In contrast to a retailer or wholesaler in food retailing, a car dealer has no choice of his products. A car dealer who has a contract with a car manufacturer, for example Mercedes-Benz, is only allowed to sell Mercedes-Benz cars. Only if the dealer has a contract with another car manufacturer, he can sell those cars.
The only way to distinguish car dealers is about their consultations and services. By using a good sales promotion, the dealer can amplify his consultations and services and gain new customers.
This task offers an insight to sales promotion and shows measures how car dealers can use them.
A good sales promotion requires a good planning. It should contain an as-is analysis, i. e. the aims, the target group and the strategy of sales promotion. You have also to plan how to reach the attention of the customers.
This preparative work is not part of this task, but it is necessary for the success of the following measures.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Definition and Meaning of Sales Promotion
- Measures of Sales Promotion
- Special Models of the Car Dealers
- Appearance Outside the Car Dealer's
- Events at the Car Dealer's
- Spring or Summer Festival
- Events for a Special Range of Customers
- Driving Events
- Training of Employees and Motivation
- Result
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This seminar paper aims to provide insight into sales promotion strategies specifically applicable to car dealerships. It explores various measures car dealers can utilize to enhance their sales and customer engagement, focusing on the unique challenges and opportunities within the automotive industry.
- Sales promotion strategies for car dealerships
- The role of special models and offers in boosting sales
- Effective methods for reaching potential customers outside the dealership
- Organizing successful events to attract and engage customers
- The importance of employee training and motivation in sales success
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory chapter sets the stage by highlighting the unique position of car dealerships compared to other retailers. Unlike retailers with varied product choices, car dealers often operate under contracts limiting their product range. The chapter emphasizes that effective sales promotion is crucial for differentiation and attracting customers, focusing on superior consultations and services. It briefly outlines the structure of the paper and underscores the importance of careful planning in successful sales promotion, a crucial element not detailed within the scope of this specific paper.
Definition and meaning of sales promotion: This chapter defines sales promotion as a time-limited combination of marketing tools designed to complement standard marketing efforts. A key distinction is drawn between sales promotion and advertising, with the former encompassing internal sales organization and a shorter timeframe than typical advertising campaigns, with the exception of staff training, which should be ongoing. The shift from a seller's to a buyer's market in the car industry is discussed, illustrating the increased competition (especially within the "Golfklasse") and resulting product assimilation, leading to a weakening of traditional advertising and underlining the need for direct, targeted sales promotion.
Measures of sales promotion: This chapter delves into specific sales promotion measures. It begins with special models—cars equipped with optional features packaged at a reduced price. The chapter emphasizes the need for dealers to understand their contracts with manufacturers before creating these models, considering the manufacturer's own offerings and addressing gaps in the market. The importance of data analysis and understanding customer preferences is stressed to tailor special models effectively. The chapter further elaborates on appropriate naming strategies for the models, including using dealer branding or local references to increase customer connection and engagement. Finally, it highlights the need to factor in the costs and potential long-term benefits of customer loyalty resulting from a superior sales process.
Appearance outside the car dealer's: This section explores the strategies for reaching customers beyond the dealership's physical location. Collaborations with shopping centers are suggested as a means of increasing brand visibility and informal customer interaction. This strategy encourages brand awareness and casual engagement. Connecting these appearances with campaigns (like test drive vouchers or free car evaluations) is recommended to encourage return visits to the dealership. Participation in local fairs and exhibitions is also highlighted as a means of promoting the brand and providing opportunities to connect with the community through giveaways tailored to various age groups.
Events at the car dealer's: This section focuses on dealership-hosted events, with spring/summer festivals as prime examples. These festivals can be tied to new product launches but require additional incentives for customer engagement. The importance of planning and organization is implicit in creating a successful event that will generate positive return on investment. This section also briefly touches upon the need to plan for events targeted at specific customer demographics.
Schlüsselwörter (Keywords)
Sales promotion, car dealerships, marketing strategies, special models, customer engagement, event planning, employee training, buyer's market, product assimilation, advertising, customer loyalty.
Frequently Asked Questions: Sales Promotion Strategies for Car Dealerships
What is the overall focus of this document?
This document provides a comprehensive overview of sales promotion strategies specifically designed for car dealerships. It explores various methods to enhance sales and customer engagement within the automotive industry, considering the unique challenges and opportunities of this sector.
What topics are covered in the Table of Contents?
The document covers an introduction, a definition and meaning of sales promotion, various measures of sales promotion (including special models, external appearances, dealership events, driving events, and employee training), and concludes with a summary of the results.
What are the key objectives and themes explored?
The main objectives are to provide insights into effective sales promotion strategies for car dealerships, analyze the role of special models and offers, explore methods for reaching potential customers outside the dealership, examine the importance of organizing successful events, and highlight the role of employee training and motivation in sales success.
What are the key takeaways from the "Introduction" chapter?
The introduction emphasizes the unique challenges of car dealerships compared to other retailers due to limited product ranges determined by manufacturer contracts. It highlights the crucial role of effective sales promotion for differentiation and customer attraction, focusing on superior consultations and services. The importance of careful planning in sales promotion is also underscored.
How is sales promotion defined in this document?
Sales promotion is defined as a time-limited combination of marketing tools designed to complement standard marketing efforts. A key distinction is made between sales promotion and advertising, emphasizing the shorter timeframe and focus on internal sales organization (except for ongoing staff training).
What is the significance of the shift to a buyer's market in the car industry?
The shift to a buyer's market highlights increased competition and product assimilation, leading to a weakening of traditional advertising and underscoring the need for direct, targeted sales promotion strategies.
What are some specific sales promotion measures discussed?
Specific measures discussed include creating special models with packaged optional features at reduced prices, strategies for reaching customers outside the dealership (e.g., shopping center collaborations, local fairs), organizing dealership events (e.g., spring/summer festivals), and the importance of employee training and motivation.
What is the importance of special models in sales promotion?
Special models, cars with bundled optional features at a discount, are highlighted as a key sales promotion tool. The document emphasizes the need for dealers to understand their manufacturer contracts, analyze customer preferences, and develop effective naming strategies for these models.
How can car dealerships reach customers outside their physical location?
Strategies for reaching customers outside the dealership include collaborations with shopping centers for increased brand visibility, participation in local fairs and exhibitions, and using these appearances to promote campaigns (test drive vouchers, free car evaluations).
What role do events at the dealership play in sales promotion?
Dealership-hosted events, such as spring/summer festivals, are presented as opportunities to engage customers, potentially linked to new product launches. The importance of planning and targeting specific customer demographics is also emphasized.
What are the key words associated with this document?
Key words include sales promotion, car dealerships, marketing strategies, special models, customer engagement, event planning, employee training, buyer's market, product assimilation, advertising, and customer loyalty.
- Quote paper
- Sören Ebers (Author), 2009, Sales promotion at the car dealer’s, Munich, GRIN Verlag, https://www.grin.com/document/137871
