Pricing strategies for the Ford Motor. Ford Motor concentrates on assembling of two types of vehicles; the luxury cars and commercial cars or rather automobile cars. This, therefore, calls for different pricing strategies to be employed so as to be able to a high number of sales compared to their competitors Audi and BMW car model. (Ferguson, 2017) The Ford motor company, therefore, has employed several pricing strategies to achieve the maximum sales and profits. The following are the strategies;
- Auto spare part pricing strategy
The ford company as stated above, ventures in assembling both luxury cars as well as commercial and automobile cars. In most cases, the commercial vehicles require often maintenance due to tear and wear of some parts. This makes them, during choice making on the car model to purchase for their commercial activities, settle for a car that has cheap and readily available spare part. With this information and knowledge, the ford car company has employed the auto spare marketing strategy as a way of encouraging potential customers to buy their cars with an assurance that in case of spare parts need, they can easily and affordably acquire them. (automobile consulting group, 2015)
- Market-oriented pricing strategies
One of the main goals and motivating objectives of the ford car company is setting up product prices that tally with the market conditions after considering the current market competition, demand and consumers point of view. The ford company employs this strategy more so to the trucks and sedans that it produces.
- Premium pricing strategy
This is a strategy that depends on the price point of a product and psychological image of the product to the users or customers. The ford company uses the premium strategy as a way of establishing its product image to be a high-quality product in the consumers’ minds. They use this product to create a picture that their car models are of high quality than their competitor’s and therefore the prices too should be high. Majorly this strategy is applied to their luxury car models. This creates some positive perceptions of the willing buyer that the car must be of higher value than competitors. (Woodruff, 2018)
- Leasing or renting luxury cars
One of the objectives of the ford company is to satisfy its customers’ demands for comfort and also reach out to the luxurious demands several groups of people that are less or relatively wealthy class and cannot afford expensive luxurious cars. This, therefore, saw it as the need on a way in which the company can satisfy the demands of those who cannot afford these cars. Leasing and renting them cars is a perfect pricing strategy and move that makes them end up selling a good number of their cars. One can drive their ford dream car by leasing the car for a given period of time depending on the agreed terms. This makes them to later purchase them due to the level of comfort they achieve. Leasing means paying for that car only as much as you use it, although the ownership remains with the leaser. At the end of the agreement, the lease can fully own the car and thus a good pricing strategy. (Laja, 2017)
References
automobile consulting group. (2015). Auto spare parts pricing strategy. auto analysis, 3.
Ferguson, E. (2017). Ford Motor Company’s Marketing Mix (4Ps) Analysis. Business management, 2, 2-7.
Laja, P. (2017). 4 Fundamental Product Pricing Strategies and Techniques. pricing strategies, 3.
Woodruff, J. (2018, March 28). pricing strategy. Retrieved from small business. business planning: https://smallbusiness.chron.com/premium-pricing-strategy-1107.html
