...social class, age, gender, race or ethnicity as they affect consumer behaviour in my chosen market. The market I have chosen to investigate is the automotive/car industry. Also I will be discussing how a marketing manager might improve their marketing through use of my analysis of sub-cultural factors. Automotive Industry Outlook Automotives are an essential part of the daily life in the UK; about 75% of households own at least one car. Despite this, the Motor Vehicle Manufacturing industry has had a bad time recently. Industry revenue is forecast to stagnate at 0.1% per annum growth over the five years through 2011-12 to reach £37.4 billion. Car and commercial vehicle production is expected to decline by 2.5% per annum over the five years through 2011, to about 1.45 million vehicles. Revenue is expected to grow by 4.2% in 2011-12 but this positive performance is nothing to be complacent about. Competitive pressures and increasing complexity have led automotive companies to look for an edge wherever they can find out. Improved customer insight into vehicle shopping and buying behaviour can provide that valuable advantage. Cultural Factors Cultural factors have a significant impact on customer behaviour. Culture is the main reasoning behind a person’s wants, needs and behaviour. Marketers are always trying to spot cultural shifts which might point to new products that might be wanted by customers or to increased demand. For example, the cultural shift towards greater...
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...------------------------------------------------- 1) Analyze the buyer decision process of a traditional Porsche ------------------------------------------------- customer. ------------------------------------------------- ------------------------------------------------- 1. Need Recognition ------------------------------------------------- - Financially successful people, show themselves with the ------------------------------------------------- right car. Image of exclusivity. They want their car to represent how successful ------------------------------------------------- they are. ------------------------------------------------- 2. Information search ------------------------------------------------- – information search for the right car to represent how successful they are. .Strong and satisfying feelings. Low volume and increasing fragment auto market. creating an image of exclusivity. ------------------------------------------------- 3. Evaluation of alternatives - ------------------------------------------------- 4.Purchase decision ------------------------------------------------- – consumer expectation and satisfaction ------------------------------------------------- 5.Post purchase behaviour ------------------------------------------------- - loyalty ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ...
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...which is shown the symbol of success and luxury as well nowadays. The aim of this report, it performs an environmental and marketing analysis on this company which is demonstrated by the company background, micro analysis, macro analysis (PESTLE), SWOT analysis, marketing strategy and marketing mix are used in all organisations. 2. Company Background The history of Mercedes-Benz is entirely on auto-mobile design and manufacture from Germany. They are acknowledged as the inventor of the first auto car in 1886, and globally recognised as the world’s oldest car company. The brand is known for luxury automobiles, buses, and trucks. The slogan of the company is “The Best or Nothing” Mercedes-Benz Thailand company established in 1998. Mercedes-Benz of Thailand handles the importation, assembly, and distribution of passenger cars, and commercial vehicles. The company also provides full maintenance and after-sales services over the 50 years. 3. Micro analysis Company is able to control and determine the internal environment. Therefore, there includes the consideration of the micro environment. In addition, it can be analysed to strength and weakness of the firm in which used as a tool to create the comparison. Furthermore, all members of the micro environment help marketers to build a positive relationship with customers, competitors and company. 3.1 Customers Mercedes-Benz definitely appeal to groups of well-off customers, which is inclusive of upper class and...
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...that go by the same name, “Mercedes-Benz.” They are mainly luxury vehicles and they include: “Sedans, Coupes, SUVs & Wagons, Convertibles & Roadsters, Hybrid & Electric cars, trucks, coaches and buses”[1]. Mercedes-Benz has a strong presence in the motor industry based on its diversity of production. Its vehicles have state-of-the-art luxury gear with impeccable customer service. The targeted customer base for this brand includes the middle and the high class due to the vehicles’ luxurious nature. 1. Purchase Process: The following are the steps for purchasing a new Mercedes Benz type of vehicle a. Research on model Mercedes-Benz always encourages its customers to research about the car models before they make the purchase. This can be done in person, by visiting the car outlets or doing it online. In order to purchase a Mercedes-Benz car model, a customer is required to select the model of choice from a preferred dealer-outlet after agreeing on the qualities. Dealers are found in various collision centers that are certified by the brand. Alternatively, they can also be bought via the internet through their e-commerce websites. The brand uses two main websites. The first is Mbusa[2] and Mercedes-benz.com[3]. These two sites have the vehicle types. The models differ on price, gas mileage and internal features. Finally settle on the car model. b. Get pre-approved (online or offline) Customer is required to be pre-approved...
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...challenges it created and the effect it had on BMW. Firstly this decade saw Globalization, regionalization and market convergence in the automotive industry– Due to the effects of liberalization, national markets became increasingly globalized. Though this gave companies a chance to expand to new markets, but it also increased the threat of new entrants or increased competition in traditional markets. Hence all car manufacturers were experiencing the boons and banes of the biggest buyer market in history. Next we see the emergence of increasingly diversified consumer aggregate patterns of behaviour – Consumers were no longer accepting standardized products, but wanted products that satisfied their individual requirements and tastes. Target groups thus had to be downsized by companies to attract customers by the products offered. However, because of the increased global competition with a stronger focus on price and not on brand loyalty, consumers generally did not reward companies only for their more individualized products irrespective of price. In other words the customers became price sensitive, were not ready to pay a premium for more innovative products, and used their bargaining power to become more demanding. As a result of these factors, automobile manufacturers had new demanding requirements within their field of activity. To help these opulent consumer generous financial schemes were also offered by banking institutions. All in all demand, growth and expanding opportunities...
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...Albion Motorcars Year 1 Decisions & Rationale Mission Statement Our mission mainly aims to satisfy all stakeholder especially customers and employees. For our customers, European market, we provide them a superior product by implementing focus on luxury features in all our car models with affordable price and superior service by always listening to ours customers’ voices. For our employees, we offer a higher salary and provide a skills training to increase their performance. Thus, keeping employees’ satisfied with their careers and directly related to a lower turnover rate. Objectives Financially we must look at profit figures as this is important at all companies. Based on current figures we should aim to break even by the end of year 2 and make a profit overall of £300million by the end of year 4. In terms of the market we should aim to have an overall market share of around 5% in the European car industry, based on the fact that year one forecasts around 0.5% market share overall if all target production is made and sold. Provided growth ensues it’s an entirely possible market share to hold. Socially, as a notoriously British based car manufacturer we should look to provide 4000 jobs for the people of Britain by the end of year 4. Chosen Market Segments – Description of the target customer and marketing strategy: Albion Motorcars’ brand is built around it being notoriously British. The word ‘Albion’ is the former name of the United Kingdom and we thought what makes a brand...
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...“why companies should go for outsourcing” 3. Effectiveness of advertising on real estate sector 4. Study on consumer expectations and perceptions towards consumer loans 5. Workers attrition rate at hotel industry is increasing. Study regarding this issue 6. Attrition rates at different sectors 7. Effectiveness and scope of employee referrals in the process of talent sourcing 8. Study of training needs across different industries 9. Study on creation of luxury brand 10. Strategies used to build successful Internet based customer services 11. Measuring the effectiveness of retail banking of a nationalised bank compared to a MNC 12. Conspicuous consumption 13. Study of awareness and acceptibility of UPVC windows and door systems 14. Opportunities of Financing the NANO’s in Bangalore 15. Changing trends in FMCG industry in India 16. A study of best HR practices in service industry 17. Fundamental analysis of Indian telecom companies 18. Study of consumer behaviour in automobile industry 19. customer buying behaviour towards insurance products 20. Promotion strategies followed in Insurance sector 21. Study on changing consumer preference towards organised retailing from un-organised retailing 22. study on “impact of advertising in B2B marketing” 23. Distribution network & general insurance industry 24. A study on distribution channels in aluminium industry 25. Study on strategies for promoting retailers’ brands 26. Study of operations & marketing of chemical...
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...Customers in Consumer Markets Customer, Consumer and Buyer The customer plays the role of buying products or services that they will need to renew later on in their life. This could be a fridge or a car or even furniture. A customer is very similar to a consumer however they only separated by the fact that the customer does not have to re – new their product as soon as a consumer. The consumer buys consumables such as food and cleaning goods that are used around the house; these products need to be renewed more frequently than the products a customer would purchase. A buyer or also known as a purchaser are responsible for buying products or services in bulk loads at a low price in order to make profit when those products are sold on; all of the major supermarkets need to buy as they all need a source of food and other products. All of these groups are needed in the system of business if money is to be made. Range Rover Discovery When Range Rover is marketing they take into consideration their business markets. The Range Rover Discovery attracts wealthy families; they do this by showing an image of a family in the car doing family activities such as camping. Another customer type is men. In their adverts they always show a man driving the car, this causes wealthy business men to buy this type of car. The final customer type for this type of car is people who travel a lot for business; Range Rover wrote on their website that with the Range Rover Discovery “every journey is a...
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..."why companies should go for outsourcing" 3. Effectiveness of advertising on real estate sector 4. Study on consumer expectations and perceptions towards consumer loans 5. Workers attrition rate at hotel industry is increasing. Study regarding this issue 6. Attrition rates at different sectors 7. Effectiveness and scope of employee referrals in the process of talent sourcing 8. Study of training needs across different industries 9. Study on creation of luxury brand 10. Strategies used to build successful Internet based customer services 11. Measuring the effectiveness of retail banking of a nationalised bank compared to a MNC 12. Conspicuous consumption 13. Study of awareness and acceptibility of UPVC windows and door systems 14. Opportunities of Financing the NANO's in Bangalore 15. Changing trends in FMCG industry in India 16. A study of best HR practices in service industry 17. Fundamental analysis of Indian telecom companies 18. Study of consumer behaviour in automobile industry 19. customer buying behaviour towards insurance products 20. Promotion strategies followed in Insurance sector 21. Study on changing consumer preference towards organised retailing from un-organised retailing 22. study on "impact of advertising in B2B marketing" 23. Distribution network & general insurance industry 24. A study on distribution channels in aluminium industry 25. Study on strategies for promoting retailers' brands 26. Study of operations & marketing of chemical goods...
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...in terms consumer tastes fashion, behavior and preferences. These were realized after a commissioned consumer research. This product initiative enabled the company to focus on the market segments where the company needed to concentrate in the future (Proctor, 2000). With the presence of market dynamism in terms of tastes, there arises a differentiated market with more focused segments. This means that any company keen on developing its market share has to take a strategic risk with as much market information as possible (Linneman, and Stanton, 2001). The act of amalgamating future market differentiations with product development is a very risky affair. This involves the carrying out line extensions while at the time ensuring that the customers are not confused and thus ending up losing them (Randall, 2001). The success of The BMW is because of their rigorous focus on the brand’s position combined with...
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... |592 |610 |654 |686 |700 |18.3 | |People in their thirties |737 |761 |794 |817 |833 |13.0 | |Middle-Aged Adults (40 – 64 years) |1,542 |1,628 |1,735 |1,799 |1,853 |20.1 | |Older Population |368 |391 |418 |443 |455 |23.9 | Table 1.1a Consumer Segmentation: 2006 - 2010 According to the Social National statistic Euromonitor International, Singaporeans are beginning to settle for the desire of luxury. This can be shown in Table 1.1a. Firstly, the number of household with annual disposable income have increased, thus more household are able to afford more pricey items. Secondly, Singaporeans have become more aware of famous brands and fashion labels, due to their exposure to widespread advertisements in lifestyle magazine. In this case,...
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...CONSUMER BEHAVIOUR IN DURABLES- PASSENGER CARS For the Consumer Behaviour project, we have surveyed 41 (27 male and 14 female) people to understand the buying decision process of the customers while purchasing cars. The objective of the study is to collate the data collected and to analyse the results to understand the buying behaviour of the customer’s and thereby formulate the marketing policies for our new brand in passenger cars product segment. Objective: To launch Honda’s diesel car CONSUMER BUYING PROCESS: * Stage 1: Problem recognition - The inputs are functionality, safety, family size, income and peer pressure. * Functionality : it mainly includes engine performance, for example power generation, displacement, mileage and all. * Safety : cars are considered to be safer than two wheelers. * Family size : when family size grows from two to three or four, then need for car is felt as on two wheeler is meant for family of two. * Income : with increase in household income a family consider of purchasing a new car. * Miscellaneous : on certain occasions such such as marriage in family or promotion of a family member sometimes as a status symbol also act as trigger for purchase. * Stage 2: Information Search – Internet search, discussion with friends, family and sales executive. * Personal- Feedback from friends and family (22%) * Commercial- Reading material, online, advertisements, Sales executives (32%) ...
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... their first purchase of new product or brand in each of the following areas: Ø chewing gum Ø Sugar Ø Men’s aBer shave lo6on Ø Carpe6ng Ø Paper towel Ø Cellular phone and luxury car What are the differences among the three decision-‐making approaches? levels OF CONSUMER DECISION MAKING ¡ There are three levels of consumer decision making ¡ They are : Ø Extensive problem solving Ø Limited problem solving Ø Rou6nized response behaviour Extensive problem solving ¡ ¡ ¡ The process of a customer trying to get all the informa6on they need in order to be able to make a choice between different brands of a product that they want to buy Cost of products under this level is high LUXURY CARS...
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...capture this heterogeneous market for any product, marketers usually divide or disintegrate the market into a number of sub-markets/segments and the process is known as market segmentation. segmentation Thus we can say that market segmentation is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that difference between buyers within each segment is as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix. The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized marketing mix for all customers in this segment. Through segmentation, the marketer can look at the differences among the customer groups and decide on appropriate strategies/offers for each group. This is precisely why some marketing gurus/experts have described segmentation as a strategy of dividing the markets for conquering them....
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...major marketing challenges to implement this customized program were as below: * Regional and Global Manufacturing Strategy: In North America compared to Europe, customers wanted immediate delivery. Purchase of a car was a major decision and that meant there was a high emotional value attached to the purchase. Customers wanted to experience thrill and excitement attached to car purchase. To solve the problem of immediate delivery for North America and to maintain customer interest during the sales process, BMW team made significant adjustments at the plant, in BMW’s supply chain and IT systems. For X3 series, they even shifted their assembly line from Austria to South Carolina to reduce delivery time across continents. BMW‘s plant in South Carolina manufactured six different models including X5 and X4. For other models which are not manufactured in North America immediate delivery in few weeks would be difficult to achieve. As models manufactured outside North America meant increased shipping time between continents. So, the concept of “Dream It.Build It.Drive It.” Mass cutomization marketing campaign across all product lines was not a feasibl alternative. Also, Europe is a big market for BMW fleet of vehicles. Manufacturing new models just in North American plants meant higher delivery time for European customers and this could adversely impact overall sales. * Mass Customization: The potential range of optional choices for mass...
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