The Effects of Marketing Mix (4P) on Companies’ Profitability: A Case Study of Automotive Industry in France

Abstract

The goal of this research is to investigate the impact of marketing mix strategies on companies’ profitability in the automotive industry in France. Therefore we will be able, by establishing the relationship between the efforts of the implementation of marketing mix strategies and their actual outcomes on that specific area, to obtain marketing mix determinants and demonstrate the interaction among related variables. All these will provide a better understanding of the sector and find points where improvements may be necessary. Data used were secondary data and where taken from papers and reports concerning the automotive industry in the world and in France. The product corresponds to the number of models belonging to each car makers which are listed among the 100 favourite vehicles at a given year. The average price of passenger cars by brands is used to estimate the price. The number of primary dealerships in France is used to estimate the place and the advertisement expenditures for the promotion. Findings demonstrate that the product, price and promotion are the most important factors that car makers have to take into account and that place must be carefully investigate before taking decisions.