AUTOMOTIVE ADVERTISING & MARKETING

Overtargeting

Overtargeting is Something to Avoid

JKRAdvertising / Automotive Advertising, Automotive Advertising Advice, JKR Advertising News /

March 12, 2015

Overtargeting is something many advertisers do, and they often don’t get full bang for their advertising buck as a result. Here’s what we mean. Even in these very blogs, we at JKR frequently emphasize the importance of keeping your target audience in mind as you formulate your advertising campaigns. It makes perfect sense; after all, it’s kind of like “fishing where the fish are,” and who wouldn’t want to do that!

Pitfalls of Overtargeting

However, if you are overtargeting – making your advertisements for your target audience and only for your target audience, you lose the chance of picking up any ancillary customers along the way. Think about it; your target audience has spouses; they have siblings; they have parents; they have friends … and so forth. Everyone in these groups could be with the person in your target audience as they see, listen to, or view your ads. You’re making a big mistake if your ads alienate these folks … because you never know who might be in the market for a new or pre-owned car!

So remember, while you certainly want to leave a lasting impression and create a memorable advertisement, it must be able to reach anyone – not just those in your target audience. Whether or not someone is in your target audience, this old adage is very true: Win the heart, and the mind will follow.

Is Your Dealership Overtargeting?

Want to find out if your marketing dollars are being spent efficiently? Do you know if your dealership is overtargeting? There is a way to find out. Contact JKR Advertising & Marketing, and we’ll provide you with a no-strings-attached, FREE Marketing Review. We’ll take a close look at what you (and your competition) are doing, and give you our expert feedback. Call Eric Tigner at (321) 397-0777 today to get things started.

JKR Automotive Advertising: We Move Cars.

Press Categories

Recent Posts

Post-Pandemic Dealer Gross Profits are Down – But They Don’t Have to Stay There!
March 13, 2024
It is no secret that dealer gross profits per vehicle are down sharply in the post-COVID automotive world. According to a recent article in Automotive News, gross profits of the six largest publicly traded dealership groups plunged significantly from Q4 2022 to Q4 2023. One of them was actually down 35% per vehicle!

The article explains: High interest rates, more expensive vehicles and a steadier post-pandemic supply chain continue to soften demand and bring it closer to pre-pandemic levels. Still, new-car buying has remained strong overall …

This means that, while sales volume is similar, overall bottom lines are lower for many dealers due to the reduced gross profits. What about your dealership?

Being Realistic
It’s time to turn the page! The time for dealers to simply be order takers for people willing to pay MSRP for a vehicle (and in some cases more) has passed and dealers have to work hard once again to achieve acceptable gross profits.

Selling a high volume of cars doesn’t control gross profits, no matter how much you wish this was the case. Correct processes and menu pricing – and strict adherence to them – do!

What kind of processes?
∙ Slow down the transaction! Your sales staff has to once again sell the customer on the features and benefits of every new and pre-owned vehicle on your lot.

∙ Your salespeople and managers should devalue the customers’ trade-in value (politely, of course) as much as possible. After all, if the customer expects you to lower your price, shouldn’t you be able to do the same on their trade? Remember, you’ll have to fix it up, put your name on it and resell it to someone else with all the tenacity you would a brand-new car. So make sure you buy it right … because the profit is made when you buy it, not when you sell it!

∙ To that end, management should be ready and willing to leave the desk and do thorough walk-arounds on each trade to ensure the best outcome for the dealership.

The Cure for Low Gross Profits
If you are like a lot of dealers these days, you could use some good news. Here it is: while you may not have the capability to achieve profit margins similar to those you enjoyed during the pandemic, they could likely be improved. JKR’s clients enjoy the benefit of attracting not only more customers, but better ones, too!

If meeting and exceeding your sales goals (and increasing gross profits at the same time) sounds great to you, you need to call us. Don’t settle for reduced gross profits when help is out there to get you closer to where you’d like to be.

Want to know how we do it? Reach out to Senior Partner Richard Brauns (407) 701-4233 or Partner/Vice President Jon Albert (407) 718-2494 today.

JKR Automotive Advertising: We Move Cars.

Read more