The Role of Sub-Cultural Factors of the Automotive Industry

In: Business and Management

Submitted By nurulullah
Words 2107
Pages 9
Assignment 1

In this assignment I will be evaluating the role of sub-cultural factors such as social class, age, gender, race or ethnicity as they affect consumer behaviour in my chosen market. The market I have chosen to investigate is the automotive/car industry. Also I will be discussing how a marketing manager might improve their marketing through use of my analysis of sub-cultural factors.

Automotive Industry Outlook

Automotives are an essential part of the daily life in the UK; about 75% of households own at least one car. Despite this, the Motor Vehicle Manufacturing industry has had a bad time recently. Industry revenue is forecast to stagnate at 0.1% per annum growth over the five years through 2011-12 to reach £37.4 billion. Car and commercial vehicle production is expected to decline by 2.5% per annum over the five years through 2011, to about 1.45 million vehicles. Revenue is expected to grow by 4.2% in 2011-12 but this positive performance is nothing to be complacent about.

Competitive pressures and increasing complexity have led automotive companies to look for an edge wherever they can find out. Improved customer insight into vehicle shopping and buying behaviour can provide that valuable advantage.

Cultural Factors
Cultural factors have a significant impact on customer behaviour. Culture is the main reasoning behind a person’s wants, needs and behaviour. Marketers are always trying to spot cultural shifts which might point to new products that might be wanted by customers or to increased demand. For example, the cultural shift towards greater concern about health and fitness and environmental friendliness has created opportunities for marketers to push their product in this direction.
Each culture contains “sub-cultures” – groups of people with share values. Sub-cultures can include nationalities, religions, racial groups, or groups…...

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