Economics
Carlba
cbaisden_coursepapermarketing_12062015.docxMicroeconomics Page 3
FORD MOTOR COMPANY
MARKETING
Carol Baisden
Microeconomics, Section 01
Mr. Nicholas Bergan
December 6, 2015
Ford Motor Company is known to produce quality models of cars that meet the desires of customers (Lipschultz, 2007). Implementation of effective marketing strategies enables Ford Motor Company to be the leading producers in their industry. To start with, Ford Motor Company produces diverse models of cars to suit most consumers. Each of these products is differentiated in their own way to make them more attractive. Secondly, the company distributes its product in various dealership outlets and even in the website of the enterprise. The ease to access their products makes consumers prefer their products to the competitors. Ford Motor Company ensures that their prices remain competitive according to the market condition (Lipschultz, 2007). For this reason, most customers remain loyal to the company as the prices favor their affordability. More so, Ford Motor Company utilizes promotional techniques that help enhance awareness and improve their sales. They offer an incentive to their consumers as well as after services such as the repair of the cars after purchase. The presence of incentives makes customers remain loyal and sales increase.
Ford Motor Company operates in a monopolistic competitive market whereby it faces competitor companies such as Toyota Motor Corporation and General Motor Corporation. In my opinion, the presence of several competitor companies and free entry and exit to the market make Ford Motor Company operate in a monopolistic competition market. A monopolistic competition is whereby there exist several firms, but their products are highly differentiated. Because of product differentiation, companies like Ford Company make massive profits in the long-run, and they have the power to set up their prices. For this reason, Ford Motor Company gets to dictate their prices according to the market conditions (Dhingra & Morrow, 2012).
References
Dhingra, S., & Morrow, J. (2012). Monopolistic Competition and Optimum Product Diversity Under Firm Heterogeneity. London School of Economics, mimeograph.
