Automotive Industry Marketing Essentials: Mercedes Benz Case Study

Mercedes Benz Case Study


Marketing is the analytical instrument in the contemporary commercial organisations and businesses; it consists of comprehension of the market, consumers’ demands, creating lucrative associations, consumer-focused marketing strategy, in addition to the provision of high-quality products or services among the target market segment (Ansoff, et, al. 2018). Businesses and organisations have understood the significance of effective consumer associations, and they are attempting to employ ground-breaking processes in the direction of marketing plan to streamline their business operations. The mindfulness concerning marketing fundamentals are excessively great within the existing economic conditions in the international market (Ansoff, et, al. 2018).

As a result, the report will be based on a study that portrays a commercial entity referred to as Mercedes Benz, which has its centre of operations in Stuttgart, Germany. The trademark is well-known for luxury trucks, coaches, buses, and vehicles, and the brand initially acknowledged in the European market-system in 1926 under Daimler-Benz.  Around 2018, the company was the most significant selling first-class automobiles in the global market, selling over two million passenger cars. The primary motive behind the increasing revenues of Mercedes Benz is an outcome of a customer-driven approach concerning the marketplace.

The report concentres on the marketing rudiments within commercial entities that belong to the contemporary period of globalisation. It illustrates the obligations of promotion, primarily with the duties of publicising operations and their associations with other processes of organisational structure. It also associates the techniques of employment of the marketing mix within the organisation to attain structural aims in addition to purposes. Additionally, the report creates and appraises the major marketing plan for Mercedes Benz.  

Background of Mercedes Benz

The historical account of Mercedes Benz is exclusively on automobile manufacture and high-quality design. They are recognised as the creator of the first vehicle in 1886 and internationally acknowledged as the world’s prosperous and oldest car manufacturer, which is an essential asset the firm.  Its parent organisation is Daimler-Benz and later on, in 1998 America’s Chrysler merged with Daimler-Benz to generate the fifth most significant and successful automobile manufacturer in the world, with over 300,000 employees. Since the Daimler-Benz is a reputable trademark is also registered to other car manufacturing companies in Europe, the brand Mercedes-Benz was designed to differentiate the new union (, 2019).

Mercedes-Benz is an excellent illustration of premium quality. The vital motives for this seem to be traditional of the German people. Germany is considered socially as a community of high levels of efficiency and organisation. Furthermore, Germans unrestrained speed limit necessitates that the automobiles are expertly engineered that they can voyage at high speeds without draining or inner noise, which is an essential strategy for sustaining the competitive advantage.

The company has production plants in South East Asia and South America that are an essential managerial strategy since it takes full advantage of the affordable labour expenditures within the regions. Mercedes Benz has a long and useful history of taking part in motorsports. The independent brands Daimler and Benz were both engaged in the first motorsport tournament in 1894 that took place in France. Thus, this history is an essential asset for the company’s trademark. Moreover, the learning curve influences of manufacturing premium engines are a significant profitable resource for the firm. 

Mercedes Benz Case Study
Mercedes Benz Case Study

LO1 Explain the role of marketing and how it interrelates with other functional units of an organisation                   

P1 Explain the key roles and responsibilities of the marketing function

Marketing purpose might be described or illuminated as the roles of a commercial entity that aids it to realise and source hypothetically prosperous amenities or products for the market, as well as assists within its campaign. These essential operations are usual in businesses and organisations and consist of product strategy, market research, the process of development, promotion campaigns, finance, consumer support services, sales, after sales services, etc. (Armstrong, et al, 2018). The marketing operations comprise different responsibilities of the firm, which are liable for the progress and development of the firm. The marketing operations entail marketing studies, product developments, human resource management, finance team, sales support system, distribution systems, etc. Marketing operations have unique roles that promote growth and development of organisational structures and in general, the whole company (Blythe, and Martin, 2019). The leading roles and responsibilities of marketing procedures comprise planning, selling, promotion, distribution, finance, communication, market research, and product development. The marketing operations have an energetic obligation within the company, and there exists a close connection between organisational purposes and marketing functions within a company.

The interdependence between promotion operations and other corporate procedures might be illuminated as the advertising purposes, which are essential fragments of a commercial entity such as Mercedes Benz, and therefore other useful units and departments are associated with each other and work in harmony for the attainment of organisational goals and objectives. As a result, this can be expounded as marketing functions are significant since they are required to support other operational units of the firm and accomplish efficiently (Blythe, and Martin, 2019). If an organisation desires to strategize and execute a marketing proposal, as an outcome, the sales department necessitates support from other departments such as production department, financial department, and human resource management. Moreover, according to Pike, (2015) if the sales department of Mercedes Benz desires to provide discount offers on the purchase of the latest models, now the sales group ought to communicate with both manufacture and funding departments before implementing the policy.

The marketing operations are independent unities within a company; however, every function and department work harmoniously for the attainment of organisational goals and objectives such as increasing revenue and profits of the firm. The primary purpose of marketing is to rising incomes and earnings as an outcome of increased sales, which is a consequence of full engagement of all departments in the success of the company (Cook, 2017). The finance department offers suitable financial plans and records to the publicising team for the preparation and execution of an advertising strategy. Additionally, the manufacture unit connects with the logistics division to satisfy the needs of the market and the delivery of products and amenities (Cook, 2017). Human relation guidelines are produced and are influenced by sales, target market segment, and trends in the market. Consequently, all the operational departments of the organisation are associated with each other to attain a fruitful selling strategy between the company.        

M1 Concept of marketing, comprising existing and impending market trends, summary of five elements of marketing procedure     

The marketing theories are segmented into several critical ideas that illustrate the primary essence of marketing at Mercedes Benz. These are conceptions of marketing consists of existing and impending marketplace inclinations for a prosperous advertising strategy. The conceptions encompassed within the advertising process include manufacturing process, products or facilities, marketing, selling, and social marketing conception (Cossío-Silva, et al., 2016).

Production concept: It is a concept that is according to the discernment of consumers, and it portrays that customers are motivated in the direction of services or goods that are straightforwardly accessible in good-quality and capacities at affordable rates; therefore, the functioning capability of the company ought to concentrate on enhancing the fraction of production.

Product concept: Here, users associated and select the inventions that have significance for their cash, excellence, and ground-breaking. As a result, this concept depicts that customers might be retained via the provision of premium and affordable services and products that are valuable for the users.

Selling concept: The attitudes of contemporary users attract via marketing campaigns; consumers tend to concentrate on amenities and products that are violently marketed in the target consumer base.

Marketing concept: It clarifies the need to focus on the target market segment for the distribution of high-quality services and products. Additionally, to survive and be prominent in an economical marketplace, the company ought to supply premium provisions in the market. The marketing concept represents the trademark significance of the firm and should be improved to interact with the shoppers within the target market segment. If the company’s value is improved, customers will habitually select the brand over its business rivals.

Social marketing conception: It displays the primary focus on consumer requirements and preferences of the target market segment, that customers can prefer the firm’s products and amenities over its business rivals.

P2 Explain how roles and responsibilities of marketing relate to the wider organisational context

The section analyses the primary duties of marketing within the framework of the promotional setting and the broader organisational framework. Marketing administration is described as the procedure of preparation and implementation of the diverse impressions of publicising (De Mooij, 2018). These promotional ideas consist of sales, pricing, supply, promotion, etc. that compliments the intended market segment, the obligations of publicising might be described as,

Market strategies: The first purpose marketing describes the formulation of promotion plans and preparation for the attainment of organisational goals and objectives. The sales directors of the company ought to realise the consumer’s needs and preferences and satisfy them accordingly. The creation of marketing strategies facilitates the development of a state of equilibrium between managerial purposes and prospects within the target market segment.

Marketing information structure: The (MIS) or marketing information system offers critical data and information concerning different facets like planning, product development, management of marketing policies, and implementation of marketing strategies. For instance, a marketing information system explains the information concerning the distribution of raw materials on a real times basis that assists the supply chain in attaining its organisational goals and objectives effectively.

Supervision of the marketing setting: The procedure of marketing has a critical role in the realisation of new creations within the marketing setting and the entire organisational framework. As a result, these latest innovations include transforming market qualities, regulatory and legitimate changes, interior and exterior modifications of the target market segment, and the socio-economic forces.

Marketing research and development: Marketing studies are regarded to be the critical of the promotion process. The studies consist of precise knowledge of products or services, price, quality of products and services, also, to communicate the company’s concerns within the target marketplace.

Market segmentation: Within the contemporary period of a globalised marketplace system is unpredictable; therefore, firms such as Mercedes Benz require precise market subdivision that is presented by the promotion processes. The marketing director of the company aids in identifying the preferred market segment and promotes the supply of goods and services to fulfil consumer needs.

Trademark impartiality: Customers tend to be attracted to high-quality goods. As a result, effective marketing strategies provide a credible reputation and creates a resilient trademark value of the firm among customers within the target market; consequently, this procedure assists the company to accomplish its general organisational aims and purposes. 

M2 Analyse the significance of interrelationships between marketing and other functional units of an organisation

Marketing purposes encompasses diverse functions like finance, distribution channels, and advertising (De Mooij, 2019). However, these are the undertakings that derive from the procedure of promotion strategies. The main components of promotion purposes include; 

Marketing research and development: Here, within the company, marketing research plays a critical duty since it is regarded as the greatest promotion purpose, as lacking a functional marketplace analysis, the attainment of organisational goals and objectives is almost unbearable. Market studies help in attaining valued data concerning all the aspects of the industrial process and business environment.  But, other strategies such as finance management and logistics might be enhanced via market research and development. Therefore, it is regarded as a critical essential marketing function among businesses.

Strategy: Once the gathering of essential data and evidence from the studies, it is administered to analyse all the conceivable strong points and weaknesses within the organisational structure of the company. As an outcome, the processed data and information enables the firm to create important ideas for marketing policies that can be employed within the company (Pike, 2015). The strategies offer valued directions for competing with the resilient consumer base and prosper in a competitive market structure. The approaches are designed over all the real potentials and results that are measured via market research analysis.

Planning: Right after productive achievement of market studies, analysis, and policy processes, the following essential operation of promotion is the preparation procedure. The sales team consists of forecasting of sales figures, communication, financial planning, the supply of goods and services, in addition to the other facets of the firm. The preparation team employs a precise timeline to strategize the primary approaches for ensuring that the company attains its organisational goals and objectives.

Tactics: These are temporary strategies that are executed to appeal customers within the target market segment. They consist of the partial period offers that provide a promotional improvement within the marketing plan like customised vehicles at cost-effective rates. It aids in anchoring the initial market pressure from business rivals and increase profits due to rise in sales.

For instance, the human relations policies ought to be unified with the sales team to upsurge the transactions and the marketing team should communicate essential strategies the information concerning critical conditions in the market such as the effects of Brexit in the European market since if marketing functions are not clearly understood the marketing plan will result in losses.  

LO2 Compare ways in which organisations use elements of the marketing mix (7Ps) to achieve overall business objectives

P1 Using the extended marketing mix compare ways in which different organisations apply their marketing mix to meet business objectives.

The marketing mix is employed within the process of marketing planning to realise corporate aims and purposes. The company uses different approaches for the implementation of the marketing mix within its managerial procedures (Hill, and Alexander, 2017). Typically, it is based on the quality of the facilities and products offered by the firm, size and scope of the consumer segment, scope of the firm, and marketplace demographics. The promotional mix is the essential instrument that aids salespersons to comprehend the market segment and provide consumers with the right goods and services, which will fulfil consumers’ needs and preferences. The widely known applications of the marketing mix comprise the 4Ps of marketing that include price, product, position, and promotion. Therefore, this technique was later protracted to 7Ps that consist of advertising, people, process, physical evidence, place, price, and product.

Mercedes Benz is a large and successful automobile company, which attained its current status due to consumer-driven efforts that assisted the firm to progress and design its brand in the global market-system. Hence, this was facilitated by the employment of protracted marketing mix by the marketing department and unpretentious appetite of consumer-driven tactic. According to Howell, (2015) different companies, whether small or big, spend ample finances on marketing procedures, promotion, research and development, and advertising campaigns. The primary motive is influencing the corporate goals and policies along with consumer fulfilment method. The employment of a marketing mix within the process of promotion is concentrated on the position of selling the products, promotional activities, product dimensions, and pricing structures of the firm. The protracted publicising mix employs the essence of offering corporeal confirmation and supply procedures of goods and services to users.

M1 Evaluate different tactics used by the businesses to achieve their objectives

The primary focus of the marketing team is to navigate a company towards distinct purposes. The central commercial targets or obligation objectives is to accomplish the broad commercial objectives of a company (Jain, 2017). Executing business goals necessitates effective communication with the personnel to bring into line commercial objectives with the team and individual goals. It also involves effective budgeting, strategic planning, and continuous supervision of specific performance measurements.

Product and service strategy: Market competition necessitates the company to continuously present new and advanced services and products to survive and keep with market changes within customer demand. Mercedes Benz has been manufacturing innovative automobiles that are driven by the changing market trends; thus, the company has attained its strategic goals of developing into one the leading car manufacturer in the world.

High and low pricing strategies: Pricing strategies do not consistently translate to the application of low-rates policies to attain marker dominance; however, it is a clear path to market dominance (Shamout, 2016). A few businesses uphold high-rates as an approach, playing with consumers’ mental tendencies to compare premium quality with high rates, while other companies such as Mercedes Benz employ affordable prices presenting refunds, exclusive discounts, and offers.

Marketing strategies to target customers: An effective marketing strategy pursues to concentrate on its consumer base and fulfil consumers’ needs and preferences. It consists of periodic promotion campaigns as essential tactics to attain market dominance (Kowalczyk, 2017). Additional methods that influence market positioning for the company include merging with other companies like the merger between America’s Chrysler and Daimler Benz.

Operational efficiency strategy: The practical policy of reducing production costs and increase profits comprise decreasing operational expenditures by employing modern technologies and innovativeness resource planning, hiring competent employees and investing in advanced plant and equipment, shifting to cost-effective quarters, changing hours of operating to produce premium products or services, and creating several productions or assembling plants close to the company’s target market segment.

P2 Design a strategic marketing plan that tactically applies the use of 7 Ps to achieve overall marketing objectives.

Mercedes Benz employs the extended marketing mix to respond and fulfil consumer needs and preferences in the world-wide marketplace, as well as the attainment of its organisational aims and purposes, the procedure is in this way;

Product: The products manufactured by the company are of high-quality, integrated with modern technology, and fulfil consumers’ needs and preferences. As a result, the primary purpose of the products is to make sure that the market segment is fully satisfied (Jain, 2017).

Place: The accessibility of the products or amenities offered by the company ought to be readily available to the customer. The distribution ought to be prompt, like digital shopping. For instance, the company should increase the number of assembling plants of its products around the world to fulfil the increasing demands of automobile products.

Promotion: The marketing campaigns comprise sales promotion, public relations, advertising, and social media marketing. Mercedes Benz is a B2B organisation that concentrates on the marketing of its products on a global platform by using modernised technologies.

Price: The pricing of the services or products ought to deliver value for money experience to users. Thus, this is an essential tactic that should be representing the value to customers and to allow the company to compete in a competitive and dynamic market.

People: The individuals encompasses administration, personnel, corporate culture, and consumer support services of Mercedes Benz are critical entities of the company.

Process: The procedure consists of the services offered by the firm; it depicts how the facilities are exploited. For instance, Mercedes Benz distributes its products to users with personalised customer support services and messages.

Physical environment: It consists of production plants, go-downs, consumer interface, and comfort within the company (Jain, 2017).


The report has effectively depicted the obligation of the marketing purpose and the interrelationships of other administrative operations. The 7Ps, which is the general marketing mix, are analysed and compared within the selected company to attain economic goals and objectives. Additionally, the evaluation and development of an effective marketing plan have been concisely expounded.

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