Marketing is the process by which a product or service originates and is then priced, promoted, and distributed to consumers. The principal marketing functions involve market research and product development, design, and testing. It is the business activity of presenting products or services in such a way as to make them desirable.

One has to consider promotion that is balanced with a suitable product available at a reasonable price, provided at all places to maximize the sale of one’s product.

MARKETING MIX

PRODUCT

PRICE

PROMOTION

PLACE

Brand

Pricing Strategy

Personal Selling

Channels of Distributions

Packaging

Pricing & Quality

Advertising

Physical Distribution

Innovations

Price & Alterations

Public Relations

Wholesaler & Retailers

Quality

Discounts

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

a. Brand : Advertising is often used to make consumers aware of a product’s special low price or its benefits. But an even more important function of advertising is to create an image that consumers associate with a product, known as the brand image. The brand image goes far beyond the functional characteristics of the product. The products of Tata Motors have many special characteristics to them, but when consumers think of it, they not only think of its features, but they may also associate it with quality, performance, class. All of these meanings have been added to the product by advertising. Consumers frequently buy the product not only for its functional characteristics but also because they want to be identified with the image associated with the brand.

Tata Motors have been successful in creating and maintaining a professional brand image.

b. Packaging : A vehicle cannot have a material packaging. Here, packaging refers to and effective assembly of features. Tata Motors provide many innovative features to suit the target customers and the product. E.g. Tata Safari Dicor has ‘Reverse Guide System’ which includes a weather-proof camera to help the driver while reversing the vehicle.

c. Innovations : The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. Tatas have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers, who desire more at less price. This experience has helped them to develop products which fulfill the expectations of Indian consumers.

d. Quality Control : Tata Motors have their Quality Control standards and the QC Dept. ensures that the customer does not face any inconveniences of a defective product.


2. PRICE (Pricing Strategy, Alterations, Discounts)

a. Pricing Strategy : The prices are fixed keeping in mind a number of factors. As told by Mr. Desai, prices have to be at par with the prices of the competitors. Tata Motors give a relative price advantage as compares to its competitors. The various determinants of price are

i. Market Condition

ii. Costs incurred

iii. Profit percentage desired by the Co.

iv. Dealer Profit

b. Alterations : The Company does not allow any alterations to any of the features of the product. If there is an alteration which affects the performance of the engine, then the warranty becomes void. However, there may be alterations in the accessories, if desired by the customer.

c. Discounts : Discounts are decided by the Co. every month. Any further discounts made from the profits of the dealer. However, the Co. may compensate the dealer for the discounts allowed to a certain extent.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations)

a. Personal Selling : There is minimal personal selling involved. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers.

b. Advertising : Advertising is a form of commercial mass communication designed to promote the sale of a product or service. Tata Motors is responsible for the advertising of its products. The dealer does play any role in the advertising. The various media used for advertising are T.V., Newspapers, Magazines, Hoardings, Internet etc. The dealer conducts point-of-purchase displays to advertise the products. The advertisements done by the Co. help the dealer to capitalize on the market.

c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate advertising and personal selling; Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali.

d. Public Relations : Public Relations is a management function that creates, develops, and carries out policies and programs to influence public opinion or public reaction about an idea, a product, or an organization. The Co. takes serious measures to maintain good public relations. The Co. follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires


4. PLACE (Channels of Distribution, Physical Distribution)

a. Channels of Distribution : In case of vehicles, dealership method of distribution and sales is generally adopted. Tata Motors have also adopted dealership method of distribution of its products. The dealers purchase products from the Co. at a negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. As the Co. deals in commercial and passenger vehicles, there may be a single or distinct dealerships to market its commercial and passenger vehicles in a town. However, if there is a single dealership appointed, then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively.

Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities of vehicles are ordered by a Govt. Dept. or a private company. The sales, distribution and billing of these are looked after by the Co. itself.

b. Physical Distribution : The commercial vehicles are manufactured at Jamshedpur, Lucknow and Pantnagar whereas the passenger vehicles are manufactured at Pune plant. From the plant, the finished product is transported to the dealerships. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of its products in the market.


4 comments:

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