Automotive Marketing

Lead Generation & Email Marketing: A Match Made in Heaven

Tuesday, August 17, 2010 by Mike Sharkey

Imagine you have two email marketing campaigns deployed for your dealer customer. In campaign #1 the creative has excellent graphics, content and layout with a wonderful message about the product. In campaign #2 you have the same features; however, there is a hyperlink for the prospect to provide personal information to receive special new car sales or service offers as well as learn more about the product via the dealer's website.

While both campaigns have the ability to perform well wouldn’t it be great to have hot leads flowing into your inbox at the dealership? This can happen and does happen when a campaign is setup using method number two.

Lead Generation and Email Marketing are not new forms of gaining business, however utilizing a combination of the two methods allows the dealer to have leads generated and distributed to them using the technology of the Internet. This is a very powerful medium as automotive marketing agencies are now required to justify marketing spend for their dealer clients and track how well a campaign is performing.

The combination method in which to do this is relatively simple and can be developed with a backend landing page. Once the consumer clicks on the link the system can redirect them to the landing page or to a social media site where they are able to complete an online request or information form. Tech savvy companies are also setting up pop-up information boxes in which the individual submits information prior to getting to the landing page.

The benefits to using this type of methodology include:

Allows for follow-up and relationship building with the prospect
Allows for ownership of the prospect email information which follows CAN-SPAM regulations
Conversion rates on leads received often have a higher conversion success rate than cold contacts because the prospect is prequalified
Provides valuable metrics for the dealer about who is clicking through the pages. This helps to better budget the return on investment based on the lead conversion rate

Whether or not dealers embrace this type of methodology remains to be seen; however, if this combination shows success and can engage customers and increase customer loyalty in a relevant way, I see no reason why it won't continue to grow in popularity.

Please let me know your thoughts on this topic and perhaps the next evolution of lead generation: social media and mobile.

Posted by Mike Sharkey, Account Manager, Automotive Retail Solutions, Polk (08.17.2010)

Polk's Global Automotive Forecasting Update

Thursday, August 12, 2010 by Guest Blogger

Global Passenger Vehicle Sales Increased by 3.8%; First Seven Months of this Year Were 10.5% Above Previous Year

Key findings include:

July sales increased approximately 10.5% year-over-year due to several incentive programs and more favorable economic conditions
New registrations in Eastern Europe increased in July (+26%) and were led by the scrappage premium in Russia
For the remainder of the year, sales growth rates will turn negative due to the expiration of several scrappage premiums in Western Europe

Forecast updated on August 11, 2010 with data from July 2010 YTD.

Click here to visit the forecasting page and download the free Global Passenger Vehicle Market Monthly Forecast Report.

Posted by Ulrich Winzen, Chief Analyst, Polk, Essen, Germany (08.12.2010)

Polk's Spain Automotive Forecasting Update

Thursday, August 5, 2010 by Guest Blogger

The July YTD data shows the passenger vehicle sales forecasting through 2011 for Spain.

Key Findings:

In July 2010 the Spanish car market reached its lowest level for a month of July since 1995
The end of the scrappage premium and the increase of the VAT from 16% to 18% had a strong and negative influence on registrations
The strong positive effects in the first half of 2010 pushed the market to 1.01 million new registrations this year
The forecasted decline of the Spanish market in 2011 (which will reach a maximum of 1 million new registrations) is due to the weak economic framework and missing positive special effects

Click here for the latest analysis and predictions for select markets around the world. Polk's Global Automotive Forecasting Dashboards are updated regularly. Be sure to check back often to ensure you have the most updated information. You can also click here to subscribe to receive our Knowledge Center and Forecasting updates via email.

Posted by Ulrich Winzen, Chief Analyst, Polk, Essen, Germany (08.05.2010)

Varying Model Diversification Among Premium Makes

Wednesday, July 28, 2010 by Tom Libby

For any brand, automotive or non-automotive, greater diversity across its product portfolio reduces risk since dependence on any one product is limited. Given the generally high quality of today's new vehicles, there is not as much risk as there used to be of one product being virtually crippled by a major quality problem, recall or bad publicity.

The seven leading premium marques have varying degrees of product diversification (see table below). Mercedes-Benz appears to have the most diverse set of vehicles, as no Mercedes-Benz model accounts for more than 29% of the brand's total U.S. retail new vehicle registrations (May 2010 CYTD). And each of four Mercedes-Benz models has more than 10% of the make's registrations, something only one other brand (Acura) can claim.

Other premium brands with moderate diversification include Acura, Audi (which is less reliant on the A4/S4 than it used to be), Cadillac and Lexus. Both BMW and Infiniti are heavily reliant on one product, with the 3-Series accounting for almost half of all BMW sales and the Infiniti G claiming almost six of every ten Infiniti deliveries.

It is also noteworthy that the three leading large premium sedans (7-Series, LS and S Class) each account for exactly 6% of their respective brand's portfolios, suggesting the direct competition among them and their ongoing positioning against one another. Lastly, for six of the seven leading luxury market brands, the model with the highest proportion of registrations is a small car or crossover, which one would predict given these models' low prices. However, this is not the case at Mercedes-Benz, where the E-Class out-sells the smaller and less expensive C Class, which underscores the long history – and substantial owner base - of the midsize E in this country.

Posted by Tom Libby, PolkInsight Advisor, Polk (07.28.2010)

(Almost) Live at the Fiesta Lounge!

Wednesday, July 28, 2010 by Stephan Gallon

I was with my family this weekend at the Irvine Spectrum, a popular open-door shopping and entertainment center in Orange County, California. I happened to stumble upon the Ford Fiesta Lounge display, and of course couldn't help but inspect every inch of it, especially given my prior experience in experiential marketing at Mazda North American Operations.

As expected, the display was professional, and every aspect truly aimed at reaching that young and trendy customer Ford is seeking with the launch of the new Fiesta. Bright colors, upbeat music, use of Apple iPads throughout, and young attendants ready to answer any question you may have.

Although I had already seen the Fiesta at auto shows, somehow the car looked even more attractive in that setting, especially the hatchback in that bright green used in advertising. The trunk space was surprisingly roomy, and there is no doubt that Ford was trying to convey that the Fiesta is no cheap entry-level car, with the use of leather seats in both display cars, a feature not commonly expected in that category. That option, however, will typically take the sticker price closer to $20K, at which point you might as well consider an entry level Focus or base Fusion.

Will consumers buy into the new Fiesta and into small cars? Judging from the several product entries into that category, OEMs are betting consumers will. Polk forecasts that the small car segment will gain a growing share of the industry, with Fiesta joining the ranks of competitors Honda Fit and Toyota Yaris.

Will the Fiesta, and this type of automotive marketing, help Ford gain share in import-friendly territories such as California? Ford definitely hopes so. While Ford's share in the U.S. (retail excluding fleet) rose from a low of 10.6% in 2008 to a 12.8% year-to-date through May 2010 (Polk registrations), Ford's share in CA only grew by 0.8 pt share (7.4% to 8.2%) in the same timeframe. With California accounting for 16.9% of Toyota Yaris U.S. registrations (15.8% for Honda Fit), you can count on Ford to keep experimenting with initiatives such as the Ford Fiesta Lounge.

Posted by Stephan Gallon, PolkInsight Advisor, Polk (07.28.2010)

2011 Ford Explorer Launch - Making Ambassadors Out of Employees

Monday, July 26, 2010 by Lonnie Miller

July 26, 2010. Dearborn, Michigan. 11:30 a.m., Eastern Standard Time. On the grounds of Ford's world headquarters.

Live band belting out classic rock from the 60s to mid-80s. I'm now singing tunes in my head from The Kinks, The Who and Journey. T-shirts, frisbees and footballs for the employees and media. Definitely a festive feeling. Hot dogs, chips and water for the employees. A cool canopy for invited VIPs and Ford dealers. Lots of excited Ford employees walking around. It's hot. We want shade. But we want to see the product, too.

Backdrop: A huge 20-25 foot pile of sand and dirt with a clear path coming down onto the main stage has been built. Right next to the stage where the band is playing music. No fewer than 6 fullly grown pine trees adorn each side of this man-made mountain.

12 noon. Lewis Booth, Fords' chief financial officer, takes the microphone and welcomes everyone. He explains to the crowd he slept very well the previous Friday after Ford announced its second quarter earnings and financial results. All global operations were profitable. The crowd applauses. For a long time. Booth smiles.

Up comes Derek Kuzak, Ford's head of product development. He is very pumped up. He looks at the crowd and says what the new Explorer is. And what it isn't. You can watch details yourself and read about them here. By the way, the "SUV" segment just lost an entrant - the Explorer is a cross-over based on its uni-body frame (that's shared with the new Taurus).

12:20 p.m. A white Ford Explorer appears over the crest of the man-made hill.

Kuzak takes the microphone again. He encourages the Ford employees to get the word out. Share the news with friends and family. Be an advocate. We rush the stage for photos. (By the way, I witnessed this event due to connections from a friend - not a business colleague... someone at Ford is doing their job).

Good automotive marketing. Explorer hits later this calendar year. Let's see what else they've in store to help their dealers rejuvenate the Ford customer base.

Posted by Lonnie Miller, Vice President, Marketing & Industry Analysis (7.26.2010)

Ominous Trends for the Minivan Segment

Monday, July 26, 2010 by Tom Libby

Can minivans survive? The registration and sales data are ominous. Through the first third of this year, only 88,328 minivans have been registered to individual consumers according to Polk new vehicle retail registration data. That's down 18% from a year ago in an overall industry that is up 10%. The minivan segment's share of the retail new vehicle industry is now just 3.28%, down more than a point in just the past 12 months. For all of 2009, minivans accounted for just 3.71% of the market, a little more than half the segment share of 6.07% five years ago. Back in 2000, minivan sales* made up 7.9% of the market, and the Dodge Caravan/Grand Caravan ranked number #11 in sales among all models.

There are only seven minivans on the market now, and that is being generous because one of the seven, the Nissan Quest, has only 195 retail registrations through April 2010 CYTD. This model count is down by more than half from 17 in 2005. Further, just four of the current models – Honda Odyssey, Toyota Sienna, Dodge Caravan and Chrysler Town & Country – account for 92% of all minivan registrations. Even as these four models grab exceptionally high shares of the segment, their volumes will continue to dwindle if the segment further declines. At some point it would seem to be hard to financially justify product programs with such low volumes. Also, the U.S. automotive market is now being deluged with more and more crossovers and new designs that don’t easily fit into any segment, putting continued pressure on the traditional minivan design. One of the new designs gaining traction in the retail marketplace is the true small van exemplified by the Mazda5.

Toyota has just launched a re-designed Sienna, a new Odyssey is imminent, and Nissan claims a new Quest is on the way, but it's hard to imagine that we will continue to see such major product programs in what is rapidly becoming a small niche of the market.

Do you think OEMs will still be offering traditional minivans in 2015?

Posted by Tom Libby, PolkInsight Advisor, Polk (07.26.2010)

*Source: 2001 Automotive News Market Data Book

To Err is Human...

Tuesday, July 20, 2010 by Barbara Keys

Anytime you do a direct marketing campaign, whether it's a mail or email campaign or some other kind of direct contact, quality of the targeting is a concern. This is especially true for automotive marketing campaigns that target people that own competitive vehicles – targeting Toyota owners for a Honda sales campaign for example. In this case you are likely relying on an external list provider instead of your own owner database. Inevitably you will find some people on your list who don't own a Toyota. That's bad. But there's another source of list error that might be just as bad.

In the example of targeting Toyota owners, there are two things that can go wrong:

You can contact someone who doesn't own a Toyota (a waste of marketing resources)
You can miss someone who does own a Toyota (a missed opportunity)

The science of statistics has fancy terms for these "things that can go wrong" – Type I error and Type II error. I prefer the simpler terms of accuracy and coverage.

Accuracy: If the greatest majority of people on the list really do own a Toyota, then the list is accurate.
Coverage: If a high proportion of Toyota owners can be found on the list, then this list has high coverage.

Unfortunately, accuracy and coverage are competing goals – increasing one will decrease the other. You can increase the accuracy of your list by tightening the selection criteria, but that will mean that some people who do own Toyota will drop off the list (drop in coverage). Conversely, you can increase coverage by loosening the selection criteria. This will include more Toyota owners but will also include more people who don’t own Toyota, dropping accuracy.

List selection tends to "err" on the side of accuracy, counting it worse to contact someone that doesn't own than to miss someone that does. Where that can sometimes backfire is when someone connected with the campaign owns a Toyota and wants to know why they aren’t on the list.

One situation where it might be desirable to increase coverage at the expense of accuracy is when the marketing cost is small (a postcard mailing, for example).

To err is human, but it still has a cost. How do you balance these competing goals when developing a direct marketing campaign?

Posted by Barbara Keys, Analytic Consultant, Polk (07.20.2010)

Gender Preferences for Automotive Purchase Remain Stable

Tuesday, July 20, 2010 by Tom Libby

Even though the automotive industry has experienced exceptional turbulence in the past few years, some things have not changed all that much. One of these is the propensity of males to purchase certain types of vehicles and females other types. Men, who still comprise more than half the new vehicle buying population, remain the dominant purchasers of pickups (all sizes) and high-end vehicles in the luxury market. Four of the five segments with the highest percentage of male buyers three years ago are also among the top five this year. (The data address actual purchases, and do not reflect who influenced the purchase decision.)

Woman, on the other hand, are more likely to buy a small car or sport utility vehicle than other types of cars or light trucks. Similar to the results for males, four of the five segments with the highest percent of female buyers back in 2007 reappear on the list this year. These include three small car categories and one small utility segment.

These industry trends are driven by the vehicles' functionality, basic economics and cultural norms. Regarding functionality, men are simply more likely to need pickups for their jobs than women (though there are other reasons for men to prefer pickups as well). Economically, young single women don't have unlimited financial resources, so they tend to gravitate to the more economy-minded vehicles, which are smaller. Older women are more likely to be married, in which case most of the time the actual legal purchaser in the household is the male. Similarly, households with exceptional amounts of disposable income with which they can purchase high-end sports cars tend to include a couple where, again, the purchaser will be the male. These economic and cultural patterns don't change all that much, which in turn drives the stability of the buying patterns illustrated in the attached table.

Posted by Tom Libby, PolkInsight Advisor, Polk (07.20.2010)

Hybrid Sales - U.S. Update

Friday, July 16, 2010 by Lonnie Miller

There are over 25 different hybrid (gas/electric) cars and trucks sold in the U.S right now (and more if you count some of the discontinued models you can still buy off of a dealer's lot). With so much talk about the forthcoming "onslaught" of electric vehicles, many have wondered what happened to the good 'ol hybrid vehicle segment. It's hanging on and actually doing better than last year.

Fact #1: For the first 5 months of this year, we saw over 106,000 new hybrid units enter the U.S. roadways. Our friends at HybridCars.com show just over 109,000 units for the same time period. Short story: the segment is up over 5 percent on a year-over-year basis based on new registrations.

Fact #2: California is still THE hybrid state. Better than 1 in 5 hybrids are registered in this state. A few years ago, California represented over 25% of the hybrid segment. Now they represent just over 20%. From a dealer network view or someone pulling together a regional automotive forecast on hybrids, you'd be a fool to ignore California. Buyers there are incented to "think green." Although one thing that really shocked me about their current legislation is that hybrids are disqualified from using high occupancy vehicle (HOV) lanes...yikes!

Fact #3: Prius is still king. Over half of all hybrids sold new are the Prius. Last year they accounted for 44% in the first five months; for the same time this year, they account for one of every two sold new. Good luck to the rest who merely want market share in this segment.

Prediction: Looking at the results for May and June of this year, our light vehicle forecast for the hybrid segment is between 254,000 to 260,000 new sales in the U.S. This would put us back at the levels we saw in 2006 (we saw 254,000 that year) and definitely below last year's 2009 total of around 290,000 units.

Go green! And if you're in California, enjoy your single occupant HOV lane privileges while they last.

Posted by Lonnie Miller, Vice President, Marketing & Industry Analysis, Polk (07.16.2010)

Is Retargeting Right for You?

Wednesday, July 14, 2010 by Therran Oliphant

I have to admit, I have recently become fascinated by the opportunities retargeting represents. If you're not familiar with it, retargeting is the process by which an advertiser can make your display ads (re)appear to a web surfer that has visited your online location but failed to make a purchase decision. For instance, if I visit the Reebok website and surf around - without leaving my info or making a purchase - then decide I want to read a blog, I might end up seeing a retargeted Reebok ad on that blog. This is all true, as long as the blog is in the retargeting ad company's network, allows targeted ads, etc.

This is happening with increasing frequency and the question of preparedness should be asked of everyone in the automotive industry, that advertises online. The reason being is, studies show Americans as 49% more likely to visit a site when previously exposed to that brand's messages, and Europeans as a whopping 72% more likely. The numbers are staggering, so you may be wondering why I'm asking the question of whether or not it is right for you. I have two main reasons:

Privacy - Many are worried about privacy issues, as they don't really understand targeting online. Education is the key to overcoming this issue, as online consumer research and targeting rarely keep any personally identifiable information. In fact, businesses should be aware that their advertisers are not violating the privacy of their traffic very much at all. Honestly, social media sites such as Facebook collect more information than retargeting companies.

The quest to help the US become a more advertising savvy society has been taken up by iab with their Privacy Matters campaign. I suggest reading through the site. It only takes about 15 minutes, but answers questions and dispels myths without using much technical language.

Patience - Even though there are positive numbers surrounding the brand affinity of "before seen" brands, the Click-Through Rate (CTR) numbers don't correlate on a 1:1 basis. This statistic occurs because not all site visits and inquiries are immediately derived from a click action on the display ad. Therefore, it is reasonable to assume that multiple exposures and a little time are necessary for the effect of the ads to cause action.

Also, it means that simple quantitative analysis won't tell the whole story. Instead, a mix of quantitative and qualitative analysis should be used to help measure the effectiveness of the campaign. Yes, this is slightly tedious, but a 49% increase in intention to visit your online location(s) should get your attention.

If you want to try something that is underutilized and has enormous potential, look toward ad retargeting. According to MarketingCharts.com, retargeting is the most underutilized online marketing technology - ahead of geotargeting, traffic source optimization, keyword targeting and category targeting.

If you do decide to try the technology, make sure that your measurement tactics include brand affinity and future purchase intention analysis, as the clicks from the display ad generally don't tell the whole story. Last but not least, make sure that you ask the ad company where your ads could potentially show up. Sometimes, people have found that their ads showed up on sites that weren't exactly representative of their business model.

Have you tried ad retargeting or any other relatively new online marketing tactic? What did you think about your experience?

Posted by Therran Oliphant, Account Representative, Commercial Vehicle Market, Polk (07.14.2010)

NY vs. Detroit - The Automotive Mix

Monday, July 12, 2010 by Tom Libby

I have recently moved to the New York metropolitan area after spending 11 years in Southeastern Michigan. Although Polk market area reports have been at my disposal since I began employment with Polk, it was still a shock to witness first-hand the differences on the road. At first I was shocked, but I'm finally getting used to it.

Things I've noticed:

I can drive for 10 minutes, maybe more, and never see a domestic car.
Often when I pull up to a stop light, every vehicle in sight is either an Asian or European brand.
While driving on the interstate, every vehicle is an import.
Occasionally I will look around and every single vehicle within my sight is a Toyota-manufactured vehicle. I have even seen three or four Camrys right next to each other.
The only domestic vehicles you'll find in NY are the high-volume ones, such as the Chevrolet Malibu, Ford Fusion, and Ford F-Series. The lower-volume domestics, such as the Dodge Caliber, are non-existent. I have been here six months, and I can count on one hand the number of Calibers I have seen.

Polk's automotive marketing area reports reflect the automotive mix on paper, but the true testament for me has been driving in it daily. Seeing really is believing.

Posted by Tom Libby, PolkInsight Advisor, Polk (07.12.2010)

Four-Cylinder Powertrains Steadily Gain Market Share

Friday, July 2, 2010 by Tom Libby

The accompanying chart illustrates the gradual but undeniable trend toward more and more four-cylinder engines in the cars and light trucks Americans are buying. The chart also shows this trend has accelerated in the past two years.

Notes: 2Q 2010 includes April only; powertrains other than 4, 6 and 8-cylinders not included in calculations

In 2007 vehicles powered by six-cylinder engines still accounted for more than 40% of the retail U.S. new vehicle market, even though their mix was easing slightly. However, starting in the second quarter of 2008, which not coincidentally was when gas prices temporarily spiked to more than $4 a gallon, we have witnessed a more dramatic move towards the smaller engines and away from six- and eight-cylinder powertrains. This past April, the only month in the second quarter for which we have new vehicle registrations, the four-cylinder mix approached 50%, compared to a little over a third in the second quarter of 2006. Six-cylinder and eight-cylinder installation rates have both plummeted six points since 2006, with the eight-cylinder proportion now only about a sixth of the market.

As OEMs launch more and more four-cylinder (or smaller) powered vehicles to meet stringent mid-decade CAFÉ requirements, it is inevitable that the four-cylinder mix will rise even more. It also seems like a legitimate question to ask whether or not, in the long run, the eight-cylinder configuration will even survive in the U.S. automotive market.

Posted by Tom Libby, PolkInsight Advisor, Polk (07.02.2010)

Lincoln - Reinventing Itself

Thursday, July 1, 2010 by Lonnie Miller

As I head into my "mid-somethings" the Lincoln brand has caught my eye (did I really just type that? Yes!). One of my dear friends who works for Ford Motor Company does a nice job of showing me what they are doing to their vehicle line up and nudges me to look at more and more of the Ford products, especially in the luxury market. Over the last year, Lincoln has landed on my "future short list" of cars I'd consider buying. And not due to any ads or cool automotive marketing tactics.

While last week's article in the Wall Street Journal alludes to Lincoln still being a stodgy brand, they do show how the luxury marque is making progress. I'm rooting for them. Have you seen the new MKZ? Gorgeous. I never thought I'd be saying this, but this brand has something to offer.

Are you seeing what I'm seeing with some of the domestic OEM luxury brands? Cadillac...you've done great work lately and have done nicely at attracting a younger buyer base (which Lincoln still needs to work on)... but I'd keep a close eye on this cross-town rival. Something's brewing.

Posted by Lonnie Miller, Vice President, Marketing & Industry Analysis, Polk (07.01.2010)

Marchionne Gambles Once Again – Creating a Fourth Chrysler Group Brand

Monday, June 21, 2010 by Tom Libby

One of the changes Sergio Marchionne made when he became CEO of the Chrysler Group in 2009 was to create a new brand, Ram. This brand includes the Ram and Dakota pickups, while the Dodge cars, crossovers and minivan remain under the Dodge moniker. This was a bold move, though not uncharacteristic of Marchionne. In the last decade two new brands have been successfully launched in the U.S. light vehicle market (Mini and smart), while nine have been discontinued (Geo, Daewoo, Hummer, Isuzu, Mercury, Oldsmobile, Plymouth, Pontiac and Saturn). Furthermore, in the last 30 years only eight makes have been introduced successfully (including Mini and smart) out of a total of 37 brands now on the market. The data would seem to support the theory that American consumers will spend big bucks only for a known quantity. This suggests Mr. Fred Diaz, the CEO of the Ram brand, and his team have their work cut out for them.

There is some confusion as to whether or not Chrysler has completely separated Ram from Dodge. Type in Ram.com on your internet browser, and you get Risk Assessment and Management. Go to the Autodata Corp. monthly U.S. sales report for May, 2010, and the only place you'll find the Ram pickup is among the Dodge models. And if you want to look at the new Ram, you'll need to visit your local Dodge store as there are no Ram stores. On the other hand, Mr. Diaz says the Ram will never be marketed as the Dodge Ram (see Automotive News article, March 29, 2010) and new advertising supports that assertion. The Ram situation is a bit reminiscent of Geo, which was a separate GM brand whose products were sold at Chevrolet dealerships. Geo no longer exists.

So far the Ram branding/marketing strategy is having mixed results, though it's still early. Through five months this year (based on sales reported by Autodata Corp.), sales of the Ram (1500 – 3500) are down 14%, while the F-Series is up 35%, the Silverado is up 9%, and the segment is up 14%.

The risks to this branding strategy include: potentially weakening the Dodge brand with the removal of one of its most popular and visible models,and confusion for the consumer about what Ram and Dodge are and are not. Chrysler has reduced the risk by minimizing retailer investment through keeping the Ram franchise inside Dodge facilities. The potential rewards – big ones - include more clearly defined images for both the Dodge brand and the Ram pickups. Both of these rewards would help substantially as the two makes compete in the ultra-competitive mainstream non-premium part of the U.S. new vehicle market.

Posted by Tom Libby, PolkInsight Advisor, Polk (06.21.2010)

Electric Vehicles - The Debate Continues

Monday, June 21, 2010 by Lonnie Miller

The EVs (electric vehicles) are coming and leaders throughout the auto industry are betting that you and I will relish the fact that we'll be stopping at a fuel station less frequently and thinking highly of ourselves for pumping fewer particles into the air. But will we trust these cars or trucks to get us back home on the battery power they will be equipped with? Have you heard of "range anxiety?"

For EVs to be successful and for the adoption of this new technology, consumers must be certain they can get from point A to point B and back on a single battery charge. The debate is whether EVs should be pure electric or whether they should be equipped with a fuel-assisted component that lets us drive, without fear of the battery dying and stranding us. This morning, Automotive News shares different views held by GM, Nissan, BMW and Ford. The jury is still out.

So tell me: if you had to buy an electric vehicle for your next purchase, would you want a back-up system for the battery or not? What do you trust based on what you know or have heard?

Posted by Lonnie Miller, Vice President, Marketing & Industry Analysis, Polk (06.21.2010)

Does the Automotive Marketing Discipline Lack Focus?

Thursday, June 17, 2010 by Guest Blogger

I would like to throw a question out to this community – does the automotive marketing "discipline" lack focus? Let me give you some background for my question...

Earlier this month, I had the opportunity to attend and also speak at the Thought Leadership Summit (TLS) 2010 Automotive Customer Centricity Summit. The topics included:

The Near Term Future in the Auto Space (Thilo Koslowski, Gartner)
Integration of CRM Data and Transactional Information (Chris Cawston, SCI)
Hyundai Motor America Positioning and Growth (David Zuchowski, Hyundai)
Localized, Data Driven Marketing (Lucette Mercer, Comcast)
The Evolution of Lead Scoring (Yours truly!, Polk)

It was an excellent experience and as always, I enjoyed spending time with others closely engaged in the automotive marketing space. This is the fourth TLS conference I have attended, having chaired the event the previous two years. I have participated in and presented at many similar conferences. Invariably, I have seen many interesting marketing ideas from/for OEMs, agencies, and dealers. What one rarely sees, is any research or strategy or plan detailing what activities are going to have the most impact on the consumer and generate vehicle sales and/or service. For example – is it more important to run a highly efficient owner data management and communications program, or is it more important to have well trained staff within the dealership that know how to nurture and close the sale?

So, to restate the question, what should be the focus of all these billions of dollars that are spent on automotive marketing, assuming all players – OEMs, dealers, agencies, and vendors -- are working together? (I know it is a huge, somewhat unrealistic assumption, but just go with it for now...) I am not asking which media is more effective or how should we approach social networking -- I want to know what, in the whole process of driving consumer interest and sales, at all levels from the OEM to the dealer, is the most important activity, maybe what is next most important and why. If this could be discussed, understood, and validated, then those that execute guided by that discipline would win.

Posted by Mike Spadafore, Manager, Consumer & Commercial Portfolio, Polk (06.17.2010)

Mini's Audacious Challenge: Part II

Tuesday, June 15, 2010 by Paula Skier

Much to my disappointment (but not surprise), Porsche has declined to participate in Mini's road race challenge pitting the Cooper S against the 911 Carrera S at the Road Atlanta racetrack. But in keeping with its "little OEM that could" persona, Mini is not giving up.

Mini USA's president, Jim McDowell, has issued yet another personal challenge to Porsche Cars North America's CEO, Detlev von Platen. Take a look.

As the proposed race day (June 21) approaches, Mini has unleashed yet another creative, multi-channel automotive marketing tactic. They reportedly flew a banner plane over Porsche's Atlanta-based headquarters with a message reading, "Dear Porsche, Bring it. Love, Mini." If that's not enough, perhaps Porsche will be enticed by the new prizes being offered -- including a lifetime membership to the Salami of the Month Club. Or by the petition being circulated on Mini's official Facebook page, another social media coup.

I wouldn't bet on this race happening anytime soon, but it doesn't really matter. Mini is the winner for showing audacity, personality, and a great sense of humor. What a brand!

Posted by Paula Skier, Director, Strategy & Planning, Digital Marketing, Polk (06.15.2010)

Mini's Audacious Challenge - A Multi-Channel Marketing Campaign of Fun

Thursday, June 10, 2010 by Paula Skier

Ok, here's an example of an OEM using multi-channel automotive marketing tactics to execute a campaign that’s got something for everyone. Even those like me, with no chance of buying a Mini or a Porsche in the foreseeable future, can't look away.

It's a road race challenge with something for everyone. Think of it: Mini Cooper vs. Porsche 911. It's got humor (just look at the cars next to each other and you can't help but smile).

It's got social appeal. Watch this YouTube video featuring Mini's Jim McDowell, a former Porsche employee, issuing a personal challenge to Porsche's Detlev von Platen. It's got a bit of marketing genius (no matter what happens, Mini wins with great publicity). And it's a great example of using multi-channel tactics – from digital marketing like online video and social media, to traditional print ads in the NY Times – to execute a creative and appealing campaign that's spot on for a brand like Mini.

Porsche is reportedly considering the challenge, although they stand to lose big time if, against all odds, they get beaten on the track by Mini. Personally, I hope to see this race become a reality on June 21. Will it influence my future car buying decision? Probably not. But if I were a viable target for either of these brands, you can bet this campaign would earn my consideration.

What do you think?

Posted by Paula Skier, Director, Strategy & Planning, Digital Marketing, Polk (06.10.2010)

Car Production in Germany Moves into High Gear

Wednesday, June 9, 2010 by Guest Blogger

For the first five months of this year, the production of cars in Germany rose by a remarkable 26%. It was just a few months ago that the German OEMs reported a 10% decline in their production volumes for 2009 due to strong export reductions (-17%). Only the European scrappage schemes prevented the automakers from an even sharper downturn. These trends intrigued me, so I took a closer look at the significant comeback the German auto industry is making so far in 2010.

Given the German OEMs were impacted by the worldwide economic crisis, especially between the fourth quarter of 2008 and the second quarter of 2009, it is difficult to make a direct comparison with past car production trends. Nevertheless, the output of the first five months of 2010 is only 6% below the record car production level seen in 2007. As for the exports, the May YTD figure shows a 50% increase over last year. While this is a large increase, exports were extremely low during the first few months in 2009.

Exports are currently the only component to give impetus to the production in Germany. The domestic car demand is expected to fall 25% this year due to the expiration of government incentives. For 2010, we expect that 77% of the cars produced in Germany will be exported, as opposed to a 69% export rate in 2009. Incoming orders from foreign markets make the industry look quite optimistic in the medium term. Polk predicts that exports will reach 4.25 million cars in 2010, the second best year ever. Production is currently expected to be 5.5 million units, which would make 2010 the third best year in history — not bad for the first year after the most severe automotive industry challenges ever faced.

Click here to see the latest forecast for German Passenger Vehicle Sales.

Posted by Thomas Mawick, Manager, Automotive Studies, Polk, Essen, Germany (07.09.10)