Proton Malaysia Company Case Study

1. Introduction

1.1 Purpose

The purpose of this report is to get all of the management employees of Proton in all of the departments outside marketing to familiarize with what marketing is and also to show its importance in the company.

1.2 Background

Proton is the biggest Malaysian automobile manufacturer. Proton automobiles are available in many countries such as China, Singapore, Australia, Algeria and United Kingdom. Proton has commanded the local automotive market, and will continuously dominate in the pursuit of being ‘Customers’ Number One Choice for Automotive Products and Services’ (http://www.proton-edar.com.my/company_info/overview/company_info.php?currentSceneSec=0101&currentScene=0100&currentButton=1).

1.3 Scope

Getting to know the definitions of marketing and also the importance of marketing and how does it contributes to the profitability of the company.

1.4 Method

Information has been gathered through research of websites, journals and books as well as own interpretation and ideas on how marketing is seen important in contributing to the profitability of the company.

1.5 Assumptions

It is assumed that other management employees in other departments of Proton, who have no or little idea about marketing, would be able to understand the importance of marketing after the report is read. It is also assumed that the profitability of the company will increase after reading the report.

1.6 Limitations

The limitations are mainly the inflexibility of time and also the amount of research that needs to be done to write a good report.

2. What is marketing?

Marketing is a very general term that has no specific definition to it. However, it is best described as “A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others” (Kotler, Brown, Adam and Armstrong, 2004, p919).

It is an understanding of how the company works with its consumers and how it generates in the society. Marketing is seen to be the process of ‘bringing in the businesses’. It is not seen to be an alternative, but a necessity (Forsyth, 2004, pg34). Many people consider marketing as a tactic. However it is more than just a tactic. Marketing is analysis. According to Allen Weiss (2002), marketing is the analysis of customers, competitors, and a company by incorporating the understanding of competitive analysis and company capabilities into a general understanding of what the existing segments are.

It is crucial in marketing to have a clear knowledge of the needs, wants and demands of the consumers. To achieve this, market research is carried out. By going through a market research, Proton can find out more information on what consumers think of Proton’s product. Upon getting the information, Proton can make adjustments and improve products to satisfy consumers’ needs, wants and demand.

3. Why Marketing is Important

“Marketing management is accomplished by carrying out marketing research, planning, implementation, and control” (Kotler, 2004). Marketing plays a major role in every business. It is very important as it contributes to the profitability of the company itself. “Relationship marketing involves creating, maintaining and enhancing strong, value-laden relationship with customers and other stakeholders. “They must build strong economic and social ties by promising and consistently delivering high quality products, good service and fair prices,” (Kotler, Brown, Adam and Armstrong, 2004, p11). Furthermore, when both customers and producers are mutually beneficial from this relationship, profitable transactions will follow. Knowledge of marketing strategy and market research is crucial in order to excel in marketing.

3.1 Five key factors to an effective marketing

Forsyth (2004) stated five factors which summarizes the effectiveness of marketing.

a) Customer oriented. Company needs to focus on the wants and demands of the consumers. Profits come only after the consumers are satisfied.

b) Continuously deployed. Marketing must be ready all the time as the company operates.

c) Effective coordination. Marketing must logically co-ordinate its activities