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The Intro To Mercedes Benz Marketing Essay

Mercedes-Benz is a German automotive company ranked 12th on 'best-global-brands 2011" same get ranking it got the previous yr 2010, with current brand value of 27, 445million us dollars.

This company is a multinational section of the German manufacturer Daimler AG, and the brand can be used for luxury cars, buses, mentors, and trucks. Using its headquarter in Stuttgart, Baden-Württemberg, Germany. The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler's 1901 Mercedes and also to Karl Benz's 1886 Benz Patent Motorwagen, widely thought to be the first automobile. (http://en. wikipedia. org)

Mercedes-Benz firmly staked out its place atop the top quality automobile category with its new tagline, "The Best or Little or nothing, " successfully tying its long traditions of superiority in executive, performance, styling, and safety to its 125th birthday. Mercedes outranks all other motor vehicle brands in terms of customer loyalty and satisfaction. With its new model rollout, Mercedes has responded to market that is quickly changing in favor of green technologies. 1 / 2 of the product range is available using its Blue Efficiency package deal, and it's really Daimler "Car2Go" car-sharing ability to move concept just lately launched. Mercedes-Benz also continues to partner with Tesla on lithium-ion battery packs, and it received a 2010 German Sustainability Honor for its Atego Blue Tec Hybrid pick up truck. (http://interbrand. com).

International Marketing

Mercedes-Benz is a brand that is well known across the world and it was ranked among the most notable ten most recognizable brands on the globe by "Business Week Magazine"

Mercedes-Benz was purely into domestic production and exporting out for sales before early 1990s when it started international production and now going back decade they have successfully established it self in a whole lot of international development due to the increase in demand and in the attempt to reduce cost and this has improved the sales of Mercedes-Benz with 1, 279, 100 products of Mercedes-Benz passenger autos up to 9% worldwide with China increasing by +35%, Brazil +41%, USA +14%, Russia +47%, Japan +4%, South, Korea +27%, India +28%, Germany -1%, Taiwan +34 %, American Europe(without G. ) -1%, Canada +3% in their major marketplaces.

Marketing Mix

For any successful marketing a company has to have a good mix of its marketing strategy known as the 4P's which includes

The right Product

Selling it at the right Price

Targeting the right Place

Making the best and effective Promotion

For all the marketing mix listed above to work well you have to meet up with the following conditions

You have to make all the right features on your product.

Price must be worth the good they may be paying for

Availability of the product when and where it's needed it is critical to make it easy to attain at a low cost.

Awareness is an integral factor of marketing, enabling the public find out about your product and its feature is vital, That way they might be convinced into presenting the product an opportunity.


When you hear the term "Product" what involves mind will be the packages that makes it something like the physical, service and symbol of this particular thing you want. With these we can say something strategy includes the look, trademarks, guarantees, warrantees, product image and brand name and all this helps show superiority over rival rivals, Mercedes-Benz is well known for its development, advanced technology and continuous research to keep its product as number 1 for what its known for, which can be its Luxury, Safety and powerful engine unit, Already known for its class Mercedes has introduced "Blue Efficiency" to decrease the emissions of CO2 and also to match its rival company that has a low intake of fuel or diesel at the same time providing its customers a competent Mobility.

Mercedes has a high resale value and it's really the first car manufacturer to introduce the Auto Breaking System (ABS), Airbag and pre-tensioning devices on its vehicles. All these are what make its product brand unique from the rest. Mercedes-Benz are known for its durability to last very long but still drive very well, Which is a good attribute in the vehicle world.


This is the amount a person is willing to pay for something because it's worthwhile. Every customer wants to be sure whatever product they are getting is worth what they are paying for it. That's why Mercedes has taken its a chance to make its product of the finest quality like the utilization of Alloy metallic and Aluminum, which is why Mercedes-Benz is seen as a prestige or course for the rich in the modern culture, this clarifies why Mercedes have targeted the abundant with its business strategy. When costing a good its good not to over value it to the client rather than undervalue it to avoid loss to the business, That is why a good marketing strategy is needed to keep the balance. Mercedes ensures its products are worth the value and prices by getting together with up with the needs of its customers. Its a pricey product and all its parts are costly as well which makes it affordable by the rich, which explains why its simply known as Class.


The option of a product is wonderful for customers, not merely being available online customers need to feel, touch and even test the product they would like to buy before spending money on it. Mercedes has provided show rooms because of its products in almost all the developing countries, Importation of vehicles use to are expensive on Mercedes that's why they are determined to make its products available in countries right now manufacturing them in several countries, like what is occurring in India right now, this will help reduce cost and taxes. Mercedes has concentrated on its major marketplaces and doing everything to meet up with the demands there and working on getting the middle course and middle aged of the culture by providing autos that better suit them, Talking about style and luxury combined collectively, Providing all the includes a young head will be delighted about while still maintenaining its standard,


Is your potential to speak and convince the clients giving them reasons to purchase your product, Mercedes does not need much here has its name already talks volumes and is also well recognize around the world, Already using the slogan "The Best or nothing" in its adverts offers all the impression you want as a customer, Knowing that the merchandise you buying is the better provides you that extra drive to go for it. This explains why companies spend a great deal on adverts. Good warrantee policy like being able to extend your guarantee after the original one expires.

Sponsorship like the deals with Method 1 race, Polo suits, creating programs for new technology like iPhone and Samsung, Fashion shows and other promotional activities.

Mercedes has made evolution strategy one of its strongest point, These clarifies why in the past decades Mercedes has expanded its selection of vehicles in shapes and sizes with the release of the M-Class, A-class and most just lately the B-Class and the popularity of the strategy by its customers has been seen across the world by the amount of sales already made in the market.


Mercedes-Benz has been around for over a 100years and it still preserves its niche in all the aspects its been known for right from the start which stands for Luxury, Safety, Comfort and Course in the culture like no other brand, Its still the number one choice for the old, middle older and young that reflects in the sales and frequent demand for it in developing countries. Using the marketing mixture above we can conclude that Mercedes has used the right approach in its International marketing strategy combination with the regular increase in sales and a fresh record sales last year already been surpassed by the first quarter sales this year.

Its Benefits of newer models has been really motivating with good start, Its diversification in buses, pickup trucks and mentors has increased its customer bottom like in china a lot of the chauffeurs there are Mercedes Benz along with the buses which serve as commercial cars in the developed countries and the products are usually bought in bulk cause they are simply meant for commercial transportation means which is the prospective market. Already known for its durability and now adding the blue efficiency to its new cars it'll be hard for people to choose other brand before Mercedes. All this factors will sure help increase its occurrence and demand in the automobile industry.

Its pricing is actually high and I think that strategy has paid for Mercedes as it helps keep the cliche its known for, generally in life the rich loves being unique and remarkable among everyone else by their appearance and having a Mercedes makes that easy. That's the same reason people go to expensive bars to get a category of champagne for a 100usd when they can get that same goblet for 10usd somewhere else but they opt for the latter reason behind their position and comfort to make people know they are really that abundant and comfortable, THEREFORE I will say that's a good strategy in the world today, everyone successful today either has a Mercedes or is saving to get one just so they can have a better reception when they arrive for an occasion or a business meeting.

Another facet of its strategy that Mercedes has worked on is its local production idea, for the past 10 years Mercedes has moved into producing its products in countries where they have the largest customer foundation, this is a very good idea to lower cost of travelling from Germany abroad and to help reduce fees and other cost imposed on imported cars, now with local production they will be avoiding all the insurance plan put on imported automobiles and will be able to meet up with the demands of folks, Having showrooms helps it be easy for individuals to come and test drive what they want to buy before paying for it, and it attracts more folks to your product as they may have this internal feeling they are close to the business and it won't be difficult to fix a difficulty with the car should there be the necessity for it.

Internationalization Process Theory

Porters Diamond Internalization process best identifies the idea Mercedes-Benz has performed, Porters gemstone process characterized why some industries in some countries tend to be more competitive on global scales than their rivals. It argues that some countries provide some specific home advantages which will prove an advantage over its rivals on global size.

The four determinants of these porters' models are

Factor Conditions

Demand Conditions

Related and supporting Industries

Firm Strategy, Composition and Rivalry

Factor Conditions

This factors are normally not noticed at the initial process but as time passes its that factor that provides the competitive advantage to a region. It is because it is the reputation built by companies in a country that expands to be an edge in the future. This consists of factors like the workforce which can heighten a company's tolerance on defects and give attention to automation other factor conditions include

Workforce Shortage

Availability of raw materials

Highly skilled workforce

This is what has given the specific niche market to Germany as it pertains to auto, and got it the nick name "German Executive" and Mercedes has gained from this popularity as well as added to making the country known for it, Known because of its skilled work force, German cars are now synonymous with category, Prestige, Safety and luxury due to local competition among the local companies to be the best in that department which includes now given the business the global competitive border.

Demand Conditions

A requiring market demands improvement to meet with customer needs and style through invention and quality this will improve the competition among local exporting companies on a worldwide range. This home pressure makes them shoot for more improvement.

The demand for Mercedes-Benz and continuous need from customers for improvement has increased the impressive ideas of Mercedes, Resulting in the benefits of different patterns of vehicles and broadening its customer target, By now introducing automobiles that suit not simply the elderly people but also the young and middle income of the culture and not shifting from its category and everything its known for, This constant demand has lead to the benefits of B-class, A-class and the ML-class which is its strongest feature now.

Mercedes talks about the marketplace where its most needed and focus on doing everything to help make the supplies meet the demand, With its biggest market now in India and China Mercedes has moved into local creation just so they can meet the demand and save cost, Launching coaches and mini automobiles into china all in other to gratify the demand for the utilization of Mercedes. This strategy has worked perfectly for Mercedes which is why its profits raises with annually that forward with 2011 being its highest revenue ever and already surpassing that record with the 1 / 4 of the year sales of 2012. This proves that the demand for Mercedes and its own strategic strategies to meet with it's been working perfectly.

Related Supporting industries

When all local companies are competitive strong and creative, they have a tendency to learn from their particular ideas, This is why some countries are regarded as the best in a particular product than the other countries, because the talk about knowledge and experience revolves spherical them to provide them that countrywide symbol for that particular goods.

Mercedes, Volkswagen, BMW and Porsche are synonymous with good executive work, Innovation, technology and expensive to own due to its fine and quality finishing. Their competitive struggle makes them shoot for more and always wanting to go one better than the other, so whatever technology that is presented by one others make an effort to give an improved technology.

Factor Conditions

Competition can be influenced by the structure of the management system of businesses in the country, German industries are known for their topic in Engineering which includes resulted to their advantage in the world engineering impressive competition. Which is why porter said the main element factors of creation are created rather than inherited, Specialized factors of creation are skilled labor, infrastructure and capital, Non key factors such as natural materials, unskilled labor is obtainable by any company and so can't be regarded as a competitive advantage however the specialized factors like heavy suffered investment cannot be duplicated easily, That is why they will be the competitive edge since other companies can not duplicate them easy, It can be called valuable.

Mercedes quality and highly skilled labor force is a known factor which is why people accept the purchase price tagged with the autos because its the actual pay, Mercedes commit much in their automobiles and having already spent that fact to provide nothing but the best its customers have given them the support by purchasing the vehicles, Unlike other automobile brands that comes at cheaper prices as a result of quality of its surface finish with companies like that they cannot swap into making expensive vehicles because the clients already have a fixed rating on the automobile manufacturing cost. This gives a good competitive benefit to Mercedes because cliche like this cannot be over changed easily and that is a reputation it has worked on from the start and that's what keeps it there as the number one automobile today inside our society.

Effect of Country of Source on Mercedes-Benz

The aftereffect of country of source on a product or brand can either be positive or negative in your brain of the clients and the way the products are rated generally. Germany one of the greatest country on earth and a global power in terms of economy and politically, An associate of the G8. Its current economic climate is probably the 5 largest on the planet, Germany is the globe number 1 exporter of goods and third exporter of services, not withstanding it only signifies 1. 5% of the world inhabitants. Fourth largest manufacturer of automobiles. (GERMANY AND GLOBALIZATION)

Germany is generally known because of its executive, which is area of interest. "Made in Germany" is a worldwide symbol for trustworthiness, quality and progressive engineering. The effect and assumption of consumers on products predicated on their country of origin has been an increasing stereotyping and has called more awareness from the professionals on how it influences their sales and today manufacturers are not merely considering where they will get cheap labor ever again but are actually worried on the label of where it's created from that it comes with.

In this case Germans are generally known for luxury vehicles and big engines, with the 4 major automobile company in Germany (Mercedes-Benz, Porsche, BMW, Volkswagen) known for their durability, safety, innovation and luxury it has given them the nick name "German Engineering", Their similarity in engine motor power and technology feature makes them unique from other autos. This is a good image that has given them a vital advantage over their competitors because of their quality finish off. Germany is the first country to create a modern car with internal-combustion engine unit (SECRET Background) also known for its invention and discoveries created by Germans, The secure political state there has also been good on its vehicle industry.

The product image can be quite important when customers want to get a product, that is where Mercedes has done well, its brand is already a selling brand, and the image provides impression of category, quality, safety and luxury so this image alone could make it stand out from its Country of origins. Germany is a vacationer country which appeals to a whole lot of foreigners and getting there they get to have a firsthand usage of what the united states is like and its achievement in executive, When people need it cars they have a tendency to consider different things, While you think of economy cars and automobiles that are inexpensive to maintain you go for the Japanese technology because that is the image the united states has labeled itself with, But when you heading to the marketplace with the hope to get a car for its luxury, engine ability, safety, Category, technology, performance, well recognized and respected the initial thing that comes to head is the German car. That is the kind of image its tag with now and it's really a positive advantages for Mercedes-Benz as its cars are made to target the top class and middle class of the world. German automobiles are no working on making their vehicles more efficiency, which explains why Mercedes-Benz has released its blue efficiency in reducing its utilization rate at the same time increasing the engine unit power.

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