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To: Directors, Brand Managers, Dealer Principals, Sales Managers
Cc Steve Baynes, Jason Lewis, Caira Day, Helen Redfern, Katy Smart,
From: Jeremy Cuff, Claire Ellis & Steve Mawby
Date: 18th November 2011
RE: GROUP MARKETING TOPICS
Please be aware of the company standpoint with relation to the following topics;
1) CUSTOMER LETTERS
Please ensure that all customer letters are either drafted by or approved by the Marketing Department prior to sending out to customers, which should subsequently be sent via the Direct Marketing Department.
This is to ensure that we communicate in a clear, professional and grammatically correct way on each and every occasion.
This includes letters that can be generated from showroom management systems such as Dealer Web, Contact Advantage and so on.
If any department requires help with letters, please contact a member of the Marketing Team for assistance.
Also, assistance and guidance can be given for professional responses to customers via email.
2) SELF DESIGNED CAMPAIGNS
There is no need for any member of staff or department to “self design” campaign fliers, posters, latest offers etc using programmes such as Word and Powerpoint.
When a department requires a poster, local print flier, form or any other customer facing item, please provide a brief to a member of the Marketing Team, who will organise its production.
This will ensure that the required item is produced in the relevant franchise’s corporate image, using approved fonts and imagery.
3) LOSS LEADERS & SIMILAR “SPECIAL” PROMOTIONS
Though the company is not averse to the idea of “loss leaders” or “special deals” as a point of principal, it is important that all the factors are considered carefully before embarking on such activities. Here’s some valid points to take into account;
The Company’s Reputation
The company has invested considerable sums of money in providing the facilities and infrastructure required to operate the various franchises across the group.
Consider carefully the reputation of the company (with both the customer and the relevant franchise) if we stray outside of the normal franchise parameters, such as the abandoning of franchise used car programmes that form the cornerstones of our way of going to market.
Also, consider how any special promotion will “work” in practice to ensure that customers don’t feel misled or discriminated against in any way when they enquire.
Availability of the Product Offered
Though “up-selling” is a coveted, useful and necessary skill among Sales Teams, any company offering a product or service at a certain price must be able to sell that product or service at the price advertised if the customer demands it.
The following story is a recent one from AM Magazine about the Lookers Group, who attracted the attention of the Advertising Standards Authority for a campaign that they ran, purporting to offer Zafira’s for £4,999.
In our group, this type of activity is to be avoided at all costs;
21/09/2011
Warning Given to Dealer for Advertising Cars Not in Stock
Dealers have been warned to ensure they have adequate stocking documentation before advertising cars to consumers after Lookershad its knuckles rapped by the advertising watchdog.
The AM100 top five dealer group was criticised for “misleading” advertisements which promoted vehicles for sale which were not actually in stock.
Two press adverts in the Burton Mail on May 20 and 27 this year promised 2008 Vauxhall Zafira 1.6 Exclusives in a choice of colours at only £4,999.
The Advertising Standards Authority received a complaint from a visitor to the dealership, who challenged the availability of the Vauxhall Zafira at £4,999, because, on visiting the dealership, he was told the advertised car had been sold and was offered a more expensive alternative. He maintained that this had also happened on a previous occasion.
Marketing agency DPP, on behalf of Lookers, said that the first ad was based on two cars that they had ordered from Northern Ireland, through a supplier, and that both vehicles were re-advertised the following week, as they had not received any retail enquiries following the first ad.
It stated that, after the orders had subsequently been placed, the supplier advised Lookers that they were withdrawing both vehicles from sale, due to un-satisfactory condition reports produced prior to them despatching them to Lookers.
It stated that it was too late to withdraw the ads, and added that it was very unusual for a supplier to withdraw one car, and two was even more unusual.
No evidence of alternative models
In upholding the complaint, the ASA noted it had not seen evidence that Lookers had taken steps to seek alternative models from any other suppliers, nor evidence that showed the advertised Vauxhall Zafiras had been in stock, either in Northern Ireland or in Burton.
Nor had it seen evidence that the vehicles had been withdrawn from sale, due to unsatisfactory condition reports, as DPP had suggested.
Lookers also failed to explain why the complainant had actually been told the £4,999 Zafira had been sold already.
“Because we had not seen documentary evidence in support of the claim ‘Vauxhall Zafira at £4999’, we concluded that the ad was misleading,” said the ASA's statement
“The ad must not appear again in its current form. We told the advertisers to ensure they had sufficient documentation to support the availability of a featured model before advertising that model in future.”
Is It Too Good To Be True?
Whilst it is essential that we remain competitive in what is a very challenging marketplace, we must be careful to avoid the idea that “wholesaling” our vehicle stocks and services, or stripping away our normal franchise operating standards is the answer to everything.
If we see offers in the media such as the Lookers campaign described above, consider that it might not be quite what it seems, or that that they’re only writing such business in order to release cashflow. Perhaps the campaign might have generated some enquiries, but did it result in happy customers? Not everything might be as it appears for afar.
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Please share this communication with relevant staff who regularly get involved with aspects of marketing.
With best regards
Jeremy, Claire & Morph
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