Plagiarism
Plagiarism presents itself as an academic offense where a writer copies another writer’s work or idea directly or indirectly without giving due credit to the author of the original work. It is a misdemeanor that presents itself in various forms in academic interactions and other forms of social interactions (The Writing Place, 2005).
Thus, it requires that any idea or any kind of information that is textual, graphical, or mathematical borrowed and used by another writer should be credited to the original source to avoid plagiarism. However, it is possible for one to avoid plagiarism by identifying plagiarism in its different forms. These forms of plagiarism include paraphrasing a piece of work by another writer, which includes distinguishing between acceptable and unacceptable paraphrasing (The Writing Place, 2005).
Acceptable paraphrasing allows for the use of different word from the original document while unacceptable paraphrasing involves copying and slightly changing or rearranging text in the original document. Due to the rise and use of the World Wide Web, many students find themselves tempted to plagiarize their work, which attracts severe penalties.
However, strategies suggested to avoid plagiarism include inserting original text within quotation marks if the text is not more than forty characters, paraphrase one’s work with original words but reflecting the original idea or meaning, and evaluating one’s work against the original text to ensure text used is not a copy of the original document. Despite applying such strategies to avoid plagiarism, it is important to give credit to the original source of the idea one has borrowed to incorporate in their work (The Writing Place, 2005).
It is possible for one to make accidental plagiarism despite stringently following the strategies outlined above, which includes paraphrasing an original idea or text without giving due credit to a source of information, or by simply inserting sources against the wrong section of an academic writing.
Thus, that approach is likely to cause others regard plagiarism as intentional, watering down to academic cheating. That invites problems and penalties associated with plagiarism. However, it is possible to overcome such plagiarism by adopting the strategies outlined above and ensuing that a reader is informed that the idea being presented at the beginning of a sentence is borrowed r by inserting a parenthetical citation at the end of a sentence (The Writing Place, 2005).
Thus, plagiarism is an academic misdemeanor or a form of cheating where a writer uses other writers’ ideas or text to present the ideas or text as one’s own, thus cheating about their source. Such forms of plagiarism can be avoided by giving due credit to the source of an idea or words otherwise it attracts penalties. However, plagiarism must be avoided as it unfolds itself in many forms due to the rise in the use of the World Wide Web (The Writing Place, 2005).
Executive Summary
Ford Mustang is one of the vehicle brands manufactured by Ford, a company that was started way back in 1896. However, the first Ford Mustang vehicle rolled off the assembly line in 1964 with subsequent models with variations of the Ford Mustang model manufactured in subsequent years to address the dynamic needs of the marketing environment and rising competition from other manufacturers.
Typically, the innovation and use of dynamically changing technologies including automation and use of marketing strategies has sustained the Ford Mustang as one of the leading models in the market, with the Ford company retaining a significant share of the local and international market.
Among the key elements integrated into the Ford Mustang marketing strategy that has favorably positioned the firm in the market include economic factors, environmental issues, marketing strategies, and the 4 Ps in the marketing of the Ford Mustang, the product identified in the current marketing research plan.
It is worth noting that the financial report of the Ford motor company has shown impressive and sustained existence since the inception of the company. That position has been sustained for the entire 20th century period; however, a drop in financial performance has been witnessed due to prevailing market economic conditions and other financial conditions.
However, the changes in economic conditions has made the management strategize further, placing the Ford Company a third in performance in the international market. However, a number of recommendations which include further product differentiations, further automation of the manufacturing process, and revision of the supply chain could make the company attain higher levels of financial and market performance against traditional and new competitor.
Product analysis
In theory, product analysis entails a clear understanding of product features to understand why the product was designed and developed in its present form, why it has the design and integrated features, the purpose of the product for the target market, which constitutes the buyers, market segment in which the product sales well, and the cost associated with the product (Tutorial, n.d).
It entails understanding the attitude buyers develop toward the product and how it can be positioned in the market to meet user needs and expectations. That is the case with Mustang Ford. Mustang Ford is a model of a range of model vehicles developed and manufactured by the Ford Company (Tutorial, n.d).
In reviewing the product analysis, various models of the Ford Mustang have been designed and developed over the years reflecting dynamic consumer needs and expectations. Typical examples include the “Ford Mustang GTR concept Super Charged V8” (Ford Mustang History, n.d), which has a full GTR body kit a modified bonnet, exhaust pipes fitted to the side, with a GTR replicated suspension made of a replica alloy.
It has tailored head lambs that aesthetically appeal to the customer, with a supercharged brake and costs ÂŁ29,995. Other examples include the Ford Mustang white which goes at ÂŁ32,995. Others include the Ford Mustang GT COUPE which is blue in color with an adjustable steering, computerized, and incorporating electrical windows. However, it is worth examining the history of the Ford Mustang before examining the history of Ford, the manufacturer of the Ford Mustang (Ford Mustang History, n.d).
Company History and Background
According to Ford Mustang History (n.d), Ford Mustang is one of the brand vehicles manufactured by the Ford Company. Ford Mustang has been in the manufacturing line since the first generation was produced in 1964. In the following periods after the manufactured of the first vehicle, successive variants of the same brand were manufactured in the following years to accommodate the ever changing market needs and consumer behavior.
Typical changes made on the variant models included changing product characteristics such as manual transmission systems, vehicle capacity, addition of the fastback body, the number of occupants to carry, and aesthetical values. That was the trend observed for successive brands for the different Ford Mustang generations produced in the coming years (Ford Mustang History, n.d).
The first generation of Ford Mustang was manufactured in 1964 characterized as a two seater running on a V-4 engine with a front mounted engine. However, it was realized the machine did not position its self well on the market and the manufacturer was compelled to design and develop another variant model of the Ford Mustang to reflect changing market needs.
That was when the second generation was designed and manufactured. The second generation rolled off the assembly line in 1967 into a market that had started experiencing competition from other car manufactures at the time. At the time, the manufacturer of Ford Mustang introduced new features to address the competition including a brand with a larger interior space and improved aesthetical features.
Additional features included an engine with higher power production, a wider suspension, and multiple engines. By 1969, the manufacturer had settled on producing a new fashion of the Ford Mustang.
The new brand was the third generation Ford Mustang manufactured with new features such as new forms of head lights, a sharp nose to improve its aesthetical values, and higher power production. It was the third generation that offered the option of addressing the luxurious needs of customers by providing variants that addressed competition from other car manufacturers of luxurious cars.
Other successive generations of new models were designed and developed with additional and enhanced features to address completion from other manufactures that had either entered the market, or were already in the market. That included brands such as the Camaro Z28, which had acquired a significant share of the market and was gaining a successful and stri9ng position in the market at the time.
Such was the design and specifications that appeared in successive variants of the Ford Mustang in successive years. Having reviewed the Background history of the Ford Mustang and its successive generations, it is important to consider the history of Ford, the parent company which is the manufacturer of the Ford Mustang (Ford Mustang History, n.d).
Ford Motor company is the manufacturer of several brands including the Ford Mustang which is the focus in the current study. With its evolving product models and product brands, the Ford Mustang was first manufactured by the Ford Motor company in 1964 bearing in mind market characteristics such as the rise in baby boomers of the time.
It was Henry Ford, the founder of the Ford Company who built the first vehicle in 1896. The first vehicle was characterized by a ground breaking speed of 20 miles an hour; a feat that could be attained at the time when acquiring such high speed was rare (Ford Mustang History, n.d).
It was at the time that the Ford Company attained a market capitalization of $100,000 and a shareholding that had grown to 12 in number. The growth of the company at its initial stages was exponential with a production of 17,000 cars registered when it went into commercial production of the vehicles.
It was a time when the company ventured into producing different brands and models of the vehicle with different models to accommodate the ever changing market trends and needs of the time. Among the models manufactured at the beginning included the Model T which gained a great deal of popularity and a significant market share at the time.
At the same time, new and different models were produced at the times which were priced differently depending on the pricing mechanisms that reflected the customer trends and needs, and market trends. Other successive models produced at the time included the MA model that also gained a significant share in the market. A large consignment of the MA models was manufactured to address the rising demand in the market.
A total of 4.5 million vehicles of the model were sold after it came into the market in a space of 4 years. It is worth noting that the models were priced differently based on different pricing approaches. However, it was due to the rising competition from other manufacturers in the market that the company had to find innovative ways of creating new models to create appropriate models to compete in the market and enable the Ford Company to gain a strong hold and strong market position in the market (Ford Mustang History, n.d.
The justifications that support the fitting of the new model into the current marketing plan includes the approach where theory and practice are interwoven to answer the questions that arise when designing and developing models and positioning them in the market to offer significant competition against rivals and other competing trends in the market. It is typical of a background that one can learn from when formulating a marketing plan for the Ford Mustang mentioned elsewhere (Defining Marketing and the Marketing Process, n.d).
One of the learning points includes the marketing strategy adopted by the Ford Company when it first came into the market. In theory and based on practical observations, the marketing of the Ford Mustang, one of the variant products of the company was a customer driven strategy.
Evidence of this is based on the innovative approach used to create different models based on customer needs and expectations. In addition to that, it reflects customer taste and changing trends in consumer behavior. Typically, that is illustrated in the manufacture of the model MA brand of the Ford brand, among the other variants manufactured by the company.
One key distinguishing element here is creating value for the customer. Creating value for the customer is evident where the company started producing vehicles which could run at higher speeds, with different pricing approaches. It is worth noting that pricing is a key element in positioning a product in the market, a key element in understanding what the customer needs and the varied tastes a customer needs to satisfy.
In theory, that could also be classified under behavioral segmentation as a marketing strategy which the company adopted and which is reflected in the production of different models with different characteristics and product prices (Defining Marketing and the Marketing Process, n.d).
Another approach used in the marketing of the product that reflects an element that could be of value and that which fits well into the current model is by factoring user status. According to Ford Mustang History (n.d), the manufacturer of Ford models produced vehicles that reflected different user tastes and income levels by pricing the products differently to reflect the varied tastes and classes of the customers.
In the context of the current marketing plan research, pricing is a crucial component that in theory and practice is crucial in positioning a product in the market (Defining Marketing and the Marketing Process, n.d).
Additional elements that are projected to provide benefits to the current marketing research plan include the marketing strategy adopted by Ford in marketing its various models in the market and the sustained market position the firm has gained in the market until today. In theory, a marketing strategy which is related to the corporate strategy adopted by Ford that was the underlying component in the business level strategy.
The marketing strategy implied aligning the business level and corporate level strategies with the mission and vision of the Ford Company that propelled the company to higher levels of success and sustained operation in the market since the company was set up until today. Thus, that forms one of the fundamental components to learn based on the background history of the firm (Defining Marketing and the Marketing Process, n.d).
Other benefits derived from conducting studies based on the background history of the firm include a thorough comprehension of the company’s marketing plan that is the underlying component in the successful positioning of the company in the market. Typically, the business and marketing plan includes identifying approaches used in formulating the right marketing plan, just as was used formulated and used by Ford, to propel the firm to higher levels of revenue generation, profitability, and sustained brand positioning in the market.
Typically, that reflects the marketing environment the company has thrived in since it was started, which includes models manufactured by the company in response to the market trends, suppliers of raw materials and other components used in the manufacture of the models, dealers who sell the manufactured products which include the models, and other essential components integrated into the marketing strategy to position the firm and enable it gain a competitive advantage over its rivalries (Matsuno, n.d).
The background history, as mentioned above provides a marketing plan that envisages an analysis of the marketing opportunity which includes the prevailing market environment and changes occurring in the industry, approaches used in the customer segmentation, new markets, growth and decline in the markets, and the STP marketing process used by the firm in the growth of the firm.
However, it is crucial to understand that the STP process included segmentation of the market based on different and diverse approaches, targeting that includes identifying the specific market for entry and penetration, and the positioning of Ford products that have since the firm was created in 1896 until today (Matsuno, n.d).
Purpose/Aim of Ford
The mission of the current marketing plan research paper is defined by employees working as one team toward attaining a global automobile leadership position with a lean workforce working toward employee and customer satisfaction. It constitutes the firms working toward a firm that optimizes profits, consisting of a lean workforce, market oriented innovation, effective financial performance, and working toward the attainment of one goal as discussed in the following sections.
Financial Performance
According to the financial report, the company has for a long time since its inception has been on an impressive financial performance. That was realized almost for the entire 20th century period when it financially performed impressively. However, changes in the market trend led the company to experience a net loss of $ 5.45 billion in 2001, making it the first kind of loss that the firm never fully recovered from.
According to the report, it was due to a poor strategy formulated at the time by Alex Trotman that was the underlying reason for the firm to attain the economic performance experienced by the company (Karadzhov & Blitterswijk, 2009).
The underlying strategy adopted that lead to the massive loss in profits was attributed to Lord Trotman’s Ford 2000 strategy. It was by mere implementation of new strategies and technical innovations that made Ford to sustain a position in the market that was significantly experiencing a decline (Karadzhov & Blitterswijk, 2009).
It is worth noting that the company had started facing competition from a number of new entrants into the market that it had dominated for a significant period. Among the new entrants into the market included the Japanese manufacturers and other European competitors.
Due to the rising completion and new entrants, and other forms of competition, Ford had lost a significant share in the market, causing a decline in profits and financial performance. A typical example is the following statement provided that shows the financial valuation of Ford’s indices (Karadzhov & Blitterswijk, 2009).
Threats and Opportunity Analysis
Typical of the threats and opportunities that might present themselves in any marketing environment, the Ford motor company experienced a number such threats and opportunities associated with Ford Mustang, one of the products manufactured by the Ford motor company as discussed below.
Threats
According to Porter’s five industry forces, in theory constitute 5 key elements that prevail in the current market in relation to the positioning of Ford Mustang. That includes the potential for new entrants into the market. In practice, the threat of new entrants included the threat of new models from Japan and Europe that provided competition for the Ford Mustang.
Another key element constituted as a threat included the threat from substitutes. Substitutes included new models from Japan such as the Toyota that were priced to provide a competitive edge against the Ford Mustang. Typically, that was based on the product features, the market segments, and the pricing strategies and variants of the Ford Mustang that were manufactured to provide the satisfaction different Ford Mustang models were providing the customer, thus meeting their needs based on the market segments.
In theory, when competitor prices are lower than the production costs of the competing firm, a rise in threats is likely to be experienced. Typically, that calls for the creation of other models that are able to compete with lower priced vehicles. That was the case with Ford Mustang. To address the challenges of new entrants into the Motor market, the Ford Company differentiated its products to address the new threats into the market in the form of variants of the product.
In theory, the critical element to consider include the attitude and propensity buyers developed toward the new and substitute products. Thus, the propensity sets stage for higher competition and production of a wide range of Ford Mustang models to address the threat from substitutes.
The critical elements here include approaches used by the Ford motor company to fight existing threats due to new entrants into the market dominated by the firm for many years. That includes creating more brands of the Ford Mustang as discussed elsewhere that addresses varying and dynamic customer needs in the target market.
Conducting market intelligence reports to identify what their competitors have to offer, differentiating their brands and pricing them strategically, to address existing threats from new entrants especially from China and Japan. In addition to that, the firm has endeavored to establish a brand identify with Ford Mustang to make consumers feel identified with the Ford Mustang brand.
Typically, the brand identity has significantly influenced the purchasing decisions made by consumers in the market when making the purchase of the Ford Mustang. Another approach used by the firm to address the existence of threats is to provide the customers with differentiated products in terms of a variety of Ford Mustang vehicles discussed in another section of the paper.
However, other threats in theory and practice regarded as threats of substitutes include providing a variety of products differentiated to address dynamic customer needs and consumer buyer abilities. Typically, Ford has variedly tried to create a variety of brands that are differentiated in prices, aesthetical values, performance, and other features that reflect higher classes, but cheaper in prices to cope with the threats from differentiated products.
A report on the motor vehicle sales and the market position attained by the Ford Company is demonstrated in a market survey that shows Ford to have had, by 2009, 13.3% market share, taking the second position in the global market. Toyota, one of the main competitors in the motor vehicle industry in the global market was taking the lead, constituting 17% of the global market.
The third position in the global market was taken by Honda consisting of 12.9% market share followed by Chevrolet occupying a 12.7% market share, and gradually Nissan taking the fifth position occupying an 8.7% market share. These are the key competitors in the global market against Ford.
Environmental Issues
Tow marketing environments are crucial for the operation of a company. These include the micro and macro environments. The microenvironment consists of “the company’s suppliers, customers, marketing intermediaries and competitors” (The chartered Institute of Marketing, 2009).
On the other hand, the microenvironment consists of the “wider forces that affect demand for a company’s goods, these forces include demographics, economics, nature, technology, politics and culture” (The chartered Institute of Marketing, 2009). It is worth noting that the microenvironment constitutes the external and internal environments.
The internal microenvironment is defined by Ford’s organizational structure, Ford’s strategies and objectives, and the organization’s departmentalization. On the other hand, the external microenvironment consists of “The external environment comprises suppliers, marketing intermediaries, customers, competitors and publics”.
“As well as obvious groups such as shareholders, publics can also include local interest groups who may have concerns about the marketer’s impact on the environment or on local employment” (The chartered Institute of Marketing, 2009).
On the other hand, the macro-environment consists of politics, cultural issues, and demographic trends in the market, technology, economic factors, and the natural environment. These issues are discussed elsewhere in the paper.
Social Factors
Buyer behavior is influenced by social factors which include cultural factors, political factors, subcultural factors, reference groups, and status issues. Typically, the cultural and sub-cultural factors include multicultural issues where the Ford Mustang is sold. That implies the Ford Mustang should be tailored to address the cultural factors that might influence customers to purchase the vehicle or not to.
In addition to that, it is crucial when developing a marketing plan research to identify the variations across cultures both in international markets and the local American market where the Ford Mustang is manufactured. In addition to that, in theory other social factors include the income level of the buyers, their occupations, their levels of education, the groups one identifies oneself with, the roles and status of each of the family members, and the influence these people have on the buyer of the Ford Mustang.
It is crucial, however, when formulating a marketing research plan to identify the social stratification in the American society.
Technological Factors
Technological factors constitute the technology used in the production of the Ford Mustang model, its effectiveness and efficiency in providing high quality products that meet user needs and expectations. One of the expectations is a fuels efficient vehicle with ample space and other specifications that the customer needs. In addition to that, other technological factors include the mode of assembling the vehicles to reduce the production costs.
One of the technological approaches integrated into the manufacturing of the Ford Mustang is the use of automation. Typically, it is an innovative approach that allows minimal use of human labor that is costly to a shift in the use of automated machines in the manufacturing and assembly lines. The key benefits associated with automation are a reduction in production costs that translates to low product prices, thus improving the market position in terms of pricing of the Ford Mustang.
In theory, technological factors significantly contribute to positioning a firm in the market. Analysing the market environment (n.d), underpins the threats and opportunities firms face in the market. Typically, the underlying reasons include technological innovations and advances in technology. However, it is crucial to note that not only are advances in technology a blessing to a firm, but might cause a firm to produce products that offer competition among themselves. Thus, making it practically important for firms to enter into strategic alliances with customers and other stakeholders to ensure products appeal to customers and maintain brand loyalty.
In practice, Ford has demonstrated how technology has significantly affected the positioning of its products in the market while ensuring that its brand name remains appealing to the customers. Typically, that is evident in the number of innovations done on the Ford Mustang over the years, evolving the model with the dynamic market needs and behavior. That is typically, discussed under the background history of the Ford and its product, the Ford Mustang (Analysing the market environment, n.d).
Economic Factors
Economic factors are associated with the level of income of the consumer of the Ford Mustang and the ability to raise sufficient funds to purchase the vehicle.
Typically, the when the income level of the customer is high, there is the possibility for the customer to go for and purchase expensive products, however, when the income level is low, there is every likelihood for the customer to purchase low priced products. However, the customer might want to purchase a product that has similar features to an expensive product to give the kind of satisfaction a low income earner could want that a high level income customer gets.
In theory, economic factors significantly affect the rate and level of consumption of products in the market and the kind of products buyers are willing to purchase. That is the case with the Ford manufacturer. In practice, the Ford manufacturer has manufactured differentiated products to address the economic conditions in the USA and in the international market. Typically, that is evident in the number of Ford Mustang models that have been manufactured over time.
In theory, economic factors strongly influence the business cycle of a firm and the purchasing abilities of the customers for various products in this case the Ford Mustang. Typically, in theory when there is an economic boom, it has been demonstrated that the purchasing power of the population.
Typically, the business cycle includes periods of economic boom as had been experienced in the United States. The business cycle is strongly related to the growth of a firm in any economy while other economic factors such as inflation, level of employment, and economic growth are directly related to the economic abilities of the customer in purchasing products in the market.
According to the report, Defining Marketing and the Marketing Process (n.d), inflation is a measure of the increase in the price of products in the market. One of the products in this category is the Ford Mustang. However, it might require a more detailed analysis to determine how inflation has impacted on the sales of the Ford Mustang in the local and international market (The chartered Institute of Marketing, 2009).
Another economic factor that theoretically impacts on the purchase of the Ford Mustang in the market is the employment and unemployment level of people. It is a generally accepted and observed trend in the market that rising unemployment might impact negatively on the turnover rate of the Ford Mustang in the local and international market.
However, it might also require a detailed analysis to determine eth impact of these economic factors on the performance of the Ford Mustang in the market today (Defining Marketing and the Marketing Process, n.d).
Regulatory factors affecting the strategic planning of Ford in the production and positioning of Ford Mustang in the market are directly related to government policies and legislations. One of the requirements includes abiding by the
Competitive factors
In theory, competitive forces are identifiably direct and indirect. Direct completion typically includes understanding the competitors based on market intelligence reports about their strengths.
That includes identifying the top competitors in the market, examine and identify the elements that constitute their market planning, know their weaknesses and strengths, strategize on the best approach to gain an upper hand over the competitors, identify their market trends, and identify the marketing approach they use toward reaching and winning over the customers. It is crucial to note that indirect forces have similar impact as direct forces on the positioning of the product on the market.
Typically, indirect forces are associated with educational and cultural issues and other social issues that determine the willingness of the customer to purchase the products. In practice, Ford Mustang, one of the variant models manufactured by the Ford Motor Company has direct and indirect forces that affect its position in the market (The chartered Institute of Marketing, 2009).
According to the marketing research findings, among the direct competitive factors affecting Ford Mustang, a variant product of Ford motors company include competition from General Motors, Toyota Motor company from Japan, and internati0nal competitors from China. One of the characteristics of the Chinese vehicles is the low pricing strategy used by the Ford manufacturer.
Typically, the manufacturers have a strategy of pricing their products with low prices as a technique to offer competition toward the Ford manufacturers. Typically, that compels ford Motors to lower the price of their products specifically, by adopting a differentiation strategy based on consumer needs and expectations.
Marketing strategy
A marketing Strategy is defined as “is a long-term course of action designed to optimize allocation of the scarce resources at the disposal of a firm in delivering superior customer experiences and promotes the interests of other stakeholders” (The chartered Institute of Marketing, 2009). The current strategy factors segmentation, and marketing strategies which include integrating and marketing the Ford Mustang product based on the 4 Ps in marketing as discussed below.
Segmentation
The three bases for segmentation for the Ford Mustang are defined in the STP process. Typically, the STP process defines the segmentation strategies Ford adopts or should adopt in formulating a marketing plan research project. Segmentation is a marketing strategy marketer, and in this case the Ford Mustang manufacturer puts in place to penetrate the market and maintain a strong position in the market.
According to the paper, Defining Marketing and the Marketing Process. (n.d), the first step in based on the STP concept is to divide the current and target market into an homogeneous group of consumers which can be within reach of the marketers of the Ford Mustang, sizeable based on the marketing budget available, and that which could easily be reached.
The approach allows for identification of a specific market of consumers of the Ford mustang based on demographic characteristics of the consumers, age, income level of the population, education, and psychographic characteristics that influence buyer behavior. Typically, the segmentation strategy factors beneficiaries, buyer behavior, and usage of the Ford Mustang (Defining Marketing and the Marketing Process, n.d).
Another strategy includes targeting a specific market segment as discussed above to identify who should benefit from the product and how. In addition to that, the entire process is concluded by developing a distinctive appeal to the customers on the Ford Mustang to take and accept it as a brand name (Defining Marketing and the Marketing Process, n.d).
Marketing Mix (4 Ps)
A marketing mix is defined in theory as “a combination of tactics and used by a business to achieve its objectives by marketing its products or services effectively to a particular target customer” (The chartered Institute of Marketing, 2009).Typically, a marketing mix is defined by the products being positioned in the market, the place that the product is intended to be sold, the pricing strategy of the product, and the promotional strategies used in positioning the product competitively on the market.
Pricing
One of the strategies used in positioning Ford Mustang competitively in the market is pricing. In practice and theory, pricing is a crucial element that symbolizes the price pegged on a product. Price is defined as “the amount of money charged for a product or service” (The chartered Institute of Marketing, 2009).
Typically, pricing is crucial when assigning a price to a specific product. In theory, pricing includes assessing the markup percentage of the product required for a service or a product and in this case the variant of Ford models that includes the Ford Mustang, which is the current product under consideration.
An addition to that is the gross margin percentage associated with the retailing price of the Ford Mustang. However, in theory there are internal and external factors that influence the pricing process that Ford the manufacturer of Ford Mustang makes (The chartered Institute of Marketing, 2009).
These include external and internal factors. External factors are associated with the prevailing market conditions while internal pricing factors are associated with the cost of production, distribution, and other cost overheads. In addition to that, distribution costs incurred in the distribution channel also contribute to the total cost of the vehicle. Therefore, it is crucial for the manufacturer to identify the best strategy to price their products to remain competitive in the market.
However, it is important to examine the strategies that in theory the firm could adopt to price Ford Mustang to remain competitive in the market while maintaining its position in the market. These include skimming, market penetration, follower pricing, production costs, and follower pricing strategies.
Follower pricing includes identifying competitor prices and pricing their Ford Mustang against what other leading market players in the motor vehicle industry have to offer.
Product
Ford’s product offering should consist of various models of the Ford Mustang. Typically, the product should be tailored to fit into the dynamic needs of the customer based on the segmentation strategy makes (The chartered Institute of Marketing, 2009).
In theory, the approach used to formulate the product based on the market conditions include identifying product characteristics that fit into different markets segmentations, new and current markets, and with due consideration of the underlying industry competition practices. That is also based on technical and aesthetical specifications unique to the vehicle.
Place
The place constitutes where the product, Ford Mustang, is to be sold. Typically, the current strategy identifies the use of local and international markets makes (The chartered Institute of Marketing, 2009).
Promotion
The promotional strategies include identifying an appropriate market segment and informing them of the Ford Mustang. Perhaps, it is proposed that different selling and promotional techniques including offerings or reducing prices or adopting mass discounts constitute some of the approaches used in promoting the product.
In addition to that, potential customers will be approached, and the quality of the product varied to address the demographic distributions and levels of income, besides addressing needs in the international and national markets (The chartered Institute of Marketing, 2009).
Recommendations
Recommendations based on the above study shows the need for Ford the manufacturer of Ford Mustang to consider reevaluating the reasons for the rising trend in competition from Japan and Chinese manufactures and take stringent steps to retain their position in the market.
These include identifying new models for their products, differentiating their products further to address ever rising competition from cheaper models from China, reevaluating the supply chain to take the most cost effective supply and marketing chain of the Ford Mustang. In addition to that, the fir should consider automating most of their manufacturing to drastically reduce the end product costs, making the Ford Mustang more competitive to retain and compete in the current local and international markets.
References
Analysing the market environment. (n.d). In Kotler, P. and G. Armstrong Principles of Marketing. (Upper Saddle River, NJ: Prentice Hall, 2004) tenth edition. Web.
Defining Marketing and the Marketing Process. (n.d). Customer-Driven Marketing Strategy. Creating Value for Target Customers. Web.
Ford Mustang History. (n.d). Edminds.com. Retrieved from https://www.edmunds.com/ford/mustang/
Karadzhov, R., & Blitterswijk, V.M. (2009). Financial and Strategic Analysis of Ford Motor Company and Tata Motors.
Matsuno, K. (n.d). Note on Targeting and Positioning. Babson College to the Babson College Case Development Center. Development Center, Olin Hall, Babson College, Babson Park, MA 02157.
The chartered Institute of Marketing. (2009). How to Achieve an Effective Marketing Mix, Marketing Mix. Moor, Hall: Maindenhead, UK.
The Writing Place. (2005). Avoiding Plagiarism. Web.
University Library, North Tower, Second Floor. Tutorial. (n.d). Product Analysis. Retrieved from http://www-materials.eng.cam.ac.uk/mpsite/tutorial/non_IE/prodanal.html