The Marketing Strategy by Mercedes-Benz - Coursework Example

CONSUMER BEHAVIOUR ANALYSIS Insert Insert Insert Introduction The Mercedes-Benz traces its origin from the creation of the first car powered by petrol by Karl Ben. The creation of the car marked the establishment of a multinational company whose headquarters have base in Germany. Daimler Motoren-Gesellschaft initially marketed Mercedes-Benz in 1901. The first cars are bearing the Mercedes brand name got its first production in 1926 after Karl Benz and Daimlers’ companies merged. Mercedes Benz is the first brand to introduce cars with bulletproof windshield as well customised luxurious looks made mainly for the former president of Germany, ‘Adolf Hitler. The marketing strategy utilised by Mercedes-Benz is mainly customer based. The company reviews the changes in the needs and preference of the customers with respect to technological advancement (Finkbeiner, 2006, p.242). The major products of Mercedes Benz have customization to fit the exact customer needs. This is because; the company produces cars with high focus on a particular group of personalities in their mind. For example, the convertibles mainly target the young while larger models have specific production for official use. The company mainly specialises in the production of highly stable tracks, buses, coaches and luxury automobiles. The company history in producing quality cars puts it among the best automobile companies in the world alongside BMW, Toyota and Audi (Finkbeiner, 2006, p.244). The company’s products are mainly common among the presidents of different countries because of the reputable history in the manufacture of safest cars in the world. Mercedes Benz mainly focuses on a particular group of consumers ranging from businesspersons, managers, celebrities, politicians and the general population. This implies that each product from Mercedes Benz mainly meets the needs of a given group of consumers. Initially, the company did not face much competition across the world in terms of Luxury cars, coaches and buses. This is not applicable in the modern market since competition has increased tremendously, as a result, of the emergence of new vehicle manufacturers such as Ford and Toyota (Finkbeiner, 2006, p.241). Consumer behaviour has a definition as the consumer’s trends when buying a particular product in terms of the factors such as their needs, perceptions, attitudes, motivation and choice. Various aspects in which the product the consumer intends to purchase mainly determine consumer behavior. For example, a customer may have an interest in buying a car for luxury purposes while another consumer may be interested in buying one for business purposes. This suggests that, the marketers of a given product should be able to identify the particular needs of the consumer when presenting the product to the market (Evans, 2006, p.50). The consumer behaviour faces the impact from other factors like long range of a given product in the market same to the impact of peers and friends regarding a particular brand. Mercedes-Benz is an established brand, which finds its recognition in quality as well as safety of its products. It is, therefore, easier to convince an individual to purchase a car from Mercedes-Benz as compared to other brands in the automobile industry. The product should however be able to meet the consumer needs in various ways. The consumer behaviour towards purchasing a product from Mercedes-Benz gets power from internal factors such as Motivation, attitude, perception and learning (Evans, 2006, p.56). Motivation Motivation has definition as the inner drives that within the consumer that activates the action in them. Motivation is mainly an inner force making the consumer purchase a particular product. Motivation in marketing is a result of different needs and desires of the consumer. The consumer needs has description as the main drivers of motivation. For example, the need by the consumer to move easily to work motivates them into buying a car. Motivation can also be negative in some instances such as price of the product one is motivated into buying and economic relevance of the product to the consumer (Shukla, 2008, p.28). For example, a consumer may be motivated into purchasing a safe car but may develop negative thoughts about certain products because of its cost as well as the high rate of consumption of fuel, which may affect the company negatively given the impact of the consumer on prospective consumers. Motivation results from several factors, which include consumer needs and Goals (Solomon, 2010, p. 34). Needs Consumer needs is the necessities that push the consumer to purchase a particular product. Needs are the main factors that make an individual to purchase a given product because of the desire to satisfy a given need via the product. For example, the need by the consumer to move easily to work and shopping drives them into purchasing. This implies that, the consumer need of movement motivates them into purchasing the product. The marketers of the products do mainly not determine the needs of the consumer, but the marketers can make the consumers recognise the needs (Shukla, 2008, p.27). In the case of Mercedes, the consumer needs to move easily to work by avoiding the public means; this implies that, they approach the Mercedes marketing team to inquire about the product which explains to them other needs arising from the desire to move easily such as safety (Shukla, 2008, p.28). Mercedes-Benz is a company that highly known for manufacturing the safest automobiles in terms of stability and damage in the world. The consumer need to purchase a safe car is satisfied through purchasing one from Mercedes-Benz that implies that, the company ensures that all the needs of the consumer are fully satisfied. The Mercedes-Benz marketers should therefore ensure that the consumers are aware of the safety of the car, which motivates them into purchasing the product (Solomon, 2010, p. 50). Goal The consumer goal is the specified requirements of the consumer with respect to a particular product. The consumers’ goals about automobiles vary from one consumer to another. For example, a shipping company prefer to purchase tracks that stable and durable and can take large weights for long distances. On the other hand, a teenager prefers a car that is classy unique. Mercedes-Benz has been able to meet the goals of most of the consumers since they manufacture automobiles targeting a particular group of individuals (Solomon, 2010, p. 39). The Mercedes-Benz tracks suit the needs of most of the shipping companies. This is because; their tracks are stable in nature and strong which implies that they are capable of carrying large amounts of goods with no damage to the car. This is one of the marketing strategies utilised by the company in motivating consumers into buying the product (Shukla, 2008, p.28). Moreover, Mercedes-Benz has been able to manufacture classy personal cars such as the convertibles, which are highly preferred by youngsters and celebrities. In addition, the Mercedes-Benz office models are highly preferred by managers and entrepreneurs whose goal is take out most of their office functions as they drive to work. The initiative by Mercedes-Benz to manufacture automobiles that target specific needs of consumers enhances the marketing strategies of the company. The specific groups of consumers are motivated by availability of specific features in the Mercedes-Benz car models especially those that meet their goals. For example, an executive gets motivation from the fact that a certain model contains features that assist in carrying out their roles while travelling while shipping is motivated by the availability of a track that accommodates large quantities of goods and can move for long distances with no damage. Consumer motivation to purchase products from Mercedes-Benz Company is highly influenced by their needs and goals, which depend on the main purpose of buying a particular automobile (Solomon, 2010, p. 34). Perception Perception has description as an individual’s view regarding a given product. The consumer’s perception regarding a particular brand or product can affect the product or business either negatively or positively. Consumers’ negative understanding with respect to a given product can affect the product negatively while a positive perception affects the business positively. Consumers’ perception is the main factor that affects the sales of a given product in the market. The automobile industry is one of the sectors that are characterised by varying consumer perceptions. The consumers view products from particular companies as fake and can ascertain easy damages while other companies have a look as producers of quality automobiles (Vigneron, 2004, p.487). Various factors that affect the consumers’ perception about a particular product include exposure, peer and family, media and brand name. Exposure Exposure is results from advertisements regarding the products of a particular company. Advertisements are availed to consumers inform of billboards, broadcasting, social media, company’s website as well as the campaigns. The consumer can access positive information with respect to a particular company through its advertisements, which changes their perception on the product. Mercedes-Benz is an established firm that has a legacy for its safe and durable products such as trucks, coaches, buses and personal cars. The company mainly advertises its products on billboards and media houses (Vigneron, 2004, p.489). The company ensures that the launch of a new product is availed to the prospective consumers through the media houses. In addition, the company ensures that the consumers have the information on the specific improvements and advancements in its products, which affect the consumers’ perception with respect to the product. The consumer obtains information regarding the company’s products, which influences their perceptions on that product. The consumers are able to purchase the product because of a positive perception deve4loping form advertisements on different platforms (Vigneron, 2004, p.500). Peer and Family The peer and family are the main factors influencing the consumers’ understanding with respect to a particular business or product. Family and friends are likely to influence the perception of the consumer especially if it is their first time to purchase a particular product (Ampuero, 2006, p.104). In terms of the automobile industry, the understanding regarding a particular brand has power from the advice presentation by friends and parents while buying the first car. Mercedes-Benz is an established brand, which has a preference from majority of the parents when purchasing the first car for their children. This is because most of the parents have the perception that, the Mercedes products are safe and durable and face admiration from youngsters. The initiative of the parents purchasing a Mercedes-Benz for their kids allows them to experience its functionality, which affects their perception in a positive manner. Moreover, Mercedes-Benz is famous for causing fewer accidents, which scores as the main choice for several family members. This implies that, an individual’s perception has some influence from the fact that Mercedes-Benz is recommended by close friends and family (Ampuero, 2006, p.100). Media The media has regard as the fastest means of relaying on information to a large group of people. The perception of an individual is highly influenced by information obtained from the media regarding the products. Most of the automobile companies such as the Mercedes-Benz inform their prospective customers on the improvements made on a particular model through the media. The information obtained from the media by individual changes their perception with respect to the product. For example, an individual who views Mercedes-Benz as an old school company may be thrilled when they find out that, the company’s products are in line with the modern technology, which eventually changes their perception about the product (Gajjar, 2013, p.1). In addition, the media influences the perception of the consumer with regard to a particular through programs hired regarding the product. For example, the ‘Top Gear’ documentary enables consumers to examine different car models and can easily establish the best brands from such programs. Mercedes-Benz has been able to feature in such programs by displaying their new models and their efficiency in performance and durability (Ampuero, 2006, p.107). The consumer perception with respect to a given product or business affects the business in many ways including the sales and establishment of new consumers. Mercedes-Benz has been able to utilise the understanding of the consumers in its marketing strategy since the majority of consumers as durable and safe views their products. The positive perception of the consumers towards Mercedes-Benz products has enhanced the sales of the products especially the fact their cars are perceived as the safest in the world (Gajjar, 2013, p.1). Attitude Consumer attitude has description as the consumers’ emotions, beliefs and behavioural intentions with regard to a particular product. The approach towards a product is determined by their tastes and feelings towards that product. For example, one may have a negative attitude towards Mercedes-Benz products based on their value or gas consumption. The consumer attitude has basis on the following factors: Beliefs, Behavioural intentions and feelings regarding the product. The implications of the consumer attitude towards a product may be negative or positive (Kuenzel, 2008, p.296). Beliefs A consumer belief is described as the inner emotional and personal interpretation of informat5ion regarding a particular product. Consumer beliefs can be positive for example Mercedes-Benz automobiles are safe yet fashionable, or negative, for example, Mercedes-Benz products are mainly for the reach in the society. A Negative belief towards a given product affects the product negatively in terms of sales while a positive belief enhances the marketing strategy of the company. A consumer with a negative belief regarding a particular product explicates negative attitude towards the product. On the other hand, a consumer with positive views towards a given product will display a positive attitude towards the product, which serves in enhancing the marketing strategy of the product. Mercedes-Benz is highly affected by the fact most individuals believe that their products are mainly expensive in terms of maintenance and hence they have a design mainly for the rich in the society. This approach has affected the marketing strategy of the company’s products in developing countries where majority of the population belief that they cannot afford a Mercedes-Benz. On the other hand, the outcomes are highly valued by the rich in the society because of that belief (Kuenzel, 2008, p.296). Affect/Feelings The consumer feelings towards a given products affects their attitude either positively or negatively. For example, a consumer might think that, purchasing a car from Mercedes-Benz might increase the cost of living because of the maintenance costs required by the car. On the other hand, an individual may have a perception that, purchasing a Mercedes-Benz car puts them in a unique class, which might enhances their influence in the society (Piron, 2000, p. 317). Moreover, business people feel safer when their products are transported by use of Mercedes-Benz tracks, as a result, of their stability. The tourism industry players also prefer Mercedes-Benz coaches and buses since their clients feel safe in them. The attitude developed because of the person’s feelings has affected Mercedes-Benz positively in terms of marketing (Kuenzel, 2008, p.299). Behavioral Intentions Behavioral Intentions are defined as the purpose the consumer intends to use the product. Consumer’s behavioural intentions determine the consumer’s attitude towards a given product. For example, a consumer who is seeking a mechanism of transporting their firm products to the airport develops a positive attitude towards particular products such as trucks. On the other hand, a consumer seeking a luxurious car develops a positive attitude towards the Mercedes luxury models (Kuenzel, 2008, p.300). Learning Learning basis its definition as a process whereby the consumers change the preference behaviour of buying a particular model of a vehicle after gaining experience or information. It provides a reason for a consumer not to buy a rejected product for the second time. In the learning process, there is a permanent behavioural change based on consequential past behavior. Learning affects mostly how a consumer chooses a product but not necessarily the product in the market. In the case of Mercedes Benz, the consumers who lack the information or experience on different models from the company tends to look for more information in comparison to the person who has had first hand use in the product before (Solomon, 2009, p. 37). Several companies tend to attract consumers to learn about the products through different ways. In Mercedes Benz dealership, test drives are ready in offer to give the consumer first hand information about a new model. Motor sports participation is also a great factor to consider here. Documentaries on a given model serve as a learning source in the car dealership industry. Though systematic sampling about a product performance seems to be an expensive approach, it is very accountable in this case (Solomon, 2009, p. 24). In a situation whereby consumers try the product out then goes on to buy and attract more customers is effective. Demonstration on the uniqueness of a certain design or product in real time and through shows stands out as an information source for consumers. This highly influences their behavior. Instrumental conditioning or operant is also a proper consumer behaviour learning process. In this process, repetitive behaviour of either negative or positive consequences are in the application. A reward package accompanies each set of product bought in operant conditioning method. This can either retain customers who repeat their behaviour in purchasing or even attract more consumers. Free car maintenance, fuel provision and spare parts offers are some of packages, which accompany vehicle sales (Kuenzel, 2008, p.302). Classical conditioning is another learning method that combines unconditioned stimulus with a conditioned stimulus by association to yield a given response. The frequency increment in conditioned stimulus linkage to the unconditioned stimulus fastens the learning process. Businesspersons in car dealership and advertising team make the full use of this process. Taking the example of a fancy and comfortable model of the car, someone happens to drive with a very unique person (Piron, 2000, p. 310). The feeling of taking another ride in a more comfortable model on the same line supports classical conditioning. In other words, the product gave a comfortable feeling which could be an associate to the special person in the accompaniment thus provision of good feeling surrounding an individual (Kuenzel, 2008, p.300). When arriving at the decision to purchase a particular product, the consumer must have information processing. In experienced consumers, also uses price indicator for quality relation rather than individuals who have expertise and product familiarization. The Mercedes Company has a team of expertise individuals in several areas of car production to help in information provision for the customer attraction and marketing strategy. 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