Car Industry-Porsche Organisational Markets: buyers such as businesses, govt (military kit), hospitals to develop production of other goods. – Industrial consumption goods: IN consumables/ raw materials = metals, iron, crystal. Car components (engines, tyres, material for seats, suspensions, mechanic devices, chassis) WIP Assembly line production OUT finished goods Energy: oil, lubricant, petrol, water. E. g. Ford is biggest purchaser in UK car industry.
– Industrial durable goods: machinery, equipment, buildings / factories , plants, transport vehicles. – Organisational = large buyers with on-going contract. Professional buyers of cars wit high technical knowledge. – Derived Demand: E. g. Porsche sales double- tyres supplies / sales double.
After sales market increase-suppliers sales increase. – Business Cycles: Car industry may fluctuate due to recessionary economic conditions in a country / competition . Lead to close plants or lay out workers. E. g. Fiat.
This type of market suffers more than consumer markets. International Markets: Car companies like Porsche export its products to more than 50 countries while manufacturing takes place mainly in Germany. Allows them to develop new markets but adopt more risks. – Trade internationally because competitors also do. – Mercedes-Benz and BMW benefit by selling more expensive overseas than in local markets due to taxation and currency values. – Screening Process: all car manufacturers use this before deciding where to export, analyse opportunities, research, and use of marketing mix.
The Research paper on Ford Ka: Breaking New Ground In The Small Car Market
Central Issue With the small car market in France undergoing rapid change, the strategies of yore are making way for newer methodologies. No longer can a car manufacturer simply make a big car for the wealthy and a small car for the less fortunate. For Ford, it is critical that they determine their target market for a new addition to their lineup, the Ka. But first, Ford needs to determine who ...
– E. g. no market for niche cars (Porsche, Bentley, Jaguar) in India and Pakistan. – Adapt to local needs: E. g. Citroen Picasso sold in UK with low suspension and in Brazil with high suspension due to road conditions.
Heating and air conditioning in different climatic places. GPRS systems required in big-developed cities. – Poly centrism followed by major manufacturers-adaptation of product is frequent.
