Electric Vehicles and Sustainability, Essay Example

Introduction

In today’s society, electric vehicles are becoming increasingly common as a means of transportation for many commuters. Many individuals have made the decision to purchase electric vehicles as a feasible alternative to traditional gasoline-dependent vehicles. In recent years, the President has made a significant effort to achieve the goal of one million electric vehicles to be purchased by 2015 (US Department of Energy, 2011). This ambitious yet realistic objective is a key driver in the continued push for electric vehicles in the United States to reduce oil and gasoline consumption. Therefore, it is necessary to consider the market for electric vehicles and the steps that are necessary to achieve an expanded market share for these vehicles. The continued evolution of electric vehicles also represents an opportunity for increased sustainability in a green-friendly environment. The following discussion will address these objectives in greater detail and will emphasize the importance of a successful marketing strategy and level of consumer demand in supporting the reduction of emissions and gasoline/oil consumption to achieve greener and more sustainable environmental conditions.

Body

Electric vehicles are more popular than ever as a means of transportation in many modern economies and these vehicles support a reduced dependence on oil and gasoline in the automobile industry. Today, approximately 3.7 percent of vehicles purchased in the United States are hybrid electric vehicles and demonstrate the increased demand for these types of vehicles for many consumers (US Department of Energy, 2011). In recent years, a number of electric vehicles have been introduced into the mainstream market, including the Chevrolet Volt and the Nissan Leaf, both of which offer electric power for specific periods before recharging is necessary (US Department of Energy, 2011). However, one of the problems with electric vehicle marketing and sales to date is the following: “With the exception of a small segment of the new car buyer population, automobile consumers tend to be risk-averse, preferring well-proven technology…EVs have unique attributes which may appeal to consumers. Exceptionally quiet operation, high torque (good acceleration), and low lifetime operating costs are examples of attributes that will attract consumers. Other features may also prove attractive to consumers, such as avoiding the gasoline refueling experience. In addition, car purchasing decisions are influenced by style and statements of personal identity; the powertrain configurations of EVs will provide styling options not available to conventionally powered vehicles” (US Department of Energy, 2011, p. 8).

Since the introduction of the first hybrid electric vehicles in 1999, the rate of sales growth of these vehicles has been steady, and pure electric vehicles also continue to gain prominence (Hirschey 1). Electric vehicles are widely tested prior to their introduction to the market to determine their efficiency and operational value so that consumers may purchase a vehicle that they are fully comfortable with and that will operate as smoothly as possible (Hirschey 1). However, there are a number of market risks associated with these vehicles due to the unfamiliarity of the product for many consumers (Hirschey 3). This is a challenging condition that continues to be addressed because those who do not know how electric vehicles operate may question their operational ability and the level of power that is available without a charge (Hirschey 3). Therefore, supply and demand must be considered in any type of marketing plan for electric vehicles because if they are overproduced and not sold, inventory will remain high (Hirschey 3). It is necessary to strike a balance between production and sales so that inventory is sold in a timely manner and does not remain housed for long periods of time (Hirschey 3).

From a marketing-based perspective, it is important to identify the level of demand of electric vehicles to ensure that the appropriate methods are considered to market this product to a larger audience. For many interested electric vehicle buyers, perhaps the most influential factor in making this decision is the incentive to buy, as noted in the following: “The importance of incentives to lower the total cost of ownership is a particularly important issue in the transition to this new technology platform and must be addressed in a comprehensive and collaborative manner at the federal, state or municipal levels. The market will likely produce several forms of incentives that will be available to meet consumers’ needs and motivate purchasing” (Hanley 13). This is an important consideration to make from a marketing point of view because until potential buyers become more aware of electric vehicles and their advantages, they are likely to rely on factors such as tax or other financial incentives to achieve sales targets (Hanley 13). Electric vehicle manufacturers must rely on different types of marketing data to determine how to best move forward with the appropriate marketing strategy to support optimal sales growth (Hanley 13).

Another issue to consider when developing a marketing strategy for electric vehicles is the availability of vehicle charging stations in areas that are convenient to owners (Hanley 15). These stations must be easily visible and demonstrate that although these vehicles do not run on regular gasoline that requires a fill up at an available gas station, charging stations must also be readily accessible for all charging purposes as the need permits (Hanley 15). The development of a successful approach to marketing electric vehicles from this perspective is critical in their long-term success and placement in the automobile market (Hanley 15). Furthermore, many consumers do not necessarily understand the concept behind the electric vehicle and are less likely to invest in this type of product when they are not well understood and proven to be successful and reliable over the long term (Hanley 15). Under these conditions, it is expected that there will be significant challenges for electric vehicle manufacturers in order to convince consumers that their vehicles are the appropriate type of purchase to meet their specific needs (Hanley 15). Manufacturers must develop a strategic approach that will convince consumers that their products are a good buy and a great value for the money that is spent (Hanley 15).

In the United States, electric vehicles remain a relatively new phenomenon that requires additional market testing and evaluation to achieve the desired level of sales growth (Rodriguez 4). For many consumers, putting the electric vehicle concept in the public eye more effectively is likely to increase its visibility and attractiveness to the consumer marketplace (Rodriguez 7). This is an important and meaningful tool in the development of new concepts and approaches to expand the reputation of these vehicles for a greater number of consumers (Rodriguez 7). Some marketing experts value the notion of idea expansion through smaller yet relevant campaigns which are likely to attract consumers from a variety of target markets, including those who value energy efficiency above other factors (Rodriguez 7). These efforts are likely to enhance the capabilities of many electric vehicle manufacturers and will demonstrate the likelihood that sales will improve over time (Rodriguez 7). Other factors to consider include price and charging capability because it is important for consumers to have easy access to charging stations and to have vehicles that are able to be charged for longer distances, such as 300 or 400 miles, which are ideal figures for many consumers (Rodriguez 8). These efforts also demonstrate that manufacturers should have the sensibilities of consumers and recognize their needs as related to the electric vehicle industry to better accommodate their needs and increase sales growth as desired (Rodriguez 8).

Finally, electric vehicles represent a new mode of transportation for many consumers who seek value, convenience, efficiency, and environmentally friendly alternatives (Sachs). This form of technology is particularly important because it serves as an improved means of facilitating transportation in the modern era (Sachs). At the same time, this alternative represents an opportunity to “reshape the energy grid, redefine driving patterns, and generally improve the quality of life in urban areas, where most of the world’s population will live and drive” (Sachs). Therefore, marketing strategies must be inventive and demonstrate that electric vehicles support a great degree of significance in promoting a sustainable platform for a safer and greener environment (Sachs). To be specific, “different vehicles will be able to tap into countless energy sources. Solar, wind, or nuclear power – all free of CO2 emissions – can feed the power grid that will recharge the batteries or produce the hydrogen to power the hydrogen fuel cell” (Sachs). These findings suggest that it is important for electric vehicle manufacturers to develop new strategies for growth that will attract a larger number of customers, while also recognizing the value of these vehicles for the consumer marketplace. With this approach in mind, it is evident that there will be additional factors to consider in purchasing an electric vehicle, but that this direction is currently difficult to grasp from the point of view of the average consumer. It is necessary to consider other factors that will contribute to marketing electric vehicles in a manner that is consistent with successful growth and change for the automobile industry for the foreseeable future. This perspective will also provide further evidence that electric vehicles deserve to remain readily available in an increasingly environmentally conscious and sustainable societal framework. These perspectives are relevant because they support the development of specific marketing-based approaches that will encourage growth in this industry so that market share will also increase. Consumers are likely to recognize the value of this type of vehicle for purchase and may consider it, in spite of its generally higher price in comparison to traditional vehicles of similar sizes. Once this product catches on with a larger consumer audience, the value of this type of vehicle will increase and will demonstrate that many consumers are very concerned about saving money, becoming more efficient, and protecting the environment as best as they can.

Conclusion

Electric vehicles are becoming increasingly popular modes of transportation, particularly for environmentally and budget-conscious individuals who want to save money on gasoline and also preserve the environment. Electric vehicle manufacturers must identify their core market and represent their product in the best manner possible by using specific indicators that will attract consumers and improve sales growth. This is best accomplished by using a marketing strategy that is conducive to meeting their needs as best as possible. Since this type of vehicle is unique and requires some getting used to, marketing must demonstrate that it is the right type of vehicle for a specific segment of the consumer market and should be promoted as such. This will enable the target market to better understand the product and its offerings so that consumers will gain interest and purchase these vehicles. Although these vehicles are the future of the automobile industry, it remains difficult for some consumers to let go of traditional automobiles; therefore, marketing must be intensive and directed towards their sustainability and degree of efficiency for new buyers.

Works Cited

Hanley, Michael S. “Gauging interest for plug-in hybrid and electric vehicles in select markets.” 19 March 2013.

http://www.ey.com/Publication/vwLUAssets/Gauging-interest-for-plug-in-hybrid-and-electric-vehicles/$FILE/Gauging-interest-for-plug-in-hybrid-and-electric-vehicles.pdf

Hirschey, Mark. “What’s your strategy for the electric vehicle market? 19 March 2013:

http://www.oliverwyman.com/media/OW_UTL_EN_2009_Electric_Vehicle_Market.pdf

Rodriguez, Jason S., 2010. “The electric vehicle study.” 19 March 2013: http://www.zpryme.com/SmartGridInsights/The_Electric_Vehicle_Study_Zpryme_Smart_Grid_Insights_Airbiquity_Sponsor_December_2010.pdf

Sachs, Jeffrey, 2009. “Electric cars are driving the transition to sustainable technologies.” 19 March 2013: http://www.guardian.co.uk/environment/cif-green/2009/sep/21/electric-cars-sustainable-technology

US Department of Energy, 2011. “One million electric vehicles by 2015.” 19 March 2013 http://www1.eere.energy.gov/vehiclesandfuels/pdfs/1_million_electric_vehicles_rpt.pdf