Table of Contents
Being the general manager of Nissan Motor vehicle Company, it is important to note that improved technology in production, several brands, and skilled workforce are essential in realizing organizational objectives. For a marketing strategy to be suitable and effective, one has to incorporate the 5C to analyze the environment in which the company operates, the STP that is an audience approach for communicating, and the four Ps of the marketing mix. Therefore, a well-organized marketing plan is essential for increasing sales in the company, thus more profit for shareholders and for the growth of the company.
5Cs of Marketing
According to Bradt (2018), the five Cs stands for customers, company, collaborators, conditions, and competitors. Customers are people who benefit from the output of one’s work product. It is necessary first to consider the first line customers pay for Nissan car models and prospective customers who might benefit from the product. There are different levels of customers who make use of the product after its production. Each customer from the top of the food chain to the end user must be catered for concerning their need, preferences, price, and values strategies for effective marketing plan and sales. In addition, it is vital to take research on the frequency of purchase, the quantity the customer’s purchases, and the factor influencing the customer to take the decision to consume the product (Bhasin, 2018).
Determining whether the company is capable of meeting the customer needs is vital. To establish this, it is important for the company to carry out a SWOT analysis which identifies the strength, the weakness, opportunities, and threats of the company (Motohashi, 2015). The strengths of the company can be the availability of spare parts, an established brand name, and a diverse dealership network. Some of the key weaknesses include a lack of qualified staff for production, high customs fees for the product, and availability of used car at a lower price that customers might prefer over new cars. The best opportunities Nissan company can get is international markets, market led by a weak competitor, and the rising demand for electric vehicles. Nissan Company can be vulnerable to threats if a new competitor comes in and government increases VAT and excise tax.
Analyzing the possible competition for the company is necessary for making the marketing decision. To win a market full of competitors such as Ford, Honda, Toyota, and Chevrolet it is necessary to analyze their marketing strategies and work different from theirs, their profit models, and know their source of pride.
Collaborators are the suppliers, partners, business allies, and the government. It is essential to put oneself in their shoes and think through their choices, purpose, context, behavior, and relationship. For Nissan Company, it is necessary to keep in mind the strategic choices that work efficiently for the company, and that which will not contradict set goals and mission. It is also essential to know how they work since they are likely to influence the sale and the market. A good strategy helps in marketing company products (Bhasin, 2018).
It is crucial when making the marketing decision to understand the context and condition in which the company product is going to thrive. One area to follow is the social and demographic trends that are likely to arise in the market, with this knowledge the car model can be made to fit the patterns. According to Motohashi (2015), political and government and government regulations can profoundly impact the market; these include issues such as taxes, trade regulation, and labor laws. The micro and macroeconomic trend can change the marketing plans in that the labor costs and business cycle stages the company can be undergoing. Technological development impacts the cost structure of marketing and sales. Market inflow, outflows, and substitutes can change the marketing strategy thus reducing purchases is not well researched on.
STPs
Segmentation, targeting, and positioning is a strategic marketing approach in the modern market. It is the second used approach after SWOT since the SWOT is more inclined to products rather than customers. This model is useful when creating communication plans, and this is because it helps the company marketing department to develop propositions and develop relevant messages to engage with a different audience. Marketing segmentation in Nissan will be done by splitting the market into smaller groups with similar needs to understand the different customers’ groups need. Nissan will do these through demographic and geographic segmentation (Bradt, 2018).
Demographic segmentation is divided into five segments namely age, gender, income, life cycle, and religion and nationality. A consumer needs and wants change with their age, and an old person might want an SUV while a young one might need GT Nissan. The life cycle of a person might influence the choice a person might need for a car, same as age. The income of a person will change their purchasing power; a high earning person might buy an SUV while a low earning person might go for a small car. Gender influences the type of car one wants; a female might need a vehicle which is simple to operate compared to males. Nationality and race influence the marketing, the global advertisement are different in each country. In some countries, owning a car at some age is like mandatory, thus more marketing is done in such countries (Motohashi, 2015).
Geography segmentation divides the market based on region, size, climate, and population density. For instance, the UK and the USA are different markets having different values and lifestyle. This impact the marketing strategy the company might undertake depending on their target. Through geographical segmentation, the company is forced to launch a different product for that particular market. Psychological segmentation can be used by observing the activities, interest, and opinion your target group prefer (Lakiss et. al, 2018). In addition, behavioral segmentation from their target group can influence the marketing strategy. Behavioral segmentation is based on usage rate, brand loyalty, occasions such as holidays which stimulate buyers to buy, and their readiness to buy.
Bhasin (2018) notes that target marketing will involve breaking the market into segments and then concentrate marketing efforts on a few sections. It will aid in making promotion, pricing, and distribution of Nissan car models cost-effective and more manageable. Through segmentation, the market is divided into segments, and target marketing will choose the segments it wants to adopt as their market. The process of targeting through which the company will undertake will be viewing at each section as a distinctive market prospect, appraising the worth of the segment, and assessing whether the segment is growing, profitable, sizeable, measurable, and accessible.
The company will target a market that is compatible with the substantial resources. This will be done by an evaluation of the firm resources and a possible check for the company to put in the promotional programs mandated to capture the patterned segment with those resources. In addition, the company will consider the attractiveness of the segment before making it its market. By analyzing buyers intentions, their demand, and sales force estimates. Market segmentation should be done by considered according to how they fit the firm’s objective, resources, and capabilities (Bhasin, 2018).
Product position is how potential buyers see a product relative to that of the competitor’s company. Different approaches strategy will be used for product positioning; customer benefit approach, product user approach, the use, and application approach, and price-quality approach. This is based on the target market chosen; mostly considering the target group who are low earning income, newly acquired license users for ease in their driving, and a segment that needs quality but at a lower price (Motohashi, 2015).
The customer benefit approach strategy is one of the successful strategies since the company prides in cars that are fuel efficient, they are safe, the engine power is reliable and has power windows. This will be more inclined to customer needs. The product user approach strategy will be to launch a car that can be used by anyone at any age after acquiring a driver license. This strategy was developed because most competitors’ brands are technical for persons who have just received their license. The price quality approach strategy will be to launch cars that are quality but pocket-friendly. Use and application strategy approach is to launch a vehicle that is safe and enhanced with driving control for the safety of customers.
4Ps of Marketing Mix
The marketing mix involves the 4Ps: price, product, promotion, and place. The first P is the product which is the output you sell to customers. The company’s mission is to ensure that there is a range of products that are qualified for the range of customers from different segments from the basic small car models to the sedan models, the SUVs and the luxury car models. This enables Nissan Company to capture various markets and have the brand have a significant share of the market.
In Nissan, pricing is in correlation with the strategy of providing products to most segments. The company aims to provide a quality car at a reasonable price to be favorable to customers from any segment (Motohashi, 2015). Besides, Nissan strives to bridge a gap for cars that require cheap maintenance. This will be an advantage to those individuals wishing to own cars and have a low income. Another strategy is to ensure that spare parts for all out products are accessible worldwide.
The pricing strategy was based on the need of the customers; there existed a gap between cars which are quality and have a reasonable and logical price yet from a known brand. In addition, most cars are expensive and acquiring the spare parts involves importing which might be hectic for low earning customers thus the need to bridge the gap (Baker, 2014). From the strategy, the company is hopeful that it will satisfy the needs and wants of all customers and prospective buyer and still be profitable.
The placing will ensure numerous dealerships based in each region (Baker, 2014). If possible, each region will have a manufacturing and an export hub. This will create easy access to where customers can buy the cars since it is cheap due to lack of import charges which will, in turn, increase sales for the company.
Promotion strategy plays a vital role in increasing the sales of a product. The company approach will be to promote the products through advertising on television, internet, and print media. Also, taking part in rallies, in the event by sponsoring specific events, creating outdoor activities for key customers, special offers, sales promotion and using celebrities. Choosing a promotion strategy that is different from competitors will help win a bigger market share. The use of customer reviews for key products can create the best plan of promotion since it gives people idea from people who have used the product (Baker, 2014).
Promotion strategy aims at reaching many prospective buyers as possible. It increases awareness of the products and new products and technology advancement. Having created a brand position, promoting company products will be easy for growing sales. Promotion is a daily activity that will be happening in the company, taking it as a key investment. Once the brand has been positioned less advertising is needed (Baker, 2014).
Conclusion
Arguably, there is a need to invest heavily in the company marketing strategy. Marketing is the backbone of every company. Important to note, company products but be made known to potential buyers if the objectives the company has set are to be realized. This can only be done through marketing. Once the company achieved a sufficient market share, it is an assurance that the achievement of financial and marketing objectives is easy. In the long run, the market will grow leading to declined costs. These will ultimately more creative and innovative designs hence bigger market share.
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- Baker, M. J. (2014). Marketing strategy and management. London ; New York, NY : Macmillan Education, Palgrave.
- Bhasin, H. (2018). Marketing Strategy of Nissan – Nissan Marketing analysis.
- Bradt, G. (2018). Consider 5Cs–Customers, Collaborators, Capabilities, Competitors, Conditions–In Onboarding Prep. Forbes.
- Lakiss, G. et. al (2018). RYMCO- NISSANSUNNY.
- Motohashi, K. (2015). Global business strategy: Multinational corporations venturing into emerging markets. Tokyo : Springer.