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Ford Motor Company

The Ford Motor Company (commonly referred to as simply Ford) is

an American multinational automaker headquartered in Dearborn, Michigan,
a suburb of Detroit. It was founded by Henry Ford and incorporated on June
16, 1903. The company sells automobiles and commercial vehicles under
the Ford brand and most luxury cars under the Lincoln brand. Ford also owns
Brazilian SUV manufacturer, Troller, and Australian performance car
manufacturer FPV. In the past it has also produced tractors and automotive
components. Ford owns a 2.1% stake in Mazda of Japan, an 8% stake
in Aston Martin of the United Kingdom, and a 49% stake in Jiangling of China.
It also has a number of joint-ventures, two in China (Changan Ford Mazda
and Ford Lio Ho), one in Thailand (Auto Alliance Thailand), one in Turkey
(Ford Otosan), and one in Russia (Ford Sollers). It is listed on the New York
Stock Exchange and is controlled by the Ford family, although they have
minority ownership.
Ford introduced methods for large-scale manufacturing of cars and largescale management of an industrial workforce using elaborately engineered
manufacturing sequences typified by moving assembly lines; by 1914 these
methods were known around the world as Fordism. Ford's former UK
subsidiaries Jaguar and Land Rover, acquired in 1989 and 2000 respectively,
were sold to Tata Motors in March 2008. Ford owned the Swedish
automaker Volvo from 1999 to 2010. In 2011, Ford discontinued
the Mercury brand, under which it had marketed entry-level luxury cars in
the United States, Canada, Mexico, and the Middle East since 1938.
During the financial crisis at the beginning of the 21st century, it was close
to bankruptcy, but it has since returned to profitability.
Ford is the second-largest U.S.-based automaker (preceded by General
Motors) and the fifth-largest in the world based on 2010 vehicle sales. At the
end of 2010, Ford was the fifth largest automaker in Europe. Ford is the
eighth-ranked overall American-based company in the 2010 Fortune 500 list,
based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced

5.532 million automobiles, and employed about 213,000 employees at

around 90 plants and facilities worldwide.
The company went public in 1956 but the Ford family, through special Class
B shares, still retain 40 percent voting rights.

Marketing Mix:
Marketing mix can be describes as "the use and specification of the 4 Ps
describing the strategic position of a product in the marketplace A
prominent person to take centre stage was E. Jerome McCarthy in 1960; he
proposed a four-P classification which was popularized. (wikipedia.com)"
The marketing mix approach to marketing is a model of creating and
implementing market strategies. The marketing mix stresses the mixing of
different factors in a way that both organizational and consumer or target
markets objectives are attained. The 4 Ps of marketing are Product, Place,
Promotion and Price. Each plays a key factor in the overall successful
marketing of a product or service.

The product mix means that What exactly is your product?
Product" Although this typically refers to a physical product, it has been
expanded to include services offered by a service organization. The
specification of the product is one of the variables that a marketer has at
his/her control. For example, the product can include certain colors (or not),
certain scents (or not), certain features (or not). Lastly, in the broadest sense
when a consumer purchases a product it also includes the post-sales
relationship with the company. The post-sales relationship can include

customer service and any warranty." The product or service is an important

part of the whole marketing process, after all, something that is completely
useless to anyone is usually unsuccessful regardless of how great the place,
promotion or price is. Sometimes companies don't come out with all new
products; they just try to tailor current products to better suit people.
Convenience is one of the major factors in coming up with a better version of
a current product.
Before you go out marketing your services, make sure you know what you
want to sell.
This is an easy task. Take a few days to think about what you enjoy doing
most, and then consider what you do best. If the two coincide, deciding what
products to sell will become clear. Art directors and production managers in
ad agencies want to know which of their needs you can satisfy. Can they
count on you for illustration, concept work, corporate identity, or publication
design? Are you fast and efficient in production? Learn to think of your skill
as a product with features and benefits for the person buying your service.
Neither here nor there, your service is the product traded for currency. Your
customers want your work, you want their money; so a trade is made. This is
Take the time to define the characteristics of your product , make sure you
meet the needs of your clients while you're at it. Don't forget service,
support, and warranty. That old saying, "The customer is always right," is no
longer true.
The important thing to remember when offering menu items to customers is
that they have a choice. They have a huge number of ways of spending their
money and places to spend it.
Market research establishes exactly what this is. However, customers'
requirements change over time. What is fashionable and attractive today
may be discarded tomorrow. Marketing continuously monitors customers'
The type of marketing undertaken and the amount invested will be different,
depending on the stage a product has reached. For example, the launch of a
new product will typically involve television and other advertising support. At
any time a company will have a portfolio of products each in a different stage
of its lifecycle.

2) Price:
Is the price right or is it out of sight? In the best of worlds, product launches
are thoughtful, labor intensive risk-taking ventures with marketing strategies
firmly in place.
Price" The price is the amount paid for a product. In some cases, especially in
business-to-business marketing this can also include the total cost of
ownership (TCO). Total cost of ownership may include costs such as
installation and other products required to deliver a complete functional
Let's take it one step further and ask, if you were dying, how much money
would you pay to stay alive? The exchange of money for curing human ills is
a sordid business. It would be interesting to know how they determined the
price of the new cervical cancer vaccination that must be renewed each year.
How many days this year would you like to be protected from cancer? Would
a dollar a day be too much? Sheer unjustifiable extortion, an assumption that
poor people don't have lives worth saving, or something else?
A popular topic of conversation on message boards and forums is pricehow
much should I charge for what I do? Setting the right price is very important
when marketing professional design services. Set it too low, and you may
lose potential clients who suspect shoddy work for bargain prices. Book
writers without real world experience have some radical ideas about
freelance fees including suggesting you use the average income of a full
time designer in a corporation as a basisan annual income that has no
bearing on your expenses, range of projects, or reasonable price

expectations in your practice area. Base your charges on the range of

services you offer and juggle that against your level of expertise and
education; with a pinch or two for taxes, overhead, and a bit for that yacht.
Also consider that a well-educated, seasoned designer can produce more
quality work in an hour than a novice who is still learning. A client shouldn't
have to pay for time spent figuring out how to do the job, or trying a dozen
or more typefaces at random because of uncertainty.
The customer's perception of value is an important determinant of the price
charged. Customers draw their own mental picture of what a product is
worth. A product is more than a physical item, it also has psychological
connotations for the customer. The danger of using low price as a marketing
tool is that the customer may feel that quality is being compromised. It is
important when deciding on price to be fully aware of the brand and its
integrity. A further consequence of price reduction is that competitors match
prices resulting in no extra demand. This means the profit margin has been
reduced without increasing sales.

3) Promotions:
The promotions aspect of the marketing mix covers all types of marketing
communications. The methods include advertising, sometimes known as
'above the line' activity. Advertising is conducted on TV, radio, cinema,
online, poster sites and in the press (newspapers, magazines). What
distinguishes advertising from other marketing communications is that
media owners are paid before the advertiser can take space in the medium.
Other promotional methods include sales promotions, point of sale display,
merchandising, direct mail, telemarketing, exhibitions, seminars, loyalty
schemes, door drops, demonstrations, etc.
The skill in marketing communications is to develop a campaign which uses
several of these methods in a way that provides the most effective results.
For example, TV advertising makes people aware of a food item and press

advertising provides more detail. This may be supported by in store

promotions to get people to try the product and a collectable promotional
device to encourage them to keep buying the item. It is imperative that the
messages communicated support each other and do not confuse customers.
A thorough understanding of what the brand represents is the key to a
consistent message.

The purpose of most marketing communications is to move the target

audience to some type of action. This may be to: buy the product,
recommend the choice to a friend or increase purchase of the menu item.
Key objectives of advertising are to make people aware of an item, feel
positive about it and remember it.

One very reliable promotion: Calendars are one of the oldest, most trusted
methods of promotion, no matter what the business, product, or service.
There's a reason for that; staying power. Few people can discard a calendar;
ask an older, male mechanic where he used to get his favorite free babe
calendar and he'll probably remember Snap-On-Tools or another brand well
enough to think of the brand when he needs new tools. Calendars are
common promotions because they stick around for at least a year, but if
you're self employed, they might be a bit costly to produce on a large format
offset press; at least I thought so when I first started freelancing. For my very
first self-promotion, I wanted something nice I could give to my clients that
they would keep; something that didn't die when the end of the year came
around, and something equally appealing as a reminder after a cold call or
portfolio showing.

When creating a promotion for your product, concentrate on motivating your

target market and put yourself in their place. What type of offer will motivate
your target? Airlines have great promotions when they open a new hub, such
as one airlines $89 airfare to Las Vegas. A limited time promotion always
attracts attention, both from the market and the competition. What kind of
leverage will you provide to salespeople that will motivate them to sell your
product over the competition? One cell phone company has offered to buy
out your current contract if you sign up with them. What kind of deal will you
create that will seem like an offer your target can't refuse? Advertising,
public relations, and publicity will keep your product or service out front,
ahead of the competition; and these are all parts of promotion.
How does advertising differ from promotion? Advertising is supposed to get
everybody's attention. Signs, brochures, videos, direct mail, email
campaigns, corporate blogs, and community events all fall under the fourth P
of promotion. So the next time a marketing manager steps in with specific
instructions regarding promotional materials, remind him or her that his or
her job is strategy, not application. And I want to be a fly on the wall when
you suggest that the marketers dabbling in graphics at college did not equip
him or her with what's required to be a professional designer. And, no,
redecorating a bathroom does not qualify as design experience.

Place in the marketing mix, is not just about the physical location or
distribution points for products. It encompasses the management of a range
of processes involved in bringing products to the end consumer.

Let's discuss place. A clear understanding of the strategy behind place (or
positioning) is all you need to make it work for you; even if it's just to see
through the mist some marketers use to fog up discerning shoppers.

Positioning is about painting a pretty picture of how you want people to think
of your product or company; the catchphrase should be simple, easy to
remember, and satisfy the audience enough so that they won't look too
closely at the wicked web you could be weaving.

There are all kinds of good examples of positioning , one can be found on an
insurance website that advertises price comparisons with the competition.
That insurance company's policies often cost hundreds of dollars more than
the caveman/gecko brand, which conveniently is not included in the

Ford Motor Companys Marketing Mix (4Ps)


Ford Motor Companys marketing mix (4Ps) supports the firms ability to
connect with its target customers. The marketing mix refers to approaches
used to implement a marketing plan. In Fords case, the target market is
highly varied and spans the global economy. As such, the companys
marketing mix is also comprehensive. The firm is the second largest U.S.based automaker and the fifth in the world. With this position, a
comprehensive marketing mix is critical to maintaining its performance. This
marketing mix and related strategies also evolve through time to ensure

Fords competitiveness in reaching its target markets around the world.

Ford Motor Companys marketing mix enables the firm to reach its target
customers worldwide. This marketing mix and associated strategic actions
also change over time to match the firms markets and industry

Ford Motor Companys Products (Product

Fords offers a considerable variety of products. Organizational outputs are
included in this element of the marketing mix. Fords main product lines are
as follows:
Automotive parts/components
Financial services
Vehicle leasing
Ford Motor Company is popularly known for its automobiles, such as sedans.
However, the firm also has trucks, buses, and tractors in its product mix. In
addition, the firms Motorcraft brand includes automotive parts for most of
Fords vehicles, although some of these parts are also suited for the vehicles
of other firms like Toyota. The Ford Motor Credit Company is Fords subsidiary
that offers financing for its customers. The firm also provides vehicle leasing
mainly to corporate clients. Thus, the diversity of Fords product mix is shown
in this element of the marketing mix.

Product Line:

Vans &
Small Cars

Place/Distribution in Fords Marketing Mix

Ford uses typical places or venues used for its strategy of product
distribution. This element of the marketing mix focuses on the venues or
locations used to reach and sell to customers. In Fords case, the following
are the main places used for product distribution:
Auto parts stores
Ford Parts website
Ford Motor Credit Company
Ford dealerships are the most prominent places for distributing most of its
products. The majority of sales revenues are achieved through these
dealerships. The companys automotive parts/components are available in
third-party auto parts stores, as well as the Ford Parts website. In addition,
customers can access the firms financial services at the Ford Motor Credit
Company offices or through personnel at the dealerships. This element of the
marketing mix shows Fords strategy that utilizes different company-owned
facilities and third parties to generate sales.

Fords Promotion (Promotional Mix)

Ford Motor Company promotes it products through all of the conventional

tactics. The activities used to promote goods and services are considered in
this element of the marketing mix. Fords promotion activities are as follows,
arranged according to significance:
Personal selling
Direct selling
Sales promotions
Public relations
Ford uses advertising as the main tactic to promote its products. The
companys television advertisements and online advertisements are
especially prominent. In addition, agents/sales personnel use personal selling
to persuade buyers at Ford dealerships and other venues. In some cases, the
company applies direct selling, usually to corporate clients who lease
vehicles from the firm. This marketing mix also involves sales promotion,
usually through special offers, discounts, and trade-ins. Moreover, corporate
social responsibility programs and sponsorship of sports events and facilities
enable the firm to promote its business and products to a wider population of
potential customers. Thus, this element of the marketing mix shows that
Ford effectively applies all of the marketing communications tactics to
promote its goods and services.

Fords Prices and Pricing Strategies

Fords prices vary, depending on the market. This element of the marketing
mix involves the strategies used to determine appropriate prices for
products, based on market and business conditions. Ford applies two main
pricing strategies:
Market-oriented pricing strategy
Premium pricing strategy
In the market-oriented pricing strategy, Fords goal is to set prices that are
appropriate to market conditions, with consideration for competition,
demand, consumer perception, and other variables. Ford applies this pricing

strategy for most of its products, such as sedans and trucks. On the other
hand, the company applies the premium pricing strategy to set higher prices
for some of its products. This pricing strategy is used for most of the Lincoln
automobiles, which are Fords luxury line of vehicles. This element of the
marketing mix emphasizes the importance of different pricing strategies to
support Fords efforts to secure different segments of the market.

All the elements of the marketing mix influence each other. They make up
the business plan for a company and handled right, can give it great success.
But handled wrong and the business could take years to recover. The
marketing mix needs a lot of understanding, market research and
consultation with several people, from users to trade to manufacturing and
several others.
Ford motor company has observed the marketing mix in a good manner and
that make the company number two in the world after General motors. The
Ford company's product line gives the customer a wide view of the various
cars and models from which they can choose their interest car and by this
line the company has make them satisfy by its attractive products(cars). The
company made its price strategy in a way that can suit different people with

different life levels. They have cars for high class people , middle class and
also low class as well which shows an effective price strategy of the
company. The company is promoted by its promotion policy which the
company has been doing it in number of ways like through social media,
televisions, bill boards , and through its official websites which made the
company globally we known and has market in all over the world .
So all these efforts are put together by the company's management specially
marketing management and made the company a successful and famous
automobile company. Now Ford cars have fans in all over the world like even
in sports also , because the company makes sport cars as well and all these
are due to a successful marketing mix strategy which the company has and
it has been implementing it from the time it established.