EUROPEAN CAR MANUFACTURERS INVESTED 1,100€ IN SALES PROMOTION PER CAR SOLD IN 2004
Germany and Spain invest the most in sales promotion per passenger vehicle
London, 8th August 2005. Car manufacturers operating in Europe invested 1,100 euros (?730) in sales promotion for every passenger vehicle sold in 2004, according to findings of a study carried out in 6 European countries by leading global provider of marketing information, TNS, using the Promocar tool. The total investment in sales promotion in the countries covered by the study -Germany, Italy, Spain, France, the United Kingdom and Portugal – rose to over 12 billion euros.
The Promocar study also reveals that promotional efforts in the car market are on the increase, with a 10% rise in investment per passenger vehicle sold in Europe since 2003. However, promotional techniques vary from one market to another. As Marc Bouvier, Director of Promocar studies for TNS comments "While discounting continues to be the most standard way of promoting carbuying in Spain, in the United Kingdom attractive financing packages have been strongly implemented, whereas Germany has witnessed the development of special multiple series or action models."
Other recent trends highlighted by the study include the diversification and sophistication of promotional policies. Many car manufacturers who were traditionally regarded as belonging to “specialist” or luxury categories used to shy away from using sales promotions as part of their marketing mix. Today however, promotions are beginning to be used across the board, although the promotion features are adapted to suit the client, for example offers may include attractive leasing formulas, free high-tech equipment or driving courses.
In Marc Bouvier’s view, "These practices have become so deeply ingrained in buying habits that it is now unlikely for a buyer to sign an order form without trying to obtain some kind of discount, free gift or bonus from the salesperson or dealer. Today it is practically unheard of for a vehicle, whatever the category, to be purchased at the list price, without some sort of incentive." Promotional Investment per car sold.
Promocar is Europe’s leading market research study focused on promotional activities in the automotive sector. Through simulations of regular purchases, the study describes and quantifies promotional campaigns and also closely monitors the market place. Promocar has become an indispensable tool which enables marketing professionals to track - in real time– new developments in this remarkably competitive field, and to ensure that their strategies obtain maximum mileage over those of the competition.
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