News Analysis: Cars remain the star

However, in reality, the challenge has made them remarkably philosophical. Just as companies such as PepsiCo UK turned government pressure to stop making 'unhealthy' food into a positive marketing advantage, Richard Hudson marketing director for BMW UK and his fellow car marketers insist that finding creative solutions to growing restrictions on their ability to promote their products is all in a day's work.

'The marketplace and customer needs are constantly changing, and it is marketers' role to anticipate and respond to those changes,' says Hudson. 'The fact is that consumers are becoming more interested in a vehicle's fuel economy and levels of emissions, so we have to provide them with that information. But that doesn't compromise our ability to continue to position BMW as "the ultimate driving machine".'

Challenging times

Environmental factors, the rising cost of fuel, and consumers' growing concern with safe and responsible driving, not to mention the effect of an economic downturn on an already highly competitive market, have certainly made the car marketer's job more interesting and challenging than ever before.

'Our engineers in Munich are working to create more efficient and powerful, greener and safer cars, and, because the UK is such an important market, they and our bosses are very interested in what we have to say, based on our consumer insight,' says Hudson. 'We have a significant influence on product and service development, as well as pricing.'

Peter Duffy, who joined Audi from Barclays last July as head of marketing, refutes the suggestion that increasing regulation is compromising the sector's ability to attract and retain talent.

'All industries are subject to growing regulation,' he says. 'The talent, focus and delivery-orientation of this company have resulted in tremendous growth in the Audi brand over the past three or four years, and it is incredibly exciting to be part of that.'

The UK is Audi's second-biggest market, representing 10% of global sales. So Duffy, too, is heavily involved in product and service development, as well as ensuring excellent and consistent service delivery through the franchised dealer network - something that, traditionally, has proved the Achilles heel of many car companies.

Although the job of a car marketer is about more than pure marketing communications, the marketing communications task itself is also growing more interesting.

Duffy, for example, has led a significant digital push for Audi, which now has its own channel on Sky and a media player on the web. 'Nearly 100% of our customers research cars online before going into the showroom to buy,' he says. 'They are more informed and want different things from car centres compared with five years ago, including a more experiential understanding. That adds another dimension for marketers.'

Car marketers still enjoy some of the biggest advertising budgets, while the creative satisfaction of being able to build strong brand awareness takes some beating. 'The last brand campaign I was responsible for in the UK ('It's only a car', through WCRS) 18 months ago was adopted in 18 other countries,' says Hudson.

Sales focus

Yet, despite the scale of the challenge and opportunities, Simon Thompson, chief marketing officer of Lastminute.com and former marketing chief at Honda, believes that 'if you want to progress in a marketing career, the car industry is probably not the best place to be in the long term'.

He explains: 'The car industry is a sales- and product-driven market so the marketing function becomes a required "pass-through" role for sales people who wish to make it to the top of the organisation. I am not aware of a senior leader in the car industry who is from a marketing background.'

There is one, of course. Paul Philpott, managing director of Kia, was marketing director and then commercial director of Toyota. Thompson concedes that things may be changing, but adds that 'with five- to six-year product cycles, the category is slow to progress'.

If marketers are leaving the industry, it seems to be because their skills are in greater demand elsewhere, rather than out of any sense of frustration. The one recent high-profile defection was the departure from Honda of self-confessed 'golf nut' Jeff Dodds to Callaway Golf.

If anything, the challenge for the car industry is getting people to move on, rather than attracting or keeping them. Ian Armstrong, manager, customer communications at Honda, says that most car marketers are motivated by 'the sheer enjoyment of what we do'.

Increasing regulation coupled with rising fuel costs and an economic slowdown are creating an ever-more competitive market. However, a plethora of opportunities abound for marketers prepared for the intellectual challenges provided by tougher times ahead.

DATA FILE - AUTO INDUSTRY

2006

- Automotive manufacturing sector recorded turnover of £48.5bn.

- The total amount of fresh capital investment was £1.4bn.

- The total number of employees directly dependent on the UK automotive sector was 851,000.

- The value of exports was £24.5bn.

- The automotive sector accounted for 10.2% of total UK exports.

2007

- UK average new car CO2 emissions fell from 190 g/km in 1997 to 165 g/km.

Source: The Society for Motor Manufacturers and Traders.