Ch. 7: Business Marketing

When it comes to business marketing, Audi, a company which already possesses a high amount of success and much prestige, doesn't always necessarily seek to increase sales, but instead they simply want to maintain and/or enhance their image as a respectful, quality-driven, and philanthropic entity. Examples of these can be found all over the world, from Audi's involvement in many German music and arts Festivals, the sponsorship of skiing, soccer, and our sports teams. Audi partenered up with FC Barcelona, arguably one of the most successful soccer teams of all time, and allowed each of the players to choose an Audi that they would like to drive. One of Audi's biggest endeavors is their Le Mans racing team, which has constantly been one of the most succesful race teams. All of these examples show Audi's commitment to quality and respect, and they are able to do it without seeming like their only goal is increased profits, not to say that they aren't extremely good at that too.

Ch. 8: Segmenting and Targeting Markets

When it comes to segmenting markets, Audi doesn't really make too many changes to their vehicles, as their standard for quality is extremely high. Of course when they market cars overseas, they have to change the side the steering wheel is on and what not. When they make any car for Europe, the engines must meet the very strict emissions regulations set by the EU. The cars they send over to less developed but still growing countries are usually smaller hatchbacks, or sometimes the same size, but the engines are smaller, as people in places like India don't drive fast, but instead are constantly stopping and starting, which would ruin a bigger, more complex engine over time. Their market, however, remains the same all over the world, as one must pay a certain amount of money for a certain degree of quality. Therefore it is hard for a luxury company like Audi to try and segment, and therefore expand, their target market, because only a certain type of person will want to buy an Audi. Trying to force this kind of product down someone throat is simply arrogant and is an act in futility; if they can't afford it, they won't buy it, and Audi isn't willing to sacrifice an ounce of style and quality. 

Ch. 11: Developing and Managing Products

Audi, having been successful for such a long time, rarely comes out with a "new product" since they have almost always sold their cars at a high rate. Such success would make one think, "Why fix something if it isn't broken?" They have had huge success with their basic A line, and they later introduced the sportier S line. Then later as their target market began to grow, they incorporated station wagons and SUVs for bigger families. Their latest models have been created in response to other luxury car companies making a "supercar", as they have introduced the new R8 line, which comes as a Coupe or a Convertible. As far as I can remember, I have seen the same Audi models on the street since I was a child, they just change the look of them. Now one could say that the exterior of the car is the real, initial product, as that is the only thing you really see. But honestly, anyone could make a fancy body for a car. The real car, and Audi believes this too, is under the hood and within all the wires and driveshafts that make the car actually work. So when it comes to making new products, Audi is all about enhancing the performance of the car. The visual aspect comes second. That's why in all of Audi commercials, they are advertising some new type of technology, be it performance-enhacing or purely for safety purposes. They do always show the car in all its glory, maybe speeding through a dusty desert, or taking on intense curves on a mountainside. This is simply to catch your attention with something beautiful and mystifying. The real information comes after that, when they tell you why the car is able to make such turns, or when they explain to you the new all terrain suspension system that allows the car to grip on the gritty sand of a desert. The chances of Audi making a new "product" anytime soon is highly unlikely, as the success their original cars have brought them would lead anyone to just keep doing the same thing. The real change comes in the product enhancement, because hey, who wouldn't want something that's already good to be even better?

Ch. 16: Integrated Marketing Communications

When it comes to Audi, everything is about personal selling. Yes they create advertisements on TV, on billboards, on almost everything they can. But once you get past the advertisements, and you actually go into a dealership, everything becomes about you. They want to sell you a car, obviously, but they understand how big of an investment a $100,000 car is, so they take the time and the care to make sure you are buying exactly the right car to fit your needs. As I said in the post for Ch. 4, the ads they put out have no real purpose other than to amuse the viewer as well as inform them about some new aspect of their cars. For example, they have a commercial where a snow plow driver describes the new 4 wheel drive Audi as an elusive beast, as he has never had the chance to plow a path for an Audi, since the car can handle almost any terrain. Someone seeing this would be interested in the new Quattro system, but once he goes into the dealership, the sales rep will try to find out what else the consumer wants, and will help him find the perfect size and style car, while making sure he still gets his Quattro system. This is the norm with a lot of car companies. They advertise a new feature so you come in to a dealership to ask about it, and then the sales rep do all the rest. So all the "noise", that is the other billboards and radio ads and brochures they hand out, really doesn't serve any other purpose than to remind the consumer to go to a dealership, because once you are there, they almost make you want to buy a car.

Ch. 10: Product Concepts

Audi's product mix consists of 33 automobiles. Within these 33, there are 5 different categories (The A line, S line, Q line, TT line, and R line), which we call the product mix width. Even within that, there is the product line depth, which are the different models under each line. With such a variety of cars, it seems impossible that someone wouldn't be able to find something that fit their needs and desires

Audi's A line is their basic car, ranging from the A4, which is a small 4 door luxury sedan, to the A8, which is the majestic, long, highest end luxury sedan. The S line is a little more sporty, and has 2 doors instead of 4. They also range from 4 to 8. Within both the A and S lines are the station wagons, which also come with All Road Capabilities. The Q line is the SUV line, which ranges from the smaller, sportier Q3, to the goliath 7-seater Q7. Their original sports car line is called the TT line, which are smally, zippy 2 door sports car, with the convertible option. Finally, their newest line is the R line, which only has one model (the R8) but the product line depth offers a coupe, or a convertible. 

When it comes to packaging, cars are an interesting topic, as the packaging for the car is, in fact, the car itself. Therefore, the car serves as both the product and the package, making the design of the car so much more important. Audi has perfected a new sleek, kind of mean looking car, as the headlights now resemble the eyes of a predator, and coupled with the growl of the engine, Audi's seem like some sort of majestic beast. 

Ch. 18: Sales Promotion and Personal Selling

In terms of sales promotion, Audi itself doesn't do much, as the sales promotions and deals offered only happen at the dealership level, and Audi dealerships are franchises. Therefore, it is up to each individual retailer to create sweepstakes, discounts, and other incentives for people to come by the dealership and hopefully buy a car. These kinds of deals vary from dealership to dealership. However, cars like Audi, BMW, and Mercedes, usually don't rely on these kinds of promotions, as they have already made a name for themselves in the world of automobiles, and are held in such high regard that people are willing to forego a deal or a coupon to have a car that is also a status symbol. Therefore, Audi's main focus is on personal selling. The whole experience of going into a dealership and talking to a sales person is the definition of personal selling. Usually, the minute you walk into dealership, someone approaches you, tells you their name, and begins asking you questions about who you are, what you are looking for, and what car fits you and your personality the best. In most cases, this person will be your liaison with the Audi dealership forever, assuming you by a car. That person therefore grows to know you, and is the ideal person to work with if you have any problems or complaints, as that person is almost a friend to you, based on the relationship they have established through professionalism, courtesy, and understanding of their customer. This is essentially the definition of relationship selling. The salesperson will always be "your salesperson", and you will very rarely have to deal with anyone else (unless they get fired) on any issue regarding your car. This is a relationship rarely found in the world of consumers and sellers, but when it comes to such a large investment as a car, this kind of service is expected and demanded by everyone. 

Ch. 17 - Advertising and Public Relations

Audi, like most other luxury car brands, is in a weird place when it comes to who they advertise to. Their target market is clearly set as people in the upper middle class who can afford a car that runs between $60,000-$150,000. Therefore, they can't really advertise to anyone else BUT that one group, because no matter how much someone might want an Audi, if they can't afford it, they can't have it (unless of course you buy a used one, but Audi wouldn't be trying to advertise an older, out of date model). This makes their lives a little bit easier, and allows them to focus more on the style and execution of their advertising and less on who they're focusing on. Recently, Audi has employed a funnier, more satirical feel in their commercials, like the commercial where a snow plow driver talks about the new Audi A8 Quattro (with 4 wheel drive) is like a wild beast that constantly evades the plow driver, much to his chagrin. Audi and BMW have long been in an advertising war that pitches each company's new car against the others, mainly their sportier cars. Below is a billboard they made in response to BMW saying they had just won World Car of the Year.

In terms of public relations, Audi is very active in positive promotion for their brand while also showing their belief in social responsibility. Audi has been a strong supporter of the  Elton John AIDS Foundation, and they recently put up two Chrome Audi R8's (the R8 is their most expensive car, and one of the best super cars on the market) which brought in almost £650,000. Last year they teamed up with Tom Brady, quarterback of the New England Patriots, and the Best Buddies foundation. They managed to raise about $350,000, a sizable contribution to the $36 million the pairing has amassed in the last 4 years.