Retail Marketing Management: Automotive Industry

By Wassim Derbi

"RETAIL MARKETING MANAGEMENT” IS AN INVALUABLE RESOURCE FOR AUTOMOTIVE MARKETERS SEEKING TO STAY AHEAD OF THE CURVE, OFFERING PRACTICAL INSIGHTS, CASE STUDIES, AND ACTIONABLE STRATEGIES TO DRIVE SUCCESS IN A RAPIDLY EVOLVING INDUSTRY. THE BOOK ALSO DELVES DEEP INTO DIGITAL MARKETING AND ITS TRANSFORMATIVE IMPACT ON THE INDUSTRY, DISSECTING THE USE OF SOCIAL MEDIA, ONLINE ADVERTISING, AND DATA ANALYTICS WHETHER YOU'RE A MARKETING PROFESSIONAL OR AN AUTOMOTIVE ENTHUSIAST, THIS BOOK OFFERS A FRESH PERSPECTIVE ON MARKETING IN THE AUTOMOTIVE SECTOR. IN THIS BOOK YOU WILL LEARN ABOUT: PRODUCT LAUNCH PLANNING DEVELOPING MARKETING STRATEGIES CAMPAIGN & PERFORMANCE MANAGEMENT DIGITAL MARKETING NEGOTIATION TACTICS CUSTOMER RELATIONSHIP MANAGEMENT

• Language: English
• Publisher: Austin Macauley Publishers
• Release date: Mar 29, 2024
• ISBN: 9789948797746

Wassim Derbi

Wassim Derbi is a marketing virtuoso with a keen focus on retail marketing and CRM, boasting over a decade of experience in the automotive industry. He kick-started his marketing education by earning a bachelor’s degree from Canada and polished his expertise by obtaining an MBA from the United States of America in 2011. Throughout his illustrious career, Wassim has collaborated with an array of esteemed automotive brands, including Hyundai, Genesis, Mercedes-Benz, Nissan, INFINITI, and Renault. He was also one of the pioneering members of the committee that introduced the first Nissan interactive e-commerce platform in the GCC & Middle East region by Al Masaood Automobiles in 2019. His exceptional work and innovative approach earned him many accolades, including the CEO Special Award from Al Masaood Automobiles in 2020 for his achievements and the Innovative Employee Award in 2021. Wassim’s profound knowledge and proficiency in marketing and communications, together with the experience of managing his family business ‘Canadian Bureau’, one of the leading businesses in the immigration & citizenship by investment sector in U.A.E, led him to publish his first educational book, ‘Retail Marketing Management,’ a comprehensive guide to key retail marketing and CRM aspects from an automotive industry perspective. The book delves into the emergence of new business models, digital marketing, product management, the impact of reshaped shopping behaviors on operations and much more. As an expert in premium-end and mass media marketing, Wassim’s expertise is unparalleled. He remains dedicated to honing his skills and perfecting his craft in the ever-evolving world of retail marketing.

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Dedication

I am forever indebted to my beloved parents, whose guidance, support, and selfless actions have profoundly influenced the person I am today. This book is a tribute to their unwavering support and belief in my dreams. To my wife, who has been the pillar of strength and endless inspiration, thank you for standing by me through every twist and turn. Your encouragement and camaraderie have been invaluable. I also extend my heartfelt gratitude to all those who have supported my career, from mentors to friends, and colleagues who took a chance on my work. This book is dedicated to each one of you, my eternal sources of motivation and encouragement.

I dedicate this book with profound gratitude to my parents, whose unwavering love and encouragement have been the cornerstone of my journey. They instilled in me the values of perseverance and passion, and their unwavering belief in my abilities has fueled my ambitions. To my friends, who have stood by me through triumphs and tribulations, your unwavering support has been my anchor in times of doubt. I am forever grateful for your uplifting words and unwavering loyalty. Finally, to everyone who has supported my career, whether through mentorship, guidance, or simply being a cheerleader from afar, you have played an integral role in shaping my path. This book is a testament to our collective triumphs, and I dedicate its success to all of you.

Wassim Derbi

Wassim Derbi is a marketing virtuoso with a keen focus on retail marketing and CRM, boasting over a decade of experience in the automotive industry. He kick-started his marketing education by earning a bachelor’s degree from Canada and polished his expertise by obtaining an MBA from the United States of America in 2011.

Throughout his illustrious career, Wassim has collaborated with an array of esteemed automotive brands, including Hyundai, Genesis, Mercedes-Benz, Nissan, INFINITI, and Renault. He was also one of the pioneering members of the committee that introduced the first Nissan interactive e-commerce platform in the GCC & Middle East region by Al Masaood Automobiles in 2019.

His exceptional work and innovative approach earned him many accolades, including the CEO Special Award from Al Masaood Automobiles in 2020 for his achievements and the Innovative Employee Award in 2021.

Wassim’s profound knowledge and proficiency in marketing and communications, together with the experience of managing his family business ‘Canadian Bureau’, one of the leading businesses in the immigration & citizenship by investment sector in U.A.E, led him to publish his first educational book, ‘Retail Marketing Management,’ a comprehensive guide to key retail marketing and CRM aspects from an automotive industry perspective.

The book delves into the emergence of new business models, digital marketing, product management, the impact of reshaped shopping behaviors on operations and much more.

As an expert in premium-end and mass media marketing, Wassim’s expertise is unparalleled. He remains dedicated to honing his skills and perfecting his craft in the ever-evolving world of retail marketing.

Copyright Information ©

Wassim Derbi 2024

The right of Wassim Derbi to be identified as author of this work has been asserted by the author in accordance with Federal Law No. (7) of UAE, Year 2002, Concerning Copyrights and Neighboring Rights.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publishers.

Any person who commits any unauthorized act in relation to this publication may be liable to legal prosecution and civil claims for damages.

The age group that matches the content of the books has been classified according to the age classification system issued by Ministry of Culture and Youth.

ISBN 9789948797739 (Paperback)

ISBN 9789948797746 (E-Book)

Application Number: MC-10-01-9048162

Age Classification: E

First Published 2024

AUSTIN MACAULEY PUBLISHERS FZE

Sharjah Publishing City

P.O Box [519201]

Sharjah, UAE

www.austinmacauley.ae

[phone]

Introduction

Automotive dealerships are undergoing several transformations from the traditional ways of operation especially after the recent pandemic, which accelerated the shift toward a more digital world, reshaped shopping behaviors and led to an emergence of new business models across the globe. The retail sector experienced a decade of growth in digital penetration in only a few months! Today’s customers haven’t only changed their preferences and tastes in cars, but also in post-purchase service expectations, the online shopping experience, and personalized interactions. Digitalization, technological advancement, personalization, & convenience are key drivers of the changes we now encounter in the automotive industry. Successful car dealerships today are out there in the market not to move metal, but rather to sell an exceptional experience.

Embracing an optimal customer experience is the current and future strategy for setting your brand apart, enhancing customer retention, and ultimately fostering unwavering customer loyalty. Customers will consistently remain loyal to a dealership that prioritizes maximum customer satisfaction, convenience, and consistently provides innovative solutions. The cause for concern lies in the fact that if you fail to capitalize on such modern trends, you may be forfeiting opportunities for your car business. Customers enjoy a wide range of options today, and brands are competing to offer top-notch customer service to meet these expectations and win their loyalty. Dealerships that care to listen and react with innovative measures would continue to survive and possibly even lead the market. According to McKinsey and Company’s article issued on May 21, 2020 Among the most vexing challenges is determining which customer behaviors and trends are here to stay and which ones will eventually recede. Companies that invest in the wrong capabilities could find themselves on the outside as competitors that can offer exemplary customer experiences cement their advantage. In summary, businesses that decided to put the customer at the center of everything they do, constantly reimagined how customers will engage with their brand in the future, and developed strategic digital roadmaps, would continue to thrive, maximize growth and build loyalty.

The automotive industry holds a significant global impact, both economically and culturally. It is a complex ecosystem involving manufacturers, suppliers, dealerships, and consumers, all interconnected through intricate marketing networks. Exploring the marketing dynamics within this industry allows for a deeper understanding of its influence on economies, societies, and individual lifestyles. By shedding light on effective marketing practices in this sector, the book can contribute to the success and growth of businesses operating within the automotive industry.

In this book, I illustrate a few insights into the global shifts and changes in the automotive industry, which are impacting the nature of retail marketing operations today. By the time you finish reading this book, multiple other trends and innovations will have been discovered in the market that will influence the retail business even further.

I kick off this book by throwing it back into the memory lane of how it all started. It’s easier to understand the changes if we know what things looked like at the start. Afterward, I examined changing customer behavior, and the rest of this book focuses on practical marketing practices and strategies from an auto dealership perspective.

I’m intentional about practical content and reducing ambiguity; this explains why I chose simplicity, examples, and illustrations to paint a vivid picture of a selection of essential points.

I wrote this book to provide a guide to some important aspects of retail marketing and customer relationship management in a car dealership operation. I am confident that you will find the thoughts, practical applications and concepts in this book insightful and can be carefully replicated and implemented in your local market even beyond the automotive industry. Besides, some of these practices or solutions that I state in this book are based on my opinion and experience, which some of you may find subjective and debatable depending on your background or opinion.

My personal passion for both marketing and automobiles inspired me to undertake this endeavor. Combining my expertise in marketing management with a deep fascination for the automotive world, I am driven to share my knowledge and insights to benefit others. The book becomes a platform to share my experiences, research, and expertise, with the aim of fostering growth, innovation, and success within the automotive marketing realm.

Ultimately, writing a book about Marketing Management in the automotive industry allows me to contribute to the advancement of marketing knowledge, support professionals in the field, and promote the growth and prosperity of businesses within this dynamic sector. It is my hope that this book will become a valuable resource and guide for anyone seeking to navigate the complexities of marketing within the automotive industry.

Our concentration should extend beyond selling desirable vehicles; we are now in the business of selling an optimal experience!

Wassim Derbi

Chapter One

Changes in the Automotive Industry and

Customer Behavior

The automotive industry has undergone a lot of changes and if the automotive industry were a person, we would have cheered it on for the tremendous growth and milestones achieved in the past decade. The growth in the industry has been nothing short of remarkable, with technology, increased competition, and customer behavior being strong drivers of the changes we see. The earliest form of these changes began when automobiles became more than just a means of mobility.

Currently, the automotive industry is one of the largest industries by revenue. An industry with Nissan and other luxury car brands can only amass more and more wealth. Today the future of the automotive sector tilts toward electric cars, Hybrids, customized experiences, and autonomous driving. Developers are testing the odds of autonomous driving; we will have cars driving themselves aided by artificial intelligence shortly. Guess what? It’s already happening; a driverless taxi has been unveiled in Dubai! The autonomous taxi services will be delivered by US-based self-driving technology company Cruise, a subsidiary of General Motors (GM), following its exclusive partnership with the Roads and Transport Authority (RTA) until 2030 according to Khaleej Times.

Gaining an overview of the automotive industry’s history and its evolution over the decades, particularly in recent years, is crucial for comprehending the changes that have taken place to align with shifting customer behaviors.

History of Automotive Industry

Before the advent of automobiles, steam-powered vehicles were the trend. It was not until 1870 (between 1860 and 1870) that gasoline engines were developed in France and Germany. In 1886 Karl Benz invented the world’s first automobile (Patent-Motorwagen) powered by a gas engine, which revolutionized the industry at the time; later, in 1901 the first modern motor car with 35 HP was introduced by Daimler-Motoren-Gesellschaft deviating away from the traditional carriage design and becoming a global standard for automobiles.

The close of the twentieth century featured more and more production of gasoline engines in Germany, France, Italy, Britain, and America. These countries were not the only ones that attempted automobile production. Many countries and individuals who had the capital gave it a shot at producing cars. The market swallowed the feeble manufacturers and investors; prospective customers were fed to more favorable developers.

After World War II, the world at large experienced a 10X increase in patronage for the automobile industry. The successive years featured improvements to the existing innovations (vehicles). There were noticeable changes in design, and more luxurious car designs began to catch the market’s attention. Gas engines became customary for trucks and buses, while fuel-powered engines were for cars. Companies merged production units to cut production and distribution costs across countries. Japan’s producers set up production units in America and other countries because of international restrictions on export.

The trend in the market always favors independent producers who can produce in bulk. Present-day manufacturers use templates from the most successful producers in history. Manufacturers mandate a cash for sale policy for dealers who buy their cars. In return, the dealers enjoy specific promotional advantages to fast-track their sales. By setting up plants in different countries, manufacturers have also reduced unnecessary transport and supply costs.

In the past, manufacturers produced all the necessary materials for building a complete vehicle. Later, they tilted toward outsourcing around 70 to 80% of a car’s parts to save costs and receive high quality parts produced by experts in the field. This has brought about increased competition amongst suppliers and technological exploitation in the production of car parts. This alliance has allowed the suppliers to focus on more innovative products for the automotive industry. For