Auto Dealer Marketing
Dennis Galbraith
Agenda
1. What Is Marketing?
2. Setting Advertising Budgets
3. The Two Objectives of Dealer Advertising
4. Why Measurement...
1. What Is Marketing
Marketing
Product
Price
Promotions
Place
Interruption Interruption
Listen Match Demonstrate Close
Advertising Advertising Make
Sales Integration
Offline Sales
Online Sales Process
...
2. Setting Advertising
Budgets
Advertising Budget
Dependent
...
Branding
USP
Push
Traffic-Now
What kind of vehicle shoul...
Community
Not In-Market In-Market Shoppers
Traffic-Now
...
Objective Based Budgeting
1st Cut – Fit Objective
2nd Cut – Co...
4. Why Measurement Is
Difficult and What to Do
About It
“Half my advertising is wasted…”
- John Wanamaker
Overinvestment
Advertising Return
Underinvestment
Advertis...
Measuring Traffic-Now Advertising
unit of traffic
Cost per ____________________
Does the medium work?
Cost ...
Do we work it?
Cost / (best metric available for sales or sales process)
1. Cost per Sale = Cost / Sales
Fair to vendo...
Measuring Branding Advertising
Frequency
Reach
CPM = Cost Per Thousand
...
Product Buy for a high cost to market gap
Price Highest possible gross
Promotions May...
Low market days supply
Product
In demand with acceptable margin when priced below market
...
Best total, long-term profit
Low market days supply, beyond core inventory
...
_______________ ______________________________________________
___________________________...
8. Using the Preference-
Engagement Matrix to
Evaluate Advertising
Alternatives and Direct
Creative
9. Using the Information
Wheel to Justify or Reject
Advertising Alternatives
TV http://www.youtube.com/watch?v=2I_cFrkr1QE
Skimming strategy. (no branding, price for gross)
Franchise attracts older shoppers (Buick, Mercury, Cadillac, etc.)
No ch...
Service strategy. (branding related to extraordinary service, price for gross)
Highline Franchise
...
Contacts are:
Phone calls
How many contacts from the services ...
Break-even
Cost per Contact
Margin
...
Covered by
Cost per Contact
Co-op
Existing ...
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
NADA Marketing Class Presentation 3 25 10
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NADA Marketing Class Presentation 3 25 10

This presentation is being used for the NADA Academy. A related workbook is available to class participants,
Published on: Mar 3, 2016
Published in: Automotive      
Source: www.slideshare.net


Transcripts - NADA Marketing Class Presentation 3 25 10

  • 1. Auto Dealer Marketing Dennis Galbraith
  • 2. Agenda 1. What Is Marketing? 2. Setting Advertising Budgets 3. The Two Objectives of Dealer Advertising 4. Why Measurement is Difficult and What to Do About It 5. Marketing Strategy 6. Identify the Dependencies within the Elements of Your Marketing Mix 7. Is Your Marketing Mix in Sync? 8. Using the Preference-Engagement Matrix to Evaluate Advertising Alternatives and Direct Creative 9. Using the Information Wheel to Justify or Reject Advertising Alternatives 10. Is Your Advertising Mix in Sync? 11. Merchandising Online Inventory (a budget allocation perspective) 12. Coop Eligibility
  • 3. 1. What Is Marketing
  • 4. Marketing Product Price Promotions Place
  • 5. Interruption Interruption Listen Match Demonstrate Close Advertising Advertising Make
  • 6. Sales Integration Offline Sales Online Sales Process Process Interruption Listen Match Demonstrate Close Advertising Make
  • 7. 2. Setting Advertising Budgets
  • 8. Advertising Budget Dependent Sales Independent Advertising Sales The advertising budget should be determined by what it takes to make next month’s sales numbers in the most cost-effective way. Last month’s sales are irrelevant.
  • 9. Branding USP Push Traffic-Now What kind of vehicle should I buy? What brand should I buy? What model should I buy? Who has the right vehicle for me? Pull Who has the lowest price on the vehicle I want? Who has the best overall deal for me? Who can finance me? What vehicles does my preferred dealer have?
  • 10. Community Not In-Market In-Market Shoppers Traffic-Now 4% 96% Branding
  • 11. Objective Based Budgeting 1st Cut – Fit Objective 2nd Cut – Cost Effective 3rd Cut – Creative Fit 4th Cut – Most Cost Effective
  • 12. 4. Why Measurement Is Difficult and What to Do About It
  • 13. “Half my advertising is wasted…” - John Wanamaker
  • 14. Overinvestment Advertising Return Underinvestment Advertising Investment
  • 15. Measuring Traffic-Now Advertising unit of traffic Cost per ____________________ Does the medium work? Cost / lowest-funnel traffic metric the source can be held accountable for (quantity) Cost per VDP Cost / VDP Cost per Contact Cost / (Phone + Email + Chat + Walk-in) Walk-in Contacts 1. (Phone + Email + Chat)/2 2. Map Views + Ad Prints Both are conservative estimates
  • 16. Do we work it? Cost / (best metric available for sales or sales process) 1. Cost per Sale = Cost / Sales Fair to vendor? No Important consideration? Yes, if sourcing is good enough to do it. If you can’t close the traffic to the point that it is cost effective, a. Stop the advertising until you can fix your operations, or b. Lose money on the advertising in order to keep your best people while you weed out the problems 2. Cost per Appointment = (Cost – (value of walk-in traffic)) / Appointment a. value of walk-in traffic = amount of traffic * individual customer value (compare to kept appointments)
  • 17. Measuring Branding Advertising Frequency Reach CPM = Cost Per Thousand ECPM = Effective Cost Per Thousand
  • 18. Product Buy for a high cost to market gap Price Highest possible gross Promotions May not be competitive on listings if not buying right May use price leaders in newspaper display Branding message: service or some other non-price criteria No branding if skimming Store Operations Negotiations training Objections handling relative to price
  • 19. Low market days supply Product In demand with acceptable margin when priced below market Larger store may be able to carry some vehicles with low demand Price Fastest possible turn Promotions Traffic-Now advertising with great merchandising Branding message: price compared to a baseline Store Operations F&I Demonstration of value with documentation Use of internet to show market comparisons Internet on the window
  • 20. Best total, long-term profit Low market days supply, beyond core inventory Cost to market is favorable Product Not afraid to carry vehicles with low demand Carry used luxury vehicles if value is right Price Competitive for 50 miles+ Consider one-price policy Promotions Traffic-Now advertising with great merchandising Branding related to competitive price, or Branding related to pricing policy Store Operations Metro, large Demonstration of value with documentation Use of internet to show market comparisons within 100 miles + Internet on the window Rapid process for getting vehicles merchandised and online
  • 21. _______________ ______________________________________________ ___________________________________________ Product ______________________________________ ________________________________ Price ___________________________________ ___________________________________ Promotions _____________________________________ _______________________________________ _________________________________ Store Operations ____________________________________________ _________________________________________________ _______________________________________ ________________________________________________
  • 22. 8. Using the Preference- Engagement Matrix to Evaluate Advertising Alternatives and Direct Creative
  • 23. 9. Using the Information Wheel to Justify or Reject Advertising Alternatives
  • 24. TV http://www.youtube.com/watch?v=2I_cFrkr1QE
  • 25. Skimming strategy. (no branding, price for gross) Franchise attracts older shoppers (Buick, Mercury, Cadillac, etc.) No chat. No consistent email handling process. Online Classified Vehicle Merchandising Print Newspaper classified Leads Website Search and/or BT Direct Mail Television Radio Outdoor Online display (not in-market exclusive)
  • 26. Service strategy. (branding related to extraordinary service, price for gross) Highline Franchise Only if there is a dedication to Online Classified merchandising and rapid lead response Vehicle Merchandising Reflective of brand and image for customer service Print Leads Website Must reflect both the luxury status of the brand and service Image of the store. Search and/or BT Aimed at shoppers considering the brand. Direct Mail Focused on USP related to customer service Television Focused on USP related to customer service Radio Focused on USP related to customer service if 4 words or Outdoor less Online display (not in-market exclusive)
  • 27. Contacts are: Phone calls How many contacts from the services Emails requiring merchandising _________ Chats Cost of the service _________ Walk-ins Website Transfers Cost per contact _________ Can my operations handle more contacts? Yes__ No __ Cost of improved merchandising _____ Cost of improved merchandising/highest acceptable cost per additional contact _______ Result is the breakeven amount of additional contacts necessary to achieve the cost-per-contact benchmark. Is this a reasonable expectation?
  • 28. Break-even Cost per Contact Margin Average Existing Options New Opportunity
  • 29. Covered by Cost per Contact Co-op Existing Options New Opportunity