Tag Archives: Business

Red Volvo S60 Polestar
Business, Economy, Marketing

Automotive Consumer Demographics Are Proven To Be Right In Car Shows

Leave a comment
Red Volvo S60 Polestar

Volvo S60 Polestar

If you’re a car enthusiast, a follower of Car & Driver, Top Gear, or other car magazines on Facebook, you’ve probably read or been a part of conversations on which car is better. You’ve also most likely had to defend your position numerous times as you believe that the car you like is indeed better. Well, you’re not alone. This happens on a daily basis between car enthusiasts, but what do market and consumer demographics have to say about brand’s perceptions, build quality, and overall popularity?

Auto shows are a great way to find out which car you like, but from a business and marketing standpoint, you find out who is actually buying what brands, their age, gender, relationship status, and where they stand in financial stature. The beautiful women who are employees of the car brands are always around at the desks to either answer questions, or in my experiences the past two years, to ask questions on what I think of the car and what could be improved. These employees are survey takers, and are also marketers as well. The knowledge of the consumer demographics are beyond what I know, but after really taking a good long look at the cars and crowds, it’s clear that there is a dramatic difference between consumers of certain brands.

“Cadillac Is An Old Person’s Car”

Being a college aged adult, Cadillacs are beyond my financial reach to begin with, but with a resurgence taking place within the company, many younger adults are beginning to look at the luxury GM brand a bit differently. Some have emphatically defended Cadillacs over the German competitors, and on occasion insult those who disagree that the American automaker is an old person’s car and make vehicles car companies used too make. Last weekend, that perception held strong.

To humor myself I wanted to sit in the new ATS and other models Cadillac is introducing and selling. Each time I made an attempt, 65 year olds and retirees were the ones looking at those cars, spending much time in the driver seats, making it appear that they do intend on owning one in the near or distant future. The cars that were present didn’t draw in younger people, and there were very few middle-aged adults taking good long looks at the Cadillacs. Right now the luxury car maker is trying to compete with Audi, BMW, and Mercedes Benz, and currently they’re not drawing anywhere near the same crowd.

Mercedes Benz Is Trying to Be The Car Of The People

It’s absolutely incredible what Mercedes Benz has done with their lineup. They have a car for almost every market in the automotive world. From small compact sedans, to full-sized SUV’s, Mercedes has by far made the biggest impact in the automotive industry and consumers are taking notice. Having gone to the auto show in Boston two days over last weekend, the results were the same. There were dozens of people swarming over the Mercedes Benz’s, and with an array of different models, people were spending close to 10-15 minutes talking about the cars, taking photos, and sitting in the driver seats.

It’s clear that Mercedes Benz wants to be in every single market. They recently began marketing the new B-Class which runs on electricity, a market that is growing every month, as Tesla’s success is putting pressure on other manufacturers to begin producing cars that run on electricity.

Volvo: The Family Car For The Family Oriented Adults

As a Volvo owner myself, I know the perception of the Swedish automaker to be safe and for the middle class adult who has a family. I’m happy to say that’s the complete and honest truth. Families with young children were surrounding the Volvos, especially the XC60 and V60, one being a crossover SUV the other being more of a traditional station wagon. Cargo space and comfort appeared to be the most important aspects of the cars themselves for the families looking at them, and having foresight of their demographics, Volvo even set up comfortable chairs to sit in within their section of the auto show so kids could have a place to rest.

However, the Volvo that was attracting many young adults was the S60 Polestar. A turbocharged 6 cylinder engine putting out 325 hp would get anyone excited. This car was by far the most popular attraction for Volvo in terms of reaching consumers of multiple demographics.

Right now car companies are competing for a strong stake in the automotive market. At times it appears that some of the auto brands are going away from their identity to attract consumers who weren’t originally part of the specific market that bought those cars. For Cadillac, they’re in a Catch 22 because they can’t look back, but they’re also having great difficulty in moving forward because the Germans are always one step ahead. At the end of the day, the demographics reveal all about who is buying what. Auto shows are the best way for these companies to get a feel for the market and who they’re attracting, and for some brands, they have a lot of work to do before they begin to compete with Mercedes Benz, Audi, and BMW.

Instagram Login
Blogging, Business, Economy, Marketing

Effective Social Media Marketing Starts With the Person Behind the Account

Leave a comment
Instagram Login

Instagram Log In

Effective social media marketing all comes down to the level of intensity, passion, and love for the product, business, or service your company is offering. If you don’t believe in the product, are unsure whether it will sell, or have very little interest in what you’re selling, I can guarantee you will not see the results you are hoping for. A business owner, Youtube vlogger, blogger, or social media manager’s passion for what they’re selling, talking, or writing about is present in their work. If they love what they’re doing, it will be shown through the quality of their work.

The person behind the social media accounts, whether they’re the marketer or the business owner, take on the business’, blog’s, or website’s brand. That brand is constantly being shared through the statuses, pictures, and tweets, and the passion that the social media manger has for whatever is being sold or shared will ignite others to respond and take a closer look at what your company does or what your website talks about. Social media has become the face of the company’s brand. While you, along with what you post, is the heart and soul. If you write or share content that comes directly from the passion you have for the subject, you will get noticed.

This coincides with the amount of times you should post on your social media pages. People always ask, “How many times per day should I post content on my accounts?” My answer is, if you truly love and believe in what you’re selling, the number of times you post no longer becomes an issue because you’ll always find interesting content to share with your followers.

On Twitter, why are some entrepreneurs better at maintaining their large group of followers while others become the occasional tweeter who just shares content but nothing more valuable? Some would say lack of time, but if you truly love your business you most likely want to talk about it to anyone who wants to engage in a conversation. Who knows, you could learn something from your followers by listening to them and engaging in two way conversations.

Social media marketing really does come down to the passion you have for your business, service, or product. Being apprehensive and shy towards reaching out to potential clients and customers becomes less of a problem when your truly believe in what you’re offering to make their lives and businesses better. Just as when we were in school, we never put in the effort to do better in the subjects we hated or had no interest in. But those classes that made us think, be creative, and formulate new ideas were what got us through school.

Whether it’s a hobby or the line of work you do, social media is the tool that helps us reach out to like-minded individuals, clients, and customers who will walk into your store’s doors or buy your products online. It’s imperative that we use social media to our advantage and see a ROI that you’ll never get from traditional forms of marketing.

Chrysler 200
Economy

Pricing In The Automotive World Is All Wrong

Leave a comment
Chrysler 200

The Chrysler 200 at the New England International Auto Show

This weekend the New England International Auto Show came to Boston, which if you haven’t attended, make a note of it for next year because it’s great for the entire family and well worth the experience. Auto shows give the consumer access to cars from an array of different brands so they can compare them in terms of price, comfort, and options in real time and in person instead of comparing them online. As a student of business and marketing, and also being financially aware, I took notes on the prices of some of the cars and their brands. Needless to say I was stunned at the findings.

When it comes to buying a Hi-Definition television, you’re already aware of the fact that you’ll be spending more when you look at bigger screens. With furniture, you know that leather seats will cost more than other materials. You also know that if you want a powerful gaming computer or laptop, you’ll be spending top dollar as opposed to the typical laptop that comes with standard specifications and options. So then why can’t the auto industry be like the rest of the product related markets?

High quality brands sell, that’s just fact. People are going to buy cars from Mercedes Benz, Audi, and BMW before others. So why is a fully loaded Chrysler 200 the same price as Mercedes Benz CLA or well equipped Audi A3? We can argue that some consumers have certain preferences and tastes, but to buy a car that’s priced as a luxury car that really isn’t will undercut sales for these companies in the long run. I’m sorry, but Chrysler and Buick are just not going to compete with the Germans, they can’t. The sales figures are overwhelmingly pointing to consumers choosing foreign cars over domestics, but still American brands continue to fight an uphill battle.

While there are companies like Chrysler and Buick who are trying to be something they’re not, Infiniti and Lexus are paving their own path that separate themselves from the Mercedes Benz’s of the world and continue to march to the beat of their own drum. While their prices are in the range of Audi and BMW, their cars don’t resemble what’s coming out of Germany.

In the hatchback market, Volkswagen continues to thrive off their Golf and GTI line, but consumers have other choices that are more affordable and practical. A fully equipped GTI will set you back close to $32,000, while a fully loaded Kia Forte Hatchback is priced at $25,000. Most consumers will buy based off horsepower and performance, but when it comes to legroom and comfort, the Forte gets the point.

The last observation from the car show is GM’s brands competing against each other, which is something Buick is trying to end by introducing cars made by the German automaker Opel. Chevrolet always seems to take a model from Buick or had taken similar concepts from other GM’s subsidiaries and sold them cheaper, undercutting Buick’s, Pontiac’s, GMC’s and Saturn’s sales. Cadillac is moving in their own direction, and by moving headquarters to New York they’ve separated themselves from Detroit and GM.

In the final analysis, all the car companies are manufacturing top quality cars for every type of consumer. Unfortunately because of that, most car brands are all competing for the same market instead of dominating a market that they’re good at and can sell many cars without much competition.

Economy, Marketing

It May Be A Great Product, But What Do The Sales Figures Say?

Leave a comment
Walkman
muadib.ar / Foter / CC BY-SA

Whether you’re selling candy, clothes, automobiles, tech gadgets, or any other products you can think of, everything you do behind the scenes and in your marketing strategy mean nothing unless the sales figures reflect the day-to-day operations and processes. The product may be great, it may look cool, and you may think it sells, but if there are no buyers and sales figures are down, changes have to be made to create a desire and want for the product you’re trying to sell. When it comes to products, there is so much to selling and marketing than what you, or your friends think, and what may seem popular in one clique, could be completely irrelevant to a broader customer base and bigger target markets.

At the International Consumer Electronics Show in Las Vegas, Sony unveiled their new Walkman (I know, we’ve suddenly taken a trip to the past). It will be on sale for a mere $1200 this Spring. While Generation X can have their flashbacks down memory lane, the issue comes down to what we should expect in terms of sales figures. Taking on Apple where they’ve dominated since the beginning of the millennium is a very bold strategy. Most MP3 players have failed against the iPod, why should the Walkman expect to steal market share away from Apple?

At $1200, are consumers really going to buy that over the traditional iPod? As a consumer and student of business, these questions have to be raised. We’ll find out soon enough, but let’s move our attention to automobiles that are selling, and in particular Cadillac.

Over the past 6 months all you’ve heard from Cadillac is how they’re going to take on BMW, Audi, and Mercedes Benz. ‘The reign of the German Big Three is coming to a close because they’re not making cars like Cadillac’, is essentially what the leaders of the American luxury brand has bragged. Well, the annual sales figures have been released, and it’s time to see who has ended up with egg on their face.

According to goodcarbadcar.net here are the statistics.

Audi: Sales up 15.2% in 2014 from the previous year.
BMW: Sales up 9.8% in 2014 from the previous year.
Mercedes Benz: Sales up 6.5% in 2014 from the previous year

And then there’s Cadillac.

Sales figures down 6.5% in 2015 from the previous year.

Cadillac is improving from what they’ve produced over the past few years, the problem however is the very strong perception that Cadillacs are still owned by older folks, and even worse they’re still a branch of GM. Once again, the product can look great and may be a better option, but the sales figures don’t show that.

Another example is coming from a different side of the business spectrum, the branding, marketing, and advertising branch of business. Entrepreneur Magazine shared an article discussing 10 of the worst new logos for big companies in 2014. While a few are clearly bad, others were an improvement and further developed the brand and direction the company is moving in. Whether these logos were bad or not, what do the sales figures have to say?

Personal opinion is what blinds us all from seeing the truth, and in this instance I’m talking about business, and this can be from the owner or the consumer. Sales figures show no bias, they have no favorites, they reflect the changes that really matter, positive or negative. Sony’s Walkman could be a huge bust or a success, but at $1200 let’s see how long that price lasts when consumers can buy an iPod for much less. Cadillac is being aggressive, attacking the German auto brands and trying to compete against the most popular car companies in the world. In 2014 they failed to live up to the hype. Lastly, personal opinion that fails to see what the sales figures really say, loses all credibility.

In business there are two things you must be aware of, listen to, and learn from. Sales figures and the consumer. These two aspects tell the truth. The customer is always right, and sales figures are never wrong.

Marketing

Marketing Your Business Or Product Through Storytelling

Leave a comment
BuzzFeed
Scott Beale / iWoman / CC BY-NC-ND

In this day and age, the last thing you probably want to see from companies is an annoying ad that jumps on your screen that slows you down from watching a video or reading an important article. We’re now living in a time where businesses don’t have to waste money marketing with written ads, TV commercials, outdoor marketing, or even email marketing, which has seen a decline in effectiveness since social media’s emergence. With that being said, these same businesses can make a two minute video that captures your attention and emotions towards a particular product and make those two minutes worth your time. However, businesses don’t capitalize on storytelling, despite the fact that they have all the tools at their disposal.

Toyota paired up with Buzzfeed to create a funny two minute video comparing your first car, which was probably a lemon, and your real first car that’s new, clean, and cool to look at. By comparing how we treat both cars, any driver can relate. My first car had no power windows, no power locks, and a horrible sound system. I didn’t care if was clean on the outside, all that mattered was that it drove. But when the new car came around, you can believe that there were strict rules about eating and drinking in the car. This video was promotion for a Toyota Corolla, and by creating that emotional connection, viewers could easily relate. Plain and simple this was a car ad masked by using Buzzfeed to help promote the car by telling a story.

The question that I’ve asked myself is why aren’t other car companies or even businesses doing this? It’s one thing to create a cute 30 second TV commercial, but it’s quite another to get a reaction to a longer, well thought out video that gets immediate results. I’m not interested in a Corolla, but for 20 somethings who are in need of a car, they may consider buying the Toyota because of Buzzfeed’s marketing and storytelling that got the viewer thinking and made them reminisce about the old days.

As a business owner of a web design company, BostonWebWorx, I know the difficulties of trying to create a website by yourself. It’s not easy, and most web design books don’t help because they assume that you have some understanding of the basics, which we all know we weren’t taught in school. By once being that teenager trying to create his first blog and spending more time on the appearance than the content, I know that feeling and frustration. With my business and team I’ve assembled, web design has become very simple, and best of all, because we use WordPress designs, there’s less hassle and no headaches for you. Google analytics and SEO are already taken care of, and if you want to change the content a few months later you can easily do so when you log into your account.

Because I can relate to the customers, I know where they’re coming from, I understand their frustration, and I can offer them a website they’ll be excited about. Just as the Toyota Corolla ad through Buzzfeed, they knew who they were targeting, understood their frustration, and offered a solution by showing off their Corolla to the audience they know are in need of a car. That’s how you market through storytelling. Most ads that you see on TV don’t create any connection which is why they don’t see a strong ROI. You need to tell a story, and with social media and Youtube you can accomplish that.

Business, Economy, Marketing

Is Social Media Becoming The Digital Golf Course For Business?

Leave a comment
Golf Course: West Virginia

Golf Course: West Virginia

The Internet and social media have changed how we do business, connect with other professionals, and communicate within the digital world that has been created and continues to evolve today. Prior to Facebook, Twitter, and Linkedin’s existences, business was conducted through multiple avenues that required one to either travel, visit an office, play on a golf course, or have lengthy discussions on the phone or in person. Today, business decisions can be made with a click of a button, instant messaging, talking back and forth on social media platforms, and video conference calls. While many still do business as if it was 2003, heading into 2015 there are more time and cost efficient ways that can close deals within minutes.

Marketing isn’t what it used to be. What was once a “push and sell” philosophy has become more personalized and down to earth where both sides of a deal need to be familiar with each other and create a business relationship. That wasn’t completely necessary in years past. We live in the social media age where everything has become “social”. You can connect and follow a CEO who runs a business a few blocks down the street from where you live, and almost instantly create some form of a friendship through mutual interests if communication takes place.

Yes, this seems like something out of elementary school, but as Gary Vaynerchuk, who is the founder of Vayner Media and turned his father’s $3 mil wine business into $60 mil, has said repeatedly over the years that we’re seeing a youth movement in our society. A 40 year old man twenty or thirty years ago acted much older than a 40 year old in 2014. When adults are texting “LOL” and “OMG”, using hashtags, and talking about their favorite athlete or sports team on social media, you realize that how we socialize today can also shift how we market to multiple generations tomorrow.

The beginning stages of conducting business have been made on social media in the past, whether that’s B2C or B2B. When a 21 year old can talk to a 35-40 year old business owner on Twitter or Facebook, the foundation for a virtual interview is there. When that 21 year old who is an aspiring or current business owner starts talking with that experienced entrepreneur, a business connection can be made and it could lead to business transactions or a possible interview for an internship or job.

We are living in an amazing time. While you’ll say, “That doesn’t happen in business” it already has and will continue. Even in B2C marketing, Twitter has become the platform for businesses to offer their services to customers who might need it. I’ve seen business card offers, web design, SEO, advertising, and marketing pitches on social media, not just Twitter. Thinking that business can only be conducted the way it’s been for the past 100+ years in backwards thinking; we’re now heading into 2015.

The sooner we see the endless possibilities social media has, the sooner we can start advancing ahead in our careers, begin to build business relationships with people we may never have met, and grow strong business connections that not only benefit those your business’ services can help, but also get you loyal and lifelong customers and clients.

Business, Economy, Marketing

Content Marketing: Necessity vs Want

Leave a comment
Ferrari 458 Italia
Philipp Lücke / Foter / CC BY-NC

In any retail industry, marketers and advertisers can go one of two ways; market necessity or market want and desire. The two strategies can either lead to the same outcome or have drastic endings depending on the industry and product. Sears can promote a more expensive washer and dryer that goes above and beyond the call of duty, but if the average consumer only needs the basic models that cleans and dries the clothes and the price tag is within their means, they’ll pick that 9 out of 10 times. This is where businesses, informative blogs that help consumers make buying decisions, and magazines can either lose their customers or have an entire readership of clients of window shoppers who can’t buy the eye candy.

The automotive industry has this same problem, and with no help from car magazines and blogs, the dealership and consumer lose out. When you read your favorite car magazine, what are the cars they usually test drive? BMW’s, Mercedes Benz, Maserati’s, Ferrari’s and Porsche’s. While the magazine is creating eye appeal similar to the Sports Illustrated Swimsuit Edition, it’s not being much help to the reader in the long run. Yes, for a moment in time they’ll be dreaming of driving that car, but there is no long-term value for the consumer, and instead of making the transition of reading to buying, they just read and dream.

I’ve always held Cars.com to a high standard as they promoted cars you can actually drive and buy, but even they fell into the trap of showing off the eye candy. It was interesting to see the features the BMW i8 comes with. But with a starting price of $135,000, how many of the thousands of readers will actually visit their local BMW dealer, test drive it, and buy it? Maybe 1-2% at best.

This has become the growing problem in the retail world since the early 2000’s. Some companies promote want over necessity. But if a majority of consumers live within their means, they’ll buy necessity products that are usually cheaper, but the number of sales will be drastically increased. It’s the same argument as going basic or premium. Most consumers will lean more towards basic models of a product more than the premium, unless they see long-term value.

In the summertime, people are more apt to buy an air conditioner with more features because they believe it will bring them more value and a cooler house. If you decide to promote want over necessity, you have to distinguish the difference in products. Unlike candy or tickets to a concert or sporting event, cars, washers and driers, air conditioners, TV’s, and laptops are products you have to live with for a while, they’re not just a one-time, one day event.

Always market value. The consumer will make the purchasing decision that best fits what they need, but if you persuade them to go premium, you have to complete the sale and be prepared for the multitude of possible questions they may ask. Long-term value is what it all comes down to, and as marketers and advertisers, you must show them that they do just that. Car salesmen try this tactic, but if the buyer sees that the basic car meets the demand and need while also giving them value, they’ll not pay extra for the car with leather and heated seats. There is no question that they want it, but do they need it? When it comes to cars, most consumers will stick within their means, smaller items and products on the other hand that are much more affordable and don’t require monthly payments could entice the buyer to go with want over necessity.

At the end of the day, if you promote and advertise premium and want, make sure they provide the best value for the consumer. Of course, your target market will certainly decide what route you take. But if your target audience is broad with different income levels, be prepared to sell hard on both, while also making sure each individual buyer is satisfied, whether they buy necessity or want.