Task 4

Task 4

4.1 Marketing mix for two different segments:

The amount spent on advertising and promotion by the US corporations collectively is more than the GDP of several nations such as Sweden, Singapore and Switzerland. This might strike as a surprise that even individual companies like P & G spend multi billion dollars on these activities known as the marketing mix plan which is of paramount importance (Mantrala 2002).

About Company

ABC Company is a third party logistics firm. It provides the services of freight forwarding, compliance consulting and information services and also the knowledge and information to be able to arrange the movement through the logistics services ABC provides. The strong buying power of ABC puts it in the position of advantage with the shippers through which it can facilitate its clients with ease and comfort by not falling into the maze of logistics. It has an edge with its real time logistics tracking device iradar which is an excellent tool when it comes to long distance freight forwarding.

Growth Plan

ABC with its plan of growth is now focusing on different products and entering into new markets with its existing products. Company has its core competencies in the sectors which it's working and has decided to leverage its core competencies by focusing on revising its current segmentation. There are numerous marketing strategies that are necessary to ensure a successful entrance into the new markets and catering the new segments. Company's first step towards this goal is to build awareness in its two segments of retail and wholesale of automotive parts. We are planning to go through traditional advertisements in leading industrial magazines and by participating in trade show events, at the same time providing exceptional services to the existing customers to have a positive buzz among the industry players.

Reason for segmentation:

ABC's other businesses due to the fall of economy and lessened buying power of the people are not at large these days and therefore next year it intends to work on the automotive, as its already in the business and has got expertise over it specially in China and North America. Though the slowing down of economy has damaged the other businesses of the company the automotive industry has continued to grow as the buying new vehicles are out of question and repairing is on heavy roll. And it's not that only now when the economy is not growing much the automotive industry is going up, it also had a substantial growth when the new car purchases were increasing in the boom sessions. This will also allow ABC to hedge its risk of future damages coming from the other businesses it's involved in.

The segments:

ABC will now focus on auto parts of aftermarket store and auto parts wholesalers. It did keep other options under consideration as well like focusing on the original equipment manufacturers but research on that showed that will not be a fruitful investment.

The two main segments on the basis of profits on which ABC will now focus are:

Auto parts retailers:

The ...