Discussion about Marketing Mix For Caterpillar

Question: Discuss about theMarketing Mix for Caterpillar. Answer: Introduction The study consists of the marketing mix for earth digging machinery of Caterpillar. Caterpillar, Inc is an American company that engineers, designs, manufactures, develops, markets and sells engines, machinery, insurance and financial products to customers. The company has its distribution network worldwide. Caterpillar is known as the leading manufacturer of different types of machinery and construction, diesel engines, mining equipment, diesel-electric locomotives, natural gas turbines and much more. The company serves many ranges of products and services to the customers. Effectiveness of the Current Marketing Mix In the recent years, Caterpillar, Inc relies mainly on the growth of the infrastructures in the emerging markets regarding revenue generation. Many markets are tapped by the company and have increased its presence in China, Turkey, India, etc. The marketing strategy of the company has witnessed a severe appetite for growth. However, on the decline of the construction housing market of the United States, Caterpillar has taken a decision of diversifying its market all over the world. The main competitor of Caterpillar, Inc is Deere Co. the marketing mix of the company is formulated as per the marketing goals and competitor analysis (Brady 2014). The marketing mix of the brand is capable and is strong to capture a substantial market share and customers from the target market. There is a broad range of products Caterpillar serve to its clients. The company is into selling large equipment and machinery throughout the world. All types of customers from diverse backgrounds can avail the pr oducts, as they are available in the stores of Caterpillar. The products of Caterpillar are not available at low prices. The company is committed to maintaining a high standard quality for its machinery and equipment. The prices of the products are a premium charged, and the customers are ready to pay for it due to the brand reputation (Attia and Honeycutt 2012). The promotion of the product is the logo that is present in the equipment of the company. The marketing mix of the company is effective. However, the promotional activities of the enterprise are subtle. If the company increases its promotion in the market, then it will be able to capture more customers in the market. In this case, the promotional mix is not up to the mark. The company focuses on a consumer brand relationships. However, due to the few promotional works for the products, Caterpillar is not able to maintain the same status of relationships in the newly captured markets (Gilligan and Hird 2013). Proposed Marketing Mix In this section, the new marketing mix will be developed for the product category of earth digging equipment. The new marketing mix would be more efficient for capturing more customers from the market by building a strong brand image in the market. The marketing mix for the earth digging equipment of Caterpillar is described in the following: Product: Caterpillar, Inc has a range of diversified goods and services. However, the marketing mix is for earth digging equipment of the company among its 400 types of off-road, agricultural and on-road machinery. The company has done extensive market research to determine the demands of this product range in different emerging markets like Turkey (Berman and Evans 2015). However, for this range of product, the marketing strategy is changed a bit for increased effectiveness. Price: Usually, Caterpillar, Inc is using premium pricing strategy for its products. The engines and machinery of the company are always priced high to create a perception of premium high quality products to the customers. The strategy is applied with a view to create a perception of an exceptional reputation for the product towards the company. The novelty of the customers is determined as they are willing to pay the price of the product. In this product, premium decoy pricing is used (Kotler et al. 2015). It is the method of pricing where Caterpillar would set the price of this range of product high to boost the sales of the other products of the company that is lower priced. The company produces high-tech and expertise services to the customers as they are the market leader. Place: Caterpillar, Inc has its subsidiaries across different countries of the world. The strong distribution network helps the company to distribute the products in its branches. Regarding maximum assets, the company is ranked as number one in the sector. Global presence is a positive aspect in the marketing of products (Traynor 2015). Promotion: Caterpillar, Inc is not focusing on traditional promotional tools for increasing its brand awareness. The logo that is present in the machinery of the company is used for promotion of the enterprise. However, this is not sufficient. Caterpillar, Inc has to use digital platforms for increasing the brand awareness. Using different channels of social media such as Facebook, Instagram, YouTube, Flickr, Twitter, and Google Plus, the company will be able to engage more customers in the target market. Indeed, it would help Caterpillar, Inc to present itself as a global number one company in this sector (Dalgic and Leeuw 2015). The promotional objectives include three basic premises such as- group task, high-end work, and global leadership. It has to opt for various digital promotional tactics according to the nature of the places. Effectiveness and Differentiation of the New Marketing Mix The new marketing mix is formulated for the new product category, i.e. the earth digging equipment. There are many types of machinery present in this group. However, the promotion mix in the marketing strategy is improved so that the new approach works more efficiently accomplishing the marketing goals. Previously, the company has not emphasized much attention on the promotional part of the marketing mix (Rosenbloom 2012). The multiple promotional tactics of digital marketing strategy will help Caterpillar, Inc to increase the brand awareness of the new product in the market. It will increase the sales of the earth digging equipment along with tapping more customer engagement. Conclusion The study describes formation of a new marketing mix for earth digging equipment. The old marketing mix of the company is evaluated in a detailed manner. Some flaws are pointed out in the old marketing mix for Caterpillar, Inc. However, in the new marketing mix, the company will be able to engage and attract more customers to their products that will lead to increased sales. References Attia, A.M. and Honeycutt Jr, E.D., 2012. Measuring sales training effectiveness at the behavior and results levels using self-and supervisor evaluations.Marketing Intelligence Planning,30(3), pp.324-338. Berman, B. and Evans, J.R., 2015. A Model for Implementing the Marketing Audit. InMarketing Horizons: A 1980's Perspective(pp. 338-343). Springer International Publishing. Brady, D.L., 2014.Essentials of international marketing. Routledge. Dalgic, T. and Leeuw, M., 2015. Niche marketing revisited: theoretical and practical issues. InProceedings of the 1993 Academy of Marketing Science (AMS) Annual Conference(pp. 137-145). Springer International Publishing. Gilligan, C. and Hird, M., 2013. International Marketing (RLE International Business): Strategy and Management. Routledge. Kotler, P., Keller, K.L., Manceau, D. and Hmonnet-Goujot, A., 2015.Marketing management(Vol. 14). Englewood Cliffs, NJ: Prentice Hall. Rosenbloom, B., 2012.Marketing channels. Cengage Learning. Traynor, K., 2015. Probe: The Fifth P of Marketing. InProceedings of the 1985 Academy of Marketing Science (AMS) Annual Conference(pp. 266-270). Springer International Publishing.