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Industry Forecasting Automobile Sales In The United Essay

Industry Forecasting Forecasting Automobile Sales

In the United States (U.S.) an automobile seems to be a household necessity for most families in most parts of the country. In some urban areas of the country an automobile is considered a luxury, because of public transportation.. Although automobile is a necessity for families in most parts of the country, forecasting sales is a difficult task. Forecasting automobile sales in the current economy is extremely difficult mainly because of the uncertainty of the job market and the rising price for gas.

Marketing

When marketing a product, the four most important factors in successful marketing are price, product, promotion and position. The trends in the market will influence each of these four marketing strategies. Trends in the market will change the price of the product, directly correlating to sales. Demands in the market will change the product; suppliers alter their products to meet the demands of the consumers. The promotion strategy of the organization must change, to accommodate market trends and customer needs. "The promotion of the products and services must meet the right target population and be able to attract the right audience" (Constantinides, 2006). Positioning of the product is a key component of marketing. " Establishing the right selling techniques and distinct marketing sales functions is essential for the business" (Marketing, 2007).

Negative Influences

power automotive," 2011). There is a high demand for energy efficient automobiles, because of the public awareness of the environmental issues associated with CO2, and cost associated with fuel. Currently there is uncertainty in the market, which creates conservative spending in consumers. Consumers are less likely to purchase a new vehicle when there is financial pressure or an economic crisis. Consumers are holding on to their money, when there is uncertainty in the economy. Some economist argue that even if the economy makes a recovery in 2011-2012, most consumers do not have the funds available to make luxury purchases or optional purchases (Reich, 2010). Consumers are left with damaged credit and high debt due to the 2008-2010 economic crises. The recent recession in the economy has left the American people with distrust in the government, the economy and their vision for the future. People are afraid of financial negative outcomes and have learned the importance of savings; therefore more people are conservative with their spending choices. These are all important factors that will influence the purchases of vehicles.
Positive Influences

There are government incentives in the U.S. that were designed to entice buyers to purchase new vehicles,…

Sources used in this document:
References

Congressional Budget Office, Congress of the United States. (2008). Effects of gasoline prices on driving behavior and vehicle markets Washington, DC: CBO. Retrieved from http://www.cbo.gov/ftpdocs/88xx/doc8893/01-14-GasolinePrices.pdf

Constantinides, E. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing. Journal of Marketing Management. 22 (3/4) 407-438.

J.D. power automotive forecasting. (2011). Retrieved from http://www.jdpowerforecasting.com/downloads/GDS%202009.pdf

Marketing (2007). Marketing. Encyclopedia of Small Business. 2 723-727.
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