Marketing Forecast from Ad-ology

Consumers have a lot to consider when they’re on the hunt for a new car these days. But, according to Mintel research, it’s a hassle-free sales environment that really gets shoppers’ motors running, as 27% of consumers who have bought a new vehicle in the past three years say they were influenced by the stress-free sales floor. With the average age of cars and trucks on the road today at more than 10-years-old, industry analysts say Americans will need to replace their aging vehicles. Sales are expected to reach 12.9 million new cars and trucks sold in 2011, compared with 11.6 million light vehicles sold in 2010, according to the National Automobile Dealers Association. Factors expected to contribute to the sales gains include an abundance of new models and choices, low interest rates, and higher gas prices, which increase consumer demand for small cars, hybrid vehicles and diesels.

By 2012, Gen Y consumers will account for approximately 40% of the car-buying population and represent a new breed of confident consumers who are independent, tech-savvy, engaged and demanding, according to a new survey by Deloitte. The new survey indicates that Gen Y consumers have an increasingly positive view of the industry on everything, from researching and shopping to vehicle trustworthiness. By providing Gen Y with an ongoing, positive customer experience that has the same amount of innovation, dedication and information found in the cars that drew them to the brand initially, manufacturers will be able to take advantage of the influence this generation has over other consumer segments.

With the auto industry looking to continue the recovery it began in 2010, analysts are predicting that manufacturers and dealers will increase their ad budgets in 2011. Spending is expected to rise both at the national and regional levels. Auto companies will be marketing both new and redesigned models along with those powered by hybrid or electric technology. In addition, marketers will use specific media formats to reach prospective buyers.

Ad-ology Research recently updated their Industry Marketing Insights report for Muffler Shops. The following are the predicted Top 3 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

* Approximately 35% of mechanical repair businesses have altered advertising plans to attract more women customers, and 68% of collision shops are changing their advertising to draw more women as well.
* As demand for automotive repair services has grown, the number of general repair outlets has decreased, principally because fewer gas stations now perform repairs and there are fewer new car dealers. These factors present opportunities for increased sales.
* By 2018, foreign cars and light trucks (imports and transplants) are expected to account for over 35% of service station and shop volume, due to increasing ownership.

Most business owners understand that marketing encompasses a wide range of activities from outright advertising to event sponsorship to surveys. One of these components, the post-service experience survey, is increasingly being used these days, especially by service-based businesses. Many users believe these surveys result in question-behavior effects (QBE) that positively impact revenue. But are these surveys really generating new revenue? The results of an in-depth study published by Rice University researchers provide some answers.

Market research firm Morpace recently examined factors that consumers consider most influential when choosing an automotive dealership. In the wake of nearly 2,300 Chrysler and GM dealership closures over the past year, Morpace found that consumer loyalty to brand name dealers is an insignificant factor in choosing a dealership. Of the 1,000 people surveyed, 74% considered “best deal offerings” when choosing to buy from a dealer. Other top considerations were “prior positive experience” and “referral from family or friends.” In general, consumers may not mourn the loss of particular dealers so long as they still can find what they want at a low price.