Edsel Case Study Part 3: Looking, not buying. Identify how interest in, but failure of, 'E-day' suggests that one of the fundamental aims of promotion.

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Presentation transcript:

Edsel Case Study Part 3: Looking, not buying

Identify how interest in, but failure of, 'E-day' suggests that one of the fundamental aims of promotion was not met. Phases: Development; initial launch Test marketing? Range of products? Product development? At the end of development Ford had tried to incorporate as many features identified by their market research as they could. However, they did not restrict the launch of the product by either range or geography, which was a high risk strategy.

How could the technical problems identified in the Edsel have been better managed? Product development Product differentiation Launch strategy Although Ford put considerable effort into product development to enable the best possible product differentiation, they relied on their quantity rather than quality. Thorough testing (including market testing) would have identified less reliable gadgets and excluded them. These could have been used later as part of their extension strategy if the technical problems could have been overcome.

What is 'pester power' and how does this relate to the Edsel? Definition Children 'Action' promotion stage 'Pester power' refers to the influence that non-purchase deciders exert on potential purchasers. The most common influence is that of children, who are often targeted by marketing material so that they will carry out this function. In Edsel's case, the use of ponies and toy cars to encourage parents to take test drives was used in this manner.

Discuss the weaknesses of Edsel's marketing strategy 'Teaser' advertising Expectation – from the brand, model Reality The problems encountered in product development could not be disguised by an expensive promotion campaign and was further complicated by the need to launch the product over such a wide geographic area though a large number of outlets. The sales outlets were owned by small businesses who were unprepared for a very different model of car which they had no experience of. Customers who had been excited by national advertising were disappointed by local realities.

Evaluate how Ford applied the marketing mix across the entire case study Identify 4 P's Balance? Product dominated the marketing mix but this was not the product that was required by customers, especially by 1958 when recession had hit the country. Price was clearly understood by Ford and penetration pricing was used to bridge the gap between low and medium priced segments. Promotion, though effective above- the-line in generating interest and desire, was not supported by a suitable below-the-line strategy. The number of retail outlets was never considered properly beyond the logistics of the launch itself. The risks associated with 'place' appear to have been ignored.