Ford’s EV strategy teaches us that the 4Ps still matter.
The Big Idea: Ford’s rollout of electric vehicles is challenging the old dealer-led business model.
Why this matters: Buying a car has long been frustrating for customers.
As Ford offers more EVs, they are putting more direct pressure on how a Ford is sold.
Going forward, Ford dealers have new requirements to sell electric cars:
- Investments in charging stations.
- No Haggle Pricing.
- Allowing Ford to have a more direct relationship with buyers.
These steps highlight the importance of the 4 Ps:
- Product
- Price
- Place
- Promotion
Dealers have always had promotional requirements. The rest of the sales process: not as much.
Focusing on direct-to-consumer sales allows Ford to control the full sales cycle. The keyword: consistency:
Customers will see a more uniform promotion. Customers will have the same price no matter the location. Customers will be able to order their cars with a standardized design process online. Promotions will have a uniformity that hasn’t existed before.
Take homes: The 4 Ps are under pressure in some areas because of a lack of marketing training.
Ford’s moves show that controlling the 4 Ps still matters.
Ford aims to control the process for their customers like never before.
Think about applying that to your business.