Tuesday, September 13, 2011

Marketing Mistakes That Cost Car Dealer's A Fortune

MISCONCEPTION #1: Common marketing methods don’t work in today’s competitive environment. Wrong! Common methods -- such as advertising, publicity, free give-aways and newsletters -- can be highly effective when used correctly. If they don’t work for you, assuming you reach your target audience, the problem is that you’re sending an incomplete marketing message. The method is only as good as the message it delivers. If your message lacks any needed components, you’ll lose prospective customers to other dealers who deliver a more complete message.

MISCONCEPTION #2: Your marketing’s most important function is to promote your services. False! The most important function of your marketing is to establish that you can be trusted. Most of us don’t do business with people we don’t trust. While your prospect is considering whether to choose your dealership, they are also trying to determine whether he trusts you and your services.

MISCONCEPTION #3: All you need to do is get the word out. No! You must both get the word out and must get a response back. This is the meaning of “response marketing.”  As our media society grew in the 1950s and 60s, marketers had no need to measure direct results, so they used institutional advertising. But today, your marketing efforts must be built on proven principles of response marketing. Because if you don’t receive a response, you can’t be sure your prospect even received / heard or read your message.

MISCONCEPTION #4: A public relations program that generates feature articles and broadcast interviews will attract new clients to your dealership. Maybe not. In most cases, P.R. programs bring exposure, but exposure does not always bring new customers.  A good publicity program can be an important part of your marketing program. But whether your publicity program generates only exposure or solid marketing results depends on the experience and know-how of the person conducting your program.

MISCONCEPTION #5: The toughest challenge you face is to persuade your prospects. No! Your toughest challenge is to find prospects. Your marketing program should attract qualified inquiries so you start to build a trusting relationship with genuine prospects. You could have 100 new leads tomorrow if prospects knew how you could help them and where to find you. But, in most cases, prospects don’t know you exist. So you must assume the burden of getting your message into your prospects’ hands. That process begins with finding those prospects.

MISCONCEPTION #6: Word-of-mouth referrals will bring you a ton of new prospects. Usually not. Every dealer wants good, qualified referrals. But when you rely on referrals as your only source of new clients, you allow third parties (referral sources) to control your flow of new clients. In addition to attracting referrals, you should have an ongoing marketing program that generates inquiries directly from prospects.

MISCONCEPTION #7: The most effective time to start delivering your marketing message is when your prospect is in your office. Wrong! The most effective time to deliver your marketing message is when your prospect first thinks about his problem and wants to know what solutions are available.  You have a significant advantage over other dealerships when you have a packet of materials you can mail to your prospect. You can offer your information packet any number of ways, such as through advertising, publicity, newsletters or direct mail. When your prospect thinks about his problem, he sees that you offer material on the subject. He calls your dealership and requests your information. Then you send your materials by mail or e-mail. In many cases, this puts your marketing message into his hands before they call other dealers.

MISCONCEPTION #8: You should email your newsletter to clients and prospects quarterly. Not even close! In today’s over-advertised society, you’re fortunate indeed if you can create an impression in your prospect’s mind. If you hope to make your impression stick, you should send your newsletter at least monthly via email. The more often you mail to prospects on your mailing list, the more new business you will likely attract. The frequency with which you deliver your newsletter is much more important than its size.

MISCONCEPTION #9: Prospects will go out of their way to do business with you. Hardly! You must go out of your way to attract their business. Dealers often think a small obstacle, such as paying for a long-distance phone call, will attract calls from more qualified prospects. And this is true when your prospect comes to you by referral. But if your prospect does not have a personal recommendation -- and has not yet received your marketing message -- he may have no greater interest in hiring you as their dealer you than walking into a local competitor. So the small barrier that you hope will qualify him more closely actually causes him to turn away from you and call someone else. I urge you to provide an e-mail address, toll-free number, business-reply envelopes (where you pay return postage), and other conveniences. These increase the likelihood that your prospect will contact you before they contact another dealer.

MISCONCEPTION #10: To attract new clients, you should promote your services. No! When you promote your services, you take on the role of a salesperson, which undermines your credibility. This is called selling-based marketing. Instead, promote your knowledge using Education-Based Marketing. This allows you to attract new clients, increase referrals, strengthen client loyalty and build your image as an authority without selling. Education-Based Marketing gives prospects what they want, information and advice -- and it removes what they don’t want, a sales pitch.


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To Your Success,


Sean Patrick
Auto Marketing Profits
sean.patrick@automarketingprofits.com

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