Lovely Professional University

Marketing Assignment 2
Submitted By: Prableen Kaur

Unique ID: 11915941

Roll NO: RQ3E04B071

Course Code: MKT201

TOPIC: General Motors

Acknowledgement

Before starting up with this assignment I would like to thanks my teacher Dr. Preeti Mehra, who
has given such an assignment work. The interesting thing is that she hasn’t given any topic or
questions which we have to answer in spite of this she has allocated each of us a company about
which we have to gather information and write about market mix of that company. This
assignment is to increase our knowledge and to judge how much we have knowledge regarding
this project. I am not only making this project for marks but also for knowledge.
Introduction:

General Motors is an American multinational corporation whose headquarters located in Detroit

that designs, manufactures, markets and distribute vehicles and vehicle parts, sells financial
services, with global headquarters in Detroit’s Renaissance Centre. General Motors was founded
by William C. Durant on September 16, 1908. The company is the largest American automobile
manufacturer and the fourth largest in the world behind Toyota, Volkswagen and Hyundai. In
addition to this General Motors have 50% market share in United States.

General Motors manufactures vehicles in several countries. Its four core automobile brands
include Chevrolet, Buick, GMC, and Cadillac. It also either owns or holds a significant stake in
foreign brands such as Holden, Wuling, Baojun, and Lifang. Annual worldwide sales volume
reached a milestone of 10 million vehicles in 2016.

Report Layout:

In this, analysis of company has been seemed by comparing financial report of previous years.
Cash flow, profit and loss account and balance sheet have been over viewed by me to see
company sales, assets, liability, and profit and losses.

Marketing mix:

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its
brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product,
Promotion and Place. However, nowadays, the marketing mix increasingly includes several other
Ps like Packaging, Positioning, People and even Politics as vital mix elements.

4P’S: PLACE, PRODUCT, PROMOTION, PRICE

Analysis of product dimension:

Product refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't do
any good.

Organizational objectives:
Organizational objectives for General Motors are the short to medium term targets and goals that
the organization sets to achieve the bigger strategic goals set for the long term. The
organizational objectives are important in shaping resource allocation within General Motors as
well as in determining the policies, schedules and processes that are implemented in General
Motors.
Components of objectives:

 Specific

All objectives set by General Motors are specific and clear. This helps employees, as well as
managers, manage and maintain focus on the targets and the end results that need to be achieved.
At the same time, specific objectives help managers determine skill development and training
needs within their departments as well.

 Measurable

Objectives at General Motors are also measurable. This means that all objectives can be tracked
for progress. This is important for General Motors as it helps in meeting deadlines. The element
of measurability is added in objectives by adding quantifiable criteria for determining progress
and objective achievement.

 Attainable

The goal should be attainable that even in stretching the abilities of the employees and
challenging them, it should remain possible to achieve. The objectives at General Motors are
attainable in that they push the employees out of their comfort zones but remain possible to
achieve.

 Realistic

Objectives at General Motors are also attainable in that they are realistic. This means that
General Motors sets objectives keeping in view the organizational resources and constraints to be
able to achieve objectives effectively and within time.

 Timely

Objectives at General Motors are also time-bound in that they have a specified start and finish
date. The timeliness of the objective helps General Motors maintain a sense of urgency in
employees, and keep them motivated towards achieving the objective.

Physical goods:
This aspect of the marketing mix pertains to the outputs of the business. Each product line
represents a group of outputs or products. The set of all the product lines is called the product
mix. In General Motors’ case, the product mix shows limited business diversification.
Nonetheless, the company offers a wide variety of products, such as different brands, types, and
models of automobiles. The product lines in General Motors’ product mix are as follows:
Automobiles
Automobiles Parts
Commercial Vehicles
Financial Services

General Motors is popularly known for its automobiles. For example, the company offers GMC,
Buick, Chevrolet, and Cadillac vehicles to target markets worldwide. However, the company
also offers other products, such as parts for its various automobiles. The products under
commercial vehicles are the ones that General Motors offers for commercial operations
involving passengers. For instance, the company’s Chevrolet commercial vehicles include
customized or specialized trucks and SUVs for business use. The first three product lines
(automobiles, automobile parts, and commercial vehicles) are classified as automotive products.
On the other hand, financial services compose the fourth product line. These services are offered
under GM Financial, which operates as a subsidiary of General Motors. The company offers
these financial services to benefit from loans and related transactions with target customers when
they purchase automobiles. This aspect of General Motors’ marketing mix indicates a low degree
of business diversification, although the company maximizes profits from its transactions by
strategically combining automotive products and relevant financial services.

Warranty:
3-YEAR/36,000-MILE† BUMPER-TO-BUMPER LIMITED WARRANTY

5-YEAR/60,000-MILE† POWERTRAIN LIMITED WARRANTY

5-YEAR/100,000-MILE† POWERTRAIN LIMITED WARRANTY

BRANDING:
Vehicles: CHEVROLET

BUICK

GMC

CADILLAC

Other Brands: supply power

Heritage

Marine
Packaging:
Since our establishment in 2006, G. M. Packaging has come up as a highly regarded organization
Manufacturing and trading in products like Packaging Pallet, Plywood Boxes, Wooden
Packaging Boxes, Wooden Crates and many more. These are highly demanded amongst our
customers for their faultless finish, robust nature, top quality and accurate design.

Place Mix:
Place refers to the point of sale. In every industry, catching the eye of the consumer and making
it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a
premium for the right location. In fact, the mantra of a successful retail business is 'location,
location, location'.

In this aspect of General Motors Company’s marketing mix or 4Ps, the virtual or physical
locations of transactions are considered. Such locations are significant because they enable the
company to reach target customers in specific markets, while also allowing customers to access
information and GM products available from the automotive business. The following places are
used in the distribution of General Motors’ products and services:

 Official websites
 Dealership
 Automotive shows and exhibits

General Motors has official websites for its various business operations. For example, the
company has a site for Chevrolet, another site for GMC and another for Buick. Cadillac also has
its own official website. Through these websites, customers can access information about
products and locate dealers. Dealerships are General Motors’ partners authorized to display GM
products and transact with customers. At dealerships, customers sign contracts for the purchase
of automobiles and contracts for auto loans from GM Financial. Moreover, General Motors
engages in automotive shows and exhibits. These shows and exhibits, involving popular
automotive-specific organizations and audiences, allow the company to extend its market reach
and potential distribution. In this aspect of the marketing mix, the combination of online
channels and physical places support market penetration efforts linked to General Motors’
generic strategy and intensive growth strategies.

Nature and importance of channel:

All the organization through which a product must pass between its point of production and
consumption.
Distribution channels are a set of mutually dependent parties that avail a finished product to its
customers. These channels enhance efficiency by reducing the amount of transactions required to
permit the flow of goods from the producers to the potential consumers. This can be achieved
through breaking bulk i.e. the retailers and manufacturers buy goods in huge quantities from the
producers but sell a few at a time to several customers or by creating assortments. Creating
assortments implies that they avail several products in one place conveniently for customers. The
General Motors Organization makes use of various channels of distribution to ensure that their
new vehicles, old vehicles, and their spare parts are made available to their potential consumers.

Dealers and intermediaries:

For over a century, dealers have acted as the most valuable link between the manufacturers and
its customers in the distribution channels. Although they differ in terms of scale, performance,
and ownership, their main objective is to convert the customer’s interest into ownership
(Cartwright, 2002). They may be categorized as small scale if they makes sales of
120automobiles annually, medium if their sales range between 120 to 499 automobiles annually,
or large if their sales are above 500 automobiles yearly. The size of a dealer hence determines his
corporate strategy i.e. if he in a single-brand isolation, a single-brand group or a multi-brand
group.

A single-brand isolated distributor sales only one brand in only one location and they are mainly
the small-scale dealers while the single-brand isolated distributor deals with only brand and is
based in different locations and can be a medium or a large-scale dealer. The multi-brand
isolated distributor on the other hand deals with more than one brand.

Promotion mix:
Promotion refers to all the activities undertaken to make the product or service known to the user
and trade. This can include advertising, word of mouth, press reports, incentives, commissions
and awards to the trade. It can also include consumer schemes, direct marketing, contests and
prizes.

Promotional activities are considered in this aspect of General Motors’ marketing mix of 4Ps.
These activities are also known as marketing communications tactics. The combination of these
tactics is called promotional mix or marketing communications mix. In General Motors’ case,
the following promotional activities are used, arranged according to significance in the
automotive business:

 Advertising
 Direct marketing
 Personal selling
 Sales promotion
  Public relations

Advertising is the most significant tactic in General Motors’ promotional efforts. For example,
the company advertises GM cars in a variety of media, including online media and traditional
outlets like television and magazines. These advertisements allow GM to reach a large
population of target customers in global, regional and domestic automobile markets. General
Motors also uses direct marketing to address the specific needs of customers. For instance, direct
selling supports the company’s aims of satisfying corporate customers through the sale of
commercial vehicles. On the other hand, personal selling typically happens inside dealerships,
where employees persuade customers to purchase automobiles from General Motors. Sales
promotion is occasionally executed through discounts or freebies to attract customers to
dealerships. In addition, public relations are applied in the form of sponsorships of charitable
activities and events to promote GM brands and products and to help such events, thereby
supporting General Motors’ corporate social responsibility strategy. This aspect of the marketing
mix highlights advertising, although the other promotional tactics are also significant.

Price mix
Price: refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall business
plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

The setting of price points and price ranges for the company’s products is the main concern in
this aspect of the marketing mix. Pricing affects the perceived value of brands and products, and
influences sales in price-sensitive markets. In this case, General Motors’ pricing strategies for its
automotive products are as follows:

 Market oriented pricing strategy

 Premium pricing strategy

General Motors’ objective in the market-oriented pricing strategy is to set competitive prices
based on the prevailing prices of automobiles in the global market. For example, many GM
automobiles are priced according to the price ranges of competitors. On the other hand, in the
premium pricing strategy, General Motors sets relatively higher prices that correspond to
premium branding. For instance, Cadillac automobiles are offered at higher prices. This high
pricing supports a premium brand image for Cadillac, and helps maximize profit margins,
especially when considering the company’s cost leadership strategy. Thus, this aspect of the
marketing mix or 4Ps points to current market conditions and branding strategy as bases for
pricing GM products.

Geographic:
Previously, we looked at the history of General Motors’ (GM) key brand Chevrolet. Currently,
GM has assembly, manufacturing, distribution, office, or warehousing operations in 59 countries.
Now, let’s take a look at some of the key geographical markets that contribute to the company’s
revenues.

Since GM’s beginning, North America has been its most important market. North America alone
accounted for ~70% of GM’s total revenues in 2015. In recent years, GM’s revenues from North
America have also risen. This was primarily due to a recent trend in the US auto market in which
demand for pickup trucks surged over small car demand. Low gasoline prices and lower interest
rates could also be key drivers behind this shift in the US auto demand pattern.

SWOT ANALYSIS:
Strength Economies of sale
Strong Brands
Human resource expertise
Weakness Bureaucracy in organizational culture and structure
Limited market presence in developing countries
Limited business diversification
Opportunity Reduction of bureaucracy in the organizational structure and culture
Expansion of market presence in developing countries
Integration of advanced computing technologies in products
Threat High level of competition
Disruptive potential of new technologies
Governmental promotion of public transport and other alternatives

Recommendations:

This SWOT analysis indicates the capabilities of General Motors. The company is in a strong
position in the automotive industry. For example, economies of scale, strong brands, and human
resource expertise are major strengths that empower the company and its competitive advantage.
General Motors can use these strengths to ensure positive business performance despite
organizational weaknesses. These strengths can also address some of the threats and
opportunities, such as competitive rivalry and expansion of market presence, respectively.

General Motors, however, needs to implement strategic reform for business resilience. Such
reform must address the company’s weaknesses and threats, and exploit the opportunities
available in the automotive industry. For example, an aggressive GM dealership strategy can
expand the company’s global market presence. Based on the most significant internal and
external strategic factors in this SWOT Analysis of General Motors, the following
recommendations are appropriate:
  Continue reforming the organizational culture to address the issue of bureaucracy
 Grow the dealership network to expand GM’s market presence in developing countries
 Increase GM’s rate of innovation to improve competitiveness and protect the business
from potential disruption in the automotive

Conclusion:

To conclude, marketing mix is a term which is essential in every business as it tell us about
company products, price, and place and promotion tools. After making this assignment
importance of marketing mix in company development came to know.