Running head: MARKETING RESEARCH Research Marketing Questions Patty Ahmedou Balla MKT/571 June 12, 2017 Ismael Hau-Rosa MARKETING RESEARCH 2 Part 1 Memorandum for the SVP From the business growth overview dataset, it can be concluded that the company derives most of its revenue from the United States market. According to the gross profit, Avg/day, for the year to date January to June 2015 and 2016, 8.9% of the gross profit is obtained from the domestic market while only 3.1% is from the international market. The quarter to date data also gives a higher percentage of the domestic market. However, the month of date data gives the opposite in that the revenue expressed in terms of the gross profit is higher for the international market as compared to the domestic market. According to the customer rank data, the company generates a lot of revenue from expanding the already existing customer base. Next in line is through the retained customers. All the values which are YTD, QTD and MTD give the show the same observation in terms of percentages. Revenue generated from acquired customers showed a positive increase of 58.4%. This is an indication that the organization has to work on its marketing tactics to continue increasing the number of customers that are being acquired. Cross-selling is also another way the company can expand its customer base, a factor that promotes customer retaining. By so doing, management will be in a position to ensure that growth in revenue is continued and any decline is reversed or avoided. It is worth noting the significant decline in the revenue generated from the three major customer ranks who are the acquired, retained and expanded from YTD January to June 2016 Vs 2015 and QTD April, May June 2016 Vs 2015. Revenue declines further for MTD June 2016 Vs 2015. This is accompanied by a decline in the revenue generated from individual customers that MARKETING RESEARCH 3 comprise of commercial customers, International, Municipal and industrial ones as listed in the generated report. As much as the company’s largest customer base is from the commercial field, revenue significantly declined. Revenues generated from the top customers of the company are also seen to be declining steadily over the three classified periods. The gross profit is seen to decline in 2016 relative to 2015. Delta Appliance company, one of the company’s customers recorded a decline in their purchases by 5.3%. This is a considerable decline and the company has to research to find out the major causes of the decline in order to work on it through the implementation of the necessary policies such as increased campaigns and to some extent quantity discounts to make the client increase the purchases made at the company. On the lighter side, there was a considerable increase in the revenue generated from the company’s commercial clients. This was by 9.9%. However, the fact that there is a great deviation between this client class and the next class which is resellers in terms of dollars is a cause for alarm. It is an indication that the marketing efforts that are being done by the company are not effective in ensuring that the other customer classes are convinced to purchase the company’s products and services. Also, there was significant growth in the revenue generated from the domestic market relative to the international market, an indicator that there is a need for vigorous marketing efforts internationally to increase sales thus generate more revenue from the international market. Frequent market research is therefore mandatory in order to establish the most favorable solutions that will most likely reverse the decline. MARKETING RESEARCH 4 Part 2 The company selected for the marketing plan is the Ford Motor Company which is an American multinational automaker with its headquarters in Dearborn, Michigan. The product selected for discussion in the marketing plan is the Ford F-series truck. This is a truck that has been in the market since the year 1977 and is one of the best-selling products manufactured by Ford. It is described by the users as the most efficient truck with the highest innovation levels and that is why the maturity stage of its product life cycle has been extended for 40 years. Ford’s web page is at https://corporate.ford.com/company.html. The website gives the company’s slogan and some brief information about it. Its vision according to this website is ‘People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership’. The company employs about 199,000 employees in all its plants, a good percentage of which are retained due to the favorable working environment. According to the 2016 annual report, the company generated $4.6B worth of net income. Ford Company is a corporate body and therefore owned by shareholders. Some of the major shareholders are from the Ford family. It is a company that performs well, and the success can be attributed to excellent leadership and strategies by the top management. MARKETING RESEARCH 5 References Ford Company 2015 Annual Report, Available at http://corporate.ford.com/annualreports/2015/index.html Ford Company 2016 Annual Report. Available at http://shareholder.ford.com/~/media/Files/F/Ford-IR/annual-report/2016-annualreport.pdf Ford Company website at https://corporate.ford.com/company.html Kotabe, M., & Helsen, K. (1998). Global marketing management. New York. Running head: MARKETING RESEARCH Price and Channel Strategy Patty Ahmedou Balla MKT/571 July 3, 2017 Ishmael Hau-Rosa MARKETING RESEARCH 2 Price and Place distribution – Ford F-Series Price and place are two of the four P’s of the marketing mix that have to be considered by the management of any organization during strategy formulation that is meant to develop company’s products and brand as a whole (Kotabe & Helsen, 1998). Companies have to ensure that they are producing the right product, selling it at the right price, using the most affordable and appropriate promotion channels and finally considering the place to ensure that the product is available at the right place (Goi, 2009). The Ford F- series has met all the requirements for the marketing mix elements as it has the right features, some of which include durability, capability, and smartness. It has been evolving ever since its introduction as the company strives to make it a better car aimed at meeting the needs and wants of its users. It is afforded as the price ranges from $27000 to $65000. The F series trucks can also be considered to be in the right locations near their customers because of the several existing distributors in the US and the world at large. It has also been well promoted with an aim of creating awareness through online campaigns and the use of other media platforms. The success of this product for over 35 years in the United States can be attributed to the way the company has met all the requirements of the marketing mix. Distribution Strategies A distribution strategy is a plan that is utilized by organizations to meet the goal of selling a product to some of the areas that the sales persons cannot be able to reach physically. For this reason, companies use distributors, the internet, wholesalers among others. For Ford’s case, the distribution strategy for the F series has involved dealerships, Ford Parts website, Auto parts stores and Ford Motor Credit Company (Ford Motor Company, 2015). In most cases, the MARKETING RESEARCH 3 company has been using dealerships not only for the F series Products, but also some of its other products. Also, there are third party auto parts and stores who sell the company’s parts for other users. Surprisingly, the company’s spare parts have been generating a lot of revenue, which is a clear indication of quality. The customers who use vehicles from other manufacturers still use Ford’s spare parts, a factor that could have been enhanced by the efficient distribution channels or quality of the parts (Ford Motor Company, 2015). These strategies for distribution clearly indicate that for Ford to generate sales, it makes use of third parties and different facilities owned by the company. Dynamic/Static Pricing Strategies Just like any other company, prices at Ford and more specifically the F series varies significantly depending on the prevailing market conditions. This is also supported by the fact that the F series is the most demanded trucks in the United States, and so the company has to work around it in terms of price to ensure that it reaps the most revenues from it. For this reason, the two main strategies used are the premium marketing Strategy and the market Oriented pricing strategy. The premium pricing strategy is a static one and is used to set higher prices for ‘some of the trucks like the F-150 which has been the talk of town since it was launched. The strategy is also applied to the company’s luxury cars. The market oriented pricing strategy on the other hand is used to set prices that are in line with the prevailing market conditions. This gives room for competition because the company cannot charge higher than the competitors and still enjoy a larger market share. All the other trucks in the F series are priced using this strategy plus the sedans. This strategy also gives room for consumer perceptions and the market forces of demand and supply among other variables. MARKETING RESEARCH Daily Pricing, Promotion Pricing, and List Pricing Promotional pricing is about reducing the prices drastically for a given time period in order to increase the sales of a given product. Ford does not use this pricing strategy given the nature of the company’s products. This strategy works better for fast moving products like phones and food stuffs. The list price on the other hand, refers to the price at which a product has been offered for sale. Thais could as well be the retail price that has been selected by a manufacturer. For the F series, Ford Company uses the list price for all their distributors to ensure that the company does not incur a lot of losses. All distributors are expected to sell the trucks at the suggested price. 4 MARKETING RESEARCH 5 References Ford Motor Company (2015). Motorcraft Auto Parts Retrieved on 30th June 2017 Ford Motor Company Form 10-K, 2014 Retrieved on 30th June 2017 Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal of Marketing Studies, 1(1), 2. Kotabe, M., & Helsen, K. (1998). Global marketing management. New York. Running head: PROMOTION AND PRODUCT LIFECYCLE Promotion and Product Lifecycle Patty Ahmedou Balla MKT/571 June 26, 2017 Ismael Hau-Rosa 1 PROMOTION AND PRODUCT LIFE CYCLE 2 Promotion and Product Lifecycle Introduction There are four basic stages that a new product goes through when they are introduced into the market. The steps include introduction, growth, maturity, and decline. It is notable that this life cycle of a product affects the various activities and approaches of the manufacturer. One of the events that are influenced by this period is the issue of product promotion. An organization would adopt different advertising approaches to every stage of the lifecycle of a product. In that regard, this paper examines the advertising strategies that institutions take about every level of a product life cycle for a new item. Product Strategies for Growth, Maturity, and Decline Ordinarily, four stages are involved in the product lifecycle. They include the introduction stage, the growth stage, the maturity stage and the decline stage. At the initiation stage, the product is not known by the consumers, and the manufacturers are trying to bring it to the attention of the customers. At the growth stage, the item is picking up, and a few customers have already started using it. At this point, a significant segment of the market already has information about the product. During the maturity stage, the product is at its peak. The sales volumes are high, and the producers are making a killing. However, this period is followed by a decline. Due to a myriad of factors, the sales volumes start reducing, and the customers seem to be shifting their tastes to other products (Stark, 2015). Different strategies are adopted for these various levels of development. At the introduction stage, the producers must take an aggressive media campaign to bring the attention of the product to the consumers. The aim of this phase is to bring the existence of the product to PROMOTION AND PRODUCT LIFE CYCLE 3 the attention of as many people as possible. Televisions, newspapers, radio stations and all forms of mass media can be used in promotion. During the growth stage, the content of the promotion will slightly be different from the one employed in the introduction. Since many people have known the product, it is now necessary to communicate the benefits that could be obtained from the use of the items. It is meant to encourage members of the public to continue using the product while at the same time trying to convince those who are undecided (Burns, 2010). At the maturity stage, the product is at its peak, and there is little product promotion that takes place. However, during the decline phase, the promotion again adopts a new dimension. Since the customers are seemingly leaving the product to consume another one, the language of the advert will tend to communicate the benefits or advantages that the product has over the other items in the market. That would be an attempt to dissuade individuals from running away from the product. Measuring the Success of the Promotion Strategies There are a variety of ways in which the success of advertising strategies may be measured. One of the traditional methods is the measurement of the change in the volumes of sales. If there is an increase in the value of sales during the period, it would be interpreted that the strategy has been successful. Another measurement that can be used is the customer feedback. In the event where the promotion strategy has captured the market, there will always be an overwhelming feedback from the clients (Shimp & Andrews, 2012). The content of the message notwithstanding, it is necessary to hear a response from the clients. That is an indication that the intended message had reached them. PROMOTION AND PRODUCT LIFE CYCLE 4 Media Methods for the Product There are two sets of media methods that can be used in the promotion of the product. While some are in print form, some are not. The print media that can be utilized in the development of the product is magazines. Some magazines are popular among particular segments of the market. An organization would have to choose their targeted market before deciding on the magazines to use. Placing advertisements in magazines is cheap, and it reaches a lot of people. On the non-print media, an institution may choose to use a social media platform such as WhatsApp. The platform allows a lot of individuals to share information within a short period. A piece of information from one source can be divided to reach millions of people within a short period. Three Elements on the Product and Promotion List Integrated marketing communication; this refers to the process through which all the pieces of information that come from an organization are carefully crafted and organized so that they link together. The primary idea is to make sure that there are no elements of conflicts among the pieces of information that may come from the various departments or sectors of the organization. Media strategy; it refers to the various ways and means through which messages will be delivered to the consumers. The choice of the media strategy is critical since it will inform the number of people who will receive messages and the effectiveness of such messages. Direct marketing; this is one of how organizations communicate to their prospective clients. It entails direct contact between an organization and the consumers through ways such as PROMOTION AND PRODUCT LIFE CYCLE emails, phone calls, and face-to-face interviews. It is important since it enables an institution to receive immediate feedback from the clients. 5 PROMOTION AND PRODUCT LIFE CYCLE 6 References Burns, P. (2010). Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan. Shimp, T. A., & Andrews, J. C. (2012). Advertising promotion and other aspects of integrated marketing communications. Cengage Learning. Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (pp. 1-29). Springer International Publishing. Running head: TARGET MARKETS Understanding Target Markets - Ford Patty Ahmedou Balla MKT/571 June 19, 2017 Ismael Hau-Rosa TARGET MARKETS 2 Target marketing involves dividing the market into small segments to enable the organization concentrates their marketing efforts to each of the segments according to the strengths and weaknesses of the segments (Kotler et al., 2015). This ensures that there is cost optimization and thus the company utilizes their resources well to generate maximum profits because the market is focused on is more likely to purchase the company’s products as compared to the other markets (Kotler et al., 2015). To be more strategic in decision making, identifying the target market is the first step to achieving the organization’s strategic goals, and especially in terms of sales (Kotler et al., 2015). To better understand Ford’s target market, it is important to conduct a scanning of the company’s environment, the opportunities it has and the threats it faces from the environment. Environmental Scanning: This is about systematically surveying the environment within which an organization lies in order to establish its unique characteristics that could be used to give it a competitive advantage. In the case of Ford, it is worth delving into the political, economic, environmental, social, technological and legal factors that can either pose threats or opportunities to the company’s success. After scanning the business environment for Ford Motor Company, the political factors that influence this environment include government support for the company’s innovation ventures that are to do with technology, the facilitation by the federal government to increase the opportunities for international trade agreements and lastly the government effort to develop infrastructure both in the United States and in developing countries is an effort to increase the likelihood of marketing Ford’s products. The Economic factors include economic growth in the United States in the recent past, higher developing markets growth rate and the government seeking ways in which the US dollar will be strengthened which may pose a threat to the business as purchases from foreign countries may decrease significantly. TARGET MARKETS 3 The social factors that may affect the business include the increase in the wealth gap, increase in demand for electric automobiles and an increase in the concerns for customer service which is an opportunity for growth. Technological factors that may affect the Ford business include the rising use of computing and connectivity which is an opportunity for business growth and lesser fuel station alternatives which are a threat to the business because people may not be in a position to use the company’s products without fueling them. The ecological factors include a decline in the oil reserves, a declining carbon trend and climate change, all of which pose opportunities for the Ford business in one way or another. Lastly, the legal factors affecting the business include the increasing regulations on safety, an emphasis on intellectual property laws and regulations that are aimed at the protection of the environment all of which form opportunities for the business. From this analysis, it is clear that Ford has various opportunities for the growth and development of its brand. The company should, therefore, put in place strategies to foster this growth by taking advantage of the available opportunities (Hollensen, 2015). Opportunities: Some of the opportunities that Ford has from the external environment include the switching toward the use of an electric engine given that the company has an opportunity to start using the hybrid engine. The company can also work on developing an engine that uses electricity which means there will be less pollution with the opportunities for cars to start running on renewable energies like biofuels and solar power. The threats it faces from the same environment are the rising petroleum cost, meaning the company has to quickly ensure that the electric car is in supply, the growth of the competitors as well which threatens the market share of Ford. Some of these competitors are Toyota, Honda, and Nissan. Another threat faced by the company is the new ideas unveiled by the competitors, TARGET MARKETS 4 which makes the company spend more on research and development to keep up with the competition. By so doing, the company ends up spending a lot on capital expenditure, a factor that could negatively influence the company’s growth and development in terms of revenue generated. There is also the depression of the economy which will negatively influence the consumer’s purchasing power, a factor that will lead to declined sales. Target markets: It is noteworthy that Ford targets more than one market segment through the provision of a marketing mix for each segment. This in marketing terms is a differentiated approach. By so doing, it appeals to various consumers through the production of luxury cars, trucks, sports cars and so forth. The Ford Fiesta model, for instance, focuses on the ladies and youth. This model’s demographic variables include the client’s age, income level, and gender. The behavior variables used are an efficient use of fuel and safety. From this analysis, I realized that psychographic and behavioral characteristics are very important elements of segmentation as they help the organization know how exactly to design and price the product. Environmental scanning is also an important aspect as it helps in pricing, targeting and segmenting so that the organization reaps the most out of its business ventures (Foxall, 2014). This is because targeting the right market segment ensures maximum sales (Foxall, 2014). TARGET MARKETS 5 References Foxall, G. (2014). Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge. Hollensen, S. (2015). Marketing Management: A relationship approach. Pearson Education. Kotler, P., Keller, K. L., Manceau, D., & Hémonnet-Goujot, A. (2015). Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice-Hall.
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