Kim Stevenson (1110690)
University Canada West
Professor: Rui Silva MRKT 201
Date Assignment is Due: June 19, 2015
Current environment and the marketing mix components
Castor Motors is a prestigious car manufacturer based in Europe and has manufacturing facilities in Germany and France. The company produces sports and luxury cars using quality materials and maximum craftsmanship. Currently, the company manufactures 100 cars every year and the parts are joined manually by skilled craftsmen. Since the company was established in 1910, it has grown significantly by designing and producing new models of sports and luxury cars. In the year 2012, the company had a market share of 7% of the total cars sold from Europe. Castor Motors is currently measures in place to ensure that it is able to increase its market share to 10% by the end of 2015.
The marketing components are important factors that assist in analysing the strategic position of a company. According to Lamb, Hair and McDaniel (2011), marketing mix refers to a combination of product, place, promotion and pricing strategies in order to achieve objectives in a market. The product strategy used by Castor Motors involves that of highly differentiated products. The cars produced by the company are highly exclusive compared to the models being produced in the industry.
The place strategy currently being used by the company is having its own sale point and distributes the cars to very few dealership stores. Most of the cars are produced on order and so most of the cars are sold straight from the company sites. The promotion strategies used by Castor Motors include using celebrities, sports personalities and famous businessmen to advertise the cars, advertisement on TV and magazines, as well as sponsorships. The pricing strategy used involves offering expensive and highly differentiated automobiles to attract the high end and affluent customers. This has created a notion that the company produces high quality automobiles only for those who can afford it.
The effectiveness of the company’s marketing mix
The marketing mix chosen by the company has been effective in enabling the company maintain its market share. The heart of a marketing mix is the product strategy as it not only determines the physical unit but also the company brand and image, package, value, among other factors (Lamb, Hair & McDaniel, 2011). Customers purchase goods because of what they mean to them in terms of status and quality hence product strategy is crucial in marketing mix. The product strategy used by the company is important as it has shaped the company’s strategy. The product strategy is definitely reinforcing the company’s positioning strategy which is being a prestigious car manufacturer. Producing and selling prestigious automobiles that are highly differentiated attracts certain types of customers who are willing to pay for the quality automobiles. By offering exclusive products, Castor Motors has been able to convince the market and customers how different their products are (Brooks, & Simkin, 2012).
Place strategies involve physical distribution of goods and services and ensure that the market is able to access the finished product on time. The place strategy used by the company is not as effective. The company mainly sells its products straight from their production site or through the few dealership stores. However, if the company increases its production capacity, then the current distribution sites may not be efficient. This would mean that automobiles produced by Castor Motors would not be available to customers when needed.
Promotions strategies used by most companies in the motor industry include advertising, public relations and personal selling. The main role of a promotion strategy is to inform, educate and persuade the market on the benefits of a product or brand. A good promotion strategy can increase sales and enable a company maintain and…