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An International Perspective on Automobile Advertising. Imran Ali Keisha Mathews Bill McMillan Debbie Montgomery Irwan Salim. The Auto Industry. By 1908, international distribution for Ford was decided. The Auto Industry. Ford gets 66% of its sales in the U.S.
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An International Perspective on Automobile Advertising Imran Ali Keisha Mathews Bill McMillan Debbie Montgomery Irwan Salim
The Auto Industry • By 1908, international distribution for Ford was decided.
The Auto Industry • Ford gets 66% of its sales in the U.S. • U.S. auto companies' “foreign operations are not meaningful contributors to earnings.” (U.S. Business Reporter) • But about 1/3 of European sales are from Ford, GM, and DCX.
The Auto Industry • Biggest new markets: • China • India • Malaysia • Indonesia. • But incomes remain low in many parts of these countries.
The Auto Industry • Trends: • Higher consumer debt. • More leasing. • People keep cars 8.5 years. • Auto makers returning to core operations. • Increased regulation.
Economic Factors • Auto makers concentrate on where the money is: U.S., Germany, the U.K. • “Luxury” changes meaning in lower-income countries. • Fierce competition in developing countries. • Ads may play on national loyalty.
Economic Factors • U.S. and European companies are high-tech. • Foreign auto makers may have to buy tech from the West. • Leads to competitive disadvantage.
Infrastructure • Lack of highways and bridges may limit cars to local areas: China, India. • In very urban areas, few people have cars, even if high-income, e.g., Singapore.
Effects of Natural Resources and Environment • Fuel efficiency and Environmental Friendliness exploited in ads. • Target audience is the people who want to spend less on gas and save the environment. • In developing countries "Environmental Friendliness" does not work much. People are more concerned with "Fuel Efficiency".
Effects of Natural Resources and Environment • An alternate to Petrol, Compressed Natural Gas, CNG, which is a lot cheaper than Petrol was recently introduced in the South Asian countries. Pre-installed CNG feature in cars was used in car ads. • Concept cars running with natural resources other than petrol and diesel will affect the auto advertisements even more.
Effects of Natural Resources and Environment • The Smart CDI was Daimler Chrysler's first three-liter car (100 km on 3.4 liters of fuel / 68 miles per gallon) and the most economical mass-produced car in the world. • Organizations like Green Peace are working with the U.N. and Auto Makers to ensure environment is protected. Environmental friendliness of cars will be a key feature in ads in coming years.
Effects of Natural Resources and Environment • For the first time, DaimlerChrysler introduces a fuel cell car in the United States.
Cultural Factors • Why is culture an important consideration? • Creates a perceptual framework • Influences behavior/ purchase decisions • Important elements of culture for auto makers to address. • Language • Aesthetics • Attitudes and values
Cultural Factors • Regional Similarities/ Differences • North America (U.S. dominated) • Europe (German dominated) • Asia (Japanese dominated) • Importance of subcultures • Homogeneous vs. Heterogeneous societies
Government Legislation • Russia • Columbia • Italy
Self-Regulation • Advertising Associations • Public Review Boards • Roman Catholic Church