The Role of Marketing Managers in the Success and Failure of a Car
Written by Kamran Talebi Fard, PhD in Business
Although in our country, in the lower segments of the automobile market, because demand has always been greater than supply and the options available to buyers are limited, there has not been much attention and need for marketing science for the correct positioning of a product and its success in the market, but in higher levels of the market, such as the middle levels or upper segments of the market, because the right to choose is wider and the volume of potential customers is smaller, the use of marketing science for the correct positioning and introduction of a product has been of particular importance. These days, if we examine the country’s automobile market, we will realize that paying attention to the principles of marketing science for the correct introduction and correct positioning of a car has started precisely from the segment where Chinese cars are located in the market, and it is also very effective in higher segments of the market.
Entering a new car into the market
When a domestically produced, assembled, or even imported car is prepared to enter the market, after the processes of selecting the right product for the market, selecting the right options for that car for that target market, and finally, accurate pricing, which are all within the scope of a company’s marketing operations and marketing management, the last stage is the design and implementation of a campaign to introduce that car to the market. In this article, we will not examine how to choose the right car for a market, select the right comfort and price options, and finally, pricing, because each requires a detailed and separate article. But as mentioned, after the desired car is finalized for entering the market, an introduction campaign or so-called launch campaign is considered for that car. In this article, we will discuss what should be considered in designing these campaigns so that the car finds a suitable place in the market.
In general, every product has a series of positive characteristics or features, which in marketing science are briefly called the benefits of that product. For example, if we consider a car like the 206, small dimensions, suitability for city traffic, good handling, low fuel consumption, etc. are among the advantages of this car for the buyer. However, in addition to these positive characteristics, every car has at least one unique feature that is specific to that car or product and is not found in its competitors, which is called core competency. For example, in the case of the 206, its advantages such as low fuel consumption, good handling, and suitable dimensions for city traffic or a powerful engine in the 1600 type are also found in its other competitors, such as the Renault Sandero or other competing cars. But the core capability that has kept the 206 in the top-selling cars in the country after twenty years is not these things, but rather its attractive and different design that has still retained its appeal to a large extent after twenty years, and many people buy it for this reason. This core capability or core competency has been one of the main reasons why buyers chose this car since the very beginning of this car’s entry into the market in 1380. This example clearly shows how important it is for marketing managers to correctly understand the benefits and core competencies or advantages, as well as its core capabilities or advantages, when a new car is introduced to the market, because if this understanding is done correctly, the campaign for that car’s entry into the market will be designed and implemented based on these advantages and with that core capability as the center. This is a very important point for the large number of Chinese cars entering the country’s market today, almost all of which are in the same size and price segment. If the marketing managers of the companies supplying them can properly understand the core capabilities of their products and design their campaigns based on that, that car will definitely have a different and powerful presence in the market from the very beginning.
To understand this issue, I will give an example from my work experience when I was in charge of the marketing department of the BMW dealership in Iran. Due to wrong policies within the company, two cars of the same segment and family, the Mini Cooper and the BMW 1 Series, were simultaneously launched on the market. Both were premium hatchbacks in the C segment and were very close in terms of price. The Mini Cooper’s inventory was very limited due to the immediate ban on car imports in 2017, while the BMW 1 Series inventory was considerable. Despite the objections of the company’s marketing team, sales of both cars began approximately one month apart. It was clear that the Mini would sell quickly due to its much more attractive appearance, very attractive interior design, and other external features. However, at the same time, sales of the BMW 1 Series faced a problem because, despite the same segment and similar price, it did not in any way match the attractiveness of the Mini Cooper. Or even its competitors. At that time, as the company’s marketing manager, I decided to conduct an internal analysis of the company’s salespeople and sales team members to find out whether they knew the core competency of the BMW 1 Series, apart from its advantages. To my surprise, I realized that even the most experienced sales force did not know the core competency of this product and when introducing this product to customers, they used phrases such as “a car suitable for city traffic”, “low fuel consumption”, “a car suitable for women”, or “easy to drive” and “an inexpensive BMW”, while none of them knew the core competency of the BMW 1 Series.
