Effective Automotive Marketing
-
Upload
devon-macdonald -
Category
Automotive
-
view
746 -
download
0
description
Transcript of Effective Automotive Marketing
![Page 1: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/1.jpg)
Effective Automotive Marketing
Devon MacDonald
February, 2012
![Page 2: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/2.jpg)
Introduction
• The Automotive Industry – Some basics
• The Savvy Consumer
• Some Examples (good and bad)
• What should be done
![Page 3: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/3.jpg)
Some Basics
![Page 4: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/4.jpg)
OEM and Dealers
• Original Equipment Manufacturers (OEM) do just that, they make the vehicles
• Dealers are licensed agents of the manufacturers that allow them to sell the vehicles at agreed to costs
![Page 5: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/5.jpg)
OEM and Dealers
• Sales Targets are set by the OEM for the Dealer
• Dealers report to regional sales groups while managing their own sales staff
• Dealers receive an agreed to volume of advertising, promotional and administrative support
![Page 6: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/6.jpg)
Generating Revenue
• Dealerships are owned and operated by the dealer principle (the owner)– They are responsible for all costs associated to running the
dealership
• Dealers make little money from selling the actual cars
• Their main source of revenue is from servicing vehicles
![Page 7: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/7.jpg)
Similar Business Models to Automotive
Generating Revenue from Service, not Sales
![Page 8: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/8.jpg)
Movie Theatre
• Revenue from ticket sales goes back to the studios– A small percentage stays with the theatre
• Less in the first couple of weeks, more in the latter
• The theatre makes its revenue from– Concessions– Trailers– Cinema Advertising
![Page 9: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/9.jpg)
Concert Stadium
• Majority of revenue goes to performer and promoter
• The stadium makes its revenue from– Concessions– Parking– In stadium advertising
![Page 10: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/10.jpg)
Electronics Retailer
• Very low margins on electronics• Highly commoditized with active price
comparisons by consumers
• The chain, or store, makes it revenue from– High margin accessories– After market warranties
![Page 11: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/11.jpg)
Apple
• First generation iPhone / iPad were not focused on profit, they were focused on penetration
• The devices are sold at market prices, with more functionality
• Revenue is generated from– Apps– iTunes– Content, content, content
![Page 12: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/12.jpg)
Consumer Behaviour
How do people decide what car to buy?
![Page 13: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/13.jpg)
The Marketing Challenge
• Consumers today use digital to research most purchases, particularly vehicles
• With a long time between purchases it is very difficult to maintain a relationship with the consumer that will influence their future buying decision
![Page 14: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/14.jpg)
Making a Decision
• A typical buyer will take 3 months to purchase a vehicle
– Online Research– Advice from friends– Visiting a dealer
![Page 15: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/15.jpg)
So why then is the majority of ad $ focused
on TV?
![Page 16: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/16.jpg)
Who owns the Customer?
• Manufactures and Dealers are often at odds over a number of issues– Sales Targets vs Sales Support– Model availability– Innovative Features
• Maintaining a relationship with the customer is in the interest of both– But no one does it really well
![Page 17: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/17.jpg)
Some Examples of Consumer Marketing
![Page 18: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/18.jpg)
?
Sent to a Volvo Owner, where is the
personalization?
![Page 19: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/19.jpg)
?
Sent to a VW Owner the week after they bought a
car – very bad
![Page 20: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/20.jpg)
?
Sent to an Auto Show attendee – some good personalization,
but horrible format for a premium brand
![Page 21: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/21.jpg)
Sent to an Auto Show attendee, love the unique
PIN
![Page 22: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/22.jpg)
Sent to an Auto Show attendee, love the unique PIN and personalization
![Page 23: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/23.jpg)
Sent to an Auto Show attendee, love the
personalization
![Page 24: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/24.jpg)
?
The link from the email however goes to a horribly managed Facebook page – I
almost thought it was hacked
![Page 25: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/25.jpg)
Sent to an Auto Show attendee, love the
personalization
![Page 26: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/26.jpg)
?
But the hyperlink doesn’t remember my vehicle of
choice
![Page 27: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/27.jpg)
Owner Portals
• Most manufacturers have developed owner portals to try to maintain connection with owners– Ideally owners are signed up at vehicle
delivery, but with a lot of papers to fill out already sales staff have been reluctant to add more
– Signing up after the fact can be arduous
![Page 28: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/28.jpg)
![Page 29: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/29.jpg)
![Page 30: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/30.jpg)
![Page 31: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/31.jpg)
![Page 32: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/32.jpg)
What should OEMs and Dealers do?
![Page 33: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/33.jpg)
Establish ownership
• Assign ownership of a customer based on proximity to a dealer– But let the customer ultimately decide what
dealer they want to work from• One may be for purchase and one for service
• Understand complimentary consumer behaviour from postal code / zip code
![Page 34: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/34.jpg)
Align Forces
• Coordinate activities between Head Office and Dealer– Messages should be consistent– No overlap– Don’t compete with themselves
• Integrate Service messaging with other communications
![Page 35: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/35.jpg)
Customize and Personalize
• More than name– Communication preference– Vehicle preference– Service history– Vehicle history
• Learn what you can, and incorporate into modeling and messaging
![Page 36: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/36.jpg)
Lead Time before Next Car
1. Don’t bombard the customer
2. Ask when they want to get involved
3. Engage them at the right time (see 1 & 2)
4. Qualify the lead for the Dealer to engage effectively
![Page 37: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/37.jpg)
Create Advocates
• Develop word of mouth amongst your drivers and service customers by providing quality sales and service experiences
• Engage them in their ownership experience– Submit photos– Submit videos– Share purchases– Tell Stories about their vehicle
![Page 38: Effective Automotive Marketing](https://reader035.fdocuments.net/reader035/viewer/2022070304/54bb666e4a79596b298b45db/html5/thumbnails/38.jpg)
Thank You
Devon MacDonald
@devonmacdonald
Linkedin.com/devonmacdonald