The following guest article is from Richard Elkman, President of Group Two Advertising.
What Can We Learn From Volkswagen’s Marketing Strategy?
You’d have to be “brain dead” to not know that the auto industry is in the toilet. Car sales through April are down 37%. But, while some brands stopped spending on marketing, others kept or increased their budgets according to USAToday.
Volkswagen has increased its advertising spending and increased its US market share from 1.4% to almost 2.0%. VW’s marketing director, Tim Ellis said, “When we invest in marketing, things happen. We think it is important to stick to our value message. We are getting a higher percentage of a dwindling marketplace. When this crazy auto market improves we will be positioned to increase our market share even further.” Ellis said that they will be introducing three new models and a new marketing campaign featuring the internet and Facebook. The campaign will be dubbed “Meet the Volkswagen”.
The marketing will promote cost of ownership, fuel efficiency, green, German engineering, new models and value.
How interesting. Aren’t cost of home ownership, energy efficiency, green building, innovative technology, new model homes and value the same issues driving sales for builders? So, why are many builders eliminating marketing and thinking that they won’t lose market share? Why are builders using marketing strategies from 2006? Now is not the time to disappear in the eyes of potential homebuyers. Remember: “Out of sight, out of mind.” You have to spend money in order to make money, even if the budget is small.
There’s no excuse for builder websites that are boring, static and similar to their competition. The core of any marketing is a good website. This is not the place to save money and lose a competitive edge. In fact, increasing your presence on the internet is one of the best investments you can make.
Technology has changed drastically in recent years, yet most builders aren’t even aware of the new possibilities. Why aren’t more builders taking advantage of new, affordable and effective media opportunities? VW is using banner ads, Facebook, Twitter, and other social networking opportunities, with little to no cost. Integration is key to marketing today.
If you have the right product, pricing and location, then there is no reason that you can’t improve your traffic and give your sales people the increased opportunity to sell more homes.
The increasingly positive housing news from the Fed Chairman, Warren Buffet, and even the evening news will lead to increased consumer confidence. Confidence will lead to more opportunities to sell.
You have a choice. Do nothing different with your marketing and get nothing in return. Or call me and we’ll discuss what you can do to take advantage of Group Two’s affordable and innovative marketing strategies.
What are you waiting for?
Rich
P.S. 170 building professionals attended our webinar featuring Hubbell Homes on May 14th. If you missed this webinar or any of the others in the Successful Builders Series, you can download them for the next two weeks at www.grouptwo.com.