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Assignment Mkt




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 NORZEHA N BT ABU BAKAR DATE : 7 APRIL 2011 GROUP : AC 220/2A 1 CONTENT NTS S Items Pages  Introduction  Background  Product  Price 10-13  Promotion 14-19  Place 20-25  arket ing Marketing 3 of the company 4-5 6-9 Environment ± Challenges Chall enges a. Microenvironment  b. Macroenvironment 26-28  Future  Conclusion  Awards 31  eferences R eferences 32  A  Planning Planni ng 29-30 31 ppendixes 2 CONTENT NTS S Items Pages  Introduction  Background  Product  Price 10-13  Promotion 14-19  Place 20-25  arket ing Marketing 3 of the company 4-5 6-9 Environment ± Challenges Chall enges a. Microenvironment  b. Macroenvironment 26-28  Future  Conclusion  Awards 31  eferences R eferences 32  A  Planning Planni ng 29-30 31 ppendixes 2 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 sho wed 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 market. First, is product which wants 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 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 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 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 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 will be looking into it deeply based on the product that we choose which Getz. 3 BACK ROUND OF COMPANY  Hyundai Motor Company is a Korean automaker  which along Hyundai Kia it is the Automotive world's Group, the world¶s with Kia comprises the fifth largest automaker as of 2009. 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, 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 customer. The company of Hyundai is very much popular in the North America. with its 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 The company was was 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 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 po wer of Hyundai   provide the scintillating performance. responsive when 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 Besides which were which is proving to be the master of all trade. to prove equally eventful for Hyundai Motor shock of 1979, the government took steps to protect the industry, Company. which After the oil 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 was were revised in 1986 follo wing the recovery of the able to resume manufacture of light commercial vehicles. 4 By 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 with the introduction of  Sonata, a four-door sedan, in late 1988; initial sales, though, proved disappointing. later, this car  was being manufactured at the Bromont A year  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 was By 1990, the proving increasingly important to the essentially export-oriented group. 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 Hyundai Motor & Co., on the other hand, was Middle East. 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 August was once 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. 5 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 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-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. 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,  buys the Hyundai Getz, they Product will warranties and delivery. get quick repair services when For example, when customer  needed. 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 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 that help the operation. Business which 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. 7  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. 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 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 8 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)  b) c) 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. 9 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 When Setting Prices Customer Perceptions of Value i) 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 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 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 the product design. Edition 2009 For what 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 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 ne w Hyundai Getz Prime. The ne w car has been priced at around R s. 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 ne w version of car is higher than the old one. 10 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 straightfor ward. 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. Hyundai develop its Getz brand to compete with Perodua Myvi, For example, when 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 markets. The seller¶s pricing freedom varies company fall under oligopolistic competition, which with which include pricing in different types of  different types of markets. Hyundai the market consists of a fe w 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. 11 Product Mix Pricing Strategies The strategy for setting a product¶s price often has to be changed  product mix. In this case, the company will when 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 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 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 and Auto-metallic. which are Manual-solid, Auto-solid, 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 this type of pricing the Hyundai  base price and car is included which with Motor offer as options. Company must decide For with which their main product. In items to include in the example, the Getz car price is increase when the 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 which the company will Motor Company for Getz car. First is segmented pricing sell their product at t wo or more prices, where the difference in   prices is not based on the differences in costs. In this type of pricing, Hyundai company use product-form pricing which Motor  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 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 For example, Hyundai Motor Company reduced the price of Hyundai Getz SE ( A) LIMITED EDITION 2009 for the World Cup FIFA Promo in will May 2010.Third is the international pricing where setting prices for customers located in different parts of the country or  the company 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, la ws 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. 13 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. Hyundai Motor Advertising 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 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, 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 words and illustration into an advertisement that will convey the intended message. 3. Message: 4. Media: the set of symbols that the HYUND AI COMPA NY transmits. the communication channel through which the message moves from sender to receiver. In this case HYUND AI COMPA NY selected the newspaper. 14 5. Decoding: the process by which 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. R eceiver: The party receiving the message sent by another party. That is the business customer  who read the HYUNDAI COMPA NY copier ads. 7. R esponse: the reaction of the receiver after being exposed to the messages . Any 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. Feedback: 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 write 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, 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 HYUND AI COMPA NY product. For the message to be effective, the HYUND AI CO MPA NY µs 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 COMPA  NY¶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 HYUND AI COMPA NY decisions on what will will be said , how it will be said, said it. 15 heavily affect communicator¶s where it will be said, and who will 2. Determining the communication objective y Awareness- 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. y 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. y Purchase- HYUNDAI COMPA  NY 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 y Message content-consist of three types of appeal. First, rational appeal that is relate to the audienceµs self-interest. HYUNDAI COMPA  NY 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 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 Message 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 16 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 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. HYUND AI COMPA  NY carried the message through newspapers, and it has to watch 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. For  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 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 ho w the audience views the communicator. Message delivered by highly credible sources are more   persuasive. Thus, but, the company must be careful represent their brands. Picking the wrong a tarnished image. 17 when 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 whether they remember  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 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 bet ween dollars spent and the  promotion result. which wants But it is also the most difficult method to use. Often, it is hard to figure out specific task  will achieve stated objective. For 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. 18 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. But, Advertising 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 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 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 wee-though-out who public relation campaign used avoid salespeople and with other promotion 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 will members, who will in turn demand it from company. 19 then demand the product from channel PLACE 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. success depends not only ho w channel competes with well As such, an individual firm¶s it performs but also on ho w well its entire marketing competitors¶ channels. Hyundai-Sime Darby (formerly known as Hyundai- Berjaya Sdn Bhd) Motors Corporation Sdn Bhd which with Bhd is the franchise holder of Hyundai vehicles and the sole distributor of Hyundai completely-built-up (C BU) vehicles, as models manufactured in collaboration Sdn Hyundai Motor well 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 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 t he 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 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 wholesalers Meanwhile 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 world. Channel Behaviour and Organization Distribution channels are complex behavioural systems in interact to accomplish individual, company and channel goals. 20 which A people and companies 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, 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 ho w well the entire Hyundai marketing channel competes with the channels of other auto manufacturers. To meet the consumer need and systems, in which want, 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 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 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 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 levels of service. The company should decide which different segments to serve and the best channels to use each case. In each segment, the company channel cost of meeting customer service requirements. 21 wanting wants 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. For  example Hyundai¶s size and financial situation determine marketing functions it can 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 y 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 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, which occurs use more than one, but fe wer than all, of the intermediaries carry their products. working relationships By when who producers are willing to using selective distribution, they can develop good with selected channel members and expect a better than average selling effort. y R esponsibilities 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 22  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 will want what characteristics distinguish 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 Hyundai will working 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 who are performing well and adding good value for consumers. Those who perform poorly will be assisted 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 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 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. 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 warehouses with they wait to be sold. The warehouses 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 when Jelutong, Shah customers are ready to buy them. Their stockyark located at Alam, Pelentong,Johor  Bharu and Kulim,Kedah. 24 Bukit 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. R esponsibility 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 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. 25 MARKETI NG ENVIRONM ENT 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 with target 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. 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 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. 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 ra w materials, equipment and final goods are satisfactory. related with suppliers will Any development 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 26 also relates with the increase and decrease in prices of an input used or quality of the goods itself. iii. Competitors Competitors are other organizations that are competing same consumers with with the company for the 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. the type of competitive environment in which Marketers need to be a ware of  they are operating. This will influences the number and types of competitors they must be concerned greatly 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 of a company. factors are bigger societal forces that affect the microenvironment Macroenvironment or little influence. is an uncontrollable environment Macroenvironment surrounding environment which where 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. Marketers will whereby depend on the demographic factors to these factors will influences buying 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. 27 ii. Technology Marketers 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. Advances in manufacturing technology, distribution, pricing techniques and marketing research  better serve to their customers. For example, with will help organizations 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. working iii. Additionally, 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, 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. 28 FUTURE PLANNING YEAR 2009 Hyundai in Malaysia season promotion has launched a ne w version of Hyundai Getz 1.4 litres for the festive which is the ne w Hyundai Getz SE Special Limited Edition . This ne w stylish and beautiful Getz SE is only limited to 300 units only. y Accessories: 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 y 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 -15Alloy Wheels -5 Years Warranty or 300,000km -Fuel tank capacity 45(litre) -Low fuel consumption km/l -White Colour Only 29 y  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. y The price of the ne w Hyundai Getz SE is around R M51,000 with low interest rate from 1.99% per year. YEAR 2011 y For 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 For Hyundai Getz, they will replace it with i25 and i20. 30 CONC LUS I ON 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 kno wn by the car buyers all over the world.Competition among automobile companies throughout the Hyundai Getz competition includes the recently launched R enault Maruti world 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 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 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 Best was Seller Of 2003 a ward, 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. y Winner of the Scottish Small Car of the Year award in 2003. y Winner of the UK What Car? Magazine Budget Car of the Year in 2003. y Budget car  champion on the UK motoring programme, 5th Gear in 2003. y Denmark¶s Best Seller Of 2003 award. y 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  (3) www.hyundaico /current.asp (4) compan y / hyundai -motor-india-ltd - Cached (5) (6) P rinciple of marketing by  P hilip kotler/ gary Armstrong  7) Assistant manager from hyundai cor. Branch Shah Alam APPE ND IX 32 Hyundai Korea Modified Hyundai / INOKOM GETZ body kit Hyundai GETZ GLS 33 Hyundai GETZ GLX Hyundai GETZ GLE 34 Internal Design Hyundai Motor Company in 35 America