Understanding Car Dealerships
Start writing a post
News

Understanding Car Dealerships

What is this industry really like?

4
Understanding Car Dealerships

In a bit of a departure from my norm, in this article, I'm going to talk about the different types of Automotive Marketing, as well as how dealerships are structured. There are three tiers of dealership marketing. Tiers 1,2 and 3. The first tier is OEM, or original equipment manufacturers. These are large brands, such as Ford, GM or Toyota. Tier 1 dealers structure their ads in the form of "Why you should buy this vehicle," and their ads come from a wide variety of sources. Tier 2 dealers are regional networks of dealers who band together to form an organization that gives them more collective bargaining power. Their ads are limited to regional television networks but are starting to move to social media outlets as well. Finally, Tier 3 dealers are local, stand-alone entities. These dealerships advertise almost exclusively on local TV stations, and even on simpler platforms like billboards.

In addition to these tiers of dealership marketing, there is also an additional classification of dealership types. They are franchised and independent. Dealerships are directly franchised through OEMs. So, for instance, a dealership might get franchised by Ford, and then it has authorization to sell Ford vehicles. Dealerships that are franchised frequently have larger customer service staff, as well as service departments. On the other hand, independent dealerships more commonly sell used vehicles, and don't have dedicated service staffing. This is important, because while it gives them more flexibility in terms of vehicles, it also makes it harder for them to develop customer relationships.

Finally, this brings us to the value of franchising dealerships. Franchising dealerships provides a huge boon to local economies. When dealerships are franchised, it lowers prices (because there is frequently competition), as well as ensuring protection of the consumer. Because there are lots of rules and regulations that need to be followed, franchising serves a perfect system of checks and balances for this.

Ultimately, we can conclude that the dealership industry is varied and extensive. This makes sense, because there are so many dealerships in the United States (around 18,000). Dealerships provide an enormous amount of jobs and economic value to communities. However, we will need to realize that there are different ways these dealerships should be marketed to. For instance, regional organizations that bring together several dealerships would be a perfect tactic. Meanwhile, it will be harder to reach the tier 3, standalone dealerships. Finally, the importance of relationships with the OEM cannot be overstated. This is not just the case with cars, but with servicing capacities as well. The people who manufacture the products that go to the dealerships have a lot of power.

https://9clouds.com/blog/the-power-of-three-building-a-cohesive-marketing-plan-with-auto-co-op/

https://smallbusiness.chron.com/difference-between-franchise-dealership-independent-dealership-10015.html

https://www.nada.org/auto-franchising/

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Featured

The Blessing of Lacking Sex Appeal

To all the fellow non "it" girls out there

1226
kozepsuli.hu

Lacking sex appeal is not a desirable thing. It makes you fee not ugly, but wrong. Not having charisma is not a life goal. It doesn't make you fee friendless, but isolated. Not being the "it" girl happens, and tonight (and every nigh prior to this)

Keep Reading... Show less
Swoon

Confessions From the Single Friend of the Group

It is truly the worst place to be

4258
Confessions From the Single Friend of the Group

Look. If you are anything like me, complaining about being single is such a hard thing to because you are genuinely happy for your friends, but as they continue to be happy in their relationships, the ever crushing weight of being the single friends can become overwhelming. For context, my primary friend group consists of four people. We are all roommates and it is a great time here. All three of my roommates have boyfriends/girlfriends, which makes our friend group of four quickly jump to seven, and it is wonderful! I love my roommates so much and I love their S.O's, but no matter how much I love them I always get extremely jealous and sad. The sad thing is that the only part that ever truly ends up bugging me is that since I am single, they are my go-to top priorities and it has been really hard to watch myself slip from the top of their go-to's to not being their go to when they feel the weight of the world. What makes it harder is that expressing that I feel alone and unwanted makes me sound jealous and like I don't want my friends to hangout with their people. I get it. I do. But there are just days I want to be someone's first pick and I'm not.

Keep Reading... Show less
Featured

Aretha Franklin Will Forever Be A Detroit Legend, I'm Proud To Share A Hometown With Her

Aretha Franklin lost her battle to pancreatic cancer, so we stop to reflect on her powerful journey.

6280
Aretha Franklin Will Forever Be A Detroit Legend, I'm Proud To Share A Hometown With Her

Recently, Aretha Franklin, the Queen of Soul, passed away. Ms. Franklin grew up singing in her church's choir in Detroit. Over the years, she decided to make singing a career, first signing to Columbia Records at 18. Years later, she signed with Atlantic Records where her most powerful tunes, such as "Respect," are remembered to this day. Her breathtaking vocals earned her 18 Grammy Awards and made her one of the best-selling artists of all time.

Keep Reading... Show less
Featured

Life Before Emancipation

Contraband Camps in Harpers Ferry

7396

When the Civil War first broke out, the United States Army sought to preserve the Union, and did not have intentions on interfering with the institution of slavery in the rebellious states. In fact, in his first inaugural address, Abraham Lincoln promised not to interfere with slavery in the places where it already existed. Of course, at the time of this address, Virginia, North Carolina, Arkansas, and Tennessee had yet to secede, so he needed to keep a moderate stance. When the U.S. Army moved into states in rebellion, generals ensured civilians that they would not interfere with slavery, and would even hep quell potential uprisings. On May 22, 1861, this attitude towards slavery began to change. Prior to then, slaves who escaped into Union lines could be returned to their masters. In some cases, troops with more abolitionist leanings would aid the runaways, but it was not yet the norm. However on May 22, three runaway slaves approached Fort Monroe along the James River seeking refuge. The slaves stated that they were about to be sent South to work on the Confederate coastal defenses in the Carolinas. Instead of returning the slaves to their masters, the commander of the fort, Benjamin Butler, claimed the slaves were contraband of war and put them to work in support of the United States. He wrote Winfield Scott, general-in-chief of all federal armies, "Shall [the enemy] be allowed the use of this property against the United States and we not be allowed its use in aid of the United States?" Following Butler's actions, 900 more slaves would gather in Fort Monroe. Congress would back Butler's stance with the First Confiscation Act in August of 1861.

Keep Reading... Show less
Featured

Juneteenth: The Overlooked 'Independence Day'

If we can't celebrate different types of people and rejoice with them in their season of glee and jubilation, then what kind of "land of the free" is this, anyway?

3937
News Desk

I want to begin this article by saying that I was raised to be about as patriotic as it gets. I was born and bred in the "Bible belt" where we learned to say "thank you for your service" before we could even comprehend what those words truly meant. My father is a highly respected and high-ranking Houston firefighter, and he is following in the footsteps of three prior generations of Houston firefighters within our direct lineage. My maternal grandfather served in the U.S. Army, and I have multiple family members and personal friends who have served and/or are currently serving in our nation's military. And lastly (probably most important), my husband is currently serving as a Sergeant in the U.S. Army, as well. So I think it goes without saying that I have the utmost admiration and respect for public servants and first responders of all kinds.

I love our nation's military and I love this nation. But I am not a blind patriot with my head stuck in the sand. I will always support our troops, but I will very rarely support the ugly wars that we fight (both literal and figurative) across national borders and/or within our own walls.

I will be the first person to admit that this great nation in which we love so dearly is filled with hatred, ugly politics, extreme corruption and institutionalized oppression and racism (just to name a few). I love America and I am grateful that I live here, but I am not blind to America's obvious flaws.

War and political nonsense aside though, I think it is worth noting that America is already great, but let's not be ignorant, America is certainly not the "land of the free" for every race, religion and sexual orientation out there. So let's stop treating it as such. The sooner we can recognize our legitimate internal problems, the better off we will be. Our gullibility is getting us nowhere.

Keep Reading... Show less

Subscribe to Our Newsletter

Facebook Comments