Has the marketing mix for Volkswagen been successful Coursework

Has the marketing mix for Volkswagen been successful - Coursework Example This report will focus primarily on promotion at Volkswagen and psychographic segmentation and targeting strategies, since the recent successes at VW in the last four to five years has been highly dependent on these activities and marketing strategies. The report describes pricing structure at Volkswagen and the rationale for this strategy, followed by acknowledgement of product and place in the marketing mix, with a continuing in-depth discussion of promotional activities domestic and international that has led to higher sales since 2008. 2.1 Pricing and Product at Volkswagen One marketing manager at Volkswagen describes the rationale for pricing at the company: â€Å"We are targeting young, self-confident city dwellers†¦that want a car which ticks all the technical boxes, epitomizes lifestyle and is a little unconventional in terms of looks† (Volkswagen 2010, p.91). The market share in Europe contributes most to the sales revenues and profit of VW, a market that is domi nated by small-sized passenger cars produced by companies such as Kia, Hyundai, and Fiat (among many others). These cars typically carry much lower prices due to their efficiency in petrol mileage and limited features. Customers have dedicated brand following to many of these competitive models, thus in order to gain market attention from the young professional between 21 and 34, the business must devote much of its production capacity and capabilities to producing small- to mid-size cars as competitive low-end pricing. In the UK and the United States, as one example, the list price is approximately $19,000 for the Passat (the company’s largest international seller). This price structure is compared to other small-sized... The report describes pricing structure at Volkswagen and the rationale for this strategy, followed by the acknowledgement of product and place in the marketing mix, with a continuing in-depth discussion of promotional activities domestic and international that has led to higher sales since 2008. One marketing manager at Volkswagen describes the rationale for pricing at the company: â€Å"We are targeting young, self-confident city dwellers†¦that want a car which ticks all the technical boxes, epitomizes lifestyle and is a little unconventional in terms of looks†. Volkswagen continues to use actors and endorsers and messages in the promotion that are highly relevant to lifestyle and attitudes, thus improving brand equity and long-term market loyalty. Trust in the brand is built around the market communications offered by Volkswagen that revolves strongly around satisfying consumer demands and promoting â€Å"affordable innovations†. This company would seem to be a b enchmark of the theoretical concept of effective customer relationship management, through its dedication to establishing operational components, the marketing mix, sales dealerships, and communications precisely linked to customer social and psychological value systems and emotional competencies in this age group. Examination of research on Volkswagen did not indicate any negative sentiment from the brand in existing key target markets.