Marketing Sample Essay

T equal to(p) of Contents executive compact 2 Introduction . 2 securities industry invention and Auditing 4 b angiotensin-converting enzyme up epitome . 5 Strengths 5 Weaknesses 5 Opportwholeies . 6 Threats 6 grocery store ramble place Conditions .. 7 The 4Ps of trade .. 8 Price 8 Products 10Place .. 10 Promotion .. 10 Recommendations . 10 cobblers last . 12 Works Cited .. 13 Audi Executive Summary Audi is a bulls eye of vehicle that is manufactured by a German automobile corporation, ranging from super-mini to cross over SUVs, attach to by various eubstance styles as closely as diametric ranges of grocery store expenditure. Audi is leveled on the same brand as the Volkswagen convocation (Oneighturbo). Audi is named after its founder- August Horch.Horch instrument to listen in German and on translation it means Audi in Latin. though the Audi headquarter is in Ingolstadt, Germany, the brand is tradeed and cognise world great. This groundup volition give mai n trouble on merchandising the brand Audi, in regard to the extend, securities industry segmentation, the size and the development Audi food food market, market psychodepth psychology regarding strengths and weaknesses as s come up as fronting recommendations. The trade st regularizegy of Audi is to underscore the ability of the simple machine to beat separate automobile manufacturers in the global market. Audi is a global brand and is astrayly embraced furthermost and aside from the association headquarters inGermany. The management of the Audi smart range has been at the forefront of better and evolving into peeled models since its inception. The machine status has to be improved by all standards in methodicalness to avoid being over shown by opposite naked car ventures in the war-ridden market. Introduction August Horch (1868-1951) realised an automobile follow in 1899 prototypal as A. Horch & Cie. in Cologne Germany. However, due to the dispute bet ween him and the advisory board, he quit the guild. Later on, in 1909, Horch conventional a nonher automobile partnership kn procl bet as Horch Automobil-Werke GmbH (Baldwin and Laban).In 1910, the initial Audi automobile event A 10/22 (16 KW) Sport-Phaeton in Zwickau (audiusa). Horsh continued to face tribulations and was evicted unwrap of the company he had played an grand procedure at creating (Audi Website). He proceeded to start a youthful company in Zwickau. The Audi car first went to the market with an inclined- quadruple engine, a 2612 cc model, thereafter a 3564 cc, and wherefore 4680 as headspring as 5720 cc models came into the market (Baldwin and Laban). Volkswagen is the largest sh beh centenarianer of Audi. It owns over 99 take of the boilersuit shargon capital.Furthermore, Volkswagen, in its own financial statements, owns the consolidated accounts of Audi. Audi however was at the helm of the heading the Audi Brand assort which is a subdivision of the Volks wagen group, consisting of SEAT and Lamborgini, that more often than not focused on sports car (Volkswagen Group). The Audi has quadruplet rings as its badge, which is considered to be peerless of the oldest emblems of automobile manufacturing company in Germany. The four badges symbolyze the merger of four automobile manufacturing companies videlicet the Audi, DKW, Horch and Wanderer. These companies form the connerstone of the menses AUDI AG (Volkswagen Group).The symbol below shows how the badge looks like The old logo used by Audi until 2009, manners of the Audi Website. The Audi Company today is on-line(prenominal)ly having a write up of exalted woodland, immutable issue of cars. Their slogan, Vorsprung durch Technik, importantly implies Progress by dint of with(predicate) engine room (Volkswagen Group). railcar users abide been yearning for utmost- gauge, durable and efficient cars, and apparently, this is what the company has been giving its clients. It is deserving noting that the automobile market is very competitive and the company annot downplay this notion, if it wants to hold off the current status or change magnituded barters in the global market. mart plan and Auditing It is signifi dissolvetly imperative for any cable to commit a plan for the future day in an effective manner so that it may be successful. It is equally consequential for any product line to have a well formal and startlined selling plan in decree to well sell its harvest-times. These are precautions that are carried fall out by every firm. In this regard, Audi, a global firm, is not left rear end starting from the moment it was established up to today. Audi has been effectively doing this by means of and by selling its model.Through marketing the Audi model, the company sets down easy to get through objectives. The firm does the current position auditing as well as having policies of developing and implementing the current achievable ob jectives. Audi can achieve these through the following * set corporate objectives much(prenominal) as dinero and product * meeting information through market interrogation * Assessing the current situation, referred to as the market analysis * Production of fig out analysis (strengths, weaknesses, opportunities, threats) * Setting objectives of the market, such as market share, tax income among others * Implementing market plan Using reviews through market research SWOT outline for Audi The SWOT analysis gives a partition of the strengths, weaknesses, opportunities and threats that an organic law is faced with (USDA, 2009). The strengths and weaknesses base their analysis on the internal factors that affect the organization while the opportunities and threats focus on the impertinent factors. Strengths One of the main strength the company relies on is the well reputation that it boasts of in the worldwide arena. The Audi Company has the capacity of producing a car of hi gh quality as well as using insurance premium price.The sp final result power is large since they have built the brand over a long period of time, and as a global company, have been pull inable in the market during the past period. The company is able to produce quality cars and has a huge marketing budget, through promotional material of its brands, through addition of luxurious features, and so having benefit in the otherwise competitive market. In addition, the company relies on the success and the good reputation of the previous models, which included the A6, as well as the quality of the cars, which curl up higher prices, in turn ending up building the overall company reputation.Weaknesses The company has a challenge of having to delegacy exorbitant prices for its cars, including A6 to summit the be, with the eventual aspirations that strength clients depart cater for these costs. The company, in battle array to effectively fight other competitors, has to mark off that they manufacture naked as a jaybird models through technology and innovation, which during many occasions prove to be quite expensive. This pull up stakes ultimately overhaul to high set in order to cover the costs of takings, transportation and costs of promotion. OpportunitiesAudi has in the most recent times released market price for its cars that none of its major(ip) competitors in the market have had an hazard of meeting, thus lucreing an ample part of the market. The Audi, which has been in the market for many years, has tremendously been growing, though other competitors have had to pull out of the market. The good economic environment is an hazard for Audi to venture into the global market. Threats Audi is faced by the threat of its other main competitors let go new models of cars immediately after it releases its own, thus attracting new potential clients away.Other highly regarded competitors in the automobile industry such as the Mercedes and the BMW have been having a good reputation, and Audi have to fit that this threat is contained. One of the models, A6 has been having an waxy product and the price fluctuation may result in revenue loss. Consequently, the SWOT analysis enables the Audi Company to embrace one of the following methods * Matching Audi Company may have to build on its strengths and take the advantages imposed by the opportunities, or * conversion the company may resort to reating new and innovative strategies that pull up stakes overturn the weaknesses into strengths and finally into opportunities. Market Conditions Besides using the SWOT analysis, Audi Company go away employ the testing of the current market conditions prior to producing a good marketing strategy. Market examination can be done through carrying out research in telling to the opinions of the potential customers. The following are the major issues to be cross-examined a) Market size this implies that Audi go out have to look at the ov erall size of the market, through measuring the market in depots of volume or set (price x volume).In this regard, it is equally important to ascertain that Audi owns a large market. b) Market share this is the total sales destiny that a particular brand/product has as compared to the total market. In 2003, Audi boasted of 2. 7% of the total market share in the United Kingdom. From the initial perspective, this can pct of market share can be deemed to be small, but when several factors are put into consideration, say, the number of automobile companies in the market, as well as the market share that Audi has in Germany, which is depicted to be three times the market share it had in the United Kingdom (Niedermeyer). ) Market proceeds this refers to the actual rate of increase in the size of the market. Audi has been experiencing tremendous growth in market size. For congresswoman, in the 2002, 2003 period, Audi had significantly increased the sales of its brand in the United Kin gdom by 6. 9%. however, this only portrayed the rise in market share by 0. 6%. this therefore means that the Audi market is experiencing recommendable growth at a faster rate (Niedermeyer). d) Market segmentation this is the appeal do by a brand to distinct move of the market, generally in unlike ways by transfrming the market mix.For instance, Audi Company has been on the forefront of changing the features of the Audi car so that it appeals to different individuals, such as women, youth, sporty individuals among others, through re-inventing different body size and engine size. The 4ps of market The 4ps of marketing is a marketing tool that looks at how the business is positioned to line the benefits of marketing. The 4ps are the price, product, place and promotion (Ehmke, Fulton, & Lusk, 2009). The graph below is a federal agency of the benefits of using the 4ps of marketing (Ehmke, Fulton, & Lusk, 2009).Price The price of a product is a big(a) determinant of how the market responds to the product. Factors that affect the set of Audi car include costs the company exit be obliged to cover the costs in order to make profits. For instance, making and testing Audi car is quite expensive, thus its high set (Huber). Pricing of Audi is also affected by the price elasticity of demand this implies the sensibility of the product to change the price. Therefore, if the price is sensitive, minacious of a products price willing lead to turnover increase.Audi does not experience price elasticity, hence the high set. High pricing is directly conjugated to heavy branding, limited competitors (lack of new automobiles in the A6 class), having a selling point that is unique, high unit cost since constructing prototypes,testing the product as well as the overall production of the product is quite expensive quality design, and having limited distribution ( Audi is mainly interchange in the showrooms and via the internet) may, among others also increase the pricin g.There are quite a number of pricing methodologies that Audi may embrace, including Price skimming-this is the dish out of ambit the initial price high so as to achieve maximum profit that is short-lived,-penetration pricing- in this case, Audi may set lower prices in order to gain the market share. When the market share is gained, the prices will eventually be hiked, competitor ground pricing-Audi may resort to move the same prices as its competitors, demand ground pricing- when the demand is high, the prices are hiked. The company approximates the expenditure of consumers on its products.In this regard, the company will use the history of the previous sale of A6, cost plus pricing- a firm may decide to increase a certain amount to the unit cost, a simple and a best-selling(predicate) method. Audi may resort to use thi method so that it ensures that cars are not change at a loss, predatory pricing- this is the process of setting prices at a lower level with the main aim of driving away other competitors, eventually change magnitude the price when the competitors are out of the market, price discrimination- this method ensures that different prices are charged for different segments of the market, for instance diplomatic personnel, overnment personnel, civil servants, and finally, psychological pricing- this is whereby the consumers perception of the the pricing is given attention. Consumers would discover that they are not getting value for their money when the price is set high, and on the other hand, when the price is too low, they would thik that the product is of poor quality. Product The product is what the customer buys, and therefore it inevitably to be mark well, have an attractive cover and match the expectations of the customer (Volker). The product moldiness be of high quality.Audi has a good performance, has example features such as air conditioning, CD player, cruise control as well as good reliability. Place The place refers to the location of the business, and how reachable it is to the customers (Londre), or the contribute of distribution. Audi is a company that is well established in the global market, thus needs no big expansion into new markets. Promotion Promotion refers to the communication regarding a product so that customers are advised about it. It is the creation of awareness (Londre).Audi is mostly promoted through advertisements through the T. V, automobile magazines and billboards. This will eventually increase the sales since the customers will have been informed about its features and price. Recommendations Audi is a brand that is recognized world wide and as such should endeavor to retain its current status, as well as bringing innovative technological cars in the market. This therefore means that the company should sweep new marketing strategies that many a times are used by various other companies in marketing their goods and services.For instance, different marketing strategies should be adopt for different Audi models such A6s marketing strategy ought to be different from the instead cheaper, though well established A3 model. even off though, as mentioned in the preceding parts of this paper, Audi has a wide global market and therefore should not endeavor in expanding its market place, the product should strive to pass through the alert market. It is imperative to increase the market share for Audi through venturing and penetrating the active market, through changing marketing mix.This can easily be achieved through new product development and diversification of the existing market. Audi should also resort to developing a new car/product for the already existing markets. However, Audi has been endearing to achieve this culture through manufacturing of the new A6 model, though undefendable to the already competitive car market. The process of new Product development starts with both(prenominal) internal and external generation of ideas. sexual process i nvolves research and development, while, on the other hand, external processes involve investors, consumers and competition.Audi Company should then put these ideas into analysis in order to ascertain their feasibility, therefore developing them through methods of prototypes, before testing for quality and golosh of the products. Since Audi is competing in the massive world wide market, it is imperative for the company to maximize on the promotion of its products. In this regard, the A6 will be accorded several advantages over its main competitors, since the buyers will be fully aware of the offers that Audi has. The all-embracing promotion should be done by maintaining the already reputable brand name, hence improving sales.Furthermore, if the Audi brand name is well-kept through A6, then the model will have a bright future. It is recommended that Audi strives in investing in maintaining the current market for its A6 product. This will eventually lead to increase the market shar e as well as achieving long term profit margins and the gaining the set internal and external targets. In order to achieve this, investment in the long term must be carried out so that short term profit is reduced. Competitive pricing must well be established in the already competitive market, so that the potential buyers are not scared away by the exorbitant prices.The company should ensure that they minimize the costs, so that the innocent consumer is not made to pay for it. Conclusion Audi is a company that manufactures durable and high quality cars for a long period of time, and this reputation should be withheld by the management. When the mentioned recommendations are followed to the letter, then the already reputable Audi Company will increase its market share, eventually increasing its sales. The management should ensure that the current market share is increased through new innovations, thus not giving fair to middling space to its competitors. Works Cited Audi website htt p//www. udiusa. com/us/brand/en/about/main/history. hypertext markup language Baldwin, Nick and Brian Laban. The World Guide to Automobile Manufacturers. Facts on File (1987) 43-44. Brand family tree. audiusa com. Retrieved 21 September 2011. Ehmke, C. , Fulton, J. , & Lusk, J. Marketings iv Ps First locomote for New Entrepreneurs (Revised ed. ). Warren, Michigan, USA SAGE Publishers, 2009. Huber, Peter. Manufacturing the Audi Scare. Manhattan make for for Policy Research, 1990. Londre, L. S. Marketing, IMC, Advertising, Promotion, Media and More (Revised ed. ). Perth, Australia Wiley & Sons, 2009. Niedermeyer, Paul. The Audi 5000 Intended inadvertent Acceleration Debacle. The Truth About Cars ,2010. Oneighturbo. Oneighturbo. 10 December 2009. Oneighturbo. com. 21 September 2011 . felo-de-se Prevention Resource Center. Instructions for Conducting a SWOT Analysis (Revised ed. ). Newton, MA, USA genteelness Development Center, 2009. USDA.. SWOT Analysis A tool for making bett er business decisions (Revised ed. ). Perth, Australia Routledge, 2009. Volker, M. 4 Ps f MARKETING. Ed. Illustrated. Southfields, Michigan SAGE, 2010. Volkswagen Group Business lines and markets. Volkswagenag. com. Retrieved 21 September 2011.