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Electronic Marketing
Introduction
As the market environment become unstable, aggressive and fierce, organizations and business entities are increasingly being compelled to adopt new approaches and strategies in order to enhance their competitiveness. Whereas others are capitalizing on their core competencies, a significant percentage of businesses appreciate the role of varied technological tools in improving their performance. It can not be disputed that the respective technological tools have become increasingly fundamental in the recent past. Most importantly, the use of the internet has provided a host of marketing solutions to modern businesses. Diverse businesses and organization are therefore tapping this capacity in a bit to reach a wide clientele and realize significant profits. Besides this, other technological tools also play an imperative role in communication and performance of specific roles. The fact that they have played a leading role with respect to achieving and maintaining efficiency can not be disputed.
One of the sectors that can benefit immensely from use of electronic marketing is the auto industry. Emergent research indicates that minimal efforts have been undertaken to use technological tools in marketing automotive products. This is regardless of the fact that this approach increases sales and enhances efficiency. The inherent ease in communication between the client and the company can not only enable customized production but it can also enable the client to understand and appreciate the various products that auto companies offer. In this consideration, it is of paramount importance for auto companies to review their apperceptions in this regard. Although Ford Motor Company has taken certain initiatives to incorporate technology in its marketing tools, company analysis report affirm that the measures are limited and have not borne beneficial results. This paper provides an in depth evaluation of the company. In addition, it provided viable recommendations regarding how the company can assume relevant e-marketing strategies in order to enhance optimal performance.
Ford Motor Company
Ford Motor Company constitutes one of the most renowned and leading motor manufacturing companies found in the United States. Having been established in 1903, the company has undergone massive developments throughout the twentieth century. At its inception, Austin and Cotteleer (1997) cite that the company was looking forward to great business. Just like other traditional companies that have withstood the test of time, Ford’s beginnings can be considered to have been modest. With respect to capital, the eleven business associates had a significant $28,000 with which they decided to register the company as a corporation. Its business operations were consistent and improved through time, enabling it to have a total of 350,000 stock holders by 1956. Currently, the company operates on a global scale with 108 plants worldwide (Lewis, 2003). The company concerns itself with developing, servicing, designing and manufacturing trucks, parts and cars on a global scale. Further, it also provides car rental services on a daily basis. It’s affiliated and core automotive brand are Land Rover, Aston Martin, Mercury, Volvo, Lincoln, Mazda, Jaguar and Ford.
Furthermore, the company offers wide ranging products as well as after sells services and vehicle parts. Lewis (2003) ascertains that it offers its clients services related to heavy repair, collision, extended warranty, and light maintenance repair and vehicle accessories. It also has a financial sector under the name Ford Credit Services. This also provides varied services that arrange form retail financing, real estate refinancing and loans to dealers to automotive products financing and wholesale financing. Also, it leases and finances various receivables related to loans and affiliates and purchases purchase-related receivables and finance related insurance services. The company also buys raw materials that are employed in production across the globe. The materials consist of non ferrous as well as ferrous casting iron. It has its personal license with respect to use of trademarks, patents and copyrights.
Its production standards are in line with the expectations of the United States and European regulations. Respective regulations include fuel economy, safety, vehicle damage, substance control and emissions control. (Banham & Newman, 2002)
Currently, company headquarters are located in Dearborn, Michigan. It distributes its automobiles that range from cars to trucks in an estimated two hundred markets found across the globe. According to Banham and Newman (2002), the company’s moving assembly line currently contributes the most on its business operations. Company reports indicate that this line is efficient and has helped the company to exceed its production levels and outperform is competitors by y far. In addition, this efficiency has enabled the company to offer the vehicles to the clients at an affordable price. The company is one of the oldest and its operations are currently in their second century. Its dynamism with regards to the need to incorporate the diverse client needs in productions have enabled it to maintain a consistent growth through time.
Ford’s Marketing Strategy
In his research, Shih (2009) ascertains that a marketing strategy is fundamental for any company that wishes to not only develop but to also diversify its products and services. In an auto industry, these need to be analyzed and implemented with utmost consideration in order to attain optimal results. This is because of the sensitive nature of the products that auto companies deal with. According to Rheigold (2002), it needs to be aligned to the primary goal and objectives of the company. In addition, it should incorporate the promotions of the product as well as the price, place and marketing strategies. The marketing strategy of Ford can be considered to be all inclusive in the sense that it captures the holistic interests of the clients in light of their culture.
One of the marketing approaches that the company has employed according to Lewis (2003) pertains to sponsorship. Through this, Ford Motor Company has succeeded in associating its name and brands with high profile social activities and events. Besides this, sponsorship has made it possible for the company to establish viable relationships with its clients. For instance, Sterne (2010) cites that through the UEFA Champions League, Ford has been able to reach varied customers for a period of nine months. Undoubtedly, this marketing opportunity has accorded it a competitive advantage against its competitors.
Further, Davenport (1993) maintains that Ford has used its products as a key marketing strategy. In this respect, the company ensures that the manufacturing process incorporates consumer concerns and preferences. In addition, it has embraced diversification that has enabled its products to reach a broad client base. This has been attained through frequent market researches that underscore consumer needs and preferences. The company ha also used the price aspect to reach a wide clientele. In this, its prices are reflective of market prices and production costs. Besides allowing a profit margin, Ford’s prices enable it to compete with it competitors accordingly. In some cases, the company is compelled to use place its prices lower than its competitors. This is not done at the expense of prestige.
As aforementioned, the company has an estimated two hundred branches across the globe. In order to attain optimal results, Comm (2009) posits that strategic placement is imperatively important. Ford Company seems to have mastered this art as the different locations are strategically placed. This has enabled the company to reach its consumers and maximize coverage accordingly. Of great importance has been the company’s promotional strategy. In this regard, Michael (2008) indicates that the company adopts both the above –the-line and below-the-line promotion approaches. Besides, television, it also employs the print media to reach a wide range of clients. Advertisements containing specific brand messages are often placed on television and targeted at the individuals that are watching.
Ford adopts a resurgence marketing strategy that is defined by ‘The way forward principle’ (Levine, 2000). This seeks to incorporate innovations as well as vision in production of sustainable products and secure profitable changes within the organization. The company uses this principle in a bit to attain a lead in the industry throughout the twenty first century. It attains this through personnel job cuts in order to have a huge impact on communities and families. This principle also seeks to alleviate communal and family related burdens that compromise growth and development. The personnel and company officials are expected required to sacrifice in this regard in order to reduce salary related costs by an estimated twelve percent. Ultimately, this is expected to culminate in development of jobs that are not only secure but also stable. This strategy is customer oriented and also works towards attaining factory floor efficiency, fuel efficiency and safety. With respect to product manufacturing, this approach seeks to incorporate attributes related a distinctive feel, fun and tough quality.
The green production strategy has improved the competitiveness of the company significantly. In this regard, Robers (2008) affirms that current trends are moving towards incorporation of environmental awareness in production. Environmental protection has been imperative in changing consumer attitudes and more than ever, companies are being compelled to incorporate relative concerns in their production. Consumers have become wary of the negative impacts of environmental degradation and as such, they increasingly prefer products that perform exceptionally environmentally. The company capitalized on this and together with it stakeholders, it has ensured that its products are environmentally friendly.
The company also uses brand management in order to maintain quality performance. In this regard, the company has adopted a global approach that enables it to popularize its brand. By making quality production as mainstream factor, it has been successful in building brand awareness even in regions where its products are no commonly used. Consumer awareness has been instrumental in boosting sales in different global regions. Then, supply chain management according to Michael (2008) has enabled the company to improve their performance. To begin with, this has enabled it to maintain a steady supply of raw materials that are fundamental for production. Establishment and maintenance of viable relations with the glass, plastic and steel raw materials supplier has ensured steady supply that enables the company to maintain consistency with regards to production. Further, the moving assembly line has incorporated efficiency in its production processes. The inherent mass production enabled the company to stay ahead of its competitors and save time and costs at the simultaneously.
Equally important has been the company’s use of internet in production and marketing. In hi research, Anderson (2008) ascertains that Ford attained impressive results after incorporating information technology in its production and marketing. Besides connecting company employees and enhancing streamlined communication, creation of user profiles enabled the company to reach various clients. Through this medium, the employees are able to communicate with the clients about important information. This has played an integral role in informing the public about the products of the company as well as incorporating critical consumer concerns in production. Further, by placing various models on the company website, consumers across the globe have been able to view them and respond accordingly.
Digital Trends in the Auto Industry
Technological changes have had massive impacts on marketing in the auto sector. In particular, the inherent digital changes have impacted on the attitudes of the consumers, the budgets of the companies as well as their marketing opportunities. In their research, McLellan and Heaton (2010) indicate that that current trends are incorporating social media marketing strategies such as twitter and facebook in reaching and communicating with clients. Initially, emailing was considered an important mode of communication between the manufacturers and clients in the auto industry. Important information regarding the automotive products was availed to the consumer base through emailing. In addition, Google provided a host of information regarding the industry in different ways. However, this has changed since the introduction of social networking tools. Most of the clients are finding information regarding various auto products as well as industry profile on facebook. Through this medium, auto companies have been able to send friends personal messages regarding the products that are available in the market. This according to Straus and Frost (2009) is slowly displacing the culture of use of email in communication. This differs from the conventional mailing on the premise that it does not require an address book and does not have incidences of spam.
Employment of mobile devices in different operations is an apparent trend in the motor industry. In his research, Anderson (2008) ascertains that the employment of mobile technologies in the commercial sector has been expanded to incorporate payment of the purchases of goods and services. This can be attributed to a specific feature that enables transfer of money using mobile phones. Specifically, the advanced features pertaining to android and iPhone have been instrumental in enhancing the payment of products using the phone. Current trends indicate that automotive consumers have in most instances been tempted to impulse buying of small upgrades as well as items of cars such as accessories. The intrinsic ease and reliability ensures that purchases are made according to user preferences. The extension of this to platforms containing Google checkout and paypal has further made it convenient for consumers to make purchases and payments accordingly.
Then, Sterne (2010) indicates that services such as OpenID and Facebook connect have eased registration in important sites. Initially, an individual needed t register severally before s/he could have access to different sites. This has enabled consumer in the auto industry to easily access a host of information from diverse companies. The inherent speed and reliability has been instrumental in enhancing quality services. The emergence of social communities has also prompted industries to invest in online communities. This has been aided by free floating social networking tools like Sidewiki and Google wave. Current trends show that there is an increasing need for integration of social activity and online identity. Consumers are refraining from sole concentration on discrete platforms like facebook. This trend implies that consumers of certain auto products are likely to be easily found in social groups available online. This implies that companies would be expected to incorporate the aspects of objectivity and ensure that the information that they provide to the public is factual and authentic. Failure to address this concern is likely to culminate in far reaching implications because of the resultant negative changes in attitudes.
Statistical evidence also shows that the employment of info-art is a current trend that has diverse impacts on the auto industry. Compared to the past, infographic technological features have improved the complexity of the data that is employed for various purposes. This has not only provided useful insights to the consumers but it has also spurred innovation in the industry because of the availability of information. The fact that the respective information is captured and analyzed elegantly has enhanced is consumption by the auto industry (Chafrey, Ellis-Chadwick, Mayer & Johnston, 2009).
Current trends show that besides the conventional use in micro sites, brand sites and media sites, the flash media is gaining importance in the technological sphere. In their review, Laudon and Traver (2007) indicate that in the past, this feature was close to loosing its viability with regards to applications in serious websites. Currently, the media tool enjoys use by the development community and advocates. They are useful in performing several tricks as well as authoring activities apart from the traditional roles. Davenport and Brooks (2004) contend that these provide dependable and searchable sites that enhance acute, comprehensive traffic, behavioral analysis and search engine optimization. At this point, it is worth acknowledging that as websites assume an elevated niche in the auto industry, the demand for detailed and precise brand extending experiences is also likely to improve. Further, the development and increased use of the broadband is likely to curb download issues. Therefore, it is certain that use of flash on different mobile tools is likely to increase dramatically. This would be triggered by the need to attain high usability, brand transporting, fuel reach and conversion-based experiences.
The development of software related to crowd sourcing also has diverse impacts on the holistic wellbeing of the society. Harris and Dennis (2008) posit that crowd sourcing has become and important aspect of outsourcing strategies. More than ever, auto industries are utilizing this in order to improve their performance. Using technological advances, different organizations are increasingly using the crowds and interest groups to perform important tasks pertaining to marketing on their behalf. Besides being cost effective and sustainable, such approaches are building capacities through the enhancement of critical thinking as well as creativity. In the auto industry, crowd sourcing approaches have been adopted for advocacy and activism in implementation of social corporate projects.
Despite having positive impacts with regards to changing the auto industry, it should be appreciated that these digital changes are likely to equally impact negatively on the industry. In order for the given organization to stay head of it competitors for instance, it would be expected to adopt the changes in a sustainable and timely manner. Constituent negative impacts would also need to be addressed accordingly in order to yield optimal results. Equally important would be the need to stay vigilant and keep upgrading the system for optimal output.
Key Areas that Digital marketing will Impact
From the preceding analysis, it is certain that technology is pervasive and digital marketing is likely to have diverse impacts on the functioning of the auto industry. Ford Motor Company can particularly yield immense benefits from the adoption of this strategy.
To begin with, e-marketing has the potential to ease transactions because of it ability to enhance speedy operations (Miletsky, 2010). This would enable Ford Motor Company to not only reach a wide client base but to also establish and maintain viable relationships wit the clients. The results increase in sales would enable the company to diversify its products and enhance its operations in a bit to reach other markets and gain competitive advantage at the same time. In particular, the company would not only be able to assume twenty four hour business but it would also allow the consumer to make purchases from anywhere. Through the website, Ford would be able to continue reaching its clients and providing vital information for their disposal. Moreover, features such as price comparison tools and booking of test drives are likely to give the company a competitive edge.
Communication is another aspect that is likely to be impacted upon by the inherent technological developments ad adoption of e-marketing strategies. Levine (2000) argues that companies that run updated websites are usually able to communicate with their suppliers, clients, employees and customers. Notably, this is particularly important for an international Company like Ford that has operations across the globe. Besides emailing, employment of facebook can ease communication between is stakeholders. Use of mobile phones to purchase products has reportedly enhanced efficiency with regards to operations. Inquiries by the consumer regarding different aspects are likely to be eased and timely information provided to the consumer accordingly.
The impact of the e marketing on the sales of the company can not be underestimated. In his research, Chaffey et al (2009) indicates that e-marketing has beneficial impacts on the sales of a given organization. This is attributable to the fact that consumers have a chance to access vital information with which they employ in making critical decisions. This platform also provides a chance for personalized service as employees create user friendly profiles. The resultant improvement of customer relations has a positive impact on the welfare o the organization. Besides, e-marketing enhances organizational planning. In this regard, Comm (2009) asserts that technological advances play an important role in enhancing performance. Use of specific software also enhances monitoring and evaluation that is fundamental in eliminating possible inconsistencies. This is likely to improve the efficiency of the organization with regards to performance. Moreover, it improves output that boosts growth and development.
Most importantly, the marketing would have an impact on the budget of the company. Certainly, the adoption of relative strategies is likely to culminate in elimination of operation related costs as efficiency would be assured. In this respect, Anderson (2008) maintains that e-marketing culminates in elimination of personnel that were employed in marketing. More over, it makes operations lean and objective as they are based on established and distinctive procedures and models.
E-marketing has the ability to improve the responsiveness of Ford Company to the needs and requirements of the customers. Intrinsic trends show that employment of e-marketing enables the employees to respond immediately to the information needs of the consumers. This is beneficial as respective customers would be able to resolve their problems as ell as make their decisions in a timely manner. Coupled with the ability to provide accurate and sufficient information to the clients, e-marketing is undoubtedly beneficial. Technological research asserts that there is a positive correlation between speedy service delivery and user satisfaction.
Recommendations
At this point, it is certain that Ford needs to review its e-marketing strategy by aligning it to the current technological developments. In particular, the use of social media can be very beneficial. To begin with, Ford Company can develop an internal Micro site. This needs to be solely employed for collecting vital information form the consumers. For this reason, it needs to have various web 2.0 aspects like customer comments section that would enable the current customers to leave comments regarding the performance of the company. Within this, the company can incorporate a feature that enables live updating to ensure speedy response. In addition, the Company can have a facts and figures section in this micro site that provides factual information pertaining to company trends to the consumers. This would go a long way in reassuring them of the seriousness of the company in handling customer needs.
To enhance optimal output, the company needs to have its other social media channels like Twitter, You Tube, and Facebook direct the client to this micro site page. This way, it would be able to reach a wider client base. In addition, it would increase interactivity and ensure that consumer concerns are addressed accordingly. Then, the company needs to focus on enhancing interaction, influence as well as intimacy during its operations. In this respect, Austin and Cotteleer (1997) cite that there are parties such as the government trade magazines and a host of websites that promote the company. In order to continue benefiting form these, Ford needs to improve it public relations program. It needs to be actively involves in social media by commenting on consumer update. This would encourage the consumer to discuss vital issues and offer useful insights that aid in company development. In addition, this enhances interactivity and can have positive impacts on consumer attitudes. This is because the inherent inclusiveness aids in enhancement of sustainable development.
Action Plan
To implement viable e-marketing strategies in its operations, Ford motor company needs to undertake practical measures. The implementation process would take at least six weeks. To start with, the company would be required to carry out a situational analysis. This would be attained using the SWOT model in order to identify its key strengths, weaknesses threats and opportunities. Situation analysis is important as it underscores the company state of affairs that then ensures that the activities that any response to this is based on informed thought. Then, the company would proceed to e-marketing strategic planning that involves an explicit analysis of aspects pertaining to communication, value and customer relations.
After developing and launching the internal site, the company would be expected to adopt an aggressive marketing strategy. In this regard, Lewis (2003) suggests placing banners for a period of three months on the sites that are frequently visited by the customers such as the company web site. In addition, it can enhance public awareness by using electronic referrals and print advertisements in local as well as international media. Finally, it would be required to hire additional staff that would be responsible for maintaining the site and ensuring company interactivity through already established sites on other social media. To ensure monitoring and evaluation, a balanced score card would be employed to analyzed both planned and actual performance of these initiatives.
Conclusion
From the preceding analysis, it is certain that Ford Motor Company is a stable and has undergone various transformations through time. It ventures in diverse products and services that generate significant revenue. With respect to strategic marketing, the company employs sponsorship, supply chain management, promotions, strategic locations, sustainable and green production and internet to reach its clients. Current trends show that the e-marketing is increasingly adopting social marketing media to have optimal output. The company needs to follow suit and ensure active involvement and interactivity with the customer. This would enhance consumer feedback and sustainable decision making by the company. An ideal action plan would include various activities that range from situation analysis to monitoring and evaluation.
References
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