Purchase Behavior is Key
J.D. Power and Associates published a white paper in April about “The Death of Demographics: Why Targeting by Purchase Behavior is Most Effective in Automotive Marketing.” This comes as no surprise to those within the digital marketing field, because the onset of so much new technology has shifted the way marketing power is focused.
Looking at demographics such as gender, age, and income are no longer enough for informing on the best marketing and advertizing practices. We need data on the consumer lifecycle. We need to be able to look at and measure the consumer’s buying behavior to predict how and when they are going to buy in the future.
“Demographics, more so than many other tools, has proven to be a much less effective tool in the automotive space, particularly with regard to new-vehicle buyers. The most popular models overall are typically the most popular regardless of the particular demographic.”
March 21, 2011
Japan and Automotive Industry Forever Changed?
The events of the March 11 quake and resulting tsunami in Japan have been the hot topic for the automotive industry and the world. Aftermath repercussions from the devastation are still being discovered and long-term effects are difficult to predict.
National Geographic reported:
“The magnitude 9.0 earthquake that struck Japan [March 11] was powerful enough to shorten Earth’s day by 1.8 microseconds and throw an extra 6.7 inches (17 centimeters) into the planet’s wobble, scientists say.”
Japan itself was permanently moved 8 feet by the events. There are some benefits to the data that was recorded, however. A better standard for predicting future quakes is possible if precursors to the March 11 quake can be identified.
Damage to the Fukushima Daiichi nuclear power plant raises additional concerns that have yet to be officially or completely kept under control.
While the cumulative consequences of the quake and tsunami have affected all of Japan, those in the automotive industry turn their attention to the damage and ramifications the disaster will have on production and shipments. Toyota, Nissan, and Honda all put many of their plants on hold.