Automotive Marketing Research Study by Dennis Galbraith


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Automotive Marketing Research Study by Dennis Galbraith presented to the 1st Digital Dealer Conference in 2006

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  • Like consultative selling process. Consumer is in charge. You cannot hard sell. Listening 2 ears 1 mouth Barfing your canned presentation on the customer Matchmaking Dating, jobs, Professional services Demonstrating Manufacturers don’t own stores
  • Asbury Automotive
  • Group 1
  • AutoNation
  • Automotive Marketing Research Study by Dennis Galbraith

    1. 1. The Future of Automotive Internet for AAISP Dennis Galbraith, Senior Director
    2. 2. Automotive Internet Usage Among New- 1 vs. Used 2 -Vehicle Buyers 8-Year Trend 2 Based to total used-vehicle buyers. Source: J.D. Power and Associates 1998-2005 Used Studies 1 Based to total new-vehicle buyers. Source J.D. Power and Associates 1998-2005 New Studies
    3. 3. Internet Impact on Car Buying Purchase Decisions Based to all New-Vehicle Buyers Dealer Selection Lender Selection
    4. 4. Internet Impact on the Different Purchase Decisions Based to all New-Vehicle Buyers Price Paid/ Offered Make/Model Selection
    5. 5. Most Influential Consumers Are Automotive Internet Users <ul><li>72% of auto-enthusiast magazine readers are AIUs </li></ul><ul><li>74% of new-vehicle buyers who are frequently asked about vehicles by others are AIUs </li></ul><ul><li>75% of “Auto Experts” are AIUs </li></ul>Based to all new-vehicle buyers
    6. 6. The Internet Is Vital to Buyers Under 40 <ul><li>80% are Automotive Internet Users </li></ul><ul><li>Internet impacts their decision making </li></ul><ul><ul><li>67% impacted in their make/model selection </li></ul></ul><ul><ul><li>64% impacted in their price paid/offered decision </li></ul></ul><ul><ul><li>33% impacted in their dealer selection </li></ul></ul>Based to all new-vehicle buyers under 40 years of age
    7. 7. Primary New Online Buying Services Median $140 Average $220 12% $500+
    8. 8. Member Services Median $125 Average $172 7% $500+
    9. 9. Primary Used Online Buying Services Median $160 Average $261 15% $500+
    10. 10. Classified Advertisement
    11. 11. Advertisement or Product Demonstration?
    12. 12. New-Vehicle Online Purchase Funnel Total New- Vehicle Buyers 100% New-Vehicle AIUs 67% Requested Referral 21% Sourced Online 12% 33% Did Not Use Internet for car shopping 68% Selected a dealer and went to store without submitting a lead 45% Bought from a different dealer Base = Total Buyers
    13. 13. Other Links from Site to Store <ul><li>E-Mail </li></ul><ul><li>Instant Message </li></ul><ul><li>Phone </li></ul><ul><li>Video Phone </li></ul><ul><li>In Person </li></ul><ul><ul><li>Ups </li></ul></ul><ul><ul><li>Appointments </li></ul></ul>
    14. 14. Request for Test Drive Appointment <ul><li>Description of Sales People </li></ul><ul><ul><li>Picture </li></ul></ul><ul><ul><li>Background </li></ul></ul><ul><ul><li>Video </li></ul></ul><ul><li>Calendar Selection </li></ul><ul><li>E-Mail Confirmation </li></ul><ul><li>Phone Confirmation </li></ul>
    15. 15. The Internet’s advantages resemble the consultative selling process <ul><li>Listening </li></ul><ul><li>Matchmaking </li></ul><ul><li>Demonstrating </li></ul>
    16. 16. Listening <ul><li>Browse </li></ul><ul><ul><li>Navigation </li></ul></ul><ul><ul><li>Naming Conventions </li></ul></ul><ul><ul><li>Speed </li></ul></ul><ul><li>Search </li></ul><ul><ul><li>Language rather than word </li></ul></ul>
    17. 17. Honda: “Does Ridgeline come in Red” produces Redrock Pearl Ridgeline
    18. 18. Matchmaking <ul><li>Product selector tools (there are now 300 plus models to choose from) </li></ul><ul><ul><li>Attribute based queries </li></ul></ul><ul><ul><li>Others like you </li></ul></ul><ul><ul><li>Lifestyle matching </li></ul></ul>
    19. 19. Online Product Demonstration <ul><li>What features are available? </li></ul><ul><li>What benefits does it provide? </li></ul><ul><li>How does the product work? </li></ul><ul><li>How does the product compare? </li></ul><ul><li>Why should I care? </li></ul><ul><li>How can I be sure? </li></ul><ul><li>What is the value proposition? </li></ul>
    20. 20. Lexus offers links to videos to learn about safety features. <ul><li>Why this feature is effective and how it can be improved: </li></ul><ul><ul><li>Audio and video help shoppers understand the functionality of the features </li></ul></ul><ul><ul><li>Safety benefits are clearly explained </li></ul></ul><ul><ul><li>Text is easy to understand and avoids technical jargon </li></ul></ul>Demonstrate Vehicle Safety
    21. 21. Demonstrate Superiority of the Vehicle Ford uses video to distinguish the F-150 from its competitors.
    22. 22. Demonstrate lifestyle adaptability and payload versatility of the vehicle Land Rover demonstrates cabin seating and cargo space by displaying actual people in the vehicle. <ul><li>Why this feature is effective and how it can be improved: </li></ul><ul><ul><li>Allows for visualization of passenger seating and cargo capacity </li></ul></ul>
    23. 23. Dealer Site Activity
    24. 24. David McDavid - 8 Brands
    25. 25. Bob Howard Auto Group – 16 Brands
    26. 26. – 25 Brands 25 Brands
    27. 27. Galpin – 8 brands sorted by price or body style
    28. 28. Integration Offline Online In Store Integrated Advertising Integrated Sales Engagement: Advertisement Vehicle Sales Person
    29. 29. Online Marketing Changes to Come… <ul><li>Current Practices </li></ul><ul><ul><li>Leads </li></ul></ul><ul><ul><li>Sites ask customers to choose </li></ul></ul><ul><ul><li>Advertising by ad medium </li></ul></ul><ul><ul><li>Get customers into the store </li></ul></ul><ul><ul><li>Configure exact vehicle </li></ul></ul><ul><li>Future Successes </li></ul><ul><ul><li>Appointments </li></ul></ul><ul><ul><li>Sites listen to customers and help </li></ul></ul><ul><ul><li>Advertising by relevance </li></ul></ul><ul><ul><li>Get customers engaged </li></ul></ul><ul><ul><li>Configure to a range of vehicles </li></ul></ul>
    30. 30. Parting Advice
    31. 31. Media Usage Is Changing <ul><li>Be sure your advertising budget moves in the same direction the consumer is moving. </li></ul>
    32. 32. Communicate the Way the Customer Wants To <ul><li>Phone </li></ul><ul><li>E-Mail </li></ul><ul><li>Instant Message </li></ul><ul><li>Appointment </li></ul>
    33. 33. Greater Transparency and Disclosure <ul><li>Don’t expect the next buyer to settle for less information than you did when you bought the vehicle. </li></ul>
    34. 34. Know Thy Product. <ul><li>Consumers have never been more informed. Salespeople need to be product professionals even if they are new to the job. </li></ul>
    35. 35. Work Every Lead <ul><li>Work every lead as though the person who just entered your electronic store mattered as much as the one looking you in the eye. </li></ul>
    36. 36. Great Dealer Sites <ul><li>Build a great dealer site and drive traffic to it with options like local search. </li></ul>
    37. 37. Internet Is Not Just For Incremental Sales <ul><li>Parts </li></ul><ul><li>Accessories </li></ul><ul><li>Repair </li></ul><ul><li>Maintenance </li></ul><ul><li>Stimulate Referrals </li></ul><ul><li>Repeat Sales </li></ul>
    38. 38. Read or Listen <ul><li> </li></ul><ul><ul><li>Dealer Edition Online Automotive Review </li></ul></ul><ul><ul><li>Fixed Operations Edition Online Automotive Review </li></ul></ul><ul><li>Digital Dealer </li></ul><ul><li>Wards Dealer Business </li></ul>
    39. 39. Thank You Dennis Galbraith, Senior Director [email_address] 805-418-8221