Your #1 source for auto industry news and content

4 primary ways to create a dealership marketing strategy

Traffic, traffic, traffic. Traffic solves a lot of problems for dealerships. You have to get traffic. You have to get people in the door, the phone to ring, and the door to swing. On the latest Mind Your Own Business episode, your host Jonathan Dawson discusses ways to utilize different market strategies to engage more traffic. 

When deeply diving into how dealership staff members can self-generate traffic, Dawson encourages dealers to look into the methodology of the four primary approaches to solving marketing questions. It’s important to note these four approaches are not all created equally, not all are on the same level of effectiveness, and not all have the same costs. However, Dawson explains the approaches in the order based on how he believes dealers would operate. 

  1. Pay for exposure/opportunity- AKA PPO
    • This approach is paying to have the opportunity or exposure in the marketplace. Dawson explains, “If dealers ever spent money solely for the purpose of a targeted audience to see or hear its message, then you have already partaken in this method.” To illustrate, if a dealer has utilized a billboard, television, radio, or social media- there is no guarantee anyone has heard or seen it. Still, you’re paying upfront money to have the exposure. 
  2. Pay per lead marketing 
    • Dealers will pay money in this situation in exchange for a contact, such as an email address, phone number, a conversation, or the ability to capture something from them. 
  3. Pay per sale 
    • Dealers only pay if a transaction is created. In the automotive sector, Dawson refers to it as the “Bird Dog Fee,” which only gets paid in the event that a sale occurs.
  4. Free marketing mode
    • Dealer participation results in a one-time low-cost, long-term residual benefit and payment for exposure, opportunity creation, and relationship building. Dawson states, “Expanding your marketing strategy by spending money once on a low cost and then enjoying the long-term return will benefit your dealer more.” For example, giving a consumer a keychain, depending on the style of the chain, will stay on their key fob for years. “You spend only a small amount on the keychain,” Dawson says, “but the customer may have it attached to their keys and handle them for years.”

Ultimately, Dawson encourages dealers to sit down with their teams and establish a goal. Ask each team lead how intentional they are in all four approaches and how effectively they perform those methods. What most dealers don’t know, expresses Dawson, is that you can utilize each method while also using the expansion of social media to train your salespeople.”You can train your people to utilize their customer’s social media and broaden your dealers’ advertising methods.” 

Dawson examines the questions dealers should be implementing in order to implement these marketing strategies more effectively. Such as: how many salespeople know how to complete a sale and then broadcast it on their Facebook lives? Or how many know how to illustrate their Jones effect properly? 

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.
Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

Related Articles

Latest Articles

From our Publishing Partners