2001 Advertising Strategies
By Jim Boldebook
2001 can be your best year ever in the car business if you position your dealership with a marketing strategy reflecting the technology and lifestyles of the 21st century.
What's the message?
BUILD A STRONG DEALERSHIP BRAND IDENTITY to survive and prosper in the new world! Your name and what it stands for are the most important recall factors in all of your advertising. Make sure YOUR NAME is on top. Make sure potential customers understand the value difference of YOUR brand. Build a brand based on service and convenience. That's the only way to maximize keeping existing customers and attract new ones. Research shows loyalty increasingly shifting from products to people. And don't rest on past laurels! The same research indicates "how you treat a customer today" is far more important than your experience and reputation in the past. We live in a "what's in it for me right now" culture. In order to be a big winner in today's marketplace, you must constantly push the edge for new ways to exceed customer expectations and be able to link that value to your name through advertising.
Price is no longer the prime issue at the third tier, dealer level. In the future you will either competitively "street price" your products or you won't be in the game. Today's customer knows, or can find out "street pricing" within minutes. Not only pricingbut your cost, holdback, dealer incentives, wholesale trade allowance, etc.
Avoid gimmicks and slight of hand. They hurt your brand. Advertise your offer...and offer what you advertise. One-at-this-price is a turn-off to most people today and perceived as deceptive.
If you "one-price", make sure it's the street price that's adjusted as the competitive market, supply and demand dictate. If you're holding higher than market average grosses, make sure your offsetting value proposition is conveyed to your customer. Many customers will knowingly pay a higher price if they can justify the benefits in their own minds.
What's the media?
MEDIA SHOULD BE MORE AFFORDABLE IN 2001! First, a lot of the "dot com" hysteria has died down. Many markets are reporting more availability for the first quarter than in the past two years. Political ads won't be sucking up as much inventory in 2001 either! Question every rate increase. Negotiate yearly bulk contracts, but make sure there are clauses for ratings decrease and format changes.
In your negotiations, be sure to remind TV reps that you now get 125 channels on your television set. Ask your TV rep what effect he/she thinks new digital cable offerings will have on viewership choices. Be sure to remind your radio rep that your son and daughter listen to a station 1000 miles away over the Internet. In fact, satellite radio will be available in new vehicles in the next year!
Newspaper costs per thousand continue to increase due to higher costs and readership shrinkage. In many markets, newspapers are aggressively 'making deals' for the first time. Not just rate negotiations, but considerations such as additional space, no charge color and listings on the newspaper web site. Don't just lay down for the yearly rate increase! Start fresh! Insist that the newspaper make a full presentation of all it can offer you in consideration of your continued business.
Most direct mail and telemarketing promotional sales have gone stale. They simply are not as effective as they were in past years. Evaluate these programs carefully before committing your ad dollars.
If you don't have a web site nowmake sure you have one up and running before the new year comes to an end. Don't spend a fortune designing an expensive, gimmick-laden, slow loading web site. Focus your efforts on designing a user friendly site that will allow your customers to gain information on your dealership and the products and services you sell, create an effective communication channel, and facilitate an on-line purchasing process to the degree that you and your customers are comfortable with. The single most important factor affecting actual sales transactions, or sales aided by dealership web sites, is the length of time it takes for your dealership to acknowledge and respond to Internet inquiries. The faster you respond, the better your chances for making a sale. Think of the Internet as just another customer greeting channel, no different than your switchboard or showroom doors. Greet your Internet customers and respond to them as you would over the phone and at the door, and maximize your sale opportunities.
What's Most Important?
RESEARCH! Identify the habits of your 200 best customers, and you've identified the habits of your 2000 best potential customers. If you want to find the best media and message to reach sub-prime customers, analyze the habits and motivation of 200 sub-prime customers. The same is true with hi-line luxury, performance, compact, and SUV segments. In the year 2001 and beyond, you simply can't afford NOT to do substantial research on customer media habits. 500 channels on TV. 10,000 radio station choices. (check out www.live365.com.) Customers willing to drive 100 miles. Increasing use of the Internet. No dealership can continue to throw thousands of dollars against the barn hoping some of it will stick as in the past without dramatically increasing cost-per-vehicle advertising costs.
Don't let the clock tick into 2001 without a serious examination of your advertising and marketing strategies and expenses! If you take the time to make the right decisions, you'll increase traffic, sales and your bottom-line. I wish you a happy, healthy and prosperous New Year!
If you'd like a free copy of CBC's "Ten Commandments for Automobile Dealers" emailjboldebook@dealeronline.com.
Jim Boldebook is president of Creative Broadcast Concepts (CBC), an advertising/marketing agency working with some of America's most successful dealerships. jboldebook@dealeronline.com
