Is your advertising missing the target?

by: Mark R. Dubis

Much has been written about targeting the young, up and coming professionals for automotive advertising, but are dealers and the manufacturers missing the mark? Television commercials, radio advertising and most of the ads in magazines are targeting the under-40 set for all types of products and services. While this is a vital and growing market, it is important to remember that the Baby Boomer segment of the market will continue to be a dominant purchasing force over the next fifteen to twenty years. By 2010, the 50+ segment in the US will grow by 21 million while the 18-34 age segment will grow by only five million. The mature market is sophisticated and has unprecedented buying power, yet the majority of television ads targeting that audience are for prescription drugs peddling cholesterol-lowering pharmaceuticals and solving the problem of erectile dysfunction. If your dealership wants to grow your Internet business, please take note: 40% + of baby boomers and seniors are on the Internet five or more hours per week. The spending habits of older Americans make them one of the most desired markets on the Web. Categorizing and segmenting the boomer audience is important as they cover the entire social and demographic spectrum. Practically every boomer remembers a family member who owned a Buick. It was a near status symbol to shoot for that signaled success. Now Buick has introduced a great crossover vehicle, the Enclave, but at $35,000 they are missing a majority of their target audience. In a recent study by Forcast, it was discovered that only 1 in 10 boomers have a household income of $100,000 or more. They call this segment Boomer Elites. What is Buick doing for the other 90% who have a lower household income but strive to drive a Buick? Industry observers, who watch OEM marketing, find it mind boggling that Buick has no sedan available under $21,000. Why did they discontinue the Century? In our aging population a strong patriotic tendency exists that is causing boomers to really want to buy American when they can. The irony is that many "American" products are made overseas and many "foreign" vehicles are made in US plants, blurring the vehicle lines of what was once considered "American Made." Toyota Camrys are made in Kentucky, Subaru Outbacks in Indiana, and Hyundais in Alabama. Ford's most popular car, the Fusion, is made in Mexico, and while most of the bread and butter Chevrolets are made in America, their styling has been lacking for years. Does that mean dealers or manufacturers should give up this market? Absolutely not! This is a great market to pursue, but dealers need to think differently about how to reach it. Older consumers have rearranged their priorities when looking at features on the vehicles they buy. So now they are considering features and components that were not an issue previously. Income for many will be finite, so fuel economy is a bigger issue. Since knee and hip movement might be limited, they wonder if the car is easy to get in and out of. What will be the long-term cost of maintenance and repair on the vehicle? Is visibility good? What about blind spots? Remember these consumers can't turn and look behind them as easily as they previously did. But the most important thing for manufacturers and dealers is to start "speaking" to this audience. Ford introduced their crossover vehicle, the Edge recently, and all initial ads show hip young urbanites driving on the sides of buildings. With a base price of $25,000 MSRP and a well equipped version costing $29,000, Ford has apparently missed their real market for this vehicle. This is a great vehicle for empty nesters who want to go antiquing on the weekends or just run to Home Depot to pick up some mulch, but somehow Ford has not positioned this vehicle for the boomer market. A Ford dealer or dealer association should consider promoting this vehicle at home and garden center locations to show how many racks of plants can fit in the back, or how the seats move to accommodate a roll of carpeting. Ford says the Edge has "69.6 cubic feet of available versatile cargo space." That's great, but how many folks can visualize what 69.6 cubic feet will hold? If manufacturer and dealer advertising can show potential buyers how much real cargo a consumer can load in there on their weekly trip to Lowes, they will understand and buy. Show potential buyers two or three golf bags in back of the vehicle, and they will understand how it meets their real needs. These events could offer free test rides, hot dogs and sodas, and you've got a winner of a sales event. Dealers, considered yourself challenged to get creative and proactive in promoting what you have to sell. Reach out to the 43 to 60 year olds that are looking for someone who cares about them. Show them you care, and you will sell cars and trucks.

Mark Dubis is director for the Dubis Group, an automotive marketing services company. Previously he held positions as editor of Digital Dealer magazine, vice president in the indirect lending areas at National City Bank and KeyBankUSA, non-prime sales trainer for World Omni and a former car salesman in South Florida.

An edited version of this article orginally appeared in the July 2007- AutoUSA newsletter