International Marketing the Future Automotive Term Paper

Pages: 10 (3294 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Transportation

SAMPLE EXCERPT:

[. . .] Scott (2002) said, "Americans also seem to want the car that can do it all - a station wagon, sports sedan, minivan, pickup, even convertible all rolled into one." This is what they price they pay for, and in fact it is a very practical, and good choice. This means that manufacturers required their designers to make the most with the available space to fit all new accessories and equipments, shaping up that even new and complicated gears and electronic devices do not twist each other but put in easy reach and simple instructions.

Designers have created a series of function in a simple panel, adjustable dimming roofs, or movable gates. General Motors even introduced the concept of autonomous car that gives a big score for the "luxury" factor. Scott (2002) wrote that this company had created computer- controlled car that presents easy operation for multiple functions like entertainment centers (DVD player, sound system, monitor), mobile office (computer panel, video conference facilities, internet access), which enable people to simply conduct their business activities from the car, even when they are trapped in the traffic jam.

Independent professionals have more desires to their cars than just mobility function. Cars are also considered as the symbols or representatives of the owners. As a part of career supporter for example, people rely on their cars to add the accent to the whole performance. Big and luxurious cars are often in demand to express the great need. It may show the person's security and self-assurance. Cars also become part to show the professional performance associated to companies' image, if there are any associated business activities that are represented from the car.

Big cars would give a pleasant style at the first place. Besides the transporting function, the second most important rate for cars is the recreation function. It is not limited to the recreational facilities the manufacturers provide in each unit, but also the color of adventures that the cars are related into. It becomes a very important factor too. Big cars look great and powerful on the street, and it is a fact. There is a great feeling when people drive on a high-speed lane on the highways and they expect to get greatest adventures from their cars, or at least the adventure look. To make it complete, they are also designed with proper velocity options, capabilities to suit the different driving conditions, and also proper safety equipment for accident and severe weather conditions. Car manufacturers seem to notice this signals that they also offer this factor in the advertisement, and it really works.

The possible connection for this factor and the transportation infrastructure is that they offer good option for personal need. The road structures are good enough for this type of vehicle, although it is not specially designed for it. There is also a practical factor that every person needs to own a car to suit the personal need. It is very common in the country that there would be more than just one car in the family.

However, there is another important factor, still with the family-related functions. It is also very common that people follow the tight workforce schedule that they may need to suit best with family-supporting activities.

A choice of a car could also be made after the requirement of the available room to load the whole family members and their stuffs. This means that a working parent or working couples will consider buying a car that is big enough to take the whole family members, especially the kids, for example to school and other practice schedules, without worrying about space and still have enough room to breath and feel comfortable with the big load.

Madliesn (2002) said, "consumer taste" matters when giving the decision a go. There are a lot of alternative function of the car mentioned here that the vehicle may also develop second function to load outdoor equipments like surfboards, bikes, and of course, people. The facts showed that during 2001 for the first time, light trucks sales exceed the classic passenger vehicles.

This also means that the cars would be suitable both for the performance at the office, taking families to holiday spots, and do not require too much time for the regular maintenance. Unlike the European community, Americans do not put fuel price (fuel consumption) as something that really, really matters.

American people also give good value for speed and reliability of the whole condition, safety, and the operation of the engines. Test drives and information centers would mostly offer a lot of information to satisfy the customers who want to know about their future cars.

This is why millions of dollars were spent annually to accessorize the vehicle. An ON TRAC review shows interesting facts about this tendency to accessorize cars. There was a report from the Special Equipment Marketing Association that about $24.86 billion had been spent for car accessories in the year of 2000. This number shows a 7% increase from the previous year, which shows that people pay more attention to their cars' look. From this number, about 75% of the accessories sold in the market were designed for big cars like trucks, vans, and SUVs. There was an indication that the size was simply not enough. People still want to give their big vehicles a better look, more than just what the manufacturers have offered.

The important accessories that they use include "appearance accessories" like sunroofs and wood dash kits (at about 55.6% of the market share or $13.8 billion), wheels, tires, and suspension products ($6 billion) and racing and performance parts ($5 billion), ON TRAC reported. This fact made it clearer that Americans put a big part of their lifestyles value on their cars, and the cars become the more important symbol than just a means of transportation, but also a means of lifestyle, love and expression.

The Future Trend of The Sales

Chandler however predicts that as economic integration and globalization issue is raised and developed better, the car markets would soon adjust. The better the economic integration will be, the more chances that infrastructure development in different regions like Europe, North America and Asia will correspond to each other, creating a smaller gap among the present differences and inducing new marketplace for previously absent models. However, it is important to remember that those changes may take years to happen.

It is little to say that this will affect everything, but it is not that European consumers do not follow the buying sense as strong as the U.S. do, but they just find the different value in relation with the culture and geographical shapes.

The condition within the country or region will be the first factor that affects customers to buy the cars. As fuel and pollution are quite critical and people are very sensitive to these factors. Therefore, there would be good idea for the manufacturers to continue developing types of vehicle that suit the need, like energy-saving cars.

The manufacturers could continue research which incorporates alternative fuel use, but within the range that would not sacrifice the vehicle performance. They still have good alternatives on public transportation and effective use of them that without a certain reason to buy a car, the products may not be able to sell well.

The space-saving idea has already been well accepted in Europe that this would be a good continuation for the market research process. Besides in Europe, manufacturers could also take a look at Asian market, which seems to develop similar sensitivity, but another different reasons of course to buy small cars. As many Asian countries contain such population with high workforce, poor infrastructure, but quite low income, they would probably look at the offer as long as it is sold within the reasonable price.

Manufacturers do not need to have problems with this as they can use the standard platform to develop different types of cars suitable to each region's demand. This means that the manufacturer does not need to create a different platform for every approach they work on a country or region, but only shape up the similar design platform they already have and make suitable adjustment on the color, function, exterior and interior performance and another little additions as well. For example, Volkswagen has used the similar platform for luxury golf cars in Europe and shape it up for cabs in Mexico. This approach would really save time and money while the company concentrates to the marketing procedures.

It is a wise choice that a research also conducted by taking cultural factors into account. In the U.S., the trend to drive big cars is also driven by cultural content and the community lifestyle. The growing urban system and intercultural change may also affect the automobile preference. However, if the company wants to give a try on a new design,… [END OF PREVIEW]

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International Marketing the Future Automotive.  (2002, November 13).  Retrieved December 12, 2018, from https://www.essaytown.com/subjects/paper/international-marketing-future-automotive/5069733

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