Chapter 7. Business Marketing

Business marketing is described as the marketing of goods and services to individuals and organizations for purposes other than personal consumption. In business' it is shown that social media and electronic. For  business' to succeed they much be committed and be able to be trusted in order to build relationships. Ferrari is a strong company because of its known brand and good relationships hey have with many countries around the world. They are outstanding in their own ways such as their products that are combination of beauty and aesthetics combined with a unforgettable experience you get as you get in the car and drive off. They take on new challenges on a consistent basis with a positive attitude & that they are well taken care of and have a satisfied work-force that are proud to represent the company. It is known in most businesses that they tend to purchase more then the consumer asks for but with Ferrari they have consumers asking for more and more. It is always better to make less of something so that the consumer will be anxious of what is next to come for them to get their hands on.

Chapter 8. Segmenting & Targeting Markets

A market is composed of individual or organizations that have the ability and willingness to buy. These purchases  fulfill their needs and/or wants. In this chapter we focus our attention toward market segment in which is a group of people or organizers that share one or more characteristics that causes them to have a similar need in a product. In geographic segmentation it categorizes the people by region of the country , market size, market density or climate. In Demographic segmentation it looks ate the age, gender, income, ethnic background and family cycle. Ferrari knows who they will target and who they should more focus on. Everyone gets the attention of their company and the work they have done but not many are financially ready to own one. Ferrari opens their stores and certified dealers in areas of which they know they would attract the right people to sell their product too.

Chapter 11. Developing and Managing Products

A new product is a product that is new to the world, the marketing, the producer, the seller. new products are important to sustain growth and profits and to replace obsolete items. Ferrari produces about 7,318 in this past year as they try to produce and design a car that makes it different from the previous one. They have been very successful, so sucessful that Ferrari thinks they sell to many cars and are going to cut down production to about 7,000. There is no doubt that there is a high demand for this line of cars but why would you cut something down when it would only make your business grow? Ferrari chairman Luca Cordero Montezemolo told reporters the reason for this was " to protect the brands exclusivity."

Ferrari has its own product development center located in Maranello, Italy. This building plays a role for Ferrari, showing that they are stable and mature and serious about their company and the needs. Ferrari doesn't just make a product and stick it right in its street legal cars and let it hit the market, NO WAY! That's why they use their F138 in formula races to test their products on how they would function as a car but when its pushed to the maxium speed how it affects the car and passenger with it. their developments consist of little minor new innovated parts on the car to making a new product, in the end they product products to help the consumer. For example Ferrari just recently came up with a new product that was a sidepod panel with a side bridge bending over the sidepod shoulder. You may ask how does this make it such a big product. When it comes down to automotive every inch of the car is a product itself alone its built and produced differently then all the others and they all play different roles in making the car what it is and how it runs. The product Ferrari came up with is designed to better control the airflow over the sidepod in a attempt to enhance the way the coanda exhaust works. This in simpler words means with a car comes responsibility in which the driver may not be able to control, this is a way they regenerate how the air hits the top of the car making it so that in such bad case that it would smooth over the sides and not interfere with the driving itself, making this safer for he consumer.

Chapter 18. Social Media & Marketing

Social media is a good way to communicate in a quick way and modern way in the world now, but gives marketers a way to use to their advantage.
Ferrari has become the main protagonist even on social networks. Social networks are a way for people to show others what is going on around the world without having to be there physically. Ferrari is the King of social media. Understanding one thing that they don't advertise or plan to ever do that. They get advertised by others motor vehicle magazines, videos on youtube, photos people have taken and shared on the Internet for others to view and acknowledge, with twitter and Facebook. Keeping people updated with the latest in cars and formula races that they run. The brand of the Prancing Horse is the leading player in the automotive sector and the most popular in general classification. They are claimed to Crowned the King is social media just because on they have the highest numbers on google that the search giant's media platform is worth investing in. Their website Ferrari.com is visited by millions of visitors every month in seven languages. With all this attention they are getting you ask what must they be doing right beside being truth worthy, recognizable, and a glamours worldwide icon, well they dedicated accounts to their various departments and events and stay extremely active with posting photos, videos, news and even up to date with the races that go on at the time providing fans with opportunities to share most of this stuff and have it viewed by others and so on, giving Ferrari a look that none could forget!

Chapter 10. Product Concept

A product concept can play a vital role in the new product development. In this chapter we focus on the product itself, they are not only tangible but they play a good role for service. Product itself is broken down to two different categorizes, business product which is good use for manufacturing other goods and services & then there is consumer product which satisfies a individual personal wants.
Ferrari falls in the category of business product and not much of consumer product.

Ferrari uses product concept in order to receive feedback from consumers as to implementing and and furthering the proposed concept. They then try to use the feedback and apply it to the idea of the next new product idea.

With people being more awake of the environment, Ferrari is slowly taking steps to make themselves more Eco-friendly. They recently reveled their new Eco-friendly car the Ferrari 599 Hybrid. They released this car as a concept vehicle but just as product concepts it serves a image of what they will be doing to improve the future step by step.

Chapter 17. Advertising and Public Relations

Ferrari has 51 stores and dealers in the United States, and 206 in the international and provide dealers and apparel via the Internet to every country in the world. This makes it accessible for buyers to view their product and others before making a final decision. This allows the customer to build some type of relationship with the company and its product itself. Personal selling is highly important for companies, which makes this important for Ferrari. Ferrari's are high value, technically complex products, you would need someone knowledgeable to guide you through the car itself and help you understand what you will be consuming. In the textbook it states that there are seven steps to the personal selling, generating leads, qualifying leads, approaching the customer and needs, developing solution, handling objects,closing sale, and last following up!

First you are required to set up a appointment with the dealer and well you would have to have a proper dress code to yourself to be taken serious. Next step is if you are not escorted out by security then you start to negotiating the price with the dealer, choose the model that you like best, paint interior and even have it personal customized to your desire and the dealer would be gladly to accompany your needs. Then you can start to negotiate the price and/or pay the down payment and wait a year till your custom car is delivered. If the way is to long for you and you would want it sooner Ferrari would gladly sell you one of their preowned ferraris on the spot in which would be running as brand new.

Chapter 16. Advertising & Public Relations

Who has the best advertising, promotion, public relations & social media? This cannot be answered but us as people are surrounded by ads that go from cat & dog foods, to clothing, toys & cars that are always around us. Ferrari market's its product to a group of people in which they know can afford their product of cars. They also showed on TV shows such as "TOP GEAR" in which a professional driver takes the car out for a test drive and breaks down why the car is so good.

Ferrari is one who believes that they don't need to be advertised much, hence why you don't see any Ferrari TV ads. Ferrari's success is measured in Brand Name & their Product value. Ferrari has not spent a penny on advertising, but as a brand they possess they wouldn't need to put their product out in public. Enzo stated from the beginning that the company would not advertise, its their philosophy.
Scuderia Ferrari Marlboro commerical department head Philippe Tardivel explains that " When we launch road cars,we usually organise conventions for our dealers. We also have events for our selected community. after the launch it follows up with a press launch and then a test drive for the media."
According to Ferrari total sales rose 5.4% to 6,573 units in 2010 making it a new record for the company. The media is one way Ferrari gets its advertising out, by having the media around as the cars are being launched gives them a good look and by test driving it shows that they care about how they are presented. With social media like blogging, twitter, Facebook & instagram all in which Ferrari has, is a way to keep people posted, weather you are looking to buy the car or even just to keep up with the company and car business itself Ferrari will provide you with all the answers.

Chapter 14. Retailing

Ferrari store, New York
410 Park Avenue ( 55th street & Park ave)
New York, New York 10022













June 24 ,2010 was the opening of the first Ferrari store in New York. It was official, not only was it a location steps away from the top 2 biggest avenues of shopping but it didn't only display its cars but all the apparel. The Italian architecture and designer Iosa Ghini designed it in a way to make you feel as if you walk right into the racing tracks with the formula one car and its colors or red black and white, but also be able to fit the street cars a 59' 250 California, 84' GTO, Brand new 458 Italia, Ferrari California, 612 Scaglietti and a special limited 599 GTO. As of 2010 this was the 37th store to open worldwide. This was a huge deal for Ferrari since it became a strong element of attraction to people around and to Hollywood actors as well. The bright color of the exterior as well as the wide windowed display catches your attention from a few block away.

Ferrari stores aren't the only place you can shop for your matching outfit to your car they provide a worldwide online website Ferrari.com for all your needs to be fulfilled and it ships to every country on the world!!!!! In recent news Ferrari has decided to make it's self more friendly and sign a agreement with ABC Spa a Italian company producing travel accessories and luggage. For Ferrari their main eye with all these stores focus on products, location, customer service and presentation. They slowly are expanding their stores become more worldwide as to the customers needs. Once you walk into a Ferrari store you understand the elegance of people and the experience and knowledge they offer you so that you become understanding with your product. Every store is unique in its own way of design and how it is presented with its amazing display but gives you the luxury of viewing different and special cars.

Chapter 6. Consumer Decision Making

Consumer behavior is when the consumer makes purchase decisions, this is very important for marketers to be able to sell their product to the targeted customers. Ferrari wants to be able to have the customer not question its decision on why he should get such car but walk in knowing that they want it by its glamour of looks and speed ability. What drives customers to get a Ferrari? simple its for the name and beauty. As Enzo Ferrari quoted "no one remembers who took second place, and that will never be me." Ferrari believes that to be the best out there you must need to be consistent and known.

Ferrari does not only find a way to just sell customer's cars but also make it into a family business. As kids see their parents in a luxury car they dream that they also can drive around like their parents, and what better way then to make a mini Ferrari. It gives the company a better expansion as the kid slowly grows up and know he wants the car with the horse on it as a logo or the car that they always played with and saw on TV and magazines. They don't only target people in a car way but also in clothing. You can get your Ferrari apparel and accessories(bedsheets,pencils,posters, watches, key chains, sunglasses, sweatpants, tee shirts, etc.) you can find that logo on any Ferrari merchandise and because of the recognized logo you end up buying the item as more of a name&brand showoff. 30% of people who buy Ferrari's do it out of a desire of want since it seems like a product that would satisfy their unfulfilled need.What other way to have the attention as humans that we need then get a Ferrari and drive around in style and speed.

Chapter 5. Developing a Global Vision

Global marketing is a type of marketing in which it targets marketers throughout the world in order to expand the company. Ferrari has become international not only in its native Continent Europe but has traveled to India, Dubai, Japan and the biggest marketing place for the company it's self U.S.A. Over the past decade Ferrari has been able to boost up their sales from about 4,000 to 7,200 in 2011. It also gives the company a positive look on job outsourcing, the more the expand the more jobs it will require to be filled in with people and it leads the company to corporate growth.

 

Despite Ferrari's marketing factors that include globalization which causes the company to deal with more international competitions, accelerated modification and diversification of the product portfolio in which the automotive industry you would go out and change your car for a different every 8 years now days it ranges from 2-3 years and that becomes tough for Ferrari since their quality in cars is something you wouldn't need to replace in 2-3 years even more & also increased pressure for innovation and flexibility in development and manufacturing. Ferrari has been able to overcome these challenges and has strengthened the brand on a global scale. Ferrari's innovations have changed within the past 2 decades but three important things will forever remain the same, the extreme technology, the beauty of design & the emotion of driving. Marco Mattiacci the CEO of Ferrari North America explains how Ferrari doesn't just grow in numbers but in culture.In this year of 2013 Ferrari has sent out 1,436 cars to the US and Canada, up 14.5% , and sending 542 cars to China,Taiwan & Hong Kong. China has now become Ferrari's second largest market.

The company then saw record revenues of 1,605 million euros in 2011 which went up 18.9% from the year before. According to Montezemolo who is the chairman of Ferrari, the company is deciding to boost the production to 10,000 cars in 10 years, increasing the amount of available Ferrari's. Now a days in the you can get a brand new Ferrari that goes for  $200,000, which is the cheapest price but it is still provided with the best of quality Ferrari has to offer, the desire of the brilliance behind a Ferrari will make you never want to own any other car.

Chapter 4. The Marketing Environment

Ferrari is known for luxury and high cost in cars. They have a set of unique cars compared to their competitors (ex. Lamborghini, Audi, Nobel) to which you will know instantly it belongs to Ferrari by the way its designed on the outside to comfort the drivers. Ferrari's target marketers want one message to be heard how big it is on brand value and product value. It targets the more higher class audience by the price range it sets but not like any other auto company it only makes  certain amount of cars to be sold on the market.

They not only try to target us as car owners/drivers to get their car but compare it to today's technology that we all use, a cell phone. They quote it as " Two iconic brands, One passion" stating to the public that they are technology friendly.
Ferrari's social factors include having a positive attitude in toward selling to the people, making sure that their buyers know the reason why they want to get the product, what makes it unique?
The prices are expensive for Ferrari but in order to get a product that lasts a decade and more you will have to be willing ti pay the price of a long time product.
Customers can purchase a Ferrari at a Ferrari store( almost one in every big state) , or their online site and even internationally Ferrari has grown all over, expanding their name to be known.

Ferrari's demographic factors are somewhat shown in their products. Their product is efficient for anyone  of any age, race, ethnicity and location. They believe in making their product capable for the streets of new york to the smooth long hot roads in Florida all the way to Europe where they have perfect roads with no marks. This gives a strong message to buyers in any place that their product can work anywhere.

Now what happens when the Economic factors kick in. Incomes, inflation and recession don't stand strong against Ferrari. With its well reputation Ferrari takes a risk in making cars so that their customers are satisfied and understand the quality they use in their cars.

Technological factor is well used with Ferrari. In order for them to supply you with the product they advertise they need the best technology not only to put it together but to make the car as safe and friendly as possible to their customers. They check every tire, every engine, every muffler to make sure that they are equip with the best.

Chapter 3. Ethics and Social Responsibility

Ethical behavior is truly important when it comes to the marketing world. It gives you a concept of when something is "good" or "bad" It is used to express the distinction between criminal and law-abiding behavior. You must be thinking how does this tie in with a company that is know for it's high speed and expensive cars, well in order for a company of any sort to make it's product it must ask themselves am i making this the safe way that would not cause intentional harm. Well Ferrari as its company that focuses not only on it's formula one cars but their street legal cars. Both need the same attention when being built.

Ferrari uses their technology developed with their formula one cars to improve their street cars.

Ferrari is proud of having their base facility in Maranello, Italy that consists of 45 buildings and a total of 40,000 workers, you can say that they are passionate of what they do and work on. Very recently Ferrari has become Eco friendly with their new Ferrari hybrid car.Now that's quite the mind blowing idea... not only do you get the luxury and speed of a car you admire but now it comes in a higher horse power and it doesn't harm us.

Ferrari is known for their older modeled cars but is that what the people want? Ferrari is a company confusing to understand they are based on quality of cars, more of what's under the hood instead of your interior design. They have long term customers and new ones and as they proceed they give them the best product to make us sustainably. As quoted from the current chairman of Ferrari he says "Ferrari's programme of continues development will never come to an end. The quality of our cars can not be separated from the lives of the people working at the Ferrari plant." He sends us a message saying that Ferrari takes its social responsibility seriously and provides its attention to not only its line of work but the workers involved in it. Ferrari is known for its 3 things - passion - technology -innovation. It gets a high rating on its ethics in the work environment, all its workers work in a safe but cautious place where there are no negative reasons presence.

Ferrari has decided to continue its live on hybrid work knowing that it would make us as customers know that there will be a car on the road that is friendly to our environment.

But why invest in a company that has produced a hybrid car 11 years after the first ever hybrid has been released? Reason is as the years go on Ferrari will not only be providing you the quality but the safeness of a car with upgraded technology and the best quality of what the company is greatly known for, SPEED! 

Chapter 2. Strategic Planning for Competitive Advantage

Competitive advantage is a set of unique features of a company and it's products that are perceived by the target market as significant and superior to those of the competition. It's the factor/factors that cause customers to patronize a firm and not the competition. The three types of competitive advantage there are cost, product/service differentiation and niche.

Years and years now Ferrari has been providing customers with their fast sports cars. Not only do they use their V8 & V12 speed for Formula One races but also as street legal cars for customers. Not only do they put extreme horsepower in such engine but have a breath-taking exterior to match. In the video above you see how smooth the cut is around the car, made for it so that it would be able to move quicker. Equipped with the latest technology, making the cars ride smoother with every turn you make. Not only would you want a car thats fast and smooth and safe but one that would last you for decades to come, one that doesn't require technology that would be outdated within a year.

The Testarossa is one of Ferrari's biggest cars and still one of biggest and best car ferrari has produced on the roads.

Product- Ferrari Testarossa has provided customers with the best quality in a speed car. Not only made it to be used in the future of times but simple, smooth and quick.

Place- Ferrari is worldwide dealerships and provides a online service where you can customize a car at Ferrari.com

Promotion- Ferrari didn't just make their cars street legal but also used the testsrossa in races such as World Sportscar Championship and 24 Hours de La Mans.

Pricing- Ferrari is a top sports car meaning what you pay for is what you get. Ferraris become less expensive as the years roll by but not by much. Ferrari doesn't provide sales but they have become a little more affordable.

Chapter 1. History and Mission Statement

Ferrari is historically known for their manufactured racing sports cars and sponsored drivers until began to make and are continuing to make street legal cars. It wasn't just the style and size of the cars that made them interesting but the speed they were able to go.  Ferrari cars are symbolized as luxury and wealth. In 1929 Scuderia Ferrari (Ferrari Stable) was founded by Enzo Ferrari in Modena, Italy. Not only did this allow owner-drivers to race their own cars, but a start to a sport activity that would later on lead to the creation of a team.
The Scunderia consisted of both Alfa Romeo and Ferrari cars.


Enzo was determined to work with Fiat at the time but was denied by them and then teamed up with Alfa.
During the time Scuderia Ferrari wasn't doing so well for Enzo so he left with purpose to return.

September 6, 1939, Enzo Ferrari decides to leave Alfa in order to begin his own company under the provision that he can not use the ferrari in association with races or racing cars for at least 4 years. His idea was to build a car that would be able to beat Alfa, it was his passion.
September 13 opens up Auto Avio Costruzioni in Modena where the base of Scuderia Ferrari stood.
Ferrari then does what he has been waiting for years for, he built his first ever car in two versions the 815.
In the late 1945 Ferrari designs his first ever Ferrari car with a V12 engine, it is out in the public March 12 1947. Ferrari then continues to build new and new cars with his passion.

1956 Alfredo, Ferrari's son passes away as Enzo was designing the new 1500 with a V6 engine, after his death Ferrari named it and all the V6 engines after Alfredo.

As Ferrari's success grows and his passions become more fulfilled he gets awarded with Hammarskjld prize, Columbus prize, Gold Medal for Culture and Art by the President of Italy and receives the honorary title of Cavaliere di Gran Croce della Repubblica Italiana from Pertini.

Ferrari decided that he needed a powerful partner in order for his cars and company to be able to function right, so he teamed up with Fiat giving it half the shares of the company.
The famous horse symbol came from a women named Countless Paoline whom in the time of 1923 used to paint a horse on the side of air planes a symbol of good luck. Enzo had this painted on all his cars hoping it would bring him good luck. The yellow back round was the color of his birthplace and the colors of green, white and red as the Italian flag.

In 1987 the F40 was the last car to be created under the management of Enzo Ferrari. August 14 1988 Enzo Ferrari passes away. After his death Fiat took over Ferrari and till this day produces Ferrari cars the were improved versions of the old Ferrari's the Enzo created. In 2003 as symbol of the original creator himself Ferrari launched a car that was named as Enzo Ferrari.
Ferrari is still present and are continuing to make what they are well known for, super cars. Enzo's mission was to build cars as susses to himself, to his name. Ferrari's are worldwide and a top popular car for many. In this Mission Ferrari's values : be creative, have determination and motivation, make a bold image with you're products, aim for the excellence in you're product, and do the best you could. With time and the right determination you can make it to the top. As quoted by Enzo himself 'If you see what a competitor is doing and it is better then what you are doing, you have to surpass them to ensure you're cars are better."