Marketing Higher-End Products & Services in a Down Economy
According to the Unity Marketing Group, luxury and
high-end consumer spending was down 19.7% in the second quarter of 2008
compared with the same period the previous year. Bad news, most definitely,
for auto dealers who relies on discretionary income. However, there
is a silver lining.
A recent Luxury Institute survey states that "53%
of wealthy consumers use search engines as an essential stop on their
quest for higher-end goods and services."
You can use this information to your competitive advantage.
Follow these tips and you will find that an economic downturn may actually
create opportunities for your business.
- Don't stop advertising. According to MacTech,
advertising in a recessionary market "can skillfully reposition
products and services to take advantage of new buying concerns,
give an advertiser a stable image in a chaotic environment, and
give an advertiser the chance to dominate the advertising media."
- Spend smart. Reduce interruption marketing and
instead focus on measurable relationship-based strategies such as
search marketing, email marketing, newseltters, inventory flyers
and online communities. People in all walks of life are sick and
tired of being shouted at with the same old marketing message.
- Focus on your in-house hidden
goldmine of profits. It cost more money to acquire
a new customer than to create a repeat and existing one. Spend more
time building relationships with current customers. Now’s the perfect
time to go digging for gold!
- Build optimized landing pages for EVERY advertising campaign.
Each ad on Google, Yahoo, and CitySearch should have a dedicated
page to track results. At all costs, avoid sending traffic to your
home page. Instead send visitors to a relevant landing page that
features your special offer. This will improve conversions up to
23%.
- Build trust. Even wealthy consumers need reassurance.
Now is the time to spruce up your website to establish trust and
credibility with your online audience.
- Make sure your dealership website gives consumers the chance
to review and rate products.
- Welcome feedback and opinions in online communities and blobs.
- Post awards, achievements, and legitimate testimonials on your
website
- Don’t dilute your brand. Stay focused and don’t
try to appeal to every segment of the market. Keep your brand synonymous
with luxury and don’t stretch it too thinly across market segments.
You don’t need to appeal to teenagers to be profitable.
- Give affluent customers a reason to buy. Offer
new, innovative services that they can’t get elsewhere. Emphasize
quality and results with your products and services and back up
your brand promise with a guarantee.
Conclusion: In tough economic times there’s a tendency to scale back
marketing spending. However, research shows that a downturn creates
opportunity to accelerate growth faster than your competitors. This
may be the best time to step up your marketing—at least in quality if
not quantity. Get the most out of every marketing dollar spent. When
the economy has stabilized, you’ll be in a stronger, more prominent
position.
Is your marketing budget stretched too thin? Call Auto
Marketing Profits at 86-927-0437 for help.