ralph paglia presentation to honda zone 9 business meeting

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Agenda 7:30 am – 8:45 am Breakfast 9:00 am – 9:10 am Welcome & Opening Remarks 9:10 am – 9:40 am Steve Jaros – Assistant VP/Eastern Region 9:40 am – 10:10 am Christan Miller – Zone Sales Manager 10:10 am – 10:35 am Jeff Williams – Sr. Mgr/ Sales & Marketing (AHFC) 10:35 am – 10:40 am “The Honda Guitar Heroes” 10:40 am – 11:00 am BREAK 11:00 am – 11:25 am Ron Lybrook – Assistant VP/Parts & Service 11:25 am – 12:15 pm Gerry Rubin – Co-Chairman (RPA) 12:15 pm – 12:25 pm Peggy Proko – Zone 9 NDAB Chair 12:25 pm – 12:30 pm Christan Miller – Zone Sales Manager 12:30 pm – 1:30 pm Lunch 1:30 pm - 3:00 pm Ralph Paglia – VP Tier 10 Marketing Integrated Marketing – Civic Launch 3:00 pm – 3:15 pm BREAK 3:15 pm - 3:30 pm Gerard Harrington – Zone Manager PI 3:30 pm – 3:50 pm Randy Smith – National Manager PI

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Ralph Paglia Presentation to Honda Zone 9 business meeting

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Page 1: Ralph Paglia Presentation to Honda Zone 9 business meeting

Agenda7:30 am – 8:45 am Breakfast9:00 am – 9:10 am Welcome & Opening Remarks9:10 am – 9:40 am Steve Jaros – Assistant VP/Eastern

Region9:40 am – 10:10 am Christan Miller – Zone Sales Manager10:10 am – 10:35 am Jeff Williams – Sr. Mgr/ Sales &

Marketing (AHFC)10:35 am – 10:40 am “The Honda Guitar Heroes”10:40 am – 11:00 am BREAK11:00 am – 11:25 am Ron Lybrook – Assistant VP/Parts &

Service11:25 am – 12:15 pm Gerry Rubin – Co-Chairman

(RPA)12:15 pm – 12:25 pmPeggy Proko – Zone 9 NDAB Chair12:25 pm – 12:30 pm Christan Miller – Zone Sales Manager12:30 pm – 1:30 pm Lunch 1:30 pm - 3:00 pm Ralph Paglia – VP Tier 10 Marketing

Integrated Marketing – Civic Launch 3:00 pm – 3:15 pm BREAK 3:15 pm - 3:30 pm Gerard Harrington – Zone Manager PI 3:30 pm – 3:50 pm Randy Smith – National Manager PI 3:50 pm – 4:00 pm Close

Page 2: Ralph Paglia Presentation to Honda Zone 9 business meeting

Ralph PagliaVice President

Tier 10 [email protected]

www.Tier10Marketing.comwww.ADMPC.com

Page 3: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Nationally recognized speaker and author on Automotive Digital Marketing, Advertising, Lead Management and CRM Practices

• Led team that generated and managed 144,000+ leads at a single-point Phoenix dealer in 2 years

• Managed dealership sales team that delivered 4,000+ vehicles to Internet Leads and website phone calls in 2006

• 20+ year background in developing Integrated Marketing strategies and lead management implementations for dealers and car companies

• Managed first retail automotive pilot program for Google Audio while in beta testing at Courtesy Chevrolet in 2005, 2006 and 2007

• Started generating Internet leads in 1986 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in San Diego

• Reynolds Consulting/Cyber Car Catalyst of the Year in 2001

• AAISP/Digital Dealer Magazine Internet Sales Manager of Year 2006

• Digital Advertising Program Director at ADP Dealer Services

Ralph Paglia

Page 4: Ralph Paglia Presentation to Honda Zone 9 business meeting

Integrated Marketing Process1. Market ResearchUse market research to identify consumers that have the highest statistical probability of doing business with your dealership. Tier 10 uses the manufacturer’s research, Polk Market data and the dealer’s historic sales and service trends to plan which customers to target in the future.

Page 5: Ralph Paglia Presentation to Honda Zone 9 business meeting

2. Traditional AdvertisingTraditional advertising on TV, radio and print is expensive in New York, like other major metro markets. As a result, Paragon shifted a lot of their traditional ad budget to more targeted marketing that generates better returns. However, since Latinos make up half of Paragon’s market, they have leveraged some good buys on Spanish radio, as well as, print ads in the New York Times where they include QR technology, a barcode that links consumers’ mobile phones to Paragon’s website where they can learn more about the offer and contact the dealership

Page 6: Ralph Paglia Presentation to Honda Zone 9 business meeting

3. Online MarketingOver 90% of Honda consumers use the web to shop so Paragon implemented an in-depth strategy for search engine optimization and marketing, email marketing, banner ads on popular websites like Facebook, social media marketing, online reputation management and mobile marketing.

Page 7: Ralph Paglia Presentation to Honda Zone 9 business meeting

4. Search Engine MarketingSince the majority of consumers use search engines to find their next new vehicle, Paragon uses organic Search Engine Optimization (SEO), Video Search Engine Optimization (VSEO) and targeted pay-per-click search marketing campaigns to attract in-market consumers who are shopping for Acuras and Hondas to their website and dealership.

Page 8: Ralph Paglia Presentation to Honda Zone 9 business meeting

5. Micro SitesAll of Paragon’s digital marketing efforts drive consumers to a campaign micro site where the message, offers, look and feel are consistent with every other part of the campaign. The campaign micro site is designed to convert the maximum number of visitors into email, phone and showroom leads. Here are some examples of micro sites we currently use:  • www.ParagonHondaInfo.com • www.ParagonExpressService.com

Page 9: Ralph Paglia Presentation to Honda Zone 9 business meeting

6. Public RelationsTier 10 believes that a free five minute story on a major TV network that appears online forever has a bigger impact than an expensive 30 or 60 second TV ad that runs out when the budget expires. We created and distributed relevant press that generates interviews with local press and we have received exposure in the Wall Street Journal,  New York Times, NY Post  and hundreds of stories on national outlets, including CNN, ABC, NBC, CBS, FOX and MSN.

Page 10: Ralph Paglia Presentation to Honda Zone 9 business meeting

7. Reputation ManagementToday’s consumers rely more on other consumers’ reviews than advertising, so Online Reputation Management is a top priority at Paragon. When consumers Google Paragon they will find out about all the things they are doing in the community and they will be able to read positive reviews from satisfied customers.

Page 11: Ralph Paglia Presentation to Honda Zone 9 business meeting

8. Targeted MarketingParagon communicates with all in-market Honda and Acura consumers by sending custom offers based on their vehicle, miles and position in their ownership cycle. Paragon sends custom campaigns via mail and email to promote all their profit centers, New, Used, Finance, Service and Parts.  We dial into Paragon’s DMS to target in-equity customers and we use variable printers to send a custom message to each consumer that shows them how they can get a newer vehicle for a lower payment.

Page 12: Ralph Paglia Presentation to Honda Zone 9 business meeting

The Perfect Prospect

Paragon Customers

17,000

HondaCustomers

22,000

NissanCustomers

7,500

Toyota Limited5,300

VWLimited1,890

OlderDomestics

22,000

DMS

Polk

Honda

76,000

PerfectProspects

=

Page 13: Ralph Paglia Presentation to Honda Zone 9 business meeting

9. Niche MarketingWe created a corporate purchase program to employees of large organizations in their market that gives them special pricing and service when they do business at Paragon. We sends an information package to the HR department of the largest organizations in our area to ask them if they want to give this free benefit to their employees. If a company wants to join the program they receive a communication kit from Paragon that explains the program to their employees. Companies have the option of having brochures customized with their logo and sent to their employees directly so they don’t even need to stuff their payroll envelopes.

Page 14: Ralph Paglia Presentation to Honda Zone 9 business meeting

10. MerchandisingWhen you walk into Paragon Honda and Acura, it is obvious something is going on. Even if consumers don’t know about their sale the merchandising quickly reminds them that they are lucky they stopped by at the right time. The dealership has extensive POS Merchandising that promotes the Paragon Guarantee and Paragon’s Certified Pre-Owned Vehicles.

Page 15: Ralph Paglia Presentation to Honda Zone 9 business meeting

The Result

Paragon Honda and Acura grew from #17 to the #1 New and Certified Pre-Owned Honda & Acura Dealer in the U.S. in a short 6 month period.

“Overall, it was our best year in business despite being the worst year in the industry,” said Brian Benstock, GM and partner of Paragon Honda

“We had a record year for volume and profitability during a record low year for the car business.” 

Page 16: Ralph Paglia Presentation to Honda Zone 9 business meeting

Action Plan Response to “A message from

Steve Jaros and David Hendley”

Page 17: Ralph Paglia Presentation to Honda Zone 9 business meeting

Get your sales staff together and develop plans on how you will get the 2012 Civic message to your customer database. Will it be a preview night, special invitation only event, or a direct mail campaign that offers a special incentive to come by and see the all-new 2012 Civic?

Correct Answer: All The Above!

Use highly targeted Direct Mail combined with Email campaigns to drive showroom

traffic…

2012 Civic Launch Dealer Readiness

Page 18: Ralph Paglia Presentation to Honda Zone 9 business meeting

How can you tie into local events in late April to May time frame?

•Local fairs and Spring Events are tailor made to showcase the all-new Civic

•Sponsor Prom Night Alcohol Free after parties featuring new 2012 Civic at event

•Sponsor College Spring Formals for Fraternities and Sororities and showcase the new 2012 Civic at events

Page 19: Ralph Paglia Presentation to Honda Zone 9 business meeting

How do you get the moms and dads of those graduating high school seniors and college students to shop you first before they go to another brand?

•Dealership sponsored “College Graduate Program”

•Promote with Blogs and Tweets using popular college and school hash tags

•Develop College Internship Program where Interns must use social media marketing to generate 2012 Honda Civic test drives

Page 20: Ralph Paglia Presentation to Honda Zone 9 business meeting

How do you get your local print and media to take notice of the all-new Civic?

• Press Releases through Prweb and Prnewswire

• Local Press Ride and Drive day event

• Radio talk show call in appearances by dealer

• Dealer interview on TV news report about rising gas prices and the innovation of Civic GX

Page 21: Ralph Paglia Presentation to Honda Zone 9 business meeting

How do you use your local contacts, associations, and corporations to show the all-new Civic?

•Shopping center placements; San Tan Honda puts new vehicles all over the San Tan Village shopping center with brochures on windshields

•Honda Owner Clubs – Send representative to present the 2012 Civic at monthly meetings

•Costco Membership Warehouse and Sam’s Club in-store vehicle displays

Page 22: Ralph Paglia Presentation to Honda Zone 9 business meeting

Lay of the land

Page 23: Ralph Paglia Presentation to Honda Zone 9 business meeting

So what’s the hold up?

Page 24: Ralph Paglia Presentation to Honda Zone 9 business meeting

Integration from a strategy perspective

Dealer

Social media

Website

Offline

POS

TargetedMail

Paid search

SEO

Email

CRM

Mobile

LBS

Page 25: Ralph Paglia Presentation to Honda Zone 9 business meeting

Evolution in a dealer’s planning paradigm

Marketing plans must answer the questions:

+ Where do car buyers want to engage with us?

+ Where do we want to engage with them?

+ How can we make it easier to engage with us?

Page 26: Ralph Paglia Presentation to Honda Zone 9 business meeting

Strategy development tips

+ Acknowledge the need for integration

+ Think beyond short term campaigns

+ Elevate your tracking and analytics expectations

+ Hold everyone on your marketing team accountable for integration

Page 27: Ralph Paglia Presentation to Honda Zone 9 business meeting

Integration from a media perspective

Civic web properties

Social media

SEO

Mobile

Paid search

Traditional

Display

Page 28: Ralph Paglia Presentation to Honda Zone 9 business meeting

Evolution in planning paradigm

Civic Launch campaign media plans must answer these questions:

+ How can we share intelligence between media disciplines?

+ Do all media channels support a uniform message?

+ Can consumers find us when/ where they want?

+ How can we track their behavior to make smarter marketing/ business decisions?

Page 29: Ralph Paglia Presentation to Honda Zone 9 business meeting

Challenges

Page 30: Ralph Paglia Presentation to Honda Zone 9 business meeting

Tunnel vision

Page 31: Ralph Paglia Presentation to Honda Zone 9 business meeting

SolutionLead strategically, not tactically

+ Bring everyone together during an initial 2012 Civic kick off to plan in a strategic and integrated fashion

+ Leverage media disciplinary experts (e.g. social media)

Page 32: Ralph Paglia Presentation to Honda Zone 9 business meeting

Fragmented reporting

Page 33: Ralph Paglia Presentation to Honda Zone 9 business meeting

Solution

Integrate reporting and assign media channel KPIs

+ Segmented reports do not illustrate the big picture

Page 34: Ralph Paglia Presentation to Honda Zone 9 business meeting

Accountability

Page 35: Ralph Paglia Presentation to Honda Zone 9 business meeting

SolutionEvery discipline affects a marketing ecosystem, so everyone is accountable for output.

+ Attach goals to various departments and make sure everyone is onboard with the integrated marketing plan.

+ I’m on a horse: Do you think the social media and video teams for the Old Spice campaign planned in isolation?

Page 36: Ralph Paglia Presentation to Honda Zone 9 business meeting

Scenario planning

Page 37: Ralph Paglia Presentation to Honda Zone 9 business meeting

Solution+ Plan for every iteration of yur 2012 Civic launch

campaign and don’t sell yourself short.

+ Before you initiate your 2012 Civic launch campaign, take pause to see any gaps that are easily overlooked when you’re knee deep in execution

Page 38: Ralph Paglia Presentation to Honda Zone 9 business meeting

Key 2012 Civic launch integration points

+ Paid search and SEO

+ Display and paid search

+ Online and offline

+ Social and paid search

+ Email and social

+ Website + EVERYTHING…

Page 39: Ralph Paglia Presentation to Honda Zone 9 business meeting

70+%70+%

% of car buyers that found the car they bought on-line

Page 40: Ralph Paglia Presentation to Honda Zone 9 business meeting

Why doesn’t dealer advertising have the same impact on sales that it had a

few years ago?

Other, 17.6 hours

Newspaper,3.9 hours

Television, 16.4 hours

Internet 32.7

hours

Weekly Hourly Media Consumption 1

(Total time spent using all media was 70.6 hours)

1. IDC Study, U.S. Consumer Online Behavior Survey Results 20072. 2006 National Automobile Dealers Association Data

Internet

Television

Newspaper

Direct Mail/

Radio/Other

11.50%

19.50%

27.30%

28.30%

Percent of Advertising Spend 2

Page 41: Ralph Paglia Presentation to Honda Zone 9 business meeting

Only travel is more influenced by Online media

Source: DoubleClick Touchpoints III

Page 42: Ralph Paglia Presentation to Honda Zone 9 business meeting

“Which information source was most important when making decisions about buying your

vehicle?”

Inte

...

Family Fri TV

Mag

a...

New

s...

Radio

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0% 35.3%

24.9%

13.4%

8.2%4.4% 3.6%

1.1%

R.L. Polk 2010

Page 43: Ralph Paglia Presentation to Honda Zone 9 business meeting

Newspaper spending is declining

2005

2006

2007

2008

2009

2010

2011

$1.0$1.5$2.0$2.5$3.0$3.5$4.0$4.5$5.0 $4.6

$4.3 $4.1 $3.9 $3.7$3.3 $3.2

$1.4$2.0

$2.5$3.0

$3.4$3.9

$4.4

NewsPaper Spend (Billions) Internet Spend (Billions)

Includes auto manufactures, national dealer associations, individual dealerships and other market vendors, excludes auto insurance and retail

companies.

Page 44: Ralph Paglia Presentation to Honda Zone 9 business meeting

Are You Ready for Battle? Toyota’s Mission is to take Civic Buyers…

Page 45: Ralph Paglia Presentation to Honda Zone 9 business meeting

Are You Ready for Battle? Toyota’s Mission is to take Civic Buyers…

Page 46: Ralph Paglia Presentation to Honda Zone 9 business meeting

2012 Honda Civic VideoPre-Roll Lexus CT Advertisement

Page 47: Ralph Paglia Presentation to Honda Zone 9 business meeting

Integrated Advertising Phase 1 Approach

1. Do-It-Yourself Digital Advertising – Although it may seem complex, many

forms of digital advertising can be done without extensive training. We share with you some of the latest ways you can get started, many of them at no cost!

Page 48: Ralph Paglia Presentation to Honda Zone 9 business meeting

Integrated AdvertisingPhase 2 Approach

2. Digital Advertising Setup & Training – An introduction to the tools, processes

and know-how needed by dealers to get up and running with online advertising – 2 days of in-dealership hands on process definition, building and launching actual campaigns!

Day 1Campaigns

Setup

Day 1Campaigns

Setup

Day 2Campaigns

Launch

Day 2Campaigns

Launch

Page 49: Ralph Paglia Presentation to Honda Zone 9 business meeting

3. Full Service Digital Advertising Solution

– Partner with a qualified service provider to provide your dealership with some of the most advanced advertising solutions that are available today.

Integrated AdvertisingPhase 3 Approach

Page 50: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Consumers visit an average of 6 dealership websites, most are visiting one dealership site per brand.

• Integrated Advertising is an effective way to increase a dealer’s selection as the one Honda dealer that the consumer visits.

Consumers Compare Brands Online Dealers are Competing with Other Makes… Online!

Are you planning your advertising for maximum effectiveness?

Page 51: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Search Engines are the primary tool used by car buyers for filtering dealerships

• Dealer Websites are now an extension of the dealer’s showroom and local brand

What you need to knowPre-Selection Filters - Car Buying Starts on

Web

Are you planning your advertising for maximum effectiveness?

Page 52: Ralph Paglia Presentation to Honda Zone 9 business meeting

Impressions Generated

How many times ads were seen

Click Through Rate (CTR)# that customers clicked on an ad divided by impressions generated

Leads GeneratedElectronic Leads and Phone Calls attributed to the ad campaign

Campaign Closing Ratio# of sales divided by # of leads and calls attributed to the campaign

Campaign CostHow much spent on Ad Campaign

Cost per Thousand (CPM)

How much cost to get 1,000 consumer Impressions

Cost per Click (CPC)

Average Cost for each customer that clicked a dealer’s online advertisement

Cost per Lead (CPL or CPA)Average cost for each lead generated by a digital advertising campaign

Cost per Vehicle Retailed (PVR)

Total campaign cost divided by the number of vehicles sold and attributed

What should dealers measure?

Page 53: Ralph Paglia Presentation to Honda Zone 9 business meeting

What does it look like when we evaluate an Integrated Advertising Campaign (4 months)

• 33,257,657 Impressions Generated – How many times the ads were seen

• 29,528 Visits to the dealers web sites, landing pages and micro sites

• 2,248 Electronic Leads and Phone Calls Generated

• 174 Vehicles Sold – You know what this means!

• $71,801 Integrated Campaign Cost – Multiple media channels

• $2.16 Cost per Thousand (CPM)- How much to get 1,000 Impressions

• $2.43 Average Cost per Visitor to dealer’s site

• $31.94 Average Cost per Lead Generated

• $412.65 Average Cost Per Vehicle Retailed (PVR), (compares to $620.55 YTD)

Page 54: Ralph Paglia Presentation to Honda Zone 9 business meeting

Which Advertising Networks Recommended for 2012 Honda Civic Launch?

• Facebook Advertising – http://www.facebook.com/advertising/– Reach Your Target Customers; Choose your audience by location, age

and interests

• Google Advertising Network– http://adwords.google.com – Site examples: CNN, MySpace, New York Post, Macworld,

HowStuffWorks, Univision, AutomotiveForums, Swapalease, Kudzu and thousands more.

• Kelley Blue Book In-Market Vehicle Shopper Network– http://www.kbb.com/company/advertising/dealer– Site examples: Consumer Guide Automotive, J. D. Power & Associates,

NADA Guides, Vehix.com, Shopping.com, Motortrend, Car and Driver and many more.

• Yahoo! Advertising Network– http://advertising.yahoo.com/central/solutions/aut

o/

– Site examples: Ebay Motors, Yahoo! Autos, Yahoo! News, Yahoo! Email, Comcast, AT&T, Cars.com, WebMD, Forbes and thousands more.

Page 55: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Types of Buys:– Pay for Placement by

Time (fixed monthly fee)

– Pay per Click (PPC or CPC)

– Pay per Thousand Impressions (CPM)

– Pay per Conversion (CPA) Leads & Calls Generated

• How to Get it Done:– In-House: Do It Yourself – Professional Digital Ad

Setup and Training – Outside SEM Service

Providers & Ad Agencies– Regional Honda Dealer

Advertising Associations – Honda OEM Digital Ads

How does buying Online Advertising work?

Can dealers use online ads to drive Traffic?*

Page 56: Ralph Paglia Presentation to Honda Zone 9 business meeting

Action PlanWhat will you do when you return to your store?

• Check List Items– Opportunity Management; Internet, Phone & Showroom – Download/Print Advertising Guides from Honda iN – Assign Roles and Responsibilities; whose job is it?

• Identify What’s Missing– What’s your 2012 Civic Launch message?– Who’s your targeted 2012 Civic buyers?

• Google Adwords - Set up a dealership account• Google Adwords Training – Get Adwords Certified• Too Much? – Then get help from Agency or

Consultant• Outsource? – Find trusted resources at

www.ADMPC.com

Page 57: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Geographic– Target car buyers in specific locations

• Behavioral– Target prospects whose recent online behaviors indicate high

interest in purchasing a car

• Contextual– Target prospects while they are viewing automotive-related content

on the Internet

• Demographic– Target prospects based on your ideal market demographics

• Retargeting– Target prospects who have already visited your website – leverage all

media

Types of On-line Targeting

Page 58: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Retargeting gives advertisers the power to connect with past website visitors in a simple, cost-effective and non-intrusive way

– The most valuable users on the Internet are the past visitors to your website

– 98-99% of website visitors leave without completing a transaction

Retargeting

Page 59: Ralph Paglia Presentation to Honda Zone 9 business meeting

Why Use an Advertising Network?

Buying All Consumers Locally:• No targeting or insight –

shotgun• Several individual buys – no

coordination, duplication• High funnel strategy vs. selling

today

Advertising Networks:• Many of the best local websites• Coverage includes local

geography only• Only buy in-market auto

customers• Leverage Tier I campaigns/scale• Optimize campaign over timeAutomotive

Vehicles

Cars & Hybrids

Honda

Civic

Target M

arket

Page 60: Ralph Paglia Presentation to Honda Zone 9 business meeting

• Search the web, learn the landscape– City Name and Honda Civic

• Open Google Ad Words Account – Create a PPC search campaign based on

“Honda Civic” terms geo-targeted to your PMA

• Set up a Facebook Profile for Dealer Principal– Create “Honda Civic” Fan Page– Build a Facebook Ad campaign about the

all new 2012 Honda Civic that points to your Fan Page

– Invite Fans to test drive the 2012 Honda Civic

Key Dealership Action Items

Page 61: Ralph Paglia Presentation to Honda Zone 9 business meeting

Key Dealership Action Items

Page 62: Ralph Paglia Presentation to Honda Zone 9 business meeting

Key Dealership Action Items