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Aspects of Marketing

Car Industry-Porsche

Organisational Markets buyers such as businesses, govt (military kit), hospitals to develop production of other goods.

- Industrial consumption goods IN consumables/ raw materials= metals, iron, crystal. Car components (engines, tyres, material for seats, suspensions, mechanic devices, chassis) WIP Assembly line production OUT finished goods

Energy oil, lubricant, petrol, water. E.g. Ford is biggest purchaser in UK car industry.

- Industrial durable goods machinery, equipment, buildings/factories, plants, transport vehicles.

- Organisational= large buyers with on-going contract. Professional buyers of cars wit high technical knowledge.

- Derived Demand E.g. Porsche sales double- tyres supplies/sales double. After sales market increase-suppliers sales increase.

- Business Cycles Car industry may fluctuate due to recessionary economic conditions in a country/competition. Lead to close plants or lay out workers. E.g. Fiat. This type of market suffers more than consumer markets.

International Markets Car companies like Porsche export its products to more than 50 countries while manufacturing takes place mainly in Germany. Allows them to develop new markets but adopt more risks.

- Trade internationally because competitors also do.

- Mercedes-Benz and BMW benefit by selling more expensive overseas than in local markets due to taxation and currency values.

- Screening Process all car manufacturers use this before deciding where to export, analyse opportunities, research, and use of marketing mix.

- E.g. no market for niche cars (Porsche, Bentley, Jaguar) in India and Pakistan.

- Adapt to local needs E.g. Citroen Picasso sold in UK with low suspension and in Brazil with high suspension due to road conditions. Heating and air conditioning in different climatic places. GPRS systems required in big-developed cities.

- Polycentrism followed by major manufacturers-adaptation of product is frequent.

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