Autobytel system

At the time of the case, some of the costs and benefits that consumers of Autobytel system got to enjoy were delivery associated costs, free services, and availability f information. According to (Moon), the system allowed its consumers to be able to not only select the car dealership to buy the pre-used car from; but also delivery was free with every purchase. Furthermore, the services to utilize the website and find an ideal car were absolutely free for the consumer. This meant reduced expenses for them as compared to the physical car dealership programs.

Another benefit that consumers enjoyed was that of having the right kind of information. The Autobytel system listed all relevant information on the invoice such that the consumer was well informed before making a purchase. This means that they were aware of the condition of the car, the credibility of the dealer and most important, the price. The best price was what the system has to offer therefore reducing incidences where the consumer would be overcharged. Consequently, the information was also beneficial to the consumer in regards to their protection. The Autobytel system called for every dealer to be accredited thus protecting both them and the buyer. This means that consumers only dealt with authorized and trustworthy individuals.

There is also the benefit of offering diversity while shopping. On average, the consumer would spend a lot of money and time just moving from one car dealership to the other while comparing products. However, with the system, there are different choices for the customer to pick from while building the kind of care they are looking for. From the case, it is evident that consumers benefited by narrowing down to the exact choice of car they were looking for in a matter of minutes since everything was being done online. In a way, the system made it easier for car shoppers to enjoy the process and utilize as little resources as possible. In general, the associated costs and benefits to consumers of Autobytel systems were all related to providing the best value for money at all times.

Question 2

Autobytel’s value chain at the time of the case could be characterized with regards to its convenience, control and reward programs. According to (Doyle), one of the key aspects through which organizations create value is by generating elements of convenience for its target population. To begin with, Autobytel was a one-stop platform for both car sellers and buyers. This allowed for easier interaction between the two. Keeping in mind that its overall goal was to make shopping for a used car a bearable and pleasant experience, the organization has definitely achieved this. This is evident in the number of car dealers registered on its platform as well as that of car buyers utilizing its services.

In addition to the above, there is also the use of technology to create the perceived value. Internet services are important for the operations of the organization and through it; it has been able to diverse to bring in more value for its target population. Moon writes that Autobytel not only provided the service of buying and selling cars but has been able to branch out into services such as insurance, warranty and mechanical breakdown amongst others. What this means is that its target population can now find almost every car related service on their systems which is a value for them.

There is the characteristic of offering control to the user, more so car buyers. The service as provided for by Autobytel ensures that its target population is hands on the entire process. The organization achieved this cutting of the middlemen, in this case, car salesperson. The more control the consumer has, the more enjoyable the entire process is for them. Autobytel value chain allows for this by giving them choices, lowest prices, and knowledge in form of information to make the ultimate decision.

Lastly, its value chain can be characterized as rewarding to its target population. There are specific programs such as the “Mobalist Reward” for loyalty points that can be redeemed during the next purchase and the Aftermarket sales program for additional car related products. All this is aimed at expanding the service its customers can be able to get making it quite beneficial since the consumer gets all they need in one place.

Question 3

Since the case study, Autobytel core competencies have changed in respect to its expansion strategies. Moon explains that the organization is looking to implement new programs and products that would mean its competitive advantage is increased. For instance, there is the introduction of the Service.Autobytel.com program that is a Foray service under the S&P marketing. This can also be interpreted to show how the organization is emerging up with other businesses to diversify and build on its core capabilities.

It is also looking to expand the services its customer base is currently enjoying to make it more beneficial for them. There is now the garage and “Ask the Experts” services for consumers to utilize. It only goes to show that the business is no longer about the sale of cars but providing a more holistic approach to car maintenance and services. Its competition is already providing the same services it has to offer and that are why Autobytel has to be creative enough to incorporate others that were not originally in its plan. For this reason, its core competencies had to change to encompass the diverse needs that both car dealers and buyers have to satisfy.

In reference to its marketing mix decisions, there were made in respect to people, place and promotion strategies. It should be understood that Autobytel has two sets of consumers who are different. There are the car dealers and the consumers. Therefore, when it came to people, the decision had to be made in reference to how diverse the information needs to be. According to (Doyle), it is best to keep in mind the services and support that people are looking for when coming up with a marketing mix. This helped to establish the place to carry out its marketing and given the circumstances, online marketing proves best. This is due to the fact that it can outlay as much information as possible without overwhelming the target population. in regards to promotion, the decision had to be made in terms of how advertising should cater to the new position the organization was taking as well as the incorporation of other promotional strategies. In general, the marketing mix decisions that were made reflected upon redefining the new position Autobytel was taking as well as providing as much information it’s on the target population.

Works Cited

Doyle, Peter. Value-based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value. New Jersey: John Wiley & Sons, 2009. Print

Moon, Youngme. “Autobytel.com,” Harvard Business School, 2005.