44% of consumer
say they will use
their car more
often and public
transit less as a
result of COVID-19.
3 million leases will
expire before the
end of 2020.
9 million in-market
consumers are
ready to buy
without strong
loyalty to a specific
brand.
SOURCE: CAPGEMINI, APRIL 2020 SOURCE: IHS MARKIT, JUNE 2020 SOURCE: IHS MARKIT, JUNE 2020
3 Reasons Not to Pump the Brakes on Your
Dealership Marketing
Economic Times of Crisis Create Opportunities
During the 1973 recession, most automakers pulled back on their marketing. Toyota did not.
Instead, the brand focused its marketing messaging on the Corolla's excellent standing in the
government's new fuel mileage standards. By 1976, Toyota became America's top-selling import
car brand.
Chrysler, during the 1975 Super Bowl, launched a new marketing and sales ad aimed at
stimulating auto sales: rebates. While rebates are now table stakes, the concept was so innovative
it made the front page of The New York Times. Customers responded strongly, and the industry
followed suit.
Similarly, today's socioeconomic challenges present opportunities for innovative dealers to meet
evolving customer demand and truly serve their market:
Many dealers' first instinct in tough times is to pump the brakes on their
marketing, cutting one of their larger and more controllable costs.
According to an Automotive News survey in March 2020, 76% of dealers
said they planned to cut marketing budgets this spring and summer.
But if your goal is to sell cars to as many consumers as possible, why
would you stop trying to connect with them to start the sales process? And
if your competitors are backing off from making those connections, why
aren't you capitalizing on their mistakes?
We're sharing three things to remember about marketing in a downturn:
• Crisis creates an opportunity for innovation and differentiation
• Focus on the return on investments (ROI), not upfront costs
• This is the time to amplify your conquest marketing
WHEN TIMES
ARE GOOD,
YOU SHOULD
ADVERTISE.
WHEN TIMES
ARE BAD,
YOU MUST
ADVERTISE.
Bruce Barton, Advertising Executive