The marketing mix is composed of the features and strategies which accompany the launched product, its retail price to the end-user, its promotional programs and the channels selected for its distribution.
The bioscan ignition car will be sold under the manufacturer's brand with the specified functionality of serving as transportation means
The new automobile incorporates cutting edge technologies which increase safety and protect the owners from theft
The car has a high quality
The manufacturers offers additional and complementary products (components) and services (financial consultancy)
The cars have a 5-year warranty, after which owners are encouraged to visit the manufacturer's service facilities
Follow-the-leader price strategy, which implies that the manufacturer will implement prices based on the market and the prices implemented by competing firms
Variable price strategy, meaning that the price is directly connected with the production factors and a price increase in these factors will be reflected in the car's retail price
The producer will develop and implement an advertising campaign on all available media channels through radio announcements, television and internet advertisements and street banners
The bioscan ignition automobile will be presented at industry meetings
The manufacturer will grant interviews to specialized magazines and journals
The public relations department will contact old customers and will inform them of the features of the new vehicle
Special sales and offers, such as free consultancy and service for 7 years, extended warranty or complementary products
The bioscan ignition car will be placed onto the market and sold to the final customer through intermediaries
The manufacturer does not own a sales facility and opening one would imply additional costs; therefore the usage of intermediaries is cheaper even though it poses some inconveniences
All constructed automobiles will be stored in the manufacturer's own warehouses and will be delivered to intermediaries both for show as well as based on customer orders.
The production and launch of the new bioscan ignition automobile will generate significant costs for the manufacturing company, but they hope to achieve a full return of their investments within the first two years of sales. The figures for the first year are presented below:
millions of U.S. Dollars =
The highest expenditures will be registered throughout the first quarter of fiscal year 2008, when the production costs will be increased with the promotional and advertising costs. The investments will however return in the form increased sales. The large sales are however unsustainable with promotions and will decrease in the second and third quarter due to the ending of the promotional campaign. The forth quarter of 2008 will once again be marked by holyday promotions and special purchases and will generate increased expenditures, sales revenues and net profits.
8. Monitoring and control
The primary goal with launching the new bioscan ignition automobile is that of improving the image of the company and the product onto the market, increasing the customer satisfaction and consequently increasing sales, market share and through all these the manufacturer's profits. The monitoring and control will be implemented by operational and executive managers and they will identify the extent to which the implemented strategies retrieve the established outcome.
Internally, they will analyze the quality features of the vehicles and their correspondence with international standards of quality. They will also analyze the financial status, including expenses and revenues and the return of investment. Managers follow each step of the strategy implementation and compare the practical outcomes with the theoretical ones. In case any inconsistencies appear, the management will identify the causes and will find ways to resolve the problems.
Outside the company, managers will ask for market researches in order to identify consumers' perception and opinions in regard to the bioscan ignition automobiles.
9. Market research
In order to conduct an efficient and relevant market research, the automobile manufacturer must simultaneously compare and correlate the primary and secondary resources. The primary resources are mainly the market and the organization. The market resources include past and present behaviors and reactions to automobile and automobile related products, the supply and demand and the particular needs and requirements forwarded by customers. The second primary resource, the organization, includes an analysis of its features in regard to implementing a market strategy and launching a new product. These features refer to financial and personnel capabilities, the quality of the management and previous expertise with automobile placement onto the market.
The secondary resources include studies of other companies which launched similar products and scholarly resources on how to successfully develop and launch a market strategy. The scholarly resources are written by specialized economists and tell successful stories or unsuccessful ones which identify the wrong doings of the implementation process. The economic theory contains information on how to objectively analyze product features, the market and its consumers, the national and international competition and the environment and also how to combine these with the unique features of the company in order to retrieve the desired outcomes.
10. Conclusions and recommendations
The bioscan ignition car arose from the constant need for safety and security, and however it is currently only present in luxury and rather expansive cars, the technological developments would lead to the incorporation of the system in most automobiles. The placement of such a vehicle onto the market is focused on potential customers who register above medium incomes. The basic recommendation is for the manufacturers to pay close attention to the developments which currently appear on the it market and attempt to integrate them into the future car models. Also, a rather efficient strategy would be to try and develop cheaper technologies to incorporate in cars. This would increase the population's access to the company's automobiles and would lead to increased sales revenues.
Blattberg, R.C., Getz, G., Thomas, J.S., (2007) "The Marketing Mix," Harvard Business School Press
Chernev, a., (2007) "Strategic Marketing Analysis," Brightstar Media Inc.
Cohn, T., (2007) "The Principles of Marketing: Marketing Principles," Advanced Marketing Consultants, http://www.marketingprinciples.com/articles.asp?cat=419,last accessed on December 14, 2007