Q.'X Ltd.' is engaged in the manufacturing of cars. The company surveyed the market and found that customers need a car which runs on eco-friendly fuel instead of petrol or diesel. Keeping the needs of customers as well as social, ethical and ecological aspects of marketing in mind, the company launched a new model of car that runs on bio-diesel. The launch event was covered by the top news channels and newspapers. This was done to disseminate information about the car and build goodwill of the business. 'X Ltd.' understands that it is imperative to manage public opinion and company's relations with the public on a regular basis.
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Start your 14-day free trial to unlock the full solution →X Ltd. exemplifies the Societal Marketing Concept by launching an eco-friendly car, using Public Relations for its launch, and can further leverage Advertising and Sales Promotion to achieve its objectives.
Marketing strategy involves a company's plan to reach target customers and turn them into buyers of their products or services. It encompasses understanding customer needs, developing suitable products, pricing them appropriately, making them available, and communicating their value. The case of X Ltd. highlights several crucial aspects of a well-rounded marketing approach, particularly focusing on a philosophy that extends beyond immediate sales to broader societal well-being, and the strategic use of communication tools.
(a) Marketing Philosophy Involved
The marketing philosophy involved in this case is the Societal Marketing Concept.
This concept holds that an organisation should identify the needs, wants, and interests of target markets and then deliver the desired satisfactions more effectively and efficiently than competitors, in a way that maintains or improves the consumer's and society's well-being. It is an extension of the Marketing Concept, which focuses solely on customer satisfaction, but adds the crucial dimension of societal welfare.
X Ltd. demonstrates this philosophy by:
- Identifying Customer Needs: The company surveyed the market and found a demand for eco-friendly cars, indicating a customer-centric approach.
- Considering Broader Aspects: It explicitly kept "social, ethical and ecological aspects of marketing" in mind. This shows a commitment beyond just profit or immediate customer satisfaction, acknowledging the environmental impact of its products.
- Developing a Responsible Product: Launching a car that runs on bio-diesel directly addresses both customer demand for eco-friendly options and the ecological concerns of society, such as reducing pollution and reliance on fossil fuels.
The Societal Marketing Concept balances three considerations: customer wants, company profits, and society's long-term interests.
By integrating environmental responsibility with customer satisfaction, X Ltd. is not just selling a car; it is offering a solution that benefits both its customers and the larger society, aligning perfectly with the Societal Marketing Concept.
(b) Communication Tool Used
The communication tool used by X Ltd. was Public Relations.
Public Relations (PR) involves a variety of programmes designed to promote or protect a company's image or its individual products. Its primary objective is to build and maintain a positive image and goodwill between an organisation and its various publics (customers, employees, investors, media, government, and the general public).
In the given scenario:
- Media Coverage: The launch event being covered by "top news channels and newspapers" is a classic example of publicity, which is a major tool of public relations. This coverage is typically earned, not paid for directly like advertising.
- Disseminating Information and Building Goodwill: The stated purpose of this coverage – "to disseminate information about the car and build goodwill of the business" – directly aligns with the core objectives of public relations. It aims to inform the public about the new product and enhance the company's reputation as a responsible and innovative manufacturer.
- Managing Public Opinion: The company's understanding that "it is imperative to manage public opinion and company's relations with the public on a regular basis" further confirms the strategic use of public relations.
Unlike advertising, which is a paid form of communication, public relations often relies on generating positive media attention and managing perceptions through various non-paid or indirectly paid activities.
(c) Other Promotional Tools
Beyond Public Relations, X Ltd. can effectively use other promotional tools to achieve its objectives. Two such tools are:
- Advertising: Advertising is a paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. For a car manufacturer like X Ltd., advertising can be highly effective in reaching a large and diverse audience. …
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