Research on the Marketing Mode of Commercial Vehicles
Based on Resource Integration
Abstract: On the basis of analysis of the environment of commercial vehicle market and the change of marketing model of commercial vehicle and further exploration of the influential factors of the resource-integration-based (RIB) marketing mode and selection standards the paper proposes the resource-integration-based marketing mode of commercial vehicles and three sales modes. Then it analyzes the differences of the three sales modes in terms of network structure, connotation, strength and weakness. Further more, it proposes the suitable application conditions and specific implementation strategies.
Keywords: Resource integration, commercial vehicle, marketing mode, sales modes
Over the past seven years since China became a member of WTO, the commercial vehicle sales mode has transformed from the planned operation to dealer network operation. Through gradual improvement of the marketing network, the brand images of the commercial vehicle enterprises have been greatly enhanced and the sales have been promoted. Compared with the passenger car market, service and marketing in commercial vehicle industry is relatively weak, especially in the marketing network structures. Most enterprises operation still remains in pursuit of the "quantity of sales". And the relationship with dealers is pure trade or Competition. Most commercial vehicle enterprises hope to acquire control of marketing channels by controlling the dealers, but due to a lack of products’ market competitiveness, they still can not occupy the dominant position in the transactions, and as a result some commercial vehicle enterprises have been controlled by the dealers. The main reason is that most commercial vehicle businesses still keep the traditional marketing ideas in their mind but neglect the choice of marketing mode. Most commercial vehicle companies put control over the dealers in the most important position, but know little about the end markets.
Realizing the construction of marketing mode through the establishment of dealer network is a reflection that the commercial vehicle enterprises begin paying attention to integration of external resources, but most commercial vehicle businesses’ outdated operation concept causes that the two sides are often independent interests entity even have interest confrontation. Therefore, in the new competitive environment, researches on the marketing mode of commercial vehicles based on the integration of marketing resources are particularly import.
2 The Difference between Traditional Marketing Mode and the RIB Marketing Mode
The RIB marketing model and the traditional commercial vehicle sales model have both distinctions and the correlations. The traditional model realizes the promotion of sales by means of expansion of the distribution network through increasing and controlling the number of dealer; the commercial vehicle enterprises and dealers are independent interest entity. The RIB marketing mode put more emphasis on the utility of the enterprise’s external resources (especially integration and collaboration of distributors’ resources), and the unified and coordinated operation of internal and external resources, the Commercial vehicle companies and dealers are synergetic interest unification. The core, the objectives, the relationship with dealers, the marketing channels and the degree of control over the end markets under the two marketing modes are essentially different as shown in Tab1.
Under the guidance of RIB marketing mode of commercial vehicles，the marketing network of Commercial Vehicle enterprises is more clear, and the sales mode is more standardized. With Information getting more transparent, commercial vehicle enterprises can understand the end-market much better, and will not become "information isolated”, still it is conducive for product and market development.
Tab. 1 Comparison between Traditional Marketing Mode and RIB Marketing Mode
Traditional Marketing Mode RIB Marketing Mode
Essence Enterprise-centered Customer-oriented
Objectives Increase sales by increasing number of dealers Establish collaboration system between dealers and enterprises to realize mutual benefits.
with the Dealers Game Cooperation
Marketing Channel Disorder Orderly
Terminal Market Indistinct, Obstructed in Information Explicit， Transparency in Information
3 Analyses of Influential Factors of Selection of RIB Marketing Modes of Commercial Vehicles
Under the RIB mode, the choice of commercial vehicles’ marketing mode will be impacted not only by the enterprises’ own resources and capabilities, but also by the macroeconomic environment, the competition situation of industry, the features of competitors, and the features of product as well as the target market.
(1) The macro-economic environment
The impacts of macro-economic environment on China's commercial vehicle market are outstanding: When the national economy is at a high level, the market demand is strong, when the economy gets into a period of adjustment, the market is in the abyss and sales reduces. Each expansion of the state's implementation of macroeconomic policies can always bring about a total sales peak of commercial vehicles, while the restriction of economic policy will correspondingly bring about a reduction of sales of commercial vehicles. Namely, growth trend of commercial vehicle sales is basically the same as GDP growth rate.
Because of the multiple automotive types，the commercial vehicle market is complicated too. The distribution of the regional market is wide and the number is large, sales level in a single market is low, the distance between regional markets is too far, compared with the brand building franchise stores of passenger cars, the marketing features above are not suitable for commercial vehicle obviously. Thus it has a negative impact when building a commercial vehicle marketing model. Within all the policies and regulations of vehicles, safety and environment-friendly regulations play the most important role in the marketing of commercial vehicles. It directly determines whether a product can enter into the market and how long will it occupy the market. Also, it directly impacts the marketing, the form as well as the content of collaboration between the commercial vehicle enterprises and its distributors.
(2) Enterprise characteristics
The resources and ability of the enterprise not only decide directly the enterprise's survival and the development, simultaneously affect the formulation of the enterprise marketing system, the choice of the marketing mode and the support of the commercial vehicle enterprise to its dealers. The Production enterprises which have different strengths, show the difference in various aspects, such as in the scale of production, the market share, the capital strength, the marketing budget, the product mix, the product line's scale, product development ability, the enterprise reputation, the marketing strategy selection etc. Down to the choice of corresponding marketing mode, the objective point will also differ. The stronger the enterprise’s comprehensive strength, the easier it chooses the marketing mode. It’s easy to choose different mode for different product on the basis of the different product characteristics and the market competition condition.
Cooperating with the dealers which have the strong strength and the perfect marketing network can establish the automobile marketing network and the after-sale service system of big scale, complete function and broad coverage. It can also carry on the classified management of distributors according to the different marketing modes, give more support to the distributors, and occupy the initiative position in the cooperation.
(3) Competitor’s characteristics
Marketing is an interactive game-like process; it needs to select the appropriate marketing pattern according to the changes of competitors’ marketing model. Competitors' strength, focus and effectiveness of marketing strategy will have an impact on the choice of marketing mode. Every enterprise has its own resources and capacities, thus it targets to different main competitors. The number of competitors, the relative size of market shares, marketing strategies, financial condition and marketing budgets, product mix and product lines scale decide its position in the industry and the available marketing strategies. Commercial vehicle enterprises should establish a targeted marketing system based on their own resources and capacity situation considering characteristics of the main competitors. It should also change the proportion of different marketing modes in the enterprise and the way of cooperation with dealers according to the change of competitors’ strategies in order to meet the needs of market competition.
(4) Product characteristics
The different products have the difference in the aspects of output, quality, function, price, product storage-transport, technical service request and so on, so the choice of the marketing pattern must set up on the foundation of customer’s personalization and diversity. Because of the relatively high price of the commercial vehicles, the function particularity and the high technical service-request and other characteristics, the consumers will collect massive information through each method before making the purchase decision. It requests that the enterprises’ information channel should be transparent and unimpeded, realize the high-frequency propaganda to the terminal market, form the enterprise's brand, and enhance the consumer’s assigning purchase rate through the essential cooperation with the dealer, simultaneously strengthen the terminal interception measure, make sure that the flow of information of the enterprise transmit smoothly through the complementarily cooperation between the dealers and the enterprise resources.
(5) Target market characteristics
Different target markets determine the different marketing mode. The regions of product sales, the different level of distribution and purchasing habits of consumers, and competitive situation in the market and other factors have direct impact on the marketing mode’s establishment and development, especially transport infrastructure and urban planning construction constraints the development of commercial vehicle marketing. The auto industry's development is inseparable from urban planning; road construction and transport network, and the development of motor vehicles greatly promote the development of urban planning, the improvement of transportation networks and the acceleration of highways building. They are an organic whole.
4、Analyses of the Selection Standards of the RIB Marketing Modes of Commercial Vehicles
The effectiveness of marketing mode needs to be analyzed from two aspects—the horizontal and vertical directions and balance of relations between the competitors, the distribution channel and the consumer demand and itself, then the basic points of marketing can be determined. To analyze the development condition of commercial vehicle market in recent years, and decide whether the marketing mode of commercial vehicle has the market value, we can consider from several aspects:
(1) Compatibility. The choice of marketing pattern must conform to the enterprise’s values and the request of enterprise spirit. It is adv