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Phil Swartz

Phil Swartz Sales Manager

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Dirty Advertising, The Man vs The Little Guy

As more and more topics of OEM mandates and co-op programs arise in the automotive forums, I want to ask all of you what would take place in a real scenario.  9220922a73c45cbc4529d413c45476cc.jpg?t=1

 

My stance on the topic is neutral. 

 

There are plenty of providers that exist to help automotive dealers with products and services.  Let’s use the following two products for the hypothetical.  Websites as the mandate and Paid Search as the Co-Op.

 

Here is the scenario:  

 


Two Chrysler dealers just outside of Coppell, TX.  Dealer 1 in business since 1989 and dealer 2 a more modern dealership built in 2001.  Both are run by large organizations and have over 400 new Chryslers in stock.  

 

Dealer 1:  OEM mandate website and using that same provider at the top tier for OEM co-op dollars.

 

Dealer 2:  Using a smaller company that utilizes responsive website technology.  Also, using a different company to manage paid search.

 

 

(and, let’s say the smaller digital marketing company is a reputable outfit known as an industry leader.)

 

Dealers 1 & 2 use the same lead providers and their budgets are comparable.

 

Specifically, should the dealer that uses non co-op’d dollars and a non-mandated website see better results than using the OEM preferred programs?

 

 

I'm Phil Swartz. "May the Swartz be with you..."

Mark Dubis
The dealership with the sales and service team that provides the best customer experience and that has the highest customer loyalty will win. Yes, they still need to market and advertise but they have a more compelling story to tell prospects. They should also have validation of their people via reviews from a third party, not just cherry-picked reviews on their own sites. The goals of the OEM and the dealer do not always align, and dealers are aware of that so they need to "watch out for themselves. . . co-op or no co-op. Clearly some vendors on the co-op program are not worth the money spent on their services. The best SEO program is useless if the dealership doesn't care about their customers and/or their employees.

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