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Cars, Marketing, and IT


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  • 1. technology,  marke0ng,  and  the     future  of  the  car  market   Carl  Benz  Academy   Nathan  Garre:,  PhD     slides  available  on  h:p://  Crea0ve  Commons  by-­‐sa  2.0.      
  • 2. Why  does  an  IT  guy  have  something  to  say  about  cars?  
  • 3. How  much  code   does  this  car  have?   Linux:  10m   Windows:  50m   Boeing  787  Avionics:  6.5m   F-­‐35  Avionics:  6m   $10  per  line  of  code      Source:  h:p://­‐luxury-­‐vehicles-­‐claimed-­‐to-­‐feature-­‐more-­‐soXware-­‐than-­‐a-­‐fighter-­‐jet.28387/  Source:  h:p://­‐tech/advanced-­‐cars/this-­‐car-­‐runs-­‐on-­‐code  
  • 4. SoXware  has  cost  implica0ons   •  SoXware  is   Year   Cost  of  Electronics   10-­‐15%  of     1970   5%   electronics  cost.   2005   15%   •  Half  of  warrantee     Current  Hybrids   45%   costs  involve     Current  Premium   35-­‐40%   electronics     2020  Gas   50%     2020  Hybrids   80%  Source:  h:p://­‐tech/advanced-­‐cars/this-­‐car-­‐runs-­‐on-­‐code/0  
  • 5. SoXware  has  security  implica0ons   •  Trusted  network   •  Accessible  through:   •  Radio  /  MP3   •  OBD-­‐II  Connector   •  Tire  sensors   •  OnStar   •  Bluetooth   •  Telema0cs   •  Applica0ons     •  Control   •  Readouts   •  Crash  ECU   •  Brakes   •  Wipers   •  Airbags  Source:  h:p://­‐hacks-­‐could-­‐turn-­‐commutes-­‐into-­‐a-­‐scene-­‐from-­‐speed/  Source:  h:p://­‐oakland2010.pdf    
  • 6. SoXware  has  control  implica0ons  
  • 7. SoXware  has  sales  channel  implica0ons   •  What  do  dealers  add?  Source:  h:p://­‐distribu0on-­‐channel-­‐chaffey.JPG  
  • 8. SoXware  has  luxury  implica0ons  •  What  do  dealers  add?  
  • 9. SoXware  has  data  gathering  implica0ons   •  “Black  Box”  laws  in  US  
  • 10. How  does  this  change  automobile  marke0ng?  
  • 11. 360  Approach   Influencer   (Blogger)   Consumer   WWW  &   via  Social   Net  Adds   Media   Integrated   Digital   Campaign   Tradi0onal   Tradi0onal   Events   Celebrity   Tradi0onal   Print,  TV,   &  Radio  
  • 12. Is  this  what  engagement  look  like?   h:p://  
  • 13. h:p://    
  • 14. Or  is  it  this?  h:p://  
  • 15. Where  are  your  influencers?  
  • 16. More Internet Shopping = Less Control For OEMs and Dealers (US) Number of Brands and Dealers Buyers Visiting an Auto Site Shopped (≤ 6 months before purchase) # of Dealers Shopped 100% # of Brands Considered 5 79% 4.2 4 3.7 Percent Visiting 75% 63% 3 2.5 2.7 2.4 50% 39% 2 1.8 25% 1 s s rs IU IU e itt A -A 0% bm on Su Dealer OEM Third Sites Sites Party N Sites Sources: J.D. Power and Associates/Compete Inc. s, 2011 Website Performance ToolSM and J.D. Power and Associates 2011 Manufacturer Website Evaluation StudySM (MWES) © 2012 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved.17 J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
  • 17. Where  are  your  influencers?  •  Who  are  the   influencers?    •  Blogs?    •  Forums?  •  Pro/Am   See  h:p://  
  • 18. h:p://    
  • 19. h:p://­‐BMW_R1200GS_fully_ki:ed.jpg  h:p://­‐BMW_R1200GS_track.jpg  
  • 20. h:p://  h:p://    
  • 21. Where  do  your  customers  go  when   they  have  problems?  •  Dealer?  •  Friends?  •  Internet  /  Youtube?  •  Q&A?  
  • 22. What  is  their  mo0va0on?  •  Enable  them  to  actualize  themselves  with   your  brand    •  Social  goals   –  Admired   –  Adored   –  Respected    
  • 23. Consumer  à  Community  1.  Social  media  means  opening  up  the  company   brand  to  risk.    
  • 24. We  paved  the  prairies,  we  deforested  the  hills  We  strip-­‐mined  our  mountains,  and  sold  ourselves  for  oil  To  bring  you  this  beau0ful  machine,  so  you  can  finally  drive  to  see  whats  leX  out  of  wilderness,  and  now  that  were  here  We  cant  get  out  of  the  car.  America  2006  -­‐  the  ul0mate  padded  cell  
  • 25. Consumer  à  Community  1.  Social  media  means  opening  up  the  company   brand  to  risk.     –  Don’t  suppress  nega0ve  feedback;  learn  from  it  2.  Shared  ownership  with  consumer  
  • 26. Consumer  à  Community  1.  Social  media  means  opening  up  the  company   brand  to  risk.     –  Don’t  suppress  nega0ve  feedback;  learn  from  it  2.  Shared  ownership  with  consumer  3.  Openness  to  republishing/re-­‐using  content     –  Fan  page  for  Louis  Vui:on   –  Louis  Vui:on  “Art  of  Travel”  
  • 27. Facebook  
  • 28. What  can  you  do     with  a  F.B.  Page?  Heinz  Ketchup         Louis  Vui:on  
  • 29. Conclusion  
  • 30. Experience Excellence: An Organization View Goal Brand and Business Growth Must measure whatHardware must matters to customers insupport personnel through Customer Experience Excellence a way that matters tomeeting customer dealers—business casetime, knowledge, 4 Measurement of delightand overall Shopper, Buyer, Serviceexperience Tracking, Auditingrequirements Systems must support 3 3 3 3 personnel meeting customer time,People must be knowledge, value, …,able to consistently needsmeet the variety of People “Hardware” “Software” Productcustomer time, Hiring Facility Systems Qualityknowledge, and Training Tech Tools Processes APEAL Products must providevalue needs Compensating CI Culture Price personnel a strong point Retaining Attitude of differentiation—other than price—upon which to engage customersROI for pursuingexcellence must beclear to capture 2(and keep) dealers, Business Casefield, and other CSI-Related Margins, Incentives (Intrinsic, Extrinsic) Everything begins withpersonnel hearts quantitative definition ofand minds so they the customer interactionsadopt and maintain 1 Customer Understanding that create delightthe right attitudes Specific performance levels for shopping, financing, and servicing interactions © 2012 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
  • 31. IT  &  Marke0ng  •  Recognize  IT’s  increasing  impact  •  Understand  shiXs  in  a  360  approach   1.  Increased  risk   2.  Shared  ownership   3.  Unauthorized  re-­‐use  •  Learning  from  customer  engagement