With the recent data showing the auto industry as the #2 digital ad space buyer, I felt it a good time to write about some of the basic elements of automotive marketing, an area I have been involved with since early in my career.
Automotive is defined as an industry with a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. Automotive marketing consists of advertising and marketing strategies for the selling and trading of automobiles. Automotive industry can be either for personal use, aiding in business activities like delivery vans and other public services.
The automotive sector is a intensely competitive place to to grab market share, so it demands special dedication and perseverance. Skilled marketing can and does make the difference. It’s a rare field where being effective is not enough. If you are merely “effective” then you can be sure your competitor will be getting plenty of your business. When it comes to automotive marketing, you have to be the finest if you want to make a powerful effect. A competitive edge is provided by automotive industries. This indicates that you are distinct from your other competitors. Automotive marketing is a powerful way to increase brand exposure.
Automotive marketing requires the promotion of the motor vehicles through auto television ads, digital ad units, billboards, newspapers, social media campaigns, and showrooms for automobiles. To make better and improved marketing decisions a marketing approach is essential for best results. Now before starting any marketing campaign preparing a marketing approach is necessary.
A successful market strategy requires clarity on the following elements;
The cost of producing and promoting the automobiles should be kept in mind. This assists the owners in reducing chances of risks and further helps to apply the marketing strategy. Since a pre-planned cost effective marketing strategy will lead to the business running efficiently and there will be increased profits for the owners. The production costs should be low or enough to overcome the selling price for increased profits.
- Target Audience:
Every business needs to examine the consumer’s perception of the company’s product or product range. In order to have an exceptional outcome the demand and the changing trends in the market makes it necessary for the business to have a set target audience. For example race-inspired cars may be targeted on young audience while family vans will be targeted to and older aged audience. This depends on the nature of the business that which audience it wants to captivate.
The Hemi engine ads helped Dodge reach young male truck buyers
- Advertising Medium:
Promoting a product is a very critical issue. It consists of costs, audience and to choose that which medium it will be represented through. An appropriate medium would be in which it can reach to maximum customers and persuade them to avail their product. Often automotive marketing of automobiles are put on display through television ads, billboards, internet and magazines. Frequently television ads are more preferable since they can reach utmost consumers but it is also extremely expensive. However, magazines are quite inexpensive but this mean of advertising does not reach a maximum number of customers. This entirely depends on the company’s budget on how and where they prefer to spend the advertising budget.
Automotive marketing has intense competition. This is essentially because of new innovative automobiles introduced. Technology has increased its pace and new rising market trends which are making it difficult to survive in this industry. Competitors find different ways to promote and sale. This makes it challenging for some businesses to compete against them. An advantage of such competition can route to a more efficient business and update the business activities. This can also encourage the business to promote and sell their product more than before.
- Legal Formalities:
Every business has its legal issues which must be examined. They mostly include the legalization of cars or bikes so no further controversy is taken place in purchasing or selling of the business. Legalizing the business is necessary so there will not be a further problem in any business activities.
Following these steps will result in exceptional automotive marketing success. This will guide the business for preparing and implementing automotive marketing. The market strategy can be an essential guide for all the complications faced by automobile companies. This has been proven the top automotive industry in the world, China which has nearly twenty-two million sales followed by America and Japan. It has a very high percentage of sales revenue about approximately 65% followed by LATAM 47%, Africa 45% and USA with 34%.China is the market leader in the automotive industry. This is due to China implementing the market strategy and availing any opportunity that they are given for expansion of their automobile business.
The future prediction of increased demand and trend of automobiles lead to the following assumptions. The global state for selling of cars is that 65% of global consumers plan to buy a new or used car in the upcoming year. The strongest auto demand for will be 75% for Latin America and Middle East/Africa, followed by Asia 72%. Online consumers in North America (56%) and in Europe plan to buy a new or used car in the next two years. When it comes to new cars, Asian respondents say that they will buy 65% in the next two years, comparing to the 7% that plan to buys used cars. Online consumers in North America (56%) and half in Europe plan to buy a new or used car till the next two years. Producing cars in an automobile industry is a $1.6 trillion profit a year in a global industry, it produces two ton machine with more than fourteen thousand parts from a global web of suppliers nearly every five seconds. However, automobile owner’s profit margin typically hovers around how the economy is running and how the new market trends are prevailing.
The market demand changes with the variation of the products and product ranges. Automobile companies add value to their products to generate more efficiency and increased profit margins. This gives the product and attractive appeal and persuades the consumers to buy the cars. The target audience is to be kept in mind in order to achieve appropriate results.
Here are some of the market trends about to be launched in America:
- Cute UTEs:
This is a new car-based sport utility in 2015. These tiny but flexible crossovers are targeted at young, urban explorers. These compact SUVs have huge global potential.
Competition in the pickup truck segment has never been more intense, with U.S.A automakers urging for supremacy in both performance and fuel. The Japanese are not giving up, either, with both Toyota and Nissan launching new pickup trucks in 2015.
- Wired Up:
Besides styling and fuel economy, in-car technology is becoming a major buying consideration. After the mistakes made earlier, automakers are now redesigning their infotainment systems to make them safer and easier to use. Ford, for instance, is dumping its MyFordTouch system in favor of easier to use technology.
4. Fast Cars:
In America the national average of gas prices is $2.24 per gallon, they are not the concern they used to be in America which is why sales of high quality sports vehicles like the new Acura NSX and Cadillac CTS-V should be at its peak this year.
- Green Machines:
Even with falling gas prices, car makers are experimenting with new innovative technologies to contend new laws on fuel economy in America. Honda will show a new FCV fuel-cell concept at a show in America this January, while Toyota will start selling its Mirai fuel cell vehicle in this fall.
These were some of the latest trends that will be occurring this year. These are new innovative ways to gain customer satisfaction and improve any complication in this industry for example of fuel or low speed. These are the new automotive marketing strategies to avail and persuade consumers. This will satisfy all the consumer demands and help the automobile business to further expand and compete against its competitors.
Automotive marketing is a technical process heavily dependent on multiple skill sets in creative, research, media, and management – all factors are important for development and execution of the strategy. With global skill in engineering and product delivery growing all the time, US automotive marketing skill could become the key area in which brands develop competitive differentiation and success in the market.
Check out more auto marketing writings of mine on Autoblog.