Automobile Industry Promotional and Advertising Strategies

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Table of Contents

Abstract
Introduction
Automobile industry analysis
Audi promotional strategies
Tata Motors promotional strategies
Rationale for marketing in the automobile industry
Rationale for consumer-oriented promotions
Pricing decisions and effective advertising
References

Abstract

This research undertaking analyzes promotional and advertising strategies in the automobile industry. It focuses on aspects of product development that suffice in the quest for profitability and dominance in the market. It covers diverse parameters that define the development of innovative solutions in the industry.

This paper highlights numerous challenges encountered by automotive makers as they strive to satisfy customer needs through the development of products and services that reflect recurrent needs in the market. This research undertaking focuses on pertinent issues such as pricing, advertising, and promotional strategies. It also offers a historical analysis of the automobile industry since its inception in 1885. In order to achieve the above objectives, this essay incorporates information from reputable sources and authoritative academic publications.

Introduction

Promotional and advertising services are integral components with regard to the execution of core functions within commercial entities. Through advertising and promotion, organizations consolidate their inherent desire for profitability and progress in the market (Gunneman, 2008). Most organizations understand the rationale for promotion and advertising, especially in modern market terrains that are fraught with competition and desire for high returns. Business managers institute measures that guarantee effective management of internal and external functions that enhance survival and dominance in competitive corporate landscapes (Gunneman, 2008).

This research undertaking seeks to analyze various promotional and advertising aspects that characterize the automobile industry in a contemporary corporate context. It shall institute an extensive foray into internal and external forces that govern operations in the aforementioned industry. It shall also contextualize consumer-oriented promotions and their role in the creation and propagation of long-term effects among consumers in the market. In order to achieve the aforementioned objectives, this research paper shall analyze Audi and Tata Motors.

Automobile industry analysis

Since its inception in 1885, the automobile industry has witnessed major milestones that have entrenched its position as a dynamic and progressive entity in the global economic landscape. Its impact is evident in terms of revenue and job creation in the market. Not only does the automobile sector design and manufacture motor vehicles, but it also engages in the marketing and distribution of its products and services in the global market (Gunneman, 2008).

There are numerous factors that influence operations within the automobile industry. For instance, socio-cultural variables play an important role in determining progress and growth in the automobile industry. Such variables include population, cultural considerations, corporate social responsibility, and consumer trends that influence product design and development. Consumer trends revolve around specific issues such as design, cost, branding, and services that are offered by automobile entities.

Devoid of such considerations, it would be difficult for automobile companies to project and actualize needs that suffice in the market (Gunneman, 2008). In addition, automobile companies consider the overall age distribution with regard to their clientele. Demand for motor vehicles largely depends on age and preferential inclination in the market. Therefore, it is important for automobile companies to understand the specific requirements and preferences that suffice within age groups in the market.

Technological considerations also play an important role in determining the design and development of automobile products and services. Technological innovations enhance safety and satisfaction among clients. Devoid of safety and satisfaction, automobile entities cannot achieve their desire for excellence and progress in the market.

Technological innovations also guarantee efficiency in pertinent areas such as fuel consumption and application of safe options with regard to environmental conservation. Economic factors also influence operations within the automobile industry. For instance, car manufacturers are expected to comply with government policies that guide taxation. Other economic considerations revolve around the prices of raw materials, buying power among clients, population, and applicability of automobiles in the market (Gunneman, 2008).

The automobile industry also faces numerous challenges in areas that relate to ecological considerations in society. Carmakers are expected to institute measures that guarantee fuel efficiency and minimal instances of pollution. It is important to note that pollution is a major concern for automobile manufacturers. In most cases, pollution suffices through harmful emissions and uncontrolled noise.

The automobile industry also faces numerous challenges with regard to political and legal considerations in the market (Gunneman, 2008). Such factors affect operations within specific markets and jurisdictions around the world. For instance, China requires car manufacturers to acquire a license before engaging in any form of import operations within its borders. On the other hand, Colombia does not allow the importation of used automobiles within its jurisdiction (Gunneman, 2008).

This analysis offers an opportunity to understand various internal factors that influence operations in the automobile industry. The aforementioned factors create the impetus for innovation and pursuit of avenues that seek to circumvent their negative implications on the industry. Most automobile entities engage in intense promotional and marketing campaigns that seek to sensitize people on products and services in the market. Therefore, it is important to appreciate the role of promotion and marketing in enhancing success in the automobile industry. Promotion and marketing bolster the visibility of automobile entities in the market (Gunneman, 2008).

Audi promotional strategies

As earlier mentioned, the automobile industry is highly competitive and dependent on visibility in the market. Most automotive makers invest heavily in marketing and promotion of their products and services in the market. They engage in corporate campaigns that accentuate their presence in diverse market segments. Through such promotional and marketing endeavors, automobile entities increase awareness with regard to their products and services in the market.

Audi engages in promotion and marketing of products and services through application of technological tools such as YouTube (Jarboe, 2011). Through such tools, Audi displays its products and services in a bid to reach more people in the market. This promotional and marketing strategy is effective because most people use the internet in their daily undertakings. This reality guarantees effective and timely delivery of promotional messages to the target audience. Due to an increase in internet usage, Audi garners high visibility and presence in the market (Jarboe, 2011).

Another promotional and marketing strategy involves film sponsorship in various movies in the entertainment industry. For instance, Iron Man 2 incorporated Audi models such as R8 Spyder and the Audi A8 model. This promotional and marketing strategy is very efficient because it convinces people to acquire Audi products. By associating Audi products with celebrities, people tend to buy them in order to satisfy their inherent desire for fame and glamour (Jarboe, 2011).

This promotional and marketing strategy offers Audi competitive advantage over its contemporaries because it targets people in the luxurious segment of society. It also bolsters Audi’s dominance and visibility in the market, especially among consumers who prefer luxury cars. Although Audi uses numerous promotional and marketing strategies, the above examples are prominent features with regard to its corporate inclination (Jarboe, 2011).

Tata Motors promotional strategies

Tata Motors has one of the most efficient promotional strategies in the automobile industry. Through its vibrant marketing campaigns, the company has entrenched its position as a leader in automotive design, development, and distribution. Its range of products includes cars, trucks, luxury automobiles and commercial vehicles. Its prominent strategies include product branding and advertising (Jarboe, 2011). The company uses diverse advertising channels in order to reach a wide audience in the market.

Through advertising, the corporate entity creates awareness and hype regarding their products and services in the market. It covers a wide market segment through advertising and other relevant promotional strategies that suffice in the automobile industry. The company also uses promotional strategies such as packaging, innovation, and superior determination of quality in all areas of interest. It is important to note that Tata Motors experiences stiff competition from other automotive manufacturers and distributors in the market (Jarboe, 2011).

Therefore, it is important for its management team to formulate promotional and marketing strategies that appreciate the aforementioned reality in contemporary corporate setting. For instance, the company has invested in operations that seek to attract a youthful clientele. This promotional strategy has necessitated creation of automobile designs that appeal to the youthful population among its clientele. Such fancy automobiles are equipped with accessories that fulfil diverse needs among youthful clients.

This promotional strategy is very effective because it captures the youth who usually promote growth and innovation in contemporary social and economic landscapes. The company also engages in recurrent restructuring and positioning in order to guarantee sustainable presence and relevance in the market. It achieves this through market research and appraisal in order to understand consumer trends and preferences (Jarboe, 2011). This strategy offers Tata Motors an opportunity to determine areas that require attention and adjustment, especially in relation to automotive design, development and distribution. Another promotional strategy involves creation and propagation of elaborate communication channels that seek to enhance interaction with consumers in the market (Jarboe, 2011).

Communication is an important business development tool because it offers an opportunity for feedback from customers regarding quality and sustainability of products in the market. Tata Motors also applies price variation as a promotional strategy in the market. This strategy creates attention and focus towards products and services that are offered by Tata Motors. On the other hand, it offers an opportunity for consumers to experience the revolutionary inclination of the company in diverse areas such as innovation and automotive design. Promotional and advertising strategies play an important role in ensuring growth, innovation and dominance in the market (Jarboe, 2011).

Rationale for marketing in the automobile industry

Marketing plays an important role in product development and distribution because it creates awareness among consumers and enthusiasts in diverse market segments. Through marketing, corporate entities actualize their desire for growth, expansion and profitability. In most cases, marketing information acts as an avenue for diffusion in the market (Luther, 2001). As earlier noted, the automobile industry is highly competitive in terms of development and distribution of products and services.

Therefore, it is important for automotive makers to apply marketing strategies that ameliorate their stature and orientation in the market. For instance, automotive makers should market their products in a concise manner that puts emphasis on effective communication as opposed to hype that does not exhibit inherent value with regard to their products and services. They should also formulate relevant marketing strategies that motivate consumers to use their products and services (Luther, 2001).

Most marketing strategies fail to achieve their purpose due to poor formulation and execution. Therefore, it is important for automotive marketers to understand recurrent needs and consumer preferences within their target markets. This gives them a competitive edge against their contemporaries in the market. According to marketing experts, successful marketing campaigns anchor on strategic planning, market survey and deliberate efforts that gear towards customer satisfaction. The above recommendations offer competitive advantage because they focus on the integral areas of interest with regard to marketing in the automobile industry (Luther, 2001).

Rationale for consumer-oriented promotions

Business promotions offer an opportunity for corporate entities to popularize their products and services among consumers and enthusiasts. Businesses also use this avenue to offer products at discounted prices. Due to the competitive nature of the automobile industry, it is important for companies to engage in frequent consumer-oriented promotions in order to overcome challenges in pertinent areas such as product design, development and distribution (Luther, 2001).

Through consumer-oriented promotions, companies in the automobile industry advertise their products and services in order to guarantee awareness and appreciation among consumers and enthusiasts in diverse market segments. Such promotions also create impetus for long-term and short-term sustenance and propagation in the market. Automobile companies should utilize consumer-related promotions to develop and sustain sustainable product regimes in their target markets. Consumer-oriented promotions are effective business development tools because they contribute to awareness and visibility in the market (Quelch, 2007).

Pricing decisions and effective advertising

Pricing plays an important role in determining the success of a product in the market. It is important for companies to understand diverse mechanics that characterize pricing and the overall implications that emanate from such undertakings. For instance, Tata Motors uses pricing as a business tool to enhance its operations in the market (Quelch, 2007). It uses the loss leader pricing strategy to bolster its business growth and development objectives. According to this strategy, businesses sell their products at reasonable prices in order to create interest in other high-end and secondary products (Quelch, 2007).

For instance, Tata Motors sells their cars at fair prices but compensate through sale of spare parts and complimentary accessories. This pricing strategy has effectively set Tata Motors apart from other automotive makers in the industry. Other companies should differentiate themselves in order to gain competitive advantage. For instance, they should adopt alternative pricing strategies such as bundling or prestige pricing. They should also conduct regular market surveys in order to identify areas that require corporate and institutional attention (Keillor, 2007).

This also gives them an opportunity to understand recurrent consumer needs and preferences in the market. Companies should intensify their advertising efforts because it contributes to business development and sustenance in the market. The most effective advertising medium for a company in the automobile industry is the internet (Keillor, 2007). It is an effective medium because most people use it in their daily undertakings. It is also efficient because it is less dependent on geographical factors. For instance, Audi uses technological tools such as the internet to market its products and services. This medium has led to growth and development of innovative products. Tata Motors also uses the internet as an advertising medium (Jarboe, 2011).

References

Gunneman, F. (2008). The Effectiveness of Product Placement for the Automobile Industry and Its Impact on Consumer Behavior. New Jersey: GRIN Verlag.

Jarboe, G. (2011). You Tube and Video Marketing: An Hour a Day. Newyork: John Wiley & Sons.

Keillor, B. (2007). Marketing in the 21^st Century: Integrated Marketing Communication. London: Greenwood Publishing Group.

Luther, W. (2001). The Marketing Plan: How to Prepare and Implement It. Newyork: AMACOM Div American Mgmt Assn.

Quelch, J. (2007). Readings in Modern Marketing. Newyork: Chinese University Press.

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