Electronics Marketing

Where Is The Electronics Industry

The electronics industry has been in decline over the past decade due to a few reasons:

  • Rising material costs
  • Labour rates
  • Offshore manufacture

As other countries (such as China, India and Mexico) have grown, their standards, quality and equipment have also grown. As business has declined here, the old equipment cannot afford to be upgraded or replaced, resulting in other countries having better quality and production facilities.

Many of the larger manufacturing companies (defense, automotive, rail, oil etc.) have moved manufacture overseas resulting in a steady decline year on year

Is There Anything Left

Despite a decline in business the nation still has pockets of work available, which can be tapped into.

The problem is that these pockets tend to be for smaller projects, smaller batch quantities of electronics subcontract work. This is fine for electronics companies that do short runs, but for most manufacturing companies it is the larger batch quantities that are needed (as they bring more profit).

For the larger companies (that deal with larger batch volumes) a very real problem exists – in that there is not the work available (and the few pieces of bit business that there are may well be already tied up with existing suppliers).

What Are The Choices

Electronic companies need to get aggressive with their marketing in order to pick up the remainder of electronics projects that exist.

Only be aggressively targeting prospects and pushing for meetings and quote opportunities can work be won. A case of he who shouts loudest is the one that is heard.

This can only be done by aggressive marketing:

  • Researching prospects
  • Contacting buyers
  • Booking meetings
  • Requesting quote opportunities
  • Being competitive on price

The sales process does need to come in and come in aggressively. Many electronics companies have been complacent with their marketing over the last decade – hoping that customers will come knocking and offer work to them. This is unfortunately what happens in a booming industry when companies can pick and choose the clients they take on; but in today’s economy beggars cannot be choosers.

Historically a bit part of electronics marketing has been exhibitions and events; whereby electronics companies would showcase themselves and hope that business comes their way. However as the market has changed (and reduced) and more targeted approach is needed.

Best Marketing Advice

The best marketing advice to any electronics firm seeking new business in this economy would be the following:

  • Research prospects – find out who you want to target based on their products
  • Contact the prospects – this involved calling them up to chat/arrange a meeting
  • Push for an opportunity to quote – try to get a piece of the work
  • Ensure your pricing is good and give them a reason to place an order with you

This approach may seem aggressive, but assuming that your competitors are doing this approach you need to also in order to pick up the few pieces of work that remain.

Is Your Electronic Marketing Plan on Target?

Developing a marketing plan is easy… developing a GOOD marketing plan is more challenging. The five most basic tools you will use for electronic marketing are:

  • establishing a website
  • publishing an ezine/newsletter
  • maintaining a blog
  • participating in social networking
  • writing articles
  • keeping in touch

But before you jump in and start making plans, or patting yourself on the back for having all those elements in place, you need to do a little evaluation. Look at your business and determine just where you are, and what you need your marketing efforts to accomplish for you. Start with these questions:

  • Do you need to generate new leads?
  • Do you need to build credibility – that know-like-trust factor?
  • Do you need to concentrate on getting current customers to come back?
  • Do you need to implement a follow-up strategy?
  • Are you ready to take your business to the next level?

The next thing you need to do is consider your target market. Who are they, where are they, and what do they need?

Start by informally sorting all your customers into two or three general categories. You might sort by age, by size of purchase, product, or geographic region – whatever demographic makes sense for your client base and your business.

Next, consider which group is the most profitable for you. And why… do they purchase more frequently, buy larger ticket items, or give more referrals? Identify who is making you most of your money, and then figure out how to reach more of them.

Specifically, try to figure out what problems are unique to that demographic group, problems that you have a solution for. Next, clearly define why you are the best choice among all the competition. And then, imagine what benefits would accrue to those who make use of your solution.

Now you are ready to decide which tools make the most sense for your electronic marketing plan. Which tools will be most effective in helping you accomplish your goal?

A website can either provide a wealth of searchable information for those who are looking, or it can be an online brochure or catalog that details your products and services. Make sure you choose a design and structure that are compatible with your objective.

An electronic newsletter can be a great way to keep your name in front of current and potential clients. Use it to help them see there is a solution to their problem. Or to give them new information. Or to promote special offerings. It is helpful to plan your newsletter out several months in advance.

Use a blog to generate buzz and get feedback. Choose to blog only after careful consideration – it needs to be a sustainable effort. Yes, the Search Engines love seeing new content, but make sure you are willing and able to commit to ongoing regular updates. One strategy is to choose a few basic topics and write several “posts” on each one. Then you will have some back-up to use when you get in a crunch and don’t have time to write fresh content.

Social networking opportunities abound. Choose wisely, make sure you have a strong profile posted, and be helpful to others. It is easy to sign up, but hard to keep up – don’t bite off more than you can chew. Most sites have interest groups you can join, which will increase your exposure and let your personality show through.

Article writing is an amazing strategy that allows you to share what you know with a huge audience. It puts your name out there, helps you develop expert status, and drives traffic to your website.

And finally, you have to follow up. Make sure you have a strategy in place to follow-up with your contacts and regular customers. Particularly in a challenging economy when so many companies are failing, make it a point to let everyone know you are alive and well. Following up helps develop relationships because it is personal and thoughtful.

Remember, your electronic marketing plan is an investment, not a hobby. You may invest more time than money in it, but you still need to make careful plans and follow through.

Forecast of Auto Electronics Market

The worldwide automotive electronics market is predicted to grow at 9% for a total of $173.7 billion by 2013. Sales for 2008 are estimated at $114.5 billion. Strong growth is estimated in driver assistance, car safety systems, and entertainment while the non-entertainment sector consumer retail, powertrain, and body electronics segments will see different growth rates. According to a new research on the non-entertainment automotive electronics market, the global market of non-entertainment automotive electronics is estimated to touch US$52.1 billion by 2010. The forecast of this growth is estimated to be equally distributed among all product segments and regions. The biggest demand is expected from the emerging markets in Asia and East and Central Europe.

  • The powertrain electronics will continue to dominate and it constitute 32% of the global market in last few years. It will sustain till 2010.
  • The body/chassis electronics will continue to rise at an average growth of 9.4% per year till 2010. During this period, the global market will increase from US$4.0 billion to US$6.3 billion. The manufacturers are looking to enhance the performance and reduce overall system cost, so the trend to fully integrated systems will continue throughout the forecast period.
  • The safety and convenience constitute almost 50% of the global non-entertainment auto electronics market at the current time. It was estimated to be at US$18.5 billion in 2005. Overall safety and convenience accounted for 50.3% of the global market in 2005 at US$18.5 billion. Multiplexing/electrical distribution, body controllers and navigation, all of them are fore casted to grow at a rapid rate till 2010. The navigation market, combined with audio and entertainment will be one of the fastest growing section of the auto electronics market. The driver supporting systems, like night vision, collision avoidance and lane departure warning is also expected to show strong growth.

Toyota Motor Corp. is the undisputed leader in hybrid car manufacturing market. Honda Motor Co. Ltd is at second spot, trying hard to grab some of Toyota’s share. General Motors Corp. dominates in the United States market and has the broadest portfolio in the hybrid market. However it lags far behind in the competition in terms of sales. With the continuous improvement in hybrid technologies and decreasing manufacturing costs, the powertrain segment should experience higher growth.
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The Status Of Consumer Electronics Market

The consumer electronics market has got out of the economic crisis, which has large growing potential, and this situation also brings the manufacturers of semiconductors new challenges and opportunities. The consumer electronics market continues to recover; the sales will reach 259 billion US dollars in this year. What is more, this market will keep the growth in the future years.

The products with high value and large quantity, such as the liquid crystal television and players, play an important role on the development of consumer electronics market. The multifunctional chips and other semiconductors are the key of these hot electronic products. Companies are trying to offer the semiconductor chips to the manufacturers of electronic products; therefore, the competition becomes fierce. If a design order is gained by the company, it will have more than one hundred million profits. The companies, which are engaged in the study of ASSP and specific integrated circuit, will gain more profits, because these components are hard to be made and replaced.

The cost to develop the specific chip is becoming higher and higher, which increases from ten million US dollars to twenty million US dollars. Only the big manufacturers are able to afford this development cost, therefore, the small factories will be stroked out. Whether to produce the chips with old techniques or withdraw from the market is a choice for the small companies. Therefore, the experts predict that the strong integration of this industry will happen within five years. Besides, the dispersed market also makes the competition fiercer.

In order to be success in the market of consumer electronic, the manufacturers must keep the cost to design and produce balance. For the chip with large quantity, the low cost of production offsets the high cost of design, but the small factories will miss the next generation of the products because of the high cost of design. The related integrated circuit is SOT263.