Describe about the Smooth Discussion Of The Comparative Marketing Management Structure Of The Four Renowned Automobile Brands?
Marketing management is the company discipline that aims on the practical implementation of methods and techniques inside organizations, marketing orientation and on the management of the marketing activities and resources of a firm (Czinkota and Kotabe 2011). A study has been deployed concerning the comparison of the marketing strategies of four different car brands such as Ferrari, BMW, Audi and Mercedes with the help of the marketing management concept. Primarily, the STP strategies used by the selected automobile brands has been discussed to identify the issues are being faced by individual brands and who are compensating the issues to keep its business process stable within this massively competitive market. On the other hand, the most important factor that is the marketing mix tools utilized by the companies has been compared to make more clear recommendation for the brands that would help them in improving their marketing strategies.
Ferrari is luxurious the sports car manufacturer. This company was established in 1929 by Enz Ferrari. It is the most powerful brand all over the world in terms of brand finance (Ferrari 2016).
Audi is the German car manufacturer that produces, distributes, markets, engineers and designs luxurious cars. This company oversees around the globe. Audi is headquartered in Bavaria, Germany (Audi 2016).
Mercedes is also a German car manufacturer. It is actually a multinational division of Daimler AG. Mercedes is popular for luxurious trucks, coaches, buses and automobiles. Mercedes is headquartered in Stuttgart, Germany (Mercedes-benz 2016).
BMW or Bavarian Motor Works is again a German luxurious engine, motorcycle and automobile manufacturing company established in 1916 (AG 2016). The BMW headquartered is located in Munich, Germany.
The STP strategy explains the connection between an overall market and how an organization selects for competing in that market. The role of this strategy is to provide a proper guidance to a certain organization for the implementation and development of a suitable marketing mix tool.
Being the top ranked car brands around the globe, Ferrari, Jaguar, BMW and Mercedes follow their own specific STP strategies. Therefore, it can be expected that the three brands must have some differences in their STP strategies because competition is more in the same industry.
The average owners of Ferrari may be male in their mid-fifty. It is very difficult to find any Ferrari that would be purchased as the customer is in requirement of the transport vehicle. Most of the Ferraris in fact are only the third or second car owned in a household (Davis, 2012). It is primarily for the extremely high price of the cars. It is not a rare occurrence apparently, that all understands as most people purchasing.
The Ferraris are purchased as for the performance and status (Dickson 2014). Very less people can afford actually a Ferrari. However, this Ferrari is the most desirable automobile brand among all the people all over the world. People who have very strong background and high income try to highlight their status and also have an interest in the luxurious sports cars that belongs to the target market of Ferrari.
Ferrari has been positioned in the prestigious segment of the automobile industry with a distinctive benefit depending on the exclusivity and high performance (Goldman 2013). Ferrari is symbol of status as a brand that consists of the extreme design, power and performance. Customers perceive purchasing a Ferrari as the consumers have made it.
Though, Ferrari manufactures cars with extreme design, power and performance but these cars cannot reach towards most people because of the high prices. If Ferrari can manage to cut down the prices of the cars then it would motivate the buying decision of the purchaser.
Audi actually uses the psychographic, demographic and geographic segmentation variables. Audi’s first decision is which cars in which countries such as smaller Audis are found in Europe as they drive smaller cars than the Canadian people (Hollensen 2014). In case of demographic segmentation, middle aged people are targeted by Audi. Audi manufactures cars for all the income group people around the globe. Audi mainly focuses for high class to upper middle class people as it is a very luxurious brand.
The target market of Audi is based on the country and on the driving type. Audi mainly targets many countries worldwide (Karunakaran 2011). These cars are available for both the luxury use and the driving purpose.
Audi enhance their market positioning by providing stress on several points as follows,
By selecting suitable rivals such as BMW and Mercedes
They launch some impressive and distinct cars than the brands like, BMW, Mercedes and Ferrari (Lancioni 2015).
They find their USP for increasing their position in the automobile market.
Audi’s cars are affordable for the middle income people. Hence, this factor has definitely influence the buying decision of the purchasers. However, they should concern about the performance and the speed of the cars to motivate the buying decision.
Segmentation Analysis
Demographic of Mercedes Benz S class consists of mostly middle aged people, both male and female and adults. These cars are not very popular among the young generation as these are very expensive. Mainly Mercedes targets high or middle income people.
Mercedes target market is the people of middle age of high or middle incomes. This brand mainly targets rich customers (LaPlaca 2014).
This brand has developed a strategy for positioning as a producer of highly safe and reliable automobiles that result in a cost premium relative to similar global rivals (Levy 2012). Mercedes provide the outstanding solutions regarding their service related to the products.
Mercedes should be concerned on the improvement of their pricing decision that would help them to change their buyer’s buying decision from no to yes.
The major market for BMW, geographically are North America and Europe as these continents are widely industrialized and their residents are positioned financially for purchasing the cars of upper market (Lilien 2015).
This brand utilizes a differentiated strategy that is they target particular automobile markets. BMW mostly targets the markets of Super Sports, Super Executive, Executive, Sports Convertibles and many others.
BMW has positioned its image as quality automobile producer, technologically advanced, performance and exclusivity. The market of BMW is very competitive due to the numerous automobile manufacturers (Richter 2011). This brand has developed a positioning strategy as a producer of highly safe, reliable automobiles and high performance cars that help the brand to compete in such a competitive market.
This brand has developed a positioning strategy as a producer of highly safe, reliable automobiles and high performance cars. The same advice would also go for this brand that is they should be concerned in their pricing decision to motivate the buying decision of the purchasers.
Fig 1: Perceptual Map for Mercedes, Audi, Ferrari and BMW
(Source: Dickson 2014)
Marketing mix is business tool utilized by markets and in marketing. It is often essential while determining the offer of a brand or product and often is associated with Product, price, promotion and place. (Shapiro 2012)
Product
The products of the brand are the super cars of high performance. However, the organization is widely into the merchandising of third party (Sheehan 2011).
The brand priced at a premium range. Ferrari begins upwardly at prices of US $175000. People appreciate Vintage Ferrari cars in value and these are known to US dollar’s cost millions.
The merchandising of Ferrari is the strongest promotion of the brand. Already Ferrari is enjoying immense awareness around the globe, even in the areas where the brand does not do any promotion (Davis 2012). However, this merchandising is implemented on a license and royalty basis to other brands.
Ferrari has its exceptional Ferrari dealership that is spread over fifty two countries as of yet with the plans for expanding the dealership of Ferrari to other markets and countries (Ferrari 2016).
In early 1990s, there were some issues found in their cars but Audi’s new cars have mutation of much less consequences with their microprocessors due to the implementation of improved technology (Audi 2016). Now Audi offers a huge car variety.
Audi has skimming or premium pricing. The pricing is fully justified looking at the brand image and the quality of the car (Dickson 2014). Audi is trying its best for rationalizing the price and providing options of innovative finance through the Audi Finance of their own making the attractive the purchase.
Audi is involved in several ventures of sponsorship and sports, like sponsorship of some Italian football team. This brand manages for keeping itself in the public eye. Audi never participates in the mass marketing because of its niche market (Hollensen 2014). Instead of it, the automobile brand advertises only in the very premium component.
Audi has a global presence and it continues to become the motor car’s prolific seller. Audi has investments and set out prime plans for achieving goals of long term (Karunakaran 2011). The brand continues to develop in the Asian countries (Audi 2016).
Mercedes always manufactures the high quality and world class tracks, coaches, buses and cars those are renowned for their luxurious nature. In the marketing mix of Mercedes, Product is the strongest P (Mercedes-benz 2016).
Mercedes deals in the niche segment while the customer is very much concerned about the worth they are achieving on the cars more anything else (Lancioni 2015). The organization has a wide structure of price globally ranging within $30000-$100000, based on the model (Mercedes-benz 2016).
Mercedes has maintained accessibility of the customers to increase interaction with its target market through the following (Mercedes-benz 2016).
Print Media
Television advertising
Offer warranty under outstanding conditions
Building outstanding customer service at its sale’s point
Social media
Online advertising
Mercedes distributes their cars all over the world (LaPlaca 2014). It desires for changing the brand perception and repositioning it so that it more acceptable to the young generation.
BMW began their journey with fundamental models. However, they soon progressed towards advanced engineering (AG 2016). Now the cars of BMW boast of potential engines, a promise of reliability and safety, fantastic speed and extra ordinary pickup (Richter 2011)
BMW is a premium priced automobile organization. The prices of the cars vary based on which model, extras or series the buyer desires on purchasing (AG 2016).
BMW does the promotion of their brand new cars with the most amazing print advertisement, out of home advertisement, television commercials and now through the online advertisements. The major features regarding promotion in BMW’s marketing mix are as follows (AG 2016).
Top of the mind positioning in the car brands
BMW relies more on the pull strategy more than the push strategy
Strong brand pull for the outstanding marketing over the time.
The company has highly skilled employees working for the company in every field, from customer helpline staff to mechanics (Shapiro 2012).
There are three types of retail distribution strategies. Three of the car brands excluding Ferrari use the inclusive distribution strategy, because in this industry customers have a range of acceptable cars to select from. In case of Ferrari, manufacturers have a limited number of outlets that is they use the selective distribution strategy. Audi utilizes the exclusive distribution strategy because they manufacture different cars for different geographical area.
Four of the automobile brands have utilized excellent online distribution strategies. The social media websites have become their major root of promotion of their products. Ferrari is such a brand that is not available in most of the countries but still most of people around the world know about the car (Shapiro 2012). It has been possible because of their unique online distribution and marketing strategies. Now, their cars can also be got over the internet. These unique features have made the four brands so much successful.
These exclusive distribution strategies always become the reason of the success of the four brands. People can afford an Audi or a BMW car in terms of their monetary condition because they manufacture cars targeting both the middle to high income people. On the other hand, the exclusive online distribution strategy and the excellent quality influence their target market. The online promotion of the Mercedes cars regarding the car performance is seeking more customers day by day.
The study has implemented a Smooth Discussion Of The Comparative Marketing Management Structure Of The Four Renowned Automobile Brands. From the overall discussion, it has been found that the cars manufactured by four of the brands are very expensive. However, middle class people can afford Audi, BMW cars where Ferrari is out of their reach. On the other hand, performance and reliability vary for these different four brands. When the matter of promotional strategy is considered, then it must be said that in spite of being very expensive, four of the brands especially Ferrari are known to all people around the globe. Such popularity can be gained with the effective marketing management that the four car brands often do.
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