COURSE CODE: MKT420 PREPARED BY : NURUL FATIN IZZATI BT RASIK (2010689528) SITI HAJAR BT ZAMZURI (2010425734) SYARIZAWATY BT AHMAD SHAHRIR (2010486816) NURSYAFIQAH BT YUSUFF (2010848956) PREPARED FOR : PN NORZEHAN BT ABU BAKAR DATE GROUP : 7 APRIL 2011 : AC 220/2A 1 CONTENTS Items Introduction Background of the company Product Price Promotion Place Marketing Environment ± Challenges a. Microenvironment b. Macroenvironment Future Planning Conclusion Awards References Appendixes 29-30 31 31 32 32-36 Pages 3 4-5 6-9 10-13 14-19 20-25 26-28 2 INTRODUCTION Marketing can be defined as the process by which companies create value for customers and build strong customer relationships in order to capture value from customer in return. A recent survey of top marketers showed that they all share common goal which i s putting the consumer at the heart of marketing. To achieve the goal, each company must have their own marketing strategies then they must plan the detail of marketing mix. The marketing mix is the set of controllable tactical marketing tools that consists of product, price, place and promotion that the firm blends to produce the response it wants in the target market. First, is product which means the goods and services combination of the company offers to the target market. Product can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Second, is price that can be defined narrowly as the amount of money charged for a product or services. The pricing challenge is to find the price that will let the company make a fair profit by getting paid for the customer value it creates. Third, is place that includes company activities that make the product available to target customer. It is very important because customers want the product and service to be as conveniently available as possible. So, companies must taking care about their channels, coverage, locations, inventory, transportation and logistics. Fourth, is promotion mean by the activities that communicate the merits of the product and persuade target customers to buy it. Under the concept of integrated marketing communications, the company must carefully coordinate these promotion elements to deliver a clear, consistent and compelling message about the organization and its brands. In this assignment, every group was given a task to choose any product and to explain clearly about the marketing strategies and marketing mix for the product that we choose. So, our group has made a decision to choose one of the products from the famous automobile company which is Getz from Hyundai Motor Company. Hyundai Motor Company is growing into a brand appreciated by its customers because it is continuously striving to achieve the single goal of making good quality products with an emphasis on the customer first principle across all management levels, including production, sales and service. Our group will be looking into it deeply based on the product that we choose which Getz. 3 The entire vehicles manufactured by the company are very much related to his country. The 1980s were to prove equally eventful for Hyundai Motor Company.6 liter and is believed to provide the scintillating performance. the performance of the car gets more responsive when its on the road. After the oil shock of 1979. Besides this. In 2008. Headquartered in Seoul. Since the company had launched in the market. stylized H. it has been estimated that the company is going to be the largest companies of the world of the end of the last century.000 persons around the world. The company employs about 75. which had by then made large investments in plants and equipment. the government took steps to protect the industry. 4 . Hyundai vehicles are sold in 193 countries through some 6. The main reason is that the car is having the 4 -speed automatic transmission which is proving to be the master of all trade. South Korea. In fact. Hyundai (without Kia) ranked as the eighth largest automaker. there are many changes that had been made in the engines and the models of the car. it is the world's fastest growing automaker.000 dealerships and showrooms worldwide. The engine is manufactured at the power of Hyundai which is of 1. restricting Hyundai to car and large commercial vehicle manufacture. It kept a tight grip on the development of this sector and in 1981 divided the market. The Hyundai logo. The company of Hyundai is very much popular in the North America. The company was known to be excelled and since that time the company had shown the drastic change in the globe. Another interesting fact is that the company is known much more than the production of the cars. Hyundai operates the world¶s largest integrated automobile manufacturing facility in Ulsan. which is capable of producing 1. When it comes to the history of the company. symbolizes the company shaking hands with its customer. the world¶s fifth largest automaker as of 2009. then the Hyundai was first introduced in 1986 in the market. As of 2009.BACK ROUND OF COMPANY Hyundai Motor Company is a Korean automaker which along with Kia comprises the Hyundai Kia Automotive Group. and Hyundai was able to resume manufacture of light commercial vehicles.6 million units annually. a slanted. These regulations were revised in 1986 following the recovery of the market. particularly in the Middle East. following the opening of the factory in 1989. A year later. This situation helped Hyundai Engineering & Construction. In August 2001. in late 1988. 5 . to take up the slack created by declining markets abroad. In the company announced plans to build a car assembly plant and at the same time decided to enter the U. a four-door sedan. Hyundai Motor & Co. the domestic market was proving increasingly important to the essentially export-oriented group.8 billion and left it in control of 18 member companies. on the other hand. Hyundai decided to move up with the introduction of Sonata. The auto concern officially separated from the Hyundai Group in September 2000. nine core Hyundai companies. The separation cut Hyundai Group¶s assets to just $20. initial sales.S markets.. Its Pony subcompact vehicles became Canada¶s top-selling car less than two years after entering the market. Both the car and construction were enjoying strong demand at the end of the decade. this car was being manufactured at the Bromont plant. signaling the start of sweeping changes that led to the eventual dismantling of what was once South Korea¶s largest conglomerate. though. Hyundai had taken Canada by storm. By 1990. (formerly known as Hyundai Electronics Industries). including Hyundai Engineering& Construction and hynix Semiconductor Inc.S market. proved disappointing. The group became intent on reducing its dependence on the U. was prospering as Ko rea¶s largest car maker. like the vehicle operations. Hyundai continue to be pared down the following year.By the middle of the decade. they will get quick repair services when needed. features and packaging have been combined carefully to deliver the core benefit of staying connected. after-sales services. Product and Service Classifications Product and services categorized into two broad classes based on the types of consumer who use them. consumer products and industrial product. Our groups choose a Hyundai Getz as our product. Level of product and services The most basic level is the core customer value. At the second level. but as strong as possible for durability and safety. It shows that Getz has a good quality of production. For example. brands. There are several types of consumer products such as shopping products. For example. specialty products. design. product planners must turn the customer value into an actual product. Finally. when customer buying Hyundai Getz. use or consumption that might satisfy a want or need. they are not only buying the car. convenience products and 6 . It is no surprise that GETZ qualifies for four-star rating in independent crash test carried out by the Euro-NCAP organization. design.PRODUCT: HYUNDAI GETZ What is a product? Product is anything that can be offered to a market for attention. acquisition. warranties and delivery. Consumer products are product and services bought by final consumers that can satisfy their needs. The consumer will found out what is the buyer really buying? When designing a product. problem-solving benefits of the product or services that consumers seek. The producers need to develop product and services features. but they also buying an affordability and comfortable of using this car. a quality level. when customer buys the Hyundai Getz. product planners must build an augmented product by giving additional services and benefits to the customers provided by the manufacturer which come along with the product. Getz is a car produced by Hyundai and the structure has to be as light as possible for good fuel economy. Its name. For example. The additional services that can attract customers to purchase the product such as finance schemes. a brand name and packaging. Hyundai will develop more their product based on customer needs. marketers must first define the core. Buyers usually do not compare specialty products. Lastly. Hyundai buy steel. Hyundai Company produces a car which is environment friendly.unsought products. 7 . Business services include maintenance and repairs services. The material and parts is basic product that will be transformed entirely into something else. A product can be varying in features. accessory equipment includes portable factory equipment and tool (hand tools. Installation consists of major purchases such as buildings and fixed equipment. Hyundai defines quality this way´ we will ceaselessly introduce world-class products of the best quality to overcome the difficult market environment and turn it into an opportunity. They invest only the time needed to reach dealers carrying the wanted products. It is intangible product used by firms. Besides is industrial product. Hyundai Getz is under the specialty products because it is for the consumers who willing to make a special purchase effort. lift trucks) and office equipment (computer. Features are a competitive tool for differentiating the company¶s product from competitors¶ products. Another group is capital items which are industrial products that lead in the buyer¶s production or operations including installations and accessory equipment. ³ Product features. while modestly listening to the voice of customer. fax machines. It is product purchased by the individuals and organizations for further processing or for the use in conducting a business. Product and Service Decision a)Individual Product and Service Decision i) Product and Service Attributes Product quality. There are three groups of industrial products and services include materials and parts. iron and etc to produce car. It is about the characteristics of a product or service that bear on its ability stated or implied customer need. Similarly. While. cotton. For example. capital items and supplies and services. and business advisory services. the final group of industrial products is supplies and services. It is also does not enter the finished product at all which they are items that help the operation. Product quality is one of the marketer¶s major positioning tools. Hyundai needs all these equipment for their production process. desks). it can attract customer to buy the product. Unlike style. And lastly. the car has designed as per the contemporary requirement of the consumers.Product style and design. Consumers view a brand as an important part of a product and branding can add value to a product. are sold to the same customer groups. These model variants are GLE. Hyundai Getz cars come in four exclusive model variants. Santa Fe. Just like Hyundai Getz. Design is the larger concept than style. are marketed through the same types of outlets. term. For example. warranty. ii) Branding Brand is a name. Tucson. which can be minor or a major part of the total offering. Product support services This is the services given after the customer has purchased the product. A company¶s usually includes some support services. Hyundai make design based on what customer respond on their want and needs. after-sale services. Starex and etc. sign. design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors. design goes to the very heart of the product. GLS and GLX. Some companies manage very complex product portfolios. This is another way to attract customer for purchase our product. Sonata. product designer should think less about product attributes and technical specifications and more about how customer will use and benefit from the product. symbol. After made research.000km but this service is for the first customers. product delivery and etc. Thus. Hyundai produce several types of car such as Getz. Not only the interiors are so roomy and luxury but also the exteriors are too impressive and elegant. iii) b) Product Line Decisions Product line is a group of products that are closely related because they function in a similar manner. GVS. Second service is free services on the 5000 km. c) Product Mix Decision Product mix is the set of all product lines and items that a particular seller offers for sale. 8 . first services where customers can get free services on the first 1000 km. The third service. the customer services call the customers every 2 month to know about the customer¶s satisfaction about the Hyundai Getz. customer can get 5 years warranty or get free services on 30. Hyundai provide 4 services. With branding also. Style simply describes the appearance of a product. or fall within given price ranges. For example. growth. This happen because there is another product which is more attractive than before and consumer tend to buy a new product. sales are zero because the Hyundai Getz is still in process and the company¶s investment costs mount. It involves five distinct stages that is product development.Product Life Cycle Strategies Product life cycle (PLC) is the course of a product¶s sales and profits over its lifetime. Hyundai Getz is accepted by the market and customers buy it because it is suitable for family-friendly compact car. a) Product development begins when the Hyundai Company wants to finds and develops a new-product idea. c) Growth is a period of rapid market acceptances and increasing profits. 9 . d) Maturity is a period of slowdown in sales growth because the Hyundai Getz has achieved acceptance by most potential buyers. e) Decline is the period when sales drop down and profits drop. Profits level off or decline because of increased marketing outlays to defend the product from other competitors. maturity and decline. During this product development. b) Introduction is a period of slow sales growth as Hyundai Getz introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. During this stage. introduction. For example. In this type of pricing strategies the Hyundai Motor company offering just the right combination of quality and good service at the fair price. In other words. Price is the only elements in the marketing mix that produce revenue while all other elements represent costs. 3. Effective. For example.First type of value- based pricing is the good-value pricing. like other marketing mix decisions must start with the customer value. To increase the pricing power the Hyundai Motor company attach value-added features to differentiate their offers and thus support higher price than cutting prices to match the competitors.888. some car buyers consider the Hyundai Getz SE Limited Edition 2009 a real value. In late-2008. When customer buy a product. Factors To Consider When Setting Prices i) Customer Perceptions of Value Pricing decisions. The price of this new version of car is higher than the old one. Hyundai Motor company use the value-based pricing which means they setting price based on the buyers¶ perceptions of value rather than on the seller cost.PRICE Price is the amount of money charged for a product or service. Price is also one of the most flexible marketing mix elements. The company first assesses customer needs and value perceptions. In other cases. 10 .89 lakh. even at an eye-popping price of RM63. a fully electric version of the car was introduced in New Zealand and Australia. The second type of value-based pricing is the value-added pricing. good-value pricing has involved redesigning existing brands to offer more quality for a given price or the same quality for less. In this case. The new car has been priced at around Rs. The targeted value and price from customer will drive decisions about what costs can be incurred and resulting the product design. they exchange something of the value in other to get something of value. customer-oriented pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures this value. To meet the tougher economics times and more frugal consumer spending habits the Getz car was recently updated in the Indian market as the company launched the new Hyundai Getz Prime. price is the sum of all values that customers give up in order to gain the benefits of having or using a product. For example.ii) Other Internal and External Considerations Affecting Price Decisions Other internal factors that influence pricing decisions include the Hyundai Company overall strategy. mix. Lastly. If the company is selected its target market and positioning carefully. when Hyundai develop its Getz brand to compete with Perodua Myvi. the external factors include economic conditions. the pricing is typically handled by divisional or product line managers. then its marketing mix strategy. If a Perodua company slashes its prices by 15percent. Price is only one element of the company¶s broader marketing strategy. and interest rates affect pricing decisions because they affect both consumer perceptions of the product¶s price and value and the cost of producing a product. Perodua. will be fairly straightforward. Hyundai company is a large companies. Economic factors such as boom or recession. finance managers and accounts. Others who have an influence on pricing include sales managers. For example. and organization for pricing. which the market consists of a few sellers who are highly sensitive to the other¶s pricing and marketing strategies. Some companies position their product on prices and then tailor other marketing mix decisions to the prices they want to charge. Another factor is market and demand which include pricing in different types of markets. Honda and etc. this required charging a high price. objectives. Hyundai company fall under oligopolistic competition. Economic can have a strong impact on the firm¶s pricing strategies. The seller¶s pricing freedom varies with different types of markets. including price. It means that. Next factor is organizational considerations. inflation. While top management sets the pricing objectives and policies. Other companies deemphasize price and use other marketing mix tools to create non-price positions. and it often approves the prices proposed by lower-level management or salespeople. it will affect Hyundai Company sale. Each companies handle pricing in a variety of ways. buyers will quickly change to this company and Hyundai must respond by lowering their prices or increasing their services. production managers. Hyundai company is compete with other car company such as Proton. if the economic is unstable. 11 . the government and social concerns. Management must decide who within the company should set the prices. It is the pricing of optional or accessory products along with their main product. In this type of pricing. burglar alarm and rear spoiler. the Getz car has four different type which are Manual-solid. Thus. where the difference in prices is not based on the differences in costs. Price-Adjustment Strategies Companies usually adjust their basic prices to account for various customer differences and changing situations. First is segmented pricing which the company will sell their product at two or more prices. The price steps should take into account cost differences between the products in the line. Each of this car have a different price because the company should account for differences in customer perceptions of the value of different features. This type of pricing always has been use in all automobile company because they usually develop product line rather than single product. Hyundai Motor company use product-form pricing which the different versions of the Getz car are priced differently but not according to differences in their costs. single air bag. Manual-metallic and Auto-metallic. For example. Hyundai 12 . Hyundai Getz 1. Hyundai Getz 1. the Getz car price is increase when the car is included with the accessories packages such as first aid kit. In the mix pricing strategies. In the product line pricing. number plate base. management must decide on the price steps to set between the various products in a line. In this case. Second is the promotional pricing which can be an effective means of generating sales for most companies.4 manual have a different prices according to their version. the most advertised prices represent wellequipped cars. the Hyundai Motor Company using the product line pricing. In this type of pricing the Hyundai Motor Company must decide which items to include in the base price and which offer as options. For example. Second. the company will looks for a set of prices that maximizes the profits on the total product mix. this company uses the special-event pricing in certain seasons to draw more customers.. the Hyundai Motor Company also uses the optional-product pricing for the Getz car. For example.Product Mix Pricing Strategies The strategy for setting a product¶s price often has to be changed when the product is part of product mix. Auto-solid. In this type of pricing. Hyundai Getz SE Limited Edition 2009. Our group had examined a several price adjustment strategies that use by the Hyundai Motor Company for Getz car.3 Auto and Hyundai Getz 1. Same as other company Hyundai Motor Company also adjusted their product price below the list price to create buying excitement and urgency.For example.4 DOHC SE NEW 09. the price of Hyundai Getz Prime 1. The price that the company should charge in a specific country depends on many factors including economic conditions.Motor Company reduced the price of Hyundai Getz SE (A) LIMITED EDITION 2009 for the World Cup FIFA Promo in May 2010. laws and regulations and development of the wholesaling and retailing system. competitive situations. 13 . For example. For the Hyundai Motor Company that market their product internationally. the company must decide what price to charge in the different countries in which they operate.3 GVS are different in Malaysia. India.Third is the international pricing where the company will setting prices for customers located in different parts of the country or world. Japan and South Korea. marketers need to understand how communication works. For HYUNDAI company . outdoor. building up a good corporate image and handling or heading off unfavorable rumors. and other form. Media: the communication channel through which the message moves from sender to receiver. international airport. Message: the set of symbols that the HYUNDAI COMPANY transmits. A View Of The Communication Process To communicate effectively. print. It has high quality and attractive price. it includes HYUNDAI GETZ REMOTE CONTROL. internet. ROAD SIDE ASSISTANCE PROGRAM with the aim of providing emergency assistance services round the clock to ensure a pleasurable and uninterrupted journey virtually anywhere. and events . or services by an identified sponsor. for example. Communication involves nine elements: 1. HYUNDAI COMPANY. newspapers. In this case HYUNDAI COMPANY selected the newspaper. 4.PROMOTION The Promotion Mix Advertising-is any paid form of non-personal presentation and promotion of ideas. The sender here is 14 . display at suitable place. they do the public relation likes. Encoding: the process of putting thought into symbolic form. Hyundai Motor Company makes the advertising by internet. 2. Sender: the party sending the message to another party. 3. The program is designed to enhance the customer ownership experience and ensure that customer get immediate and hassle free service in the event of any car breakdown.For the sales promotion of GETZ from HYUNDAI. Public relation-is building good relation with the company¶s various public by obtaining favorable publicity. goods. Sales promotion-is short term incentive to encourage the purchase or sale of a product or services . stories. Advertising includes broadcast. HYUNDAI COMPANY advertising agency assembles words and illustration into an advertisement that will convey the intended message. 5. Feedback: the part of receiver response communicated back to the sender. That is a consumer read the HYUNDAI COMPANY copier ad and interprets the words and illustration it contains. The messages consist of words and other symbol that are familiar to the receiver. That is the business customer who read the HYUNDAI COMPANY copier ads. the message is likely to be. That is the consumer is distracted while reading the magazine and misses the HYUNDAI COMPANY product. such as the consumer is more aware of the attributes of HYUNDAI COMPANY copiers. visits the HYUNDAI COMPANY WEB SITE for more information. 15 . 7. 8. 9. Steps In Developing Effective Communication 1. Any hundreds of possible responses. For the message to be effective. Noise: the unplanned static or distortion during the communication process. Response: the reaction of the receiver after being exposed to the messages . actually buys an HYUNDAI COMPANY copier or does nothing. 6. which result in the receiver¶s getting a different message than the sender one. or consumers write or call HYUNDAI COMPANY praising or critizing the HYUNDAI company product. Decoding: the process by which the receiver assigns meaning to the symbol encoded by the sender. the HYUNDAI COMPANY µs encoding process must mesh with the receiver¶s decoding process. Identify the target audiences The target audiences of HYUNDAI COMPANY will heavily affect communicator¶s decisions on what will be said . The more the HYUNDAI COMPANY¶s field of experiences overlaps with that of the receiver. Marketing communicator may not always share their consumer¶s field experiences . and who will said it. where it will be said. how it will be said. The HYUNDAI COMPANY shows that consumer are struck by and remember the ad. Receiver: The party receiving the message sent by another party. and after sale service. that is directed to the customer¶s sense of what is µright¶ and µproper¶.2. Sales people might call or write to selected customer . 3. Designing a message y Message content-consist of three types of appeal. inviting them tom visit the dealership for a special showing. the HYUNDAI COMPANY create knowledge by informing potential buyers of the GETZ¶s high quality and its many innovative features. y Liking-assuming the consumer know about this product. Second emotional appeal. y Purchase. rebate or premium.When HYUNDAI COMPANY first introduce its 500 cars model. it used GETZ to create initial awareness and curiosity. y Message structure-HYUNDAI COMPANY must also decide how to handle three z or leave it to the audience. HYUNDAI COMPANY wanted to move them through successively stronger stages of feeling toward the car. y Knowledge ±later. advertising. value for the price. HYUNDAI COMPANY advocates for humorous message claim that they attract more attention and create more liking and belief in the sponsor. The second is whether to present the strongest arguments first or last. dealer tells buyers about option.HYUNDAI COMPANY use a combination of the promotion mix tools to create positive feelings and conviction for example. Third is moral appeal. It is better if NYUNDAI COMPANY asking questions and letting buyers come to their own conclusion. Presenting them first 16 . HYUNDAI COMPANY informs customer about the quality of GETZ and why GETZ is the best choice. but not its name.HYUNDAI COMPANY must lead the customer to take the final step. that is try to stir up either negative or positive emotion that can motivate purchase. First. y Conviction. Determining the communication objective y Awareness. Actions might include offering special promotional price. For example HYUNDAI COMPANY do the headline. how do you feel about it? Once potential buyers knew about GETZ. rational appeal that is relate to the audienceµs self-interest. The company shows the car. and voice. and it has to watch color. If the message is carried out over the radio. copy. Choosing media HYUNDAI COMPANY selects both of the channels of communication. magazine. the company must be careful when selecting celebrities to represent their brands. 17 . Selecting the message sources The message¶s impact on the target audience is also affected by how the audience views the communicator. on the phone. y Non-personal communication : They include major media. For example customer service contacts the buyers. Thus. This channel is effective because it allow for personal addressing and feedback. atmospheres. y Personal communication channel : HYUNDAI COMPANY communicates face to face. and events. y Message format-The communicator has to decide on the headline. Communication first flow from television. the communicator has to choose words. The third is whether to present one sided argument or two sided argument. illustration and color. Thus. size. 5. Non-personal communication affects buyer directly. This suggests that mass communicators should aim their message directly at opinion leader. 4.get strong attention but may lead to an anticlimactic ending. HYUNDAI COMPANY carried the message through newspapers. letting them carry the message to other. and expressions. but. Picking the wrong spokesperson can result embarrassment and a tarnished image. That is HYUNDAI COMPANY only mention about the GETZ strength or touting the GETZ strength while also admitting its shortcomings. sounds. opinion leader steps between the mass media and their audience and carry message to people who are less exposed to media. Message delivered by highly credible sources are more persuasive. This personal communication is directly controlled by the HYUNDAI COMPANY. through mail or e-mail. and other mass media to opinion leaders and then these from opinion leader to others. task. Setting The Total Promotion Budget How does HYUNDAI COMPANY decide on its promotion budget? . This involve asking the target audience members whether they remember the message. the company needs to improve its promotion programs to take of its power to create customer satisfaction. The feedback from customer is very important to company suggest although promotion is creating awareness. What specific advertising message and media schedule cost? HYUNDAI COMPANY management must consider such question. 18 . This budgeting method entails (1) defining specific promotion objective. This company uses the objective-and-task method: Objective. what point they recall. Often. For example. the communicator must research its effect on the target audience. even though they are hard to answer. and their past and present attitudes toward the product and the company. But it is also the most difficult method to use. how many times they saw it.method HYUNDAI COMPANY sets its promotion budget based on what it wants to accomplish with promotion. The communicator would also like to measure behavior resulting from the message. and (3) estimating the cost is the proposed promotion budget. The advantage of the objective-and-task method is that it forces management to spell out its assumptions about the relationship between dollars spent and the promotion result. (2) determining the task needed to achieve these objective. it is hard to figure out which specific task will achieve stated objective. If not. Collecting feedback After sending the message. Feedback on marketing communication may suggest changes in the promotion program or in the product offer itself. how they feel about the message. HYUNDAI COMPANY wants 98 percent awareness for its car model during this six-month introductory period.6. HYUNDAI COMPANY uses Newspaper and television advertising to inform area consumer about the products. Using a pull strategy. It can reach many prospects who avoid salespeople and advertisement. Yet a wee-though-out public relation campaign used with other promotion mix elements can be very effective and economical. But. HYUNDAI COMPANY has choose pull promotion. offer strong incentive to purchase. For this company. HYUNDAI COMPANY directs its marketing activities toward final consumers to induce them to buy the product. It can be very costly. and the audience does not feel that it has to pay attention or respond. and it enable the HYUNDAI COMPANY to repeat a message many times. sound. and color. They attract consumer attention. Promotion Mix Strategies. Public relation-It is very believable. It is because consumers tend to view advertised through the artful use of visual. Sales promotion-includes a wide assortment of tools like coupons. and premiums. The pull strategy is effective. print. It also can carry on only a one-way-communication with the audience. 19 . It also invited and reward quick response to HYUNDAI COMPANY. Advertising can trigger quick sales to company.Shaping The Overall Promotion Mix The Nature of Each Promotion Tool Advertising-can reach masses of geographically dispersed buyers at a low cost per exposure. consumers will then demand the product from channel members. advertising also has some shortcomings. who will in turn demand it from company. it cannot be as directly persuasive as can company salespeople. TV is the place to reach a mass audience. distributors and ultimately customers who partner with each other to improve the performance of the entire system. Upstream from the company is the set of firms that supply the raw materials. service and spare parts) dealers. Like Hyundai. Hyundai-Sime Darby Motors Sdn Bhd (formerly known as Hyundai-Berjaya Sdn Bhd) is the franchise holder of Hyundai vehicles and the sole distributor of Hyundai completely-built-up (CBU) vehicles. This supply chain consists of upstream and downstream partners.PLACE We now arrive at the third marketing mix tool ± place. but also with key suppliers and resellers in the company¶s supply chain. suppliers. such as wholesalers and retailers. parts and service dealers has contributed to the increasing confidence by Malaysian motorists on INOKOM and imported Hyundai vehicles. company and channel goals. Firms rarely work alone in creating value for customers and building profitable customer relationships. 82 authorised service dealers and 18 parts stockists in addition to the three own 3S centres located throughout the country. finances and expertise needed to create a product or service. the impressive network of sales. There are 16 3S (sales. components. Channel Behaviour and Organization Distribution channels are complex behavioural systems in which people and companies interact to accomplish individual. Meanwhile downstream refer to marketing channel partners. A marketing channel consists 20 . most are only a single link in a larger supply chain and marketing channel. in making and marketing its Getz to make it known all around the world. as well as the three models manufactured in collaboration with Hyundai Motor Company by INOKOM Corporation Sdn Bhd which is based in Kulim. parts. information. Instead. Kedah. an individual firm¶s success depends not only how well it performs but also on how well its entire marketing channel competes with competitors¶ channels. A value delivery network is made up of the company. Supply Chains and the Value Delivery Network Producing a product or service and making it available to buyers requires building relationships not just with customers. Currently. form a vital connection between the firm and its customers. As such. and the services after the sale. The success of discount retailing shows that consumers will often accept lower services levels in exchange for lower prices. producers struggle between what is ideal and what is practical. Each channel member depends on the others. In each segment. telemarketing and the internet and reaches consumer through retailers. catalogs and others. In fact. 21 . 1. in which a single sets up two or more marketing channels to reach one or more customer segments. channel analysis and decision making should be more purposeful. Hyundai sells directly to consumer using direct-mail catalogs. Each Hyundai dealer also depends on other dealer to provide good sales and service that will uphold the brand¶s reputation. 2. A Hyundai dealer depends on Hyundai to design cars that meet consumer needs. internet. Setting Channel Objectives Hyundai stated their marketing channel objectives in terms of targeted levels of customer service. the company wants to minimize the total channel cost of meeting customer service requirements.of firms that have partnered for their common good. Hyundai provided the nearby locations that easy for consumers to look their cars. For maximum effectiveness. To meet the consumer need and want. In turn Hyundai depends on the dealer to attract consumers. Hyundai has adopted multichannel distribution systems. persuade them to buy Hyundai cars. Channel Design Decisions In designing marketing channels. Besides they provided all type of communication to consumer know about the latest promotions. The company must balance consumer needs not only against the feasibility and costs of meeting these needs but also against customer price preferences. Usually. like mail. a company can identify several segments wanting different levels of service. The company should decide which segments to serve and the best channels to use each case. the success of individual Hyundai dealers depends on how well the entire Hyundai marketing channel competes with the channels of other auto manufacturers. Analyzing Consumer Needs Designing the marketing channel starts with finding out what target consumers want from the channel. Evaluating the Major Alternatives Each alternative should be evaluated against economic. environmental factors such as economic conditions and legal constrains may affect channel objective and design. Finally. Hyundai give them exclusive distribution. which occurs when producers use more than one.The company¶s channel objectives are also influenced by the nature of the company. By using selective distribution. Using intermediaries usually means giving them some control over the marketing of the 22 . its product. y Number of Marketing Intermediaries Hyundai use selective distribution strategies. y Responsibilities of Channel Members Hyundai and its intermediaries have some agree on the terms and the responsibilities of each channel member. Identifying Major Alternatives y Types of Intermediaries Hyundai has identified the type of channel members available to carry out its channel work. territorial rights and specific service to be performed by each party. costs and profitability of different channel alternatives. product training and promotional support. condition of sale. but fewer than all. control and adaptive criteria. Using economic criteria. Hyundai must also consider control issues. they can develop good working relationships with selected channel members and expect a better than average selling effort. For example Hyundai¶s size and financial situation determine marketing functions it can handle itself and which it must give to intermediaries. Hyundai compares the likely sales. its marketing intermediaries. Mutual services and duties need to be spelled out carefully. 3. Hyundai should establish a list price and a fair set of discounts for intermediaries. good margins. Hyundai make some promotion in a depressed economy to distribute their goods in the most economical way. of the intermediaries who are willing to carry their products. its competitors and the environment. 4. They should agree on price policies. which find the distributors in the different region who will buy and carry the new line. They use the industrial distributors. Thus. In other market.product and some intermediaries take more control than others. consisting of many layers and large numbers of intermediaries. advertisement and etc. If the intermediaries are sales agents. 2. Managing and Motivating Channel Members Once selected. Channel Management Decisions 1. channel members must be continuously managed and motivated to do their best. Evaluating Channel Members Hyundai do regularly check channel member performance against standards such as sales quotas. In some markets. In managing its channels. 3. Hyundai will want to evaluate the number of cars that they can sell. a channel involving long-term commitments should be greatly superior on economic and control grounds. Sometimes customs or government regulation can greatly restrict how Hyundai can distribute products in global markets. It will want to evaluate each channel member¶s years in business. Designing International Distribution Channels Hyundai face many additional complexities in designing their channels. and services to the customer. Hyundai will give free promotion to help the distributors like roadshow. Hyundai determine what characteristics distinguish the better one. growth and profit record. 5. Hyundai has recognized and reward intermediaries who are performing 23 . cooperativeness and reputation. Select Channel Members When selecting intermediaries. the distribution system is complex and hard to penetrate. customer delivery time. Each country has its own unique distribution system that has evolved over time and changes very slowly. yet Hyundai wants to keep the channel flexible so that it can adapt to environmental changes. average inventory levels. Hyundai must apply adaptive criteria. other lines carried. Hyundai convince distributors that they can succeed better by working together as a part of cohesive value delivery system. Channels often involve long-term commitments. Finally. distribution systems in developing country may be scattered and inefficient. Major Logistics Functions Given a set of logistics objectives. selling a product is sometimes easier than getting it to customers. Hyundai is ready to design a logistics system that will minimize the cost of attaining these objectives. 2. Nature and Importance of Marketing Logistics Marketing logistics involves planning. 3. handle and move their products so that they are available to customers in the right assortments. Hyundai first research the importance of various distribution services to customers and then set desired service levels for each segment. Goals of the Logistics System The goal of marketing logistics is to provide a targeted level of customer service at the least cost. implementing and controlling the physical flow of goods. ensuring that products are available when customers are ready to buy them.Johor Bharu and Kulim. Those who perform poorly will be assisted or as a last resort. The explosion in product variety has created a need for improved logistic management and improvements in information technology have created opportunities for major gains in the distribution efficiency.Kedah. Pelentong. at the right time and in the right time.well and adding good value for consumers. Their stockyark located at Bukit Jelutong. Marketing Logistics and Supply Chain Management In the global marketplace. 24 . The storage function overcomes differences in needed quantities and timing. Hyundai put greater emphasis on logistics because want gain a powerful advantage by using improved logistics to give customers better service or lower prices and can yield tremendous cost savings to both company and its customers. Shah Alam. Physical distribution and logistics effectiveness has a major impact on both customer satisfaction and company costs. The warehouses are large and multi-storeyed warehouses with dramatic changes in technology recent years. Hyundai decide on the best way to store. Hyundai store their car in the warehousing while they wait to be sold. replaced. services and related information from points of origin to points of consumption to meet customer requirements at a profit. 1. The goal of integrated supply chain management is to harmonize all of the company¶s logistics decisions. Sime Darby Motor is the third party that does the marketing promotion for Hyundai¶s car in the Malaysia. Responsibility for various logistics activities is assigned to many different departments. The members of a marketing channel are linked closely in creating customer value and building customer relationship. Each function tries to optimize its own logistics performance without regard for the activities of other functions. Hyundai also work with other channel partners to improve whole channel distribution. 25 .4. Integrated Logistics Management Hyundai is adopted the concept of integrated logistics management. Hyundai¶s car is a company under Sime Darby Motor in Malaysia. both inside the company and among all the marketing channel organizations. This concept recognizes that providing better customer services and trimming distribution costs require teamwork. The third party logistics is an independent logistics provider that performs any or all of the functions required to get their client¶s product to market. i. Global Suppliers is committed to providing the best quality collision parts at the lowest possible prices for all Hyundai car models. the seller will consult the suppliers.MARKETING ENVIRONMENT CHALLENGES FACED BY HYUNDAI GETZ Marketing environment consists of the actors and forces outside marketing that affect marketing management¶s ability to build and maintain successful relationships with target customers. objectives. Microenvironment sees business opportunities through the group of goods or products needed by customers. customer markets and public. Suppliers Suppliers are the providers of the resources needed by the company to produce its goods and services. The marketing environment is made up of Microenvironment and Macro-environment. research and development and purchasing. the top management sets the company¶s mission. supply of raw materials. Secondly. It 26 . For example. The marketing environment offers both opportunities and threats. equipment and final goods are satisfactory. ii. competitors. goals and broad strategies. marketing intermediaries. For instance. Any development related with suppliers will affect marketing. hiring and promoting the most specialized and most technologically advanced labor force they can afford and continually striving to produce the best products and services they can at the lowest possible cost. Hyundai has set the goals includes making employees responsible for their decisions: this empowers them and fosters teamwork. accounting. Company Company is the internal environment of the company that is marketing the product. When a problem occurs in the business. Microenvironment Microenvironment consists of the forces closest to the company that plays an important role on the company¶s ability to fulfill the customers¶ needs. For example. A supplier will make sure that process used in the production. suppliers. The elements are: company. These interrelated groups form the internal environment. The environment continues to change rapidly. It includes the different departments like finance. and Chevrolet. Ford. in addition to premium brands such as Lexus. Demography Demography is the study of human population in terms of size. It explores surrounding environment which includes marketing for domestic and international economies. economy. Macroenvironment is an uncontrollable environment where marketers have no or little influence. iii. Genesis. The demography environment is of major interest to marketers because it involves people. For example.also relates with the increase and decrease in prices of an input used or quality of the goods itself. origin. density. age. race. technology. for passenger Hyundai have Equus. Marketers must keep track of the market population profile. political and culture. the residual value topped popular competitive models from Toyota. and people make up markets. demography. Competitors Competitors are other organizations that are competing with the company for the same consumers with the intention of fulfilling the same needs and wants. age group and education level. While for recreational Hyundai provide Veracruz/ix55. 27 . Sonata and Getz. Marketers will depend on the demographic factors to improve the products market whereby these factors will influences buying behavior. which includes family size. The elements are natural resources. The competitive environment includes all organizations that could possibly satisfy the needs and desires of the organization¶s target market. For example. Macroenvironment Macroenvironment factors are bigger societal forces that affect the microenvironment of a company. BMW and Mercedes. Marketers need to be aware of the type of competitive environment in which they are operating. Nissan. Azera. This will greatly influences the number and types of competitors they must be concerned with. Santa Fe and Tucson/ix35. occupation and other statistics. i. Macroenvironment covers overall business opportunities. location. polysilicon and other resources in their production. iii. Scientific knowledge. research. Technology Marketers use technology to improve the quality of products and services provided by their organizations nowadays. and innovations all result in new or improved goods and services. These materials consist of mineral extracts and infrastructure. Advances in manufacturing technology. Natural Resources Natural resources that are needed as inputs by marketers or that are affected by marketing activities include raw materials used as inputs. Additionally. In response to increasingly stringent regulations on exhaust emissions. Hyundai needs oil and gas. 28 . the Center is working on development of powertrains for hybrid electric vehicles. lighten vehicle weight. For example. lower friction and improve driving power. Technological developments provide important information and opportunities to meet their customers¶ needs. Depletion of natural resources will distort the firms¶ production and marketing process. For example. coal and mineral resources. the Powertrain Centre is stepping up its efforts to develop technologies that raise fuel efficiency. distribution.ii. which are essential elements in the production process. pricing techniques and marketing research will help organizations better serve to their customers. with modern technology Hyundai produce Environmentally-friendly exhaust systems. fuel. 4cc DOHC Engine 4 Cylinder 16V -Special Edition -Full Leather seat -Leather Steering -Side mirror LED light -Full Body Kit -CD Player with MP3 -4 Power Windows y The interior with leather seat trim includes yellow colour makes this Gets SE very special. -Electronic Power Steering -Brake Lock -RS Airbag ABS + EBD -4 STAR ~ NCAP -15 Alloy Wheels -5 Years Warranty or 300. -1.Adjustable steering y The rear part.4 litres for the festive season promotion which is the new Hyundai Getz SE Special Limited Edition.Sport rims. with black sporty bumper with reflectors and the Limited Edition SE badge and the new spoiler design.000km -Fuel tank capacity 45(litre) -Low fuel consumption km/l -White Colour Only 29 . y Accessories: CD Player.Leather seats.FUTURE PLANNING YEAR 2009 Hyundai in Malaysia has launched a new version of Hyundai Getz 1.Alarm.Airbag passenger. This new stylish and beautiful Getz SE is only limited to 300 units only.Central lock.Airbag driver. 99% per year.000 with low interest rate from 1. y The price of the new Hyundai Getz SE is around RM51. 30 . YEAR 2011 y For this year Hyundai has changed its motto from µDrive Your Way¶ to µNew Thinking New Possibility¶ for increase convince towards Hyundai¶s products. The new wing LED Mirror fitted makes this Hyundai Getz SE a perfect compact city car. they will replace it with i25 and i20.y New sport rims 15 chrome design is simply beautiful. y For Hyundai Getz. Hyundai Getz competition includes the Maruti Suzuki Swift.Denmark¶s Best Seller Of 2003 award. y Budget car champion on the UK motoring programme. The Getz 1.This brand success is a result of continuous and aggressive innovations that have been implemented on behalf of their customers.Competition among automobile companies throughout the world has been fierce.Getz car are sold in most of the world except the U. or Canada.Winner of the Scottish Small Car of the Year award in 2003.Numerous sections of the world media have praised the Getz car high quality. y The Getz 1.5 CRDi was Portuguese µCar of the Year¶ for 2004 31 . 5th Gear in 2003.Budget car champion on the UK motoring programme in 2003. y Denmark¶s Best Seller Of 2003 award. Chevrolet UV-A and the recently launched Renault Logan.Winner of the UK What Car? for Magazine Budget Car of the Year in 2003.Hyundai Getz is growing into a brand appreciated by its customers because it is such a good quality product.5 CRDi was Portuguese µCar of the Year¶ for 2004. y Winner of the UK What Car? Magazine Budget Car of the Year in 2003.Because of this reason.S.For that reason their brand is famously known by the car buyers all over the world. y Winner of the Scottish Small Car of the Year award in 2003.This company share a passion for understanding and satisfying the needs of their customers in well-defined target markets.Customer satisfaction is their number one value.CONCLUSION In conclusion.Improvements in customer satisfaction and a continuous sales growth demonstrates Getz ability to increase it market share.This supermini car also has won the following global awards since its launch:Winner of Australia¶s Best Small Car in 2003 and 2005. AWARDS y Winner of Australia¶s Best Small Car in 2003 and 2005.Hyundai Motor company is the successful international company that strongly customer focused and heavily commited to marketing. html (3) www.REFERENCES REFERENCES (1) worldwide.com.Cached (5) www.hyundaicorp.my/used-cars/make/Hyundai/model/Getz/ (6) Principle of marketing by Philip kotler/ gary Armstrong 7)Assistant manager from hyundai cor.com/eng/company/current.com (2) www.my/model.hyundai.carlist. Branch Shah Alam APPENDIX 32 .com/company/hyundai-motor-india-ltd .hyundai.linkedin.asp (4) www. Hyundai Korea Modified Hyundai / INOKOM GETZ body kit Hyundai GETZ GLS 33 . Hyundai GETZ GLX Hyundai GETZ GLE 34 . Internal Design Hyundai Motor Company in America 35 . 36 .