Advertising Q&A
By Jim Boldebook
More reader questions from our e-mail bag and my answers!
"Presently I am only advertising on our local network CBS station. Should I put some of my ad dollars on cable television? If so, how much?"
It would be impossible for anyone to answer either of those questions without seeing some kind of research. Although cable television enjoys a fairly high penetration nationwide, cable viewership does vary market by market. You need to start with the basics. What physical area does your cable system cover? How many subscribers? Which channels have local insertion capability? Is there more than one cable system in your market area, and if so, do they have combined package rates?
I know this may sound silly, but ask your rep from the network station you are presently advertising with for an evaluation of the local cable system(s). They are keenly aware of the competition's strengths and weaknesses.
Ask your CBS rep this question: "If I were to advertise on cable, in addition to my buy on your station, what would be your recommendations for the most efficient buy?" Of course your network rep will probably advise you to spend much less with the cable system, but taking that bias into account, you may get some useful information. Ask your current rep what is the lowest rate they have heard spots sell for on the cable system. This will give you good ammunition for negotiation if you do decide to add the cable stations to your advertising buy.
"How important is price in my newspaper ad? Is it possible to drive traffic without using prices?"
My theory on the function of print media versus broadcast is, "print tells broadcast sells." That doesn't necessarily mean you need price and payments in print, but the focus of your print ad should be to the left side of the brain. Provide lots of facts and good solid reasons for choosing your dealership over the competition. You don't have to remove all pricing from your ads, but experiment with value oriented ads that offer unique reasons for shopping at your dealership.
In much of the research I've reviewed, many customers say they don't believe the prices that dealerships advertise are real, but it gives them a good ballpark number to negotiate from. If that's the case, then there has to be more to a print ad than price to attract customers specifically to your dealership. Stress convenience, hours open, location, toll-free phone numbers and Web site addresses. Simple maps are good information. Many effective dealer print ads sell the features of the models they sell. You may think that's the factory's job, but the factories often use up print space selling sub-vented rates, rebates and gimmicks! Remember, if customers living substantial distances from your dealership have purchased vehicles in their local area, they may use the price in your print ad solely as a negotiation tool with their local dealership. You might have a better shot at those customers if they don't know how good the deal can be until they actually shop you! One more thought on this issue. Take a look at Penske Toyota's ad in the Los Angeles Times this weekend. You won't find any prices in the print ad of the nation's top Toyota dealer. But you will find plenty of prices in the competition's ads. What does that tell you?
"In your opinion, what is the biggest advertising challenge facing dealers in the year 2000?"
Building positive brand recall for your dealership. The retail automobile customer is your customer, not the factory's customer. Ninety years ago, your great grandfather might have sold Franklins. Fifty years ago your grandfather might have sold Studebakers. Fifteen years ago your dad might have sold Yugos. Today you might sell Chevrolets, Fords and Hondas. What's important is whose name is on the top of the sign out front and the perception created by that name. That is your brand and it is your greatest asset. Advertise it. Promote it. Protect it.
"One of our employees brought back a copy of a TV ad for a delaer in Arizona who rides on a bull. Our salespeople think I should do something like this to make a name for us. What is your thought on this?"
NO BULL! The worst mistake you can make is to try and copy an idea like this. It won't work, you'll look silly, and you might get hurt in the process. For those same reasons I recommend against choosing one of the canned campaigns with catchy slogans plastered on showroom windows. Like "The Little Cheaper Dealer," etc. Build your brand perception around reality. Tie in your reputation, your location, your unique sales proposition. Choose a simple, memorable thought that identifies your company in a positive way. Often an outside professional marketing company can help you identify brand building opportunities.
"Is there any value in giving out T-shirts with our dealership's name on them?"
Premiums can be valuable promotional items if you do it right. First of all, you have to make sure the premium has value to both the recipient and your dealership. Will T-shirts get you a lot of outdoor exposure in Minnesota? Would it be better to offer windbreakers or sweatshirts? Make sure the design or message is something people will feel comfortable wearing in public. Also, find a clever way to merchandise your premiums with advertising and point-of-purchase displays. You may want to consider tying in with a local charity such as a marathon. You might also find a radio or television station willing to promote your premiums for logo space. Consider a nicer self-liquidating premium. For instance, you may be able to buy jackets for $15.00 that typically sell for twice that amount in retail stores. By offering them to your customers for $14.99, you give them a great value, a reason to wear your dealership logo and a promotional program that pays for itself.
"I manage a small import store that is part of a large chain of dealerships. Because our sales volume is low, we never get much of the advertising dollars our company spends, even though we get assessed some hefty fees by the corporate office. How do other large dealer groups work this?"
There are a lot of issues here. First of all, do all of the dealerships have the same name? If so, you might be getting more than you think in terms of advertisement value. For every advertising dollar spent on "Hometown Dodge" and "Hometown Ford" in your market, there is recall value for "Hometown Hyundai." If you don't have good signage at your location (which is the linkage element) you should try to convince your owners of those benefits. At your next general management meeting you may want to suggest that the group spend a disproportionately higher amount of ad dollars on your franchise for a period of three months, then evaluate the results. It may be enough to jump start sales and justify higher ad expenditures on a regular basis.
I answer all e-mail questions within 48 hours, and publish select questions from time to time in this column.
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
