3 Reasons Not to Pump the Brakes on Your Dealership Marketing

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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

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