Marketing mix entails the strategies used for implementing an organization ’s marketing plan. This research study compares the marketing mix strategies in the of two companies in the American automobile industry, which is deemed to be highly competitive but also characterized by monopolistic tendencies. Besides, this review will seek to study the brand strategy and product positioning adopted by the two companies as well as the ethical and social responsibility aspects of operations. Acharya, Schaefer, and Zhang’s (2015) research identifies Ford Motors Corporation and General Motors as the fiercest rivals in the U.S automobile industry. At a glance, both automobile companies a ppear to be operating under the same business model, but their marketing strategies are different in as much as they are similar.
Both Ford and General Motors appear to thrive on different marketing strategies. On its part, Ford has recorded strong sales performance in the past year, which can be attributed to the popularity of the Ford F-150 pickup and the company’s range of crossover and SUV car brands ( Acharya et al., 2015) . In contrast, General Motors sold significantly fewer units in the home market in 2016 which can be attributed to the company’s strategic decision to shrink rental car sales ( Shalender & Singh, 2015). Also, the two companies have adopted different corporate cultures. Whereas General Motors appears to shun social media marketing by going the conventional route, Ford has maintained a social media presence, which has enabled it to serve its customers on a more personal level ( Acharya, Schaefer, & Zhang. 2015 ).
Delegate your assignment to our experts and they will do the rest.
Marketing mix strategies
The adopted marketing mix and strategic direction have been instrumental in ensuring that both companies compete favorably in the face of declining consumer power ( Davis, 2017). The Ford vs GM rivalry poses as one of the oldest and biggest corporate wars in the US as evidenced by their fight for market share and market capitalization.
Product
One of the main differences in the product component of both GM and Ford Company lies in the variety of car brands produced. In the wake of the 2008 economic crisis, Ford shed off some of its brands in its global operations ( Su, Young, & Zierke, 2016) . Through this move, Ford aimed at consolidating its car manufacturing platform by becoming more innovative and efficient than GM .
Similarities
BO th Ford and GM produce a product line of trucks, SUVs and car parts.
Differences: Ford initially aimed at mass-producing cheap and mass transportation vehicles which enabled the company to gain a strong foothold on the market ( Shalender & Singh, 2015). The GM range of automobiles was designed to provide better quality and a wider variety of automobile alternatives than Ford. GM’s range of products includes commercial automobiles, electric powered motor vehicles, and SUVs ( Su, Young, & Zierke, 2016 ). Chevrolet's models are particularly popular for their quality and efficiency. According to Acharya, Schaefer, and Zhang (2015), t he leading models of GM car brands include Chevrolet Tavera, Chevrolet Optra, and Chevrolet Spark.
Ford deals in a wide range of motor vehicle products and allied services. The Ford F-150 pickup is one of the most popular brands for Ford in addition to the company ’s range of crossover and SUV car brands. In addition to manufacturing automobiles, trucks, tractors and car parts and components, the company has diversified to vehicle leasing for corporate clients and financial services ( Shalender & Singh, 2015) . Accordingly, Ford’s product mix is highly diversified as compared to its main rival, General Motors.
Promotion
Similarities
As they design their promotional messages, both companies use highly customized strategies, acc ording to the individual needs of customers. The use of sales personnel and marketing agents who utilize a variety of personal selling strategies is imperative in maximizing sales in both companies ( Shalender & Singh, 2015) . Other similarities in the promotion strategy include the use of advertising, sales promotion, and direct sales.
Differences
Whereas General Motors appears to shun social media marketing by going the conventional route, Ford has established various aspects of social media presence which has enabled the company to reach its customers on a more personal level ( Acharya, Schaefer & Zhang, 2015 ). GM u tilizes a wide range of target group promotional strategies, notably the use of digital marketing. These strategies are customized based on the unique needs of the target market segment. On the other hand, according to Acharya, Schaefer and Zhang (2015) , Ford mainly uses TV and online advertisements in its promotional strategy whereas in other cases it utilizes direct selling at motor vehicle dealerships.
Pricing strategy
Similarities
For both Ford and Chevrolet, the pricing element of the marketing strategy involves the use of pricing differentiation tactics used for setting the right process for their products based on the current market and business operating conditions.
Differences
GM applies mid-stature pricing strategy underpinned by the provision of reliable services ( Acharya, Schaefer, & Zhang, 2015 ). In contrast, Acharya et al (2015 ) held that Ford applies premium and market-oriented pricing strategies. Whereas the market-oriented pricing strategy takes into consideration such factors as competitive forces, consumer perception, and demand, Ford uses the premium pricing strategy for high-end motor vehicles ( Davis, 2017) . The use of different pricing strategies by Ford is meant to help the company venture in different market segments.
Place/Distribution
Similarities
The rival companies are headquartered in Detroit, Michigan but they both maintain a global presence. Both GM and Ford utilize car dealerships as the prominent selling and distribution points for their cars ( Acharya, Schaefer, & Zhang, 2015 ). Besides, both companies' establishment of multiple dealerships in their global operations has made it easier for them to serve customers globally.
Differences: Apart from the use of car dealerships, what sets Ford apart from its main competitor is selling motor spares and components through its official website and third party auto spares shops. According to Rahmani, Emamisaleh, and Yadegari (2015, p.108), the place component of the marketing mix is best leveraged using Ford-owned distribution channels as well as third party contractors to maximize the global reach.
Product Positioning and Branding Strategy
For Ford, the product positioning strategy is based on the adoption of the assembly which is aimed at cutting the cost of production ( Su, Young, & Zierke, 2016) . On the other hand, General Motors’ branding strategy brought about the concept of choice and variety ( Acharya, Schaefer, & Zhang, 2015 ). This was achieved through the introduction of a wide range of automobiles of different brands and prices. Such choices spoke of the customer’s needs and personality.
Elements of ethical promotion and social responsibility towards customers.
As suggested on the Ford 2018/19 sustainability report, the carmaker engages in several CSR initiatives such as sponsoring sports events, initiating CSR programs among other activities geared at availing the products to a wide range of customers (Ford Motors Company, 2019). The research conducted by Rahmani, Emamisaleh, and Yadegari (2015) posit that the company prides itself in collaborating with strong dealership networks across the world to meet customer needs at an individual level.
Conclusion
This research paper analysed the implementation of the marketing strategy for two rival firms in the automobile industry. Whereas their marketing strategies are similar in some respect (place and distribution), the rival companies utilize the same aspects of product differentiation and wide ranging promotional strategies. In addition to the marketing mix strategies, this study also investigated the brand strategy and product positioning adopted by the two companies as well as the ethical and social responsibility aspects of operations. For Ford, the product positioning strategy was based on the adoption of moving car manufacturing lines aimed at cutting the cost of production whereas GM prides itself in giving its consumer choice and variety, which is achieved through the introduction of a wide range of automobiles of different brands.
References
Acharya V ., Schaefer, S., & Zhang, Y. (2015). Liquidity risk and correlation risk: A clinical study of the General Motors and Ford Downgrade of May 2005. The Quarterly Journal of Finance , 5(02)
Davis, J. (2017). Measuring Marketing: The 100+ Essential Metrics Every Marketer Needs 3rd Edition . Berlin , Germany: Walter de Gruyter GmbH & Co KG.
Ford Motors Company (2019). Ford 2018/19 Sustainability Report. Retrieved from:
https://corporate.ford.com/microsites/sustainability-report-2018-19/index.html
Rahmani, K., Emamisaleh, K., & Yadegari, R. (2015). Quality Function Deployment and New Product Development with a focus on Marketing Mix 4P model. Asian Journal of Research in Marketing , 4(2), 98-108.
Shalender, K., & Singh, N. (2015). Marketing flexibility: Significance and implications for automobile industry. Global Journal of Flexible Systems Management , 16(3), 251- 262.
Su, A., Young, C., & Zierke, S. (2016). Aligning corporate brand identity elements with heritage-How the Ford Motor Company and the Tata Group have managed Jaguar . LBMG Strategic Brand Management-Masters Paper Series.
