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Auto industry gets creative with crucial marketing strategies

 

In efforts to move past the economic crisis, dealerships are trying a variety of marketing strategies from social media to haircuts to get consumers in the door.

Top 5 car models in Miami market

1.Toyota Corolla

2.Toyota Camry

3. Honda Accord

4. Hyundai Sonata

5. Honda Civic

Source: Polk

Top factors influencing South Florida car buyers

1. Prior Brand Experience

2. Seeing Vehicle on Road

3. Dealership Experience

4. Word of Mouth

5. Internet/Website

6. Brochure

7. Print Article

8. Auto Show

9. TV ad

10. Newspaper ad

Source: Foresight Marketing Research


Driving Florida’s economy

2010200820062004
Number of new-car dealershipsFlorida863923954951
U.S.18,46020,77021,49521,640
Average sales per dealershipFlorida$46 million$39 million$52 million$58 million
U.S.$31 million$29 million$32 billion$33 billion
Total new-vehicle salesFlorida$39 billion$36 billion$50 billion$55 billion
U.S.$553 billion$576 billion$675 billion$714 billion

Source: National Automobile Dealers Association Industry Analysis Division (NADA)


New-Car Unit Sales in U.S.

YearUnits
200017.35 million
200117.1 million
200216.8 million
200316.6 million
200416.86 million
200516.9 million
200616.5 million
200716.1 million
200813.2 million
200910.4 million
201011.6 million

Source: NADA


Special to The Miami Herald

For all the things that have changed and are evolving in the automobile industry, bottom-line success for South Florida car dealers still boils down to one necessity: Getting the customer through the door and into the showroom.

That’s where deals are ultimately made, where the look and feel and smell and touch of a new car can lead to the final intoxicating moment for both the business and the customer: a sale.

Car shoppers may arrive clutching a newspaper ad with a low-interest loan offer. A few may wave an email coupon they printed at home for “liking” a car dealer’s Facebook page or answering a Tweet, or even just for clicking on a dealer’s website. (In return, the dealer benefits by building an all-important email database of customers, creating a more personal and direct way to advertise.)

Getting word out

“You have to motivate the consumer to come inside,” said Richard Baker, president of the South Florida Automobile Dealers Association. “You have to get the word out.”

That’s more of a challenge in South Florida than in other areas of the country, where people visit car dealerships as a form of Saturday entertainment, said Art Spinella, president of CNW Research, which conducts marketing research on the auto industry.

These days, car dealers must have a strong Internet presence, with a full-service website, pop-up ads and all the real-time, interactive bells and whistles that social media offer. Online information allows consumers to learn about the product, then compare cars and deals. Most dealers still rely on newspaper ads, TV and radio to reach the older generation and those who have done their research and are primed to buy a car.

“During the recession, we made marketing adjustments and tried to get away from newspaper, television and radio,” said 35-year industry veteran Warren Henry Zinn, president and CEO of Miami-based Warren Henry Auto Group, which includes nine franchises from Miami to Ocala. “It was helpful for us in our Infinity brand because we have a much younger buyer. But we still have people who come to the showroom with newspapers in their hand. You can’t abandon those people.”

Nationally, about 60-65 percent of visitors to car dealerships are motivated by a newspaper ad, Spinella said.

As the largest car retailer in the country, Fort Lauderdale-based AutoNation has the resources to capitalize on all forms of advertising and marketing. Senior Vice President Marc Cannon oversees a team of social media marketers who post videos, tweet and stream live footage from car shows and other events.

Being proactive

“Eighty percent of our customers are going online before going into the dealership,” Cannon said. “Everybody is moving to a conversational way of marketing and advertising. It’s a proactive thing. It’s all building up to when the customer is ready.”

AutoNation, for example, ran a social media contest in November for three NFL footballs autographed by Dan Marino, a spokesman for AutoNation’s South Florida Maroone dealerships. The retailer’s blog asked: “What is your favorite tailgating activity?” with bonus entries for “liking” the blog post, “liking” AutoNation on Facebook and following AutoNation on Twitter. Three winners were chosen from 71 entries.

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