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Ralph Paglia Presentation to Honda Zone 9 business meeting


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Ralph Paglia Presentation to Honda Zone 9 business meeting

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Ralph Paglia Presentation to Honda Zone 9 business meeting

  1. 1. Agenda<br />7:30 am – 8:45 am Breakfast<br />9:00 am – 9:10 am Welcome & Opening Remarks<br />9:10 am – 9:40 am Steve Jaros – Assistant VP/Eastern Region<br />9:40 am – 10:10 am Christan Miller – Zone Sales Manager<br />10:10 am – 10:35 am Jeff Williams – Sr. Mgr/ Sales & Marketing (AHFC)<br />10:35 am – 10:40 am “The Honda Guitar Heroes”<br />10:40 am – 11:00 am BREAK<br />11:00 am – 11:25 am Ron Lybrook – Assistant VP/Parts & Service<br />11:25 am – 12:15 pm Gerry Rubin – Co-Chairman (RPA)<br />12:15 pm – 12:25 pm Peggy Proko – Zone 9 NDAB Chair<br />12:25 pm – 12:30 pm Christan Miller – Zone Sales Manager<br />12:30 pm – 1:30 pm Lunch<br /> 1:30 pm - 3:00 pm Ralph Paglia – VP Tier 10 Marketing<br />Integrated Marketing – Civic Launch<br />3:00 pm – 3:15 pm BREAK<br /> 3:15 pm - 3:30 pm Gerard Harrington – Zone Manager PI<br /> 3:30 pm – 3:50 pm Randy Smith – National Manager PI <br /> 3:50 pm – 4:00 pm Close<br />
  2. 2. Ralph Paglia<br />Vice President<br />Tier 10 Marketing<br /><br /><br /> <br />
  3. 3. Ralph Paglia<br />Nationally recognized speaker and author on Automotive Digital Marketing, Advertising, Lead Management and CRM Practices<br />Led team that generated and managed 144,000+ leads at a single-point Phoenix dealer in 2 years <br />Managed dealership sales team that delivered 4,000+ vehicles to Internet Leads and website phone calls in 2006 <br />20+ year background in developing Integrated Marketing strategies and lead management implementations for dealers and car companies<br />Managed first retail automotive pilot program for Google Audio while in beta testing at Courtesy Chevrolet in 2005, 2006 and 2007<br />Started generating Internet leads in 1986 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in San Diego<br />Reynolds Consulting/Cyber Car Catalyst of the Year in 2001<br />AAISP/Digital Dealer Magazine Internet Sales Manager of Year 2006<br />Digital Advertising Program Director at ADP Dealer Services<br />
  4. 4. Integrated Marketing Process<br />1. Market Research<br />Use market research to identify consumers that have the highest statistical probability of doing business with your dealership. Tier 10 uses the manufacturer’s research, Polk Market data and the dealer’s historic sales and service trends to plan which customers to target in the future.<br />
  5. 5. 2. Traditional Advertising<br />Traditional advertising on TV, radio and print is expensive in New York, like other major metro markets. As a result, Paragon shifted a lot of their traditional ad budget to more targeted marketing that generates better returns. However, since Latinos make up half of Paragon’s market, they have leveraged some good buys on Spanish radio, as well as, print ads in the New York Times where they include QR technology, a barcode that links consumers’ mobile phones to Paragon’s website where they can learn more about the offer and contact the dealership<br />
  6. 6. 3. Online Marketing<br />Over 90% of Honda consumers use the web to shop so Paragon implemented an in-depth strategy for search engine optimization and marketing, email marketing, banner ads on popular websites like Facebook, social media marketing, online reputation management and mobile marketing.<br />
  7. 7. 4. Search Engine Marketing<br />Since the majority of consumers use search engines to find their next new vehicle, Paragon uses organic Search Engine Optimization (SEO), Video Search Engine Optimization (VSEO) and targeted pay-per-click search marketing campaigns to attract in-market consumers who are shopping for Acuras and Hondas to their website and dealership.<br />
  8. 8. 5. Micro Sites<br />All of Paragon’s digital marketing efforts drive consumers to a campaign micro site where the message, offers, look and feel are consistent with every other part of the campaign. The campaign micro site is designed to convert the maximum number of visitors into email, phone and showroom leads. Here are some examples of micro sites we currently use: <br /><ul><li> 
  9. 9.</li></li></ul><li>6. Public Relations<br />Tier 10 believes that a free five minute story on a major TV network that appears online forever has a bigger impact than an expensive 30 or 60 second TV ad that runs out when the budget expires. We created and distributed relevant press that generates interviews with local press and we have received exposure in the Wall Street Journal,  New York Times, NY Post  and hundreds of stories on national outlets, including CNN, ABC, NBC, CBS, FOX and MSN.<br />
  10. 10. 7. Reputation Management<br />Today’s consumers rely more on other consumers’ reviews than advertising, so Online Reputation Management is a top priority at Paragon. When consumers Google Paragon they will find out about all the things they are doing in the community and they will be able to read positive reviews from satisfied customers.<br />
  11. 11. 8. Targeted Marketing<br />Paragon communicates with all in-market Honda and Acura consumers by sending custom offers based on their vehicle, miles and position in their ownership cycle. Paragon sends custom campaigns via mail and email to promote all their profit centers, New, Used, Finance, Service and Parts.  We dial into Paragon’s DMS to target in-equity customers and we use variable printers to send a custom message to each consumer that shows them how they can get a newer vehicle for a lower payment.<br />
  12. 12. The Perfect Prospect<br />Polk<br />DMS<br />Honda<br />=<br />76,000<br />Perfect<br />Prospects<br />Paragon Customers<br />17,000<br />Honda<br />Customers<br />22,000<br />Nissan<br />Customers<br />7,500<br />Toyota <br />Limited<br />5,300<br />VW<br />Limited<br />1,890<br />Older<br />Domestics<br />22,000<br />
  13. 13. 9. Niche Marketing<br />We created a corporate purchase program to employees of large organizations in their market that gives them special pricing and service when they do business at Paragon. We sends an information package to the HR department of the largest organizations in our area to ask them if they want to give this free benefit to their employees. If a company wants to join the program they receive a communication kit from Paragon that explains the program to their employees. Companies have the option of having brochures customized with their logo and sent to their employees directly so they don’t even need to stuff their payroll envelopes.<br />
  14. 14. 10. Merchandising<br />When you walk into Paragon Honda and Acura, it is obvious something is going on. Even if consumers don’t know about their sale the merchandising quickly reminds them that they are lucky they stopped by at the right time. The dealership has extensive POS Merchandising that promotes the Paragon Guarantee and Paragon’s Certified Pre-Owned Vehicles.<br />
  15. 15. The Result<br />Paragon Honda and Acura grew from #17 to the #1 New and Certified Pre-Owned Honda & Acura Dealer in the U.S. in a short 6 month period. <br />“Overall, it was our best year in business despite being the worst year in the industry,” said Brian Benstock, GM and partner of Paragon Honda <br /> “We had a record year for volume <br /> and profitability during a record <br /> low year for the car business.” <br />
  16. 16. Action Plan Response to “A message from Steve Jaros and David Hendley”<br />
  17. 17. 2012 Civic Launch Dealer Readiness<br />Get your sales staff together and develop plans on how you will get the 2012 Civic message to your customer database. Will it be a preview night, special invitation only event, or a direct mail campaign that offers a special incentive to come by and see the all-new 2012 Civic? <br />Correct Answer: All The Above!<br />Use highly targeted Direct Mail combined with Email campaigns to drive showroom traffic…<br />
  18. 18. How can you tie into local events in late April to May time frame? <br /><ul><li>Local fairs and Spring Events are tailor made to showcase the all-new Civic
  19. 19. Sponsor Prom Night Alcohol Free after parties featuring new 2012 Civic at event
  20. 20. Sponsor College Spring Formals for Fraternities and Sororities and showcase the new 2012 Civic at events </li></li></ul><li>How do you get the moms and dads of those graduating high school seniors and college students to shop you first before they go to another brand?<br /><ul><li>Dealership sponsored “College Graduate Program”
  21. 21. Promote with Blogs and Tweets using popular college and school hash tags
  22. 22. Develop College Internship Program where Interns must use social media marketing to generate 2012 Honda Civic test drives</li></li></ul><li>How do you get your local print and media to take notice of the all-new Civic?<br /><ul><li> Press Releases through Prweb and Prnewswire
  23. 23. Local Press Ride and Drive day event
  24. 24. Radio talk show call in appearances by dealer
  25. 25. Dealer interview on TV news report about rising gas prices and the innovation of Civic GX</li></li></ul><li>How do you use your local contacts, associations, and corporations to show the all-new Civic?<br /><ul><li>Shopping center placements; San Tan Honda puts new vehicles all over the San Tan Village shopping center with brochures on windshields
  26. 26. Honda Owner Clubs – Send representative to present the 2012 Civic at monthly meetings
  27. 27. Costco Membership Warehouse and Sam’s Club in-store vehicle displays</li></li></ul><li>Lay of the land<br />
  28. 28. So what’s the hold up?<br />
  29. 29. Integration from a strategy perspective<br />
  30. 30. Evolution in a dealer’s planning paradigm<br />Marketing plans must answer the questions:<br />+ Where do car buyers want to engage with us?<br />+ Where do we want to engage with them?<br />+ How can we make it easier to engage with us?<br />
  31. 31. Strategy development tips<br />+ Acknowledge the need for integration<br />+ Think beyond short term campaigns<br />+ Elevate your tracking and analytics expectations<br />+ Hold everyone on your marketing team accountable for integration<br />
  32. 32. Integration from a media perspective<br />
  33. 33. Evolution in planning paradigm<br />Civic Launch campaignmedia plans must answer these questions:<br />+ How can we share intelligence between media disciplines?<br />+ Do all media channels support a uniform message?<br />+ Can consumers find us when/ where they want?<br />+ How can we track their behavior to make smarter marketing/ business decisions?<br />
  34. 34. Challenges<br />
  35. 35. Tunnel vision<br />
  36. 36. Solution<br />Lead strategically, not tactically<br />+ Bring everyone together during an initial 2012 Civic kick off to plan in a strategic and integrated fashion<br />+ Leverage media disciplinary experts (e.g. social media)<br />
  37. 37. Fragmented reporting<br />
  38. 38. Solution<br />Integrate reporting and assign media channel KPIs<br />+ Segmented reports do not illustrate the big picture <br />
  39. 39. Accountability<br />
  40. 40. Solution<br />Every discipline affects a marketing ecosystem, so everyone is accountable for output.<br />+ Attach goals to various departments and make sure everyone is onboard with the integrated marketing plan.<br />+ I’m on a horse: Do you think the social media and video teams for the Old Spice campaign planned in isolation?<br />
  41. 41. Scenario planning<br />
  42. 42. Solution<br />+ Plan for every iteration of yur 2012 Civic launch campaign and don’t sell yourself short.<br />+ Before you initiate your 2012 Civic launch campaign, take pause to see any gaps that are easily overlooked when you’re knee deep in execution<br />
  43. 43. Key 2012 Civic launch integration points<br />+ Paid search and SEO<br />+ Display and paid search<br />+ Online and offline<br />+ Social and paid search<br />+ Email and social<br />+ Website + EVERYTHING…<br />
  44. 44. % of car buyers that found the car they bought on-line<br />70+%<br />
  45. 45. Why doesn’t dealer advertising have the same impact on sales that it had a few years ago?<br />1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007<br />2. 2006 National Automobile Dealers Association Data<br />
  46. 46. Only travel is more influenced by Online media<br />Source: DoubleClickTouchpoints III<br />
  47. 47. “Which information source was most important when making decisions about buying your vehicle?”<br />R.L. Polk 2010<br />
  48. 48. Newspaper spending is declining<br />Includes auto manufactures, national dealer associations, individual dealerships and other market vendors, excludes auto insurance and retail companies.<br />
  49. 49. Are You Ready for Battle? Toyota’s Mission is to take Civic Buyers…<br />
  50. 50. Are You Ready for Battle? Toyota’s Mission is to take Civic Buyers…<br />
  51. 51. 2012 Honda Civic VideoPre-Roll Lexus CT Advertisement<br />
  52. 52. Integrated Advertising Phase 1 Approach<br />Do-It-Yourself Digital Advertising <br />Although it may seem complex, many forms of digital advertising can be done without extensive training. We share with you some of the latest ways you can get started, many of them at no cost!<br />
  53. 53. Integrated AdvertisingPhase 2 Approach<br />Digital Advertising Setup & Training <br />An introduction to the tools, processes and know-how needed by dealers to get up and running with online advertising – 2 days of in-dealership hands on process definition, building and launching actual campaigns! <br />Day 1<br />Campaigns<br />Setup<br />Day 2<br />Campaigns<br />Launch<br />
  54. 54. Full Service Digital Advertising Solution<br />Partner with a qualified service provider to provide your dealership with some of the most advanced advertising solutions that are available today.<br />Integrated AdvertisingPhase 3 Approach<br />
  55. 55. Consumers Compare Brands Online Dealers are Competing with Other Makes… Online!<br />Consumers visit an average of 6 dealership websites, most are visiting one dealership site per brand.<br />Integrated Advertising is an effective way to increase a dealer’s selection as the one Honda dealer that the consumer visits.<br />Are you planning your advertising for maximum effectiveness?<br />
  56. 56. Search Engines are the primary tool used by car buyers for filtering dealerships <br />Dealer Websites are now an extension of the dealer’s showroom and local brand<br />What you need to knowPre-Selection Filters - Car Buying Starts on Web<br />Are you planning your advertising for maximum effectiveness?<br />
  57. 57. What should dealers measure?<br />
  58. 58. What does it look like when we evaluate an Integrated Advertising Campaign (4 months)<br />33,257,657 Impressions Generated – How many times the ads were seen<br />29,528 Visits to the dealers web sites, landing pages and micro sites<br />2,248 Electronic Leads and Phone Calls Generated<br />174 Vehicles Sold – You know what this means!<br />$71,801 Integrated Campaign Cost – Multiple media channels<br />$2.16 Cost per Thousand (CPM)- How much to get 1,000 Impressions<br />$2.43 Average Cost per Visitor to dealer’s site<br />$31.94 Average Cost per Lead Generated<br />$412.65 Average Cost Per Vehicle Retailed (PVR), (compares to $620.55 YTD)<br />
  59. 59. Which Advertising Networks Recommended for 2012 Honda Civic Launch?<br />Facebook Advertising<br /><br />Reach Your Target Customers; Choose your audience by location, age and interests<br />Google Advertising Network<br /><br />Site examples: CNN, MySpace, New York Post, Macworld, HowStuffWorks, Univision, AutomotiveForums, Swapalease, Kudzu and thousands more. <br />Kelley Blue Book In-Market Vehicle Shopper Network<br /><br />Site examples: Consumer Guide Automotive, J. D. Power & Associates, NADA Guides,,, Motortrend, Car and Driver and many more.<br />Yahoo! Advertising Network<br /><br />Site examples: Ebay Motors, Yahoo! Autos, Yahoo! News, Yahoo! Email, Comcast, AT&T,, WebMD, Forbes and thousands more.<br />
  60. 60. Types of Buys:<br />Pay for Placement by Time (fixed monthly fee)<br />Pay per Click (PPC or CPC)<br />Pay per Thousand Impressions (CPM)<br />Pay per Conversion (CPA) Leads & Calls Generated<br />How to Get it Done:<br />In-House: Do It Yourself <br />Professional Digital Ad Setup and Training <br />Outside SEM Service Providers & Ad Agencies<br />Regional Honda Dealer Advertising Associations <br />Honda OEM Digital Ads<br />How does buying Online Advertising work?Can dealers use online ads to drive Traffic?*<br />
  61. 61. Action PlanWhat will you do when you return to your store?<br />Check List Items<br />Opportunity Management; Internet, Phone & Showroom <br />Download/Print Advertising Guides from Honda iN<br />Assign Roles and Responsibilities; whose job is it? <br />Identify What’s Missing<br />What’s your 2012 Civic Launch message?<br />Who’s your targeted 2012 Civic buyers?<br />Google Adwords - Set up a dealership account<br />Google Adwords Training – Get Adwords Certified<br />Too Much? – Then get help from Agency or Consultant<br />Outsource? – Find trusted resources at <br />
  62. 62. Geographic<br />Target car buyers in specific locations<br />Behavioral<br />Target prospects whose recent online behaviors indicate high interest in purchasing a car<br />Contextual<br />Target prospects while they are viewing automotive-related content on the Internet<br />Demographic<br />Target prospects based on your ideal market demographics<br />Retargeting<br />Target prospects who have already visited your website – leverage all media<br />Types of On-line Targeting<br />
  63. 63. Retargeting<br />Retargeting gives advertisers the power to connect with past website visitors in a simple, cost-effective and non-intrusive way<br />The most valuable users on the Internet are the past visitors to your website <br />98-99% of website visitors leave without completing a transaction<br />
  64. 64. Why Use an Advertising Network?<br />Advertising Networks:<br /><ul><li>Many of the best local websites
  65. 65. Coverage includes local geography only
  66. 66. Only buy in-market auto customers
  67. 67. Leverage Tier I campaigns/scale
  68. 68. Optimize campaign over time</li></ul>Buying All Consumers Locally:<br /><ul><li>No targeting or insight – shotgun
  69. 69. Several individual buys – no coordination, duplication
  70. 70. High funnel strategy vs. selling today</li></ul>Target Market<br />
  71. 71. Key Dealership Action Items<br />Search the web, learn the landscape<br />City Name and Honda Civic <br />Open Google Ad Words Account <br />Create a PPC search campaign based on “Honda Civic” terms geo-targeted to your PMA <br />Set up a Facebook Profile for Dealer Principal<br />Create “Honda Civic” Fan Page<br />Build a Facebook Ad campaign about the all new 2012 Honda Civic that points to your Fan Page<br />Invite Fans to test drive the 2012 Honda Civic <br />
  72. 72. Key Dealership Action Items<br />
  73. 73. Key Dealership Action Items<br />