Marketing of Services (4)

8/3/2019 Marketing of Services (4)

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Marketing of Services

AssignmentCompany:- Mercedes

Submitted To:- Ms Rachita Sambyal Submitted by:- Anup Chauhan (13051)

Shreya Goyal(13035)


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Marketing of Services

Company:- Mercedes

7P Framework

In the 7 Ps of marketing the Mercedes has developed certain features which set it apart from its

competitors. Here we will discuss all the seven Ps of marketing for the Mercedes Benz car.

Product

This is one of the most important constituent in the marketing mix in which the physical product or

the service that the company is offering to its customers for sale. Here the unique features and the

benefits of the product are communicated to the customer in order to prove the superiority of the

product over that of competitors. Besides a niche product Mercedes Benz is known for putting

innovation in his product to provide higher comfort and safety to its customers. For example

Mercedes Benz is going to introduce a new feature Blue EFFICIENCY. The Blue EFFICIENCY technology

is a package of measures which can further reduce energy consumption by higher percentage of

combustion of the fuel and hence carbon dioxide emissions will reduce. The Blue Efficiency

technology will improve the efficiency of the engine. In a nutshell: at Mercedes-Benz, Blue EFFICIENCY

stands for the concept of efficient mobility. The other features that Mercedes Benz have are: high

resale value, SUV bumper, larger interior space etc. It is also the first automobile manufacturer to

introduce ABS braking system in automobile, the airbag and pre-tensioning devices.

Price

The price is the amount paid by the customer to buy the product or avail the services of the company.

This marketing strategy ensures that the pricing of the product is done correctly and It is not

overvalued to the customer and not undervalued to incur loss to the company. As Mercedes deals in

the niche segment and the customer to which the company provide is not very much price sensitive.

The customers of this brand look for the value of the money they are getting on the product.

Place

Place or distribution, tells the availability of the product through different medium in different places.

The product can be available online or through a direct sale at showroom but its geographic presence

decides this factor of the company. In the past few years Mercedes has spread the reach to the

developing countries also and the product is available to almost every corner of the world. The

contribution of opening of the economies of the developing countries is also a motivational factor for

Mercedes Brand. Earlier a few category of Mercedes were available in the developing countries. But

now the geographical boundaries are immaterial for big brands like Mercedes.


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Promotion

In order to communicate the people about the features of the product and its availability at different

locations the promotion strategies of the company comes into the picture. Mercedes do not believe

in incurring a huge cost on advertisement as it only caters to premium segment of the consumer and

the brand has already developed a position in the mind of the people that the nameMercedes itself

seems doing advertisement for it. The promotion strategy of Mercedes has reflected in the evolution

of Mercedes-Benz range. In the past decade we have seen a dramatically expansion of the range of

the vehicles provided by Mercedes and the addition of the M-class and A-class was introduced by the

company as a part of this strategy. This promotional strategy of Mercedes has been accepted by the

consumers all over the world.

People

To make the marketing activity to be effective, the role of the staff of the organization cannot be

ignored. Mercedes have a very rich culture which continuously motivates their staff to perform betterfor the company. Mercedes provides various benefits and compensation, career advancement

opportunities to its employees.

Process

The satisfaction of the customer is one of the most important roles of marketing. If you can follow the

process of delivering high quality service or products to the customers, your marketing efforts will

never be wasted.

Physical evidence

This feature of the product helps to position itself based on its certain physical attribute so that the

customers will get to know how the product is going to benefit them. Thus, the product

manufacturing company develops certain features in its product by which customer will be able to

relate it to the product. Mercedes Benz targets the comfort of the ride and the status symbol to

provide the physical evidence to its customers.


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Conclusion

Mercedes is the brand which is able to position itself as a player in the niche segment which reflects a

symbol of status, luxury and comfort. Like no other brand, Mercedes-Benz has got the highest

standards of quality, safety, innovative drive and visual appeal. In spite of the fact that Mercedes

Brand is more than 100 year old, it is continued to be the choice of the young as well as business

professionals. It is the brand which is gaining up the market share in the developing countries with a

consistence increase in the annual sales. With the help of 7 Ps of marketing we can also conclude

that Mercedes is able to establish itself in a premium segment and believe in providing the

technology and comfort to its customer above their expectations. It is a brand which believes in

walled garden technology and slowly shifting to open plane technology with the change in the

demand of the customers and increasing competency level in the premium segment. There would be

no surprise if Mercedes Benz will come with a comparatively less cost vehicles keeping their current

strategy of diversification in buses, coaches, and trucks. This strategy would definitely increase the

presence of the brand in the other segments of the automobile industry.

Strengths

1. strong brand name2. Owners club3. Successful f1 team4. Good resale value5. Good relationship with the government6. 80% of all auto patents worldwide7. Innovation and technology leadership8. Global presence9. All cars created comfortable and luxery by Mercede

Weaknesses

1. Price2. Long delivery period

Opportunities

1. Developments of new models2. Environmentally friendly cars

Threats

1. The current economic crisis2. Strong competitors3. New entrants into the market.


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Above is the SWOT and PEST analysis for Mercedes-Benz Introduction Mercedes Benz, a member of

the DaimlerChrysler Group, one of the biggest automobile manufacturers in the world. With three

great brands, first-class products and highly qualified employees, the Mercedes Car Group plays an

essential role in the success ofDaimlerChrysler. It is the world market leader in the luxury segment.

Mercedes-Benz stands for modern, innovative automobiles, for quality, safety and comfort

.Mercedes-Benz enjoys an excellent reputation, particularly in the area of safety technology. Many

pioneering technical innovations that are standard automotive features today were first seen in a

Mercedes-Benz car. SWOT Analysis To begin with, I will look for the main strength that the company

had. As we know, Mercedes-Benz has been a well known business for a very long time; therefore, the

strengths would be a lot than I expected.

The obvious strength is -High class, comfortable and safety. Below are the examples of the specific

strength that presently the company had. They include:

y Well-established namey

Better rescue services and customers caresy Least possible consumption of energy for the vehiclesy Skilled engineers and staffy High -tech machinery in the manufactoryy Accessed Roadside assistance system for all the Mercedes vehicles.

Now I will go through the opportunities in SWOT. Not only the company has a lot of strengths in the

present days, they have the opportunities which leads the business will be improved in the future as

well. Opportunities for Mercedes-Benz :

y Joint venture.y Improving safety, comfort, and sustainable mobility.y Providing fascinated vehicles for customers by the supportive ofDaimlerChrysler Groupy Professional sport sponsorship

Before we go through the opportunities of the business, we have to take seriously on the threats at

first. Apparently, Mercedes Benz is a global brand company and yet they are facing a lot of difficulties

as well. Although they have a lot of difficulties, they still can handle them properly. Threats for

Mercedes:

y A tax increase for importing vehicles.y Less educated employees in China, but also very expensive to hire employees in Europe.y Competitors that the Mercedes company had 1. BMW(the most direct competitor) .Luxury

small car market with less expensive sub-compact model 2. Cadillac (GM)-Concentric

diversification 3. Lincoln (Ford)-Attract satisfied customers with improved products 4. Lexus

(Toyota)- Sticker prices considerably below other luxury cars It is very common that every

company has its own weaknesses.


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The marketing strategies of BMW and Mercedes-Benz. Both companies are renowned market leaders

in supplying automobiles. The pair have a history of providing innovative cars for the past century.

Over the years with the improvement of technology BMW and Mercedes-Benz have met customer

needs by producing the most inspiring and well developed cars of their times. The BMW Group

concentrates on selected premium segments in the automobile market. This means that they

specialize in providing a high quality product and in return they can achieve higher revenues per

vehicle sold. In contrast Mercedes-Benz which also provide to the premium segment of the market

have concreted their name in history as manufacturers of luxury cars, have opened their doors to a

range of more dynamic models targeting the slightly younger market.Brief Overview BMW On 21st

July 1917, Rapp-Motorenwerke is renamed Bayerische Motoren Werke, (BMW) GmbH. Due to the

ongoing war the company at the time the company grew quickly. With further expansion in mind,

BMW decide to build a new plant next to the Oberwiesenfeld airfield in Munich, concentrating at the

time on building aircraft engines for army planes until 1918. After the War BMW struggles to stay

independent and is saved by nimble, BMW 700. It carries an engine of a motorbike and was given the

name 'lion- hearted weasel'. It becomes extremely popular amongst the car buying public. After 1923

the new era of car development and engages with new products and fresh ideas. However success

being short lived by BMW due to the Second World War after which a three year ban was imposed

any production activities. BMW struggling to get a 'foothold' in the market later released the Isetta

250, a recognized success in the mini car era of the mid 1950's. However still not being strong enough

to compete with its arch rivals of the time Mercedes, it released BMW 507 which quickly reached

success. The evolution of the company in this way led to development of the BMW 1500, 1600, 1800,

2000 and were all classified under the first generation of the 5 series. BMW success story continues

into the 1990's as it took over Rolls Royce and at the split of Rover plc it also bought the rights to the

Mini in 2000 and re-launched its now more dynamic range in 2001.1992 was another year-to-be-

remembered for BMW when it, for the first time, outsold Mercedes in Europe. BMW now has 1, 3, 5,

6, 7, X, M, Z series and a motor-sport version in the 3 and 5 series. BMW tradition of building

excellent automobiles with a special emphasis on performance, style and technological

advancements could now be recognized through their product range. Mercedes-Benz Mercedes has

been the name of the world's most innovative car brand for more than 100 years now. When

Daimler-Motoren-Gesellschaft (DMG) delivered its first Mercedes on 22 December 1900, it began an

era of dynamic development of the automobile. Today Mercedes-Benz is the most successful

premium brand. Its technical perfection, quality standards, innovative impact and numerous car

legends such as the 300 SL Gullwing are unique. The Mercedes star became the most famous symbol

of a car brand and is one the world's best known trademarks today. The invention of a high-speed

engine and an automobile, were considered by both Gottlieb Diamler and Karl Benz, both

independently of one another worked to lay yhe foundations of motorization of road transport, what

we know today as 'cars'. To gain publicity and distinction of one another they used 'Diamler' and

'Benz' as trademark. These trademarks would be used to show the origin and quality of the engines

made. The boost of car demand can be really related to Emil Jellinek, a progressive thinker of sport,

realised that at the dawning era of modernization and a key invention of the future was something he

needed to be part of. Jellinek had good contacts with the worlds of international finance and the

aristocracy and became increasingly active as a businessman. In 1898, he began to promote and sell

Daimler automobiles - in particular, within the higher echelons of society. The name 'Mercedes' came


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from Jellinek, it was first used as the team racing name and later was patented in 1909. and the logo

of the three pointed star was to symbolise Diamler's ambitions of universal motorisation 'on land, on

water and in the air'. As did BMW, Mercedes also struggled with the aftermath of War. The demand

for luxury cars being non existent, in 1926 Diamler merged with its rival company Benz and Cie, to

form Diamler- Benz AG. Moving on into the more recent era Mercedes had secured their name as

providers of standard luxury cars. But with growing competition Mercedes was falling behind as the

market was becoming more diverse and the demand was changing from luxury to more fun loving

automobiles. Mercedes- Benz reacting quickly wanted now to deliver a more fun loving and affluent

make for the younger professionals and to cater for this market.

Marketing Strategy ofMercedes Benz

y Mercedes Benz understands that its customers are not simply buying a car to get from pointA to point B, so before they actually sell a car they must first sell an idea about that car.

Mercedes Benz sells their ideas through promotion and advertising. Mercedes Benz wants to

change the perception of their brand at the personal level and reposition their brand so that

they are more appealing to young professional men of all ethnicities. Secondly, Mercedes

Benz is communicating to its target market the idea that they are a more approachable,

personal, fun, and energetic brand. This new message was evident in the Janus Joplin

advertisement, in the sponsoring of the Elton John concert in New York, and the sponsoring

of professional tennis. In the summer of 2003 Mercedes Benz launched an marketing event in

16 cities across the United States to promote the new C- Class to younger buyers. The

campaign gave potential buyers a chance to test drive the C-Class product line on courses

that simulated real life driving conditions and gain information from current Mercedes Benzowners in attendance. Mercedes Benz

y Mercedes has decided to stress safety over luxury in its new marketing campaign. As thetables have turned in the economic downturn, so have consumer priorities. It is becoming

more popular to brag about how little you just spent on a new car as opposed to telling your

friends how ridiculously expensive your new car was.

y Steve Cannon, VP of marketing for the U.S., believes that the new safety technologyMercedes has to offer should play a bigger role in its vehicle sales. In an interview with

Automotive News, Cannon said, "You have to give people the justification that says, 'Yes, aMercedes-Benz is relevant to me -- it can save my life.' " At a time when hybrids and less

expensive cars are hugely popular, Mercedes has to give America a reason to shop for a Benz.

y Mercedes has just launched its all new E-class, equipped with several features previously onlyavailable in the top of the range S-class. Blind spot detection, lane-keeping assist, night view,

and attention assist, which monitors the driver's road awareness, are a few safety features


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available on the 2010 E-class. These features set Mercedes ahead of the pack in terms of

safety, and the company is banking on its innovation to help it sell some cars.

y Cannon quickly touched on competing brands and their marketing tactics. He said thatMercedes would not lower its game and that the company would continue to focus on

innovation and safety

y Mercedes Benz marketing strategy in the United States was once centered on the safety,luxury, and precision engineering of its cars, but due to increase competition in the luxury car

industry and changing consumer attitudes about the Mercedes Benz brand that strategy has

changed. Now their marketing strategy is more life style oriented and is focused more on

presenting the more fun loving, approachable, and energetic side of Mercedes Benz. The

evolution of Mercedes Benzs marketing strategy can be directly connected to the expansion

of its target market, which now includes persons twenty five to thirty five years old as well as

its initial targets the baby boomers. In order to provide superior customer value to its target

market Mercedes Benz has found it necessary to expand its product line up, provide more

competitive prices, increase communications with its target market, maintain accessibility to

consumers, and continue its excellent customer service.

The Best or nothing new global brand strategy by Mercedes-Benz

Mercedes has launched a new slogan called : The best or nothing. The brand campaign will begun

yesterday on June 11, 2010, and will run in print, TV and online channels. This ambition to lead will

also be evident in the visual depiction of the brand through greater proximity between the badge on

the vehicle and communication. In communication activities, the brand name and logo will be used

together and augmented by the The best or nothing brand claim.

The star one of the worlds most valuable and best known logos receives a three-dimensional

appearance and a highly polished chrome finish.

It was Gottlieb Daimler who formulated the motto The best or nothing, always living and working

by this. Until this very day, this leadership expectation remains fundamental to the thoughts and

actions of every single Mercedes-Benz employee. Therefore, it was no surprise that this theme was

enthusiastically adopted by the workforce as a motivating internal rallying cry and call to top

performance.

Staying with this notion, Mercedes-Benz is enlisting its employees as brand ambassadors for theinternational brand campaign. Whether they are safety engineers, head designers or electronics

specialists, employees from a wide range of functions underscore factors that reflect the brands

ambition to lead now and in the future.

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Marketing of Services (4)