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Global Marketing Strategy in the Automobile Industry by Lyndsey Roush

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“Globalization is reshaping business strategy on a scale never before seen in modern history and nowhere is it more obvious than in marketing” [1]. American companies are rethinking the way they market and do business because of new global competition [2]. With everything going global, if a company wants to be able to compete they need to market to the entire globe. One issue companies face is trying to “think globally, act locally”. It can be difficult to come up with a concept that can be used all over the globe and still appeal to everyone. Companies are forced to make the decision whether to have a strategy that is standardized, involving one main concept, or customized, which is tailored for different regions [3]. Each company has their own unique way of appealing to the global market. One industry that markets to people all over the world is the automotive industry because their products can be consumed by individuals in almost every part of the world.

Contents

[edit] Examples

[edit] Cadillac

Cadillac is just one of many automobile companies that are going global when it comes to marketing. In their recent television commercials they feature Kate Walsh, an actress on the television show “Private Practice”. They want spokespeople that are appealing but do not draw too much attention away from the vehicle. “Cadillac seeks ‘intelligent yet sexy’ personalities.” Their main strategy is to appeal to the emotional aspects, which can be used in any part of the globe. For instance, in the commercial for the CTS sedan Walsh asks, “When you turn on your car, does it return the favor?” These commercials have been such a hit that Cadillac has decided they will use the same format for other models as well as for commercials that will appear in Europe, Asia and the Middle East [4].

[edit] Lexus

In 2004 Lexus began its marketing globally journey. The company’s main message is “Passionate Pursuit of Perfection”. Lexus decided to branch out this domestic idea and take it worldwide. They realized that using the American ads would not have had as great an impact in other parts of the world so they came up with the idea to modify the theme of perfection. Their approach involved the customization strategy which meant the same concept would be used internationally but each region became tailors who were able to make alterations that best suited each area [5] .

[edit] Chrysler

Finally, there is Chrysler who’s first experience with a global strategy came in 2000 with the launch of the new PT Cruiser. This was their transition from focusing on domestic to foreign consumers [6]. The company brought together marketing individuals from each international region to help put together a global message. This idea of having one concept not only provided the company with one primary message but it also saved money. Before the single marketing concept, each ad in every country would be tweaked to add a local feeling, which required more time and money [7] . With the new strategy, Chrysler used the same television and print advertisements for the PT Cruiser internationally, with the only changes being the language and location of the steering wheel [8].

[edit] Conclusion

When it comes to marketing, the automobile industry has certainly begun the process of reaching customers across the globe. With different marketing strategies, such as customized and standardized, each company has the opportunity to pick a method that best suits their needs. Doing business globally can be challenging at times because the rules are different and change frequently. However, those who can make it work have the opportunity to gain a great advantage [9].

[edit] References

  1. ^ Caslione, John A. “Globalization Demands New Marketing Skills.” Marketing News 37 (July 7, 2003)
  2. ^ Price, Robert W.
  3. ^ Theodosiou, Marios, and Constantine S. Katsikeas. “Pricing Strategies Depend on Similarity.” Marketing News 35 (August 27, 2001): 29
  4. ^ Connelly, Mary, and Laura Clark Geist. “Kate Walsh Effect Spreads to Other Cadillac Advertising.” Automotive News 82 (February 11, 2008): 86
  5. ^ Rechtin, Mark. “Lexus May Take Its New Marketing Plan Worldwide.” Automotive News Europe 9 (February 9, 2004):15
  6. ^ Malbin, Peter. “Marketing for the PT Cruiser Goes Global.” Automotive News Europe 5 (May 8, 2000): 26
  7. ^ “Man Behind Chrysler’s Review, The.” Advertising Age 71 (October 9, 2000): 44
  8. ^ Malbin, Peter. “Marketing for the PT Cruiser Goes Global.” Automotive News Europe 5 (May 8, 2000): 26
  9. ^ Price, Robert W.