Assignment Mkt

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1 COURSE CODE : MKT420 PREPARED BY : NURUL FATIN ‘IZZATI BT RASIK (2010689528) SITI HAJAR BT ZAMZURI (2010425734) SYARIZAWATY BT AHMAD SHAHRIR (2010486816) NURSYAFIQAH BT YUSUFF (2010848956)

Transcript of Assignment Mkt

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COURSE CODE : MKT420

PREPARED BY : NURUL FATIN ‘IZZATI BT RASIK (2010689528)

SITI HAJAR BT ZAMZURI (2010425734)

SYARIZAWATY BT AHMAD SHAHRIR (2010486816)

NURSYAFIQAH BT YUSUFF (2010848956)

PREPARED FOR : PN NORZEHAN BT ABU BAKAR

DATE : 7 APRIL 2011

GROUP : AC 220/2A

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CONTENTS

Items Pages

Introduction 3

Background of the company 4-5

Product 6-9

Price 10-13

Promotion 14-19

Place 20-25

Marketing Environment – Challenges 26-28

a. Microenvironment

b. Macroenvironment

Future Planning 29-30

Conclusion 31

Awards 31

References 32

Appendixes 32-36

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INTRODUCTION

Marketing can be defined as the process by which companies create value for

customers and build strong customer relationships in order to capture value from customer in

return. A recent survey of top marketers showed that they all share common goal which is

putting the consumer at the heart of marketing. To achieve the goal, each company must have

their own marketing strategies then they must plan the detail of marketing mix. The

marketing mix is the set of controllable tactical marketing tools that consists of product,

price, place and promotion that the firm blends to produce the response it wants in the target

market. First, is product which means the goods and services combination of the company

offers to the target market. Product can be offered to a market for attention, acquisition, use

or consumption that might satisfy a want or need.

Second, is price that can be defined narrowly as the amount of money charged for a

product or services. The pricing challenge is to find the price that will let the company make

a fair profit by getting paid for the customer value it creates. Third, is place that includes

company activities that make the product available to target customer. It is very important

because customers want the product and service to be as conveniently available as possible.

So, companies must taking care about their channels, coverage, locations, inventory,

transportation and logistics.

Fourth, is promotion mean by the activities that communicate the merits of the

product and persuade target customers to buy it. Under the concept of integrated marketing

communications, the company must carefully coordinate these promotion elements to deliver

a clear, consistent and compelling message about the organization and its brands. In this

assignment, every group was given a task to choose any product and to explain clearly about

the marketing strategies and marketing mix for the product that we choose. So, our group has

made a decision to choose one of the products from the famous automobile company which is

Getz from Hyundai Motor Company.

Hyundai Motor Company is growing into a brand appreciated by its customers

because it is continuously striving to achieve the single goal of making good quality products

with an emphasis on the customer first principle across all management levels, including

production, sales and service. Our group will be looking into it deeply based on the product

that we choose which Getz.

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BACKGROUND OF COMPANY

Hyundai Motor Company is a Korean automaker which along with Kia comprises the

Hyundai Kia Automotive Group, the world’s fifth largest automaker as of 2009. As of 2009,

it is the world's fastest growing automaker. In 2008, Hyundai (without Kia) ranked as the

eighth largest automaker. Headquartered in Seoul, South Korea, Hyundai operates the

world’s largest integrated automobile manufacturing facility in Ulsan, which is capable of

producing 1.6 million units annually. The company employs about 75,000 persons around the

world. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and

showrooms worldwide.

The Hyundai logo, a slanted, stylized H, symbolizes the company shaking hands with its

customer. The company of Hyundai is very much popular in the North America. The entire

vehicles manufactured by the company are very much related to his country. When it comes

to the history of the company, then the Hyundai was first introduced in 1986 in the market.

The company was known to be excelled and since that time the company had shown the

drastic change in the globe.

Another interesting fact is that the company is known much more than the production of

the cars. In fact, it has been estimated that the company is going to be the largest companies

of the world of the end of the last century. Since the company had launched in the market,

there are many changes that had been made in the engines and the models of the car. The

engine is manufactured at the power of Hyundai which is of 1.6 liter and is believed to

provide the scintillating performance. Besides this, the performance of the car gets more

responsive when its on the road. The main reason is that the car is having the 4-speed

automatic transmission which is proving to be the master of all trade.

The 1980s were to prove equally eventful for Hyundai Motor Company. After the oil

shock of 1979, the government took steps to protect the industry, which had by then made

large investments in plants and equipment. It kept a tight grip on the development of this

sector and in 1981 divided the market, restricting Hyundai to car and large commercial

vehicle manufacture. These regulations were revised in 1986 following the recovery of the

market, and Hyundai was able to resume manufacture of light commercial vehicles.

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By the middle of the decade, Hyundai had taken Canada by storm. Its Pony

subcompact vehicles became Canada’s top-selling car less than two years after entering the

market. In the company announced plans to build a car assembly plant and at the same time

decided to enter the U.S market. Hyundai decided to move up with the introduction of

Sonata, a four-door sedan, in late 1988; initial sales, though, proved disappointing. A year

later, this car was being manufactured at the Bromont plant, following the opening of the

factory in 1989.

The group became intent on reducing its dependence on the U.S markets. By 1990, the

domestic market was proving increasingly important to the essentially export-oriented group.

Both the car and construction were enjoying strong demand at the end of the decade. This

situation helped Hyundai Engineering & Construction, like the vehicle operations, to take up

the slack created by declining markets abroad, particularly in the Middle East.

Hyundai Motor & Co., on the other hand, was prospering as Korea’s largest car

maker. The auto concern officially separated from the Hyundai Group in September 2000,

signaling the start of sweeping changes that led to the eventual dismantling of what was once

South Korea’s largest conglomerate. In August 2001, nine core Hyundai companies,

including Hyundai Engineering& Construction and hynix Semiconductor Inc. (formerly

known as Hyundai Electronics Industries). The separation cut Hyundai Group’s assets to just

$20.8 billion and left it in control of 18 member companies. Hyundai continue to be pared

down the following year.

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PRODUCT: HYUNDAI GETZWhat is a product?

Product is anything that can be offered to a market for attention, acquisition, use or

consumption that might satisfy a want or need. Our groups choose a Hyundai Getz as our

product. Getz is a car produced by Hyundai and the structure has to be as light as possible for

good fuel economy, but as strong as possible for durability and safety. It is no surprise that

GETZ qualifies for four-star rating in independent crash test carried out by the Euro-NCAP

organization. It shows that Getz has a good quality of production.

Level of product and services

The most basic level is the core customer value. The consumer will found out what is

the buyer really buying? When designing a product, marketers must first define the core,

problem-solving benefits of the product or services that consumers seek. For example, when

customer buying Hyundai Getz, they are not only buying the car, but they also buying an

affordability and comfortable of using this car.

At the second level, product planners must turn the customer value into an actual

product. The producers need to develop product and services features, design, a quality level,

a brand name and packaging. For example, Hyundai will develop more their product based on

customer needs. Its name, brands, design, features and packaging have been combined

carefully to deliver the core benefit of staying connected.

Finally, product planners must build an augmented product by giving additional

services and benefits to the customers provided by the manufacturer which come along with

the product. The additional services that can attract customers to purchase the product such as

finance schemes, after-sales services, warranties and delivery. For example, when customer

buys the Hyundai Getz, they will get quick repair services when needed.

Product and Service Classifications

Product and services categorized into two broad classes based on the types of consumer

who use them, consumer products and industrial product. Consumer products are product

and services bought by final consumers that can satisfy their needs. There are several types of

consumer products such as shopping products, specialty products, convenience products and

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unsought products. Hyundai Getz is under the specialty products because it is for the

consumers who willing to make a special purchase effort. Buyers usually do not compare

specialty products. They invest only the time needed to reach dealers carrying the wanted

products.

Besides is industrial product. It is product purchased by the individuals and

organizations for further processing or for the use in conducting a business. There are three

groups of industrial products and services include materials and parts, capital items and

supplies and services. The material and parts is basic product that will be transformed entirely

into something else. For example, Hyundai buy steel, cotton, iron and etc to produce car.

Another group is capital items which are industrial products that lead in the buyer’s

production or operations including installations and accessory equipment. Installation

consists of major purchases such as buildings and fixed equipment. While, accessory

equipment includes portable factory equipment and tool (hand tools, lift trucks) and office

equipment (computer, fax machines, desks). Hyundai needs all these equipment for their

production process.

Lastly, the final group of industrial products is supplies and services. It is intangible

product used by firms. It is also does not enter the finished product at all which they are items

that help the operation. Business services include maintenance and repairs services, and

business advisory services.

Product and Service Decision

a)Individual Product and Service Decision

i) Product and Service AttributesProduct quality. Product quality is one of the marketer’s major positioning tools. It is about the characteristics of a product or service that bear on its ability stated or implied customer need. Similarly, Hyundai defines quality this way” we will ceaselessly introduce world-class products of the best quality to overcome the difficult market environment and turn it into an opportunity, while modestly listening to the voice of customer. “

Product features. A product can be varying in features. Features are a competitive tool for differentiating the company’s product from competitors’ products. Hyundai Company produces a car which is environment friendly.

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Product style and design. This is another way to attract customer for purchase our product. Design is the larger concept than style. Style simply describes the appearance of a product. Unlike style, design goes to the very heart of the product. After made research, Hyundai make design based on what customer respond on their want and needs. Thus, product designer should think less about product attributes and technical specifications and more about how customer will use and benefit from the product.

ii) Branding Brand is a name, term, sign, symbol, design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. Consumers view a brand as an important part of a product and branding can add value to a product. With branding also, it can attract customer to buy the product. Just like Hyundai Getz, the car has designed as per the contemporary requirement of the consumers. Not only the interiors are so roomy and luxury but also the exteriors are too impressive and elegant.

iii) Product support servicesThis is the services given after the customer has purchased the product. A company’s usually includes some support services, which can be minor or a major part of the total offering. For example, warranty, after-sale services, product delivery and etc. Hyundai provide 4 services; first services where customers can get free services on the first 1000 km. Second service is free services on the 5000 km. The third service, customer can get 5 years warranty or get free services on 30,000km but this service is for the first customers. And lastly, the customer services call the customers every 2 month to know about the customer’s satisfaction about the Hyundai Getz.

b) Product Line Decisions

Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. For example, Hyundai produce several types of car such as Getz, Sonata, Tucson, Santa Fe, Starex and etc.

c) Product Mix Decision

Product mix is the set of all product lines and items that a particular seller offers for sale. Some companies manage very complex product portfolios. Hyundai Getz cars come in four exclusive model variants. These model variants are GLE, GVS, GLS and GLX.

Product Life Cycle Strategies

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Product life cycle (PLC) is the course of a product’s sales and profits over its lifetime. It involves five distinct stages that is product development, introduction, growth, maturity and decline.

a) Product development begins when the Hyundai Company wants to finds and develops a new-product idea. During this product development, sales are zero because the Hyundai Getz is still in process and the company’s investment costs mount.

b) Introduction is a period of slow sales growth as Hyundai Getz introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.

c) Growth is a period of rapid market acceptances and increasing profits. During this stage, Hyundai Getz is accepted by the market and customers buy it because it is suitable for family-friendly compact car.

d) Maturity is a period of slowdown in sales growth because the Hyundai Getz has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product from other competitors.

e) Decline is the period when sales drop down and profits drop. This happen because there is another product which is more attractive than before and consumer tend to buy a new product.

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PRICEPrice is the amount of money charged for a product or service. In other words, price is the sum of all values that customers give up in order to gain the benefits of having or using a product. Price is the only elements in the marketing mix that produce revenue while all other elements represent costs. Price is also one of the most flexible marketing mix elements.

Factors To Consider When Setting Prices

i) Customer Perceptions of Value

Pricing decisions, like other marketing mix decisions must start with the customer

value. When customer buy a product, they exchange something of the value in other to get

something of value. Effective, customer-oriented pricing involves understanding how much

value consumers place on the benefits they receive from the product and setting a price that

captures this value. In this case, Hyundai Motor company use the value-based pricing which

means they setting price based on the buyers’ perceptions of value rather than on the seller

cost. The company first assesses customer needs and value perceptions. The targeted value

and price from customer will drive decisions about what costs can be incurred and resulting

the product design. For example, some car buyers consider the Hyundai Getz SE Limited

Edition 2009 a real value, even at an eye-popping price of RM63,888.First type of value-

based pricing is the good-value pricing. In this type of pricing strategies the Hyundai Motor

company offering just the right combination of quality and good service at the fair price. In

other cases, good-value pricing has involved redesigning existing brands to offer more

quality for a given price or the same quality for less. To meet the tougher economics times

and more frugal consumer spending habits the Getz car was recently updated in the Indian

market as the company launched the new Hyundai Getz Prime. The new car has been priced

at around Rs. 3.89 lakh. The second type of value-based pricing is the value-added pricing.

To increase the pricing power the Hyundai Motor company attach value-added features to

differentiate their offers and thus support higher price than cutting prices to match the

competitors. For example, In late-2008, a fully electric version of the car was introduced in

New Zealand and Australia. The price of this new version of car is higher than the old one.

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ii) Other Internal and External Considerations Affecting Price Decisions

Other internal factors that influence pricing decisions include the Hyundai Company

overall strategy, objectives, mix, and organization for pricing. Price is only one element of

the company’s broader marketing strategy. If the company is selected its target market and

positioning carefully, then its marketing mix strategy, including price, will be fairly

straightforward. Some companies position their product on prices and then tailor other

marketing mix decisions to the prices they want to charge. Other companies deemphasize

price and use other marketing mix tools to create non-price positions. For example, when

Hyundai develop its Getz brand to compete with Perodua Myvi, this required charging a high

price.

Next factor is organizational considerations. Management must decide who within

the company should set the prices. Each companies handle pricing in a variety of ways. For

example, Hyundai company is a large companies, the pricing is typically handled by

divisional or product line managers. While top management sets the pricing objectives and

policies, and it often approves the prices proposed by lower-level management or

salespeople. Others who have an influence on pricing include sales managers, production

managers, finance managers and accounts.

Another factor is market and demand which include pricing in different types of

markets. The seller’s pricing freedom varies with different types of markets. Hyundai

company fall under oligopolistic competition, which the market consists of a few sellers who

are highly sensitive to the other’s pricing and marketing strategies. Hyundai company is

compete with other car company such as Proton, Perodua, Honda and etc. If a Perodua

company slashes its prices by 15percent, buyers will quickly change to this company and

Hyundai must respond by lowering their prices or increasing their services.

Lastly, the external factors include economic conditions, the government and social concerns. Economic can have a strong impact on the firm’s pricing strategies. Economic factors such as boom or recession, inflation, and interest rates affect pricing decisions because they affect both consumer perceptions of the product’s price and value and the cost of producing a product. It means that, if the economic is unstable, it will affect Hyundai Company sale.

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Product Mix Pricing Strategies

The strategy for setting a product’s price often has to be changed when the product is part of

product mix. In this case, the company will looks for a set of prices that maximizes the profits

on the total product mix. In the mix pricing strategies, the Hyundai Motor Company using the

product line pricing. This type of pricing always has been use in all automobile company

because they usually develop product line rather than single product. In the product line

pricing, management must decide on the price steps to set between the various products in a

line. The price steps should take into account cost differences between the products in the

line..For example, the Getz car has four different type which are Manual-solid, Auto-solid,

Manual-metallic and Auto-metallic. Each of this car have a different price because the

company should account for differences in customer perceptions of the value of different

features. Second, the Hyundai Motor Company also uses the optional-product pricing for the

Getz car. It is the pricing of optional or accessory products along with their main product. In

this type of pricing the Hyundai Motor Company must decide which items to include in the

base price and which offer as options. For example, the Getz car price is increase when the

car is included with the accessories packages such as first aid kit, number plate base, single

air bag, burglar alarm and rear spoiler. Thus, the most advertised prices represent well-

equipped cars.

Price-Adjustment Strategies

Companies usually adjust their basic prices to account for various customer

differences and changing situations. Our group had examined a several price adjustment

strategies that use by the Hyundai Motor Company for Getz car. First is segmented pricing

which the company will sell their product at two or more prices, where the difference in

prices is not based on the differences in costs. In this type of pricing, Hyundai Motor

company use product-form pricing which the different versions of the Getz car are priced

differently but not according to differences in their costs. For example, Hyundai Getz SE

Limited Edition 2009, Hyundai Getz 1.4 DOHC SE NEW 09 , Hyundai Getz 1.3 Auto and

Hyundai Getz 1.4 manual have a different prices according to their version. Second is the

promotional pricing which can be an effective means of generating sales for most companies.

Same as other company Hyundai Motor Company also adjusted their product price below the

list price to create buying excitement and urgency. In this type of pricing, this company uses

the special-event pricing in certain seasons to draw more customers. For example, Hyundai

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Motor Company reduced the price of Hyundai Getz SE (A) LIMITED EDITION 2009 for the

World Cup FIFA Promo in May 2010.Third is the international pricing where the company

will setting prices for customers located in different parts of the country or world. For the

Hyundai Motor Company that market their product internationally, the company must decide

what price to charge in the different countries in which they operate. The price that the

company should charge in a specific country depends on many factors including economic

conditions, competitive situations, laws and regulations and development of the wholesaling

and retailing system. For example, the price of Hyundai Getz Prime 1.3 GVS are different in

Malaysia, India, Japan and South Korea.

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PROMOTIONThe Promotion Mix

Advertising-is any paid form of non-personal presentation and promotion of ideas, goods, or

services by an identified sponsor. Advertising includes broadcast, print, internet, outdoor, and

other form. Hyundai Motor Company makes the advertising by internet, newspapers,

display at suitable place, for example, international airport.

Sales promotion-is short term incentive to encourage the purchase or sale of a product or

services .For the sales promotion of GETZ from HYUNDAI, it includes HYUNDAI GETZ

REMOTE CONTROL. It has high quality and attractive price.

Public relation-is building good relation with the company’s various public by obtaining

favorable publicity, building up a good corporate image and handling or heading off

unfavorable rumors, stories, and events . For HYUNDAI company , they do the public

relation likes, ROAD SIDE ASSISTANCE PROGRAM with the aim of providing emergency

assistance services round the clock to ensure a pleasurable and uninterrupted journey virtually

anywhere. The program is designed to enhance the customer ownership experience and

ensure that customer get immediate and hassle free service in the event of any car breakdown.

A View Of The Communication Process

To communicate effectively, marketers need to understand how communication works.

Communication involves nine elements:

1. Sender: the party sending the message to another party. The sender here is

HYUNDAI COMPANY.

2. Encoding: the process of putting thought into symbolic form. HYUNDAI

COMPANY advertising agency assembles words and illustration into an

advertisement that will convey the intended message.

3. Message: the set of symbols that the HYUNDAI COMPANY transmits.

4. Media: the communication channel through which the message moves from sender to

receiver. In this case HYUNDAI COMPANY selected the newspaper.

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5. Decoding: the process by which the receiver assigns meaning to the symbol encoded

by the sender. That is a consumer read the HYUNDAI COMPANY copier ad and

interprets the words and illustration it contains.

6. Receiver: The party receiving the message sent by another party. That is the business

customer who read the HYUNDAI COMPANY copier ads.

7. Response: the reaction of the receiver after being exposed to the messages . Any

hundreds of possible responses, such as the consumer is more aware of the attributes

of HYUNDAI COMPANY copiers, visits the HYUNDAI COMPANY WEB SITE

for more information, actually buys an HYUNDAI COMPANY copier or does

nothing.

8. Feedback: the part of receiver response communicated back to the sender. The

HYUNDAI COMPANY shows that consumer are struck by and remember the ad, or

consumers write or call HYUNDAI COMPANY praising or critizing the HYUNDAI

company product.

9. Noise: the unplanned static or distortion during the communication process, which

result in the receiver’s getting a different message than the sender one. That is the

consumer is distracted while reading the magazine and misses the HYUNDAI

COMPANY product.

For the message to be effective, the HYUNDAI COMPANY ‘s encoding process must mesh

with the receiver’s decoding process. The messages consist of words and other symbol that

are familiar to the receiver. The more the HYUNDAI COMPANY’s field of experiences

overlaps with that of the receiver, the message is likely to be. Marketing communicator may

not always share their consumer’s field experiences .

Steps In Developing Effective Communication

1. Identify the target audiences

The target audiences of HYUNDAI COMPANY will heavily affect communicator’s

decisions on what will be said , how it will be said, where it will be said, and who will

said it.

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2. Determining the communication objective

Awareness- When HYUNDAI COMPANY first introduce its 500 cars model,

it used GETZ to create initial awareness and curiosity. The company shows

the car, but not its name.

Knowledge –later, the HYUNDAI COMPANY create knowledge by

informing potential buyers of the GETZ’s high quality and its many innovative

features.

Liking-assuming the consumer know about this product, how do you feel

about it? Once potential buyers knew about GETZ, HYUNDAI COMPANY

wanted to move them through successively stronger stages of feeling toward

the car.

Conviction- HYUNDAI COMPANY use a combination of the promotion mix

tools to create positive feelings and conviction for example, advertising,

dealer tells buyers about option, value for the price, and after sale service.

Purchase- HYUNDAI COMPANY must lead the customer to take the final

step. Actions might include offering special promotional price, rebate or

premium. Sales people might call or write to selected customer , inviting them

tom visit the dealership for a special showing.

3. Designing a message

Message content-consist of three types of appeal. First, rational appeal that is

relate to the audience‘s self-interest. HYUNDAI COMPANY informs

customer about the quality of GETZ and why GETZ is the best choice. Second

emotional appeal, that is try to stir up either negative or positive emotion that

can motivate purchase. HYUNDAI COMPANY advocates for humorous

message claim that they attract more attention and create more liking and

belief in the sponsor. Third is moral appeal, that is directed to the customer’s

sense of what is ‘right’ and ‘proper’. For example HYUNDAI COMPANY do

the headline.

Message structure-HYUNDAI COMPANY must also decide how to handle

three z or leave it to the audience. It is better if NYUNDAI COMPANY asking

questions and letting buyers come to their own conclusion. The second is

whether to present the strongest arguments first or last. Presenting them first

get strong attention but may lead to an anticlimactic ending. The third is

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whether to present one sided argument or two sided argument. That is

HYUNDAI COMPANY only mention about the GETZ strength or touting the

GETZ strength while also admitting its shortcomings.

Message format-The communicator has to decide on the headline, copy,

illustration and color. If the message is carried out over the radio, the

communicator has to choose words, sounds, and voice. HYUNDAI

COMPANY carried the message through newspapers, and it has to watch

color, size, and expressions.

4. Choosing media

HYUNDAI COMPANY selects both of the channels of communication.

Personal communication channel : HYUNDAI COMPANY communicates

face to face, on the phone, through mail or e-mail. This channel is effective

because it allow for personal addressing and feedback. This personal

communication is directly controlled by the HYUNDAI COMPANY. For

example customer service contacts the buyers.

Non-personal communication : They include major media, atmospheres, and

events. Non-personal communication affects buyer directly. Communication

first flow from television, magazine, and other mass media to opinion leaders

and then these from opinion leader to others. Thus, opinion leader steps

between the mass media and their audience and carry message to people who

are less exposed to media. This suggests that mass communicators should aim

their message directly at opinion leader, letting them carry the message to

other.

5. Selecting the message sources

The message’s impact on the target audience is also affected by how the audience

views the communicator. Message delivered by highly credible sources are more

persuasive. Thus, but, the company must be careful when selecting celebrities to

represent their brands. Picking the wrong spokesperson can result embarrassment and

a tarnished image.

6. Collecting feedback

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After sending the message, the communicator must research its effect on the target

audience. This involve asking the target audience members whether they remember

the message, how many times they saw it, what point they recall, how they feel about

the message, and their past and present attitudes toward the product and the company.

The communicator would also like to measure behavior resulting from the message.

Feedback on marketing communication may suggest changes in the promotion

program or in the product offer itself. HYUNDAI COMPANY uses Newspaper and

television advertising to inform area consumer about the products. The feedback from

customer is very important to company suggest although promotion is creating

awareness. If not, the company needs to improve its promotion programs to take of its

power to create customer satisfaction.

Setting The Total Promotion Budget

How does HYUNDAI COMPANY decide on its promotion budget? . This company uses the

objective-and-task method:

Objective- task- method

HYUNDAI COMPANY sets its promotion budget based on what it wants to accomplish with

promotion. This budgeting method entails (1) defining specific promotion objective, (2)

determining the task needed to achieve these objective, and (3) estimating the cost is the

proposed promotion budget. The advantage of the objective-and-task method is that it forces

management to spell out its assumptions about the relationship between dollars spent and the

promotion result. But it is also the most difficult method to use. Often, it is hard to figure out

which specific task will achieve stated objective. For example, HYUNDAI COMPANY

wants 98 percent awareness for its car model during this six-month introductory period. What

specific advertising message and media schedule cost? HYUNDAI COMPANY management

must consider such question, even though they are hard to answer.

Shaping The Overall Promotion Mix

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The Nature of Each Promotion Tool

Advertising-can reach masses of geographically dispersed buyers at a low cost per exposure,

and it enable the HYUNDAI COMPANY to repeat a message many times. For this company,

TV is the place to reach a mass audience. It is because consumers tend to view advertised

through the artful use of visual, print, sound, and color. Advertising can trigger quick sales to

company. But, advertising also has some shortcomings; it cannot be as directly persuasive as

can company salespeople. It also can carry on only a one-way-communication with the

audience, and the audience does not feel that it has to pay attention or respond. It can be very

costly.

Sales promotion-includes a wide assortment of tools like coupons, and premiums. They

attract consumer attention, offer strong incentive to purchase. It also invited and reward quick

response to HYUNDAI COMPANY.

Public relation-It is very believable. It can reach many prospects who avoid salespeople and

advertisement. Yet a wee-though-out public relation campaign used with other promotion

mix elements can be very effective and economical.

Promotion Mix Strategies.

HYUNDAI COMPANY has choose pull promotion. Using a pull strategy, HYUNDAI

COMPANY directs its marketing activities toward final consumers to induce them to buy the

product. The pull strategy is effective, consumers will then demand the product from channel

members, who will in turn demand it from company.

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We now arrive at the third marketing mix tool – place. Firms rarely work alone in creating

value for customers and building profitable customer relationships. Instead, most are only a

single link in a larger supply chain and marketing channel. As such, an individual firm’s

success depends not only how well it performs but also on how well its entire marketing

channel competes with competitors’ channels. Hyundai-Sime Darby Motors Sdn Bhd

(formerly known as Hyundai-Berjaya Sdn Bhd) is the franchise holder of Hyundai vehicles

and the sole distributor of Hyundai completely-built-up (CBU) vehicles, as well as the three

models manufactured in collaboration with Hyundai Motor Company by INOKOM

Corporation Sdn Bhd which is based in Kulim, Kedah. Currently, the impressive network of

sales, parts and service dealers has contributed to the increasing confidence by Malaysian

motorists on INOKOM and imported Hyundai vehicles. There are 16 3S (sales, service and

spare parts) dealers, 82 authorised service dealers and 18 parts stockists in addition to the

three own 3S centres located throughout the country.

Supply Chains and the Value Delivery Network

Producing a product or service and making it available to buyers requires building

relationships not just with customers, but also with key suppliers and resellers in the

company’s supply chain. This supply chain consists of upstream and downstream partners.

Upstream from the company is the set of firms that supply the raw materials, components,

parts, information, finances and expertise needed to create a product or service. Meanwhile

downstream refer to marketing channel partners, such as wholesalers and retailers, form a

vital connection between the firm and its customers.

A value delivery network is made up of the company, suppliers, distributors and ultimately

customers who partner with each other to improve the performance of the entire system. Like

Hyundai, in making and marketing its Getz to make it known all around the world.

Channel Behaviour and Organization

Distribution channels are complex behavioural systems in which people and companies

interact to accomplish individual, company and channel goals. A marketing channel consists

of firms that have partnered for their common good. Each channel member depends on the

others. A Hyundai dealer depends on Hyundai to design cars that meet consumer needs. In

turn Hyundai depends on the dealer to attract consumers, persuade them to buy Hyundai cars,

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and the services after the sale. Each Hyundai dealer also depends on other dealer to provide

good sales and service that will uphold the brand’s reputation. In fact, the success of

individual Hyundai dealers depends on how well the entire Hyundai marketing channel

competes with the channels of other auto manufacturers.

To meet the consumer need and want, Hyundai has adopted multichannel distribution

systems, in which a single sets up two or more marketing channels to reach one or more

customer segments. Hyundai sells directly to consumer using direct-mail catalogs,

telemarketing and the internet and reaches consumer through retailers.

Channel Design Decisions

In designing marketing channels, producers struggle between what is ideal and what is

practical. For maximum effectiveness, channel analysis and decision making should be more

purposeful.

1. Analyzing Consumer Needs

Designing the marketing channel starts with finding out what target consumers want

from the channel. Hyundai provided the nearby locations that easy for consumers to

look their cars. Besides they provided all type of communication to consumer know

about the latest promotions, like mail, internet, catalogs and others. The company

must balance consumer needs not only against the feasibility and costs of meeting

these needs but also against customer price preferences. The success of discount

retailing shows that consumers will often accept lower services levels in exchange for

lower prices.

2. Setting Channel Objectives

Hyundai stated their marketing channel objectives in terms of targeted levels of

customer service. Usually, a company can identify several segments wanting different

levels of service. The company should decide which segments to serve and the best

channels to use each case. In each segment, the company wants to minimize the total

channel cost of meeting customer service requirements.

The company’s channel objectives are also influenced by the nature of the company,

its product, its marketing intermediaries, its competitors and the environment. For

example Hyundai’s size and financial situation determine marketing functions it can

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handle itself and which it must give to intermediaries. Finally, environmental factors

such as economic conditions and legal constrains may affect channel objective and

design. Hyundai make some promotion in a depressed economy to distribute their

goods in the most economical way.

3. Identifying Major Alternatives

Types of Intermediaries

Hyundai has identified the type of channel members available to carry out its

channel work. They use the industrial distributors, which find the distributors

in the different region who will buy and carry the new line. Hyundai give them

exclusive distribution, good margins, product training and promotional

support.

Number of Marketing Intermediaries

Hyundai use selective distribution strategies, which occurs when producers

use more than one, but fewer than all, of the intermediaries who are willing to

carry their products. By using selective distribution, they can develop good

working relationships with selected channel members and expect a better than

average selling effort.

Responsibilities of Channel Members

Hyundai and its intermediaries have some agree on the terms and the

responsibilities of each channel member. They should agree on price policies,

condition of sale, territorial rights and specific service to be performed by each

party. Hyundai should establish a list price and a fair set of discounts for

intermediaries. Mutual services and duties need to be spelled out carefully.

4. Evaluating the Major Alternatives

Each alternative should be evaluated against economic, control and adaptive criteria.

Using economic criteria, Hyundai compares the likely sales, costs and profitability of

different channel alternatives. Hyundai must also consider control issues. Using

intermediaries usually means giving them some control over the marketing of the

product and some intermediaries take more control than others. Finally, Hyundai must

apply adaptive criteria. Channels often involve long-term commitments, yet Hyundai

wants to keep the channel flexible so that it can adapt to environmental changes.

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Thus, a channel involving long-term commitments should be greatly superior on

economic and control grounds.

5. Designing International Distribution Channels

Hyundai face many additional complexities in designing their channels. Each country

has its own unique distribution system that has evolved over time and changes very

slowly. In some markets, the distribution system is complex and hard to penetrate,

consisting of many layers and large numbers of intermediaries. In other market,

distribution systems in developing country may be scattered and inefficient.

Sometimes customs or government regulation can greatly restrict how Hyundai can

distribute products in global markets.

Channel Management Decisions

1. Select Channel Members

When selecting intermediaries, Hyundai determine what characteristics distinguish

the better one. It will want to evaluate each channel member’s years in business, other

lines carried, growth and profit record, cooperativeness and reputation. If the

intermediaries are sales agents, Hyundai will want to evaluate the number of cars that

they can sell.

2. Managing and Motivating Channel Members

Once selected, channel members must be continuously managed and motivated to do

their best. In managing its channels, Hyundai convince distributors that they can

succeed better by working together as a part of cohesive value delivery system.

Hyundai will give free promotion to help the distributors like roadshow,

advertisement and etc.

3. Evaluating Channel Members

Hyundai do regularly check channel member performance against standards such as

sales quotas, average inventory levels, customer delivery time, and services to the

customer. Hyundai has recognized and reward intermediaries who are performing

well and adding good value for consumers. Those who perform poorly will be assisted

or as a last resort, replaced.

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Marketing Logistics and Supply Chain Management

In the global marketplace, selling a product is sometimes easier than getting it to customers.

Hyundai decide on the best way to store, handle and move their products so that they are

available to customers in the right assortments, at the right time and in the right time.

Physical distribution and logistics effectiveness has a major impact on both customer

satisfaction and company costs.

1. Nature and Importance of Marketing Logistics

Marketing logistics involves planning, implementing and controlling the physical

flow of goods, services and related information from points of origin to points of

consumption to meet customer requirements at a profit. Hyundai put greater emphasis

on logistics because want gain a powerful advantage by using improved logistics to

give customers better service or lower prices and can yield tremendous cost savings to

both company and its customers. The explosion in product variety has created a need

for improved logistic management and improvements in information technology have

created opportunities for major gains in the distribution efficiency.

2. Goals of the Logistics System

The goal of marketing logistics is to provide a targeted level of customer service at

the least cost. Hyundai first research the importance of various distribution services to

customers and then set desired service levels for each segment.

3. Major Logistics Functions

Given a set of logistics objectives, Hyundai is ready to design a logistics system that

will minimize the cost of attaining these objectives. Hyundai store their car in the

warehousing while they wait to be sold. The warehouses are large and multi-storeyed

warehouses with dramatic changes in technology recent years. The storage function

overcomes differences in needed quantities and timing, ensuring that products are

available when customers are ready to buy them. Their stockyark located at Bukit

Jelutong, Shah Alam, Pelentong,Johor Bharu and Kulim,Kedah.

4. Integrated Logistics Management

Hyundai is adopted the concept of integrated logistics management. This concept

recognizes that providing better customer services and trimming distribution costs

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require teamwork, both inside the company and among all the marketing channel

organizations. Responsibility for various logistics activities is assigned to many

different departments. Each function tries to optimize its own logistics performance

without regard for the activities of other functions. The goal of integrated supply

chain management is to harmonize all of the company’s logistics decisions. Hyundai

also work with other channel partners to improve whole channel distribution. The

members of a marketing channel are linked closely in creating customer value and

building customer relationship. The third party logistics is an independent logistics

provider that performs any or all of the functions required to get their client’s product

to market. Hyundai’s car is a company under Sime Darby Motor in Malaysia. Sime

Darby Motor is the third party that does the marketing promotion for Hyundai’s car in

the Malaysia.

MARKETING ENVIRONMENT

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CHALLENGES FACED BY HYUNDAI GETZ

Marketing environment consists of the actors and forces outside marketing that affect

marketing management’s ability to build and maintain successful relationships with target

customers. The marketing environment offers both opportunities and threats. The

environment continues to change rapidly. The marketing environment is made up of Micro-

environment and Macro-environment.

Microenvironment

Microenvironment consists of the forces closest to the company that plays an important

role on the company’s ability to fulfill the customers’ needs. Microenvironment sees business

opportunities through the group of goods or products needed by customers. The elements are:

company, suppliers, competitors, marketing intermediaries, customer markets and public.

i. Company

Company is the internal environment of the company that is marketing the product. It

includes the different departments like finance, accounting, research and development

and purchasing. These interrelated groups form the internal environment. For

instance, the top management sets the company’s mission, objectives, goals and broad

strategies. For example, Hyundai has set the goals includes making employees

responsible for their decisions: this empowers them and fosters teamwork. Secondly,

hiring and promoting the most specialized and most technologically advanced labor

force they can afford and continually striving to produce the best products and

services they can at the lowest possible cost.

ii. Suppliers

Suppliers are the providers of the resources needed by the company to produce its

goods and services. A supplier will make sure that process used in the production,

supply of raw materials, equipment and final goods are satisfactory. Any development

related with suppliers will affect marketing. For example, Global Suppliers is committed

to providing the best quality collision parts at the lowest possible prices for all Hyundai car

models. When a problem occurs in the business, the seller will consult the suppliers. It

also relates with the increase and decrease in prices of an input used or quality of the

goods itself.

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iii. Competitors

Competitors are other organizations that are competing with the company for the

same consumers with the intention of fulfilling the same needs and wants. The

competitive environment includes all organizations that could possibly satisfy the

needs and desires of the organization’s target market. Marketers need to be aware of

the type of competitive environment in which they are operating. This will greatly

influences the number and types of competitors they must be concerned with. For

example, the residual value topped popular competitive models from Toyota, Nissan,

Ford, and Chevrolet, in addition to premium brands such as Lexus, BMW and

Mercedes.  

Macroenvironment

Macroenvironment factors are bigger societal forces that affect the microenvironment

of a company. Macroenvironment is an uncontrollable environment where marketers have no

or little influence. Macroenvironment covers overall business opportunities. It explores

surrounding environment which includes marketing for domestic and international

economies. The elements are natural resources, economy, demography, technology, political

and culture.

i. Demography

Demography is the study of human population in terms of size, density,

location, age, race, origin, occupation and other statistics. The demography

environment is of major interest to marketers because it involves people, and

people make up markets. Marketers will depend on the demographic factors to

improve the products market whereby these factors will influences buying

behavior. Marketers must keep track of the market population profile, which

includes family size, age group and education level. For example, for passenger

Hyundai have Equus, Genesis, Azera, Sonata and Getz. While for recreational

Hyundai provide Veracruz/ix55, Santa Fe and Tucson/ix35.

ii. Technology

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Marketers use technology to improve the quality of products and services

provided by their organizations nowadays. Technological developments

provide important information and opportunities to meet their customers’

needs. Scientific knowledge, research, and innovations all result in new or

improved goods and services. Advances in manufacturing technology,

distribution, pricing techniques and marketing research will help organizations

better serve to their customers. For example, with modern technology Hyundai

produce Environmentally-friendly exhaust systems. In response to increasingly

stringent regulations on exhaust emissions, the Powertrain Centre is stepping

up its efforts to develop technologies that raise fuel efficiency, lighten vehicle

weight, lower friction and improve driving power. Additionally, the Center is

working on development of powertrains for hybrid electric vehicles.

iii. Natural Resources

Natural resources that are needed as inputs by marketers or that are affected by

marketing activities include raw materials used as inputs. These materials

consist of mineral extracts and infrastructure, which are essential elements in

the production process. Depletion of natural resources will distort the firms’

production and marketing process. For example, Hyundai needs oil and gas,

coal and mineral resources, fuel, polysilicon and other resources in their

production.

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FUTURE PLANNINGYEAR 2009

Hyundai in Malaysia has launched a new version of Hyundai Getz 1.4 litres for the festive

season promotion which is the new Hyundai Getz SE Special Limited  Edition. This new

stylish and beautiful Getz SE is only limited to 300 units only.

Accessories: CD Player,Leather seats,Airbag driver,Airbag passenger,Sport

rims,Alarm,Central lock,Adjustable steering

The rear part, with black sporty bumper with reflectors and the Limited Edition SE

badge and the new spoiler design.

-1.4cc DOHC Engine 4 Cylinder 16V

-Special Edition

-Full Leather seat

-Leather Steering

-Side mirror LED light

-Full Body Kit

-CD Player with MP3

-4 Power Windows

The interior with leather seat trim includes yellow colour makes this Gets SE very

special.

-Electronic Power Steering

-Brake Lock

-RS Airbag ABS + EBD

-4 STAR ~ NCAP

-15′Alloy Wheels

-5 Years Warranty or 300,000km

-Fuel tank capacity 45(litre)

-Low fuel consumption km/l

-White Colour Only

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New sport rims 15″ chrome design is simply beautiful. The new wing LED Mirror

fitted makes this Hyundai Getz SE a perfect compact city car.

The price of the new Hyundai Getz SE is around RM51,000 with low interest rate

from 1.99% per year.

YEAR 2011

For this year Hyundai has changed its motto from ‘Drive Your Way’ to ‘New

Thinking New Possibility’ for increase convince towards Hyundai’s products.

For Hyundai Getz, they will replace it with i25 and i20.

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CONCLUSION In conclusion,Hyundai Motor company is the successful international company that

strongly customer focused and heavily commited to marketing.This company share a passion

for understanding and satisfying the needs of their customers in well-defined target

markets.For that reason their brand is famously known by the car buyers all over the

world.Competition among automobile companies throughout the world has been fierce.

Hyundai Getz competition includes the Maruti Suzuki Swift, Chevrolet UV-A and the

recently launched Renault Logan.Hyundai Getz is growing into a brand appreciated by its

customers because it is such a good quality product.Numerous sections of the world media

have praised the Getz car high quality.Because of this reason,Getz car are sold in most of the

world except the U.S. or Canada.This supermini car also has won the following global

awards since its launch:Winner of Australia’s Best Small Car in 2003 and 2005,Winner of the

Scottish Small Car of the Year award in 2003,Winner of the UK What Car? for Magazine

Budget Car of the Year in 2003,Budget car champion on the UK motoring programme in

2003,Denmark’s Best Seller Of 2003 award,

The Getz 1.5 CRDi was Portuguese ‘Car of the Year’ for 2004.Improvements in customer

satisfaction and a continuous sales growth demonstrates Getz ability to increase it market

share.This brand success is a result of continuous and aggressive innovations that have been

implemented on behalf of their customers.Customer satisfaction is their number one value.

AWARDS

Winner of Australia’s Best Small Car in 2003 and 2005.

Winner of the Scottish Small Car of the Year award in 2003.

Winner of the UK What Car? Magazine Budget Car of the Year in 2003.

Budget car champion on the UK motoring programme, 5th Gear in 2003.

Denmark’s Best Seller Of 2003 award.

The Getz 1.5 CRDi was Portuguese ‘Car of the Year’ for 2004

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REFERENCES

REFERENCES

(1) worldwide.hyundai.com

(2) www.hyundai.com.my/model.html

(3) www.hyundaicorp.com/eng/company/current.asp

(4) www.linkedin.com/company/hyundai-motor-india-ltd - Cached

(5) www.carlist.my/used-cars/make/Hyundai/model/Getz/

(6) Principle of marketing by Philip kotler/ gary Armstrong

7)Assistant manager from hyundai cor. Branch Shah Alam

APPENDIX

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Hyundai Korea

Modified Hyundai / INOKOM GETZ body kit

Hyundai GETZ GLS

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Hyundai GETZ GLX

Hyundai GETZ GLE

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Internal Design

Hyundai Motor Company in America

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