Automotive Marketing

Our Services

 
"Targeting the least number of Total Households
that buy the largest number of Total Cars."

Every neighborhood, in every zip code, buy your cars at identifiable rates.
Some buy more, some buy less, some don't buy at all.

The basic trade area of the average metropolitan auto dealership today consists of the 15 zip codes around the physical location of the dealership. These 15 zip codes will produce approximately 85% of all sales . . . new cars, used cars and services. The other 15% of sales comes from zip codes outside this area and sales are so fragmented by zip codes they are very difficult to manage because of inconsistent sales production. It's a real easy calculation to make simply by adding up sales by zip code. From a marketing standpoint however, zip codes are not all the same size and consumers in those zip codes don't all buy products and services equally. With marketing costs what they are today, marketing by zip code is no longer the most cost effective or most productive marketing technique.

Keeping track of every single household, one household at a time.
Spend fewer marketing dollars on households the can't & won't buy your cars.

As far as sales are concerned, the marketplace consists of only 2 types of households. One type is  "Customer Households"  and the other type is "Non-Customer Households". If you intend to sell more cars, knowing the status of every single household is mandatory. Managed Marketing™ does exactly that. Our tracking and sales measuring process knows the exact status of any household, at any time, day after day, month after month. That's the incredible beauty of Managed Marketing™. You get to pick the exact households where you WANT your promotion to go and the exact households where you DON'T WANT your promotion to go. Spending more promotional dollars on households that can't, don't and won't buy your cars is not going to sell more cars. The primary function of any quality promotion is to generate a "consistent flow of new customers". Managed Marketing™ is what keeps track of what the market is buying and wants to buy.

With our Customer/Non-Customer separation feature shown below, you can focus on generating new business in households next door and across the street from business you already have at a faster and cheaper rate.

The illustration shown above graphically demonstrates what your household audience might look like if it were separated by customers and non-customers. By targeting non-customer households in neighborhoods known to buy your cars at the highest rates, you have very little to lose and a lot to gain. On average, 50 to 80% of dealership sales originate from households that own competitive makes and models of cars. If a dealer markets primarily to households that own the makes and models sold by the dealership, the dealership omits the majority percentage of buyers from solicitation. Unlike any other form of promotional activity, single piece direct mail offers the flexibility to control which households actually get the  promotional message and controls that the message actually gets seen when the message comes out of the mail box. When a household resident pulls their mail out of the mail box, a decision has to be made whether to keep your mail or throw it away. You have an average of 1.3 seconds to get their attention. After that, you're a dinosaur. Since we've already done our research, we know that the Non-Customer households in this audience can afford to buy what you want to sell. What is unknown is do they need and want your product or service today. Those 2 factors are determined by your rate of response. As we mentioned earlier, the marketer can not create a market for a product or service where one does not exist.

NEWSPAPER ADVERTISING
5 out of 6 households don't subscribe to, get or read a newspaper.

Newspaper advertising has been the staple of the automotive marketing process for decades. But there's a whole lot of gaps in the newspaper marketing process today. One big gap is the households that actually get . . . or don't get a newspaper. On average, 5 out of 6 households don't subscribe to, get or read a newspaper. Some areas are higher. Newspaper advertising has been steadily declining over the last 5 years.

In some cities, like Dallas, newspaper advertising sales and profits have declined so far it began to effect the stock price and profits of the parent company, BELO Corp. On October 2nd, 2007 BELO corporation decided to split The Dallas Morning News from the parent company and put it into it's own corporation . . . A H BELO Corp. The split was the direct result of sagging profits and poor stock performance by BELO Corp over the last several years. More and more newspaper advertisers are actively seeking alternative sources of advertising because of poor performance of their newspaper ad programs.

Listed below are the stock value declines of
newspapers in major cities around the country.
Company
12/31/04
12/31/05
Percent
of Change
Two year
Peak
Decline from
Peak
Gannett
$82/share
$61/share
-25%
90 (4/04)
-33%
Tribune
42
30
-30%
53 (2/04)
-43%
Knight Ridder
67
63
-6%
80 (5/04)
-21%
New York Times
40
26
-35%
49 (2/04)
-47%
Dow Jones
43
35
-17
52 (2/04)
-25%
E. W. Scripts
48
48
even
54 (5/04)
-11%
McClatchy
72
59
-18%
75 (4/05)
-21%
Washington Post
983
765
-22%
983 (1/05)
-22%
Lee
46
37
-20%
50 (6/04)
-26%
Journal
18
14
-22%
20 (3/04)
-30%
Journal Register
19
15
-20%
22 (3/04)
-32%
Media General
65
51
-22%
72 (2/04)
-30%
Belo Corp
Dallas
26
21
-19%
30 (4/04)
-30%
Source: Yahoo finance, Merrill Lynch research. Stock values are rounded to whole
dollars and percentage change calculated on that basis.

That makes the direct mail with Managed Marketing™ a tremendous asset to any marketing mix in the auto sales business. Unlike any other marketing tool, Managed Marketing™ accounts for every household, on every street. Every time you execute a mailing, households are selected for targeting in neighborhoods based on how the neighborhood as a whole buy your various makes and models of cars. 2 events take place that you can't get with newspaper or broadcast media. First, you get to control that every household that gets your ad, actually sees it when it comes out of the mail box. And second, you want your ad dollars to go further and sell more cars. With our Managed Marketing™ product, you get exactly that. The least number of households targeted that buy the largest numbers of your total cars.

YOUR INFORMATION SYSTEMS
Information worth collecting and storing for long term use.

"The most valuable commodity I know of is information" said Michael Douglas (as Gordon Gekko) in the movie WALL STREET. How right he was. Now that we're in the computer age, there's actually so much information flying around out there, it's becoming increasingly more difficult to know what's really valuable and what's not. Here's where we sort it all out.

Step 1 - The Physical Address
The Cornerstone of Marketing Success.

Out of all the information collected and stored in dealership computers, the most important piece of information to collect and maintain correctly and accurately is the physical address of both prospects and customers. The physical address, whether it be for a prospect or customer, is the one piece of collectable information that almost never changes, never moves or never dies. The address is the single most important piece of collectable information. Every other piece of information collected on buyers, prospects and sales will eventually hinge on the address. It will be the cornerstone for marketing and promotional programs of everything that is measured, computed or calculated for any product or service you intend to sell . . . now or in the future. If you wish to build your information system around any other piece of criteria, your maintenance cost long term will be astronomical by comparison. Unlike any other piece of information attached to the record, it's one of the few pieces of information that can be quantified to other information in other files.

Step 2 - The Zip Code

The second most important piece of information attached to the record is the postal zip code. Since 1966 when the US Postal Service implemented the zip code system to speed the delivery of mail, it has been one of the most widely used 5 digit numbers to quantify lists that there is. With these 2 pieces of information you have the beginning pieces of a database system.

Step 3 - The Trade-In

The third piece of information you'll need is trade-in information for new cars actually purchased by the customer and actually delivered. This tells a lot about the dealership product demand. First and foremost, the dealership needs to know how many trades it's taking in for same make/ same model sales and how many trades are competitive makes and models. This is very important. The average dealership trades for 65 to 85% competitive makes and models. With this in mind, there needs to be some kind of marketing effort directed to households that do not own makes of vehicles sold by the dealership. A mailing list of non owner households living next door and across the street from owner households in neighborhoods that produce sales at high rates would be the most productive mailing list for generating NEW sales for the dealership.

With just 3 pieces of information, you could build the most accurate and effective database system you could possibly conceive for generating a constant flow of new business. Now, it just has to be managed and maintained.

OUR CUSTOM SOFTWARE
What our software does and why we sweat the details.

Our software monitors automotive make and model density by owner household in each individual neighborhood so we have more flexible marketing options when it comes time to spend promotional dollars. We want to spend our marketing dollars on the least number of households that buy the largest quantity of cars. By measuring owner households in each individual neighborhood, we are able to identify which neighborhoods actually buy the largest quantity of the make and model of car being measured in the least number of total households. Once we know which neighborhoods are the high performers, we are able the make a custom mailing list of households next door and across the street based on how the neighborhoods actually buy each make or even each model of products our clients market. The mailing list would then consist of the least number of non-customer households (or a combination of customers and non-customers) in neighborhoods that already buy, pay for and take delivery of the largest quantity of product or service.

In our sample zip code shown below, we have sub-divided the zip code out into 100 separate neighborhoods. If all of the neighborhoods in the zip code bought cars equally, you could just send an ad to every household on every street in the zip code and know you made the right marketing decision. But neighborhoods don't buy any products or any services equally.

Therefore neighborhoods get prioritized based on the number of units already purchased . . . ACTUALLY PURCHASED . . . not ASSUMED PURCHASED.

Like every other product or service, neighborhoods in the zip code don't buy cars equally. Here's where Managed Marketing™ enters the marketing mix. With our Managed Marketing™ product, you can measure the demand for each make and each model of car in each neighborhood and adjust media targeting according to which neighborhoods actually buy your cars. You would also be able to identify where you spend promotional advertising dollars on neighborhoods that don't buy cars from you and eliminate those from the budget. Shown in blue on the chart below are the top twelve 3 digit neighborhood numbers that actually buy the largest volume of "Luxury SUV's" for the zip code 75093 in Plano Texas.

SAMPLE ZIP CODE NEIGHBORHOOD MAP
Measuring & monitoring the 100 neighborhoods in the zip
code based on how each neighborhood buys your cars.
 
001
002
003
004
005
006
007
008
009
010
011
012
013
014
015
016
017
018
019
020
021
022
023
024
025
026
027
028
029
030
031
032
033
034
035
036
037
038
039
040
041
042
043
044
045
046
047
048
049
050
051
052
053
054
055
056
057
058
059
060
061
062
063
064
065
066
067
068
069
070
071
072
073
074
075
076
077
078
079
080
081
082
083
084
085
086
087
088
089
090
091
092
093
094
095
096
097
098
099
100

Shown below is an actual zip code map segmented by neighborhood.

HOW DO YOU QUANTIFY SALES IN RELATIONSHIP TO AD EXPENDITURES?
What we measure and how we measure it.

Target DFW is the only firm in the DFW metroplex that can quantify sales in relationship to the metroplex neighborhoods based on how consumers actually buy cars. Our clients spend fewer promotional dollars on households that can't buy, don't buy and won't buy because our database systems have already measured sales and ownership to pre identify who actually buys, actually pays for and actually takes delivery of product.

The chart shown below demonstrates how sales are measured inside the zip code by neighborhood. The primary objective the measuring process is to convert all aspects of the sales and marketing process to a mathematical equation. Under the column "Total Luxury SUV Owners" we use actual owner data for the Lincoln Navigator and the Cadillac Escalade. The objective was to define the neighborhoods where the largest demand for a Luxury SUV existed and we wanted to be able to identify the household addresses in the neighborhood that had not purchased a Luxury SUV at the time this data was compiled. Now we have a complete mailing list of households that have not purchased a Luxury SUV in neighborhoods know to buy Luxury SUV products at the highest rate. The process of keeping track of neighborhoods, households and how to rank neighborhoods is based on how many households in the neighborhood actually buy your products or services.

Example:

. . . why does the neighborhood on Line #1 of the example below have a higher percentage of total households as Owner Households than the neighborhood on Line #50? (On line #1, 19% of all households own a Luxury SUV. On line #50 only 4.7% of all households own a Luxury SUV.) The short answer is because the demand for the product or service is greater for the Line #1 neighborhood than it is for Line #50 neighborhood. Wouldn't you like to know where the demand for your products or services are before you spend your ad dollars? WE CAN MAKE THAT HAPPEN!

SAMPLE REPORT - ACTUAL SALES DATA FROM 17 METRO ZIP CODES IN THE DALLAS TX SALES UNIVERSE.
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
Column 7
Column 8
Column 9
Column 10
NEIGH
BOR-
HOOD
RANKING
#
NEIGH-
BOR-
HOOD
#
ZIP
CODE
TYPE OF
HOUSE-
HOLD
ECO-
NOMIC
LEVEL
CITY
TOTAL
HOUSE-
HOLDS
PROSPECT
HOUSE-
HOLDS
TOTAL
LUXURY
SUV
OWNERS
% OF
TOTAL
H/HOLDS
BUYING
NOW
1
010
75034
SF
A
FRISCO
57
46
11
0.19298
2
061
75093
SF
A
PLANO
99
80
19
0.19192
3
009
75093
SF
B
PLANO
24
21
3
012500
4
076
75093
SF
A
PLANO
66
59
7
0.10606
5
075
75093
SF
A
PLANO
89
80
9
0.10112
6
081
75093
SF
A
PLANO
245
221
24
0.09796
7
004
75093
SF
C
PLANO
124
112
12
0.09677
8
041
75024
SF
C
PLANO
135
122
13
0.09630
9
004
75070
SF
B
MCKINNEY
240
217
23
0.09583
10
085
75093
SF
D
PLANO
104
95
9
0.08654
11
021
75093
SF
B
PLANO
105
96
9
0.08571
12
012
75093
SF
A
PLANO
60
55
5
0.08333
13
018
75013
SF
B
ALLEN
172
158
14
0.08140
14
023
75024
SF
A
PLANO
429
429
37
0.07940
15
022
75093
SF
C
PLANO
273
252
21
0.07692
16
057
75093
SF
B
PLANO
341
315
26
0.07625
17
040
75025
SF
B
PLANO
53
49
41
0.07547
18
001
75034
SF
A
FRISCO
698
646
52
0.07450
19
011
75093
SF
A
PLANO
27
25
2
0.07407
20
079
75093
SF
A
PLANO
231
214
17
0.07359
21
309
75070
SF
A
MCKINNEY
57
53
4
0.07018
22
019
75093
SF
B
PLANO
404
376
28
0.06931
23
093
75093
SF
D
PLANO
30
28
2
0.06667
24
068
75093
SF
B
PLANO
45
42
3
0.06667
25
003
75013
SF
B
ALLEN
15
14
1
0.06667
26
053
75093
SF
A
PLANO
62
58
4
0.06452
27
070
75093
GARDEN
D
PLANO
47
44
3
0.06383
28
072
75093
SF
A
PLANO
32
30
2
0.06250
29
001
75225
SF
A
DALLAS
145
136
9
0.06207
30
010
75070
SF
C
MCKINNEY
97
91
6
0.06186
31
023
75034
SF
C
FRISCO
49
46
3
0.06122
32
016
75034
SF
E
FRISCO
115
108
7
0.06087
33
016
75093
SF
C
PLANO
362
340
22
0.06077
34
056
75025
SF
B
PLANO
183
172
11
0.06011
35
007
75034
SF
C
FRISCO
1065
1001
64
0.06009
36
019
75225
SF
A
DALLAS
342
322
20
0.05848
37
020
75070
SF
D
MCKINNEY
229
216
13
0.05677
38
015
75225
SF
B
DALLAS
266
251
15
0.05639
39
012
75240
SF
D
DALLAS
125
118
7
0.05600
40
005
75070
SF
C
MCKINNEY
90
85
5
0.05556
41
017
75034
SF
B
FRISCO
684
646
38
005556
42
060
75093
SF
A
PLANO
129
122
7
0.05426
43
077
75093
SF
C
PLANO
185
175
10
0.05405
44
028
75230
SF
B
DALLAS
189
179
10
0.05291
45
029
75093
SF
C
PLANO
288
273
15
0.05208
46
046
75034
SF
C
FRISCO
136
129
7
0.05147
47
003
75252
SF
A
DALLAS
40
38
2
0.05000
48
055
75093
SF
B
PLANO
370
352
18
0.04865
49
001
75248
SF
A
DALLAS
83
79
4
0.04819
50
071
75093
SF
A
PLANO
188
179
9
0.04787

MARKETING, ADVERTISING & PROMOTION
What works . . . what doesn't . . . and how come.

TEST, TEST, TEST and TEST again. Every promotion is a test, and every test has monitored results. If you monitor your results, no matter how many promotions you run, you will always have a ranking order to every promotion you ever ran. Looking back on all your promotions, do you know which one ranked #1 or which one ranked #2. Now that a process exists to target the households that actually buy, actually pay for and actually take delivery of your cars, what next? The next step is to send a message to the households that they want to hear. If you send the wrong message to the right households, you can expect to sell nothing. If you send the right message to the wrong households, you can expect the same result.

THE RIGHT MESSAGE

The 2 most successful words in the advertising business are FREE and SAVE. If you expect some kind of performance from your target audience, it would be wise to use one or the other . . . or even both. The promotions should also be designed for the consumer to bring your ad back to you so you can track performance. Since advertising is in a constant state of refinement, you are always looking for the ability to measure performance of both the message and the target audience.

WELL, THAT DIDN'T WORK, LETS TRY SOMETHING ELSE.
The most famous phrase in the advertising business.

If you target the right household audience known to consistently buy with a message the audience wants to hear and they actually see the message when it comes out of the mail box, you are going to sell product. It's real simple. When any of your promotional ad programs don't sell product, you should know why the campaign didn't sell product. There are 3 key variables to every advertising campaign that are easily controlled to make the campaign successful.

  1. Every ad needs to actually get seen by every targeted household.

  2. Every ad needs to communicate the message buyers want to hear.

  3. Every ad needs to target neighborhoods that produce high sales rates.

Advertising in many cases gets placed because "the competitor does it" or "we've been advertising there for years". If for what ever reason your advertising campaigns are not measurably selling product, it's time for a change. 2 prime examples of shifts in advertising placement are newspaper and yellow pages. Both are looking for ways to divest themselves of those products in exchange for more profitable ventures.

The reality about the marketplace is that every neighborhood buys every product and every service differently. Our data systems measure and identify how much of your products or services each neighborhood actually buys. We don't create markets for products or services . . . our targeting process identifies where the actual market for your product or service exists and then we target those neighborhoods. We're looking for new customers for your business in neighborhoods that already produce business at the highest rate!

We're different and we're better.

We're different because we give our clients more marketing flexibility.

  • For clients that want to measure which neighborhoods actually produce sales at the highest rates . . . Target DFW can identify where they are.

  • For clients that want to extract existing customers from marketing so they don't give away promotional marketing dollars to business they already have . . . Target DFW can extract them from your promotions.

  • Target DFW can measure sales performance by streets and neighborhoods so you know for sure that you are marketing to the right audience.

  • If clients want to control exactly which households get targeted . . . Target DFW can give you that control. . . by neighborhood, by street and by household.

  • Target DFW can actually get every message seen at the household level when your ad gets to the household.

  • Target DFW can measure how the consumer perceives the message you send and how you can increase the value of your ad message at the household level.

    Target DFW counts houses, tracks sales, manages customer flow and reports market performance to clients. Unlike regular advertising products that sell space or time, Target DFW sells "Household Management™". We measure sales by neighborhood, by street and by customer to provide maximum marketing flexibility before you spend your promotional ad dollars. Now you can make sure you are spending your dollars on the right target audience before you spend . . . NEIGHBORHOODS THAT ACTUALLY BUY!

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    Plano, TX. 75075
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