A car dealership is one which acts as an intermediary between a car manufacturer and a buyer. Their day-to-day running depends upon various groups of workers. For example, one group might be responsible for the cash transactions of the business, another might be responsible for human resource management, yet when it comes to marketing, the stakes have never been higher, as digitization has upped the ante when it comes to the marketability of a company. And similar to almost every other firm in the world, their business model has become modernized since the dawn of the 21st century.
Traditional marketing, as the name itself suggests, is a more sociable form of advertising; an employee can only achieve their targets if they interact with other people on a regular basis. This conventional form of marketing also involves using tangible items to accomplish routine tasks such as:
- Business cards
- Print ads
- Commercials on TV and radio
It’s not that this business model is too old-fashioned to be competent in today’s time. Many firms around the world are still employing this strategy and running successfully. And all these car dealerships are also netting a hefty profit as well. But by sticking to this standard type of marketing, they are faced with numerous disadvantages as well:
- High labor costs as less usage of technology leads to the employ ability of more people
- Too much outsourcing
- Less chance for growth.
The above third point which signifies less probability of long-term progress is in terms of the car dealership gaining stronger clientele. This is because bigger clients might be turned off by the slow work accomplished by a car dealership relying on less machinery in order to get things done. The faster a car dealership is able to reach the objectives set by their employer, the more chance their company has of expanding.
On the other hand, digital marketing doesn’t often face the afore-mentioned demerit. They run on a tech-orientated ideology. Here are some elements which make up digital marketing:
- Social media
- Online ads.
Why are the above needed? Because they promote a fast-based work environment. If a car dealership relies on print media, say newspaper ads, then there’s a high likelihood of not being found out by a potential employer. Even popular newspapers, such as The Independent and Newsweek, have now gone fully digital.
Ease-of-usage is another factor which leads to car dealerships opting for digital marketing. In the past, marketing employees had to travel to deliver presentations, physically attend meetings, etc. But instead now, owing to modernization, they can complete all these actions from the comfort of their office. Similarly, postal mail has been replaced by e-mail, phone calls by text, etc. This convenience not only makes life easier for employer and employee alike, but work efficiency is improved because of both faster speed of financial exchanges, and decreased operational costs.
Websites are equally a must-have for any business nowadays. A website acts as the face of the business confirming the common saying that first impressions are important. Social media acts as a cost-effective advertising tool as it’s free to make an account on most ultra-popular domains such as Facebook, Twitter, etc. And as the number of people using social media is rising by the millions annually, a car dealership will benefit vastly from a Facebook page or an Instagram account.
Why are terms like Google Ad-sense and Media.net becoming so popular? It’s because these have replaced paper advertising. Another advantage that digital marketing has over traditional marketing is SEO (Search Engine Optimization). This technique is used to rank a website up in search engines. Imagine that an entrepreneur wants to market his dealership in a Middle-Eastern region such as Qatar. Let’s say this dealership has a contract with a car company that has originated from another country, the French automaker, Peugeot.
Now there are two keywords:
- Peugeot dealers
People will most probably be typing a combination of the two words mentioned above into a search engine, and the higher the dealers’ website is ranked in the results, the more chance it has of being discovered by potential customers. Thus, the traditional car dealership cannot survive without digital marketing, especially in the long run.