MRKT20052: Marketing Management and Digital Communication Report

This report analyzes the marketing implications of the rapidly changing automobile industry. It begins by summarizing key issues, including the impact of technological advancements, digitalization, and emerging trends like car sharing. The report emphasizes the importance of these issues, highlighting their effects on consumer preferences and market dynamics. It then discusses the implications of these changes from a marketing perspective, focusing on how companies must adapt their strategies to address shifting consumer behaviors and technological disruptions. The analysis covers the decline in sales, changes in consumer tastes, and the need for businesses to modify their marketing approaches to stay competitive. Finally, the report concludes by reiterating the need for businesses to adapt to the changing landscape of the automobile industry.

Running head: MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
MARKETING MANAGEMENT AND DIGITAL COMMUNICATION
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Introduction
There are continuous changes in the all the industries especially in the automobile
industry due to rapid advancement of technology, emergence of new firms with new innovations.
With the advancement of technology and continuous innovations in the world, there are huge
opportunities for the existing players in the market (Bloomfield, 2017). There are increasing
trends in terms of urbanization, digitalization, and environmentalism. These trends and changes
in the automobile industry have impacted the consumer views and opinions about cars and their
ownership. The report identifies and analyzes the issues faced in the automobile industry. It
explains the importance of the issue and its implications from the marketing perspective and
concludes the report.
Discussion
Summary of the issues
I believe that there are huge advancement in technology due to the macro trends such as
digitalization, urbanization, and environmentalism. These trends has been impact the consumer
needs and preferences. There has been an increasing trend of car sharing in the industry. The
overall interest in car sharing by companies Uber, Airbnb and WeWork is growing at a rapid
rate. The car sharing has several benefits such as easing congestion, financial and environmental
benefits (Extreme disruption in the automotive industry: a look at the road ahead. 2019). The
increase in car sharing trend has changed consumer preferences of owing a car. The companies
and business organizations operating in the automobile industry have reinvested themselves as
mobility providers rather than car sellers. The changes in the industry have radical impact on the
company’s business models (Delhi, 2016).. This trend of car sharing in the automobile industry

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has reduced the sales of cars and vehicles. However, it has been predicted that the sales of cars in
the automobile industry will outpace shared mobility (Ferràs-Hernández et al., 2017). As
suggested by research, the shared mobility and the trend of sharing cars will partially replace car
ownership by the consumers. It can be said that there are dramatic change in the industry
triggered by development of emerging markets, rise in technologies and changes in consumer
preferences. The diverse mobility, electrification of cars, connectivity, and autonomous driving
are some of the trends in the industry. In my opinion, the rapid increase in connectivity, latest
autonomous technology, and innovation require the business organization and the cars to be
upgradable. The life cycles have become shorter and customers are increasingly aware of the
advances in technology. This will further increase the demand for upgradability in the
manufactured cars and vehicles. These are some of the issues that disrupt automobile industry.
Importance of the emerging issues
The Australian automobile industry has been planning to position itself in the market
amidst the flux. The current wave of disruptions in the industry requires the business
organizations improve or rebuild their strategic planning for the future. However, in the
Australian automobile industry, the individual firms and organizations have undergone little
strategic change (Lee, Woo & Roh, 2017). Dominant firms in the industry like BMW, Toyota,
and Ford have invested millions of dollars in order to position themselves in the market for the
future. However, it is important for the other players in the market to analyze the industry and
it’s shifting foundations to sustain itself. I think that it is important for the firms operating in the
automobile industry to contribute towards the environment and position itself in the market as
the industry take steps towards mass marketing. The emerging issues in the automobile industry

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tend towards further improvements and reduction in the burden of the consumers. The increasing
trend of electrification will reduce the impact on the environment (Matsumoto et al., 2016).. I
also think that the shared cars trends will reduce vehicle congestions in the streets. However,
there are limitations of every technological developments and improvements.
Implications of the emerging issues in automobile industry
Due to the rapid changes in technology and advancement of machinery in the automobile
industry, the companies are facing decline in the sales. There have been changes in consumer
tastes and preferences, they are preferences to share card rather than owing cars. Even I prefer
sharing cars rather than investing huge amounts on buying a car. However, this has reduced the
sales margin and profitability of the companies. The Australian manufacturing has seen sharp
decline in sales (Extreme disruption in the automotive industry: a look at the road ahead. 2019).
The disruptions are occurring in the product, the consumer trends, industry trends as well as the
business models of the business organizations. The huge advanced of technology accompanied
by trends like digitalization and rapid urbanization impact and affect the ways in which
consumers have their opinions about cars and car ownership. The consumers in the automobile
industry are seeking for different physical and performance characteristics of the car models for
status benefits. Therefore, the marketing and advertising of the existing players needs to be
changed considering the changes in the needs and preferences of the consumers (Simchi-Levi et
al., 2015). The retailers of the industry need to structure and market themselves as car dealers in
the digital world where the requirements and preferences change continuously. From the
marketing perspective, the organizations must change in terms of adding value to the products
from user centric position. This will enable the retailers to differentiate its products and services.
The companies need to operate strategically with clear strategic direction (Simchi-Levi et al.,

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2015). The corporate cultures of the business organization must also build new partnerships to
compete efficiently in the future.
Conclusion
Therefore, from the above analysis it can be concluded that the automobile industry is
going through rapid changes and disruptions due to changes in trends and consumer preferences.
There has been rapid advancement of technology and digitalization which leads to disruptions in
the automobile industry. Further the shared car trends in the automobile industry have reduced
consumer preferences of owing a car. These trends and changes in consumer tastes and
preferences have significant impact on the existing players in the industry. The implications have
been discussed in the report.

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References
Bloomfield, G. T. (2017). The world automotive industry in transition. In Restructuring the
global automobile industry (pp. 19-60). Routledge.
Calabrese, G. (Ed.). (2016). The greening of the automotive industry. Springer.
Delhi, S. I. N. (2016). Automotive revolution & perspective towards 2030. Auto Tech
Review, 5(4), 20-25.
Extreme disruption in the automotive industry: a look at the road ahead. (2019). Retrieved 19
December 2019, from https://www.marketingmag.com.au/hubs-c/opinion-farrelly-automotive-1/
Ferràs-Hernández, X., Tarrats-Pons, E., & Arimany-Serrat, N. (2017). Disruption in the
automotive industry: A Cambrian moment. Business Horizons, 60(6), 855-863.
Lee, C. M., Woo, W. S., & Roh, Y. H. (2017). Remanufacturing: Trends and
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Matsumoto, M., Yang, S., Martinsen, K., & Kainuma, Y. (2016). Trends and research challenges
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