Principles of marketing – Honda Civic

Principles of marketing – Honda Civic

Honda Civic, Features and Benefits, Price and the Total Cost of Ownership

Behavioral economics suggests that any general economic set up problem is more likely to change the behavior of a rational consumer. This means that consumers may opt out of an established program for saving as an example. In the last two decades, Honda Civic has managed to gain a higher market share in the United States by the virtue of producing products that are more reliable (Clark, 2015). Moreover, a reliability that transpires in a period that is extended typically affects the resale value. This means that Honda Civic achieves benefits derived from higher resale values.  Many businesses today use approaches that are more valuable during procurement processes. This in turn underutilizes private market procurements ran by government agencies.

Total Cost of ownership makes it possible for purchasers to proceed towards long-term cost saving and sustainable strategies as opposed to short-term benefits including lower costs (Jain & Jain, 2014). For example, Honda Civic, which is a more product dominant business, selects suppliers who are based on price, ignoring any value that suppliers may offer to the business. It is important to note that a successful total cost of ownership strategy will ensure that higher rates of initial business are traded off for lower rates mix including intangible aspects such as customer referral and satisfactions. For example, Honda Civic focuses on using total cost of ownership strategy to add customers. This process mostly requires approaches that are now coupled by more work (Jain & Jain, 2014).

Type of Consumer Offering

There are four types of consumer products that have varying characteristics, each having specific consumer purchasing behavior. This means that consumer products are differentiated by consumer behaviors such as the way they make purchases or the type of marketing processes (Jain & Jain, 2014). In all the four categories, convenience products tend to be bought in a more frequent manner by consumers. This category includes all those products, which consumers usually purchase immediately, frequently devoid of any buying effort or great comparison (Ivey, 2015). The products may include fast food, magazines, laundry detergent or sugar. Honda Civic does not belong to this category, as it is not found in many locations nor is it low-priced.

The shopping product is another category whereby consumers are able to make comparisons on product attributes such as price, quality and style (Ivey, 2015). This is during selecting or purchasing process. Therefore, consumers normally purchase only the products that have been carefully compared as opposed to shopping products. Consumers tend to spend more time as well as effort in the process of comparing alternatives or options after gathering all essential information (Jain & Jain, 2014). Honda Civic falls under this category including others such as airline services, furniture, used cars as well as clothing. Moreover, businesses dealing with shopping products tend to distribute such products through few outlets. However, there is a deep sales support offered by such businesses in the process of assisting consumers make informed decisions during their comparison efforts.

Specialty products are all those products that have a unique brand identification or characteristic. Additionally, significant consumers of these products tend to make special efforts during purchasing process (Clark, 2015). The most differentiating aspect between the four different categories is the different effort levels in their particular purchasing process. It is worth to note that the special purchasing effort is applied to specified group of consumers of certain products such as designer clothes or specific cars such as Honda Civic.

This means that during the process of purchasing Honda Civic, most consumers would be willing to travel long distances during testing that will determine if they will be able to make a purchase or not. However, it is important to note that unlike in shopping products, consumers will tend to have fewer comparisons between products during purchasing (Jain & Jain, 2014). Instead, they will be more willing to invest more time in searching for the best dealers of the particular brand of Honda Civic and will not make any comparisons with other brands.

Finally, unsought products are all products that consumers do not have any information of their existence. However, the customers may harbor information but will not make any purchasing considerations given any normal condition (Armstrong & Kotler, 2014). This means that most consumers in this category typically only think about such products when needing or wanting them. For example, consumers will become aware of any new technological innovations when they come across them. This may also include pre-planned funeral services or individual life insurance policies. Businesses, which deal with unsought products, will tend to invest more in selling, advertising or marketing processes to get consumers’ attention (Jain & Jain, 2014).

Product Line Extensions or New Product Development

Honda Civic Company relies on line extensions as a critical process in its marketing strategy since the management perceive such line extensions as low risks and low costs when meeting consumer’s needs and wants (Clark, 2015). Besides, the company realized that line extensions are vital tools with the potential of satisfying consumer needs and desires by proving various car models under the brand of Honda Civic.

Therefore, the management utilizes extensions as a competitive weapon that is short-term in increasing brand control during the limited market time. However, it is important to note that the strategic role of each Honda Civic brand tends to become muddled in cases where there is over-segmentation. Additionally, it will tend to extend its line risks, which will in turn undermine Honda Civic brand loyalty. This is because extensions do not often affect product category brand besides failure by retailers to extend selling time. Notably, all costs associated with over-extensions are normally hidden (Jain & Jain, 2014).

Product Lifecycle

Typically, auto companies such as Honda Civic promote particular aspects of their products that normally differentiate their product from the rest in the market. For instance, Honda Civic achieves this by undertaking promotions on its product’s fuel efficiency, voice recognition, parking facilitation on speed or technology or compact size. At this particular stage, the business normally banks on only consumers who are wealthy and therefore able to purchase the vehicle at its most expensive point (Jain & Jain, 2014).

This means that such consumers are influenced by the products’ latest or greatest feature during purchasing. When Honda Civic unveiled its first batch of hybrid products, marketing tactics involved showcasing the vehicle’s level of fuel efficiency and the strategy of appreciating all the consumers who were willing to join the company in environmental movement. The tactics seemed to work and as a result, the company charged high prices that were capable of subsidizing technology used in making new products (Armstrong & kotler, 2014).

Marketing Channels and Price in Creating Value for Customers

Marketing channel decisions have become critical business practices for many businesses that make about prices and features of their specific products. This is mainly because many consumers are increasingly becoming demanding in the market (Jain & Jain, 2014). They tend to purchase a competing product if a business fails to avail to them products that they demand using a clear marketing channel at the time that they specifically demand for it (Clark, 2015). In other words, the process of selling has become equally important just as the particular products they use for trading.

The channel members include any firms that partners with a business to actively sell or promote a product. Many companies such as Honda Civic normally choose the best marketing channel including the most viable channel partners. Big companies only work with strong channel partners that have the potential of increasing the value of particular products that it deals with (Ivy, 2015). On the other hand, channel partners that have been identified to be weak and tend to pose liability to the company’s operations. It is important to note that Honda Civic utilizes the simplest marketing channel consisting of a consumer and a producer.

The marketing initiative is a contrast to many other companies that utilizes multiple organizations before reaching the target consumers. The multiple organizations are identified to as intermediaries in the marketing environment. In this respect, many companies tend to work with intermediaries simply because the business organizations assist the company to sell and market their products (Armstrong & Kotler, 2014). Moreover, intermediaries are ideal, as they are able to access a wide market and consequently, consumers.

References

Armstrong G. & Kotler P. (2014). Principles of Marketing. New York. Pearson Publishing.

Clark E. F. (2015). Principles if Marketing. South Carolina. BiblioBazaar Publishing.

Ivey W. P. (2015). Principles of Marketing: A Textbook for Colleges and Schools. Ontario. Scholar’s Choice Publishing.

Jain A. & Jain P. (2014). Principles if Marketing for B.Com II. New Delhi. VK Publishing.

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