Chapter 8: Segmenting and Targeting Markets

Well many people might heard the particular words of segmentation and targeting markets but not many of us understands it as well. A market segmentation is the process of dividing a broad consumer or business market normally, consisting of existing and potential customers, into sub groups of consumers known as segments based on some share characteristics. Volkswagen considered the largest automaker company in the world and the richest company in the world they do their best in meeting particular needs of costumers and more essential new consumers. But not only Volkswagen do this most of the companies do knowing that we live in a very diverse society is very difficult to identify the needs of people as soon as possible but observing  the sales statistics of Volkswagen they are able to achieve this particular goal and willing to improve in it.

Knowing that Volkswagen is a European company most of its revenue come from Europe they control the market in Europe but they looking forward to spread more their particular in the united states and try to make a stand in the united states market which is very important as well.

There are many types of segmentation but this are the 3 most essential segmentations the Geographic segmentation, Demographic segmentation, and Psychographic segmentation. this types of segmentation are most accurate and most essential in the market area.

Geographic segmentation: is a common strategy when you serve customers in a particular area, or when your broad target audience has different preferences based on where they are located. This marketing approach is common for small businesses that serve a wide demographic customer base in a local or regional territory.

Demographic Segmentation: is market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education. Demographics can be segmented into several markets to help an organization target its consumers more accurately.

Psychographic Segmentation: involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers. This segmentation is advantageous because it allows you to engage in product design and marketing in a focused manner.

Volkswagen has made an outstanding job following this particular segments but they have been more focus on the geographic segmentation knowing that is a multinational company it has to build a lot of strategies based on locations and target the costumers in each particular place.

Sources:

-http://smallbusiness.chron.com

-http://www.marketing91.com

Chapter 15: Marketing Communications.

Volkswagen uses resources like personal selling, social media and public relations as a promotional strategy and knowing that is one of the largest automaker companies in the world this particular strategies have being dramatically good for them. There particular marketing strategy is very good knowing that most f the people knows about Volkswagen and its efficient products. Knowing that we living in a very technological world now a days. one of the most useful strategies Volkswagen is implementing the most is social media advertisement mostly in social medias like Instagram, snapchat, facebook and twitter this particular social medias helped the brand to increase there advertisement even more. 

Volkswagen has being one of the best companies in making an action into the marketing world and advertisement also knowing that is one of the most famous car companies in the world controlling all the market in Europe and more than 20% of the china market. But all those accomplishment couldn't being possible without a great strategy to make a marketing plan to work as good as the company.

Marketing communications is something very essential in Volkswagen but not only in that company but also in all companies who are trying to make a reputation into their companies product and for that to be accomplished marketing communications is something that it has to have a base and a creative strategy.

Social media Resources of advertisement of Volkswagen.

Chapter 10: Product Concepts

Volkswagen and its products are one of the most efficient and famous in the world. Volkswagen selling statistics are outstanding and that influence a lot the way the product concepts and the product manufacture is build and how those it works. Volkswagen has been in the car manufacture industry for approximately 80 years that's something very difficult to accomplish knowing that they've been I difficult situations but still has overcome through all those particular events and has progress to be on the top and that inform us a lot about the character of the company in general. The reliable product that Volkswagen has build has make an impact in the societies specially in Europe. Knowing that Volkswagen control the largest market in Europe and also in China. Controlling more than 20% of the market.

Product concepts of Volkswagen are very simple but also very Important. Safety is one of the most important concepts of the company but not only in Volkswagen also all the company's in general. Volkswagen always take safety very serious because it includes the quality of the product and Volkswagen is well known for their good quality and reliable products that they build.

Chapter 17: Personal Selling and Sales Management.

Personal selling provide an advantage to their customers in general whether is in the car manufacture industry or not. But talking about Volkswagen and the car manufacture industry personal selling and sales management is something that is essential for the success of the company and the satisfaction of the customers. Knowing that customers that are trying to buy a product that needs some revision and some advises for which product could be more beneficial in your life style and other things is much better to make a decision by the advises of a person that knows about the product and company as well. Volkswagen has an outstanding customer service and I witnessed that not so long ago. customer service of the retail stores of Volkswagen demonstrate interest and make the customer feel safe and special in the Volkswagen family.

Volkswagen is the largest automaker company in the world according to Forbes and that success is influence by the fantastic work personal selling employees contribute to the company. Volkswagen has build a great reputation. and this hasn't change even when they have some difficulties in 2015 they got back in profit and start working hard by the end of the second quarter they surpass Toyota and became what they are now one of the richest and largest automaker company in the world.

Chapter 16: Advertising, Public Relations and Sales Promotion.

As I said before according to forbes.com Volkswagen is the largest Automaker company in the world and that progress has being influence by the fundamental work that advertisements and sale promotions have conquer. Buying a car is not so easy this days knowing that the economy is not that good. But even thought that's a disadvantage for the car manufacture industry Volkswagen has done an outstanding job increasing the sales and doing advertisements. knowing we live in a century where technology is taking over. Volkswagen realize that and one of the essential strategies they have done is create network advertisements in all social medias like twitter, Facebook, Instagram, and many others. and they have done a good job knowing that they on the top and with good competition like Toyota and ford.

This particular advertisements have being very useful for the company and also including the most popular ways of using the "hashtag" is getting even bigger and the most important part of this particular advertisements is that is free for the company. Free advertisement is a big advantage of the company in general it keeps the company communicate it with the costumers and it gives positive propaganda to the brands. Here is some examples of free advertisements and positive effects of ads in social media.

Marketing Channels and Retailing

Volkswagen has create an outstanding reputation but that's not only for the effort of creating a good and reliable product for the people. But also for the interest and the support of the people. As Volkswagen belief that the customers need is the priority of the company. That's one of the keys Volkswagen has become a strong company in the automaker industry. As we all know Volkswagen as a multinational brand and its presence its all over the world its operates in more than 153 countries. It has 100 plants in North and South America, Europe, Africa, Asia, and Oceania. But surprisingly its presence its not that strong in the United Stats but they also have plants in the country as well. Lets take a look at a dealer store of Volkswagen located in Manhattan New York.


Volkswagen and its team its willing to work in the expansion of the market specially in the United States. Knowing that its one of the biggest markets in the world. But even though the market in the United States is not as well as in other countries. Volkswagen controls more than 20% of the market in china which is an advantage that they have against the competition like Toyota and others. Also Volkswagen has the biggest market in Europe. Volkswagen has been successful in many things in the world market and willing to work to expand even more to keep being the largest automaker company in the world.

Volkswagen dealer in Manhattan, NY

                         

Chapter 6: Consumer Decision Making

One of the most essential objectives in any business not only in the automaker industry but in every industry is the consumers opinion and believe about the company. Volkswagen takes this particular action and believe very serious. Because the consumer is the actual boss because that's where the profit comes from and they work hard to please the consumers in anything they can. their mission statement states that "At Volkswagen the priority mission and believe is to elaborate long term strategic partnerships with their customers." the priority of Volkswagen is the consumer and the communication with them as well. Volkswagen has create a reputation of success all around the world. And the reason for the success is the hard work and the ability to make the product attractive for the consumers. consumer decision making is very usual especially in the car manufacture industry. One of the most important things in this particular perspective f consumer decision making is that a marketer needs to recognize who their consumers are in order to be capable of selling their product also by Generating revenue and profitability but also to be able to satisfy them for future purposes such as market share through recognition, and only once identifying their consumer’s behavior can success be achieved.


                                        


Volkswagen try's to interact the best way as possible for consumers to be comfortable and satisfy with the decision that they are making with the help of the Volkswagen team. and that's one of the most essential things in the industry. It is essential for the marketers to be able to identify the needs of their target market, which will thus allow them to meet there needs effectively. to guarantee their consumers that there products are reliable, but also capable of meeting their needs in terms of the fuel consumption suiting them financially will keep them interested and it will make decision easier to make.

Chapter 5: Developing a Global Vision

Volkswagen has create an outstanding reputation during the decades and its becoming more powerful then ever knowing that according to the magazine Forbes Volkswagen is the largest automaker company in the world surpassing Toyota by this quarter of 2016. Volkswagen has create a mechanism to overtake Europe and parts of Asia one of the most essentials is China. Volkswagen also have a big and considerable good market in south America as well Volkswagen is the largest automaker company in Europe and the largest automaker company in China. But this didn't occur overnight they being in the industry for over 70 years. and it clearly shows that their hard work has given positive results over the years. But even thought they have a lot of positive things in this particular perspective of global vision they also have disadvantages. for example their international market in United States is not as big as it should be. but the looking forward to work in to that.

                                

Chapter 4: The Marketing Environment

The marketing environment is one of the most essential actions for a business to progress throughout the tough market competition this current years. One of the essential actions for a marketing to be successful is to have knowledge not only about the internal environment but also the external environment to have knowledge of the type of costumers believes and needs. Volkswagen has clearly outshine in this particular perspective knowing it controls the massive manufacture in Europe. and is the largest market in china It grabbed more than 20% of the china market with Volkswagen and Audi. It possesses the strongest market share in China, it operates its operation in more than 153 countries. It has 100 car manufacturing plants in North and South America, Europe, Africa, Asia, and Oceania.
This is a result f a big understanding and a successful action in marketing in those particular external environments.

Volkswagen AG, still reeling from a scandal that tarnished its reputation last year, is taking aim at some new demographic groups: younger drivers worldwide and Chinese car buyers.

Chairman of the Volkswagen Passenger Cars, told the audience at a high-profile auto show in Geneva this week. “Volkswagen will become younger, more emotional, and more exciting, (and) the vehicles we are presenting here in Geneva are pointing the way."
As one of the largest automaker companies in the world Volkswagen has a big impact in the external environments. in many places around the world. The diversity and innovation is completely different in different environments.

Chapter 18: Social Media and Marketing

Volkswagen has clearly made an effort for all societies around the world to know about them and social media has a big impact in that particular standard. Many people might ask what is social media? According by social media expert Brian Solis social media is "any tool or service that uses the internet to facilitate conversations." As we all know social media and technological advances has take over diverse societies all around the world for the past twenty decades. Social media has given benefits to not only Volkswagen but also to all brands around the world, given the opportunity to communicate and interact with costumers in a more clearly defined and easy way.

Volkswagen takes a lot of benefits with the technological and social media advances and many people might ask why? and the answer is because they are a multinational automaker company and it facilitates the process of advertisement and campaign for the new innovations. Volkswagen implement promotions and reminders throughout their website to let the costumers know and realize what actions they taking for the benefit of the costumer. Volkswagen has several social media accounts of advertisement and promotions their Facebook account has around 27,598.723 million followers. And their Instagram account has 14.7 million followers. And twitter account has 18.3 million followers. All of this number of people are outstanding and demonstrate how well Volkswagen has progress in the area of  social media and marketing.

The majority of social media stage is based on the innovation of the cars images, and short advertise video clips of the new innovation of cars of the recent time. Volkswagen has made a considerable impact in the social media area. Which it benefits them because it keeps the costumers aware and fascinated with the brand and its product.

Source:

• http://www.vw.com/
• https://www.facebook.com/Volkswagen/
• https://www.Instagram.com/Volkswagen/?hl=en
• https://twitter.com/VW

Chapter 2: Strategic Planning for Competitive Advantage

Volkswagen is one of the most successful and biggest manufacture companies in the world. it has been clear dominant in many perspectives in the automobile market sector. But many people may ask how they accomplish all those standards? well a lot of different but fundamental movements to surpass and outshine the market competition. And one of the most essential components is the  successful strategic planning in the market to surpass the competition. Currently one of the biggest competition of Volkswagen is Toyota they obtain the 1st place as the world's largest automaker. but Volkswagen became 2nd and currently in the process to surpass them. Volkswagen has been an outstanding automaker its currently under process of keep progressing in the automobile market sector. For many years Volkswagen mission is "to elaborate long term strategic partnerships with their customers. To offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class." Volkswagen is elaborating a strategic plan to become the global economic and environmental leader among automobile manufacturers by 2018.

presenting SWOT inspection provide corporations to distinguished their competitive benefit.

Strengths (Internal Strategic Analysis):

 Strong Brand Image: it owns 13 brands including famous brands Bugatti, Audi, Lamborghini, Porsche, and Volkswagen. Other brands are Bentley, SEAT, Škoda, MAN, Scania and commercial vehicles. With such variety of vehicles it builds a strong brand.

Presence all over the world: it operates its operation in more than 153 countries. It has 100 car manufacturing plants in North and South America, Europe, Africa, Asia, and Oceania.

Awesome performing Brands: Volkswagen has been thoroughly developing well-performed cars among all other brands.

Presence in the largest market in China: China is an emerging economy and the largest car market in the world. It grabbed more than 20% of the china market with Volkswagen and Audi. It possesses the strongest market share in China.



Weakness (Internal Strategic Analysis):

Weak position in the United States: it has only 4.8% market share in the United States. (2014)

Weak position in Indian Market: it possesses only 3% market share in a big country like India.

Most of their cars are not environment-friendly: we know that carbon-di-oxide harms the ecosystem. Three of their most active brands named Porsche, Lamborghini, and Bugatti emits excessive carbon-dioxide. And if any government takes any action against it, it may harm the company drastically.

Not a strong brand like Toyota: it could not build the presence like other known brands, for example Toyota.

Opportunities (External Strategic Analysis):

Technology Modification: it can change its technology to more environment-friendly cars which give them opportunities to avoid uncertainty.

Originate Indian Market: it can grow in the emerging market like India.

Market United States: Still there are rooms for increasing market shares in the United States.

Rooms for Social Responsibility: as they manufacture cars which produce more carbon dioxide, they can change their technology for the betterment of the environment and fulfill social responsibility.

Getting stronger through acquisition: it has successfully been acquiring other companies and getting larger.

Decreasing Fuel Price: cars which are more fuel dependent, and will be grabbing more market shares.


Threats (External Strategic Analysis):

Carbon Dioxide emission standards: if any government put any restriction on emitting carbon-di-oxide, it will harm the company.

Decreasing Fuel Price: with the decreasing fuel price, the demand of hybrid cars will be going down.

Raw material price in the increasing: the increasing price of raw materials will be hampering the economies of scale of the company, and therefore offering a high price.


Other Stronger Brands: Brands like Toyota, Fords are taking developing countries like Bangladesh, India where Volkswagen holds a low portion of market share.

Sources:

• http://www.history.com/this-day-in-history/volkswagen-is-founded

•  http://www.forbes.com/sites/andreamurphy/2015/05/06/2015-global-2000-the-worlds-biggest-auto-companies/#7bbc63b06e48 

•  http://www.marketwatch.com/story/volkswagen-back-in-profit-after-huge-2015-loss-2016-05-31  

•  http://www.volkswagenag.com/content/vwcorp/content/en/brands_and_products.html

 

Chapter 1: Overview of Marketing (Brief History and Mission Statement)

 Cesar Sanclemente

       Volkswagen is a German automaker founded in 4 January 1937 by the German Labour Front, headquartered in Wolfsburg, Germany. And is the largest car manufacturer in Europe, and there’s no doubt that the name is more familiar than the name used when the company was founded in 1937 – Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH. A string of successes features in the history of this German company, as well as some setbacks. The company was renamed Volkswagenwerk GmbH on September 16th, 1938, after being founded on the 28th of May the previous year. Work began on a new factory in 1938, in what is today the city of Wolfsburg, to produce a new car designed by Ferdinand Porsche. Throughout the time this company has become an icon in History specially in Germany. The second World War saw about 20,000 concentration camp prisoners, prisoners of war and laborers forced to work at the Volkswagen GmbH plant. During this time, the company focused on manufacturing armaments instead of cars. But this atrocities did not delay the company to be successful company, knowing that today is one of the richest and most successful factories in the world. After all this atrocities that occur in the second world war affected many peoples life Volkswagen created a humanitarian fund in 1998, to help provide financial compensation for those who were forced to work at the company’s plant during the war. The fund had helped over 2,000 people in 26 countries by the end of 2001. In addition, current employees at the Volkswagen plant have contributed towards a memorial in Wolfsburg, commemorating those who were forced to work at the plant. 

Volkswagen Mission Statement is:  "At Volkswagen the priority mission and believe is to elaborate long term strategic partnerships with their customers. To offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough market and set world standards in their respective class".

Sources:

• http://www.history.com/this-day-in-history/volkswagen-is-founded