Page 3: The changing marketing environment
All businesses operate within an environment of change. One of the most important aspects of change is change in the market place as customers become more demanding.
Marketing is the process which involves identifying existing customer needs and requirements and with anticipating future changes. It is therefore a dynamic discipline. The marketing environment for most, if not all, products changes regularly. The challenge facing the marketer is, therefore, to find out as much as possible about this changing environment so that the business can respond in a appropriate way. This remains true for any company regardless of the industry, from a bottle of car oil to a Fast Moving Consumer Good (FMCG) such as a bar of chocolate or a packet of soap powder.
Because Castrol products are designed to complement high quality engines the company works closely with Original Engine Manufacturers (OEMs) such as BMW, VW/Audi, Ford, Jaguar and Toyota to develop high quality lubricants that are tailored to meeting the requirements of modern engines.
Castrol's marketing research therefore involves finding out detailed information from both the OEM's and motor vehicle users. The desired result of the research is to produce and supply the best quality high technology oils to meet the needs of modern engines.
The marketing environment in which Castrol operates is constantly changing because:
- New engines are continually being developed by the engine manufacturers with new specifications and requirements.
- Government regulations regularly change. For example in recent years UK and European regulations increasingly require engines to be cleaner and to help to create a cleaner environment.
- The world is becoming wealthier, and increasingly modern consumers require more sophisticated motoring products. More and more consumers are buying more luxurious and sophisticated vehicles. To complement this purchase they require the best quality oils.
Castrol's response to these changes is to provide oils which are technically superior to anything else on the market, and which are market focused.