As most of us say ‘good riddance’ to 2008, it seems everyone has a heightened sense of awareness going into 2009. In regards to strategy, Dealers are making more careful choices and wiser decisions.  Ambiguity has been replaced with accountability, trust is synonymous with proof, and vendors are being audited.  But above all, the dealers who will survive in 2009 and beyond will be those who fundamentally shift their beliefs about the Internet.

During the housing boom, money was flowing.  It seemed one out of two vehicles on the road had paper plates.  Meanwhile most dealers were still trying to figure out the Internet with many refusing to believe it was a lucrative means of reaching existing and potential customers because..well, they were selling cars.

Also remember, the tech bubble had burst shortly before the housing bubble began…so the theory of the Internet taking over our daily lives was in question.  But what emerged from the tech implosion was a leaner, more viable Internet.  The fat fell off and the Internet was exposed for its most essential offerings - email and search.  And with more data showing Internet usage increasing and car shoppers looking online to start their research, dealers started moving their Internet efforts higher on the priority list.  Yet although dealers were starting to embrace the Internet, they were still unwilling to relinquish their old habits.  According to NADA - in 2005 dealers on average spent $177,992 on newspapers, $72,821on radio, $58,631 on TV, $30,132 on direct mail, and $25,844 on the Internet.  As the old saying goes, “I know my advertising budget is working…I just don’t know which part”.

So now that 2008 has proven that over 90% of people planning to purchase a vehicle start their buying cycle online, what do you plan to do with that information, and are you thinking of reallocating your budgets according to proven user behavior?

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Sell the car first, before you sell yourself.

For decades, car dealerships entered into “Brand Based Marketing” and attempted to build their brands with local advertising selling why the customer should do business with them.  “We’re the mega-volume dealer”, “Family Owned Since 1955″,  “The name you can trust”, and so on.  Heck, the oldest used car salesman joke was - “Ma’am, this car is perfect, the color really matches your eyes!” - it’s what is behind that comical phrase that really demonstrates the difference between marketing your brand vs. marketing your vehicles - let’s explore both.

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Coke Zero may fail, the Coca Cola Company will not.

Most startups go into business thinking they’re defined by one single product. And usually, that turns out disastrous. The reason? Most products fail, and all eventually will.

And when products fail, “one-trick-pony” businesses will shut down. The difference between your business and it’s product can be defined by your relationships, your understanding of your customers needs, and knowing the position and direction you, as a business should be headed.

So how does this relate to your dealership?

Forget “product” as a vehicle - vehicles clearly have succeeded and failed many times over. For this discussion, you the reader, most likely cannot control product (vehicle) development directly. Let’s look at this “product” as your marketing, your management, and your connectivity to your customer.

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