How To Prepare For The Improved Automotive Market

Written by Tom Letizia

Friday, 26 September 2008 14:49

Good business does not last forever, but neither does bad business. Throughout history, the economy has had its cycles—good and bad. The down business cycle experienced in North America this last year shows signs of improving. The recent government bailout of Fannie Mae, Freddie Mac, and others should help improve the crippled housing industry, which in turn should help automotive. If you are not positioned and ready for this new surge of business, however, you could miss the boat.
Smart dealers are preparing now, while the timid and scared find new ways to cut advertising. Don’t get me wrong, you must be a smart operator to survive in this difficult business world. If you think you can continue to back into a profit as opposed to reaching a profit with higher sales, however, you are mistaken.
Here are four steps you should take immediately to prepare yourself for the next automotive sales surge:
1. Determine who you are, what your image is, and why someone should purchase from you as opposed to your competition.
Dealers often think just because they are a Ford Dealer, Chevy Dealer, or Toyota Dealer, people will just automatically come to them. That may have been true 20 years ago, but not now.
2. Develop a media strategy.
What advertising medium is right for you? How much money are you willing to invest in advertising? Do you have enough money to be effective? The biggest mistake most advertisers make is trying to advertise in too many places and spreading themselves too thin.
3. Develop an advertising team.
Too often, advertising starts and stops with the dealer principal or the general sales manager decides on Monday he wants to run an ad for the weekend. You need to develop a team that is responsible for advertising. Stores with multiple lines and locations usually have a marketing director assigned to head up the advertising. Many dealers use advertising agencies to coordinate advertising, as well. A good advertising agency can write the commercials, design the print ads, and place all your media buys. Additionally, an ad agency can come up with monthly promotions and create consistent ideas that will keep your advertising fresh.
4. Become knowledgeable about your OEM’s advertising campaigns.
Tier one or tier two, you need to know what your manufacturer is promoting every month and where the money is being spent. If the OEM is having a big promotion, it makes sense to “piggyback” on that event, to create additional synergy. If they are promoting a particular product, it makes sense for you to feature that product in your advertising as well. Ask your dealer association to get you copies of the media plan and ask them for support materials.
Take these four steps now, because good times are just around the corner.
Tom Letizia is the president of Letizia Ad Team-Automotive marketing division, a full-service advertising agency specializing in automotive. He can be reached at 702-870-2362 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .