Table of Contents
2.0 Marketing techniques for Car Dealership.
2.1 Aims and Objectives.
2.2 Market segmentation.
2.3 7Ps Marketing Mix.
3.0 Importance of market research to create a marketing plan.
4.0 Cultural differences that can impact the effectiveness of their marketing messages.
Cohen (2015) said that the term ‘Marketing’ means to create, explore, and deliver values for a business to achieve the needs of its target market. Marketing identifies potential and target customers’ unfulfilled needs (Kotler and Armstrong, 2017). As the UK Marketing Manager recently I have been selected for a Car Dealership chain that operates its business operations across the UK. As a marketing manager, I have been asked to create a leaflet that helps local branches of car dealerships to understand how to market their products and services.
2.0 Marketing techniques for Car Dealership
2.1 Aims and Objectives
The key aim of the Car Dealership is to develop new products and services for a new market.
- To increase the revenue up to 5% by June 2020
- To develop at least two new products and services by December 2019
- To maximize the business operations at least in a new market
2.2 Market segmentation
Blythe (2016) stated that market segmentation determines how a business organization segments its customers in small groups by focusing on their different characteristics including income, age, personality, behavior, religion, culture and others.
Palmer (2015) said that segmentation is the marketing process that helps marketers to divide their marketplace into different small segments that are accessible, definable, profitable, and actionable. Segmentation permits a marketer to modify its products by focusing on the customers’ desires, needs, and buying capability. The market of Car dealerships is segmented on different factors such as demographic, psychographic, and behavioral factors. Differentiated targeting strategy is mainly used by Car Dealership to target its adult customers who have a desire for cars. On the other hand, the age group of the target customers is between 25-50 years, as well as the target customers, are from the upper-middle class and luxury class who have the ability to buy a car.
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|Market Segmentations of Car Dealership|
Market Segmentation of Car Dealership
|Psychographic||· Middle class and luxury class|
|Behavioral||· Customers who look for branded and quality cars|
Table: Market Segmentation of Car Dealership
Kotler et al. (2014) said that ‘Targeting’ is the marketing term that means to break down the markets into a number of segments based on the product and service ranges. Differentiated targeting, undifferentiated targeting, customized targeting and concentrated targeting are the key types of targeting.
Diagram: Targeting strategies Source: Kotler et al. (2014)
Differentiated targeting strategy is mainly used by Car Dealership for targeting its customers. Car Dealership’s main target customer is adults who have a desire for quality and branded cars.
Targeting strategies of Car Dealership
|Product ranges||Target customer segments|
Table: Targeting Strategy of Car Dealership
|Poor marketing activities|
|Diagram: Positioning strategy for Car Dealership|
|Strong presence in the Car Dealership market|
|Less presence in the market|
|Increase in marketing effectiveness|
|Car Dealership (January 2019)|
|Autopark UK Car Dealer|
|Car Dealership (December 2019)|
|Luxury Car Dealers UK|
|Car Dealership (June 2019)|
Blythe (2016) stated that marketers discover different strategies to position themselves as the top position in the competitive marketplace. Car Dealership uses the ‘Positioning’ marketing strategy to create a good image in the mind of its customers. The positioning strategy of the Car Dealership is given as follows:
2.3 4Ps Marketing Mix
The marketing mix is the key term of marketing. The marketing mix is the operational part of the plan of marketing (Kotler et al., 2014). Marketing mix refers 4Ps means product, price, place and promotion.
A product can be an item or a service that is mainly offered by the marketer to its customers for sale (Palmer, 2015). The main products of Car Dealership are the quality and branded cars.
Kotler et al. (2014) said that price is the amount or quantity that is given by one party to another party in return for different products and services. Car Dealership offers branded and quality cars to its customers so the price of the cars is expensive. In addition, a Car Dealership focuses on several factors to determine its pricing strategy including the reputation and pricing strategy of its competitors.
Blythe (2016) stated that place is the location whereas the transactions of the businesses are executed with the customers. Car Dealership has set its business in a convenient place such as central London to make its business transactions easier and target more customers.
Kotler and Armstrong (2017) said that promotion is the marketing term that is mainly used by marketers to inform the target audiences about their products, services, and brand. Car Dealership promotes its products and services to its customers by using a number of methods including its own website, SEO (Search Engine Optimization), Paid advertising, Social media marketing, Billboard Ads and public relations.
3.0 Importance of market research to create a marketing plan
Palmer (2015) said that the term ‘Market research’ can improve both the marketing plan and marketing strategy of a business organization by providing concrete feedback about the products and services. According to Market Research World, market research is the systematic, way of the business data regarding the target market, business environment, and competition. In addition, market research permits a business organization to make the targeted marketing plan or strategy for its business. Kotler et al. (2014) said that this marketing plan can improve the sales as well as customer satisfaction of the company. Moreover, market research can be applied to create a marketing plan that helps to evaluate the ideas of new products, market position, and product performance. Thus, it can be said that market research is very significant to develop or create a marketing plan.
4.0 Cultural differences that can impact the effectiveness of their marketing messages
Cultural differences refer to different behaviors, beliefs, practices, expressions and languages that are measured uniquely to the members of a particular national origin, race or ethnicity. To develop an effective marketing or marketing strategy, a business organization has to focus on the cultural differences of the customers to introduce or market a new product or service (Palmer, 2015). The marketers create effective decisions about the consumption of the products by focusing on the cultural differences of the customers. Different cultures have different beliefs, choices, values, and tastes on different products and services. Thus, different cultures of people can affect developing or create a marketing plan for a company’s products or services.
It can be concluded that the first part of this assignment has identified the aims and objectives of a Car Dealership. The second part of this assignment has explained different marketing techniques of Car Dealership. The third task of this assignment has described the importance of market research to create a market plan. The final task of this assignment has described the impact of cultural differences on the marketing messages.
Blythe, J. (2016) Principles and Practice of Marketing. 3rd Ed. Boston: Thomson Learning.
Cohen, H. (2015) 72 Marketing Definitions. Available at: https://heidicohen.com/marketing-definition/. [Accessed on 14 May 2019]
Kotler, P., Wong, V., Saunders, J. and Armstrong, G. (2014) Principle of Marketing. 12th Ed. London: Pearson Education Ltd
Kotler, P. and Armstrong, G. (2017) Principles of Marketing. 13th Ed. London: Pearson Publication Limited.
Palmer, A. (2015) Principles of Marketing. 9th Ed. Harlow: John Wiley and Sons.