Why promotion and branding is important in marketing within the Automotive Industry?

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Chapter I- Introduction
Why promotion and branding is important in marketing within the Automotive Industry?
Introduction:
The International Automotive production industry is a very large varied sector that consists of
suppliers, manufacturers, retailers, wholesalers, manufacturers of the original equipments, after
market parts manufacturers, engineers, mechanics, Auto electricians, body repairers and painters.
The manufacturers of the auto mobile parts & accessories comprise of the automotive that
consists of truck manufacturing industries & auto mobile body vehicle manufacturers & parts of
vehicle & supplies manufacturers. Manufacturing of light motor vehicles come under this section
& automotives, motor vehicle bodies, cabs, chassis, trucks, buses, military vehicles’ etc.
(automotive-online.com)
The promotion and branding is one of the four key elements of the marketing mix strategies of
the organization. The promotion and the marketing strategies employed by the automotive
organizations are Promotion through the Media: eg. Radio, TV, Newspaper, Mobile, Internet,
and advertising for the organization through the hoardings and ad campaigns etc. The automotive
industry also uses the below the line promotion strategies. Below the line promotion strategies
are desired to be subtle for the end customers. The below line promotion strategies used by the
automotive industry may be sponsorship, endorsements, product placement, direct mail, personal
selling, trade shows and public relations. (Lenskold, James D, 2003)
The branding also plays a very imperative role in the automotive industry. A brand is a sign,
symbol, name, slogan or any such thing that is used to identify as well as distinguish the specific
service, product or the business.It is very important that the potential customers have the
awareness of the brand and they value the brand. The brand awareness refers to the ability of the
customer to recognize and recall the brand under various conditions and link the brand to certain
memory associations with the service and product attached with the brand. (Keller)
The automotive organizations are now all over the world looking for the global branding. 
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The global branding has following benefits:
 Brand imagery consistent management
 Integration of innovations as well as the quicker identification
 Economies of scale (production and distribution)
 Marketing costs are lower
 Foundation for future extensions all over the world
(Automotive-Online.com)
1.0 Background Study:
Technological breakthroughs that happened in Europe in early 1800’s gave rise to the beginning
of the auto mobile industry and is also continuing today by leading efforts of American
industries to start bulk cars production. (Paul S. Boyer. "Automotive Industry", 2001). The
downturn up to World War II led to the fragmented auto mobile industry to get united and after
the world war good economic growth, good road systems and advertising helped rising sales for
auto mobile manufactures. (Issue 2- fall, 2004). As industry developed the manufacturers had to
compromise with labors by providing them good salaries and by controlling government
pressures and meeting customer expectations for change in the designs of the automobiles. The
technological development was a question of value for automobiles providing personal freedom
and economic growth .The urban development and trade between economic growth and
environmental issues were considered the effects by scholars. Even today industry mergers and
oil crises and pollution factors are affecting the auto mobile industry. (Marina v N.
Whitman,1991).
The automotive industry designs, develops, manufactures and then markets and finally sells the
vehicles. In 2008, approximately 70 million motor vehicles, which included the commercial
vehicles and cars that are produced worldwide. In 2007, the total number of 72 million new auto
mobiles had been sold worldwide. Approximately more than 23 million vehicles were sold in
Europe; 22 million were manufactured in Asia Pacific, 20 million in Canada & USA. The
markets in the Japan & North America had been stagnant and the markets in the Asia and the 
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South America had a strong growth. The countries of BRIC (Brazil, Russia, India and China)
had shown a very steep and rapid growth rate. The number of the vehicles on the Indian roads
and the Chinese roads has increased significantly. The robust growth shown by the China in the
recent past has made the China the greatest auto mobile producer and the largest market for the
automotive sector. (Paul Niewenhuis Et al,2008).
The automotive industry for example of the UK is very large and is also a very vital and
important sector of the UK economy. The Automotive Industry in the UK accounts for more than
half million jobs. The export finished goods manufactured for the automotive industry UK is £9
bn annually which also approximately account for the o