Ch. 7 - Business Marketing

Ford Motor Company has a long standing with several different companies to purchase their products. Perhaps the most common is rental car companies. Known as a strategic alliance, Ford started with what is now the Hertz Corporation. Ford provided twelve Model T's for rental to customers in 1918. Moving forward to present day, Ford sells cars to rental companies that are slightly striped down versions of models that are available on the lot. A common accessory missing is the built in GPS that comes with many Ford vehicles. This is because rental car companies offer a separate navigation system for a fee.

In this article from the NY times, Zip Car & Ford, Ford announced that it would be providing cars to locations at University's throughout the U.S. This is a huge move for a few reasons. First, Zip Car is typically dominated by foreign auto makers such as Honda and Toyota. Second it gives for an opportunity to reach a demographic many of which will be purchasing cars after College to try the Ford brand. It is a win win situation as Zip Car will receive a heavy discount and Ford will have name recognition.

Ch. 8 - Segmenting and Targeting Markets

Ford Motor Company adapts several different Marketing strategies to promote their product lines. Because Ford offers vehicles that range from Compact to Trucks, it is necessary to use the concentrating targeting strategy. What might be a hot seller in NYC might not sell well elsewhere. At the Ford dealership in Manhattan, you are not going to find a wide selection of Trucks, but more Compact cars. Commercials and print adds for NYC are going to be geared toward smaller vehicles. On the other hand, Ford would most likely advertise their Truck line in Northern Michigan where it snows a lot and consumer have a need for a vehicle of this size and ability.

Ch. 11 - Developing and Managing Products

Product Life Cycles:

Ford Motor Company first introduced Taurus in 1986 where it remained a name stay for the company for almost two decades. During this time period, Ford produced almost Eight Million units. Taurus lead all other manufacturers during this period in the midsize market in sales. During the 2006 model year, Toyota beat out Ford in selling more Camry's than Taurus's. Ford decided to stop production of the Taurus to focus on other brands such as the 500, Freestyle and Fusion. Was this a bad decision on Ford's part? Below you will see sales from 1999 - 2010:

Calendar Year	American sales
1999	368,327
2000	382,035
2001	353,560
2002	332,690
2003	300,496
2004	248,148
2005	196,919
2006	174,803
2007	33,032
2008	52,667
2009	45,617
2010	68,859

As Ford moved from it introductory stage through its decline stage, it is clear to see that maybe they should have kept the Taurus line around; ending production seems to have taken a huge toll on sales numbers.

Fold Holiday (Year End) Promotion

Ford has a annual Year End Event where they offer anywhere from $1,000 - $2,000 off vehicles depending on the model.

Ch. 16 - Integrated Marketing Communications

The Push Strategy: Manufacturer promotes wholesaler, Wholesaler promotes to retailer, Retailer promotes to consumer and finally the consumer buys from the retailer.

This is the most effective in terms of getting a consumer to actually purchase a car/truck or SUV. Ford relies on its thousands of domestic dealerships to sell the final product. Ford can target markets with advertising, but it isn’t until the potential buyer actually makes it to the dealership to learn everything about the vehicle, sit inside of it and drive it that a sales person can push the final step; consumer purchasing from the retailer therefore completing the sale. 

Ch. 10 - Product Concepts

Ford cars, trucks and SUV’s can be considered a shopping product, because it is “more expensive than a convenience product and found in few stores.” As a matter of fact, typically if a buyer wants to purchase a Ford, the only place to go would be a Ford dealership or a used car lot. There have however been cars manufactured by Ford which could make it a specialty product. For instance the Shelby addition of the Mustang which for a 2012 model can cost $50,000, can run up to $250,000 for the below 1967 model.

1967 Ford Mustang Shelby

Ford also falls into the unsought product line. Unsought products are new products that potential buyers are unaware of until they are brought to the market place through marketing and advertising. Ford commonly will have a concept car that they reveal each year at the international auto shows throughout the world. It is at this point that they become unsought products and become a reality where people seek to purchase them in the future.

Ford Explorer Concept SUV

There is not one particular style of car other than the launching of the Model’s A and T when Ford Motor Company started that defined it as a car company. Of course there is the Mustang, one of Ford’s longest lasting models, but there have also been the Escort, Taurus and many others. For Ford, it is the brand that defines it and the product line that determines it.

Ch. 18 - Sales Promotion and Personal Selling

Ford Motor Company is known for its sales promotions, as every car company is. There are many different tactics that Ford uses in promoting its products. Ford can offer low APR financing and rebates, customer loyalty rebates just to name a few. All of these methods are used to achieve one thing, SALES. You most likely will find that if a competitor is offering a rebate on compact cars, Ford will come along with the same incentiive and vise versa.

In an effort to sway owners of other car and truck brands to Ford, you may see advertising such as:

Personal selling is mainly how Ford achieves all of its sales. When you purchase a Ford, you go to a dealership where you meet with a sales representative. All interactions are generally done face to face. This give the sales representative to ability to market and push the Ford brand. It also allows for a relationship to build where the sales representative can provide service from initial interest through post sale of a car or truck.