Paglia Honda Zone 9 - Integrated Marketing and Advertising for Honda Dealers

Agenda 7:30 am – 8:45 am Breakfast 9:00 am – 9:10 am Welcome & Opening Remarks 9:10 am – 9:40 am Steve Jaros – Assistant VP/Eastern Region 9:40 am – 10:10 am Christan Miller – Zone Sales Manager 10:10 am – 10:35 am Jeff Williams – Sr. Mgr/ Sales & Marketing (AHFC) 10:35 am – 10:40 am “The Honda Guitar Heroes” 10:40 am – 11:00 am BREAK 11:00 am – 11:25 am Ron Lybrook – Assistant VP/Parts & Service 11:25 am – 12:15 pm Gerry Rubin – Co-Chairman (RPA) 12:15 pm – 12:25 pm Peggy Proko – Zone 9 NDAB Chair 12:25 pm – 12:30 pm Christan Miller – Zone Sales Manager 12:30 pm – 1:30 pm Lunch 1:30 pm - 3:00 pm Ralph Paglia – VP Tier 10 Marketing Integrated Marketing – Civic Launch 3:00 pm – 3:15 pm BREAK 3:15 pm - 3:30 pm Gerard Harrington – Zone Manager PI 3:30 pm – 3:50 pm Randy Smith – National Manager PI 3:50 pm – 4:00 pm Close

Ralph Paglia Vice President Tier 10 Marketing Ralph@Tier10Marketing.com www.Tier10Marketing.com www.ADMPC.com www.2012CivicLaunch.com

Ralph Paglia Nationally recognized speaker and author on Automotive Digital Marketing, Advertising, Lead Management and CRM Practices Led team that generated and managed 144,000+ leads at a single-point Phoenix dealer in 2 years Managed dealership sales team that delivered 4,000+ vehicles to Internet Leads and website phone calls in 2006 20+ year background in developing Integrated Marketing strategies and lead management implementations for dealers and car companies Managed first retail automotive pilot program for Google Audio while in beta testing at Courtesy Chevrolet in 2005, 2006 and 2007 Started generating Internet leads in 1986 using CompuServe ISP access and vehicle listings on defense contractor BBS’s in San Diego Reynolds Consulting/Cyber Car Catalyst of the Year in 2001 AAISP/Digital Dealer Magazine Internet Sales Manager of Year 2006 Digital Advertising Program Director at ADP Dealer Services

Integrated Marketing Process 1. Market Research Use market research to identify consumers that have the highest statistical probability of doing business with your dealership. Tier 10 uses the manufacturer’s research, Polk Market data and the dealer’s historic sales and service trends to plan which customers to target in the future.

2. Traditional Advertising Traditional advertising on TV, radio and print is expensive in New York, like other major metro markets. As a result, Paragon shifted a lot of their traditional ad budget to more targeted marketing that generates better returns. However, since Latinos make up half of Paragon’s market, they have leveraged some good buys on Spanish radio, as well as, print ads in the New York Times where they include QR technology, a barcode that links consumers’ mobile phones to Paragon’s website where they can learn more about the offer and contact the dealership

3. Online Marketing Over 90% of Honda consumers use the web to shop so Paragon implemented an in-depth strategy for search engine optimization and marketing, email marketing, banner ads on popular websites like Facebook, social media marketing, online reputation management and mobile marketing.

4. Search Engine Marketing Since the majority of consumers use search engines to find their next new vehicle, Paragon uses organic Search Engine Optimization (SEO), Video Search Engine Optimization (VSEO) and targeted pay-per-click search marketing campaigns to attract in-market consumers who are shopping for Acuras and Hondas to their website and dealership.

5. Micro Sites All of Paragon’s digital marketing efforts drive consumers to a campaign micro site where the message, offers, look and feel are consistent with every other part of the campaign. The campaign micro site is designed to convert the maximum number of visitors into email, phone and showroom leads. Here are some examples of micro sites we currently use: ,[object Object]

www.ParagonExpressService.com,[object Object]

7. Reputation Management Today’s consumers rely more on other consumers’ reviews than advertising, so Online Reputation Management is a top priority at Paragon. When consumers Google Paragon they will find out about all the things they are doing in the community and they will be able to read positive reviews from satisfied customers.

8. Targeted Marketing Paragon communicates with all in-market Honda and Acura consumers by sending custom offers based on their vehicle, miles and position in their ownership cycle. Paragon sends custom campaigns via mail and email to promote all their profit centers, New, Used, Finance, Service and Parts. We dial into Paragon’s DMS to target in-equity customers and we use variable printers to send a custom message to each consumer that shows them how they can get a newer vehicle for a lower payment.

9. Niche Marketing Paragon created a corporate purchase program to employees of large organizations in their market that gives them special pricing and service when they do business at Paragon. Paragon sends an information package to the HR department of the largest organizations in their area to ask them if they want to give this free benefit to their employees. If a company wants to join the program they receive a communication kit from Paragon that explains the program to their employees. Companies have the option of having brochures customized with their logo and sent to their employees directly so they don’t even need to stuff their payroll envelopes.

10. Merchandising When you walk into Paragon Honda and Acura, it is obvious something is going on. Even if consumers don’t know about their sale the merchandising quickly reminds them that they are lucky they stopped by at the right time. The dealership has extensive POS Merchandising that promotes the Paragon Guarantee and Paragon’s Certified Pre-Owned Vehicles.

The Result Paragon Honda and Acura grew from #17 to the #1 New and Certified Pre-Owned Honda & Acura Dealer in the U.S. in a short 6 month period. “Overall, it was our best year in business despite being the worst year in the industry,” said Brian Benstock, GM and partner of Paragon Honda “We had a record year for volume and profitability during a record low year for the car business.”

2012 Honda Civic Launch Dealer Integrated Campaign American Honda Motor Company Zone 9 - Northeast Region

Creative: The 2012 Honda Civic Upgrade Program

2012 Honda Civic Launch Dealer Integrated Campaign Creative: Direct Mail

Creative: Print Ad 2012 Honda Civic Launch Dealer Integrated Campaign

POS: Poster 2012 Honda Civic Launch Dealer Integrated Campaign

2012 Honda Civic Launch Dealer Integrated Campaign POS: Hang Tags

2012 Honda Civic Launch Dealer Integrated Campaign Web Banner

2012 Honda Civic Launch Dealer Integrated Campaign Video

Action Plan Response to “A message from Steve Jarosand David Hendley”

2012 Civic Launch Dealer Readiness Get your sales staff together and develop plans on how you will get the 2012 Civic message to your customer database. Will it be a preview night, special invitation only event, or a direct mail campaign that offers a special incentive to come by and see the all-new 2012 Civic? Correct Answer: All The Above! Use highly targeted Direct Mail combined with Email campaigns to drive showroom traffic…

How can you tie into local events in late April to May time frame? ,[object Object]

Sponsor Prom Night Alcohol Free after parties featuring new 2012 Civic at event

Sponsor College Spring Formals for Fraternities and Sororities and showcase the new 2012 Civic at events ,[object Object]

Promote with Blogs and Tweets using popular college and school hash tags

Develop College Internship Program where Interns must use social media marketing to generate 2012 Honda Civic test drives,[object Object]

Local Press Ride and Drive day event

Radio talk show call in appearances by dealer

Dealer interview on TV news report about rising gas prices and the innovation of Civic GX,[object Object]

Honda Owner Clubs – Send representative to present the 2012 Civic at monthly meetings,[object Object]

Integration from a strategy perspective

Evolution in a dealer’s planning paradigm Marketing plans must answer the questions: + Where do car buyers want to engage with us? + Where do we want to engage with them? + How can we make it easier to engage with us?

Strategy development tips + Acknowledge the need for integration + Think beyond short term campaigns + Elevate your tracking and analytics expectations + Hold everyone on your marketing team accountable for integration

Integration from a media perspective

Evolution in planning paradigm Civic Launch campaign media plans must answer these questions: + How can we share intelligence between media disciplines? + Do all media channels support a uniform message? + Can consumers find us when/ where they want? + How can we track their behavior to make smarter marketing/ business decisions?

Solution Lead strategically, not tactically + Bring everyone together during an initial 2012 Civic kick off to plan in a strategic and integrated fashion + Leverage media disciplinary experts (e.g. social media)

Solution Integrate reporting and assign media channel KPIs + Segmented reports do not illustrate the big picture

Solution Every discipline affects a marketing ecosystem, so everyone is accountable for output. + Attach goals to various departments and make sure everyone is onboard with the integrated marketing plan. + I’m on a horse: Do you think the social media and video teams for the Old Spice campaign planned in isolation?

Solution + Plan for every iteration of your 2012 Civic launch campaign and don’t sell yourself short. + Before you initiate your 2012 Civic launch campaign, take pause to see any gaps that are easily overlooked when you’re knee deep in execution

Key 2012 Civic launch integration points + Paid search and SEO + Display and paid search + Online and offline + Social and paid search + Email and social + Website + EVERYTHING…

% of car buyers that found the car they bought on-line 70+%

Why doesn’t dealer advertising have the same impact on sales that it had a few years ago? 1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007 2. 2006 National Automobile Dealers Association Data

“Which information source was most important when making decisions about buying your vehicle?” R.L. Polk 2010

Are You Ready for Battle? Toyota’s Mission is to take Civic Buyers…

2012 Honda Civic VideoPre-Roll Lexus CT Advertisement

Integrated Advertising Phase 1 Approach Do-It-Yourself Digital Advertising Although it may seem complex, many forms of digital advertising can be done without extensive training. We share with you some of the latest ways you can get started, many of them at no cost!

Integrated AdvertisingPhase 2 Approach Digital Advertising Setup & Training An introduction to the tools, processes and know-how needed by dealers to get up and running with online advertising – 2 days of in-dealership hands on process definition, building and launching actual campaigns! Day 1 Campaigns Setup Day 2 Campaigns Launch

Full Service Digital Advertising Solution Partner with a qualified service provider to provide your dealership with some of the most advanced advertising solutions that are available today. Integrated AdvertisingPhase 3 Approach

Search Engines are the primary tool used by car buyers for filtering dealerships Dealer Websites are now an extension of the dealer’s showroom and local brand What you need to knowPre-Selection Filters - Car Buying Starts on Web Are you planning your advertising for maximum effectiveness?

Geographic Target car buyers in specific locations Behavioral Target prospects whose recent online behaviors indicate high interest in purchasing a car Contextual Target prospects while they are viewing automotive-related content on the Internet Demographic Target prospects based on your ideal market demographics Retargeting Target prospects who have already visited your website – leverage all media Types of On-line Targeting

Paglia Honda Zone 9 - Integrated Marketing and Advertising for Honda Dealers

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Paglia Honda Zone 9 - Integrated Marketing and Advertising for Honda Dealers