Marketing Overview

MARKETING OVERVIEW

2007

Marketing Overview

Introduction

Automobile industry provides an interesting figure since it does not only produce high-technology products but also become economic indicators . Currently , there are many automobile manufacturers in the world at any size , suggesting the increasing level of competition in the marketplace

Amidst the fierce competition in automobile industry , an automobile manufacturer must design distinctive and leading products that differentiate it from their competitors . In to win competition , a company should fulfill customers need by designing products that match their characteristics , which result

in the increased revenue and profit margin

However , at this time , producing superior products does not guarantee a company success . This is because , customers may buy a product based on emotional value (intangible value ) rather than tangible value . This situation suggests that a company should conduct various initiatives to embed the desired brand equity of its products in customers ' minds . This initiative refers to media strategies that involve target audience identification , selection of media and many others . Due to the variety of media that is available in a market , the initiative evolve into new term , integrated marketing communication method , that involve public relation , advertising , trade events , to name a few

Concerning the media strategies , this will discuss the strategies for a company . The selected company is Daimler Chrysler AG , a well known automobile manufacturer that targets high-end customers by delivering products (sedans , sport utility vehicles (SUVs , trucks etc ) that are completely different from their competitors

Prior to determining integrated marketing plan for Daimler Chrysler this will elaborate the global automobile industry , profitability performance that suggests the communication budget

Daimler Chrysler AG : Corporate Background

Industry

The global address for Mercedes Benz is HYPERLINK "http /www .mercedes-benz .com " http /www .mercedes-benz .com which further can reach other local web sites such as HYPERLINK "http /www .mbusa .com " www .mbusa .com for customers that reside in the USA . The market segment where Mercedes Benz competes is high end segment . In luxury cars segment , there are many well known players such as Audi , BMW , Jaguar , Honda , and Lexus . Some of them only produce high-end products but the rests also produce low-middle class products

Figure 1 Mercedes Benz USA website

Unlike consumer goods industry , the number of company serving high-end automobile products does not change so much . However , in to increase the competition level , there are some mergers and acquisitions between automobile manufacturers to improve competitive advantage like occur between Renault-Nissan and Daimler-Chrysler

Another interesting part that occurs in high end automobile industry is the fact that although the industry experience unfavorable sales decline by 3-percent due to external factors like the rise of oil price , the surge in materials etc , Mercedes-Benz keep recording string growth during the past several years

Overall Market

The high-end market is characterized by social status representation . In this manner , customers who buy Mercedes Benz and other luxury cars do not really buy the benefits that the products offer but also the intangible benefits

For Mercedes Benz , the high-end market is like an oil field since its product is saleable at any situation . According to Mercedes Benz , the company was able to sell more than 1 ,232 ,600 units , representing a significant increase than previous year when the company recorded the sales about 1 ,229 ,700 (Automotive Intelligence , 2003

In many details , in passenger cars segment , the company is able to maintain their figure in which during 2002 , Mercedes Benz sold 1 ,110 ,300 passenger cars , a considerably decline from 1 ,113 ,500 sold units in the previous year (Automotive Intelligence , 2003

Meanwhile , in other raising segment , the SUV (Sport Utility Vehicle where Mercedes Benz sells M-Class , the company also maintains their superior performance by selling more than 102 ,000 unit in 2002 , a 2 increases from 2001 that sold about 100 ,000 units (Automotive Intelligence , 2003

Marketing Mix

A good marketing plan not only focuses on public relations , advertising and communications , but will also reach into customer service , product support , human resources and more . In this situation , marketing mix becomes the heart of any marketing plan that composes of product , price promotion and place

Figure 2 Mercedes Benz Product Lines

Product

Concerning Mercedes Benz products (Figure 2 , there are six categories Sedans , Wagons , Convertible , Coupe , Roadsters , and Light Trucks . The cheapest segment in the Mercedes Benz product lines is C-Class sedans that sold from 30 ,000 in the USA . Meanwhile the expensive product lines are SLR McLaren that sold above 452 ,000 in the USA (Mercedes-Benz USA LLC , 2007

Price

As leasing luxury cars producers , Mercedes Benz continues pricing leadership practice in to differ their perceived value on their products . In the figure , we find that the cheapest segment is the C-Class that sold at 30 ,000 . Meanwhile , other products like S65 AMG are sold at 182 ,275 and SL65 AMG at 186 ,775 (Mercedes-Benz USA , LLC 2007

Promotion

Promotion or advertising deals with the way a company like Mercedes Benz promote or create responsiveness of the product in the marketplace In this manner , promotion strategy relates to communicating and selling the company 's product to customers . It includes TV and online advertising , trade shows etc

Place

Place deals with the way a company approach a customer . In this mix the company may approach a customer in to describe a product , its features , the benefits and many other things to convince customer and close the sales ( Marketing Mix . Concerning Mercedes Benz , the place refers to official web sites and authorized dealers all over the world

Basic Information On Their Size And Profitability

3 .46 1 .90

Media Strategies

Marketing Mix and Media Strategies

Because Mercedes Benz sells luxurious and classy cars in their communication or media strategies , the company should develop appropriate representation of the classy Mercedes Benz . This is in line with Pennington (2005 ) saying than culture or customers ' behavior is one influential factor in communications strategies (Pennington 2005 . Below are some media strategies for Mercedes Benz

Web Site

The key method to inform visitors virtually via website is Mercedes Benz should clearly define what customers expect when visiting Mercedes Benz web sites . Its official website HYPERLINK "http /www .mercedes-benz .com " http /www .mercedes-benz .com or HYPERLINK "http /www .mbusa .com " www .mbusa .com clearly show customers what is Mercedes Benz and other enriched features that lessen customers to look at Mercedes products

Advertising . It composes of several initiatives such as print (news , journals , and magazines , radio , TV

Figure 3 Mercedes Benz Fashion Week 2007

Trade shows . Trade shows typically held annually to enable Mercedes Benz to display recent breakthrough in their product lines . Since customers who visit trade shows have intention to buy a car , therefore , the company must design and built exhibition booth that represent the luxurious car they offer . Another type of show are Mercedes fashion shows to integrate the image of luxurious cars and luxurious fashion design (Figure 3

Direct mail and Marketing Collateral . It involves the distribution of marketing kits like brochures and mail which directly sent to customers This is more personal approacjh to target loyal customers (RD Marketing 2005

?149 ,776 ,000 ,000 , if we assume the communication plan for Mercedes Benz is 0 .2 of revenue , therefore , budget for Mercedes Benz advertising is about ?146 ,776 ,000

Table 1 Communication Plan

No Communication

Activities Budgets

) Time Schedule

1 Corporate Open House 18 ,000 ,000 Once every two months in the first year

2 Public Relations 32 ,000 ,000

3 Brochures , case studies , white s 32 ,776 ,000 White s of E320 CDI

4 Website Updates 2 ,000 ,000 Any time

5 Direct Mail 12 ,000 ,000

6 Automobile exhibitions /shows (includes souvenirs etc ) 50 ,000 ,000 November 8-13

Source (RD Marketing , 2006 Canada Business , 2005 )Reference

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Automotive Intelligence (2003 . Mercedes-Benz Extends Its Leading Position in the World Market for Premium Automobiles in 2002 . Automotive Intelligence

Barrios , Antonio . Market Research Enhances Business Decision-Making University of Georgia : Small Business Development Center

Canada Business (2005 . Plan Your Advertising Budget . Canada Business

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Mercedes-Benz USA , LLC (2007 . Mercedes-Benz Vehicle Showroom Retrieved March 24 , 2007 from HYPERLINK "http /www .mbusa .com /index .do " http /www .mbusa .com /index .do

Pennington , April Y . An American icon : some things just say "America like baseball , apple pie and . franchises . Here are 5 big ways franchising has affected our nation . HYPERLINK "http /www .findarticles .com /p /articles /mi_m0DTI " Entrepreneur HYPERLINK "http /www .findarticles .com /p /articles /mi_m0DTI /is_1_33 January 2005

RD Marketing (2006 . Creating an Integrated Marketing Communications Plan

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