In the car industry and when it comes to generalist brands (vs. niche/high end), we know that image is built through communication and particularly TV advertising. In many countries, the leading brand is actually the leading TV media spender. The total car industry category is generally one of the top three categories that spend on TV. On that basis the point of sale is considered as just the place where cars are sold.This paper looks at how the point of sale can be used to further the strategic evolution of Renault'd image and brand identity.
The symbiosis of developers (business), government agencies, and consumer desires is entering a new era in the US market, bringing the consumer lifestyle to places it has never been; but one might argue more inline with other global standards. The New Urbanism and urban-living movements in the United States represent some of the most exciting consumer movements for the next decade and beyond.This urban-living movement in the United States has major implications for how manufacturers can attempt to meet the personal mobility needs of the consumers. It also has environmental implications as the convergence is unique in that business, government, and consumers' needs are invisibly partnered towards the same goal: the goal of a sustainable society.This means for the automotive brands the requirement to develop new channels and new positions in the consumer minds: to extend the traditional brands into the consumer's mind when thinking of personal mobility and sustainability within new communities/urban settings. At a minimum, this requires a renewed emphasis on such new brand channels or brand extensions.
It is a truism of market research and this is nothing new that the sociocultural identity of the consumer is carrying more and more weight in the selection of products, brands or services. This rule applies particularly to mature consumer societies but is also increasingly valid for the evolving consumer goods markets all over the world, the BRICS included. As such, it is merely a further truism to say that also in those quickly changing markets target group marketing supplies that very degree of accuracy in targeting required to effectively draw a line between oneself and one's competitors.In order to supply a new and powerful tool for analyzing the socio-cultural segmentation of markets and its effects on consumer behaviour SIGMA founder Joumlrg Ueltzhoumlffer et al had created the Social Milieu approach to market segmentation, initially confined to the German marketplace. This target group approach, subject to continuous development by SIGMA, forms the analytical foundation for SIGMA Sensor Research on all continents.
In many national economies the automotive business plays a major role. In Germany for instance 10% of the working population is in some way connected to the automotive industry. In automotive retailing the impressive turnover of automotive dealerships makes them one of the most important players in local economic areas. In the Netherlands the top 50 automotive dealers sell more than 40% of all the 500,000 new cars entering the market in a year. Although the turnover on selling new cars is high, the profit margin is quite low, 1 or 2% at the most, comparable to food retailing. Continuous investments need to be done to keep automotive dealerships modern and up to date, thus somewhere money has to be made. In general 65% of the revenue in automotive retailing at Toyota dealerships in the Netherlands comes from the After Sales business.
Encouraging more responsible and sustainable consumption is fast becoming an important public policy goal. Global automotive marketing has traditionally encouraged purchase and consumption choices that are optimal for particular individuals. Many of these choices, however, have social and environmental externalities which extend beyond the individual consumer.This paper studies a generalisable question: what leads people to make a purchase decision that may be individually fulfilling, but could be construed by others as harmful in economic, social, environmental, ethical, and/or personal safety terms? It also explores the converse, exploring what leads some people to make a purchase decision that may be construed as beneficial in social, environmental, and/or ethical terms, but not necessarily sensible in individual economic terms?The automotive context offers a useful case study with two very different by successful product classes: the SUV (often criticised as an irresponsible choice) and the small hybrid cars such as the Prius (which many praise as a responsible choice).
Classic automotive market research today is still very technology-oriented and product-driven. This typically becomes apparent in study designs which are rather detached from reality and everyday life, for example when car drivers are asked about isolated technical details of vehicles. But even if vehicles are presented to be evaluated as a whole, e.g. in Car Clinics, the discussion often remains at a theoretical and technical level. Study results tend to be rather abstract snapshots and don't tell a lot about how the test object will prove itself in real life. Yet, it is especially this real-life component which greatly determines the satisfaction with a car or a vehicle brand in the long term. At the latest when the first pride of ownership of the new car has vanished, the vehicle must face the reality of everyday life and convince the owner in the long term. Real strengths and weaknesses of a car only come to light through everyday use over a longer period of time.
The media landscape is constantly evolving and increasing in complexity: fragmentation of traditional media and growing influence of new media means that car manufacturers are paying more attention to non-traditional contact points such as events or dealerships in order to communicate effectively.The automotive sector has become increasingly fragmented, but the amount of spend/model has decreased at the same time. Considering the increasing number of models per vehicle segment and the strong competition (i.e.) car manufacturers addressing the lower segment with three different models, for instance; car manufacturers are compelled to fine tune their communication strategy not only by model but also by consumer category.
Word of mouth is the hot topic in marketing these days. As reported by BrandWeek.com, spending on word of mouth marketing is projected to hit $1.3 billion (US$) in 2008. Interest in measuring and managing word of mouth communication about brands has intensified in recent years for a variety of reasons, but one factor is the realization that under the right circumstances, the spread of word of mouth looks much like an epidemic.Auto manufacturers have understood the importance of word of mouth communication for almost as long as automobiles have been offered for sale. Henry Ford probably knew something of the value of social networking in selling automobiles when he decided to pay his workers a wage that would make it possible for at least some of them to buy the cars they were building.
In recent years, China has surpassed Japan and the major European car markets, and rapidly become the second largest automotive market in the world. Only in the United States of America are more vehicles sold every year, and even this will change in the future. With a projected annual growth of approximately 20%, China is destined to become the number one auto market in the world within the next three years. Indeed, even with far more conservative expectations, the Middle Kingdom will gain the global top spot not later than 2015. As one of the fastest developing car markets with huge potential for further growth, China has attracted virtually all car manufacturers to produce and sell their vehicles on the mainland. China has rapidly transformed from a seller market into a buyer market in which consumers can now choose among more than 60 car brands. The Middle Kingdom has therefore become the most competitive car market in the world - a fact which poses particular challenges for marketing strategies of car manufacturers, including the management of their distribution networks as well as individual dealer performances.