Download Fine-tuning car sales process

March 12, 2003
Hello, martibb | MyNews | Log
out
41° F
Story search: Last 7
days
Go
Older than 7
days
Fine-tuning car sales
process
Seeking more women and minority buyers,
automakers train dealers to junk pressure
tactics and be more sensitive to consumers.
By Joanne Cleaver. Special to the Tribune. Freelance writer
Rebecca Little contributed to this story
Published March 12, 2003
Local dealers are driving auto manufacturers' efforts to sell to
women and minorities this year.
Go
A more friendly dealer attitude accelerated Chicagoan Mario
Escobedo's recent decision to buy a Mitsubishi Montero
Sport. Strolling around the dealership, sitting in the driver's
seat and checking under the hood without a high-pressure
pitch is what sold him on the purchase, he said.
"They weren't pushy. They just answered my questions,"
said Escobedo, who added that in the past, he has
deliberately not purchased cars from dealers that plied him
with too many questions.
For a decade, manufacturers have tried to hit on the right
formulas to build brand loyalty among women, AfricanAmericans, Hispanics and Asians--the largest minority
populations in the U.S. Automakers' sporadic commitments
to these groups have delivered uneven results.
In addition, allegations of redlining--mainly against dealers
but most recently against DaimlerChrysler Corp.--could
make it even more difficult to earn that loyalty. The financing
unit of DaimlerChrysler is being sued for allegedly denying
financing to qualified blacks because of their race.
Now, at least three car manufacturers are ramping up
training programs to equip their dealers to relate more
effectively to women and minorities.
But marketing consultants say that this strategy will be
harder to pull off than, say, simply buying more ad space in
ethnic media. Changing the attitudes of car salesmen won't
happen overnight, they say. In addition, progress could be
hard to measure: People buy specific cars for different
reasons, such as price, reliability and safety.
Still, car companies must find a way to turn the final link in
the sales process into a welcoming experience for minority
buyers, who are rapidly gaining in number and economic
power, observers said.
At the recent Chicago Auto Show, Gary Cowger, president of
General Motors' North American automotive operations, said
that GM intends to increase its total market share this year
by 2 points from sales to women and minorities.
Key to GM's effort is a wholesale retraining of dealer sales
staff to emulate the "we listen" strategies successfully
employed by Saturn Corp., a GM subsidiary.
Toyota Motor Sales USA is about to implement a "toolbox" of
sales techniques, including direct marketing, to assist
dealers. And late last month, Ford announced internally it
had formed a new diversity advisory committee intended to
help dealers improve their local marketing strategies to
minorities--strategies designed to respect and reflect the
buying preferences of each category.
One big step is hiring salespeople who speak languages
represented in each dealer's market. While there is no
language barrier for most second-generation ethnic groups,
there often is for first-generation immigrants. First-generation
Korean immigrants, for example, often rely on more Englishfluent relatives to help them communicate with non-Koreanspeaking salespeople, says Hoyoun Kwon, director of the
Center for Korean Studies at North Park College in Chicago.
That can mean time-consuming discussions of features and
price. wants a say.
"There would be one spokesperson for the family, but it
would be a group decision. Everyone goes on the test drive,"
Kwon said.
Speaking Spanish is essential
For Hispanic customers, having a Spanish-speaking
salesman is only one way to help increase sales to that
segment, said David Bean, author of a recently released J.D.
Power & Associates report on the U.S. Hispanic automotive
segment. Bean's report also discovered that first- and
second-generation Hispanics tend to view and use their cars
differently from Anglos.
Hispanics tend to take a lot of pride in their car's condition
and appearance, Bean said. And often, Hispanics have one
car for the entire family used for everything from going to
church to delivering orders for a family-owned business, the
report found. Insights like this help salespeople understand
why a Hispanic buyer might prefer, say, a station wagon
rather than a mini-van for family use.
Selling to women requires a different approach.
"The salesperson is trained to give a little tour of the vehicle-the engine, the interior, the trunk," said Martha Barletta,
president of Winnetka-based marketing consultancy
TrendSight Group, which focuses on marketing to women.
"Their goal is to get through the tour" before the customer
interrupts with questions, she said.
Women, though, explain their needs by spinning a tale of
how they'll use the product, according to Barletta.
Key to GM's strategy is adopting many of the sales
strategies used by its Saturn dealers. Well-honed listening
skills are one of the most successful Saturn tactics, said
Marty Raymond, Saturn's director of retailer strategies.
GM turns to ethnic media ads
The carmaker's diversity program, which includes a
recommitment to advertising in local ethnic media, will be
tied to incentives.
"Manufacturers don't have direct control but they have a lot
of influence," said Carl Ragsdale, chief operating officer of
the dealer services division for the National Automobile
Dealers Association. "They have to convince the dealers that
it is good business to send your people to train on how to be
more sensitive to women and minorities."
Of course, he pointed out, the ultimate marketing strategy is
having dealerships owned by people who are of the same
race and gender as their markets.
Only 15 percent of all dealerships are owned by ethnic
minorities, and 7.7 percent of all dealer sales staff are
women, he said.
Copyright © 2003, Chicago Tribune
Home | Copyright and terms of service | Privacy policy | Subscribe | Customer service | Archives | Advertise