Sales promotion at the car dealer’s


Term Paper, 2009
7 Pages, Grade: 1,4

Excerpt

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

1 Introduction

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.

2 Definition and meaning of sales promotion

The combination of several instruments of marketing, which should be used limited in time and support the normal marketing instruments, can be called sales promotion.

It should not be mixed up with advertisement, because advertisement should achieve other aims than sales promotion. Advertisement is only focussed on customers. Sales promotion on the other hand includes also the own sales organisation. The operation time is different too. Advertisement campaigns should last longer than sales promotion. The only exception is the training of the sales staff. This should be extended.

The change of the market from a seller’s market to a buyer’s market made it possible for the customers to choose from several offers. A good example is the so called “Golfklasse”, that means smaller cars from 4.20 m to 4.40 m in length. Twenty years ago, there where five till seven competitors in this category. Nowadays you can find 20 till 22 competing companies. The experience from the car industry shows that there is no difference in quality of all the cars today. Twenty years ago you could recognize differences in the quality of the cars. So you can speak of product assimilation. Because of the high number of competitors in this sector it increases the advertisement for the customer. This information flood leads to a weakening of advertisement in traditional media.

All these facts are good reasons to utilize the sales promotion to respond the customers directly and aimed.

3 Measures of sales promotion

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.

Abbildung in dieser Leseprobe nicht enthalten

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.

[...]

Excerpt out of 7 pages

Details

Title
Sales promotion at the car dealer’s
College
University of Applied Sciences Gera-Eisenach
Grade
1,4
Author
Year
2009
Pages
7
Catalog Number
V137871
ISBN (eBook)
9783640464463
File size
379 KB
Language
English
Tags
Englisch, sales promotion, Autohaus, car dealer, Verkaufsförderung, Werbung, Marketing, english
Quote paper
Sören Ebers (Author), 2009, Sales promotion at the car dealer’s, Munich, GRIN Verlag, https://www.grin.com/document/137871

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