Good quality automotive intelligence suppliers don’t seek to understand the market by looking only at the supply side. Focusing on supply puts the OES’ preferences first, and marketing decisions that follow from that might be made without the consumer front of mind.
Customer preferences often don’t align with what the OES thinks it knows about the market, and that can cause problems when the OES begins manufacturing products. Automotive intelligence should take a deep look at the local market to build an accurate picture of what the customer wants, in terms of standard fit and other optional features they have a choice over.
It’s consumer demand that drives the market
Most automotive market researchers focus their efforts on the supply side, believing accurate market intelligence can be gained by understanding what other OES and OEMs are selling. This misses the bigger picture, however, and mischaracterizes the actual nature of the market. The global market is driven by demand, which is in turn shaped by consumer behavior. It’s the preferences, feelings and needs of the consumer that help to shape and guide market decisions.
From the supply-focused framework, many OEMs have a tendency of trying to predict what consumers need based on what they understand about the market. Worse than that, they often try to sell customers products based on this erroneous understanding of the market. Oftentimes, the consumers have vastly different preferences than what OES predict, which can create a serious disconnect and ultimately cost the OES.
Global automotive intelligence should take the opposite approach. The right intelligence provider will paint a comprehensive picture of the market based on where the demand for automobiles is — rather than focusing on the supply. This can help you judge the market more accurately, helping you come up with a more effective management plan that better responds to customer preferences.
Beyond just understanding consumer behavior at the present moment, you can use global automotive intelligence to better forecast what the demand is going to be in the future. A new part might not be popular on the global market, but if it’s gained attention in a local market, then this could be a sign that adoption rates will pick up in other areas, too. This information helps you determine what your manufacturing needs are going to be, but it also helps you take steps to avert and manage potential risks.
It’s consumer demand that drives the market
Key to this entire process is understanding demand at the local level. Many OES start from the macro level and work their way down to the local. But global demand starts with local markets, so demand at this level needs to be understood first before any assessments are made about the global market. This type of bottom-up analysis helps you build a much more accurate and comprehensive picture of the global market, helping you to make better informed marketing decisions.
Focus on the local market
Key to this entire process is understanding demand at the local level. Many OES start from the macro level and work their way down to the local. But global demand starts with local markets, so demand at this level needs to be understood first before any assessments are made about the global market. This type of bottom-up analysis helps you build a much more accurate and comprehensive picture of the global market, helping you to make better informed marketing decisions.
Partner with JATO
When you partner with JATO, you gain access to the world’s most relevant global automotive database, giving you the tools you need to build a complete picture of your target market. Our research methodology takes a local approach that prioritizes consumer demand, giving you the data that makes most sense for your needs.
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