Marketing Strategies for Car Dealers A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to sell their automotive vehicles. It may also provide maintenance services for cars, and employ automotive technicians to stock and sell spare automobile parts and process warranty claims. Car dealerships are typically franchised to sell and service vehicles by specific companies. They are often located on properties offering enough room to have buildings housing a showroom, mechanical service, and body repair facilities, as well as to provide storage for used and new vehicles. Different Types of Car Dealer Auto Broker An Automatic broker helps you find the car you want.All you need to do is give him the specifications on what you are looking for and they will find the car for you. They do all the work while you can go about your daily life without wasting hours upon hours with salesman you don’t like or don’t want to deal with. They call in periodically and you don’t make the purchase until they ok with you. Wholesale dealer A wholesaler will sell you a car for a few hundred or a $1000 or so above value. This can be a great deal if you can find an honest wholesale dealer. The problem is that most wholesale dealers work for bigger dealerships exclusively. Large auto dealer A large auto dealer is one that usually has hundreds of cars on their car lot. They are usually a part of a dealer group that has several investors involved in putting up the money to ensure success. They are completely driven by sales and numbers and most of the time the experience is impersonal and pushy. Bad credit or buy here pay here dealers These types of dealers or dealerships are directed towards people with bad credit or no credit. If you have credit issues that won’t be solved any time soon the best thing to do is to go to one of these dealers. Special finance dealer Special finance is similar to a buy here pay here or bad credit dealer. The only difference is that they work with banks that specialize in working with people with bad credit or no credit. Instead of taking on your loan in house they sell your loan off to banks that accept bad credit customers. MARKETING STRATEGIES Target Consumers on Facebook 75% of the buyers say internet Research, Including social medias and review sites.It is the most useful medium when selecting a car dealership. More than 84% of the consumers use Facebook. Place ads to reach people. You can narrow down these selects to geographic areas near your dealership, by vehicle type, gender, consumer interests, and more. Use Twitter to Drive Sales Twitter continues to be a popular choice among auto consumers. Using keyword targeting, these signals can be picked up and direct messages and advertising can be sent to those consumers who have displayed purchase intent. Using keyword targeting, these signals can be picked up and direct messages and advertising can be sent to those consumers who have displayed purchase intent. Market on Instagram Instagram, primarily used on mobile devices, is all about taking, sharing, and uploading pictures and videos. Instagram provides a great platform to creatively share your brand’s story. For example, share pictures that allow consumers to imagine themselves in the moment – a picture of one of your vehicles at the beach, tailgating at a sporting event, camping, near a lake, or any creative way you can imagine to showcase the lifestyle your vehicle represents. Video Marketing with YouTube Car consumers are seeking information on model comparisons, safety features, connected devices, walkarounds, and other content to help them make a decision. While videos should be embedded into your website, they should be hosted on a channel such as YouTube for more organic visibility. Offer Social-Specific Contests and Promotions Social media does not mean advertising blindly. Everyone loves a deal and discounts so promote away. Be creative and reward your social followers with promotions and contests only available on your Facebook page or other social accounts. Social Reviews Matter Encourage your customers to share reviews on social sites. Car shoppers are 90% more likely to visit your website and more likely to visit your dealership if you have positive reviews. Be 100% Committed Social media marketing clearly offers huge benefits to the automotive industry – more brand visibility, more leads, and ultimately, more sales. But you must be 100% committed to maintaining a social media strategy. Once you start building up a fan base of social followers, you must continually engage and interact. If you go several days without posting or responding to comments, you will quickly lose your social credibility. Ensure websites are mobile compatible and fully featured Sites that don’t promote interaction are no longer effective. Instead, manufacturers and dealers are promoting fully featured websites that work across a range of devices. Volkswagen is one example – each of their local dealership sites offers the ability to scan current inventory, see the latest promotions, and even build a custom version of any of their models for purchase. When pointing potential customers to the web, it’s important that your site be a value added experience. Introduce email marketing – include auto responders Most dealerships are already using some form of direct mail advertising. When prospects visit your site or dealership, encourage them to give you their email address. Some dealerships offer customized content or the promise of a free oil change in exchange for this valuable information. A good email marketing program will allow you to build a relationship with prospects. Consider developing an auto responder series that helps educate potential customers on what to look for in a car or how to get better financing terms. Depending on what model they’ve expressed an interest in, it’s possible to send a customized email series focusing on advantages of the car, ownership tips, deals and more. A good email marketing campaign builds trust and heats up a cool lead.
Benefits of direct marketing Direct marketing gives you the opportunity to promote your products and services directly to the customers who most need them. A good direct marketing campaign will: help you build relationships with new customers test the appeal of your product or service tell you which marketing approaches reach your target market provide customers with compelling content they can share with potential customers increase sales. POINTS TO PONDER Target your ideal customers Using direct marketing allows you to target specific groups of customers. Marketing Efforts can be put into services which have the highest chance of achieving results. A well-targeted direct marketing campaign will also provide you with an accurate understanding of how your customers are responding to your product and service offers. Market on a budget Direct marketing that is targeted to a specific audience can help you set realistic sales goals and improve sales results on a tight marketing budget. Increase sales to current and lapsed customers Most customers welcome contact from familiar business people who make an effort to understand their needs and build a personal relationship. You can increase sales to your existing customers by maintaining reliable customer records and choosing simple, well-planned promotional tactics. You can also use direct marketing tactics to re-establish relationships with customers who haven’t returned to your business in a while. Approaching lapsed customers is an opportunity to rekindle sales, keep your customer records accurate, and find out why your customers move on. Improve customer loyalty Direct marketing helps you build direct relationships with your customers. You can personalise promotions, letters and offers to create an immediate link with your customer and increase their personal connection to your business. Many businesses combine direct marketing and customer loyalty strategies to keep and build customer relationships (e.g. by sending birthday cards, discount offers, invites to upcoming sales) Create new business Direct marketing lets you adapt and respond to the needs of your market, and your business. You can achieve fast and flexible sales results using direct marketing. For example, you could use a direct marketing campaign to: boost sales of a particular product run out discontinued stock renew stale sales figures increase customer contacts directly follow-up on a promotion. Test and measure your products and sales performance Direct approaches provide direct feedback. Direct marketing is also a great way to gauge your customers’ appetite for your products and trial new products or services. Direct marketing also allows you to test new markets, review sales results, measure the effectiveness of your sales and advertising tactics, and easily make adjustments CONCLUSION An effective marketing campaign will provide customers with collateral about your business that they can easily share with their friends, colleagues and family. This can generate new leads for your business. One of the main disadvantages of direct marketing is the demand from consumers to end unsolicited contact from companies. Consumers do not appreciate privacy intrusion or the sheer mass of communication, referred to as spam or junk mail, received on a daily basis. Other disadvantages include generating poor quality leads and failing to bring a high number of repeat customers.