Do you agree or not? Also give your opinion about it and prove it by example and evidence
- When you answer the question make sure your answer discusses the functional areas including: accounting, finance, production, and research.
- To answer the question use this book MKTG by Lamb, Hair, McDaniel
I support the decision by Mercedes to advertise cars to college students as a viable potential market. The reason for support is that some college students provide a ready market while others can provide relevant data for future planning.
A small number of students can purchase the cars leading to increased market for Mercedes. College students from affluent families may be attracted to the features of the cars and request parents to purchase as their first cars. For this reason, marketing to college students will create an immediate revenue stream for the company. While some students may have purchasing power or petition their parents, they belong to a small percentage. The revenue stream from such sells may not even be enough to meet the cost of advertising to this market segment.
Based on the above fact, it may seem that the decision by Mercedes will lead to wastage of financial resources. However, it is necessary to note that by college years, most students have already started to think about their dream cars. For this reason, Mercedes can conduct the advertising as a part of a long-term plan to influence the future choices of the college students. Marketing to college students should be perceived as part of efforts to understand the external environment of the company, which is part of efforts to intelligently plan for the future (Lamb, Hair, and McDaniel, 2011). Those who are not able to make an immediate purchase may be persuaded that Mercedes brands are the best for young generations. Marketing to millennials is not a new thing as companies seek to understand and address the unique needs that influence their preferences. Companies that are not addressing the needs of millennials will in future find it difficult to attract customers since this market segment will control significant financial resources in the coming years. As a result, the advertisement to college students makes sense since it will be a learning period for Mercedes that will ensure long-term success even if a small number of students will make immediate purchases.