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Retail Marketing - Automotive Aftercare

Harnessing the Power of Integrated Marketing

CommunicationsChapter 1

Tyres • Exhausts • Batteries • Shock Absorbers • Servicing

By GARY POTTER

HELP!!“It’s all jargon!!”

What’s it all mean?

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TACTICAL

STRATEGICSOCIALBRANDING

SEOOUTSIDETHE BOX

ROI

TARGET

10CM X 9COLSINTEGRATED

PLANNINGROP

MEDIA

?What is “Marketing”?

Maximising profitability!

Marketing is about knowing the market,

selling the right product or service, creating a

desire for that product or service, and letting the

right people know that you provide it.

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Caution - be careful of the old adage -

‘If you build a better mousetrap, people will

beat a path to your door!’

Not entirely true! You might have the best mousetrap in the world but if people don’t know about it - there will be no

beating at your door!

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So we use ‘Marketing’ to lead people to your door.

To kick off, let’s take a look at Integrated Marketing

Communications

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Integrated Marketing Communications

More marketing jargon!

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Trouble is, there’s no other way of describing it

in fewer words.A short story will help to explain.

In 2010...

Dave Brailsford, the newly appointed Team Sky Coach improved every tiny thing by 1 percent and here’s

what happenedBy JAMES CLEAR

In 2010, Dave Brailsford faced a tough job.No British cyclist had ever won the Tour de France, but as the new

General Manager and Performance Director for Team Sky (Great Britain’s

professional cycling team), Brailsford was asked to change that.

His approach was simple.

Brailsford believed in a concept that he referred to as the “aggregation of

marginal gains.” He explained it as “the 1 percent margin for improvement

in everything you do.” His belief was that if you improved every area related to cycling by just 1 percent, then those

small gains would add up to remarkable improvement.

They started by optimizing the things you might expect: the nutrition of riders, their weekly training program, the

ergonomics of the bike seat, and the weight of the tyres.

But Brailsford and his team didn’t stop there. They searched for 1 percent improvements in tiny areas that were

overlooked by almost everyone else: discovering the pillow that offered the best sleep and taking it with them to

hotels, testing for the most effective type of massage gel, and teaching riders the best way to wash their hands to

avoid infection. They searched for 1 percent improvements everywhere.

Brailsford believed that if they could successfully execute this strategy, then Team Sky would be in a position to win

the Tour de France in five years time.

He was wrong. They won it in three years.

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Why tell this story?

It is a great example

of how effective ‘Integrated Marketing’ works

throughout any business.

The same principles can be applied to your tyre, exhaust, and car servicing business.

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By applying Dave Brailsford’s theory of:

“Aggregated Marginal Gains”(sorry for the jargon)

...and taking a look at every component of your

business to see how each of these areas can

be improved, the overall effect could be a big

improvement in the performance of your business.

It doesn’t stop there!

‘Integrated Marketing’ also means that each of those

components must work with one another.

What are the components?Some examples:

The Physical:Location

The BuildingCar Park

EquipmentWorkshopProducts

StaffReception

Point of SaleVehicles

The Emotional:Appearance of the Building

PricingPress Advertising

PostersLiterature

Promotional OffersWebsite

PRCustomer Service

Training

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Areas of your business which need to work with one another in a

complimentary way.

Keep them well maintained and well co-ordinated; the net result: effective and

powerful ‘Marketing’.

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This fundamental principle will have a direct

influence on the reasons why customers will come to

your door.

In preference to one of your competitors.

A good Marketing Manager will bring all the components of a business together in a coherent and disciplined way, including

their ‘look’, their ‘feel’ as well as their functional qualities.

One of the clearest methods of illustrating this within

any business, is the ‘Marketing Wheel’:

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SALE

S

M

ARKETING PRODUCTION FINA

NC

E HR PURCHASING D

ISTRIBU

TIO

N

INT

EGRA

TED MARKETING CO

MM

UN

ICATIONS

YourCompany

ExhibitionConference

Seminar

EventsSponsorshipPromotions

Display& Site Direct

Mail

InternetSocial Media

Mass mediaTV & Radio

ProductDesign

Manufacture

MarketResearch

PrintInternal &External

PRThe Culture

SalesCustomerService &Training

NewspaperAvertising

Pricing

StrategyBranding &Positioning

Each of the coloured segments represents an element or area within your tyre and exhaust business.

However, some of these circles can have more of an influence on your customer’s than others.

From the top, working clockwise, the most effective are:

Display & Site, Internet & Social Media, Print, Internal & External PR, Sales - Customer Service

& Training, Newspaper Advertising, Pricing, Strategy & Branding.

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Let’s stop there for a moment!

We’re going to introduce a new subject,

‘Market Research’:

Nielsen are a highly regarded Market Research Company who are experts on Consumer Trends. Their research

includes retail, media, and consumer reports to support business investment decisions. Nielsen provide a source for

consumer goods retail sales data and market insights.

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The type of informationthey provide is extremely useful:

8 GLOBAL TRUST IN ADVERTISING AND BRAND MESSAGES

Recommendations from people I know 84% 84% --

Consumer opinions posted online 70% 68% 2%

Ads on TV 68% 62% 6%

Branded websites 67% 69% -2%

Ads in newspapers 65% 61% 4%

Emails I signed up for 65% 56% 9%

Editorial content such as newspaper articles 64% 67%- 3%

Ads in magazines 62% 60% 2%

Brand sponsorships 60% 61% -1%

TV program product placements 58% 55% 3%

Billboards and other outdoor advertising 57% 57% --

Ads served in search engine results 57% 48% 9%

Ads on radio 55% 57% -2%

Ads on social networks 55% 48% 7%

Ads before movies 53% 56% -3%

Online video ads 52% 48% 4%

Online banner ads 50% 42% 8%

Display ads on mobile devices 49% 45% 4%

Text ads on mobile phones 45% 37%8 %

Source: Nielsen Global Survey of Trust in Advertising, Q1 201 3

FORM OF ADVERTISING TAKE ACTION TRUSTDIFFERENCE

ACTION VS. TRUST

TO WHAT EXTENT DO CUSTOMERS TAKE ACTION ONTHE FOLLOWING FORMS OF ADVERTISING?

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There are items on Nielsen’s top 20 list of advertising influences which directly relate to the ‘Marketing Wheel’. As a quick look, take the top 11 advertising influencers:

(We’ve used the Top 11 because Billboards and Posters are important in the tyre and exhaust industry).

1. Recommendation 8 Customer service/training Internal PR and Culture

2. Consumer opinions posted online 8 The internet/websites

3. Ads on TV 8 TV Advertising

4. Branded websites 8 Website design

5. Ads in newspapers 8 Newspaper advertising

6. Emails signed up for 8 The internet

7. Editorial content/newspaper articles 8 External PR

8. Ads in magazines 8 Newspaper advertising

9. Brand sponsorship 8 Events/sponsorship

10. TV Programme product placements 8 TV Advertising

11. Billboards and outdoor advertising 8 Display and site

Nielsen Top 11 Influencers On the Marketing Wheel as:

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It’s not all about the internet, websites, or Search Engine

Optimisation!

In addition to the internet there are many other influences that affect the reason

why customers will visit your business to make a purchase.

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For example, take ‘Recommendation’!On page 35, this is listed as Nielsen’s

top reason why customers come to your business.

Apply the principles of‘Aggregated Marginal Gains’ (i.e. improve

‘Recommendation’ by 1%) and you’ll achieve an improvement in your sales.

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How can we improve ‘Recommendation’!i.e. How do we encourage existing customers to ‘Recommend’ your

products and services to their friends and relatives?

‘Recommendation’!By providing excellent customer service, good telephone manner, helpful staff,

quality products, high standards of fitment, fair price, comfortable and

clean environment. At ‘Point of Sale’ a ‘Recommend a Friend’ voucher, and maybe

a follow up phone call a few days later?

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Are your staff complying?You could build the best website in

the world, or spend huge amounts on press advertising, but if your staff aren’t fulfilling the basic principles of customer

care, there’s a chance that you’re existing customers will not come back or recommend you to one of their friends.

Apply the principles of

‘Aggregated Marginal Gains’, improve your ‘Customer Service’ by at

least 1% and you’re on course to achieving greater sales and profitability.

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After using ‘Recomendation’ as the first example of advertising influences, we’re

going to finish here.

In the next Chapter we’ll be looking at ‘Recommendation’ in more depth, using

case studies or ‘Recommend a Friend’ vouchers, and exploring ideas in each

of the advertising elements listed in the Nielsen Report which relate specifically to

automotive aftercare.

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To make sure you receive the next Chapter, email to the address below and we’ll send when ready.

CONTACT:

Email: gary@sizcreate.freeserve.co.uk

Office Tel: 0121 569 7785

Mobile: 07802 437901

Gary PotterSizzleUnits 5 & 6 Park Lane Trading EstateOldburyWest MidlandsB69 4JX

Retail Marketing - Automotive Aftercare

Harnessing the Power of Integrated Marketing

CommunicationsChapter 2

Tyres • Exhausts • Batteries • Shock Absorbers • Servicing

By GARY POTTER