Conroy S Acura

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Before CarMax, public image of stereo salesperson was extremely poor in the used car Industry and people were unhappy with their used car buying experiences. Consumers did not want to play games while shopping for used cars. They wanted to know the price of every component of the sales transaction such as the price of the car, the price of the extended service plan, the price of financing and accessories. Consumer did not want to drive all over town to find the car they wanted. They simply wanted a trustworthy car, not ‘someone else's lemon.'

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Case SynopsisThis case describes how Land Rover North America, Inc. (LRNA) has redesigned their dealerships and selling process with the objective of building and enhancing equity for its brand. Land Rover is a niche player in a very crowded and rapidly maturing product category. Competition is fierce and is dominated by large global competitors with extensive dealer networks who differentiate their products largely by size, features, and price. The company has relatively few dealerships and cannot afford the volume of advertising or promotion that its primary competitors can. The company must choose to depend upon positioning its product as a specialty brand, characterized by brand insistence on the part of its buyers.

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The car market’s response to asymmetric information is doing their research. While the car ads may not show how many miles a car can go per gallon of gasoline, a quick search on the internet can produce those results. There are many businesses dedicated for the sole purpose of reviewing and comparing products. Even before the internet, car buyers were able to talk to friends and neighbors and get recommendations from owners of a car they were interested in. There are many consumers that remain loyal to a certain company, that they feel is reputable, due to past their experiences with that company (Notte, 2014).

“Spot the trend, make the market”- led then to place high value on extensive market testing prior to launching new products.

This case review is entitled, Toyota Uses Advertising to Restore Trust. In 2008 Toyota became the top automobile manufacturer in the world. This was in result of setting the standard for quality and reliability for decades. The ‘Toyota Way’ manufacturing philosophy was create, which was the main factor in winning the top automobile reward. In 2009 and 2010 the company hit a huge snag that caused questions to arise about the quality of its products. The company had to recall several of its top models due to safety issues. Eventually the company was fined from the government for hiding safety defects from the consumers, which resulted in a $16.4 million loss for the company. The company was the brunt of many jokes; therefore, deciding to change its image in the public yes, the company it a major overhaul to their advertising (Pride & Ferrell, 2013, p. 624). Can Toyota rebuild the consumer opinion and secure its brand?

Marketing strategy has very much evolved over the decades. Initially in the early 20th century mass producers had little to no competition in their industries. It was a time when supply and demand was almost as simple as it sounds. The general masses would desire a product and that product would be delivered. An example of this was Ford’s Model T. During this time Americans were in love with cars and a larger percentage of the population could afford them. All Ford had to do was to produce the simple automobile and the cars sold on a large scale. There were few competitors, so the producers did not have much to compete against. This time in history

the company had to educate its target audience on the product’s benefits. If a mass market entry

The first computers origintaed for home use were only sold in kit form to technical enthusiasts who did their own assembly. At that time, the firm offering these kits would likely be in the ........... era.

What did we learn from BMW? The automobile market is divided into a number of “groups” or “segments.” Sub-Compact; Compact; Full-Size; Luxury, etc. These divisions are however, product based, not customer based. However, customers have, over time, “adopted” this segmentation scheme BMW in the luxury / performance segment. But wants to segment further based on “usage experience.” The Better Driver. Not product based, but customer / market based. Usage experience + “Value pricing” for the segment key to differentiating the product offering from Mercedes, Lexus & Infiniti Along with appropriate product and