How Automotive Companies Dominate the World of Marketing

If you have a television, as I’m sure you do, I think you’ll agree that the amount of car adverts shown is… overwhelming to say the least. From BMW to Citroen, they are literally everywhere, on pretty much every channel. This begs the question, why is this the case? Why do automotive companies dominate the marketing world so profusely?

How Do They Do It

The biggest reason is that cars are planned for years ahead of time, so consequently, by the time they are released to the market, there has already been a huge loss in revenue due to the designing, manufacturing and distribution. As a result, car companies have to increase sales as much as possible, even if it means advertising spending is huge as well. Think about it, if a car company spends all this money on cars only to get disappointing sales, it’s an enormous loss to net profits. This is in stark contrast to something simple like milk (as an arbitrary example), in which there would still be a loss in net profits if sales are disappointing, but due to its cheap manufacturing, this loss wouldn’t be nearly as bad as it would be for a car company.

In addition, most cheaply and quickly produced products can react very quickly to market trends, whereas due to the time spent planning a product like a car the only way to combat trends is to literally shape the market condition themselves, hence the massive amount of advertising.

On top of this, products like cars attract enthusiasts that essentially perform a form of advertising for the car companies. For example, one of the most reliable of these, information-wise, is green4uwhich gives detailed guides on car products as well as blogs that host a discussion regarding new releases.

All of this combined translates to an advertising market that is, for the most part, dominated by the automotive industry.

 

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