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Automotive Sector Essay

1677 words - 7 pages

Turkey’s Automotive Sector
Turkey’s automotive sector’s foundations date back to the 1950s. Over recent decades, it has grown substantially, due to two main factors: the large size of the domestic market where individuals were gaining increasing purchasing power as the economy developed; and the enormous expansion of international trade especially following the Customs Union Agreement signed with the EU in 1996. These fundamental factors also drive the long-term growth expectations.
In recent years, the automotive sector has become our country’s leading exporter, with total exports of USD 16.9 billion in 2009, which constituted 17.4 percent of Turkey’s total export revenues.1 Exports were ...view middle of the document...

Segmentation as a process consists of segment identification, segment selection and the creation of marketing mixes for target segments. The outcome of the segmentation process should yield "true market segments" which meet three criteria: First, automotive manufacturers group their customers identity. Secondly, systematic behaviors; a true segment must meet the practical requirement of reacting similarly to a particular marketing mix. The third criteria refers to efficiency potential in terms of feasibility and cost of reaching a segment.
In automotive sector; psypographic segmentation which classify consumers by their values and lifestyles is more important than the other segmentation types. For instance; a consumer with DE social class, uneducated, living in the East part of Turkey, having average income is more likely to buy a luxurious/premium priced car than a university professor living in Istanbul, with average income. As to demographic and geopraphic segmentation the professor will be seen as the potential customer for the company rather than the other consumer. However; it is more likely to be the opposite in reality.
Gfk Custom Research Senior Automotive Sector Manager, Eda Aybaba Çelik says; “in automotive sector the customers are grouped based on demographic, geographic, psypographic and behavioral segmentation criteria, and segmented mainly as follows; Quality seekers, Price sensitives and Driving enthusiasts. The manufacturers that focus on satisfying Quality seeker segment produce luxurious cars with high technologies sold at premium prices. The manufacturers focus on satisfying Price sensitive consumer segment produce vehicles with low fuel consumption sold at affordable prices. For driving enthusiasts, automobile manufacturers produce cars with different accessories and techniques (racing seats, high acceleration technologies, good roadholding etc.)”
Automotive industry product segments consist of Light Commercial Vehicles, Heavy Commercial Vehicles and Passenger Vehicles. The manufacturers product strategies in all product segments are based on after sales satisfaction and CRM (Customer Relationship Management). The marketing strategies in automotive sector are very diverse as to each brand.
By using an automotive customer relationship management strategy an automotive organisation can collect customer data and tailor special customer programmes, services and promotions, based on customer preferences and behaviours. They can also evaluate any existing CRM programmes, perform trend analysis and personalise their services.
After-sales service market has captured manufacturers’ attention, and has been a new advantage for competition. New-vehicle owner satisfaction with the after-sales service process is examined by dealership performance mainly in five key factors: service quality; vehicle pickup; service initiation; service advisor; and service facility. After sales satisfaction is very important in the sector for...

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