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.
Table of Contents
1 INTRODUCTION
2 DEFINITION AND MEANING OF SALES PROMOTION
3 MEASURES OF SALES PROMOTION
3.1 SPECIAL MODELS OF THE CAR DEALERS
3.2 APPEARANCE OUTSIDE THE CAR DEALER’S
3.3 EVENTS AT THE CAR DEALER’S
3.3.1 Spring or summer festival
3.3.2 Events for a special range of customers
3.4 DRIVING EVENTS
3.5 TRAINING OF EMPLOYEES AND MOTIVATION
4 RESULT
Objectives and Topics
This paper explores the strategic role of sales promotion within the automotive retail sector, focusing on how car dealers can differentiate themselves in a highly competitive "buyer’s market" through targeted marketing instruments and improved customer engagement.
- Strategic differentiation of car dealerships via service and consultation.
- Implementation of custom sales measures such as special vehicle models.
- Enhancement of customer outreach through external events and partnerships.
- Utilization of experiential marketing through driving events.
- Optimization of sales performance through staff training and motivation systems.
Excerpt from the book
3.1 Special models of the car dealers
Cars which are configured with selected and subject to surcharge special equipment as a packet and sold to customers with a saving are called special models..
For example the special model “comfort” with heated seats, air conditioning, electric windows and navigational system.
In this example the customer would save 2,500.00 €.
Before the car dealer decides to offer his own special models, he has to check his dealer contract. The dealer contract regulates all rights and duties between the manufacturer and the dealer and the possibility to sell his own special models.
The manufacturer himself offers special models too. But these cars could not fit the needs of the dealer’s customers.
Especially the manufacturers of the high-end market offer special models rarely, so it could be useful for car dealers of these manufacturers to offer their own special models. Of course you can support the sale of low selling cars.
To offer an own special model, you have to evaluate the data of the dealer management systems which where used to sell the cars. So you can determine which special equipment the customers mostly picked and which combination they chose. This evaluation can be related even on the age of the customer. So you can create special models for a special range of customers. As well you have to mind the experience of the shop assistants. They know which special equipment the customers possibly order.
Summary of Chapters
1 INTRODUCTION: This chapter highlights the challenges of car dealerships in a fixed manufacturer-contract environment and emphasizes the necessity of superior consultation and sales promotion to gain a competitive edge.
2 DEFINITION AND MEANING OF SALES PROMOTION: The author defines sales promotion as a time-limited marketing instrument that supports core sales activities and distinguishes it from long-term advertising, noting the market shift from a seller's to a buyer's market.
3 MEASURES OF SALES PROMOTION: This section details practical strategies including the creation of dealer-specific special car models, external appearances at public venues, organized in-house events, and the implementation of test-drive experiences.
3.1 SPECIAL MODELS OF THE CAR DEALERS: Focuses on the configuration of add-on packages to provide customer savings and how data-driven insights help dealers create targeted offers that address specific customer needs.
3.2 APPEARANCE OUTSIDE THE CAR DEALER’S: Discusses the importance of reaching potential customers in suburban areas through cooperation with shopping centers and local fairs, utilizing giveaways to foster brand connection.
3.3 EVENTS AT THE CAR DEALER’S: Examines how seasonal festivals and launch events can be leveraged to incentivize visits, incorporating service department offers and entertainment to create a holistic customer experience.
3.3.1 Spring or summer festival: Details the integration of spare parts and service departments into event planning, alongside catering and local partnerships to maximize customer attraction.
3.3.2 Events for a special range of customers: Explains the value of need-based configurations for specific demographics, such as families or senior citizens, through specialized programs and product demonstrations.
3.4 DRIVING EVENTS: Explores the use of experiential marketing, specifically test drives in challenging terrains or specialized courses, to convince customers of vehicle technology and quality.
3.5 TRAINING OF EMPLOYEES AND MOTIVATION: Emphasizes the critical need for well-schooled staff and the implementation of performance-based incentives and rankings to maintain high service standards.
4 RESULT: The conclusion synthesizes the findings, reaffirming that tailored sales promotions and consistent staff training are the fundamental pillars for long-term customer loyalty and business success in automotive retail.
Keywords
Sales promotion, Car dealer, Marketing instruments, Buyer’s market, Customer loyalty, Special models, Dealer contract, Test drives, Staff training, Automotive retail, Sales organization, Product assimilation, Event marketing, Customer acquisition, Performance-based commission.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the application and strategic importance of sales promotion tools specifically designed for car dealerships to distinguish themselves in a competitive market.
What are the primary thematic areas covered in the text?
The key themes include the definition of sales promotion, the development of special vehicle models, event marketing strategies, the role of experiential driving events, and the importance of professional staff development.
What is the main goal or research question?
The goal is to provide an insight into how car dealers can utilize specific sales promotion measures to gain new customers and retain their existing client base.
Which scientific methods are primarily used?
The work employs a descriptive and analytical approach, combining marketing theory with practical operational strategies used in the automotive retail industry.
What is covered in the main body of the work?
The main body systematically reviews various promotional tactics, ranging from product-related strategies (special models) to human-resource-focused strategies (training and motivation) and event-based outreach.
Which keywords characterize this work?
Keywords include sales promotion, automotive retail, customer loyalty, staff training, and experiential marketing.
How does the author distinguish sales promotion from traditional advertising?
The author argues that sales promotion is time-limited, supports standard marketing instruments, and involves the internal sales organization, whereas advertising is broader and focused purely on customer perception.
Why is the "geprüfter Automobilverkäufer" training highlighted?
It is highlighted as a mandatory professional standard in the industry that ensures sales staff possess the necessary product knowledge, legal understanding, and sales techniques to effectively serve customers.
How do special models serve as a competitive advantage?
Special models allow dealers to provide customized value to their local customer base, address specific needs that national manufacturer models might miss, and support the movement of low-selling inventory.
- Citation du texte
- Sören Ebers (Auteur), 2009, Sales promotion at the car dealer’s, Munich, GRIN Verlag, https://www.grin.com/document/137871
