Promotional and Advertising Strategies - Essay Example

Promotional and Advertising Strategies al Affiliation) Introduction The automotive industry is among the largest and most competitive industry. This is due to the production of different brands from different companies that compete to meet the customers’ needs. In Germany, there are several manufacturers in the automotive industry. BMW and Audi are among the leading manufacturers in the industry. They place emphasis on their brands through the unique advertising models that both manufacturers employ. This paper discusses the promotional strategies used by the manufacturers given adequate marketing information. It proposes consumer oriented promotions that other manufacturers in the industry could use for the success of their products. In addition, it discusses the strategic manner used to make pricing decisions within the industry. The paper suggests appropriate actions that enable other manufacturers to gain a competitive advantage within the industry. Finally, it determines the effective advertising mediums used by the manufacturers in the automotive industry. Discussion The manufacturers in the automotive industry place emphasis on their brands. This occurs through the employment of most of their budget on marketing through advertisements. The platforms for advertising include the magazines, production of videos, and through online marketing. For instance, BMW made an introduction of their YouTube page to enable potential customers to understand better the features of various models. In contrast, Audi markets its different models through the sponsorship of various films where the cars are used. For instance, the manufacturer sponsored the production of the movie “Iron Man 2” to market the Audi A8 model along with the R8 Spyder model. In comparison, both manufacturers employ product placement in marketing their brands. This creates a viable brand identity for both manufacturers from the consumer’s perspective. The strategies employed by both manufacturers aim at the achievement of a greater clientele base (Fich, 2009). The different manufacturers in the automotive industry could use marketing information to gain a competitive advantage. This is on condition that the information is relevant, accurate, and not obsolete. The manufacturers could use marketing information to understand new markets, especially international markets to enable easy entry in the global markets. This is because the marketing information is accessible easily and the manufacturers could determine the weaknesses of other manufacturers in the global automotive industry. The manufacturers are able to capitalize on the weaknesses to gain a competitive advantage. In addition, the author recommends the use of marketing information in the study of different cultures of the different markets in the automotive industry. This is because different cultures determine the purchasing trends of consumers. The consumers have different attitudes and preferences that the manufacturers should capitalize on, to ensure they gain a competitive advantage. Consumer oriented promotions aim at the fulfillment of the customers’ needs. This occurs through the effective management of customer-manufacturer relationship that creates a greater value for the manufacturers in the automotive industry. The strategy enables the attraction of potential investors that provide funding used for strengthening their brands. If the companies in the automotive industry place emphasis on customer management, then they could gain sales through customer referrals. This could be effective in the short term through the introduction of a customer management system that provides feedback on their compliments and complaints. The manufacturers in the automotive industry need to create customer-driven products. This means that the manufacturers aim to produce tailor made automotive models packaged with features that suit the customers’ needs. The production of tailor made products creates an exceptional customer value that leads to the retention and attraction of customers in the industry. As a result, the manufacturers gain benefit in the short term through the introduction of a customer management system. In the long term, the manufacturers could consider the needs of the global market. They could use the consumer-oriented promotions for the acquisition of a larger market share. This is a strategic decision for the companies because it affects the management and operations aimed at the promotion of the different brands. If there is proper capitalization of the customer-oriented promotions, the manufacturers could gain a large business opportunity. This relates to the amount of sales made as they are bound to increase. Through the need to fulfil the customers’ needs, the manufacturers in the automotive industry diversify their markets. This is because they seek to satisfy the customers’ needs by following them abroad. In the pursuit of their potential abroad, the manufacturers could exploit different technologies that ensure the creation of customized automobile products (Gschwandtner, 2006). BMW uses a profit maximization strategy where there is the production of luxury cars. It uses a value-based strategy where there is a concern of the value of the cars as compared to their prices. The major goal of this strategy is to ensure that the consumers of the luxury cars receive value for their money. This leads to the production of luxurious automotive using advanced technology to customize the features of the cars (Hiraoka, 2009). This pricing strategy supports the manufacturers’ marketing plan that has led to an increase in the company’s market share. It has also led to an increase in the revenues from the sales of the luxury cars. For instance, the sales of ‘BMW 5 Series’ cars increased by 5% in the year 2013. The pricing strategy has enabled the company to maintain and attract the customers. This is because the company aims at customer satisfaction in the production of the luxury cars. In certain circumstances, the company applies the survival strategy. This is where it reduces the prices of its brands in order to protect its market share. To explain further, if the sale of a competing firm increases, BMW applies the strategy to curb the concern, therefore, defending its market share. In other circumstances, the company gives discounts to their customers in a bid to increase the sales of the luxury cars. Through this pricing strategy, the company offers its vehicles through the provision of financing for the customer or through selling the cars on hire purchase. In the process of reducing the prices, the company incurs benefits through the promotion of its products (Morrison, 2002). Other companies in the automotive industry could employ their strategies as if they are developing the strategies for their competitors. If different companies are in the same industry, there are high chances that they employ similar strategies in their operations. The companies that seek to thrive in the automotive industry should react differently in relation to the threats and available opportunities. This ensures that they remain authentic in their operations in a bid to avoid legal actions against trademarks and patents (Morrison, 2002). The companies should determine ways to predict the actions of the leading companies in the automotive industry and have the ability to act first before the competitor companies take action. This ensures that the companies gain competitive advantage through product differentiation. In explanation, product differentiation is the ability of a company to distinguish its products from those of competitors in the same industry to make such products attractive to the target market. Another action that the companies could take is to develop a decision making process, as if developing the same for the leading companies in the automotive industry. This is because the leading companies make viable corporate decisions that are consistent with their corporate objectives. The companies could also predict the strategies of the competitor companies. This occurs through the consideration of the incentives utilized and the preferences of the competitors in the decision making process. If the companies develop such strategies, they could gain competitive advantage and a large market share. The owners of the companies could also ensure the growth of their companies in the automotive industry. There is a need for the owners to ensure the independence of the managers in the decision making process (Fitzgerald, 2002). Such managers could make strategic pricing decisions according to the corporation’s guidelines and could lead to the growth and development of the companies. The most effective marketing medium for the advertisement of automotive products is through online marketing (Carmody, 2001). This is because most individuals have an internet connection, meaning that they can access the advertisements in the process of browsing the internet. There is a growing market for the younger generation due to the increase in automotive demand in the generation. Therefore, online marketing could be effective even in terms of cost. Online marketing ensures optimum utilization of the available resources in consideration of the available constraints in achieving marketing success. One of the examples that show the effectiveness of online marketing strategies is through a digitized world. Computers and mobile phones have led to the creation of the social media, where there is a platform of advertising. For instance, companies in the automotive industry have created their Facebook pages, where customers create forums with the manufacturers. The customers interact with the manufacturers, where the manufacturers provide relevant information to the customers. The customers have the ability to ask any question regarding their concerns and experiences while using the automotive products (Morrison, 2002). This approach is effective as they receive instant feedback from the manufacturers through instant messaging. Online selling platforms are other examples of the effectiveness of online marketing. This is the provision of products for sale through online retailers such as eBay and Amazon. Such websites acquire commission through the sale of the products, advertising the automotive products in the process. The retailers have acquired a great market share through the online sales. This proves that the online marketing strategy is effective and efficient. Through the online marketing medium, the customer’s experience is unique and involves less cost. Therefore, most customers are likely to place their automotive orders through the online platforms. Conclusion The automotive industry is competitive and different manufacturers use different promotional and advertising strategies. BMW introduced their YouTube page to enable potential customers to understand better the features of various models. In contrast, Audi markets its different models through the sponsorship of various films where the cars are used. In comparison, both manufacturers employ product placement to market their brands. BMW uses a value-based strategy where there is a concern of the value of the cars as compared to their prices. The company applies the survival strategy. This is where it reduces the prices of its brands in order to protect its market share. The companies that seek to thrive in the automotive industry should react differently in relation to the threats and available opportunities. There is a need for the owners of automotive companies to ensure the independence of their managers in the decision making process. The most effective marketing medium for the advertisement of automotive products online is marketing. It provides a platform for the customers and the manufacturers to conduct business transactions easily. References Carmody, B. (2001). Online promotions winning strategies and tactics. New York: Wiley. Fich, N. (2009). Brand management of luxury goods: Understanding the customer : Perception of "luxury" : Mercedes and BWM [sic] cars (1. Aufl. ed.). Norderstedt, Germany: GRIN Verlag. Fitzgerald, S. (2002). Decision making. Oxford, U.K.: Capstone Pub. Gschwandtner, G. (2006). Everything I know about sales success: The worlds greatest business minds reveal their winning secrets. New York: McGraw-Hill. Hiraoka, C. (2009). Technology acceptance of connected services in the automotive industry. Wiesbaden: Gabler Research Morrison, M. (2002). Using qualitative research in advertising: Strategies, techniques, and applications. Thousand Oaks, Calif.: Sage. Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form Top of Form Bottom of Form . Top of Form Bottom of Form Read More