A used-vehicle operation canêt reach its potential without an effective marketing plan. Dorthy Miller Shore suggests the following as a planning checklist:
1. SET YOUR BUDGET. Whether you plan your advertising budget month by month (based on a percentage of your previous monthês sales) or work on a fixed yearly budget, you need to have a plan for using your marketing resources wisely. Stay within your budget, and be sure to track your results. Knowing which media brought more customers to your showroomãand which ones didnêtãwill help you refine your advertising approach in the future.
2. SET YOUR MEDIA PLAN. Which group or groups are you trying to reach? Which medium or combination of media will you use to reach them? Whatever your approach, be creative, and make sure you spend your dollars on advertising that reaches your target audience as efficiently as possible. If that direct mail flyer didnêt bring in as many 18-34-year-olds as you hoped, try something else.
3. ESTABLISH A CREATIVE OUTLINE. What promotions do you want to run during the next year? As part of your creative outline, you should try to include at least four major events each year. Spread them outãperhaps one per quarterãso that each event can be fresh in your customersê minds.
4. CREATE A TRADITION OF ANNUAL EVENTS. As your dealership grows, youêll want to keep several of your promotions as annual events. Customers in your selling area will come to recognize and expect your regular events, helping you establish a stronger identity in your selling area.
5. SET YOUR CALENDAR USING HIGH AND LOW SALES TRENDS. Keep records of how well your events do so that youêll know whether to repeat them in the future. Also, note any other factorsãweather, remodeling, other local events, and so forthãthat affected your event, for good or for ill. A notation such as Weêve had more customers at our sales events since we remodeled our showroom will help jog your memory when youêre planning for future events.
6. PREPARE YOUR SALES MATERIALS AHEAD OF TIME. Whatever media you plan to use, itês always a good idea to have themes, layouts, and other details thought out in advance.
7. PLAN YOUR INVENTORY TO MATCH YOUR CALENDAR. If youêre going to have a major sales event, youêd better make sure you have vehicles people will want to come and see. Trade-ins will account for perhaps 30-60% of your event inventory. Auctions help you find the rest of what youêll need, and theyêll also help you stock the best-selling, most popular vehicles in your selling area.
This article is adapted from the NADA 2006 Convention workshop [I]Extreme Makeover: Revitalizing Your Used-Car Advertising[/I], presented by Dorthy Miller Shore. Order this and other convention workshop recordings online at www.iplaybackNADA.com.
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