| Creating Competitive Advantage 549
Chapter 18 | Creating Competitive Advantage 549
More fuel-efficient vehicles (including electrics) will also help posi- GPS location. If the driver is in the mood for some Dave Brubeck, tion Ford to meet stricter government fuel-economy standards.
“I’d like to hear some jazz,” brings up every piece of jazz attached to the car, whether it’s on a smartphone, iPod, or netbook.
Market Fewer Nameplates. According to Mulally, the “more is All this is not only cool, “it makes you a better driver,” claims better” rule is not a good branding strategy. When he arrived at
Mulally. His first commandment is, “We won’t do it unless it lets Ford, the company sold 97 nameplates around the world. To him,
you keep your eyes on the road and your hands on the wheel.” that was just an indication of how unfocused and uncool the Ford
This will actually make people less likely to fumble with their tech brand had become. “I mean, we had 97 of these, for God’s sake!
gadgets or even look down to adjust the radio or air conditioning. How you gonna make ‘em all cool? You gonna come in at 8 AM and
Sync was already in development when Mulally took over. But say, ‘From 8 until noon, I’m gonna make No. 64 cool? And then I’ll
he surprised everyone when he announced that Sync would be make No. 17 cool after lunch?’ It was ridiculous!” Mulally’s goal was
the future of the company. And he insisted that it be available in to bring the number of nameplates down to 40 by 2013. But in-
all Ford vehicles, not just the high-end luxury products. In this re- stead, it has been trimmed to just 20 as of 2010. This thrills Mulally.
spect, Mulally sees Sync as a way to do what Henry Ford did in the beginning. “Democratize a brand new technology. Make it avail-
Become Best in Class in Quality, Fuel Efficiency, Safety, and
able to the masses.”
Value. The smaller cars are certainly achieving the fuel efficiency goal. But Mulally has the Ford culture once again thinking along
SIGNS OF LIFE
the lines of its old slogan, “Quality is Job One.” This focus has paid Mulally’s original goal was to turn an annual profit by 2011. That off. Last year, Consumer Reports recommended more Ford mod-
profit came two years early in the form of $2.1 billion for 2009. els than Toyota vehicles. The Fusion beat the Toyota Camry in the
Ford’s market share is on the rise. Its stock price has increased magazine’s reliability survey. And Ford took both “Car of the Year”
700 percent from a 52-week low. And customers are paying and “Truck of the Year” honors at the Detroit Auto show with its
more for Fords without the huge discount incentives that the Fusion Hybrid and Transit Connect. “Our product lineup is
company ran for many years. As just one indication, Taurus sales stronger than ever, and our leadership in quality, fuel, safety, smart
were up by 109 percent in 2010 over the prior year. Customers paid design, and value is resonating with consumers,” Mulally says as
an average of $30,322 for each one, a transaction price that was if reciting his own mission statement.
$850 higher than a Toyota Avalon and a whopping $6,300 higher than the prior Taurus model.
Ford is back on track but far from out of the woods. Because In his quest to redefine Ford’s image, thrill young customers, and
A NEW COMPETITIVE ADVANTAGE
it didn’t take the government’s bailout, it has a heavy debt bur- even revolutionize the car itself, Mulally may very well have stum-
den. GM and Chrysler are emerging from bankruptcy with clean bled on a competitive advantage that will carry Ford into the fu-
balance sheets and are on the warpath. And it isn’t clear whether ture. He wants to connect his autos to the Internet and the souls
Ford can make as much profit on small cars as it did in the past on of the people who surf it. “Look, it’s cool to connect. But it’s past
high dollar trucks. As positive as he is, Mulally also worries about cool. It’s a reason to buy. Tech is why people are going to buy Ford!
the global competitive environment. “Global economic conditions We’re going to be the coolest, most useful app you’ve ever had,
are improving but remain fragile,” he said, pointing out that labor seamlessly keeping you connected.”
markets are weak, credit is tight, consumer spending is depressed, Mulally is talking about Ford’s Sync option. In short, a Sync-
and oil and other commodity prices are rising. All this leaves in- equipped vehicle connects the driver to the Internet through the
dustry observers and consumers wondering whether or not Ford smartphone in his or her pocket. Unlike GM’s OnStar and other
can return to the prominent position that it held for decades. similar systems, Sync is an interface, not a system that is hardwired to the car. Those other systems are obsolete by the time they hit
Questions for Discussion
the showroom and are not upgradable. With Sync, the connection
1. Where would you put Ford in terms of competitive is to whatever technology the driver is carrying. And folks tend to
position? Why?
keep their gadgets pretty up-to-date. But Sync takes existing technologies and makes them even bet-
2. Is Ford a market-centered company? How can it improve in ter. With two LCD panels on either side of the speedometer, the
this area?
user interface is bigger, in the driver’s field of vision, and customiz-
3. How does Ford’s Sync contribute to its competitive able. If you don’t need to know about the car’s climate but you’re
advantage? Is this a sustainable advantage? lost, the climate-control readout can be replaced with navigation.
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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