Study of model use for determining potential company sales and company decision behavior for Mazda of Stillwater as viewed from a marketing research perspective

Abstract

Purpose of Study: The purpose of the study was to examine the potential sales of a newly franchised automobile dealer in a relatively small community such as Stillwater, Oklahoma. In order to accomplish this various marketing models were examined after the economic environment of the nation was analyzed with particular emphasis on the recent developments brought about by the energy crisis. The overall tone of the study was one of guarded optimism. The optimism was shown in the industry model where sales for the entire automobile industry were examined and small car sales were seen to be on the rise. The operation and expansion of the Toyo Kogyo Company of Japan was covered in the company model. The company started mass producing rotary engines in 1967 and marketed them to the Mazda automobile. Mazda's competitive position was examined the competitive model. In this model, Mazda's relation to the industry was analyzed and the entry of other automobile manufacturers into the rotary engine field was explored. The costs of inventory acquisition and storage were presented in the channel model. Then the market share model for Stillwater was given. The model viewed the demographic characteristics of the community as they affect advertising and market strategy of the Mazda dealer.

Findings and Conclusions: As the energy crisis has taken its toll on the economy, the American public has turned to small cars as a means of reducing gas consumption. Small car sales account for more than 50 percent of all autos currently being sold. Mazda, since it was introduced into the U.S. in 1970, has experienced phenomenal growth in sales which should continue in the future.

Mazda's sales in Stillwater, however, have been very slow. If this Stillwater dealer is to prosper, he must alter his operations and aggressively seek to expand sales through the judicious use of advertising and salesmanship. He must overcome a poor location, find a qualified salesman, and establish a firm advertising budget. If he continues operations as they are now, his business survival is in jeopardy.