::Barloworld ::Car sales
Car sales have fascinating dynamics. Drag that old motoring magazines out of the cupboard and have a look at car sales of thirty years ago. You would be amazed at the brands that did well back then. The motoring landscape looked different back then and the dynamics that shape it make for interesting reading.
If one takes into account the large management boards of motor companies, the product clinics and market research, it is hard to understand why all brands cannot be equally successful. Presumably, it all comes down to product in the end, but that is to oversimplify it.
A good product should sell well, but there are other factors to consider. Price is one. A Porsche might be a very good product, but it is many times as expensive as a Corolla and does not nearly sell as well, simply because it is so expensive. Therefore, “good” is not enough. It must be good at the price to sell well. Sufficient money must be spent in its development to ensure that it is “good”. However, spend to much money on developing it, and you push up its price again, so there goes value out the window. A balancing act has to be achieved between product excellence and price. Car sales must employ good value for money.
However, you might not regard the top sellers of the day as particularly good cars. Then, why are they selling so well? Ah, it comes down to the majority. No matter what you think, what does the majority of people think? If market research shows that the majority of people want a reliable, practical, conservative car that is not too expensive and can be bought, maintained and sold for reasonable amounts of money, it surely must sell?
And it does. We have just described our top dogs on car sales charts – the Number One sellers of the day. Whether you think they are good cars or not! Some achieve the balancing act and lose it again. Some never had it. Some call it black art. It certainly is fascinating.
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