The Marketing Mix of Volkswagen Group

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Q2. Using one specific multinational enterprise with which you are familiar, examine the ways in which it has used the international marketing mix in its overseas operations. Explain the reasoning behind the choices it has made. Suggest any changes it might make to the international marketing mix over the next few years. Explain your reasoning.

International Marketing Mix of Volkswagen Group in India

Part 1: Background

The Chartered Institute of Marketing (CIM) defines marketing as ‘the management process responsible for identifying and satisfying customer needs profitably’.

The American Marketing Association’s definition is: ‘The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals.’

According to Wall, Rees and Minocha (2009) the three major elements involved in the marketing role are:

1. Customer orientation
2. Integrated effort, which means a focus on marketing throughout the organisation. 3. Goal focus, particularly on longer-term strategic aims

Marketing is based on identifying, anticipating and satisfying customers’ needs effectively and profitably.

It encompasses
-Market Research
-Product Planning/ Development
-Product Pricing
-Product Marketing
-Sales
-Promotion
-Distribution
-Customer Care
-Branding
-Merchandising
-Retailing
-Website Marketing
and much more.

We can define marketing as a process of performing market research, selling products and/or services to customers and promoting them via advertising to further enhance sales. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

Another way to define Marketing is as a process by which

-One identifies the needs and wants of the people.
-One determines and creates a Product or Service to meet the needs and wants. [Product] -One determines a way of taking the product or service to the market place. [Place] -One determines the way of communicating the product to the market place. [Promotions] -One determines the value for the Product. [Price]

-One determines the people, who have needs/ wants. [People]

and then creating a transaction for exchanging the product for a value and thus creating a satisfaction to the buyer’s needs and wants.

These factors of Product, Place, Promotions and Price are often considered to make up the international marketing mix.

Volkswagen Group:

The scope of this essay is to discuss the international marketing mix of Volkswagen, which is one of the biggest car brands in the world. Headquartered in Wolfsburg, Germany the Volkswagen group sold 6.3 million vehicles worldwide 2009 (Volkwagen Group Annual Report, 2009). Its 329,305 employees generated sales revenue of 105187 million € with an operating profit 1855 million € which resulted in a profit after tax of 1261 million €.

The group is divided into two divisions, namely the automotive one, accounting for 91% of total revenues plus the financial one, contributing 9% to the total turnover. Within the automotive sector, the company markets its vehicles under brands like, VW passenger cars, Audi, Porsche, Bentley, Bugatti, Lamborghini, Seat and Skoda.

The key element of the Volkswagen group’s “strategy 2018” is to position Volkswagen Group as a global economic and environmental leader among automobile manufacturers. In 2018, the Volkswagen Group aims to be the most successful and fascinating automaker in the world. In order to achieve that, they harvest their four goals as: 1) Volkswagen intends to become a world leader by using intelligent innovations and technologies, while at the same time delivering customer satisfaction and quality. 2) Over the long term Volkswagen aims to increase...
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