autos Archives by Mark Murnahan

Fisker Automotive’s “Fisker Karma” vs. “Social Media Karma”

Fisker Automotive is a startup automobile manufacturer based in Irvine, California that holds some pretty valuable cards in the future of “green” car technology. Like any startup, how they play those cards will close the gap on their potential to become a Ford or a Flop. First, I want to tell you how amazing the product is, and then I will share some reasons you may or may not see this 100 MPG powerhouse in a driveway near you. I will also offer some solutions. This should be a lesson to any company.

Fisker has developed an extended range electric hybrid car that I would describe as being so sexy it makes me want to take my shirt off and rub the Karma all over my body. I do not apologize if that gives you an awkward visual, because their Fisker Karma holds many of the same elements which car lovers, like myself, look for in a proper mate. It has amazing curves, it is strong at over 400 horsepower and astonishing torque, plus it looks fast standing still. I suspect that it even smells like a new car, and we all know how sexy that is, right?

Fisker Karma: The Car You Never Let Your Daughter Borrow

The Karma shares signature design elements with distant cousins Aston Martin DB9 and BMW Z8 Roadster; cars which were also designed by CEO, Henrik Fisker. Fisker may be an unfamiliar name to you, but he has a pedigree in automotive design, and has made some bold statements since his liberating personal venture into Fisker Coachbuild.

An added attraction which bolsters Fisker Karma’s market potential is that it treads lightly on our planet. In common short distance day-to-day use, the Karma is a plug-in electric car. Any true car-lover knows that electric cars have full-tilt torque-on-demand to plant you firmly into the seat in an instant. The torque, which is what makes car enthusiasts’ heart race, is mind-blowing. Don’t fret if the batteries fade, because it will automatically kick into gasoline-augmented “Sport” mode with enough power to whack your skull back into the headrest far better than your average hot rod. Bonus points come to play while the Fisker Karma can do this and still achieve 100 miles per gallon, and 300 miles between energy stops.

Fisker is Easy to Hate

The automotive industry is an easy target which many people love to hate. We love the freedom our cars give us, while we hate things like breakdowns, smog, and car makers who get bailed out while other economy-drivers eat beans and try to keep their companies afloat. Anybody who ever met a stereotypical car salesman has likely forged a few dire opinions about the automotive industry.

Karma: “the concept of “action” or “deed”, understood as that which causes the entire cycle of cause and effect”
Source: Wikipedia

Some companies are easier to beat up than others. It is often not because they are doing something wrong, but because they are not projecting enough that is right. With too little positive representation, a negative portrayal is much easier for critics to propagate. In the case of Fisker Karma, the automotive rumor shylocks have come to collect their pound of flesh.

Fisker Automotive has received a significant share of negative public attention for a company able to produce over $300 million in private capital followed by a U.S. Department of Energy loan for an additional $528.7 million (REF: US DOE Announcement).

Matters such as production delays, pricing increases, and gouges aimed at corporate officers are readily available, and even prevalent in their online media mix. I am not sure I would call it overly punishing just yet, but I consider it enough that people with the high stakes of founders Henrik Fisker and Bernhard Koehler, are wise to carefully monitor and attempt to adjust the brand image. I would also consider it punishing enough to speculate that large investors in founding partner Quantum Technologies (NASDAQ “QTWW”) have cause for any spoken and unspoken concerns.

It is not uncommon for a startup automobile manufacturer to have critics, but it is disappointing that the company does not appear as a significant participant in their publicity, positive or negative, thus far.

Thinking Points for Fisker Automotive Executives

I would like to offer a short list of solutions for the company. I also want to point out that these can be modified and applied to most other companies, as well.

Monitor: Monitor the Fisker Automotive brand. Act upon the horrid speculation and testimonies of others, using consumer-centric answers, instead of continued passive acceptance.
Qualify: Qualify benefits of issues such as price increases and production delays. There are clearly defined reasons, and they are not all embarrassing ones. The embarrassing reasons are the speculative excuses which people make up about Fisker.
Create: Create a respectable blog, for the sake of all things logical and measurable. Have a hub for the Fisker Automotive brand’s voice.
Strategize: Use Fisker’s massive technology, financial, and human assets to forge a strategy. “Sell more cars” or “Increase industry alliances abroad” are not strategies. Those are goals and tactics, but competing with Tesla’s Master Plan will require strategy.
Participate: Notice and participate in positive publicity. I have read a lot of good news about Fisker, too. In fact, I recently submitted a story to Digg.com about Fisker’s agreement with China Grand Automotive Group and watched over 40 Digg votes stack up within just a couple hours. In each of the news stories and online conversations I have read, I never witness any company participation to answer questions, but I have often seen the comments turn sour. In several cases, there is a correlation between that lack of participation and the souring of opinions.
Delegate: Be diligent in reviewing my qualifications and my drive to assist the company. My résumé is only a click away, and likely a great investment for Fisker Automotive.

I hope to see Fisker do well, and I am pulling for them. In fact, there is only a small list of companies flying this low on my RADAR for which I initiate prompts to review my résumé. Fisker Automotive is a company that I find a strong desire to work with, because I see their enormous potential, as well as their missing pieces.

The first step is to find out if Fisker is listening, and if so, whether they recognize a need to address their current and upcoming challenges of public opinions and brand marketing.

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Auto Racing Legend Says “Prove It!”

One of the greatest marketing one-liners in my recent recollection is “Prove it!”, and it came directly from a legend in the automotive racing industry. I think it can apply to nearly any company, in any industry. As a race enthusiast and driver, myself, I found a special attachment to this phrase. In racing, winning is not subjective, and you either “prove it”, or you lose the race. I will share the story with you, and hope to encourage you to do more than just make claims, but to actually prove it!

If you are an automotive enthusiast, you probably know the name, Brock Yates. Just in case you don’t have octane in your coffee and motor oil running through your veins, I will give you a quick background on this iconic man.

From Wikipedia:

“Brock Yates is an American journalist and author. He was longtime executive editor of Car and Driver, an American automotive magazine.”
… “currently serves as a commentator on racing and vintage cars for the Speed Channel”
… “wrote Smokey and the Bandit II (1980). Yates also wrote the screenplay for The Cannonball Run (1981) film”

Best of all, there are two Brocks! Brock Yates Jr. continued his father’s profound love of performance automobiles and racing, and became the next generation of legendary Yates gearheads. “Brockr”, as many know him, is the next generation of Yates to pour gasoline on the 27 year old tradition of “Cannonball Run”, now commonly referred to as “Cannonball One Lap of America“. Cannonball is no longer the cross-country race from coast-to-coast across America as it was portrayed (with relative accuracy) in the Cannonball Run movie. Cannonball Run is a fact of the rebellious auto racing past, but the event continues to thrive in its modern, and law-abiding, iteration of today. It is now a National Auto Sport Association (NASA) sanctioned event, with a strong following of sports car racing enthusiasts.

The Cannonball One Lap of America over the past couple decades is an annual event taking race teams from one race track to the next, crossing the United States to compete and prove their racing skill and endurance with sixteen events in just eight days. Short-named “One Lap” is where automotive manufacturers, and companies of all kinds, send their best amateur and professional racers from all around the world to compete and to “Prove it!”

When Brock Yates Said “Prove It!”

I called “Brockr” a few nights ago to see how the Performance Racing Industry (PRI) trade show in Orlando went, and to further strategize my efforts to move deeper into the automotive industry, myself. We never seem to spend less than a couple hours on the phone, and I am not sure which of us is to blame, but we have great conversations, and I am delighted to call Brock a good friend.

Before Brock finally had to run and put his daughter to bed, he said “Oh, Mark, I have just one more quick story to tell …” He told that while he was at PRI, he approached several performance tuning companies with cars on display. He walked up to each of them and asked, “Is it fast?” Of course they answered “Yes! Very fast!” He then asked, “Is it durable?” Many automotive performance tuners will lie about this one, so Brock’s very appropriate answer to each of them was “Prove it” … and bring it to One Lap of America.

It is a message that I have given to companies at least a squillion times. If you have something better than the rest, and something that people should consider spending their hard-earned money to buy, you should prove it!

“Prove It” at Brock Yates’ Cannonball One Lap of America

I don’t hand out a lot of free “plugs”, but I can qualify this one. I have competed in Brock Yates’ Cannonball One Lap of America twice, in 2007 and 2008. Those were some of the most challenging days of my life, but days that I hope to repeat over and over again in future years, including the coming 3500 mile 2011 event.

The event comes early each May, and it is an amazing opportunity to see what you are made of. It also provides many excellent marketing opportunities, with multiple sponsorship levels to choose from. The marketing potential is especially strong if you take the initiative to publicize your participation well, and broadcast the whole eight days live on the Internet the way I did in 2008. Just imagine how many people would talk about that across social media, and all the new incoming links your website could have. There are a lot of imitators, but this is an event which really shows what a car enthusiast is made of, and it combines two of my favorite things … racing and marketing.

Here is an entertaining video of Motor Trend’s coverage of the event in 2010. It tells a great story of just how hard some people will work to prove what they can do.

John Heinricy Makes an Ideal One Lap Co-Driver!

As a side note to the story, and with a wink and a nudge, I offer a “brilliant” idea. I think that the uber-automotive-icon, John Heinricy, could make a mighty loud statement for Torvec, Inc. or the Hennessey Venom GT by pairing with me for a well-publicized live webcast of the event. Even better, he and Torvec’s CEO, Richard Kaplan, could appoint me as Torvec’s Marketing Director and implement high-torque strategies to demonstrate Torvec’s great potential.

Now back to the original thought. When you consider your business, I think you should always address this one very important question: How will you “prove it”?

Photo Courtesy of Steve Rossini’s Highland Design Studio

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Automotive Marketing Example: Selling Cars Online is More Than Cars and Dealers

Car dealers (the whole automotive marketing industry for that matter) are just an example I will use, but this is about a lot more than the automotive industry and car dealers. It applies to the automotive market, anecdotally, but this is mostly about overlooking the reasons people would want to buy from you, and being blind to what people are really looking for.

Without understanding people’s motivations and expectations, it is nearly impossible to deliver what they want. In the cases where you are able to reach the market and get the sale, it is usually only a small slice of the pie, and it is more blind luck than marketing talent. It is like driving a car with your eyes closed … you may not crash the first time, but it is just a matter of time.

Picture the car dealer for a moment. Maybe you know one who is doing things different and better than the rest, but it is pretty typical that they are looking for the immediate sale. They do a whole lot of advertising, but often lack a sustainable marketing strategy. Sure, if you throw out enough ads for the lowest priced cars, you will make a few sales (at the lowest possible profit), but sustainability suffers. The dealership marketing suffers in multiple ways, and here are just a few to consider:

The profit really stinks, because you are spending a lot of time and/or money to reach people based largely on their motivation to get the most for the least amount of money. Price is a motivator, but certainly the least profitable motivator.
Advertising without a people-focused sustainable marketing strategy diminishes the sustainability of referral business which comes with brand-loyalty.
Outbound marketing (marketing without ears) lacks the sustainability that comes with people having a reason and willingness to talk to you about your brand. It is important to realize that only a small number of brand-loyal customers and angry customers will tell you what they really think. When that limited information is what you use to make your marketing decisions, it is easy to make future mistakes.

I have criticized the automobile industry for their marketing shortsightedness, because it is a pretty easy target, and one that many of us can relate to. As an industry, they largely have a hard time looking beyond the next 30, 60, and 90 day cycles of their business. You can read more about my thoughts on that in my article titled “Topeka Kansas Car Dealer Social Media Marketing Case Study” which talked about car marketing and their self-centered approach.

Auto dealers’ urgency for more business stunts their vision, and diminishes their recognition of why people really buy cars. This is a challenge common to many industries. As I described in a recent article titled “7 Reasons That Your Marketing Sucks“, people buy cars for reasons such as freedom to roam, fun road trips, family safety, peace of mind, personal status, comfort, pride, dealership reputation, brand reputation, and other things. Buyers are not usually brand-loyal because of the screaming idiot in your commercials, and things like inflatable gorillas and guys in bad suits are tactics of the past. Today’s version of the loud mouth in the bad suit is to tweet and facebook your latest specials and hope it lands in the right place.

Automotive Marketing Goes Internet

These days, it seems that a lot of industries tend to mock the old-school marketing tactics of the pre-Internet automotive industry. Perhaps the flashy, screaming, “in-your-face” style of advertising was just all they knew, so they mocked it in hopes that it would work. It led to a significant amount of noise, but noise at a higher volume is still just noise.

While all of those “car dealer types” are out there making noise, it is a good time to move forward and market differently, using foresight, and giving people something compelling. The contrast between the good and the pathetic is stronger than ever, and for those who address the customer, the benefits are great. You know, the kind of marketing that addresses the things people want. The kind of marketing that doesn’t turn them off and allows them to feel comfortable enough to tell you why they are or are not buying from you. This is the kind of marketing that shows customers that you are listening.

On today’s “scan-and-click” busy Internet, you will have a lot less time to reach your market with your goods or services. Maybe you will blame “the Internet”, but let’s face it, if you are blaming the Internet; you are looking at this all wrong. The Internet affords companies amazing opportunities to reach their market and to create brand-awareness and loyalty, but it will require looking at things from a different perspective than it used to. It requires looking at things from the customer’s standpoint and discovering what it is that truly motivates them. This means you must listen to them.

Successful marketing today means that you have defined and delivered what the consumer wants. That means being able to look at yourself through their eyes and without your preconceptions and greed. You can have your greed back later, but you have to put it on the shelf at least long enough to make good marketing decisions.

Marketing Cars is Not Just About Cars and Car Dealers!

I use the automobile industry as a harsh example of short-sightedness and self-centered thinking, because many of us can relate to that. Now, regardless of your industry, just imagine what I said about some of the reasons people buy a car. Use it as an exercise and try to imagine how you would reach the people who may be in the market. Maybe their car keeps breaking down. Maybe they have a class reunion coming up and want to look good. Maybe they are not looking at all, but if they connect with somebody they like and that person happens to work in the industry, they may feel more loyal to a particular brand.

There are so many reasons for people to buy what you offer, but if you are trying to market to the wrong ones, at the wrong time, and with a message that is all about you and mostly addresses your interests, most of it will fall on deaf ears.

Perhaps instead of the same old price-boasting and deal-pimping, a look from the consumer’s standpoint is in order. How will you address them on their terms and based on their desires? How will you find what motivates them and makes your brand more interesting? If you want to sell more cars (or anything else) try thinking more like the buyer.

These are just a few of my thoughts. What are yours? I’m listening.

Photo Credit to Rmhermen via Wikipedia