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.

Ch. 17 - Advertising and Public Relations

If a person were asked to name the first five car companies that come to their mind, you can imagine that Ford would most likely be one of the five. You may ask why I would open this blog with that question. The reason why is because Ford Motor Company has been around since 1903. With that said it has managed for over 100 years to be a name stay in the ever changing world of car manufacturing. The next question that may be asked is why would Ford spend millions of dollars per year on a name that is already a recognized by probably ever household in the U.S. and most of the world.

In the past several years, Ford has become most proud of one thing that they say is an accomplishment on its own aside from conventional marketing and advertising. In 2008 as the markets were collapsing and the Government started offering bailouts the troubled automakers such as General Motors, Ford declined a one billion dollar handout. It is this says Ford’s Chief of Marketing Jim Farley that gave Ford a huge one up on marketing the brand. "I think it was worth more than $1 billion of coverage and customer interest," he said. "If I had to go out and advertise, it would be that kind of bill in paid media. It's a once-in-a-lifetime thing." Essentially it was free marketing to say that the Ford brand would be better than ever! 

Ford Motor Company Marketing Team

 

As for how Ford has chosen to spend their dollars on marketing and advertising, you can just turn on your TV or open up a popular magazine to see. Ford over the past eight years has spent huge amounts of money to be the main advertiser for American Idol. Ford chose this as a way to market their compact car lines to a younger audience. In addition to commercial dominance during Idol, they also have the AI hopefuls perform in music videos highlighting a particular model of car. More likely then not, it is either the Focus or the Fiesta to market to a younger demographic. Ford also has several slogans that they have utilized over the years “Built Ford tough” being among the most popular for the truck line that Ford offers. 

American Idol Commercial Shoot

It is important in the ever changing popularity of car brands that Ford spend as much money as possible on marketing and advertising their brand. With so many options for U.S. and Foreign competitors, it is imperative that the potential buyer understands what Ford has to offer.

Ch. 15 - Retailing

Ford dealerships are a common site anywhere whether you are in the US or abroad. There are roughly 3,700 Ford dealerships located in the United States. As I prepared to head to Manhattan Ford located on 11^th Avenue, I had several recollections of the Ford brand as a whole. My Grandfather was an Engineer at Ford. My family always drove Ford cars or trucks. My first car was a Ford Probe GT. In fact, much of anything that I ever knew about cars growing up usually came from the Ford brand.

As I have lived in Manhattan for seven years now and Chicago for 6 years before that, I have had little to no need to visit a car dealership, I didn’t really know what to expect. I walked in and immediately thought about the first Ford dealership I had ever been to as a child in Michigan. On the floor you had examples of their latest car lines. Of course every model they had was the most expensive model they make; even the Fiesta had leather interior.  I always remember it being that way when I was a child. I always wanted my parents to buy what was in the showroom floor. 

Ford Manhattan’s showroom is definitely different from an information/marketing and comfort standpoint then from what I remember in the past. For instance there are “concept salons” for each line where you sit and learn about Ford’s product line based on which one you are interested in. For the comfort factor they have Café 11 which serves Starbucks coffee. It all seemed a little much to me, but I can definitely see how one would be interested. I am more of a grab a brochure, go home and read it over kind of guy. I was defiantly interesting though to utilize the interactive learning tool. The one thing that did not change though is the sales force. Pushy as ever, it was really the main reason I left faster than I had expected. Overall it was nice to visit. It was good to see how dealerships have changed with the times.

Ch. 6 - Consumer Decision Making

Now more than ever consumers have more and more products available to them. In the case of Automobiles, there are so many brands, domestic and foreign. What consumers are forced to do is make decisions, also known as Consumer Decision Making.

Ford realizes that consumers have many options and know that in order to gain market strength, they must be clear in what they are offering and why there product is superior to the competitions. Automobiles can be a need for some and not for others. While considering need recognition of consumers, it is Ford's hope that their products will appeal to the masses on both sides. This is done by offering a wide range of cars, trucks and SUV's.


When consumers begin their search for information, they may ask themselves about what they have heard about other folks that have owned Ford products. Have they heard good things? Bad? Has the consumer owned a Ford product in the past? This plays a huge roll in if they will be considering Ford for their purchase or another competitors product.

After consumers have sorted through the above, they are ready to compare and contrast. Some consumers may sway one way or another based on the brand itself. They might "want" a Toyota, but opt to move toward the purchase of a Ford because it is a domestic car company and vise versa if the consumer is purchasing in their home Country.

After the purchase of a Ford has been made, the consumer is going to hope that their decision was worth it.They are going to want the product to perform, make them feel good while they operate it and be able to have an overall sense of satisfaction. Ford has been a standard in automobiles for over 100 years. Ford has the benefit of a solid brand behind it, which is currently making it one of the most successful car companies in the world.

Ch. 5 - Developing a Global Vision

This is the decade that Ford has decided to make their push into the Chinese market place. While Ford has seen great success in other countries such as Europe and South America, they have yet to really make any dent in one of the largest markets in the world, China.

 

Ford’s introduction to China was in full swing this year at the Shanghai International Auto Show. There Ford laid out plans to introduce fifteen new vehicles to market in the next four years. Alongside this there will be fifty new products and powertrains introduced as well. Among the automobiles that will be offered will be the Kuga, which will be built in China and the Focus. By building the bridge from the U.S. to China and manufacturing some of what they sell, Ford is hoping to build a closer relationship to the people of China, therefore boosting brand recognition. Ford also plans on doubling the amount of dealerships by the end of the decade.

Ford Kuga to be produced in China

By showcasing the above automobiles to the people of China, Ford’s green initiative with electric cars and the creation of jobs for the people of China, Ford is hoping that they will be able to penetrate what could become a huge profit maker.

Ch. 4 - The Marketing Environment

Ford has several different target markets to focus on. They certainly know that offering a variety of well priced, high quality vehicles is important. When looking at Ford as a whole though, you must compartmentalize the company; SUV/Trucks, Sedans/Full Size cars and the Small/Compact line. Ford targets consumers for their product lines based on such things as race, age, education, etc. 

The best example of this is the campaign for 2011 is the Fiesta compact car. The slogan “It’s a pretty big deal” set out to attract the young African American and Hispanic buyers though social media and webinars. By offering these methods to reach the market, Ford was able to also introduce features the Fiesta has that other small cars in the market do not. In a market where fuel efficiency, cost and practicality are an absolute to an automakers survival and to a buyers happiness with the product they are purchasing, Fords target market plan for their compact line seems to be well thought out and moving in the right direction.

Ch. 3 - Ethics & Social Responsibility

Ford has made significant changes in reforming its ethical standards over the past several decades. In fact, just last year Ford was honored as being one of the worlds most ethical companies by the Ethisphere Institute, which is a leading business ethics think tank. Ethisphere Institute "Ford's promotion of a sound ethical environment shines within its industry and shows a clear understanding that operating under the highest standards for business behavior goes beyond goodwill and lip service and is intimately linked to performance and profitability.”

Once frowned upon for internal ethics within the company regarding the Pinto, it has been documented that internal documents showed that Ford was aware that a rear end collision in certain spots could cause a fire due to gas tank separation. Ford Pinto The more recent Firestone Tire roller over accidents with their Explorer line is another example of another ethical inside issue at Ford, again it has been documented that Ford was aware of the rollover issue this line was having. Firestone Controversy   Ford has forged ahead to show transparency as well as commitment to their customers safety.

Today, Ford is the only car company to receive such accolades when it comes to ethical standards. In the US auto market, Ford is viewed as a leader above its competition. Over the past several years, their innovation, dedication and drive to become the best is really starting to pay off. 

* A search conducted on Ford's Corporate site shows the following company Ethics Ford Corporate Ethics