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ROLE OF ‘TRAINING & DEVELOPMENT’ AS MARKETING TOOLS IN AUTOMOBAILE INDUSTRY: A STUDY OF INDAIN CAR

MARKET

SYNOPSIS

ROLE OF ‘TRAINING & DEVELOPMENT’ AS MARKETING TOOLS IN


AUTOMOBAILE INDUSTRY: A STUDY OF INDAIN CAR MARKET

Name of Sudent : Om Prakash Goel

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ROLE OF ‘TRAINING & DEVELOPMENT’ AS MARKETING TOOLS IN AUTOMOBAILE INDUSTRY: A STUDY OF INDAIN CAR
MARKET

Rationale behind the study

With the liberalization and globalization of Indian economy during last few years, Indian
customers in the middle income group who till sometime back had very limited options for
buying a personal transport vehicle, now find multiple choices. The middle and upper middle
class buyers, who traditionally were dependent on , and were forced to compromise on quality
and technology, available with handful of local manufacturers now have a completely different
outlook. With the entry of almost all reputed two-wheeler and car manufacturers of the world,
either through collaboration or with their wholly owned subsidiaries – having various models
from a small and sporty bike to the one with tremendous power and styling as well as from a
small car to a highly luxurious one, has made a major change when it comes to making a
favorable or unfavorable purchase decision. The importance of creating a ‘ satisfied
customers’ base’, there by taking advantage of positive word of mouth has emerged as a
serious need

The motive behind the proposed study to be conducted is, to closely understand the factor and
their relative importance, which influence customer satisfaction once product has been
purchased. Different societal strata of income, age, sex, education etc play a vital role in
deciding the expectation level of a customer from a particular product availed. Issue of
competitors offering sim ilar products at very competitive prices along with the ever increasing
customer’s education level apparently interacts in forming at favorable or unfavorable attitude
towards purchase of personal transport vehicle. Presentation, product, technology, price, brand
name, service network etc. combined in a multifaceted way fin ally shape market of a personal
transport vehicle. In view of the specific and absolute changes in the technology being used in
the modern automobiles- carburetors being replaced by Multi point fuel Injection or the
traditional engines being redesigned to make adaptable to work on Compressed Natural Gas or
Liquefied Petroleum Gas combined with the complete change in market scenario due to cut
throat competition and ever increasing customer’s expectations triggers the need of a study

Like this. International automobile manufacturers who are relatively newer entrants in the
Indian market with latest technology packed machines are on exception and hence the
strengths and weakness need to be brought out.

The above changes in the situation warrants a complete review of Training and Development
areas in the automobile industry, which traditionally, have been most ignored one. The
marketing function in the industry was limited to funding ways of helping respective ‘ sales
departments’ to push sales in the short term without caring much for the after–sales -effects and
customers opinion. The role of ‘Marketing Function’, which was traditionally limited to the ‘pre –
purchase process’, has gone for beyond. The shift in market outlook has made it necessary for
the manufacturers to consolidate their training and development functions, not only with in the
company but also at the respective dealerships, where the customer actually comes in contact
with company.

Assessing the need of training and development in view of customers expectations, from
product as well as related services, and the degree of their fulfillment by each supplier should
be pruning point of any research.

The development of dealers’ network with special focus on proper response and thereby
satisfying customers play a vital role on a competitive market like this where the difference
between the products of one company to the other is greatly narrowing down and role of
‘services’ pre and post purchase in taking a front seat. There is need to go into the details of

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ROLE OF ‘TRAINING & DEVELOPMENT’ AS MARKETING TOOLS IN AUTOMOBAILE INDUSTRY: A STUDY OF INDAIN CAR
MARKET

the preparedness level of various dealers vis a vis customers expectations to meet the current
and dynamic situation.

Further, the researcher having worked in the industry for about 15 year and closely deals with
the automobile market as well as technologies, as part of job in daily routine, through the
proposed study intend to assess empirically and combine it with the ‘ on the job’ experience.

Objectives of the study


The proposed research study is to be centered around fulfilling the following objectives:
1. To find out the expectation levels of a customer from the company and its
dealers w.r.t. services before and after buying a two-wheeler or a car.

2. To find out the preparedness level of two-wheeler and car companies and their
dealer network to respond to the increased customers’ expectations.

3. To find out the role of training in manpower development as a marketing aid.

4. To find out the exact need of training in terms of Knowledge, skills and attitude
and also the enhancement of training need due to change in technology, if any.

5. To find out the role of dealership development, systems and equipments, as a


marketing aid.

6. To identify the development areas in the customer interface systems with in


companies as well as dealerships for matching to the customers expectations.

Research Methodology

Sample size and design: It is proposed to have a sample size each of 150 customers
of two wheelers as well as cars who own Indian/international brand machines of all the
companies operating in the country.

Geographical area to be covered shall be Bangalore city which is considered to be the


one of the biggest market having operating very high no. of these vehicles. Due
consideration shall be given to include respondents from all categories of the customers
like people of various age groups and educational qualifications, working and non-
working males and females, professionals, students and business class. All the dealers
of all two-wheeler and car companies in Bangalore shall be included for the purpose of
the study . concerned departments and training centers of all two wheeler and car
manufacturing companies in the country shall be contacted, in person over telephone,
e-mail or through postal means, to get first hand data

A well structured questionnaire shall be designed and distributed to the target audience
for collection of primary data. Interviews shall be held with the company executives,
dealers and functional heads on various aspects of the research.

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ROLE OF ‘TRAINING & DEVELOPMENT’ AS MARKETING TOOLS IN AUTOMOBAILE INDUSTRY: A STUDY OF INDAIN CAR
MARKET

Though random sampling is interned, yet, convenience and judgment sam pling items
are not ruled out. Efforts shall be made to have as many close ended questions as
possible.

Period: the primary data is proposed to be collected through various means of


communications, ie. In person, by telephone, e-mail , and postal means between
01.04.02 to 01.010.02 the period and mode of collecting data shall be reviewed suitably
at the appropriate times so as to make it meaningful and closest possible to the
objectives set for the research study.

Expected Contribution from the study

The proposed study is expected to contribute on the following terms:

1. To know up to what extent, the training and dealer development effort


can help two-wheeler and car manufacturing company in meeting their
Marketing objectives.

2. To know the Training and Development needs in the marketing function


of Indian two-wheeler 7 car industries.

3. To know the capability of the industries to cope-up with the current and
increasing training and development needs by in-house facilities and
through external means.

4. To know the role of newer technology in influencing the training and


development needs in the two-wheeler & car industries.

5. To know the exact levels of persons in hierarchy who need to be trained


and at dealerships of both the industries.

6. To know exact contents of ‘ training nodules’ meant for each target group
of the trainees to get maximum advantage of the efforts.

7. An ideal ‘training Facility’ most suitable to the current needs of the


Automobile industry may be imasgined.

Bibliography

Kotler, Philip,1986. Marketing Management –Analysis Planning and Control. Prentice-


Hall of India: New Delhi.

Davar, R.S., 1969. Modern Marketing Management in the Indian Context, Progressive
Corporation Private limited: Bombay.

Erdener, Kaynak, 1982. Marketing in the third world, Praeger: New York.

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ROLE OF ‘TRAINING & DEVELOPMENT’ AS MARKETING TOOLS IN AUTOMOBAILE INDUSTRY: A STUDY OF INDAIN CAR
MARKET

Cowell. Donald,1985. Marketing of Services, Heinemann: London.

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