Download Research of Automotive Technology Marketing Based on Customer’s Requirement

ORIENT ACADEMIC FORUM
Research of Automotive Technology Marketing Based on Customer’s
Requirement
WANG Ying
Automobile College, Shanghai University of Engineering Science, Shanghai, China, 201620
[email protected]
Abstract: Since the events of Toyota recall, car recalls occurs frequently, and the trend seems to be
getting worse. Affected by this, Post Financial Crisis Era, the development of the automotive industry
are facing severe challenges, the quality of cars is questioned by consumers. In order to solve the
challenges and questions perfectly, which automotive industry are facing during its development, this
article combined with market research data, analyzed the characteristics of customer demand when
buying a car, the main factors that influence car shopping, and the relationship effects between various
factors, explored customers’ expectations. On that basis, it researched technology marketing and its
application in Chinese automotive market, found the existing problems in practice, and then proposed
appropriate solutions from five aspects under present market environment, to provide some references
for the actual operation of technology marketing.
Keywords: customer’s requirement, technology marketing, China auto market
1 Introduction
Technology marketing is a new marketing model under the changes and development of market, its
application will not only promote and enhance customers’ understanding about automotive technology
and quality, but also stimulate market demand, and increase market share. During the Post Financial
Crisis Era, eliminating customers’ doubt about the quality of cars that due to the recall, which should be
paid much attention on and solved as soon as possible by automotive industry. So, promoting the actual
application effectively of technology marketing, leading customers to know and grasp automotive
technology, enhancing their understanding about new technique, and winning the trust and loyalty of
consumers, which is an effective way for enterprises to use.
Li Tianbao[1] analyzed some famous brand success stories, researched the role of technology marketing
in the process of enterprises’ actual operation, and explained its impetus for companies’ development,
from product innovation, brand promotion, channel transformation, market cultivation and so on. Fang
Jiaping[2] recounted the dialectical relation between technology and marketing, analyzed the actual
operation of technical marketing through Asustek’s success stories. Li Xianjiang[3] analyzed problems
which existed in the process of high technology enterprise marketing management, he thought
technology marketing is the practical marketing manner that the enterprise should adopt, and it’s the
direction of enterprise development. Zou Yi and Yang Delin[4] summarized famous enterprises’ actual
experience domestic and overseas, analyzed companies asset advantage, they thought technology
marketing is a short cut through which high science and technology company could transform their
technology predominance into competition advantage, and improved fast.
As a new marketing model, the function of technology marketing is being explored continuously.
Different from previous literatures, this article took market research data as a enter point, known present
automobile customers’ psychology through statistical analysis of data, and combined with the market
environment during Post Financial Crisis Era, analyzed the application status and problems, then give a
proposal to use technology marketing model based on customer demand, and promoted its function from
its content, supply chain management, information feedback of customer requirement, etc.
2 Technology Marketing
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Technology marketing means enabling customers to know, understand, and accept the new technology
products in the short term, through system capacities such as technology services and professional
knowledge. The object of technology marketing is knowledge, a technology, rather than a specific
product. The primary purpose of technology marketing is to help customers master the technology
knowledge and technology, and accept this technology. Technology Marketing reveals that the process
of marketing exists not only after the new production, but also along with the whole process of
technology research, development, and promotion; its basis is raising the technological level through
technological innovation, and thus improves the enterprise's core competitiveness. Take technology as
the guide, to expand and gain market by product technical advantage.
3 Status of Chinese Automotive Market
"China Automobile Industry Yearbook" data, 10 years as a unit, the first decade of nation-building,
automobile production was only 45,000; the last decade (2000-2009), car production up to 52.25 million,
is 1155 times of the first decade, and 1.9 times of the first 50 years (from 1955 to 1999, the production is
18.16 million vehicles). 2000-2009 Chinese automobile sales are shown in figure 1.
Figure 1 2000-2009 Chinese automobile sale (ten thousand)
Although affected by the shock of global financial crisis, China's auto market continues to increase and
exceeds our expectations. January-July 2010 Domestic auto productions and sales were more than 10
million, up 40% year on year respectively. Domestic auto sales in July continued to drop compared to
last month; the increase rate was dropped to less than 20% compared to last year. Dong Yang, who is
the Executive Vice President and Secretary General of China Association of Automobile Manufactures,
said that domestic auto production and sales may be more than 16 million this year, and reelect world
first.
Throughout the development process of China's auto market, the overall shows a situation which was
positive, steady, and sustainable development. However, after Toyota’s recall events, auto recalls
happen frequently. Although the major brands had taken active and effective measures to deal with the
recall, in order to maximize consumer brand trust, but the automobile recall is getting worse, it is
inevitable that recall caused consumers’ suspicion of automotive products, while also resulted in impact
that cannot be overlooked of the development of the automotive market.
4 Automotive Technology Marketing Based on Customers’ Requirement
Technology marketing is a model which utilizes enterprises system capacities, such as technology
service and professional knowledge, to make customers know, understand, and accept a new technology
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and new product in short time, launch a series of activities such as product communication and
promotion, around the new technology of product. Technology marketing takes technology as means
and method, and does a series of marketing innovation and change activities on products, marketing
channels, brand communication, service, consumer culture, and opening up new markets [1].
The relationship between technology and marketing is actually a dialectical relationship of mutual
promotion: technological development takes marketing as a guide, it provides material conditions for the
realizations of marketing innovation and marketing strategy; marketing cannot develop without
technological support, the faster the Technology develops, the higher level the marketing need to adapt
to it [2].
4.1 Analysis on requirement of Chinese automotive customers
The rapid development of automobile market, provide consumers with more models and options. First
of all, analysis on the reason of consumers car shopping (data from Shanghai, "You Qing" project)
showed that 54% of consumers buy cars for drive instead of walk, such as work, daily travel, etc.; 20%
of the respondents were mainly for the leisure, such as self-driving travel, etc.; 18% of respondents
thought that car is essential to their life as partner; still 8% of the people thought cars as status symbols
(shown in figure 2). Market research results showed that the vast majority of consumers buy cars mainly
used for daily travel.
Figure 2 The reason of customers car shopping
Because of daily travel, consumers put forward higher requirements of brand, quality, service, and so
on.
Analysis results of market research data (data from Shanghai, "You Qing" project, the following is the
same) shown that among the four major factors which are price, technical performance, brand, and
service, consumers made sort multiple choice, ranked number one factors, the number of respondents
who chose price is top one, followed is technical performance, brand and service (shown in figure 3).
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Figure 3 the primery factors that influence consumers car shopping
The second element choice shown that 30% respondents chose technology performance; followings are
brand, service, and price (shown in figure 4).
Figure 4 The second element that influence consumers car shopping
Thus, the price is still the main determinant element which impact Chinese consumer buying cars at
present, and in addition to price, technical performance is another important factor when they buy cars,
which is consistent with the main reason (drive instead of walk) of car shopping, frequent travel must
need higher technical performance.
To meet the travel needs, China’s consumers are paying more and more attentions on various technical
performances, the power, security, economic, and other performances are concentrated by consumers.
For auto enterprises, to use better marketing strategies, elaborate and explain the technical performance,
will help consumers to make better choices, thus Enhance brand image and to achieve the sales purpose.
Technology marketing is a strategy that can satisfy customers’ technology requirements.
4.2 Analysis on auto technology marketing status
At present, many companies stimulate automotive communication and promotions by using technology
marketing model, in order to improve sales, but there are still some problems in the process of actual
operation.
First, the understanding of technology marketing model is not enough
Many companies just automatically comprehend technology marketing is technology add marketing,
when they introduce this new marketing model, neglect the relationship between technology research
and marketing; they think that the relationship between the two are side by side, so that two parts are
two separate area in practice. On one hand, research and development department just focus on the
technology development, on the other hand, marketing department only concentrate on sales and
promotion, lack of information exchange and interaction between departments.
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Second, only focus on marketing aspects, while neglecting other processes
Technology marketing only focus on marketing aspect, while neglect cooperation and collaboration
among departments, result in resource waste because of research, design, production, manufacture, sales,
and transportation of the whole supply chain management, and increase the cost of supply chain
management, decrease the application effect.
Third, Lack of attention to customer needs
The application of technology marketing take technology as the guide, communicate new functions and
features of automotive product, after new technological innovations. While today's car market is a
buyer's market, only products that meet customer demands will ultimately win the favor of customers.
Single-minded pursuit of technological innovation, while neglecting the needs of the market is likely to
lead to having a price but no sales.
4.3 Automotive technology marketing based on customers’ requirements
Regard technology as the direction, only focus on production technology while neglect marketing,
enterprises will lose the direction of product research, cannot be able to satisfy consumers demand, and
will be eventually eliminated by the market. While only focus on marketing, neglect technology and
research, customers’ requirements still cannot be satisfied with high quality, fast speed, and high
efficiency. Thus, reasonable utilization of technology marketing model and full satisfaction for customer
demand is the problem need to be solved as soon as possible by automobile production and sales
companies.
First, correctly understand the meaning of technology marketing
Technology marketing is not just the sum of both technology and marketing, but throughout the whole
process of research & development, manufacturing, promotion. Enterprises should fully understand the
meaning of technology marketing; make a rational and efficient system for technology marketing’s
application, rather than algebra summation of two separate departments.
Second, make technology marketing throughout the supply chain
Technology Marketing not only exist after the new product, but exist within the whole process of
technology research, development, and promotion, enterprises should take advantage of all aspects of
supply chain management, master the dynamic application of technology marketing at any moment, to
reduce costs and improve efficiency base on fully utilization of resources.
Third, regard customer’s demand as guide
China's auto market is becoming more competitive, consumer demand becomes important. To win the
market, enterprises must first win the customer. Therefore, technology marketing should be
technology-oriented, through market research, to understand the psychology characteristics of
consumers and demand about product performance, and transfer the information to R&D department,
production and promotion department, to control the application process of technology marketing
effectively, and further improve product sales.
Fourth, make marketing strategy planning based on consumer characteristics
Using technology marketing model for communication and promotion, activities should be organized
and planned according to the characteristics of consumers, especially some important factors which
decide consumers awareness and understanding capacities, such as age, education, and so on,
positioning the promotion manner and advertisement, so that to narrow the distance with customers, and
improve the efficiency of marketing strategy planning.
Five, grasp the changing trend of customer demand
Regularly organize activities which can attract customers, enhance the emotion with them, grasp the
changes of consumer requirement, and share the information among variable relevant departments, to
realize the closed loop control of the supply chain, in order to optimize management and increase
profitability.
5 Conclusion
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Technology marketing is a new marketing model under the incessant changes and development of
market. China’s automotive industry is faced with challenge and threat because of the Financial Crisis
and consumer doubts about automobile technical performance and quality, technology marketing can
help enterprises better communicate and promote their products and win customers, to grasp and hold
the market. Enterprise should combine the customer requirement with technology marketing effectively,
and maximize the marketing performance. Effective application of technology marketing which regards
consumer demand as guide in China’s automotive market will promote the marketing management
innovation of Chinese auto industry, and provide power to its development.
Acknowledgements:
This work is supported by specialized Research Fund for outstanding young teachers of Shanghai
University, project number: gjd08045.
This Work partially supported by Shanghai University "085 Knowledge Innovation Program" Project
funding (085 Project), project number: JZ0901.
References
[1] Li Tianbao. Technology marketing=Technology + Marketing? Marketing Lyceum.
2007(1):P24-28(in Chinese)
[2] Fang Jiaping. Technology Marketing Fascination. BEIJING INDUSTRY & COMMERCE.
2003.11:P39-41(in Chinese)
[3] Li Xianjiang. Discussion On marketing management of high technology enterprise. Modern
Business Trade Industry. 2009(2):P124-125 (in Chinese)
[4] Zou YI, Yang Delin. Technology Marketing Strategy of high Technology Enterprise. Science and
Technology Management Research. 2003(5): P41-43(in Chinese)
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