as well as product to market for smooth functioning of business. This
support in formulating effective strategies for offering the product or services effectively to its
targetted customers (Kladou and et. al., 2016). Every organisation uses marketing mix for
performing effectively within the market place and to achieve success but the method of
implication of each business is different as the strategies is mainly formulated as per products it
offer or pre specified objectives of it.

Illustration 2: The Marketing Mix, 2018
Source: The Marketing Mix, 2018
According to above mentioned image, it can be stated that the seven components of
marketing mix form up most appropriate strategy for market exposure of a product or services.
These components are product, price, place, promotion, process, people and physical evidence.
The Volvo develop its marketing mix in such as manner that it can differentiate it from other
competitors in order to become main choice of consumer. This difference can be better
understood through following table:
Components Volvo Toyota
Product Volvo is one among the larger
Automobile company based in Europe
but operates throughout world
including a well managed market in
UK. The Volvo group products are
spread into six business areas such as
Trucks, Buses, Construction
Equipment, Governmental Sales,
Volvo Penta and Volvo Financial
Services. In addition to this it is also
known for manufacturing reputed car
in term of classic style and safety
Toyota make beautiful designs, fuel
efficient, comfortable and safe product
which help in providing the services for
meeting the mobility need. The
company’s product mix offer products
such as engines, marine products,
accessories and spare parts, Toyota auto-
mobiles, Lexus auto mobiles, and
Welcab series.

standards.
Price As the Volvo deals in range of
segments it employ its pricing strategy
as per the segmentation (Lane, 2015).
But it mainly follows the competitive
pricing strategy As the information
regarding the competitors pricing is
easily available and customer also
judge the product on pricing bases
after features.
Toyota set its pricing strategy on the
basis of competition as Volvo maintains
in order to remain competitive within the
marketplace as the competition is
relatively higher. But majority of time it
offer its model on higher rate as compare
to its competitor as it offer more
features.
Place The Volvo sell its products through
two marketing channels, where one is
online channel using its official
website and other one is through
wholesalers who then sell to different
retailers. Additionally it maintains
around 2300 local dealers throughout
the world.
Toyota follows an omni channel
distribution system where it focuses
toward integrating the online and offline
stores for allowing its customers to get
more easy access to services. Despite of
this it also perform partnership with
number of delivery service providers for
ensuring timely delivery of products.
Promotion Volvo make use of multi channels in
order to promote its models. In this it
make use of traditional media such as
newspaper, magazine, television and
radio for promoting the products as it
is beneficial in reaching larger number
of people. Additionally it make use of
social media platform which is cheap
and at the same time beneficial for
increasing the usage of internet.
Toyota spend much on promotion and
marketing practices using both
traditional and digital channels which
includes TV, newspapers, social media
sites etc. Other than this it also perform
media publicity and public relations
(Malhotra, 2015).
Process Volvo make use of a system for
ensuring that the products always satay
Toyota maintain online delivery process
where they receive order at their

available to retail stores. As through
this system, retailers can notified when
the inventory level is low, so that
products remain available when
customer demand for it.
computer systems and based on this
requ9iremnet o9f customers the relevant
products are then delivered to the
delivery service provider from the
inventory.
People It maintain a high skilled and
competent workforce in several
segments (Lovelock, 2011). This
includes, sale team which is being
trained in persuasive techniques,
interaction with customers etc.,
customer services team remain active
for help for resolving issues, suppliers
fro timely availability of raw material,
retailers for making vehicle available
to customers at their nearest.
Toyota mainly focuses toward skilled
and experienced staff in order to place
them for dealing with customers and
helping in resolving the queries they are
having about the products or services so
that best possible satisfaction can be
provided.
Physical
evidence
Volvo sell its model in different colour
or designs which are displayed in
different sections of the retailer
showroom where customers can move
through them all and choose as per
their choice.
Toyota maintain its online website more
effectively where it display most
demanding product on home page of its
website and then categories all the
models as per their features so that
visitors easily get an idea regarding the
options available for them which fit into
their requirement.
TASK 4
P4. Produce and evaluate a basic marketing plan for the chosen organisation.
Marketing plan is determined as the overall base document for the marketing which
pro9vides effective guidance to marketing manager about all activities of marketing activities
which is going to be performed by them in the upcoming year. This basically includes several
action plans, strategies and resources which supports company in accomplishing their overall