The Change of Product Marketing to Service Marketing on the Automobile Industry

For years automobile companies have been focused its Marketing efforts on product Marketing, and with reason a car is a product. However, this significant aspect has been changing in the recent times, not only because of the technological revolution in place but also because of Tesla the electric car company worldwide recognized nowadays. Tesla completely changed the way how car are sold.

If we look at the most of car companies we see that nothing changes in its communication, how many times do we cross with advertising with lines such as: “we are the best; we have the best engines; with our car you will experience the real driving pleasure; we have the best technology; bla, bla, bla, bla…” For decades this was the communication of car companies. With similar technology, without innovation and with very few things to add to the industry, this was the mirror of car companies in the world but specially in US where every year you have a new version of the same model with no significant changes.

As I said before with Tesla everything changed, Tesla brought a breath of fresh air to an industry with no ideas, because it changed the way we perceive cars, they’re no longer a product they’re a service with the aim to give the best experience to its customers, with innovation and life changing technology that really matters and focus on the customers needs, furthermore at the pace that technology evolve nowadays the product marketing is unsustainable at the long term. If we look to the middle class who has money to buy a car every year, or every two years? You know the answer, said that the service Marketing arise as the solution to this dilemma providing a better service and experience for the customer and a safe return on investment for car companies.

Nowadays we begin to see other companies following the path of Tesla trough Service Marketing, for instance Volvo recently launched its service named “care by Volvo” who will allow its customers to have access to subscription plans which will include a set of services such as fuel supply, car wash and the deliver of grocery shopping directly in the trunk of their cars through electronic key, furthermore the new customers of the recent Volvo XC40 will have access through a system called “Volvo on Call” who grant them access to a digital key that they can share with their family and friends. Another example is Porsche, who launch in the US the “Porsche Passport” a subscription service which will allow the access to a range of 22 new models.

Conclusion

For years traditional car companies have been alocated to its cars maintenance programs, with the decay on the sales of engine combustion cars these maintenance programs will become outdated, at the same time we will assist to the widespread of new types of mobility such as electric and hydrogen cars, because the mobile parts on these vehicles are few or none, the need for maintenance will be almost none, because of that I foresee the diffusion of new ways of service marketing throughout the car industry, services that will include car insurance, fuel, car washing, and other service packs for a monthly fee, allowing also to the customer to trade his car for a new version of his current model without any changes in his subscription value.