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 NORZEHA N BT ABU BAKAR DATE
: 7 APRIL 2011
: AC 220/2A 1
CONTENT NTS S
arket ing Marketing
3 of the company
Environment ± Challenges Chall enges
eferences R eferences
Planning Planni ng
CONTENT NTS S
arket ing Marketing
3 of the company
Environment ± Challenges Chall enges
eferences R eferences
Planning Planni ng
can be defined as the process by
companies create value for
customers and build strong customer relationships in order to capture value from customer in return.
recent survey of top marketers sho wed that they all share common goal
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 market. First, is product
in the target
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
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
let the company make
a fair profit by getting getting paid for the customer 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
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
given a task to choose any product and to explain clearly about
the marketing strategies and marketing mix for the product that
choose. So, our group has
made a decision to choose one of the products from the famous automobile company
Getz from Hyundai Motor Company. Hyundai
Company is gro wing 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
be looking into it deeply based on the product
that we choose which Getz. 3
ROUND OF COMPANY
Hyundai Motor Company is a Korean automaker which along
Hyundai Kia it is the
Kia comprises the
fifth largest automaker as of 2009.
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,
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 customer. The company of Hyundai is very much popular in the North
vehicles manufactured by the company are very much related to his country. When it comes to the history of the company, then the Hyundai The company
first introduced in 1986 in the market.
known to be excelled and since that time the company had sho wn the
drastic change in the globe. Another
interesting fact is that the company is kno wn 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
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 po wer of Hyundai provide the scintillating performance. responsive
is of 1.6 liter and is believed to
this, the performance of the car gets more
its on the road. The main reason is that the car is having the 4-speed
automatic transmission The 1980s
is proving to be the master of all trade.
to prove equally eventful for Hyundai
shock of 1979, the government took steps to protect the industry,
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 market, and Hyundai
revised in 1986 follo wing the recovery of the
able to resume manufacture of light commercial vehicles. 4
the middle of the decade, Hyundai had taken Canada by storm. Its Pony
subcompact vehicles became Canada¶s top-selling car less than t wo 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
the introduction of
Sonata, a four-door sedan, in late 1988; initial sales, though, proved disappointing. later, this car was being manufactured at the
plant, following the opening of the
factory in 1989. The group became intent on reducing its dependence on the U.S markets. domestic market Both
proving increasingly important to the essentially export-oriented group.
the car and construction
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 Hyundai
& Co., on the other hand,
prospering as Korea¶s largest car
maker. The auto concern officially separated from the Hyundai Group in September 2000, signaling the start of s weeping changes that led to the eventual dismantling of what South Korea¶s largest conglomerate. In
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.
PRODUCT: HYUNDAI GETZ What
is a product?
Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a
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-NC AP 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.
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
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
the product. The additional services that can attract customers to purchase the product such as finance schemes, after-sales services, buys the Hyundai Getz, they Product
get quick repair services
and Service Classifications
Product and services categorized into t wo 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 sa tisfy their needs. There are several types of consumer products such as shopping products, specialty products, convenience products and 6
unsought products. Hyundai Getz is under the specialty products because it is for the consumers
to make a special purchase effort.
usually do not compare
specialty products. They invest only the time needed to reach dealers carrying the
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
be transformed entirely
into something else. For example, Hyundai buy steel, cotton, iron and etc to produce car. Another
group is capital items
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 that help the operation.
they are items
services include maintenance and repairs services, and
business advisory services. Product
and Service Decision
a)Individual Product and Service Decision i)
Product and Service Attributes P roduct 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. ³ P roduct 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.
P roduct 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 ho w customer will use and benefit from the product.
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 vie w 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 services This 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 kno w about the customer¶s satisfaction about the Hyundai Getz.
b) Product Line Decisions 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. Product
c) Product Mix Decision 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
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, gro wth, maturity and decline. a)
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. Product
is a period of slo w sales growth as Hyundai Getz introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Introduction
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. Growth
d) Maturity is a period of slowdown in sales gro wth 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 do wn and profits drop. This happen because there is another product which is more attractive than before and consumer tend to buy a new product.
PRI CE Price 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
Customer Perceptions of Value
Pricing decisions, like other marketing mix decisions must start
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 ho w much value consumers place on the benefits they receive from the product and setting a price that captures this value. In this case, Hyundai
company use the value-based pricing
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 the product design. Edition 2009
costs can be incurred and resulting
example, some car buyers consider the Hyundai Getz SE Limited
a real value, even at an eye-popping price of R M63,888.First type of value-
based pricing is the good-value pricing. In this type of pricing strategies the Hyundai
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 ne w Hyundai Getz Prime. The ne w car has been priced at around
3.89 lakh. The second type of value-based pricing is the value-added pricing.
To increase the pricing power the Hyundai
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 ne w version of car is higher than the old one.
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,
straightfor ward. Some companies position their product on prices and then tailor other marketing mix decisions to the prices they
to charge. Other companies deemphasize
price and use other marketing mix tools to create non-price positions. Hyundai develop its Getz brand to compete
this required charging a high
price. Next factor is organizational considerations.
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
have an influence on pricing include sales managers, production
managers, finance managers and accounts. Another
factor is market and demand
markets. The seller¶s pricing freedom varies company fall under oligopolistic competition,
include pricing in different types of
different types of markets. Hyundai
the market consists of a fe w sellers
are highly sensitive to the other¶s pricing and marketing strategies. Hyundai company is compete
other car company such as Proton, Perodua, Honda and etc. If a Perodua
company slashes its prices by 15percent, buyers
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.
Mix Pricing Strategies
The strategy for setting a product¶s price often has to be changed product mix. In this case, the company
the product is part of
looks for a set of prices that maximizes the profits
on the total product mix. In the mix pricing strategies, the Hyundai
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 bet ween the various products in a line. The price steps should take into account cost differences bet ween the products in the line..For example, the Getz car has four different type Manual-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
Company also uses the optional-product pricing for the
Getz car. It is the pricing of optional or accessory products along this type of pricing the Hyundai base price and car is included
offer as options.
Company must decide For
their main product. In
items to include in the
example, the Getz car price is increase
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
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 which
Company for Getz car. First is segmented pricing
sell their product at t wo or more prices,
the difference in
prices is not based on the differences in costs. In this type of pricing, Hyundai company use product-form pricing
the different versions of the Getz car are priced
differently but not according to differences in their costs.
example, Hyundai Getz SE
Limited Edition 2009, Hyundai Getz 1.4 DOHC SE NEW 09, Hyundai Getz 1.3
Hyundai Getz 1.4 manual have a different prices according to their version. Second is the promotional pricing
can be an effective means of generating sales for most companies.
Same as other company Hyundai
Company also adjusted their product price belo w 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 dra w more customers. 12
Company reduced the price of Hyundai Getz SE ( A) LIMITED EDITION 2009 for the
World Cup FIFA Promo in will
2010.Third is the international pricing
setting prices for customers located in different parts of the country or
Hyundai Motor Company that market their product internationally, the company must decide what
price to charge in the different countries in
they operate. The price that the
company should charge in a specific country depends on many factors including economic conditions, competitive situations, la ws and regulations and development of the
and retailing system. For example, the price of Hyundai Getz Prime 1.3 GVS are different in Malaysia,
India, Japan and South Korea.
PROMOTION The Promotion Mix Advertising-is
any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor. other form.
includes broadcast, print, internet, outdoor, and
Company makes the advertising by internet, ne wspapers,
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 HYUND AI, it includes HYUNDAI GETZ R EMOTE
CONTR OL. It has high quality and attractive price.
Public relation-is building good relation
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 .
HYUNDAI company , they do the public
relation likes, R OAD SIDE ASSISTA NCE PR OGR AM 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 o wnership experience and ensure that customer get immediate and hassle free service in the event of any car breakdo wn.
A View Of The Communication Process
To communicate effectively, marketers need t o understand ho w communication works. Communication involves nine elements: 1. Sender: the party sending the message to another party.
The sender here is
HYUNDAI COMPA NY. 2. Encoding: the process of putting thought into symbolic form. HYUND AI COMPA NY advertising agency assembles
and illustration into an
advertisement that will convey the intended message. 3.
the set of symbols that the HYUND AI COMPA NY transmits.
the communication channel through
the message moves from sender to
receiver. In this case HYUND AI COMPA NY selected the newspaper.
5. Decoding: the process by
the receiver assigns meaning to the symbol encoded
by the sender. That is a consumer read the HYUNDAI COMPA NY copier ad and interprets the words and illustration it contains. 6.
The party receiving the message sent by another party. That is the business
customer who read the HYUNDAI COMPA NY copier ads. 7.
the reaction of the receiver after being exposed to the messages .
hundreds of possible responses, such as the consumer is more a ware of the attributes of HYUNDAI COMPA NY copiers, visits the HYUNDAI COMPA NY WEB SITE for more information, actually buys an HYUND AI COMPA NY copier or does nothing. 8.
the part of receiver response communicated back to the sender. The
HYUNDAI CO MPA NY shows that consumer are struck by and remember the ad, or consumers
or call HYUNDAI CO MPA NY praising or critizing the HYUND AI
company product. 9. Noise: the unplanned static or distortion during the communication process,
result in the receiver¶s getting a different message than the sender one. That is the consumer is distracted
reading the magazine and misses the HYUND AI
COMPA NY product. For
the message to be effective, the HYUND AI CO MPA NY µs encoding process must mesh
the receiver¶s decoding process. The messages consist of words and other symbol that
are familiar to the receiver. The more the HYUNDAI COMPA NY¶s field of experiences overlaps
that of the receiver, the message is likely to be.
not always share their consumer¶s field experiences .
Steps In Developing Effective Communication
1. Identify the target audiences The target audiences of HYUND AI COMPA NY decisions on
be said , how it will be said,
heavily affect communicator¶s
it will be said, and
2. Determining the communication objective y
When HYUND AI CO MPA NY first introduce its 500 cars model,
it used GETZ to create initial a wareness and curiosity. The company sho ws the car, but not its name. y
Knowledge ±later, the HYUND AI COMPA NY create kno wledge by informing potential buyers of the GETZ¶s high quality and its many innovative features.
Liking-assuming the consumer kno w about this product, ho w do you feel about it? Once potential buyers knew about GETZ, HYUNDAI COMPA NY wanted
to move them through successively stronger stages of feeling to ward
the car. y
Conviction- HYUNDAI CO MPA NY 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 COMPA NY must lead the customer to take the final step.
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 y
content-consist of three types of appeal.
rational appeal that is
relate to the audienceµs self-interest. HYUNDAI COMPA NY informs customer about the quality of GETZ and
GETZ is the best choice. Second
emotional appeal, that is try to stir up either negative or positive emotion that can motivate purchase. HYUNDAI COMPA NY 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 µright¶ and µproper¶. For example HYUNDAI COMPA NY do the headline. y
structure-HYUND AI COMPA NY must also decide how to handle
three z or leave it to the audience. It is better if NYUND AI CO MPA NY asking questions and letting buyers come to their o wn 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 whether
to present one sided argument or t wo sided argument. That is
HYUNDAI CO MPA NY only mention about the GETZ strength or touting the GETZ strength while also admitting its shortcomings. y
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
sounds, and voice. HYUND AI
COMPA NY carried the message through newspapers, and it has to
color, size, and expressions.
4. Choosing media HYUNDAI COMPA NY selects both of the channels of communication. y
Personal communication channel : HYUND AI COMPA NY 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 HYUND AI COMPA NY.
example customer service contacts the buyers. y
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
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 ho w the audience views the communicator.
delivered by highly credible sources are more
persuasive. Thus, but, the company must be careful represent their brands. Picking the
a tarnished image. 17
selecting celebrities to
spokesperson can result embarrassment and
6. Collecting feedback After
sending the message, the communicator must research its effect on the target
audience. This involve asking the target audience members
the message, how many times they sa w it, what point they recall, ho w they feel about the message, and their past and present attitudes to ward 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 COMPA NY 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 CO MPA NY decide on its promotion budget? . This company uses the objective-and-task method: Objective- task- method
HYUNDAI COMPA NY sets its promotion budget based on
it wants to accomplish
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 bet ween dollars spent and the promotion result. which wants
it is also the most difficult method to use. Often, it is hard to figure out
specific task will achieve stated objective.
example, HYUNDAI COMPA NY
98 percent a wareness for its car model during this six-month introductory period. What
specific advertising message and media schedule cost? HYUND AI CO MPA NY management must consider such question, even though they are hard to ans wer.
Shaping The Overall Promotion Mix
T he Nature of Each P romotion T ool Advertising-can
reach masses of geographically dispersed buyers at a lo w cost per exposure,
and it enable the HYUND AI CO MPA NY to repeat a message many times. For this company, TV is the place to reach a mass audience. It is because consumers tend to vie w advertised through the artful use of visual, print, sound, and color. company.
can trigger quick sales to
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
audience, and the audience does not feel that it has to pay attention or respond. It can be very costly. Sales promotion-includes a
assortment of tools like coupons, and premiums. They
attract consumer attention, offer strong incentive to purchase. It also invited a nd re ward quick response to HYUND AI COMPA NY. Public relation-It is very believable. It can reach many prospects advertisement. Yet a
public relation campaign used
avoid salespeople and with
mix elements can be very effective and economical. P romotion Mix Strategies.
HYUNDAI COMPA NY has choose pull promotion. Using a pull strategy, HYUNDAI COMPA NY directs its marketing activities toward final consumers to induce them to buy the product. The pull strategy is effective, consumers
members, who will in turn demand it from company.
then demand the product from channel
PLACE We now arrive at the third marketing mix tool ± place.
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. success depends not only ho w channel competes
such, an individual firm¶s
it performs but also on ho w
its entire marketing
competitors¶ channels. Hyundai-Sime Darby
(formerly known as Hyundai- Berjaya Sdn
is the franchise holder of Hyundai vehicles
and the sole distributor of Hyundai completely-built-up (C BU) vehicles, as models manufactured in collaboration
as the three
Company by INOKO M
is based in Kulim, Kedah. Currently, the impressive net work of
sales, parts and service dealers has contributed to the increasing confidence by
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 t he Value Delivery Network
Producing a product or service and making it available to buyers requires building relationships not just
customers, but also
key suppliers and resellers in the
company¶s supply chain. This supply chain consists of upstream and do wnstream partners. Upstream from the company is the set of firms that supply the ra w materials, components, parts, information, finances and expertise needed to create a product or service. downstream refer to marketing channel partners, such as
and retailers, form a
vital connection bet ween the firm and its customers. A
value delivery net work 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 kno wn all around the
Channel Behaviour and Organization
Distribution channels are complex behavioural systems in interact to accomplish individual, company and channel goals. 20
people and companies
marketing channel consists
of firms that have partnered for their common good. Each channel member depends on the others.
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, and the services after the sale. Each Hyundai dealer also depends on other dealer to provide good sales and service that
uphold the brand¶s reputation. In fact, the success of
individual Hyundai dealers depends on ho w
the entire Hyundai marketing channel
competes with the channels of other auto manufacturers. To meet the consumer need and systems, in
Hyundai has adopted multichannel distribution
a single sets up t wo 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 bet ween
is ideal and
practical. For maximum effectiveness, channel analysis and decision making should be more purposeful. 1.
Designing the marketing channel starts
from the channel. Hyundai provided the nearby locations that easy for consumers to look their cars.
they provided all type of communication to consumer kno w
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
often accept lower services levels in exchange for
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 levels of service. The company should decide
segments to serve and the best
channels to use each case. In each segment, the company channel cost of meeting customer service requirements. 21
to minimize the total
The company¶s channel objectives are also influenced by the nature of the company, its product, its marketing intermediaries, its competitors and the environment.
example Hyundai¶s size and financial situation determine marketing functions it can handle itself and
it must give to intermediaries.
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
3. Identifying Major Alternatives y
Types of Intermediaries Hyundai has identified the type of channel members available to carry out its channel work. They use the industrial distributors ,
find the distributors
in the different region who will buy and carry the ne w line. Hyundai give them exclusive distribution, good margins, product training and promotional support. y
Number of Marketing Intermediaries Hyundai use selective distribution strategies,
use more than one, but fe wer than all, of the intermediaries carry their products. working
are willing to
using selective distribution, they can develop good
selected channel members and expect a better than
average selling effort. y
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.
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 the better one. It
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
to evaluate the number of cars that
they can sell.
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 Hyundai
together as a part of cohesive value delivery system.
give free promotion to help the distributors like roadsho w,
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 re ward intermediaries 23
and adding good value for consumers. Those
or as a last resort, replaced.
Marketing Logistics and Supply C hain Management
In the global marketplace, selling a product is sometimes easier than getting it to customers. Hyundai decide on the best
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
gain a powerful advantage by using improved logistics to
give customers better service or lo wer 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.
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 warehouses with
to be sold. The
are large and multi-storeyed
dramatic changes in technology recent years. The storage function
overcomes differences in needed quantities and timing, ensuring that products are available
customers are ready to buy them. Their stockyark located at
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 require teamwork, both inside the company and among all the marketing channel organizations.
for various logistics activities is assigned to many
different departments. Each function tries to optimize its o wn 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
other channel partners to improve
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
Darby Motor is the third party that does the marketing promotion for Hyundai¶s car in the Malaysia.
CHALLENGES FACED BY HYUNDA I GETZ Marketing
environment consists of the actors and forces outside marketing that affect
marketing management¶s ability to build and maintain successful relationships
customers. The marketing environment offers both opportunities and threats. The environment continues to change rapidly. The marketing environment is made up of Microenvironment 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 ar e: 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.
instance, the top management sets the company¶s mission, objectives, goals and broad strategies.
example, Hyundai has set the goals includes making employees
responsible for their decisions: this empo wers them and fosters team work. 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.
Suppliers Suppliers are the providers of the resources needed by the company to produce its goods and services.
supplier will make sure that process used in the production,
supply of ra w materials, equipment and final goods are satisfactory. related with suppliers
affect marketing. For example, Global Suppliers is committed
to providing the best quality collision parts at the lo west possible prices for all Hyundai car models. When a problem occurs in the business, the seller will consult the suppliers. It
the increase and decrease in prices of an input used or quality of the
Competitors Competitors are other organizations that are competing same consumers
the company for the
the intention of fulfilling the same needs and
competitive environment includes all organizations that could possibly satisfy the needs and desires of the organization¶s target market. the type of competitive environment in
need to be a ware of
they are operating. This
influences the number and types of competitors they must be concerned
example, the residual value topped popular competitive models from Toyota, Nissan, Ford,
and Chevrolet, in addition to premium brands such as Lexus,
of a company.
factors are bigger societal forces that affect the microenvironment
or little influence.
is an uncontrollable environment
marketers have no
covers overall business opportunities. It explores
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 improve the products market behavior.
depend on the demographic factors to these factors
must keep track of the market population profile,
includes family size, age group and education level. For example, for passenger Hyundai have Equus, Genesis,
Sonata and Getz. While for recreational
Hyundai provide Veracruz/ix55, Santa Fe and Tucson/ix35.
use technology to improve the quality of products and services
provided by their organizations no wadays. Technological developments provide important information and opportunities to meet their customers¶ needs. Scientific knowledge, research, and innovations all result in ne w or improved goods and services.
in manufacturing technology,
distribution, pricing techniques and marketing research better serve to their customers. For example,
modern technology Hyundai
produce Environmentally-friendly exhaust systems. In response to increasingly stringent regulations on exhaust emissions, the Po wertrain Centre is stepping up its efforts to develop technologies that raise fuel efficiency, lighten vehicle weight,
lower friction and improve driving power.
the Center is
on development of po wertrains for hybrid electric vehicles .
Natural R esources Natural resources that are needed as inputs by marketers or that are affected by marketing activities include ra w materials used as inputs. These materials consist of mineral extracts and infrastructure,
are essential elements in
the production process. Depletion of natural resources
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.
FUTURE PLANNING YEAR 2009
has launched a ne w version of Hyundai Getz 1.4 litres for the festive
is the ne w Hyundai
SE Special Limited Edition . This ne w
stylish and beautiful Getz SE is only limited to 300 units only.
CD Player,Leather seats,Airbag driver, Airbag passenger,Sport
rims, Alarm,Central y
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 -R S Airbag ABS + EBD -4 STAR ~ NCAP -15Alloy Wheels -5 Years Warranty or 300,000km -Fuel tank capacity 45(litre) -Low fuel consumption km/l -White Colour Only
New sport rims 15 chrome design is simply beautiful. The ne w wing LED Mirror fitted makes this Hyundai Getz SE a perfect compact city car.
The price of the ne w Hyundai Getz SE is around R M51,000
low interest rate
from 1.99% per year.
this year Hyundai has changed its motto from µDrive Your Way¶ to µNe w
Thinking New Possibility¶ for increase convince to wards Hyundai¶s products. y
Hyundai Getz, they
replace it with i25 and i20.
CONC LUS I ON In conclusion,Hyundai
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
markets.For that reason their brand is famously kno wn by the car buyers all over the world.Competition
among automobile companies throughout the
Hyundai Getz competition includes the recently launched
has been fierce.
Suzuki Swift, Chevrolet UV-A and the
Logan.Hyundai Getz is gro wing into a brand appreciated by its
customers because it is such a good quality product.Numerous sections of the
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
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 a ward 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 The Getz 1.5 CR Di
Portuguese µCar of the Year¶ for 2004.Improvements in customer
satisfaction and a continuous sales gro wth 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.
AWAR DS y
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 µCar of the Year¶ for 2004 31
REFERE NC ES REFERENCES
(1) worldwide. hyundai .com (2) www. hyundai .com.my/model.html (3) www.hyundaico rp.com/eng/company /current.asp (4) www.linkedin.com/ compan y / hyundai -motor-india-ltd - Cached (5) www.carlist.my/used-cars/make/Hyundai/model/Getz/ (6) P rinciple of marketing by P hilip kotler/ gary Armstrong 7) Assistant manager from hyundai cor. Branch Shah Alam
APPE ND IX
Hyundai / INOKOM GETZ body kit
Hyundai GETZ GLS
Hyundai GETZ GLX
Hyundai GETZ GLE
Hyundai Motor Company in