One of the strategies that ABC plans to use in achieving its marketing objectives is to introduce the hybrid car in the market. In every marketing strategy, capital, human, and technological resources should be properly identified, because they are important in the implementation of marketing activities (Marketing and Your Community Group, n.d.). ABC should raise additional capital, to finance introduction of the hybrid vehicle. The money will be used to purchase the required raw materials for producing the hybrid vehicle, and hiring of specialist staff. It will be necessary for ABC to hire professional staffs, who are experienced in production of electric motors. This would ensure that the firm produces a high quality product, which will meet the needs of the customers, while maintaining a healthy environment.
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In the currently globalized market, there are many technological changes taking place in the market. Achievement of competitive edge over other market players is being achieved through adoption of the most advanced technological features in production (Austin, 2011). For this reason, ABC would require to obtain the current technology used in vehicle production. ABC will not require establishing new distribution or delivery channels, since it can utilize its existing channels to distribute the hybrid vehicle to its current customer.
In its marketing strategy, ABC had identified television adverts as the most appropriate method of promoting the new product. According to Austin (2011), when marketing a new product, it is important to adopt a promotional method that will effectively inform the current and potential customers about the availability of a new product. The method chosen should also inform the customers about certain features of the new product such as price, uses, durability, product ranges, and the place of finding the product. Austin states that television adverts are appropriate when the targeted audience is big, or when the marketer intends to reach a big audience (2011).Therefore, under this marketing activity, ABC will require booking advertisement space on the leading national television channels. This means that ABC will also require money to pay for the advertisement expenses. Moreover, ABC will require hiring a firm, or an individual, to design the most appealing advert images and messages. ABC can outsource these services from marketing firms, who are experts in designing television adverts. This means that additional capital will also be required to pay for the outsourced services.
Even though ABC will not need to establish new distribution channels to distribute the hybrid vehicle to its current customers, it will need to establish new distribution channels in the new markets. For this reason, ABC will use joint ventures, as a strategy for venturing in the new markes. While undertaking joint ventures, it is important to consider the abilities of the partner(s) (Joint Ventures and Partners, 2010). These include their distribution channels, financial capabilities, and availability of modern technology, among others. Joint ventures are advantageous as they assist in penetration of new markets, establishment of distribution networks, increased production capacity, access to wide variety of resources such as specialist staffs, capital, and technology, and sharing of costs and risks (Joint Ventures and Partners, 2010). Joint venture does not require any capital outlay or hiring of new human resources. Therefore, ABC will only require looking for a suitable partner firm, which has strong distribution channels for electric vehicles in foreign markets.
The last marketing strategy, which ABC requires to implement, is to develop a pricing mechanism that will give it a competitive edge over its competitors in China. Development of a pricing mechanism requires examining the customers’ perceptions about the product, assessing the price of the rival products, and the cost of producing the new product (Marketing Mix, 2011). Therefore, ABC will require financial resources to conduct a market research on customers’ perception about the hybrid vehicle. Such a research would look at the price at which the customers would be willing to pay for the product.
After implementing the identified marketing strategies, ABC will continuously monitor the progress of the activities. Monitoring is a process of evaluating whether the set performance standards are being achieved (Marketing and Your Community Group, n.d.). Monitoring process allows identification of problems and problem areas during the early stages of implementation process, when changes are possible and inexpensive to implement. ABC plans to undertake assessment of marketing activities bi-monthly. Information concerning the progress of ABC marketing activities will be gathered from distributors. Through the distributers, ABC will be able to know the number of vehicles sold after every two months, in the domestic and foreign market. Market reports will be presented in written forms. These will include bi-monthly reports, which will be internally generated, and distributed to ABC management and employees, and semi-annual reports to external stakeholders. Therefore, information gathered will be used to provide feedback to ABC’s stakeholders. In addition, based on the information gathered, the research and development department will make necessary changes to the marketing strategies, to ensure that the marketing activities are in line with the marketing objectives.
Methods that ABC will use to when reviewing its marketing program will include customers’ feedback, and measuring performance against objectives. Customers’ feedbackk is very important since it assist an organization to discover improvement areas. It also acts as a marketing evaluation method, where a business firm can evaluate its performance in the market (Austin, 2011). Therefore, ABC will rely on feedback from the customers, to evaluate the efficiency of the new product, customers’ attitudes, and perceptions towards the new product. Customers’ feedback provides a means of evaluating whether a business is meeting the needs of the customers or not.
On the other hand, unlike stakeholders’ feedback, which is an external source of information for reviewing marketing activities, performance against objectives provides a business entity with internal sources of information for reviewing marketing activities. Performance against objectives; questions are usually structured in form of schedules on monthly basis. The schedules provide a breakdown of objectives, on measurable basis. These may include the targeted sales, the desired behavioral changes, or the amount of revenue that should be earned within a specified period. At the end of a specified period, a business is required to compare its performance, against the objectives set, then provide answers concerning whether the objectives have been met or not. In most cases, actual budgets are compared against standard budgets, to evaluate a business’s performance in achieving its financial objectives (Measuring Performance against Objectives, 2011). ABC will review its marketing activities on monthly basis.
ABC is an Australian company involved in production of vehicles. In order to gain competitiveness in the global market, ABC has decided to introduce a hybrid car that uses both fuel and electricity. In order to market the hybrid car both in the domestic and international market, ABC has developed a marketing strategy, whose objectives are to increase its domestic sales by 10 percent in the current year, and to enter foreign market such as China. Strategies to achieving the marketing objectives are; introducing the hybrid vehicle to the current market, increase TV adverts, use joint ventures to penetrate foreign markets, and develop a pricing mechanism, which will give it a competitive edge over its competitors. Major resources required to implement the strategies are financial resources, expert staffs, and advertisement space. ABC will use written reports to report the progress of its marketing activities to the stakeholders. Reports to internal stakeholders will be generated bi-monthly, while reports to external stakeholders will be generated semi-annually. Moreover, ABC will utilize its R&D department to collect information from the customers, through surveys. ABC will also utilize distributors to gather market information. Review of marketing activities will be done through stakeholder feedback, and measuring performance against objectives.