Marketing in the Automotive Industry of Indonesia: Problems, Possibilities, and Limits

Abstract

The marketing dimension is as important as production and finance in the indus trialization process. It is a misapprehension to assume that marketing is a self adjusting mechanism that alters itself to changes in production. Marketing acts as a catalyst to a successful industrialization of automobiles if the exchange process is being developed actively. In Indonesia one has to analyse carefully the problems, possibil ities and limits of marketing within the prevailing marketing environment. Although the government attempts to create the necessary conditions to commence with a healthy industrialization programme, there are still a host of problems to be surmounted, such as the large number of brands, local content and the limited domestic market. Short-run advantages caused by the currency realignment open the opportunity for exports. But in the long-run the vehicles must be produced efficiently and export incentives should be introduced to maintain a competitive edge in the export markets. Rationalization of brands through holding companies and standardization of compo nents seems inevitable to achieve the economies of scale. Marketing faces serious constraints due to external and internal factors, demanding a high standard of professionalism for those involved. The integrated strategic marketing concept could be considered in gaining and maintaining a competitive advantage in the national and international markets.