Chapter 18 Sales Promotion and Personal Selling

Marketing managers can use sales promotions to increase the effectiveness of their promotional efforts and to offer incentives to buy. In terms of sales promotion, Audi doesnt  promote itself as much as other car companies (such as Toyota, Honda, and Nissan etc) when it comes to sale promotions and deal offers that happen at the dealership level. The reason for this is because Audi has already established itself as one of the most luxiours car brands in the world along side with other  luxury car brands such as BMW, and Mercedes and does not feel the need to promote sales knowing they will still attract customers regardless of promotional sales. Although, Audi will hold special incentives such as the "Audi Owner Loyalty Incentive" for returning Audi customers that currently own or lease any model year 2001 or newer Audi vehicle. Based on which 2012 Audi vehicle you choose , this loyalty offer extends $500-$1,500 towards the lease or $1,000-$3,000 towards the purchase of the customers next Audi vehicle. With all that said Audi's main focus is on personal selling.

 

 Personal selling offers both advantages and disadvantages in comparison with other elements of the promotion mix. It allows the salesperson to target the message specifically to the audience and receive immediate feedback. In this way, it is more precise than other forms of promotion and often has a greater persuasive impact. Conversely, personal selling cannot reach as many potential customers as advertising, plus the cost of each contact is much higher. Another advantage is that personal selling can be an important source of marketing information. If the sales force is well trained, acting as problem solvers and advisors for customers rather than using hard-selling tactics,personal selling helps companies such as Audi to build loyal, long-term relationships with customers. The whole experience of going into a dealership and talking to a Salesperson is the definition of personal selling. When you walk into an Audi dealership, the Salesperson approaches you, tells you their name, and will begins asking you questions such as , what you are looking for, and what car fits you and your personality the best. In most cases, the salesperson will be your liaison with the Audi dealership forever, assuming you by a car. He or she therefore grows to know you, and is the ideal person to work with if you have any problems or complaints, as that person is almost a friend to you, based on the relationship they have established through professionalism, courtesy, and understanding of their customer. This is essentially the definition of relationship selling. The salesperson will always be "your salesperson", and you will very rarely have to deal with anyone else on any issue regarding your car. This is a relationship rarely found in the world of consumers and sellers, but when it comes to such a large investment as a car, this kind of service is expected and demanded by everyone.                                                                                                                                                                                                                                                           

 

 

Chapter 17 Advertising and Public Relations

Audi, like most other luxury car brands, is very specific when it comes to who they advertise to. Their target market are only middle upper class people, who can afford a car that cost anywhere from  $60,000 to $150,000. Therefore, they cannot really advertise to anyone else but that one particular group. This makes it easier for Audi, and  allows them to concentrate more on the style and execution of their advertising as opposed to their target audience. Audi is well-known for its innovative advertising. In the past numerous Audi commercials have caused a sensation both among customers and in the creative industry. They imploy  humorous entertaining commercials, for example the new Audi commercial where a girl thinks her father is a alien and believes his Audi A6 is a spacehip because of its technology and brand new features.

Audi and BMW have long been in an advertising war that pitches each company's new car against the others, mainly their sportier cars. Below is a billboard they made in response to BMW saying they had just won World Car of the Year. Audi has won the "GOLD EFFIE 2002", the measure of all things in terms of advertising efficiency in Germany.

In terms of public relations, Audi is very active in positive promotion for their brand while also showing their belief in social responsibility. Audi has been a strong supporter of the Elton John AIDS Foundation, and recently put up two Chrome Audi R8's, their most expensive and prestigious model which brought in almost $1 million. Last year they teamed up with Tom Brady, quarterback of the New England Patriots, and the Best Buddies foundation. They managed to raise about $350,000, a sizable contribution to the $36 million the pairing has amassed in the last 4 years. 

Chapter 15 Retailing

Since I wasn't planning to buy an Audi it made no sense to visit one of their dealerships , so I picked a retail store that would best correlate to Audi's dealership and was convient for me. In this case I went to Foot Locker. Foot Locker retail stores are all owned and operated by Foot Locker, they are chain stores. Foot Locker is the worlds leading athletic retailer with over 3,600 stores in 21 countries in North America, Europe, and Australia. There are 100 Footlocker reatil stores in both New York and New Jersey.  The stores offer a good level of service,  one to one membership service, and good selections on sneakers and other clothing accessories. Foot Lockers online store is also very popular, as it is accessible worldwide and convenient. Online or by phone one can pre order sneakers and other clothing products.  In Foot Locker retail stores consumers usually consider price to be secondary in specialty outlets. Instead, the distinctive merchandise, the store’s physical appearance, and the caliber of the staff determine its popularity which can be classified as specialty stores. Foot Locker stores are tuned to cater to the sneaker consumer  and to embody  the company brand image and ethos. The Foot Locker  stores’slogan is: “I run because I refuse to sit” this slogan has stood with them forever and has been endorsed by many famous athletes such as Deion Sanders, Barry Sanders, and Micheal Irvin. Similar to the marketing mix, there is a retailing mix the 6 Ps: product, place, promotion, price ,presentation, and personnel.
In the store you can find all brand and type of sneakers whether it is running shoes such as Nike, basketball shoes such as Jordans , and clothing for sportswear. They also sell accessories, such as headbands, and wristbands for basketball and socks for other sportswear. All Foot Locker stores in NYC are conveniently located, none being more than 3 blocks from a train stop and also in high traffic areas. The flagship store is at 34th street and 5th Ave. The store has so many options of what to choose for your footwear and other accessories. All employees wear a black and white striped shirts to be easily recognized. The personnel at the stores is very attentive and knowledgeable.

Chapter 6 Consumer Decision Making

The consumer's decision making process might be the most intense and detail-oriented process out of any other product when buying a car.  When it comes to spending that much money on a product , the consumer  will carefully examine every pro and con that the car has to offer. If the consumer knows what he or she is looiking for, Audi makes this process quite easy. In the intiaal stages, the consumer will most likely test drive an Audi.  Audi's new Quattro system allows the driver to have an almost velcro-like grip on the ground, while they're new emission-reducing engines still create the same amount of raw power that a normal, environmentally harmful engine would. Social class obviously has something to do with the process, as someone who makes a six figure salary probably wouldn't want to drive a Honda or Toyota, as they are not appropriate signs of ones social status.   When it comes to post purchase behavior, the consumer will be extremely pleased with Audi's top of the line customer service who always take great care for the customer if there is an issue. Also, to match up with their competitors, Audi has begun to give their cars a better resale value. Audi's focus on the consumer has become one of the most important priorities to them, and is part of the reason that keeps the company successful.