traditional sense of selling and manufacturing vehicles. Thus, in the near future, the automotive marketing and distribution processes are bound to change.
The traditional supply chain distribution was created aligned with the supply-push model. It is a strategy made to leverage private capital and hold inventory. It was designed for entrepreneurs who are selling one or at most two brands of vehicles in a specific geographical area. This supply chain distribution model is far from being flexible. It’s been ingrained in car dealers for years, hence, a habit hard to beat. However, such a strategy delivers no satisfaction to customers. Additionally, car dealers tend to compete against other dealers from the nearby towns instead of selling the edge of the brand to customers. Marketing strategies are rather focused on offering rebates and using agile aggressive marketing tactics.
This aspect greatly led to a huge percentage of unhappy customers. The long and dragging sales process along with the aggressive impersonal customer service sparked what has to be done to change the traditional ways of selling cars to the public.
On the brighter note, there are other angles that can be explored and applied to optimise opportunities and define the right tactics based on customer requirements. For new vehicle sales, tech-oriented cars will gradually penetrate the market, car manufacturers will find ways to decrease fixed costs and other tech-aligned features that will drive satisfied customers and increase sales. Moreover, car accessories and parts will also gain a lot of attention in terms of customisation and personalisation. Delivery of additional parts will be more efficient and fast and a wider array of options will start to enter the market. Environmentally friendly selection will also begin to garner more audience while packaging and freight options will be inclined to more sustainable practices.
The internet is gaining more and more influence in every industry. Utilising the presence of technology in tapping the right people will give automotive dealers more room to improve their business operations and offer services in real-time. Given that most customers nowadays are gathering data about a certain vehicle online, it is only ideal to invest in advertising on the right channels or platforms.
The drastic yet dramatic growth of technology has brought advantages to the automotive industry. Cost reduction is one of the main benefits car dealers and manufacturers gained upon switching to tech-inclined operations. Through the internet, not only the local markets are reached but it can easily target an international audience.
Given the tech-aligned practices that are slowly dominating the car distribution process, car dealers might seem not to have a place in the industry anymore. Rather, car dealers became even more essential in the new process of car distribution and marketing. Customers will have more selection in terms of models and brands while competing products that fall in the same category will have minimal differences to pinpoint. Rather, customer satisfaction will be derived from the personal ownership experience after the purchase and easier purchase transactions.
Manufacturers need to lead to revolution instead of just going with the flow. This change will be inevitable and it is important to push traditional marketers to leverage their operations along with the tech-advanced operations to leverage future sales.