Premium Essay

Porsche: Guarding the Old While Bringing in the New

In: Business and Management

Submitted By Moustoy
Words 1536
Pages 7
This Case Study is about the marketing history and the present marketing management of Porsche. The Porsche company has been around for a very long time and has had its share of ups and downs in the automobile industry. In this case study, I am going to be discussing the marketing management orientations, the buyer decision processes, the various segmentation strategies used and touch on why Porsche sold lower priced models in the 1970’s and 1980’s. First let’s talk about Porsche’s marketing management strategies used.

The marketing management orientations used (or that should be used) by Porsche are product concept, societal marketing concept, and the marketing concept. With the product concept, we see Porsche striving to not only improve on the cars they have, but to innovate into new markets - showing that Porsche isn’t a one trick pony. They focus on quality, not quantity. Porsche believes that it is better to have 500 amazing Porsches in the world, verses 1000 average ones. Porsche also has focused on the performance and features of a Porsche that set it apart from every other car manufacturers, even other luxury car makers like BMW, Lexus, etc. Every Porsche that leaves their German plants has been meticulously designed down to the smallest part of engineering, to the tiniest detail. By concentrating on making each one perfect and an automobile feat, Porsche is able to show that while others may produce millions of cars, they produce works of art that you can drive. For the new markets that Porsche has entered, we see Porsche applying marketing concepts to their customers, such as making vehicles for people who want the quality engineering and craftsmanship of a Porsche, but require something larger: A sedan and a sport utility vehicle. Instead of trying for a low cost, low quality vehicle, they chose to create a Porche in the body of a sport utility…...

Similar Documents

Premium Essay

Porsche Case Study

...Porsche: Guarding the Old While Bringing in the New Background on Porsche The Porsche Company was founded by Ferdinand Porsche who credited himself for the design of the original Volkswagen Beetle and Adolf Hitler’s people’s car. He had already gathered over 30 years of valuable experience before designing the Porsche. The first result of this work in automobile development was an electric car called the Lohner Porsche which was powered by wheel-hub motors. In 1948 Porsche engineering office started working under its own steam on the Type 356 VW Sports Car it marked the birth of the Porsche sports car. Today the Porsche engineering continues to take on engineering challenges of the future. The Problem The Porsche Company started to decline in sales due to its’ exclusive customers. Porsche became concerned about if there were enough products to keep the company afloat. The company tried to extend its brand outside of the box with making cars that were affordable to individuals who didn’t represent the Porsche brand. What factors are important to understanding this problem? The Porsche customers were upset, because there were different classes of people who owned this product. The customers exemplified attitude toward the product. “A customer’s attitude fit into a pattern changing ones attitude may require difficult adjustments in many others” (Kotler and Armstrong). Brand personality is a unique concept with this case. “Brand personality is the specific mix of......

Words: 650 - Pages: 3

Free Essay

Evolution of New and Old Disease

...Evolution of New and Old Communicable Diseases According to Gordis (2004), epidemiology is defined as “the study of the distribution and determinants of health related states and event of diseases in specified populations and the application of this study to control of health problems”. Severe acute respiratory syndrome (SARS) is contagious and potentially life threatening form of pneumonia which was first detected in February 2003 in Asia and it spread to various countries in Europe, North America and South America before it was declared as SARS 2003 global outbreak (Centers for Disease Control and Prevention, 2004). SARS is an acute respiratory tract illness caused by an infectious virus transmitted from person to person. Various pathogens that cause acute respiratory diseases are respiratory syncytical virus, parainfluenza virus, influenza virus and severe acute respiratory syndrome-associated coronavirus (SARS-CoV) (WHO, 2007). In 2003, various scientists across the world started investigating the virus with the help of electron microscopy and virus discovery microarrays. The new coronavirus was inoculated in monkeys which caused interstitial pneumonia similar to SARS (Holmes, 2003). This newly identified acute viral respiratory syndrome caused by a novel coronavirus is a positive-stranded RNA virus with genome containing nucleocapsid protein, membrane proteins and spike protein which forms the typical “coronavirus” structure (Lashley & Durham, 2007). Spreading...

Words: 1702 - Pages: 7

Premium Essay

Porsche Market

...Porsche: Guarding the Old While Bringing in the New Porsche: Guarding the Old While Bringing in the New Team 5 Principles of Marketing February 2014 Team 5 Principles of Marketing February 2014 1.  Develop a 1-2 paragraph summary of your assigned Company. When a person hears the name Porsche, immediately the word elite comes to mind, along with a few other words such as success, money, and speed. These terms are exactly what the owners of this one of a kind sports car are trying to obtain. In 1931 Ferdinand Porsche entered the car making market. For the first 20 years of business Ferdinand focused on his famous Volkswagen Beetle. It wasn’t until 1950 that the Porsche sports car came into the eyes of this rising businessman. The first Porsche cars, the 911 and 356 models, were unique and fast with their motors located in the back of the vehicle. This car screamed the words expensive and luxurious. Porsche purchasers dropped an enormous amount of cash to own one of these beautiful cars. Owners were a limited group of entrepreneurs and part of a small group that viewed their vehicles as an extension of themselves, much like their expensive suits and watches that were thousands of dollars. Porsche buyers enjoyed being “special.” Since Porsche was such an expensive car that caught the attention of a select group of buyers, the company began to struggle with the idea of expanding its market to a broader horizon. Ferdinand Porsche decided to create a cheaper......

Words: 1442 - Pages: 6

Free Essay

New vs. Old Ecomony

...Assignment New vs Old Economy NEW VS OLD ECONOMY Define the following: Old Economy: | an economy based on agriculture and manufacturing as opposed to high technology; also, a former economic system or state | New Economy: New industries, such as biotechnology or the Internet, that are characterized by cutting-edge technology and high growth. Fill in the following chart: CONTRASTS OLD ECONOMY | NEW ECONOMY | Requires control | Requires collaboration | Value is measurable | Value is emergent | Predictive | Experimental | Proximity is important | Location less significant | Assembly line focused | Community Focused | Clear boundaries and definitions | Shifting borders and consensus meaning | labour-intensive economy involving manufacturing and the movement of physical commodities | the "virtual" economy of computers and electronic commerce | creates value in a product through a simple formula: The object’s value is the sum of its obvious parts | Produces additional value by a complex interaction of the obvious parts with intangibles, like design, engineering, brand and cachet. | Pick any two points that you put in the chart and explain in your own words what it means. 1. The "virtual" economy of computers and electronic commerce (new economy). Vs labour-intensive economy involving manufacturing and the movement of physical commodities (old economy). Basically this point is explaining the change in the economy from old to new. In the......

Words: 389 - Pages: 2

Premium Essay

Porsche: Guarding the Old While Bringing in the New

...the buyer decision process of a traditional Porsche customer. What conclusions can you draw? The most important is the image of exclusivity the car provides. The care represents how successful they are and is like a self-image.; it stands for the things owners like to see in themselves and their lives. Need Recognition Financially successful people Information Search Strong and satisfying feelings Evaluation Alternative Accomplish daily task Purchase Decision Purchase intension & purchase decision Portpurchase Behavior Consumer expectation and satisfaction 2. How does the traditional Porsche customer decision process contrast with the decision process for a Cayenne or Panamera customer? A traditional Porsche customer is more about the way the car sounds, vibrates and feels. A Cayenne or Panamera looks for both, a family car and speed. Evaluation of Alternative The Porsche customers need to indentify whether they will choose for a common model produced or sport utility vehicle. For instance, most Porsche customers prefer on luxury car such as Porsche 911 which has a speed satisfaction. Postpurchasae behavior Some Porsche customers expect that Porsche Cayenne is sport utility vehicles but they dissatisfied with the performance. For instance, one journalist said that the Cayenne does not feel like and SUV but rather like a Porsche. 3. Which concepts from the chapter explain why Porsche sold so many lower-priced models in the......

Words: 470 - Pages: 2

Premium Essay

Old News

... The scenario that I came up with is soldiers transitioning out of the military either by retiring, forced out, voluntary getting out during these times of war on terrorism and as the wars starts to come an end and wine down. And the economy is in a recession trying to recover from the all the spending of money that were sent overseas to support the war. Taking it away from the businesses and people losing their jobs because demand and supply of goods are at an all-time low. Soldiers thinking the training and schooling that they attained while in the service will translate in to civilian world and be at high demand because of the training that is received during that time. Only to find out when they transition out re-entering the labor force that they do not have enough education or the training does not equal the same training as it would as a civilian education. And the possibly that they may not be able find a job that is similar to the job that they had in the military that equals the same pay. This a frictional unemployment because they are re-entering the labor force and will have to change jobs that takes time to look for a job which becomes frustrating and can discourage them from looking for work. During an a period of economic expansion the scenario I came up with is dealing with food service as in the scenario as above the transiting of military food service personnel being in high demand in the restaurant business because of their training and ability to......

Words: 469 - Pages: 2

Free Essay

Old Wine in New Bottles

...Old wine in new bottles Have you ever seen the furniture only made of wood, without a nail? Several years ago, a friend of mine, studying architecture, introduced the amazing craft called mortise-and-tenon joint to me and told me that it had been used for thousands of years by woodworkers around the world. In traditional Chinese architecture, wood components, such as beams, roof frames and brackets, were made to interlock with perfect fit, without using fasteners or glues, enabling the wood to expand and contract according to humidity. Although he spoke like an encyclopedia about it, I could not get a clear picture of what it was like. Few days ago, I came across an app called “wood joints”, which a friend of mine shared on Wechat. After downloading it, I was amazed to find that this app provides a high quality 3D model (the mortise-and-tenon joint in books are two dimensional drawings) to view the 27 classical mortise-and-tenon joint structures broken down into their composite parts. The first thought that occurred to me was that creativity comes from our “big questions” which lead us toward our purpose. The big question of the designer of the app started with the influence of his father who used to make the furniture by himself. He started to ask himself, “How can I use computer technology to gain a clear perspective of the classical mortise-and-tenon joint structures?” After 6 months of preparation and hard work, his team accomplished the dream. Actually,......

Words: 434 - Pages: 2

Premium Essay

Porsche

...Porsche : Guarding the Old While Bringing in the New Introduction Porsche : The company Porsche founded in 1931 Porsche appealed to financially succesful people. People buy Porsche because the car mirrors their self-image Unique company Managers of Porsche wants to know: -Who their customers are - What they think - How they feel The buyers decision process Low volume and increasingly fragment auto market Sold a few models, creating an image of excusivity Making decisions : Cayenne or Panamera? Porsche 914 1970 - Porsche began to worry Cheaper model for other classes Made for a differend type of costumers VS How the Loyalists were thinking about the 914 They never accepted the 914 as a real 'Porsche'. The 914 users don't fit in the real owner profile. Disappointment in the new strategy of Porsche : Mass over Class Questions for Discussion Positive and negative attitudes toward a brand like Porsche. Positive Customer buying a Porsche wants to show their status and separate from the lower class. Negative Customers are not satisfied with the produce image. Answer 1 : It is the image of exclusivity that is most important. They want their car to represent how successful they are. Answer 2 : A traditional Porsche customer is more concerned about the way the car sounds, vibrates and feels. A Cayenne or Panamera customer is looking for both family car and speed. Answer 3 : * Cultural Factors (Social Class); having a Porsche is always means to upper social......

Words: 1178 - Pages: 5

Free Essay

Porsche Case Study

...Case Study Porsche: Guarding the Old While Bringing in the New 1. Analyze the buyer decision process of a traditional Porsche customer. A typical Porsche customer does not go through the traditional buyer decision steps. “The five steps include; need recognition, information search, and evaluation of alternatives, purchase decision, and postpurchase behavior” (Kotler & Armstrong, 2014). These customers skip most of the 5 stages and jump right into the purchase decision. Although these individuals might make a purchase off of brand recognition usually the decision is made based on their wants and their mind is made up well before the purchase occurs. “Porsche appeals to a very narrow segment of financially successful people” (Kotler & Armstrong, 2014) and these people purchase their cars for the pure enjoyment of the vehicle and the exclusivity the car provides. As a current owner of three Porsches, and currently searching for number four, I can tell you that personally I purchase these vehicles for two reasons; for the pure excitement I get when driving these cars and they also define my arrival at a successful benchmark in my life and the exclusivity that comes with ownership. Nothing can replicate the feeling of driving one, and no other combination of sound, feel, sight and soul can connect with a true “Porschephile” (Urban Dictionary, 2005), like owning a Porsche. “A Porsche is more than just a vehicle. It is an expression of freedom and a unique......

Words: 1185 - Pages: 5

Free Essay

Porsche Case Study

...Maggie Beckley Anite Dahaba Sherryon Moore Zulma Ocampo Chapter 5 Porsche Case Study: Guarding the Old While Bringing the New 1. Analyze the buyer Decision process of a traditional Porsche customer. a. Traditionally Porsche has developed a low volume and increasingly fragmented auto market. The availability of these high end models created an image of exclusivity. And this image is very important to the Porsche customer and they want their car to represent how successful they are. For the traditional Porsche customer the 1st 3 steps in the buying decision may be skipped or gone through a bit quicker and go to steps 4 and 5 because they already know about the Porsche and they already know what they need in this type of car. The first 3 steps generally arise when a consumer faces a new and complex purchase situation. i. Need Recognition: The Porsche customer is financially well off so the car they purchase would be a representation of their lifestyle. ii. Information Search: The Porsche consumer will likely obtain information from personal sources (those in their circle who already owns a Porsche) or from commercial sources. iii. Evaluation of Alternatives: This step is skipped for traditional Porsche customer because this is the only brand they would be evaluating. iv. Purchase Decision: the Porsche customer will likely go with what their preferred brand. The intent of this......

Words: 643 - Pages: 3

Premium Essay

Old and New Testament Exegesis

...Old and New Testament Exegesis The author of Daniel intended to restore hope to the nation of Israel during a time of horrifying persecution. This was done through a combination of narrative stories and apocalyptic revelations, both involving the wise and religious character known as Daniel. The lessons of faithfulness and obedience throughout the book transcend generations and still affect readers today. The setting of Daniel takes place during the “Babylonian exile” within the “courts of Babylonian, Median, and Persian kings” (Collins 33). This exile took place the around the sixth century B.C. Contrary to the setting, though, “critical scholarship has established that the book actually comes from the 2nd century B.C.” (33). During this era, the Jewish population was persecuted by Antiochus IV Epiphanes, who went so far as to desecrate the Jewish Temple in Jerusalem by constructing a statue to the Greek god Zeus, much like King Nebuchadnezzar does in chapter 3 (Porteous 57). The biggest clue that Bible scholars notice when questioning the authorship is how accurate the succession of kingdoms is mentioned throughout the book. The author’s ability to hint at events that occur centuries after Daniel’s lifespan lead scholars to suspect an alternative author (Jeffrey 349). The book of Acts seems so straight forward as a mere history of the early Church that one can hardly imagine the controversy behind the tedious details in the critical examination...

Words: 3131 - Pages: 13

Free Essay

New Man in an Old Body

...New Man in an Old Body When one is young, learning how to read and write is always a challenge. Now imagine being a young adult and teaching one’s self how to read and write. Jimmy Baca the author of “Coming into Language”, not only learned how to read as a young adult but undertook this goal in an inadequate environment. Through a poetic perspective, Jimmy Baca’s isolation lead him to a reborn self. Baca utilizes tone and understatement to help express his journey through his multiple transformations. Baca’s limitations left him feeling trapped and insecure, which affected him long term. From the age of seven Baca had been not only ridiculed but also punished by his teacher’s in school. Teachers would have him stick his nose “in a circle chalked on the blackboard” as punishment for not knowing the lesson plans (53). This constant embarrassment left him in an isolated state of confusion. He explains that he is “Ashamed of not understanding and fearful of asking questions” (53). These insecurities left him in the dark when if came to learning. Due to his unhealthy experiences in school he felt the only thing left to do was to drop out. Dropping out in the ninth grade took a major toll in his life; in the sense that he could still not read at the age of seventeen. Being a young adult and still unable to read Baca was unable to express himself. This humiliating was the start of his downfall. Understatement is used to express Baca’s first transformation to a state of interest...

Words: 1120 - Pages: 5

Free Essay

Old and New Media

...The Media—Old and New Sports and the media have a symbiotic relationship because they need each other. The media publicize the athlete, team, league, or other orga- nization, and in many cases pay considerable rights fees to broadcast or otherwise distribute sports content. The media gain by obtaining more viewers and listeners, which helps their bottom line. Without the role of the media, the sports business would not attain its scope and power. Sports media can be divided into “traditional” and “new” media. Traditional media include print, broadcast, and cable and the business model is tried and true. Broadcast and cable pay the bulk of rights fees to teams and the leagues. Additionally, cable sports networks, most notably ESPN, have a specialized twenty-four-hour all-sports niche carrying news and highlights as well as play-by-play content. The role of sports radio has saturated the air waves with constant talk (including second-guessing and criticism) about athletes and teams. Although too scarce, more and more print articles and a few broadcast/cable programs are devoted to the business of sport. “Newer” media, such as the Internet, are different in that athletes, teams, and leagues have limited control over content. Websites and blogs have contributed to a huge variety—informative, entertaining, outrageous, unfair—of information, keeping sports in the consciousness of millions of fans and adding to the headaches of owners, managers, coaches, and ath- letes. As is the...

Words: 1868 - Pages: 8

Premium Essay

New and Old Members

...Question 5 Marketing is the process in which advertisers attempt to create profitable relationships with consumers, while establishing a profit for their goods or services. In addition to generating new customers, marketers must also focus of customer retention. The marketing process has five key steps that lead to a successful organization/ campaign. * Targeting Consumer Wants The first step of the marketing process is analyzing and comprehending the current marketplace. Understanding what people want is essential to beginning a successful marketing campaign. After finding a potential niche for a product or service, marketers must conduct research about competitors and similar items currently available on the market. After identifying these factors, an overall plan must be established to launch the good or service. Sales methods, franchising, and partnerships are all aspects of the product launch that must be examined before production can take place. * Establishing a Consumer-Driven Sales Strategy After finding a profitable niche, a unique strategy must be established to market to the intended target audience. This step of the marketing process is essential, as a method must be constructed that not only will be profitable for the company, but also for the consumers. Market segment analysis is often done to break down the population into smaller groups, so the target audience can be found. * Creating Consumer Value The next step of the marketing......

Words: 3621 - Pages: 15

Free Essay

Old Masters, New World

...In the Gilded Age, newly wealthy Americans began to compete for Europe’s extraordinary Old Master pictures, causing a major migration of art across the world. Old Masters, New World is a look at the cutthroat competition, financial aspect, intrigue, and double-dealing often involved in these paintings. It is also about the power of the amazing paintings that drove these collectors such as financier J. Pierpont Morgan, sugar king H. O. Havemeyer, Boston aesthete Isabella Stewart Gardner, and industrialist Henry Clay Frick. It is a great book about the arrival of the artwork of the Old Masters such as Raphael, Michelangelo, and El Greco in the United States. On one hand, it was definitely about the acquisition of Old Masters paintings from Europe by Americans. However, this book was not about artwork at all; instead, it was much more about the people who bought the art. The movement began when these extremely wealthy people bought very expensive and exquisite paintings. They bought these works of art for people to admire their wealth and taste. Old Masters New World is about the Americans of the late 19th century who found themselves interested in bringing the art of the Old Masters across the ocean. Saltzman does her best to give each of these people a voice and personality, to bring them to life for the reader. You will get to know each of these people and their histories. While there is definitely a discussion of art, the book is much more about the world of art......

Words: 579 - Pages: 3