project

Final Submission:  Marketing Research Brief In Module Seven, you will submit your final marketing research brief. It should reflect appropriate marketing research terminology, strategies, and methodologies. It should use secondary research to develop, outline, and relay the strategy used to develop each section of the brief, and it should reflect the incorporation of feedback gained throughout the course.

Be sure to present the limitations of the research you have conducted along with the concluding findings supported by your research strategy (Critical Element III in the Prompt above). Information should be presented in a clear, easy-to-follow format that helps the reader understand what you are addressing. Be clear and concise in your responses—the focus here is on quality of response, not quantity. The final marketing research brief should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

5

Milestone Two: Marketing Mix

Michael Rickman

Southern New Hampshire University

MKT 337: Marketing Research

Andrea Benjamin

July 30, 2023

Milestone Two: Marketing Mix

Marketing Mix Elements: Potential Target Demographic

The PowerCharge system is designed to generate power for electric vehicles (EVs). As we know, the cost of purchasing an electric vehicle is higher than that of diesel or petrol cars. The higher cost of EVs can be attributed to the battery. Research has revealed that automobile companies spend approximately 8,255 U.S. dollars on raw materials per vehicle (Sor, 2022). These include the cost of the nickel, lithium, and cobalt required to manufacture EV batteries. Still, many people are interested in electric vehicles. Studies have revealed that 55% of individuals aged 18 to 29 are more likely to purchase electric vehicles. The research also shows that 47% of individuals aged 30 to 49 are more likely to purchase electric vehicles in the United States (Carlier, 2023). Thus, the potential target audience of the PowerCharge system is high-income individuals aged thirty-five to fifty who value flexibility and convenience.

Marketing Mix Elements: Internal and External Organizational Factors

Several factors (both internal and external) may influence the target demographic of the new product. Internal factors may include the corporate mission, company culture, and corporate communication. The corporate mission is a major aspect in a company. Why does the company exist? What’s its purpose and objective? Answering these questions will illustrate a company mission. A successful company has a clear purpose and knows why it exists. The company has an effective mission statement that appeals to potential target audiences and helps build a positive association with them. Corporate culture may also influence the target audience. It comprises the attitudes, values, and priorities that guide employees (Sherman, 2019). This culture influences how the target audience perceives a brand image, values, and voice. It also influences how the target audience evaluates the brand performance, social responsibility, and credibility. A consistent and positive culture can strengthen a brand reputation, demonstrating its differentiation, reliability, and authenticity. Further, effective communication is vital in establishing and maintaining a solid relationship with the target audience. Research has shown that effective communication can enhance customer satisfaction, increase customer loyalty, and strengthen corporate reputation.

External factors influencing the target demographic include competition, accessibility, and government policy. As it is known, the automotive industry is very competitive. Customers rely on several major providers, including General Motors and Tesla. These companies already control much of the market. Therefore, Ford Motors will have to offer quality and distinct products to increase its market share. Accessibility is another external factor that may influence the target demographic. Although technology has helped reach the target audience, Ford has to consider its ability to market and distribute its products to the target audience. Equally, changes in government policies can significantly affect the target audience. Effective government policies may make electric vehicles more affordable and increase consumer awareness, increasing the adoption of electric vehicles.

Marketing Mix Elements: Product Need

The PowerCharge system is needed in the market. First, it creates convenience as it generates power while driving. Further, the PowerCharge system gives drivers flexibility as they can choose between onboard power generations and traditional charging methods, depending on their needs and preferences. Lastly, the PowerCharge system can provide a constant and reliable power supply.

Marketing Mix Elements: Pricing Strategy

Ford will use a premium pricing strategy for the PowerCharge system. The strategy entails setting the product's price higher than the immediate competition. A premium pricing strategy is the best option as it increases brand visibility and awareness. Research has shown that customers view high-priced products as more prestigious and, consequently, more desirable. They often assume that high prices signify high quality (Shirai, 2015). As indicated earlier, Ford will mainly target high-income consumers. The target audience is more likely and willing to purchase high-priced products. Overall, Ford aims to create an impression that high-priced products possess higher quality compared to lower-priced products.

Marketing Mix Elements: Placement of Product

Ford aims to offer target customers convenient access to the PowerCharge system. This convenient access increases the possibility of selling the PowerCharge system and other products. The target customers will access the new product from the following venues or places: dealerships, the Ford Parts website, and auto parts stores. Dealerships are more prominent for distributing most of Ford’s products, including the PowerCharge system. Besides, the PowerCharge system will also be available on the Ford Part website, as well as auto parts stores. By using different company facilities and third parties, Ford will increase market reach and coverage, strengthen customer satisfaction and convenience, and increase sales.

Marketing Mix Element: Promoting the Product

Advertising, personal selling, direct marketing, sales promotions, and public relations will be the most effective methods to promote the new product. Advertising will include both online advertisements and television advertisements. Besides that, sales personnel/agents will utilize personal selling to convince consumers at dealerships and other places. Ford will also apply direct marketing. That entails presenting information about the company and the product to the target customer (Czinkota et al., 2021). Further, Ford will use sales promotion to boost sales. The strategy entails short-term incentives, such as discounts, trade-ins, and special offers to motivate consumers to purchase the new product. Lastly, public relations activities, such as press releases, sponsorships, and publicity, will enable the company to promote the PowerCharge system to a broader population. By applying different promotional activities, Ford will reach a broader target audience, increasing sales and strengthening the relevancy of their brand.

Marketing Mix Element: Implications

The recommended marketing promotions are associated with several ethical and legal implications. These include reputational damage and lawsuits. Ethical and legal implications may arise from deceitful advertisements and unethical advertising methods. The law requires Ford to create truthful advertisements, not unfair or deceptive. Ford should also have evidence to support the claims they make. Further, the company should use ethical and legal tools to promote the new product and avoid using unethical tactics, such as emotional appeals and subliminal advertising (Ingram, 2019). As it is known, consumers are more attracted to organizations that refrain from using psychologically manipulative tactics to promote their products.

Marketing Mix Element: Industry Trends

The marketing mix elements – product, price, place, and promotion – align with industry trends. One major trend in the automotive industry is the shift toward electric vehicles (Colato & Ice, 2023). A shift towards electric vehicles will increase demand for the PowerCharge system. The premium pricing strategy will help increase the brand’s value, growing EV sales, as well as the PowerCharge system sales. Similarly, by making the product easily accessible to customers and using different promotion methods, Ford will increase sales.

References

Carlier, M. (2023). Electric vehicle purchase likelihood in the United States as of May 2022, by consumer age group. Statista.

Colato, J., & Ice, L. (2023). Charging into the future: the transition to electric vehicles. U.S. Bureau of Labor Statistics.

Czinkota, M. R., Kotabe, M., Vrontis, D., Shams, S. R., Czinkota, M. R., Kotabe, M., ... & Shams, S. R. (2021). Direct Marketing, Sales Promotion, and Public Relations.  Marketing Management: Past, Present and Future, 607-647.

Ingram, D. (2019). List of Ethical & Legal Issues When Advertising. Chron.

Sherman, F. (2019). What are Internal & External Environmental Factors that Affect Business? Chron.

Shirai, M. (2015). Impact of “high quality, low price” appeal on consumer evaluations.  Journal of Promotion Management,  21(6), 776-797.

Sor, J. (2022). Electric vehicles are getting more expensive because raw material costs have more than doubled to $8,000, research finds. Business Insider.