Cars, Marketing, and IT

technology, marke0ng, and the future of the car market

Carl Benz Academy Nathan Garre:, PhD

slides available on h:p://profgarre:.com

Crea0ve Commons by-‐sa 2.0.

Why does an IT guy have something to say about cars?

How much code does this car have? Linux: 10m Windows: 50m Boeing 787 Avionics: 6.5m F-‐35 Avionics: 6m $10 per line of code

Source: h:p://www.germancarforum.com/community/threads/modern-‐luxury-‐vehicles-‐claimed-‐to-‐feature-‐more-‐soXware-‐than-‐a-‐fighter-‐jet.28387/ Source: h:p://spectrum.ieee.org/green-‐tech/advanced-‐cars/this-‐car-‐runs-‐on-‐code

SoXware has cost implica0ons

•  SoXware is 10-‐15% of electronics cost.

•  Half of warrantee costs involve electronics

Year Cost of Electronics

1970 5%

2005 15%

Current Hybrids 45%

Current Premium 35-‐40%

2020 Gas 50%

2020 Hybrids 80%

Source: h:p://spectrum.ieee.org/green-‐tech/advanced-‐cars/this-‐car-‐runs-‐on-‐code/0

SoXware has security implica0ons •  Trusted network

•  Accessible through: •  Radio / MP3 •  OBD-‐II Connector •  Tire sensors •  OnStar •  Bluetooth •  Telema0cs •  Applica0ons

•  Control

•  Readouts •  Crash ECU •  Brakes •  Wipers •  Airbags

Source: h:p://arstechnica.com/security/2010/05/car-‐hacks-‐could-‐turn-‐commutes-‐into-‐a-‐scene-‐from-‐speed/ Source: h:p://www.autosec.org/pubs/cars-‐oakland2010.pdf

SoXware has control implica0ons

SoXware has sales channel implica0ons

•  What do dealers add?

Source: h:p://www.cbpp.uaa.alaska.edu/afef/consumer-‐distribu0on-‐channel-‐chaffey.JPG

SoXware has luxury implica0ons

•  What do dealers add?

SoXware has data gathering implica0ons

•  “Black Box” laws in US

How does this change automobile marke0ng?

360 Approach

Integrated Digital

Campaign

Influencer (Blogger)

Consumer via Social Media

Tradi0onal Celebrity

Tradi0onal Print, TV, & Radio

Tradi0onal Events

WWW & Net Adds

Is this what engagement look like?

h:p://www.you

tube

.com

/watch?v=JG8

pzVD

YgNQ

h:p://www.you

tube

.com

/results?search_

query=coke

Or is it this?

h:p://www.you

tube

.com

/watch?v=h

KoB0

MHV

BvM

Where are your influencers?

© 2012 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY

More Internet Shopping = Less Control For OEMs and Dealers (US)

Sources: J.D. Power and Associates/Compete Inc.’s, 2011 Website Performance ToolSM and J.D. Power and Associates 2011 Manufacturer Website Evaluation StudySM (MWES)

17

2.4

3.74.2

1.82.5 2.7

1

2

3

4

5

Non-AIU

'sAIU

's

Submitt

ers

# of Dealers Shopped

# of Brands Considered

39%

63%

79%

0%

25%

50%

75%

100%

DealerSites

OEMSites

ThirdPartySites

Perc

ent V

isiti

ng

Buyers Visiting an Auto Site (≤ 6 months before purchase)

Number of Brands and Dealers Shopped

Where are your influencers?

•  Who are the influencers?

•  Blogs?

•  Forums?

•  Pro/Am

See h:p://www.useit.com/alertbox/par0cipa0on_inequality.html

h:p://advrider.com/

h:p://upload.wikimedia.org/wikipedia/commons/thumb/1/13/BMW_R1200GS_track.jpg/800px-‐BMW_R1200GS_track.jpg

h:p://upload.wikimedia.org/wikipedia/commons/thumb/5/5d/BMW_R1200GS_fully_ki:ed.jpg/541px-‐BMW_R1200GS_fully_ki:ed.jpg

h:p://www.advrider.com

/forums/show

thread.php?t=681994&page=20

h:p://www.advrider.com/forums/showthread.php?t=681994&page=115

Where do your customers go when they have problems?

•  Dealer?

•  Friends?

•  Internet / Youtube?

•  Q&A?

What is their mo0va0on?

•  Enable them to actualize themselves with your brand

•  Social goals – Admired – Adored – Respected

Consumer à Community

1.  Social media means opening up the company brand to risk.

We paved the prairies, we deforested the hills We strip-‐mined our mountains, and sold ourselves for oil To bring you this beau0ful machine, so you can finally drive to see what's leX out of wilderness, and now that we're here We can't get out of the car. America 2006 -‐ the ul0mate padded cell


1.  Social media means opening up the company brand to risk. – Don’t suppress nega0ve feedback; learn from it

2.  Shared ownership with consumer


1.  Social media means opening up the company brand to risk. – Don’t suppress nega0ve feedback; learn from it

2.  Shared ownership with consumer

3.  Openness to republishing/re-‐using content –  Fan page for Louis Vui:on –  Louis Vui:on “Art of Travel”

Facebook

What can you do with a F.B. Page?

Heinz Ketchup Louis Vui:on

Conclusion

© 2012 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY

Customer Understanding Specific performance levels for shopping,

financing, and servicing interactions

People Hiring

Training Compensating

Retaining

“Software” Systems

Processes Culture Attitude

“Hardware” Facility

Tech Tools CI

Business Case CSI-Related Margins, Incentives (Intrinsic, Extrinsic)

Measurement

Shopper, Buyer, Service Tracking, Auditing

Product Quality APEAL Price

Goal Brand and Business Growth

through Customer Experience Excellence

1

2

3 3 3 3

4

Experience Excellence: An Organization View

Everything begins with quantitative definition of the customer interactions that create delight

Products must provide personnel a strong point of differentiation—other than price—upon which to engage customers

Systems must support personnel meeting customer time, knowledge, value, …, needs

Must measure what matters to customers in a way that matters to dealers—business case of delight

ROI for pursuing excellence must be clear to capture (and keep) dealers, field, and other personnel “hearts and minds” so they adopt and maintain the right attitudes

People must be able to consistently meet the variety of customer time, knowledge, and value needs

Hardware must support personnel meeting customer time, knowledge, and overall experience requirements

IT & Marke0ng

•  Recognize IT’s increasing impact

•  Understand shiXs in a 360 approach 1.  Increased risk 2.  Shared ownership 3.  Unauthorized re-‐use

•  Learning from customer engagement

Cars, Marketing, and IT

Education

Transcript of Cars, Marketing, and IT