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A COMPARISON OF MARKETING STRATEGY (FORD MOTOR COMPANY/ROVER GROUP)

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Introduction

MODULE: PRINCIPLES OF MARKETING A COMPARISON OF MARKETING STRATEGY (FORD MOTOR COMPANY/ROVER GROUP) Rover Background The Rover Group Ltd is the UK's largest motor vehicles manufacturing company. In 1994 British ownership was transferred to BMW who purchased the company from British Aerospace for 800 million pounds. This strategy enabled BMW to enter the small car market and diversify without adversely affecting its reputation within the luxury car market. Rover's production cost would be reduced as a result of the take over improving its competitiveness. The entry of efficient Japanese and European firms to the car market has resulted in over capacity benefiting customers who seek value for money as car manufactures compete for sales. The take-over of Rover by BMW is relevant to the topic of this essay because of its contribution to Rover's marketing efforts. For example savings made by integrating services would help enable Rover to price its products more competitively. Market Rover's market is made up of segments consisting of people who have similar purchasing habits and characteristics and products are designed to appeal to a specific segment. Marketing tactics (eg advertising, promotions, etc) are designed to support Rover in targeting its products to appeal to specific groups of customers. ...read more.

Middle

The company's global marketing approach is developed at its headquarters in Detroit, USA. Its overseas subsidiaries then create their own marketing strategy, for the market they operate in, which supports the global plan. Ford has seen its European market diminish over the past several years as a result of high costs and low sales which have been eroded by fierce competition mainly from Japanese car manufacturers. Ford has reacted by implementing a plan to re-organise its global strategy called 'Ford 2000'. Instead of plants manufacturing all models of cars for their market vehicle centres are being established to build a limited range of models for the world market. The organisational structure will change from organisation by function to teams working on models of car. It is envisaged that these changes will reduce production costs and overcome horizontal communication barriers. The market Whereas Rover targets the higher end of segments within the car market and stresses quality as a justification for charging higher prices, Ford's products appeal to the middle market segment. Ford's advertisements tend to stress the fuel efficiency of its vehicles and the incorporation of technological features which are found in higher priced competitors products. ...read more.

Conclusion

The Ford Motor Company's vehicles are carried under an umbrella brand which tends to be associated with averageness. Every car owner has either owned or known someone that has owned a Ford car at some time in his/her life. The brand has therefore become a generic losing its value - similar to Bic which is often used to refer to a biro and hover to refer to a vacuum cleaner, so Ford is sometimes used to refer to the average car. Ford's products are usually perceived as being reliable and good value for money and so attract customers located within the middle of the market in terms of their purchasing power and behaviour. Ford has existed for a long time and the original objective of its founder to produce a car that everyone could afford may create an association, in the minds, of potential customers, of its products being cheap and practical. In the market for higher quality products the name may adversely affect the company's ability to compete since the marketing mix is not consistent - high price, high quality of product, intensive promotions, a brand name which conveys values for money and low costs conflicting messages! To secure a significant share of the market for high quality, luxury vehicles Ford would need to change either the brand name or the concept it conveys to customers. ...read more.

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