Marketing Plan: Ford
Contents
Executive Summary................................................................................................................................... 3
Introduction .............................................................................................................................................. 3
Task 1 - Situational analysis: Analyzing and Auditing ............................................................................... 4
External auditing ................................................................................................................................... 4
Task 2 – Barrier to Marketing Planning ...................................................................................................... 7
Task3 - Marketing Planning....................................................................................................................... 9
Product.................................................................................................................................................... 9
Pricing.................................................................................................................................................. 11
Distribution ......................................................................................................................................... 12
Communication Marketing: ................................................................................................................ 12
References .............................................................................................................................................. 16
Executive Summary
Technology is enabling improvements in production and fuel efficiency, but also encouraging us
to drive more sustainably and change the way we use and think about the car. The world is
slowly drifting towards the sustainable technology and consumption. Ford is proposing its new
automobile model to cater the sustainability needs of the consumer as well as achieving the
profitability for the company itself. The report starts with analyzing the marketing conditions and
the need for analyzing the interior as well as external factors that affect the marketing mix. The
barriers to the marketing planning are analyzed and how Ford Motors can overcome them.
Certain management concepts like 10 S framework, new product development theory are used to
validate the product’s development and operation. Further, the new product development is
analyzed with the 4P marketing mix as well as with other ethical concerns. In the end, the
budgeting and performance review strategy is discussed.
Introduction
Competition is the focus of the market operations. It fosters innovation, growth and productivity,
which ultimately creates wealth and market value. To remain competitive in market, a company
should try and reinvent itself at changing dynamics of the market. The pricing should pertain to
the mass customer sections in the market. In the market-oriented pricing strategy, Ford’s goal
should be to set prices that are appropriate for the changing market conditions, considering the
strong competition, consumer perceptions and demands, and other variables. Ford has applied
this pricing strategy for most of its products, such as sedans and trucks in the past.Also on
completely the other side of the aisle, the company applies the premium pricing strategy to set
higher prices for some of its marquee products. This pricing strategy is used for most of the
Lincoln automobiles, which are Ford’s luxury line of vehicles. This element of the marketing
mix emphasizes the importance of different pricing strategies that can support Ford’s efforts to
secure different segments of the market. Ford dealerships are the most prominent places for
distributing most of its products. The majority of sales revenues are achieved through these
dealerships. The company’s automotive parts/components are available in third-party auto parts
stores, as well as the Ford Parts website. In addition, customers can access the firm’s financial
services at the Ford Motor Credit Company offices or through personnel at the dealerships. This
element of the marketing mix shows Ford’s strategy that utilizes different company-owned
facilities and third parties to generate sales(Ford Motor Company- All Vehicles, 2015).
Task 1 - Situational analysis: Analyzing and Auditing
The process of analysis is an integral part of the planning process and involves both an external
as well as an internal audit. The environment and conditions around a company should be
thoroughly scanned in order to spot untapped opportunities to capitalize upon and develop the
corporate image of the company (Onditi, 2012).
External auditing
PEST (Political, Economic, Social and Technological) is a simple tool for performing the
external audit.
Ford’s PEST Analysis
Political Factors:

Market prices, oil charges and costless business continues which access the customer to
devote on the automobile.

Commencement of new organization constitution influence the ford to advance its
standing orders which are essential for assembling a valuable transport (Gundlach et al,
2006).
Economic:

Growth aptitude of functional market: The growth aptitude of functional market will conclude
the attaining potential of the customer. That is the important factor that Ford is
performing in the countries like America, India and Brazil where the growth aptitude is at
a great distance when analyzed to the other business.

Effective Market Amount:Also the purchases of the Ford was affected by the market caliber
where it is accomplishing its trade. When the target market GDP growth is elevated than
the customers will demonstrate more attraction to have an exceptional or luxury
transport.
Social Factors:
Social factors plays an important appearance in flow in appeal derived on the following reasons
like character, statistical, assurance of the customers in that accurate market domain. Some of
social reasons for Ford’s growth are as follow

Geographical Advancements: Fords have customized their vehicles to cater the needs of
customers. E.g. The US for customers will use the cars or economic transports which
have massive engines. But the Brittan buyers are acclimated to use the transports which
are assigned by smaller engines.

Customer Mental Outlook: Customer`s mood plays a role in choosing car model and
composition, If the customers like sports they will choose the sports model car for their
conveyance. But if the customers are thinking about the price and safety bothered then
they`ll apparently select a medium vehicle which will accommodateboth the mileage and
safety (Goi, 2009).
Technological Factors:
Technological factors of the Ford automobile industry are muchmodernized when comparedto
their competitors.

Provide chain association: It is a very basic and too critical reason in the Ford automobile
industry, because the customers of automobile are more distressed about the authorizing
and when the industry is going to convey the vehicle. The Ford organization is having
healthy supply series combination which is in more than thirty countries.

Product Transpiration: Ford automobile organization is dispensing the customer to alter the
car and its demands. So ford had accomplished a chance to inaugurate a fresh vehicle
depended on the most of the consumer`s choice and inclinations. The Ford vehicles
executing will be affected depended on the customer alteration demands (Dominici,
2009).
SWOT Analysis of Ford Automobile Company:
Strengths of Ford

Brand Appearance: Ford brand is very popular in automobile organizations. Its brand
appearance is famous in the worldwide merchandise because of high marketing and
promoting.

Connections with leading organizations: Ford industry has established strong business
partnership with leading organizations like Suzuki and Isuzu Motors Company to
establish exceptional automobiles and in the part to technological attitude for vehicle
industry it is carrying on relations with Toyota and Honda.
Weakness of Ford

Sales Deterioration: The sales appearance of the Ford organization was descent from the
year 2008 to 2009 due to worldwide recession in the world financial market.

Low abundance: Ford detailed its trade actions in expanded terrestrial distances, so
administration is forgetting focus on some lines achievement and it access the ford to
attempt the low productivity.
Opportunities of Ford

Creation of the fuel conducive cars :The recent technology Ford is using is to create cars with
low mileage and grasp. Ford is having a great convenience to produce fuel efficient cars
and commercial vehicles. If the vehicles are established based on electricity engines the
customers will array more attraction to purchase the vehicles, the fact is the vehicle
maintenance charge will low when the car is run on electricity.

Circumstances in India and China markets: Ford is owning the market circumstances in India
and China, both countries having large geographical area and community. The most of
the people in these two countries are more attracted to possess a four wheeler for their
family. That is the fact Ford Fiesta was the most acknowledged vehicle in these two
markets for a large period of time.
Threats to Ford

Accelerated development of competitors: Ford advancement may actuate by rapid growth in the
number of competitors in the transport organization. From the beginning America
claimed vehicle organization. Ford’s main antagonist are General motors, Toyota, Honda,
BMW, etc.

Smaller Capital applying: Ford is applying short on its actions and analysis advancement
exercise, when compared to its competitors. The opponents are consuming large amount
on experiment operations (Ford Motor Company- All Vehicles, 2015).
Task 2– Barrier to Marketing Planning
There are five major barriers to the preparation and implementation of marketing plans. These
are:

Isolating the marketing function from operations
One of the most significant causes of the failure of marketing planning is the belief that
marketing is something that a person “does” in their office. The appointment of a marketing head
is often a last-ditch attempt to put things right when all else has failed. The trouble with having a
new person coming along is, irrespective of their knowledge or skills, they find that all the power
is vested in “others”.
For the purpose of marketing planning, Ford should put marketing closest to the customer. The
Marketing and Sales Report should be presented to the same person, preferably other than the
CEO of the company or the unit (Van Watershoot et al, 1992).

Confusion between the marketing function and the marketing concept.
Marketing is not just about strategizing the plans sitting in an office. It is the whole process from
ideation to the implementation and ultimately execution of the strategy. Most of the companies
and employees fail to understand this. The conceptual and theoretical knowledge of Marketing is
just a reference and should be made to evolve periodically through the experiences in the market
space.
It is to be understood that every employee of the marketing team should be able to foresee the
SWOT related to the project and should be working on a pre-decided line from the beginning. A
SWOT should be focused on each specific segment of crucial importance to the organization’s
future and be a summary emanating from the marketing audit and be brief, interesting and
concise.

Lack of in-depth analysis and confusion between process and output.
Even from well-respected companies, the most common complaint concerns lack of adequate
information for the purpose of analysis. On deeper investigation, however, it nearly always turns
out to be a case of too much information rather than too little. The real problem is frequently lack
of proper analysis. Confusion between the management process itself and the output of the
process, the marketing plan, is common.
For an effective marketing audit to take place, checklists of questions customized according to
level in the organization should be agreed (Yun-Sheng, 2001).

Lack of a systematic approach to marketing planning.
A marketing planning system is essential to ensure that things happen when they are supposed to
happen and that there are basic standards which must be adhered to. The coherence which is
required is impossible to achieve due to the different levels of intellect and motivation of
participating mangers.
It is essential for Ford Motors to have a set of written procedures in a common format for
marketing planning. It is to ensure all key issues are systematically considered and to help
corporate management to compare diverse businesses and to understand the overall condition of
and prospects for the organization (Security and Exchange Commission, 2014)

Failure to prioritize objectives in hostile corporate culture.
Ford must ensure that all objectives are prioritized according to their impact on the
organizational goals and growth and their urgency and the required resources are allocated
accordingly.
Task3 - Marketing Planning
Product
Ford Motors will plan to venture into the smart cars market. Smart cars not only will reduce the impact of fuel on
environment and would prove as a sustainable breakthrough technology, few years down the line, it will also
prove itself as economical and mass-based (Rahmani et al, 2015).
Product Development
New Product Development Steps
1. Idea Generation
Ford Motor’s new product Development
Idea Generation
The development of a product will start with
Ideas can, and will come, from many different
the concept. The rest of the process will
directions. The best place to start is with a
ensure that ideas are tested for their viability,
SWOT analysis, (Strengths, Weaknesses,
so in the beginning all ideas are good ideas.
Opportunities and Threats), which
incorporates current market trends in
automobile industry. This can be used to
analyze your Ford’s position and find a
direction that is in line with your business
strategy.
2. Idea Screening
Idea Screening
This step is crucial to ensure that unsuitable
Specific screening criteria need to be set for
ideas, for whatever reason, are rejected as
this stage, looking at Risk on Investment,
soon as possible. Ideas need to be considered
affordability and market potential. These
objectively, ideally by a group or committee.
questions need to be considered carefully, to
avoid the vehicle’s failure after considerable
investment down the line.
3. Concept Development & Testing
Concept Development & Testing
Using a small group of your true customer
This stage will give Ford a chance to develop
base – those that convert – the idea need to be
the concept further, considering the feedback
tested to see their reaction. The idea should
of their regular clients and current market
now be a concept, with enough in-depth
reports, but also to start thinking about what
information that the consumer can visualize it. the marketing message will be.
4. Business Analysis
Business Analysis
Once the concept has been tested and
This analysis needs to include: whether there
finalised, a business case needs to be put
is a demand for the new vehicle, a full
together to assess whether the new
financial appraisal of the costs, competition
product/service will be profitable. This should analysis and identification of an achievable
include a detailed marketing strategy,
and
profitable
break-even
point.
highlighting the target market, product
positioning and the marketing mix that will be
used.
5. Product Development
Product Development
If the new product is approved, it will be The exact design & specifications and the
passed to the technical and marketing manufacturing
development stage. This is when a prototype technology
or a limited production model will be created.
methods
will
be
of
the
vehicle
investigated,
and
something tangible is to be given for
consumer testing, for feedback on specifics
like look, feel and packaging for example.
6. Test Marketing
7. Test Marketing
Test marketing (or market testing) is different This process will required to validate the
to concept or consumer testing, in that it whole new vehicle idea and will be used for
introduces the prototype product following further refinement of all elements, from
the proposed marketing plan as whole rather product
to
marketing
message.
than individual elements.
8. Commercialisation
Commercialisation
When the concept has been developed and
Ford Motor’s new product’s pricing and
tested, final decisions need to be made to
profitability analysis will be done and a
move the product to its launch into the
marketing plan will be chalked out. The sales
market.
and distribution team will be briefed about the
product.
9. Launch
Launch
A detailed launch plan is needed for this stage Launch should be designed so as to promote the
to run smoothly and to have maximum message of sustainability and positive economics in
impact.
It
should
include
decisions the minds of the consumers. Also, the reviews from
surrounding when and where to launch to the pre-launch activities should be taken and necessary
target your primary consumer group.
improvisations should be made.
Pricing
Ford’s new product prices should be made variable, depending on the market. Once the market
opens its doors for sustainable vehicle technology, the product’s price could be increased as it
will have the competitive advantage. Till then, the prices should be relatively low compared to
the marquee products of other companies (Ford Motor Company- All Vehicles, 2015).
In the market-oriented pricing strategy, Ford’s goal should be to set prices that are appropriate to
market conditions, with consideration for competition, demand, consumer perception, and other
variables. Ford applies this pricing strategy for most of its products, such as sedans and trucks.
On the other hand, it applies the premium pricing strategy to set higher prices for some of its
products. This pricing strategy is used for most of the Lincoln automobiles, which are Ford’s
luxury line of vehicles. This element of the marketing mix emphasizes the importance of
different pricing strategies to support Ford’s efforts to secure different segments of the market
for the new product (Rosenbloom et al, 2008).
Distribution
Ford must use typical venues for its strategy of product distribution. Ford has the following main
places used for product distribution:
1. Dealerships
2. Auto parts stores
3. Ford Parts website
Ford dealerships are the most prominent medium for distributing most of its products. The
majority of sales revenues are achieved through these dealerships. The company’s automotive
parts/components are available in third-party auto parts stores, as well as the Ford Parts website.
Ford’s strategy should utilize different company-owned facilities and third parties to generate
sales and ultimately increasing profitability (Ford Motor Company- Motorcraft Auto Parts, 2015)
Communication Marketing:
Ford Motor Company promotes it products through all of the conventional tactics. Ford’s
promotion activities are as follows, arranged according to significance:
1. Advertising
2. Personal selling
3. Direct selling
4. Sales promotions
5. Public relations
The company’s television advertisements and online advertisements are prominent. Ford
effectively applies all of the marketing communications tactics to promote its goods and services.
To supplement its already high performance in the marketplace, Ford should also communicate
the queries and complains of its customers via social networking mediums like Facebook or
Twitter. Also, creating a mobile based app will facilitate easy solving of problems.
Today’s Generation Z consumers have become very rapid in their thinking as well as actions.
Employing the above tactics will help Ford to stay parallel and matched to their needs and
demands from the automobile products.
ETHICAL ISSUES
Major corporations fear the damage to their image associated with press revelations of unethical
practices. Marketers have been quick to perceive the market's preference for ethical companies,
often moving faster to take advantage of this shift in consumer taste. This results in the
propagation of ethics itself as a selling point or a component of a corporate image.
Marketing ethics, regardless of the product offered or the market targeted, sets the guidelines for
which good marketing is practiced. To market ethically and effectively one should be reminded
that all marketing decisions and efforts are necessary to meet and suit the needs of customers,
suppliers, and business partners. The mindset of many companies is that they are concerned for
the population and the environment in which they do business. They feel that they have a social
responsibility to people, places and things in their sphere of influence.
Market Audience
Selective marketing is used to discourage demand from so-called undesirable market sectors or
disenfranchise them altogether. Examples of unethical market exclusion are past industry
attitudes to the gay, ethnic minority, and plus-size markets.
Another ethical issue relates to vulnerable audiences in emerging markets in developing
countries, as the public there may not be sufficiently aware of skilled marketing ploys.
Delivery Channels
Direct marketing is the most controversial of advertising channels, particularly when approaches
are unsolicited. TV commercials and direct mail are common examples. Electronic spam and
telemarketing push the borders of ethics and legality more strongly.
Ethical issues are both negligible and non-negligible problems. The best way to handle these
issue is by taking some prerequisite precautions. The fair treatment of customers must root in all
the area of management. An effective ethics/compliance policy must focus on the areas where
the laws have not yet regulate and on the potential breaking points where ethical problem can
become legal problems. An effective ethics/compliance policy must take its root in cohesive
teams. This means that the policy needs the endorsement of every single team in the company.
These are some of the factors that can avoid or solve ethical issues for Ford Motors.
Marketing Budgets And Performance Monitoring
The annual marketing budget of Ford Motors in the year 2013 was US $ 5 million. Considering
the novelty of the product and the marketing message that is to be promoted, the expected budget
for marketing should be around US $ 2.5-3 millions, adjusting to inflation.
Given below is the general flowchart for performance monitoring. It is important so as to avoid
the mistakes done prior to the launch of product and implement and execute the whole process
without committing any major errors.
References
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[Accessed: 31st October, 2015]
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