An International Perspective on Automobile Advertising

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An International Perspective on Automobile
Advertising

• Imran Ali
• Keisha Mathews
• Bill McMillan
• Debbie Montgomery
• Irwan Salim

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The Auto Industry

• By 1908, international distribution for Ford was
  decided.

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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.

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The Auto Industry

• Biggest new markets
• China
• India
• Malaysia
• Indonesia.
• But incomes remain low in many parts of these
  countries.

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The Auto Industry

• Trends
• Higher consumer debt.
• More leasing.
• People keep cars 8.5 years.
• Auto makers returning to core operations.
• Increased regulation.

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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.

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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.

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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.

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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".

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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.

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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.

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Effects of Natural Resources and Environment

• For the first time, DaimlerChrysler introduces a
  fuel cell car in the United States.

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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

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Cultural Factors

• Regional Similarities/ Differences
• North America (U.S. dominated)
• Europe (German dominated)
• Asia (Japanese dominated)
• Importance of subcultures
• Homogeneous vs. Heterogeneous societies

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Political Differences Consumer Groups
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• Government Legislation
• Russia
• Columbia
• Italy

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• Self-Regulation
• Advertising Associations
• Public Review Boards
• Roman Catholic Church

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Lets see some ads...
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