Table of Contents
Marketing is among the most crucial processes within any business organization because productivity relies on how an organization markets its products and services. Successes in an organization’s sales depend on the volumes of goods or services sold. This implies that marketing should be done in the best way possible for an organization to make good profits. Planning how to sell products or services of an organization and executing the plans hold the greatest weight in the process of marketing. This is because the plan affects the position of a business organization in terms of market share. According to Shankar & Carpenter (2), a marketing strategy is very important in increasing the market share of an organization. A marketing strategy has no clear definition because of various aspects that it shares with other business processes; it can be identified using three distinct traits. First, a marketing strategy focuses on marketing tactics employed by an organization. Secondly, a marketing strategy incorporates the managerial actions towards marketing and thirdly the decision-making process on marketing strategies. This implies that the effectiveness of a marketing strategy is dependent on the marketing teams in organizations.
Different organizations have different marketing strategies that are influenced by factors such as market dynamics, competition, missions, and vision of an organization. Chrysler is a motor company that manufactures and sells different automobile makes all over the world. Its products include sedans, minivans, trucks, and convertibles. Chrysler has its own marketing strategy aimed at maximizing on all available market opportunities. The automaker and seller uses different marketing strategies to remain influential in the highly competitive automotive world. This paper seeks to evaluate the marketing strategy of Chrysler by looking at how the company organizes its marketing. Data from the company and other sources will be used to evaluate the strategies and eventually help in making conclusions about the marketing strategy used by the automaker.
2.0 Marketing Strategies used by Chrysler
Chrysler had mixed market experiences for significant periods irrespective of staying in the automobile market for long. The company revises its marketing strategy frequently to match the existing market condition characterized by fierce competition and unpredictable economic changes. Currently, the marketing strategy at Chrysler focuses in the brand management rather than brand popularity. The marketing strategy is supported by other marketing basics such as advertising and brand promotion (Auto shopping). According to Francois, the person behind the strategy, Chrysler has started experiencing positive impacts of the strategy because of increased popularity in its brand. The company is making more sales and has acquired a competitive advantage hence realizing higher profits.
3.0 Auto Financing
Another notable feature in Chrysler’s marketing strategy is the use auto financing on both the existing and potential customers. This approach is expected to make Chrysler motor brands affordable to a wider market. This will entice more people to buy more trucks. In this arrangement, the company seeks to provide financial assistance to existing and potential buyers by giving them various models of trucks without necessarily demanding for total payments. This implies that people are able to pay for purchased automobiles in installments. This is increasing the market share of the company although in smaller margins, which are very important.
4.0 Product Development
Product development is another marketing strategy that Chrysler is employing in maintaining and increasing its market share. Chrysler has invested in research and technology as a way of making products that are unique in the market. A combination of research, innovation and branding of its products has revamped the company’s position in the automobile market. The company has embarked on brand development that focuses on improving the trucks manufactured in its plants. For instance, the company is developing the 9-speed transmission enabled trucks that are expected to change the market position of the company (Vergel). This marketing strategy is expected to cost the company about $ 843 million, which will go mostly in production of front wheel transmission vehicles.
Differentiation of product from the rest is a viable strategy that works well in marketing. This is because it develops the brand image of a company and facilitates the process of increasing sales. According to Fifield (158), brand improvement is an effective way a marketing strategy can be strengthened. This is because brand improvement gives a product a unique characteristic that differentiates it from the rest. In the process, brand loyalty and identity becomes more pronounced leading to an increase in market share. Chrysler is using this strategy to market its automobile brands. The use of technology plays a leading role in brand improvement. For example, the 9-speed transmission vehicles use some of the latest technological applications.
5.0 Promotion of Products by Advertising
Advertising is a key ingredient in marketing products of a company. Studies have shown that Chrysler does not have a history of advertising its auto models because of minimal competition from other automakers. This scenario has changed with the entry of other local and foreign car manufacturers such as General Motors and Toyota of Japan. According to an announcement in 2011 by the company’s spokes person, Chrysler was planning to boost its advertising budgets by 68 percent (Seetharaman). The plans to advertise Chrysler products emanated from the fact that the company had lost many customers to other companies, and this is perhaps from inactivity in advertising. The move was quoted as being the first step towards reclaiming all customers and attracting new and potential ones by the end of the 2011 financial year.
Various studies conducted to ascertain the role of advertising as a marketing tool have established strong and consistent relationship in comparison to market capitalization and market values of a competitor. Shankar & Carpenter (2012, p. 422), reveal that advertising on of a general scale has a positive, long-term impact on market capitalization. Similar form of advertisement has a negative impact on competitors because it reduces their market value. A closer analysis of this scenario reveals that advertising is a double-edged in the sense that it benefits the advertising company and at the same time mitigates the effects of advertisement from competitors. This is perhaps the reason behind Chrysler’s strategy to adopt advertising habits and matching them with the market trends in the modern markets. Advertising is recognized as a major way that a business organization can improve its stock returns with fewer inconveniences. Specific advertising is employed in situations where the products involved are unique in a certain way. Motor vehicles can probably qualify for unique advertising, and this is the reason Chrysler uses direct advertising to reach its costumers and persuade more people to buy it brands.
6.0 Promoting Selected Product Lines
In response to the competition that Chrysler experiences from other motor companies, the company has started promoting certain products separately. This is meant to increase the market share of the company while mounting competition against other motor companies. Chrysler has resolved to promote its Ram pickup truck that has been reinvented into a better version (Rogers, 2012). The truck uses the latest technology to ensure high fuel efficiency, which translates into more savings for the customer. These features are behind the company's decision to focus on the truck given that it has unique characteristics that are not common among its competitors. Promoting this brand is likely to have a double effect in the sense that people may order for the same and even other models manufactured by the company. In this case, quality is being utilized by the company as a way of reaching a bigger portion on the market especially in United States where such promotions are common. Promoting particular line of products is probably the most effective way of achieving market segmentation. This is because not all products from one manufacturer fit all when they reach the market (Damien & Aaker, 2010).
There is the need to identify customers that are most likely to buy a particular product and them using them to promote the entire product line of a company. This method is instrumental in achieving high performance because the biggest, most profitable attractive and potential customers can be reached easily. Promoting a particular line of products with the aim of increasing popularity of other products is an essential marketing strategy that many companies use to increase the market share. Chrysler uses this strategy by promoting its Ram pickup truck model hence increasing market awareness of its brands. This has been found to be favorable especially when the pickup brand is sold as a brand on its own. Observations indicate that the company increases turnover and eventually increasing profitability this way.
7.0 Use of Network as a Marketing Strategy
The motor industry has become diverse in many ways especially after new entrants flooded United States markets. This means that increased competition has resulted into adjustment in distribution networks, which play a vital role in marketing products of a company. Chrysler is using a marketing strategy that seeks too incorporate networking with dealers to promote its products. According to a report by Reuters, a world-leading news agency, Chrysler is engaging dealers in establishing a business network that will increase the presence of its product in the market (Seetharaman, 2011). For instance, the company is currently encouraging its dealers to merge and form bigger superstores that will ensure a constant supply and availability of its brands such as Dodge, Ram, Chrysler, and Jeep. This is expected to build customer confidence and increases sales. Business networks such as those established between Chrysler and various dealers are an effective way of marketing. This is because alliances have different degrees of influence on different sections of the market.
A marketing strategy is a very important tool that a company can use to enhance sales and boost the overall performance in terms of profitability. There is a need to have a strong and well-elaborated marketing strategy in order to survive competition and make profits. Chrysler, a motor manufacturing company, has a marketing strategy that comprise of different structures. This strategy aims at increasing brand awareness using methods such as advertising. The company also applies unique marketing approaches whereby buyers are partly finance by the company and allowed to pay purchased vehicles in installments.
Promotion of selected products to market other products is also being used by Chrysler to market its products. This improves the company’s image. The use of dealers to expand market reach is also instrumental in improving marketing of Chrysler brands. These observations are clear indicators that a marketing strategy should use the bet methods of selling goods and services if tangible results are to be obtained. Chrysler is likely to continue reaping more benefits if the efforts to strengthen its marketing by use of strong marketing strategies continue. This will help in competing with other motor companies gain ground on a market that is steadily growing.