Powerhouse USA creates Smell-a-Vision : now TV viewers will be able to watch and “smell” their favorite shows

ORLANDO, Fla.—April 1, 2012— Local advertising agency Powerhouse USA announces the creation of Smell-a-Vision. Now television viewers everywhere will not only be able to watch their favorite shows, but they‘ll be able to smell them. The invention is expected to revolutionize the digital TV world as we know it.

David “DP” Preschel, president of Powerhouse USA and creator of Smell-a-Vision, has been dedicated to the fields of advertising and marketing for over 20 years and has finally created the breakthrough that marketers have been striving to accomplish for decades. “We wanted to give viewers a more interactive way to learn about our clients’ products. We have now incorporated a third sense into the viewing experience; all that’s left is to literally put the product in consumers’ hands! We’re working on that next,” he explains.

Preschel has worked tirelessly with the team at Powerhouse USA every night for years until yesterday when he finally discovered the secret to the olfactory viewing experience. When asked for details of the technology behind Smell-a-Vision, he declined to explain the process as worldwide patents are still pending.

Since rumors have spread over the Internet, phones have been ringing off the hook at Powerhouse USA. Those who wish to implement Smell-a-Vision in their advertisements range from car dealers (who doesn’t love that new car smell?) to bakeries, and oddly enough, septic companies. But the most curious call of all has been from political campaigns. “Unfortunately, we’re having trouble developing the musk of Newt Gingrich,” Preschel laments.

Powerhouse USA is a full-service advertising, marketing and promotions agency in Orlando, Florida that has produced over 3,000 television commercials ranging from car dealerships to massage therapy. On April 1, 2012, they introduced Smell-a-Vision to media outlets and television viewers everywhere.

“Gone Viral!”

Happy Birthday, Twitter!

Six years ago today, Jack Dorsey tweeted the first ever tweet on Twitter and a communications revolution was born.

Now, 6 years later it has grown exponentially to over 500 million users, making it the largest one-to-many open communication platform on the web today.  After hearing those numbers you would never believe what humble beginnings this social network came from.

Twitter stemmed from an earlier company ran by ex-googler friends called Odeo, which was going to be a podcasting platform. But when Apple launched iTunes podcasting, it made their little startup company irrelevant. After enlisting the help of another buddy and much brainstorming, the team came up with “Twttr”, which would eventually become Twitter.

This social networking phenomenon allows its users to interact with their favorite celebs and follow the latest news s
tories. Many businesses use Twitter as a marketing tool to reach consumers. It has changed media, business and politics – even our President Barack Obama has an account!

With 11 Twitter accounts created every second, the company is projected to earn $259 million in Advertising Revenue this year. Not a bad birthday gift!

BIG DAY IN PRODUCTION!

At PowerHouse, we had a big day in production to get new television spots ready and on the air for October!

This morning, we met with Jerry Smith at WFTV ABC 7 www.wftv.com to edit footage for Longwood Lincoln Mercury www.longwoodlm.com for October. We have created a great campaign entitled “Leadership has its advantages.” The idea is that Longwood is the leader in central Florida for Lincoln and Mercury luxury vehicles. New incentives came down today for the Lincoln MKX, MKZ, and the all new MKS, as well as Mercury Mountaineer, Mariner, and Milan. We edited the television spots to include value-driven leasing price point and featured cars in the dealership showroom. The effect was amazing! The production staff at WFTV is superb– hands on, dedicated, with an attention to detail unsurpassed by others.

While at WFTV, we were also in post-production for Hyundai Lincoln Mercury of Gainesville, www.gvilleauto.com On Tuesday, we shot new production footage in Gainesville with Amber, our new spokesmodel for www.GVILLEAUTO.COM For these television spots to air on WOGX in Ocala/Gainesville, we created price points for the Hyundai Sonata, Lincoln MKZ, and Mercury Grand Marquis.

Also today we were in post-production for Deland Toyota Scion, www.delandtoyota.com for October. These television spots will air on WOFL Fox 35. We shot them yesterday at the Fox Studios in Lake Mary, FL. I am also the talent and spokesmodel for Deland Toyota… Memorizing scripts, being on camera, and editing your own footage in post-production is quite interesting! I guess we truly do it all over here at Powerhouse USA!

I sent pictures of Amber to John Lanza, general manager for Hyundai Lincoln Mercury of Gainesville this afternoon so that he could incorporate her into his newspaper ads for the dealership. The best thing a client can do to build recognition of his store is to seamlessly incorporate his talent into all facets of his advertising endeavors. In this way, the consumer recognizes Amber on tv, sees her in the newspaper, hears her on the radio, sees her on a billboard for www.gvilleauto.com and remembers the dealership in the future. Top of mind awareness for a dealer is the best way to remind the consumer you’re out there and ready to provide them with a sound experience and stellar investment.

For Seminole Powersports today, www.seminolepowersports.com, I created a postcard for the store that will be distributed at all the biketoberfest events going on during central Florida in October. October is a great month for lifestyle marketing, especially for sport bikes, cruisers, and ATV’s as these categories tend to cross over in most active lifestyles. On one side of the postcard, we put the general flyer image for SPS, with contact and map information as well as main brands and styles of bikes. On the back, we added contact information and coupons. The coupons can only be used in the store if the consumer fills out the customer contact information. In this way, we are rewarding the consumer for their information by giving them awesome coupons– like $100 gift certificate with purchase of any new or used motorcycle, or $15 dyno that includes 2 horsepower pulls! WOW. We will use this database of customer information in the future to let them know of special offers and bring them back to the store as repeat customers. There’s nothing better than building a strong relationship with potential customers from the first handshake.

WOW! What else did we do today???

I think that’s it! It’s time for some dinner with the Athens Convention and Visitors Bureau– who knows what’s in store for Powerhouse next– maybe some Georgia business?

BrittaniSPS BOUNCEBACK FLYER

Wesley Chapel Nissan WWE Promotion with Kelly Kelly!

Today we have a huge promotion at Wesley Chapel Nissan www.wesleychapelnissan.com with WWE Diva Kelly Kelly. We have partnered with WTTA My TV Tampa Bay to create a promotion for WWE that is now showing on WTTA in Tampa, FL. The promotion started a few weeks ago and includes several parts:

  • Appearance by WWE Diva Kelly Kelly at Wesley Chapel Nissan TODAY from 12p-2p. She will be signing autographs and taking pictures with her fans
  • Exclusive private pre-sale for Tickets through Ticketmaster for the WWE show in Tampa, FL. The tickets have available for 48 hours BEFORE they go on sale IF you enter promotion code “WESLEY CHAPEL NISSAN” at www.Ticketmaster.com
  • At Wesley Chapel Nissan, today October 4th, you can enter to win FRONT ROW TICKETS to see WWE LIVE! WOW

This promotion has been great for the dealership for several obvious reasons:

  1. Drive traffic to the store through the promotional appearance of Kelly Kelly
  2. Initiate customer goodwill by handing out service coupons and bounceback coupons of $500 off any new or used vehicle from Wesley Chapel Nissan now through October 31st
  3. Dealership name recognition: in order for people to buy WWE tickets during the pre-sale with Ticketmaster, you have to enter the promotional code – the name of the dealership! People are remembering the name Wesley Chapel Nissan and positively associating the store with a lifestyle approach– by entering the store name, they get tickets to WWE before they go on sale to the general public! WOW
  4. All promotional spots featured on WTTA My TV Tampa Bay for WWE programming also includes our dealership name, Wesley Chapel Nissan– this is great added VALUE for our dealership during a time when advertising budget dollars are tight.

It should be a great time at the dealership today, www.wesleychapelnissan.com, we are serving homemade BBQ at the dealership, signing autographs with Kelly Kelly, and having a great time!

Brittani

DELAND TOYOTA SCION- SCION CAR SHOW! OCT 25TH 4-8P

deland toyota scion, www.delandtoyota.com, www.delandscion.com, is hosting its third car show for scion car club fans and enthusiasts like the Orlando chapter Scikotics and others looking to have a good time…

this is the third car show deland toyota scion has hosted in nine months.

Deland Toyota Scion

1701 S Woodland Blvd Deland, FL 32720

 

The theme for the event is “Spooky Scions.” To create this Halloween atmosphere and follow the suggestions of ScionLife members,
 
We are hosting the event in twilight so that participants can show off the lights on their ride.
We will be handing out day-glo necklaces, etc.
The dealership event lot will also have festive Halloween decor.
 
To prepare for the event, we created a contact on the ScionLife forums and have been posting topics and updates on the Spooky Scions event. In addition, we created a flyer and sent it out to all Scion contacts and potential event attendees inviting them to attend “Spooky Scions” at Deland Toyota Scion. We will also have on-air support by local radio station POWER 95.3, www.power953.com,   to promote the event.
 
During this event,
Deland Toyota Scion will be providing homemade BBQ.
All participants will receive a “Spooky Scions” Deland Toyota Scion event t-shirt.
DJ Chino from 102 JAMZ will be spinning all afternoon and evening. (check out DJ CHINO’s birthday bash at www.youtube.com/watch?v=VnUst9fHhIc)
We will have a discounted Scion merchandise and parts sale.
To follow through on the Halloween theme for Spooky Scions,
Deland Toyota Scion will be decorated in Halloween theme.
The dealership will host a costume contest for best Halloween Costume
Children attending the Scion event will trick or treat for Scion Sweets from car to car around the show.
A new car show category, Best Costume Car, has been added to the categories for judging.
 
We will host a contest for participants judged by Scion Certified technicians and salespeople. Categories are as follows:
Best XA
Best XB
Best XD
Best TC
Best Interior
Best Sound
Best of Show
We will have two new categories for the Spooky Scions show. We will add “Best Costume Car” to the judging roster, in addition to “People’s Choice” by popular suggestion from another local dealership, Keith Pierson Toyota.
People’s choice will be the winner by popular vote of all attendees
Best Costumer Car will be the Scion who best embraces the Halloween spirit.
 
All cateogry winners will be presented with a Spooky Scions trophy.

WE RECOMMEND THE FOLLOWING CAR WASH AND AUTO DETAIL ESTABLISHMENTS TO GET YOUR SCION IN PRIME SHAPE BEFORE THE SHOW:

Sonny Shine Auto Wash
1102 N Woodland Blvd
Deland, FL 32720 Map
(386) 740-0122
 
Car Bazaar
1211 S Woodland Blvd
Deland, FL 32720 Map
(386) 822-5611
Deland Auto Cleaning Inc
411 Berwick Cir
Deland, FL 32724
(386) 738-0783

A LITTLE BIT ABOUT DELAND TOYOTA SCION CAR SHOWS AND WHY WE DO THEM:

DELAND TOYOTA SCION WWW.DELANDTOYOTA.COM NEEDS PRESENCE IN THE COMMUNITY, ESPECIALLY WITH THE HOT SCION CULTURE EXPLODING ALL ACROSS CENTRAL FLORIDA. THESE SCION ENTHUSIASTS ARE YOUNG, HIP, AND SOCIAL. THEY ENJOY SHOWING OFF THEIR RIDE, TALKING ABOUT HOW TO UPGRADE THEIR CARS, AND PLANNING ON WHEN TO ROADTRIP TO THE NEXT SCION CAR SHOW. CHECK OUT THE SCION LIFE FORUM AND THE DETAILS OF THE DELAND TOYOTA SCION CAR SHOW AT: http://www.scionlife.com/forums/viewforum.php?f=32

http://www.scionevolution.org/forum/viewforum.php?f=44

THE BEST WAY FOR A DEALERSHIP LIKE DELAND TOYOTA SCION, WHO IS CENTRALLY LOCATED BETWEEN THE CITY OF ORLANDO AND DAYTONA BEACH, TO REACH THESE SCION ENTHUSIASTS IS TO INVITE THEM TO THE DEALERSHIP FOR A SPONSORED CAR SHOW. AT THE CAR SHOWS, WE JUDGE CARS ON DIFFERENT CATEGORIES, HAVE FREE FOOD, GIVEAWAY PRIZES AND BIG TICKET ITEMS, PLAY MUSIC FROM HOT DJ’S IN THE AREA LIKE DJ CHINO FROM 102 JAMZ, AND HAVE A GREAT TIME. BASICALLY THIS IS AN INTRODUCTION OF YOUR DEALERSHIP INTO THAT SOCIAL NETWORK– THE IDEA BEING THAT ONCE THEY COME TO YOUR DEALERSHIP, EXPERIENCE THE PEOPLE AND THE SCENE, THEY MIGHT POSSIBLY BRING THEIR SCION INTO SERVICE AT YOUR DEALERSHIP OR POSSIBLY UPGRADE TO THEIR NEXT CAR AT DELAND TOYOTA SCION… THAT’S THE LONG TERM GOAL. BUT FOR RIGHT NOW, IT’S GREAT PUBLIC RELATIONS FOR THE SCION ENTHUSIASTS.

THEY GET REALLY INTO IT. I START POSTING EVENT INFORMATION ON THE SCION LIFE AND SCION ENTHUSIASTS FORUMS MONTHS AND WEEKS IN ADVANCE, CONSTANTLY UPDATING THEM ON THE PRIZES, THE FUN, WHAT THE THEME IS, ETC. I DEVELOP FRIENDSHIPS WITH THESE PEOPLE, ASK THEIR OPINION, PICK THEIR BRAIN A LITTLE, FIND OUT WHAT THEY LIKE AND DON’T LIKE ABOUT DEALERSHIP CAR SHOWS. THAT HELPS US MARKET TO THAT GROUP OF PEOPLE IN THE FUTURE.

THERE IS A LOT OF PREPARATION THAT GOES INTO THESE SHOWS: SOMETIMES THERE ARE CO-OP FUNDS AVAILABLE FROM THE MANUFACTURER THAT NEED TO BE SUBMITTED. USUALLY WE GET THE FLYER IMAGE DONE QUICKLY SO THAT WE CAN POST THE FLYER IMAGE ON WWW.MYSPACE.COM , WWW.FACEBOOK.COM, THE SCION FORUMS LIKE WWW.SCIONLIFE.COM, AND DISTRIBUTE THEM LOCALLY TO AREA BUSINESSES, BARS, CLUBS, ETC. THIS WAY, OUR EVENT GETS AS MUCH EXPOSURE AS POSSIBLE. WE ALSO DO AN EMAIL BLAST TO PAST ATTENDEES NOTIFYING THEM THAT WE ARE HAVING ANOTHER CAR SHOW. PAST ATTENDEES ARE A GREAT WAY TO BRING BACK OLD FRIENDS AND INTRODUCE NEW PEOPLE TO THE DEALERSHIP AT THE SAME TIME.

TO FOLLOW THIS POST: I WILL UPLOAD OUR NEW SPOOKY SCIONS CAR SHOW FLYER AND OTHER EVENT INFO…

DELAND TOYOTA SCION– SPOOKY SCIONS CAR SHOW!

HERE IS THE OFFICIAL FLYER FOR THE SPOOKY SCIONS CAR SHOW AT DELAND TOYOTA SCION

SPOOKY SCIONS FLYER! JOIN US ON OCT 25TH

SPOOKY SCIONS FLYER! JOIN US ON OCT 25TH

DAY IN PRODUCTION, 10-8-08

SSSHHHHH! QUIET ON THE SET!

SSSHHHHH! QUIET ON THE SET!

YESTERDAY WAS ANOTHER BUSY DAY IN PRODUCTION AT POWERHOUSE USA, INC.

DAVID “DP” PRESCHEL OF POWERHOUSE USA AND KIRBY MULLINS, OF SEMINOLE POWER SPORTS, WWW.SEMINOLEPOWERSPORTS.COM, HAVE COLLABORATED ON A CREATIVE BROADCAST TELEVISION CAMPAIGN FOR SEMINOLE POWER SPORTS TO LAUNCH THIS FALL IN THE CENTRAL FLORIDA MARKET.

FOR THIS CAMPAIGN, WE HAVE TENTATIVELY CAST THREE GIRLS TO BE JOINT SPOKESMODELS FOR THE “SPS” CAMPAIGN: JAVONNA, PAULA, AND ALLY. WE MET THE THREE GIRLS AT WOFL FOX 35 STUDIOS IN LAKE MARY FOR A SCRIPT REHEARSAL, PRODUCTION MEETING, AND SCREEN TEST.

THE SCRIPTS FOR THE CAMPAIGN INCLUDE THE INFAMOUS SEMINOLE POWERSPORTS TAG, “RIDE THE ADVENTURE, LIVE THE DREAM AT SEMINOLE POWER SPORTS!” WE PRACTICED DELIVERING THE LINES AND ALL OF THE SCRIPTS WITH THE GIRLS AND THEN SENT THEM INTO STUDIO A FOR GREEN SCREEN FILMING.

LIGHT CHECK! SETTING THE STAGE...

LIGHT CHECK! SETTING THE STAGE...

THE OBJECTIVE FOR THE OCTOBER 2008 CAMPAIGN SCREEN TEST FOR SEMINOLE POWER SPORTS WAS TO INTRODUCE THE GIRLS TO EACHOTHER, THE CAMERA, AND THE DEMANDS OF SHOOTING COMMERCIALS. ALTHOUGH ONE OF THE GIRLS HAD BEEN “FAMILIAR” WITH SHOOTING TELEVISION BEFORE, EACH DIRECTOR AND CREW HAVE A DIFFERENT STYLE TO DIRECTING. AT POWERHOUSE, DAVID “DP” PRESCHEL WRITES, DIRECTS, AND PRODUCES ALL CLIENT CREATIVE ALL THE TIME. HE IS DIRECTLY RESPONSIBLE FOR THE LOOK, FEEL, AND DELIVERY OF EACH TELEVISION AND RADIO COMMERICAL…. HE IS ALSO A PERFECTIONIST. HE KNOWS TALENT WHEN HE SEES IT– THEN DEMANDS THE BEST.

THE SCRIPTS ARE DESIGNED TO REINTRODUCE THE DEALERSHIP BACK INTO THE CENTRAL FLORIDA COMMUNITY.  “GET A SPORT BIKE, CRUISER, ATV, PERSONAL WATERCRAFT, OR BOAT FROM SEMINOLE POWER SPORTS TODAY!” THE TELEVISION SPOTS ARE ESSENTIALLY DRIVING ALL CONSUMER TRAFFIC TO THE WWW.SEMINOLEPOWERSPORTS.COM WEBSITE THROUGH TRADITIONAL BROADCAST MEDIA. IN THIS WAY, THE STORE HAS AN OPPORTUNITY TO INTEREST THE CONSUMER, VISUALLY DEPICT THE BRANDS, MERCHANDISE, AND TALENT, THEN TELL THE CONSUMER WHERE TO FIND MORE INFORMATION ABOUT THE DEALERSHIP, THE PRODUCT, THE DEAL! VISIT US TODAY! REQUEST MORE INFORMATION!

DELAND TOYOTA SCION CAR SHOW EVENT– HUGE SUCCESS!

DELAND TOYOTA SCION’S, www.delandtoyota.com,  CAR SHOW EVENT, “SPOOKY SCIONS,” WAS A RAVING SUCCESS.

HIGHLIGHTS INCLUDE:

Spooky Scions Costume Contest Winner!

Spooky Scions Costume Contest Winner!

Over 45 cars attended the show.
Although it officially started at 4pm, people starting showing up to register at 1:30!
The first 30 registrants were impressed and thankful to receive their free gift– a $25 gas card!
People had a great time with the Halloween Theme!
Attendees dressed up their cars… and their dogs!
We handed out Trick-or-Treat Candy, Masks, and Goodies
Some Highlights include…
Our Halloween Costume Contest brought out daring attendees. The crowd cheered for their favorite. Three winners were chosen; all received a cash prize.
The S.E.T. Scion Party Crashers, www.scionpartycrashers.com   showed up too! The b-boys danced in the middle of the show while the girls registered attendees for a chance to win a trip to Las Vegas!

Great Turnout! Packed Lot!

Great Turnout! Packed Lot!

DJ Chino from 102 JAMZ www.102jamz.com  played hot music all afternoon and judged the “Best Sound” category for those who wanted to show off their sound systems.
 
 
Official Scion specialists from Deland Toyota Scion judged each vehicle on: uniqueness, performance, interior, tires and rims, and overall appearance.

We distributed trophy plaques to all 7 category winners!

Category Winners and Trophies!

Category Winners and Trophies!

 
People’s Choice, our newest category for this show, was a great success. It encouraged attendees to mingle, get to know one another, and contact with neighboring scion car clubs. We had over 60 people’s choice entries!
 
 
 
The positive responses after the show on the scion forums are overwhelming. Check out the posts from people that had a geat time showing off their ride!
http://www.scionlife.com/forums/viewtopic.php?t=237853&postdays=0&postorder=asc&&start=40

Google Adwords For Fountain Auto Mall

Powerhouse USA is now managing a Pay-Per-Click (PPC) Campaign through Google Adwords for Fountain Auto Mall, www.fountainautomall.com and Fountain Acura, www.fountainacura.com, exclusively.

This search engine marketing tool will boost the dealership’s recognition and subsequent sales numbers in the target market.

The campaign is set up into three different categories: Auto Mall, Acura DMA, and Courtesy Acura Target. Organizing the campaign is the first critical step to ensure success in Google Adwords. Next, each campaign category has subsequent “Adgroups” underneath, specifying what keyword searches go with which text ads. Adgroups for Auto Mall include: Buick, Pontiac, Mitsubishi, New Cars, Used Cars, etc. It is important to be as specific as possible with the Adgroups themselves.

To recap, the structure of the campaign goes like this:

  • Campaign Category
  • Adgroup
  • Keywords and Text Ads

It is important to note that each category has a geographic target, atleast in our campaign for Fountain Auto Mall. We have designed the campaign so that when someone in Orlando searches for an Acura in Orlando, we are highly visible to that consumer. In fact, the goal is to show up as the first listing the consumer sees after the search has been performed on www.google.com

Fountain Acura is #1 for "Orlando Acura" search!

Fountain Acura is #1 for

Powerhouse USA, Inc. is proud to announce this new interactive services arm to the Powerhouse marketing toolbox for its clients. The internet is the new Yellow Pages, among lots and lots of other things, and everyone knows that when they want to find information or a local business, they don’t find the dusty old yellowpages book– the search for it on google! As marketers, we are crazy if not to take advantage of this new way to reach potential qualified consumers at the point when they are IN the market, searching for information and a vendor to choose their next vehicle.

Powerhouse has also just recently extended these interactive services to several other clients, including Ford of Clermont www.myfordofclermont.com and Hyundai Lincoln Mercury of Gainesville, www.gvilleauto.com . The details of their campaigns and the thought process behind it — coming soon….

CONSUMER REPORTS BEST USED CARS

Consumer Reports Names Most Reliable Used Models, More

March 02, 2009
NOTE: SINCE MOST CUSTOMERS RESEARCH CARS ON THE WEB PRIOR TO SEEING DEALERS AND CONSUMER REPORTS IS SO WIDELY KNOWN AND TRUSTED BY CONSUMERS, THIS INFO CAN BE AN IMPORTANT SELLING TOOL FOR NEW CARS AND USED CARS. CUSTOMERS MAY WELL COME LOOKING FOR THESE CARS…DP

NEW YORK — Though the quality of any used vehicle depends on how it treated and maintained by its previous owner, certain models are more likely to “stand up over time” than others, according to Consumer Reports.

With that in mind, the publication identified what it considers to be the most reliable used models from 1999 to 2008 for for its upcoming 2009 Annual Auto Issue.

Leading the way were Asian brands, particularly Toyota and Honda.

“Overall, the most reliable vehicles come from Asian nameplates. Though domestic cars are getting better, they still trail the Japanese models,” officials indicated.

“European models are also improving, but the older ones tend to be among the most problematic,” they added.

The following is the breakdown of Consumer Reports’ picks for most reliable used cars across nine categories.

—Small Cars: Honda Civic, Toyota Echo, Scion xB, Toyota Corolla, Toyota Matrix, Pontiac Vibe, Mazda 3, Mazda Protege, Subaru Impreza

—Upscale Cars: Lexus ES, Lexus IS, Toyota Avalon, Acura TSX, Lincoln MKZ, Lincoln Zephyr (FWD), Infiniti G20, Acura TL, Infiniti I30, Infiniti I35, Infiniti G35 (sedan), Volvo S60, Buick Lucerne (V8), Nissan Maxima

—Luxury Cars: Infiniti M35, Lexus LS, Lexus GS (6-cyl., RWD), Acura RL

—Sports Cars: Mazda Miata, Lexus SC, Honda S2000, Toyota Camry Solara, Acura RSX, Toyota Celica, Scion tC, BMW Z3, BMW Z4 BMW M3, Acura Integra, Porsche Boxster, Subaru Impreza WRX/STi, Ford Mustang (V6), Nissan 350Z

—Pickup Trucks: Honda Ridgeline, Toyota Tacoma (’05-08), Toyota Tundra, Subaru Baja, Nissan Frontier (’05-08)

—Family Cars: Honda Accord, Toyota Prius, Ford Fusion, Mercury Milan, Toyota Camry (except ’08 V6), Subaru Outback (6-cyl.), Nissan Altima

—Minivans: Toyota Sienna, Honda Odyssey

—Small SUVs: Toyota RAV4, Honda CR-V, Subaru Forester, Mitsubishi Outlander

—Midsize and large SUVs: Honda Pilot, Toyota Highlander, Lexus RX, Toyota Land Cruiser, Toyota 4Runner, Infiniti FX35, Acura MDX, Infiniti QX4, Lexus GX, Hyundai Santa Fe, Subaru Tribeca, Nissan Xterra (’05 – ’08), Toyota Sequoia

Additionally, the Annual Auto Issue includes a “Models to Look For” list, sorted by price.

The list highlights a variety of used models, all of which have above-average reliability and are priced from less than $4,000 up to $30,000 or more.

In particular, the list includes 19 vehicles with a price tag of $6,000 or less, including the 1999 Acura CL and 2003 Buick Century.

Next, the issue also noted the Used Cars to Avoid and Worst of the Worst lists, which points out the models with multiple years of much-worse-than-average reliability, officials pointed out.

Moving on, Consumer Reports’ editorial team also suggested that many three-year-old units tend to have fewer problems than new models. And many of these reliable used models are Hondas or Toyotas.

“These vehicles tend to be a good value because the steepest part of the depreciation curve is past and many newer safety features can often be found on these vehicles,” editors explained.

The following are several other trends spotted by Consumer Reports’ Annual Auto Survey:

— Problem rates for cars have gone down across the board, so late-model used units should hold up better than their predecessors as they age.

—Among five-year-old and newer cars, Ford, Hyundai and Nissan have roughly the same reliability scores.

—European models, which have historically been the least reliable, are pulling even with the domestics on newer models.

—Models with high problem rates are not necessarily the oldest

Moving on, the publication discussed which problems are most often reported. According to editors, the check-engine light, windows as well as squeaks/rattles are the most common issues.

Troubles that were common among almost-new to three-year-old models include body integrity (squeaks and rattles), body hardware and power equipment.

Three-year-old units had, on average, about 43 problems per 100 vehicles.

When vehicles get to the five-year mark, brake problems become more prevalent. The average five-year-old units had about 62 problems per 100 vehicles. Meanwhile, 10-year-old units came in at 124 problems per 100 vehicles.

Consumer Reports Names Top Picks

In other news, Consumer Reports unveiled its Top Picks for 2009 in the Annual Auto Issue, recognizing the best all-around new models across 10 categories.

Each of these picks scored at or near the top of the class in the publication’s Auto Test Center, in addition to averaging or showing better predicted reliability and performing adequately or better in overall safety (if tested by the government or insurance industry).

Also, each of these models must offer electronic stability control as standard equipment or as an available option.

The following is the complete list of 2009 Top Picks, with editorial commentary included:

—Small Sedan: Hyundai Elantra SE.

“The Elantra SE is a comfortable, roomy small car that provides good fuel economy, a quiet and nicely finished interior, and plenty of features for the money,” officials commented.

—Midsize SUV: Toyota Highlander.

“The Highlander is a very refined and versatile vehicle,” officials noted. “It provides a comfortable and quiet ride, a nicely finished interior, three rows of seats, and decent fuel economy for its class.”

—Pickup Truck: Chevrolet Avalanche.

“The Chevrolet Avalanche full-sized crew cab is one of the most versatile and comfortable pickups that Consumer Reports has tested,” the publication stated. “Its unified bed and cab helps give it a solid feel and a comfortable, quiet ride.”

—Best Overall Vehicle: Lexus LS 460.

“With a road test score of 99 out of 100, the Lexus LS 460 is Consumer Reports’ highest-scoring vehicle,” editors pointed out.

“It provides a luxurious, uncompromising driving environment, with a supremely comfortable ride and a roomy, well-finished, and exceptionally quiet interior,” they added.

—Family Sedan: Honda Accord.

“The Honda Accord ($21,000 to $31,000) is a roomy, well-rounded sedan that’s easy to live with and enjoyable to drive,” officials shared.

“It offers a comfortable ride, agile handling, and efficient, refined four- and six-cylinder powertrains,” they continued. “Electronic stability control is standard, and crash-test results are impressive.”

—Upscale Sedan: Infiniti G37.

“One of the highest-rated sedans tested, the G37 combines sportiness and luxury in a very appealing package,” editors pointed out. “It has a very lively powertrain, agile handling, a comfortable ride, and a nicely appointed interior.”

—Fun to Drive: Mazda MX-5 Miata.

“The Miata is a true sports car at a reasonable price. With quick, precise steering, a crisp-shifting manual transmission, and balanced handling, it virtually tied the Porsche Boxster in test scoring, but it costs about half the price,” officials stated.

—Small SUV: Toyota RAV4.

“Thanks to a larger and more powerful four-cylinder engine and other upgrades for 2009, the RAV4 narrowly outscored the Subaru Forester to remain our Top Pick for the third straight year,” the publication pointed out.

“It provides agile handling, a roomy and quiet interior, a comfortable ride, and an optional third-row seat,” editors added.

—Minivan: Toyota Sienna.

“The Sienna offers a spacious, versatile and comfortable way to carry up to eight people,” editors emphasized. “Consumer Reports found that the quiet, well-finished interior rivals that of some luxury sedans.

—Green Car: Toyota Prius.

“Despite the arrival of more gas/electric hybrids, the Prius leads this category for the sixth straight year,” officials stated. “The base model’s 44 overall mpg is the best Consumer Reports has measured in any five-passenger car.”

Consumer Reports Highlights Best New-Car Values

Moving on, the publication also named the Toyota Prius Touring as the best overall value for new cars.

According to officials, the model was chosen because of its comparatively low owner-cost estimate of $26,250 over five years — and a relatively high road-test score of 80 points out of 100.

While its not the least expensive model in its class, the Prius’ overall fuel economy of 42 miles per gallon and solid resale value help give it a low owner-cost.

“A low price doesn’t necessarily make a car a good value,” said Rik Paul, automotive editor at Consumer Reports. “At a time when people need to make every dollar count, our best value list will help consumers understand the difference.”

To narrow down the list of best values, Consumer Reports looks at its overall road-test scores, five-year owner-cost estimates, and predicted reliability ratings for more than 300 recently tested vehicles.

The publication then divided each vehicle’s five-year ownership cost by its overall road-test score to get the cost of each test-score point — the lower the cost-per-point, the better the value.

The cost estimates are based on depreciation, fuel economy, insurance, interest on financing, maintenance and repair, and sales tax.

The Prius Touring received a cost-per-point of $325, and was followed by the Mini Cooper ($330), Volkswagen Rabbit ($330), Honda Civic EX ($340), and Honda Fit ($350).

In the Annual Auto Issue, the publication noted the best new-car values across nine categories. Below are some of the highlights:

—Best Value Small Cars: Honda Civic EX, Honda Fit (base), Hyundai Elantra SE, Toyota Corolla LE, and the Honda Civic Hybrid

—Best Value Family Cars: Toyota Prius Touring, Toyota Camry Hybrid, Toyota Prius (base), Hyundai Sonata (4-cyl.), and the Honda Accord (4-cyl.)

—Best Value Upscale Cars: Toyota Avalon, Infiniti G37, Acura TL, Lexus IS, Lexus ES

—Best Value Hatchbacks/Wagons: Volkswagen Rabbit, Mazda3 hatchback, Scion xB, Subaru Impreza Outback Sport, and the Toyota Matrix

—Best Value Sports Cars: Mini Cooper, Mazda MX-5 Miata, Scion tC, Volvo C30, Honda S2000

—Best Value Minivans: Honda Odyssey, Toyota Sienna (FWD), Toyota Sienna

—Best Value Small SUVs: Toyota RAV4 (4-cyl.), Toyota RAV4 (V6), Honda CR-V, Mitsubishi Outlander (4-cyl.), and the Nissan Rogue

—Best Value Midsized SUVs: Hyundai Santa Fe, Toyota Highlander, Toyota Highlander Hybrid, Nissan Murano, and the Honda Pilot

—Best Value Pickup Trucks: Honda Ridgeline, Toyota Tacoma, Nissan Frontier

For more information, visit www.consumerreports.org.

Ford sees Fusion as image-changer

NOTE: WHILE GM APPEARS TO BE MUDDLING THROUGH THESE TOUGH TIMES, FORD REMAINS FOCUSED ON BOTH PRODUCT AND MESSAGE. CREDIT ALAN MULALLY ON THE PRODUCT/BUSINESS SIDE AND MARKETING GURU JIM FARLEY ON THE MESSAGE…DP

Tuesday, March 3, 2009
Ford sees Fusion as image-changer
‘We speak car’ ad blitz tonight on ‘American Idol’ helps launch firm’s midsize gas, hybrid cars.
Bryce G. Hoffman / The Detroit News
Ford Motor Co. is hoping the launch of its new Ford Fusion and Fusion Hybrid sedan will change the way American consumers think about the company.

The message of the new advertising campaign, which is scheduled to debut tonight on “American Idol,” is simple: “We speak car.”

“We’re known as a truck and Mustang company,” said Matt Van Dyke, director of U.S. marketing communications for Ford, Lincoln and Mercury. “This sets us up for our future car launches.”

And Ford has at least half a dozen of those planned over the next couple of years, starting with these redesigned versions of its mid-sized sedans.

The introduction of the 2010 Fusion and Fusion Hybrid will include a marketing campaign designed to take the fight to the competition — in this case, Toyota Motor Corp. and Honda Motor Co., whose mid-sized sedans dominate this critical segment of the U.S. car market.

According to Ford’s market research, only 58 percent of American carbuyers recognize the Fusion name, compared to 91 percent for the Toyota Camry. Ford says much of that is due to the fact that the Camry has been sold for decades longer than the Fusion, which was introduced four years ago.

“The mid-sized car segment is critical to us and the industry,” said Chantel Lenard, Ford group marketing manager for global small and medium cars.

The segment is now the second largest in the United States. It is also one of the most competitive, with prospective buyers doing more cross-shopping than in any other segment.

So, Ford is focusing on the one thing it says consumers care about most: fuel economy. Ford’s research shows that the primary reason why consumers did not consider the Fusion in the past was because it got worse gas mileage than rival offerings. That is why it will trumpet the fact that its new Fusion gets four more miles to the gallon than the Honda Accord and three more miles to the gallon than the Camry.

“They’ve hit the right buttons,” said analyst Stephanie Brinley of AutoPacific Inc., though she added that she is not sure about the imagery used in the new commercials, which puts the cars against a white backdrop and does not show people interacting with them. “It gives people the opportunity to see themselves in the car. But on the other hand, sometimes it’s harder to see how it fits into your life.”

Ford also announced pricing for the new Fusions Monday: the standard version will start at $19,995, while pricing for the hybrid will begin at $27,995. Pricing for the 2010 Mercury Milan, which is built on the same platform, will start at $21,905, while the Milan Hybrid will start at $31,300.

Polk: Vehicle Longevity Lengthens, Consumers View Repairs Better Than New Purchase

Polk: Vehicle Longevity Lengthens, Consumers View Repairs Better Than New Purchase


March 03, 2009

 

SOUTHFIELD, Mich. — Consumers are holding onto their vehicles for longer periods of time these  days, and in light of economic struggles, they may be willing to pay more for repairs so that they don’t have to buy new models, according to recent data from R.L. Polk and Co. 

Essentially, Polk believes that consumers are starting to feel that investing in repair expenses to retain their ride longer may be more affordable than a long-term monthly payment for a new-vehicle purchase. 

“The current economic environment, coupled with high gas prices last spring and summer, have resulted in consumers delaying purchases of vehicles because their discretionary income has fallen,” explained Dave Goebel, solutions consultant for Polk’s aftermarket team.

“Based on the uncertainty of what the future holds, consumers are trying to keep their current vehicles running longer, until their confidence improves,” he added. 

Specifically, the median age of passenger cars in 2008 jumped to 9.4 years, up from 9.2 years in 2007. 

Trucks, meanwhile, climbed from 7.3 years to 7.6 years in longevity. In particular, light trucks were up to 7.5 years, compared with 7.1 years in 2007. 

Moreover, the scrappage rate for all cars and trucks in 2008 was 5.6 percent, versus 5.2 percent the previous year. 

Cars were at a 5.1 percent rate, down from 5.5 percent in 2007. For all trucks, the scrappage rate was 6.3 percent, compared with 4.8 percent a year ago. Light truck scrappage was 6.4 percent, up from 4.9 percent.

“As the fleet of pick-up trucks, SUVs and minivans purchased in the late 1980s and through the 1990s ages, their scrappage rates accelerate,” Goebel added.

For more information, visit www.polk.com.

 

Jaguar, Buick dethrone Lexus in reliability study

NOTE: STRONG SHOWING FOR JAGUAR, WHO FOR YEARS HAS BEEN PLAGUED BY A BAD RELIABILTY REPUTATION. THEY’RE MAKING GREAT VEHICLES NOW LIKE THE INCREDIBLE NEW XF; THIS SHOULD HELP. BUICK/GM IS ALSO IN NEED OF SOME GOOD NEWS NOW AND HERE IT IS. -DP

Jaguar, Buick dethrone Lexus in reliability study

NEW YORK – British luxury carmaker Jaguar surged to the top of J.D. Power and Associates’ closely watched vehicle dependability study this year, tying Buick for the No. 1 spot and dethroning Lexus for the first time since the Japanese luxury brand has been a part of the survey.

Lexus, Toyota Motor Corp.’s luxury brand, took the next spot in the study released Thursday, followed by Toyota’s namesake brand, then Mercury, Infiniti and Acura.

“Buick and Jaguar both lead the industry in nameplate performance,” said Neal Oddes, director of product research and analysis at J.D. Power. “In terms of individual model performance, Lexus and Toyota still do very, very well.”

The annual study measures problems experienced by the original owners of vehicles after three years. Suzuki owners reported the most problems among the 37 brands assessed by J.D. Power.

Despite losing its crown to Jaguar and Buick, Lexus still swept top awards in four segments, while Toyota’s namesake brand took five awards. General Motors Corp.’s Buick LaCrosse was J.D. Power’s top midsize car, while Ford Motor Co.’s Lincoln brand took two awards. Chrysler LLC, which took no segment awards last year, won top honors for its Dodge Caravan in the van segment.

Jaguar’s sudden jump to the top from its No. 10 spot in 2008 was notable for a study that is fairly consistent from year to year. Oddes said the brand has made significant improvements across many areas.

“We see improvements all over the board with Jaguar,” Oddes said, citing fewer reported problems with vehicle exterior, sound system and the overall driving experience. “The improvement at a nameplate level is significant.”

Still, Jaguar, which Indian car giant Tata Motors Ltd. bought from Ford in 2007, remains a relatively small-volume brand in the U.S. It sold just 14,000 vehicles here in 2008, while Buick sold 128,000.

Oddes said this year’s study was redesigned to exclude routine fixes from a vehicle’s list of problems. For example, the study no longer counts tire or windshield wiper replacements as a reportable problem. The intended result is a study that focuses on actual glitches with a vehicle, Oddes said, though it also makes it difficult to make year-over-year comparisons.

“We cleaned up the survey to really try to focus in on things that are truly broken,” he said.

The industry average was 170 problems per 100 vehicles, or somewhat less than two problems per vehicle. Last year, the industry average was 206 problems per 100 vehicles, but year-over-year improvements this year are much less pronounced when accounting for the changes in the study’s methodology, Oddes said.

The most frequently reported problem was wind noise, followed by brake noise, peeling paint, brake vibrations and problems with a vehicle’s lights, Oddes said. The problems have been fairly consistent from year to year, he said.

J.D. Power’s dependability study surveyed 46,313 original owners of 2006 model-year vehicles in October 2008. The results are watched closely by automakers and are often used in advertising. Owners’ opinion of a car after three years can be a major influence on their opinion to buy that brand again.

The firm also releases an initial quality study, which measures problems in the first 90 days of ownership.

Three-Quarters of the World’s Messages Sent by Mobile

 

Three-Quarters of the World’s Messages Sent by Mobile

MARCH 24, 2009

Emerging markets drive mobile communication.

Worldwide communication in the future will be done through mobile devices.

According to

 

 

 

 

TNS Global

, 74% of the world’s digital messages were sent through a mobile device in January 2009, a 15% increase over

the previous year.

In emerging markets, the trend is even more dramatic; nine out of 10 messages are sent via mobile.

Some of the growth can be attributed to mobile instant messaging. Thirteen percent of all mobile subscribers used the feature, but 41%

of smartphone users did so.

Other increases in mobile usage can be attributed to the abandonment of fixed-line telephones.

“As mobile devices slowly take away usage share from fixed services in developed markets, in emerging markets consumers are more

likely to by-pass fixed communications altogether and go straight to mobiles,” said Sam Curtis of TNS.

As for developed countries, the PC e-mail remains the most popular message method, but its use is waning.

In Japan, 40 out of 100 e-mails sent are from a mobile device. In North America, 69% of those using e-mail on their mobile phone use it

daily, high compared with 43% worldwide.

The trend will increase, TNS says, as smartphones such as the popular iPhone enter the marketplace and gain share.

 

Agencies and brands from all vertical industries rely on eMarketer for analysis and data. See what you are missing. Learn more about

Total Access

 

 

today.

©2009 eMarketer Inc. All rights reserved. www.emarketer.com

 

http://www.emarketer.com/Articles/Print.aspx?id=1006995 3/24/2009

 

BEST TIME TO BUY A NEW CAR…REALLY!

Stats FROM AUTONEWS

Record Incentives Climb To 20 Percent Of Sticker Price

Average incentive in US was $2,914 / vehicle sold in Feb. ’09, up $216, or 8.0%, from Jan. ’09
Up $400, or 15.9%, from Feb. 2008
Last time sales were at this level was in early 1980s, when US had 25% fewer licensed drivers
Consumers not motivated to buy based on what they are seeing in marketplace
Instead waiting for boost of economic confidence before making major purchase

Orlando-area car dealers hurting, hopeful amid economic woes

NOTE: THE OPTIMISIM IS STARTING TO SHOW. DEALERS SEEM MORE POSITIVE HERE THAN THEY HAVE BEEN IN 6 MONTHS.=DP

OrlandoSentinel.com
Orlando-area car dealers hurting, hopeful amid economic woes
By Steven Cole Smith
Sentinel Automotive Editor
April 12, 2009
For Don Mealey and other Central Florida auto dealers, it’s all about what Mealey calls “adjusting to the new reality.”

“You are not going to sell 150 new cars a month,” said Mealey, who owns Mealey Chevrolet in Clermont. “You might not sell a hundred. You might sell 50. But hopefully, with the right people, and the right emphasis on used cars and on parts and service, you can still make it work.”

With General Motors and Chrysler on the brink of financial collapse, Mealey and his competitors know that the major change is coming. Some Central Florida dealerships will merge, and others will disappear altogether as the car companies pare their product lines.

Mealey stands by his decision eight months ago to take over the old Bill Seidle Chevrolet dealership in Clermont — though he’s troubled by what has happened to his industry.

“We closed the deal on August 28. September, things were still OK. October — it was like somebody pulled the plug,” he said. “When the history of 2008 and 2009 is written, it will say that Don Mealey Chevrolet opened just before the economy just fell off the Earth.”

In the first three months of 2009, total U.S. sales for GM dropped 48.8 percent over the same period in 2008. Chrysler sales were down 45.5 percent. Other manufacturers haven’t fared much better: Ford sales were down 44.4 percent, Toyota was down 37.1 percent and Honda was down 34.5 percent.

The Mealey family has other area dealerships that include Mitsubishi and Mazda franchises, plus several motorcycle dealerships. Don Mealey heads a group of investors that owns dealerships in South Carolina that sell Chrysler, Jeep, Dodge, Hyundai, Jaguar, Land Rover, Infiniti, Mazda, Nissan and Porsche vehicles.

All brands, he said, are feeling the pain.

Central Florida, Mealey said, “is paying the price for being totally overheated two or three years ago. Housing was overpriced, and it’s going to take awhile to get those homes properly priced and properly mortgaged before things get better.”

There are, said some Central Florida dealers, some positive indicators.

“I think we’ve bottomed out,” said Mike Smith, owner of Orlando Dodge-Chrysler-Jeep. “The banks have money to lend, and I think we’re on the upswing.”

The sales mix is still dependent on gas prices, Smith said. With gas near $2 a gallon, larger, more powerful cars and trucks are selling, “and the gas-sippers are just sitting on the lot.”

Smith views the pending Chrysler merger with Italian manufacturer Fiat as a positive.

Since Chrysler has fewer model lines — Chrysler, Dodge and Jeep — there is not much to cut. But at General Motors, with Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab and Saturn, there’s a fear among dealers that not all brands will continue under the GM banner, if at all.

GM is trying to sell Saab and Hummer, and Saturn’s future is unclear. Saturn’s products are shared by other GM brands, and selling Saturn would likely mean that, in part, the new Saturn would have to find products elsewhere, perhaps from China or India.

George Nahas, owner of Saturn of the Lakes in Tavares, has been through this before. When GM discontinued Oldsmobile, he converted his dealership to Saturn.

“All the talk from GM about dropping Saturn has hurt, there’s no question about that,” Nahas said. “It’s a damaged brand. And yes, business has fallen off, despite the fact that we have some great products to sell.”

Regardless of what happens to Saturn, Nahas said, he is convinced that, as with Oldsmobile, warranties will be honored and service will be available.

Still, it would not surprise Nahas if GM was forced into bankruptcy. “I’m not sure they can avoid it,” he said.

So how did the car companies get into this situation? Local dealers point to two central problems: On a national level, loans were made to customers who couldn’t afford the payments, often to cover the payoff on a current vehicle.

In Central Florida, the slowdown in construction has crippled dealers, too. Companies with fleets of vehicles aren’t replacing them, said Kevin Mealey, Don’s son. “They are just driving what they have.”

And those customers who depend on the construction industry for their income aren’t buying new vehicles, either.

So what will happen?

“I’m the eternal optimist,” Don Mealey said. “You have to be to work in this business.”

He said there are just as many people as before who need to travel, and they’ll need transportation.

“Maybe every car they buy won’t be new, or maybe instead of three cars in the family, they’ll have two,” he said. “But if yours is the last dealership standing, you’ll do all right.”

Home sales in the Orlando market jumped nearly 48 percent-from the Orlando Regional Realtor Association.

Home sales in the Orlando market jumped nearly 48 percent, but values fell by nearly 40 percent, according to the March report from the Orlando Regional Realtor Association.
Association members reported 1,653 existing home sales in March, compared with 1,120 in the same month a year prior. Realtors also put 2,956 homes under contract last month, a far cry from March 2008’s 1,679.

The median price of all Orlando homes resales fell 37.7 percent from $217,000 in March 2008 to $137,000 last month. The area’s average interest rate fell to a record low 4.67 percent.
Association members also reported 4,906 pending sales — considered a leading indicator of future sales — in March, more than double March 2009’s 2,398.
March home resales in the Orlando area — Lake, Orange, Osceola and Seminole counties — jumped nearly 58 percent, from 1,354 homes last year to 2,139 homes this year.
Osceola County saw the biggest increase in sales at 112 percent, from 466 homes sold in March 2008 to 989 sold last month. Orange County saw the next largest jump at nearly 61 percent, from 1,667 last year to 2,681 this year, followed by Lake County’s 21.5 percent increase, from 657 last year to 798 this year, and Seminole’s nearly 5 percent jump, from 679 to 713.
The association reported that 49 percent of the homes that were sold being bank-owned or distressed homes. There were 700 bank-owned home sales last month with a median price of $95,000, along with 111 distressed home resales with a median price of $143,500.
The good news was that the area’s affordability index continues to climb, with 192.17 percent recorded in March. That means that those earning the state-reported median income of $52,250 can qualify to purchase homes priced up to $263,270 .
The area’s first-time homebuyer affordability index reached 136.65 percent, which means buyers earning a median income of $26,000 can qualify to buy homes priced up to $159,132.
Homes of all types spent an average of 104 days on the market before being sold last month, up from an average of 128 days in March 2008. The average home sold for nearly 92.6 percent of its listing price in March 2009, slightly down from the 93.1 percent posted in the same month last year.
March inventory of homes available through the local Multiple Listing Service was 21,448, down 720 homes from February 2009, which means that 720 more homes left the market than entered the market. That reflects a nearly 13-month supply at the sales pace, down from the nearly 17-month supply recorded in February 2009.
Orlando-area condo sales saw a huge increase 228 percent last month — from 90 in 2008 to 295 this year. Orlando buyers also purchased 119 duplexes, townhomes and villas in March 2009, 8 percent more than March 2008’s 110 sales.

Quality Paying off as Ford Draws in New Customers

 NOTE: HERE’S SOME INTERESTING FACTS ON HOW CUSTOMERS DEFINE QUALITY. HATS OFF TO FORD. ATTACKING QUALITY FIRST THEN TELLING THE STORY EFFECTIVELY. FORD IS GETTING IT RIGHT. =DP 

Quality Paying off as Ford Draws in New Customers
By Diane Majeske
DEARBORN — Janet Asdell sees quality in the gleaming angles and smooth curves of her new Ford Flex. She hears it in the solid sound of the doors closing, and she feels it every time she settles in for a ride.
“To me, quality is all about the look and the sound and the feel of a car,” said Asdell, 47, of St. Clair Shores, Mich., who bought her 2009 Flex – her very first Ford purchase – in February. “This car meets my needs, but it’s more than that. I feel good just being in this car.”
To Alexandria Lucente, quality shows up in the low numbers at the gas pump, in the 35 mpg fuel economy rating of her 2009 Ford Focus – the 20-year-old’s very first new car. “I wanted something that looked good, but I wanted to save money on gas, too,” said Lucente, a junior at Grand Valley State University in Michigan. “This car is very cost-effective. I love it. It looks great, and it’s reliable.”
Quality can be difficult to define – it’s a wide-ranging concept that veers from fit and finish to infotainment, depending on who’s doing the judging. But at Ford, researchers have taken that concept and narrowed it down to tangibles that not only benefit the customer, but put Ford quality on par with any other carmaker in the world. In fact, the company has developed a three-pronged strategy that keeps quality ingrained in every aspect of Ford’s business practices.
“Quality, in its truest sense, is the ability to provide a product or service that satisfies a customer completely,” said Bennie Fowler, group vice president, Global Quality. “I don’t define quality – customers define quality. We have a very structured approach at looking at customer satisfaction.”
To find out how consumers viewed Ford quality, researchers combed through surveys. They looked at historical trends, at customer satisfaction rates. They talked to people who recommended Ford to their friends, and to those who dismissed the brand out of hand. They listened. They learned. Then they put the knowledge to use.
To add structure to their strategy, Ford researchers used a framework known as the Kano model, a theory of product development that classifies customer satisfaction into three basic categories, said Derrick Kuzak, group vice president, Global Product Development.
These categories are:
• Basic Quality – the fundamental reliability of the vehicle
• Performance Quality – includes attributes such as fuel economy and quietness that usually fall into the “more is better” category
• Excitement Quality – those unexpected convenience features that surprise and delight consumers
“It’s not about either/or,” Kuzak said. “It’s all three. We’re still consumed with basic quality, but we’re now also very focused on providing appeal and excitement as well.”
Through features such as SYNC, Ford’s exclusive handsfree infotainment system, and EasyFuel™ Capless Fuel-Filler System, Ford has been adding conveniences customers want.
Recent studies done by independent third-parties show that Ford, Lincoln and Mercury vehicles are ranked higher in quality than the industry average. Ford also scored well on the latest list of “Recommended Buys” in the 2009 auto issue of Consumer Reports.
Quality was what sold Randy Bumbalough of Lake Mary, Fla., on the Ford Expedition Limited he chose in January when he traded in his GMC Suburban.As an architect, the 40-year-old father of three active boys said design as well as fit and finish were crucial to him.
“If you don’t have the right design, if everything doesn’t fit together well, nothing else really matters. This car looks really nice. It fits my needs, it has all the bells and whistles, and I feel good driving it,” he said.
Such comments are being heard more and more these days by Ford employees.
“Our quality is on par with anyone in the world, and I stand by that 100 percent of the time,” Fowler said. “We’ve shown dramatic improvements.”
Such product excellence is essential, he said. So, too, are the processes that lead to that superiority – from design to manufacturing to service. And only people – innovative, motivated, properly trained employees – can make it all happen.
With customer expectations high these days, Kuzak said Ford is up to the challenge.
“Quality is all about customer satisfaction and loyalty. If a customer buys your brand again, there’s no greater statement of satisfaction,” he said. “They were so satisfied, they came back.”

ORLANDO SENTINEL OWNER SAM Zell Admits Tribune Co. Purchase Was a Mistake

NOTE: SAM ZELL PURCHASED TRIBUNE CO. & THEREFORE THE ORLANDO SENTINEL IN 2006=DP

Zell Admits Tribune Co. Purchase Was a Mistake
Sam Zell has admitted that his purchase of the Tribune Co. was a mistake. He said he did not foresee the decline in the newspaper industry. “I was too optimistic in terms of the newspaper’s ability to preserve its position,” he told Bloomberg Television.

Zell said that the sooner the newspaper industry acknowledges that the current model of newspapers does not work, the better, writes the Chicago Tribune.

Still, he said, the company’s filing for bankruptcy in Dec. 2008 was a move that hopefully will “stop the bleeding and preserve a great company.”

Following Tribune Co. into bankruptcy early this year were the Journal Register Co., the Minneapolis Star-Tribune and the parent company of The Philadelphia Inquirer. ZenithOptimedia expects newspaper ad spending will fall 12% in 2009. For the first quarter of the year, some larger newspapers are seeing ad declines of as much as 30%.

Local Newspapers Won’t be Missed by 42% of Americans

Local Newspapers Won’t be Missed by 42% of Americans

If predictions come true, and newspaper closures leave cities across the country without a daily newspaper, many Americans wouldn’t miss it, according to research from the Pew Research Center for People and the Press.

Nearly half (42%) of Americans say they wouldn’t miss reading their local newspaper if it were to shut down, and only 43% say that losing their local newspaper would hurt civic life in their community “a lot,” the study found.

The youngest age groups are least likely to miss newspapers. Among regular newspaper readers, 56% say that if the local newspaper they read most often no longer published – either in print or online – it would hurt the civic life of the community a lot; 55% say they would personally miss reading the paper a lot, writes Marketing Charts.

In the wake of recent, high-profile news about the shaky financial condition of many of the country’s newspapers, the public has become aware of the industry’s financial problems. 53% say they have heard “a lot” about the problems facing newspapers, while 31% say they have heard “a little.” Only 15% say they have heard nothing at all.

When it comes to local news, more people say they get that news from local TV stations than any other source. 68% say they regularly get local news from TV reports or TV station websites, 48% say they get news from local newspapers in print or online, 34% say they get it from radio and 31% say they get local news, more generally, from the internet.

Newspapers have long struggled to attract younger readers. A recent analysis of newspaper readership by Pew Research found that just 27% of Generation Y – those born in 1977 or later – read a newspaper the previous day. That compares with 55% of those in the Silent or Greatest Generations, born prior to 1946.

Far fewer young people than older Americans say they would miss their local newspaper a lot if it were to close. Less than a quarter of those younger than age 40 (23%) say they would miss the local newspaper they read most often a lot if it were to shut down, compared with 33% of those ages 40 to 64 and 55% of those ages 65+.

However, many more of those younger than 40 (41%) say the shutdown of their local newspaper would hurt the civic life in their community a lot. 42% of those ages 40 to 64 (42%) express that view, as do 51% of those 65 and older. Among those who say the loss of the local daily paper would hurt civic life a lot, three in 10 say people rely on the paper to know what is going on in their community, the survey found.

Many of those who say the closing of the local paper wouldn’t make much, if any, difference in their communities note that there are other news sources available or criticize the newspaper’s quality. About three in 10 (29%) say there are other ways to get news, including TV, radio news and the internet. One in five say the quality of the newspaper is poor, while 5% say it is biased. One in ten say they don’t read the paper 9% say they don’t think other people read it either.

Seach Engine Optimization Tools: Part 1

SEO Tools 101, Part 1
 SEW EXPERTS: SEM 101
Those new to the world of SEO may feel a little overwhelmed with all of the tactics that are needed to achieve higher rankings. A good starting place for newbies is Mark Jackson’s search engine optimization column here at Search Engine Watch.
My purpose in this two-part column is to arm you with some good tools to get you started. There are too many tools to list them all here, so I’ll only cover a few.
To make things simple, I’ll break them down into categories: keyword tools; SEO site grader tools; linking tools; browser toolbars; and other SEO tools. Many of these tools have a free or limited version with the option to upgrade to a premium version for a fee.
Keyword Tools
I won’t spend a lot of time here because I covered most of these in my articles on keyword discovery. Employing the right keywords can really make a difference in your SEO campaign. If you begin your campaign without taking the time to find, analyze, and validate your keyword set, then you run the risk of using keywords that won’t perform well for you.
It takes considerable time for your SEO efforts to reach your ranking goals, so it might be months before you realize you needed to use different keywords. That would be a waste of time and money.
A good place to start is SEO Book Keyword Suggestion Tool. I like this one because it links to most of the other existing keyword tools, such as Wordtracker, Keyword Discovery, and tools from Google, MSN, and Yahoo. This one tool lets you explore many others.
SEO Site Grader Tools
If you have an existing site and would like to take a pulse on the SEO effectiveness, then these tools will help. They will analyze your site against specific criteria and produce a report, or even give you a grade. You can even use these tools on your competition to see how you stack up against them.
Website Grader is a great tool for running a health check of your site. Then it will provide a score that incorporates elements such as Web site traffic, SEO, social popularity, and other technical factors. It will also provide advice on how your Web site can be improved from a marketing perspective.
Another SEO site grading tool is Quarkbase. This tool provides a great way to find your site information, including social bookmarking statistics, Alexa ranking, and related sites and domain information.
Linking Tools
You should be aware by now that the number and quality of external links that come to your site are an important factor in achieving good rankings. You need to be able to see how many URLs have links to your site and their quality, which is measured by its PageRank. A PageRank of 10 is the highest and rarest. You’re looking for PR 3-4 and above.
SEO Pro’s Link Checker will report all backlinks to your site. Be patient, it will take time to run this report. This tool will show the PageRank of the pages your URL is on. It will also tell you the number of links on the page and the anchor text for the link. You also have the ability to check the number of backlinks for all of the pages on your site, or just the top domain.
Another important factor in SEO is analyzing your internal links and identifying bad links. You’ll need to isolate any that you have and fix them. Dead-Links will crawl your site, follow all the links and provide a broken link report.
Google Webmaster Tools
Google Webmaster Tools is a free service that provides a wealth of information about your site. After you’ve verified your site, you’ll be able to check for errors, analyze your HTML tags important for SEO, identify top search queries, enhance 404 error pages, and much more. Yahoo has a similar tool with its Site Explorer, and Live Search has its Webmaster Center .
As I stated earlier, there isn’t enough space to cover the numerous SEO tools, but these should help you get started. Next week, I’ll cover some browser SEO toolbars and other SEO tools. If you have a favorite SEO tool that you’ve really found useful, please post it below in the comments or e-mail me.

Dr Pepper Snapple Bucking Trend, Ups Advertising

NOTE: THANX TO JERRY LENZ @ CLEARCHANNEL ORLANDO FOR THIS. IT’S BEEN PROVEN, WHEN OTHERS ARE CUTTING BACK, IF YOU CAN INCREASE YOUR MARKETING YOU WILL GAIN SHARE. ADDITIONALLY, I’LL BET THE 5% INCREASE MENTIONED HERE IS GETTING THEM ALOT MORE ADVERTISERS AS MEDIA OUTLETS FIGHT FOR THE MONEY…THERE’S ALOT OF BARGAINS OUT THERE.=DP

Dr Pepper Snapple Bucking Trend, Ups Advertising

Dr Pepper Snapple Group Inc. is risking a different approach to the recession than other major advertisers: the soft drink maker is boosting its marketing budget, saying that’s what worked best in the last big downturn.

Spending this year will rise by up to 5 percent, the company’s head of marketing, Jim Trebilcock, said in an interview. The company says its total marketing budget is about $300 million to $400 million.

The decision to spend more makes Dr Pepper Snapple an exception in a year when forecasters see overall U.S. advertising spending dropping by 8 to 10 percent.

Company executives said they decided on the strategy after research firm Nielsen produced a study for them that detailed ad spending patterns during the early 1980s, the last prolonged advertising downturn.

The upshot is “dollars this year from a marketing standpoint are actually increasing,” he said. “We believe that if we invest now, then when we come out of this thing in a year or two we’ll be in a much stronger position.”

This year, Dr Pepper Snapple will divide its creative advertising duties chiefly among three agencies. Interpublic Group’s Deutsch L.A. will handle Dr Pepper, Diet Dr Pepper and Snapple; WPP Group’s Y&R San Francisco is responsible for 7UP, Sunkist and A&W; and Laird & Partners will work on the Mott’s brand.

As part of the marketing push, Dr Pepper Snapple is running new advertising for A&W, Canada Dry and Mott’s — brands that were long excluded from fresh ad campaigns.

In addition, Dr Pepper Snapple, the third-largest soft-drink maker in the United States behind Coca-Cola Co and PepsiCo Inc., is investing more in the ongoing make-over of its Snapple brand.

Following its spinoff from Cadbury Plc nearly a year ago, Dr Pepper Snapple has set its sights on reversing slumping sales of Snapple.

As for the marketing mix, Trebilcock said it varies by brand but generally about 70 percent of ad spending occurs on TV, Radio, and billboards, with another 20 percent spent online and the remaining 10 percent used for a variety of other promotions.

(Source: Reuters, 04/16/09)

“Cash for Clunkers” Bill

NOTE: MUCH DEBATE OVER THE SPECIFICS BUT, GENERALLY THE RIGHT IDEA.=DP

Cash for Clunkers” Bill UPDATE
By Jim Motavalli | May 7th, 2009 @ 2:03 pm

Democrats have finally agreed on a vehicle scrappage bill that backs off some of the protectionist, Big Three-promoting aspects of HR 1550, introduced by Representative Betty Sutton (D-OH). But it’s controversial anyway, because it allows American car buyers to get substantial environmentally based subsidies on 15-mpg trucks that could hardly be called “green.”

Under “cash for clunkers,” which is being folded into the omnibus—and sweeping—Waxman-Markey climate legislation, consumers could get a voucher worth $4,500 toward the purchase of a passenger car with at least 22 mpg that improved on the fuel economy of their old one by 10 mpg. A four-mpg improvement would yield a $3,500 voucher.

The program applies to both U.S. and foreign-made new vehicles. It lasts only for one year, and is capped at a million vouchers so the cash outlay (to be taken from the stimulus package) won’t exceed $4.5 billion.

The requirements for trucks are very lenient. The owners of large 6,000 to 8,500-pound trucks could get a $3,500 voucher toward the purchase of a vehicle with at least 15 mpg if it’s only one mpg better than the truck they’re replacing. A two-mpg improvement scores a $4,500 voucher. A 15-mpg truck fails the simple test of meeting the federal Corporate Average Fuel Economy (CAFE) standards.

Light trucks have to get at least 18 mpg, and a two-mpg improvement will yield the $3,500 voucher; five-mpg a $4,500 one.

The American Council for an Energy-Efficient Economy says the scrappage program “needs repair.” According to Therese Langer, ACEEE’s transportation program director, “I can’t see using taxpayer dollars to sell a Hummer H3T [which meets the 15-mpg large truck threshold]. We would welcome incentives to retire gas guzzlers and encourage the purchase of efficient vehicles, but the proposal just isn’t there yet.”

Opposition has also arisen from a wholly different sector: classic car hobbyists, who have traditionally opposed “cash for clunker” legislation because the laws take potential parts vehicles out of circulation. The Hagerty insurance agency, which sells classic car policies, describes federal clunker bills as “a misguided attempt to spur new car sales.”

Lincoln builds a car that nips Lexus, it’s the MKZ!

NOTE: WITH THESE KINDS OF REVIEWS LOOK FOR LINCOLN TO MOVE FORWARD. NOT PART OF ANY BAILOUT, GREAT QUALITY AND STELLAR REVIEWS.GOOD STUFF.=DP

If you told me Lincoln was going to build a car that would nip at Lexus’ heels, I’d tell you that I’ll believe it when I see it. If you told me that car would be the MKZ, I don’t know if I’d believe it even if I did see it.

Well, now I’ve seen it. And I’m starting to believe it.

Meet the new and improved 2010 Lincoln MKZ, which features a new look outside and in and a host of refinements from stem to stern. Can a Lincoln really be as good as a Lexus? Read on and decide for yourself. Price range $34,965 – $43,440, EPA fuel economy estimates 17-18 MPG city, 24-27 MPG highway.

First Glance: Of lounge chairs and punching bags

Before we talk about the Lincoln MKZ, let’s talk about the Lexus ES350. I happen to think the ES350 is one of the best luxury cars on the market: Soft, cushy, coddling, and reasonably priced, the automotive equivalent of a lounge chair on the beach and a cool tropical drink in your hand. What’s wrong with that? Not a damn thing, that’s what. And yet most luxury automakers seem to want to be BMW. Not that there’s anything wrong with BMWs. (Geez, I can’t even type that with a straight face.) I appreciate sporty luxury cars — the Infiniti G37 is one of my favorites — but when I go on vacation, I go to a place where I can relax. Not to a place where some guy punches me in the butt every time I walk over a bump. Am I right? I mean, which would you rather have for your drive to work — the lounge chair or the butt-punching guy?

Lincoln is betting on the lounge chair. Their benchmark for the updated MKZ was the Lexus ES350, with the key targets being comfort, quietness, and interior design. But they had other work to do. The old MKZ looked like a car developed on a budget. Lincoln has updated the MKZ with all-new front sheetmetal, including a handsome split grille. Out back, the old MKZ’s ugly taillights have been swapped for new ugly taillights, which look like a giant red unibrow. Still, the MKZ looks more like its own car and less like a tarted-up Ford Fusion (the car on which it’s based). There were aspects that didn’t need to change, like the roomy back seat and the spacious trunk, and Lincoln has wisely left those alone.

In the Driver’s Seat: Much, much better

MKZ’s interior gets Most Improved Player award; note real wood trim and proper three-port gauge cluster

Inside the MKZ is where things really start to get good. Gone are the old MKZ’s tiny 1970s-style gauges; in their place is a proper three-pod instrument cluster that looks like something straight out of a sports car. A Japanese sports car. The rest of the cabin is more-betterer, too. The first car I drove had a two-tone black-and-tan interior bisected by a lovely strip of blond wood that looked like it came from an actual tree, as opposed to an injection mold and a printing press. It’s a really nice cabin — not quite Lexus ES350 or Mercedes E-Class territory, but very, very close.

The second car I drove had a black interior with aluminum trim. All-black interiors aren’t my cup of tea; many of them try to look sporty but come across as cheap. But I thought the MKZ looked better than the Mercedes C-Class or the last all-black Lexus I drove (an RX400h SUV). For those who want something in the middle, Lincoln offers a bluish-gray interior that is hard to describe and even harder to photograph.

Cars with navigation (a top-notch voice-activated system, by the way) get a big 8″ touch screen that does a beautiful job of displaying map, stereo and climate information without looking cluttered. (Non-nav cars still get the screen, but there’s no touching.)The only real disappointments were the climate and stereo controls, which come straight from the Ford parts bin and have tiny buttons designed for people with magnifying glasses built into their fingertips. Surely Lincoln could have made better use of all that empty real estate on the center stack.

On the Road: Shhhhhhhh

I didn’t have a problem with the way the old MKZ drove. It was a competent handler (that Fusion platform is a real cracker), just not a whole lot of fun. For 2010, Lincoln has split the MKZ’s personality with sport and non-sport versions, both available with front- or all-wheel-drive. The non-sport is Lexus-smooth, yet still feels good in the curves. The sport version, which has firmer suspension settings and lower-profile tires, feels noticeably tighter. It has a firm ride that sticks close to the road, yet doesn’t pummel your backside over sharp bumps. The sport version’s steering is noticeably more responsive, though the feedback through the wheel feels a bit artificial. It’s no Infiniti G37, but both sport and non-sport versions are much more involving to drive than the Lexus ES350. Personally, I prefer the non-sport model. It’s the lounge chair vs. butt-punching thing again, even if the MKZ’s guy only delivers love taps.

What impressed me most, though, were the sound and the silence. Not only did Lincoln go on a witch-hunt for road and wind noise, but they re-tuned the sound of the V6 engine so that when you floor the pedal, you get a racy soundtrack to go with the racy acceleration (as opposed to the coarse mechanical roar of the old MKZ). It sounds — and I hate to keep using this word, but if the shoe fits — Japanese. Best yet, when you ease off the throttle, the engine shuts up. It’s not quite Lexus-quiet at idle — once when driving an ES350, I almost locked it up and walked away while the engine was still running — but, once again, it’s pretty damn close.

Journey’s End: Hard to believe

I’ll be honest: I’m having a little trouble wrapping my head around the fact that the Lincoln MKZ is within a hair’s breadth of being as good as the Lexus ES350. It’s one of those things the human mind just wasn’t built to handle, like the concept of infinity and the fact that without makeup, Paris Hilton really is kind of hot. It can’t be true. And yet… it is.

Pricing for the 2010 MKZ starts at $34,965. That’s $180 less than the ES350, and you get more stuff, including heated and cooled leather seats and the fantastic SYNC system (which allows voice control of your Bluetooth phone and iPod or Zune). The MKZ is available with a bevy of nifty options, including rain-sensing wipers, headlights that turn with the steering wheel, a rear view camera and a blind spot warning system with Cross Traffic Alert (helpful for backing out of parking spots). Go for all the gizmos, including all-wheel-drive, and the sticker rises to a mere $43,440. Which means…

Oh, my. It means the MKZ is almost as good a deal as my favorite luxury bargain, the $42,000 Hyundai Genesis.
Stop. My brain hurts.

“But wait,” you say. “American cars are built like crap. I want a Lexus, because it won’t give me any trouble.” Ready for this? According to Consumer Reports, which uses real-world data for their ratings, the current MKZ is every bit as reliable as the Lexus ES350.

Ow.

I think I need to sit down. Anyone have a lounge chair I could borrow… and maybe a drink? — Aaron Gold

New cars become more affordable with lower price and new incentives

NOTE: RIGHT TIME TO BUY…MORE THAN JUST A SLOGAN TO HELP DEALERS. PEOPLE THAT HESITATE DURING THIS PERIOD MAY REGRET IT.=DP

New cars become more affordable with lower price and new incentives
Alisa Priddle / The Detroit News
The average family may have less income, but that does not put a new car out of reach as vehicle prices fell even more sharply during the first quarter, according to Comerica Bank’s Auto Affordability Index.

It took 21.5 weeks of median family income to buy a $26,000 new car or truck, said Dana Johnson, Comerica’s chief economist, which is 1.3 weeks less than it was during the fourth quarter of 2008 when the cost of an average-priced vehicle was $1,700 higher.

It is the lowest since the index was started in 1979, Johnson said.

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“It should be no surprise that cars are very affordable now,” Johnson said. “With weak demand, there are a lot of incentives,” he said, both in discounts and lower interest rates on car loans. Additionally, the credit market is loosening up.

The median family income in Michigan with two wage-earners in the house is $53,575, according to the U.S. Census Bureau.

Johnson said there has been a longtime trend of automakers being slow to increase the price of new cars and the sticker prices have not increased as fast as incomes have.

The economist expects vehicles to set a new record of affordability during the second quarter as Detroit’s Big Three in particular increase incentives to try to claw back lost market share.

Chrysler LLC announced new incentives this week of as much as $6,000 on a new vehicle in a bid to sustain sales while it restructures under bankruptcy protection.

Detroit’s automakers offered an average of $3,412 in incentives per vehicle in April, according to Autodata Corp. The industry average incentives offered in April were $2,931 per vehicle.

Pickups Sales Plunging But Ford Buyers Spending More

NOTE: MORE GOOD NEWS ABOUT FORD. GAINING MARKET SHARE IN A DOWN ECONOMY. NICE.=DP
Pickups Sales Plunging But Ford Buyers Spending More – What Gives?

May 12, 2009

By Bill Visnic

DETROIT — By now, everyone knows the raw sales numbers are bloody red: the full-size pickup market was one of the first to be savaged by last summer’s high gasoline prices and by the end of 2008, pffft — five points of market share and some three-quarters of a million units were gone.

Maybe never to return. At least to the segment’s former glories.

But there may be a sliver of a silver lining in the pickup sales plunge. At least one automaker — Ford Motor Co. — says those still buying pickups are splurging. Since its launch late last year, the “mix” of Ford’s new ’09 F-Series has been unexpectedly rich, slanted toward more expensive and heavily optioned models and trim levels.

The best example: the F-Series’ ultra-plush Platinum — the new top-of-the-line trim level — has run at 8 percent of the total F-Series mix. Ford predicted a 3 percent take rate.

Wait. We’ve been told those big-spending “lifestyle” pickup buyers are gone and to expect the segment’s remaining customers to be the sensible and more frugal “core” buyers. So what gives with the big proportion of fancy-pants pickup sales?

Those Buying Are Spending

Thanks to high gasoline prices and the general economic meltdown (and mix in a dose of enviro-pressure) experts figured the fast-fading pickup segment would revert to the “work” user — buyers unlikely to go for the luxury accouterments that long distorted our sense of the pickup’s main purpose.

“We anticipated the same thing,” said Doug Scott, Ford’s truck marketing manager. But it’s gone beyond the typical “launch mix” effect when new models tend to attract initial buyers that spend more. But by early April, the mix for the new F-Series was still running unnaturally rich, surprising Scott and Ford’s marketers.

Here’s Ford’s own copy for the Platinum: “New for the 2009 F-150 is the Platinum series, the most luxurious F-150 ever and the answer to a perennial question: Just how high-end do truck customers want to go?

They want to go pretty high, apparently.

Scott told AutoObserver it’s not just buyers glomming onto a new mega-premium trim level in the Platinum; the lavish King Ranch trim was running at 5 percent of F-Series build and the still-loaded Lariat trim also was “running ahead of expectations.”

Also contributing: the F-Series’ new Crew Cab body style, which adds a noticeable 6 inches of legroom for rear-seaters. It costs more, but build is running about 5 percent ahead of projections, said Scott.

It all adds up to ’09 F-Series transaction prices about $2,000 more than competing pickups, according to Ford chief sales analyst George Pipas.

“Never-Nevers” Did Leave

Buyers opting for high-end trim levels and more options surprised just about everyone, said Scott. But as one might expect, there are a variety of reasons, many unanticipated.

Scott said a baseline reason is the “general misperception” that image buyers made up a large portion of the full-size pickup market. He said the image or lifestyle buyer may not necessarily have been as quick as pundits predicted to abandon pickups. Only the “never-never” customers — those who never tow (or rarely use the bed) and never need four-wheel-drive utility — were the ones to drop pickups forever.

Moreover, plenty of lifestyle buyers have money for lifestyles that require pickups for towing power toys and campers or heading off-road. When the economy went bad, some of these customers left the market, but many stayed — and will stay — Scott said, because they require a vehicle that supports their passions.

Crash Changed Market Dynamic

Another factor to consider, said Scott, is the overall effect of the credit crunch. It created a market in which buyers who qualified for credit were disproportionately wealthy; their ability to afford more led to selection of vehicles with richer trim and higher equipment levels.

A “regular” industry environment would mean a lower mix of high-end trims, Scott said.

“Some [image buyers] went to the sidelines, but they didn’t all just leave. What we’re experiencing suggests that [image buyers massively leaving the segment] just isn’t the case.

“I don’t think we’ll continue to sell [Platinums] at an 8 percent rate,” he conceded.

Because of high fuel prices and the industry’s credit crisis, “We felt more people had gone to the sidelines,” said Scott. And they did. What was left was an atypical mix of customers — but a mix nonetheless, not just commercial/trade buyers.

Sixty percent of “core” buyers — those least likely to leave the segment — told Ford late last year they would buy a new pickup, but resale values had plunged to the point they couldn’t afford to trade.

Cue incentives.

Higher incentives made up the lost resale values and helped to convince buyers, Scott said. Those getting into the market were choosing highline trims at a disproportionate rate compared to the competition because the truck was new, but incentive money may have helped, too.

Sales Stink, Share Shifting

That brings Ford to its current place. It’s nice (and nice for per-unit profit) that a high ratio of F-Series sales continue to be upper-trim models and that transaction prices are markedly higher than the competition’s. Many are predicting an industry mini-recovery in the second half. And a used-vehicle scrappage program bouncing around Washington, DC, could boost projected new-vehicle sales by 1 million units or more.

But that doesn’t change the fact pickup sales are a shadow of the volume to which the industry became accustomed — or some might say addicted.

After the vile first quarter, Ford was tracking to sell, on an unadjusted basis, about 325,000 F-Series this year. There’s no coming anything near the number of F-Series it moved even last year (475,240, according to Edmunds.com), much less approach the heights of the early part of the decade.

Scott said Ford is hoping for total retail and fleet sales of 2 million this year. Compare even with the almost 2.9 million sales in a depressed 2008. That’s a deep sales and profit wound the industry won’t heal overnight.

Ford said it’s gained upward of 5-6 points of retail market share in the turmoil, and that’s what’s sustaining Scott “The people who are in the market like the new 2009 formula we put out there.”

Consumers Say Fewer Ads Spell Trouble

NOTE: PERCEPTION IS REALITY; BUILD CONFIDENCE IN YOUR  BRAND BY CONTINUING TO ADVERTISE. DISCOUNTING HELPS.=DP

Consumers Say Fewer Ads Spell Trouble

More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates that the business is likely struggling, according to a study from Ad-ology Research. At the same time, a large majority of consumers think businesses that continue to advertise are competitive and/or committed to doing business.

The research study, Advertising’s Impact in a Soft Economy, was undertaken to determine whether stopping advertising during the recession could harm a business. It found that advertising appears to play a key role in consumers’ views of how a business is doing. By not advertising, businesses may be sending a warning signal to current and potential customers, Ad-ology said (via Marketing Charts).

For example, when consumers no longer see/hear advertising from an auto dealership during a down economy, 50% say they view the dealership as struggling. When a dealership advertises during tough times, 34% believe the dealership to be committed to doing business.

Consumer perception is similar for stores and banks. When advertising ceases among the following businesses, consumers thing they are struggling and may not be in business much longer. However, when they continue to advertise frequently, consumers believe they’re committed to doing business and are competitive and performing well.

“It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand,” said C. Lee Smith, president and CEO of Ad-ology Research. “Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value.”

The study also found that:

62% of respondents say media news reports make the economy worse, and 44% say they consume less news now than they did a year ago.
46% of consumers view a company’s products/services less favorably if that company is announcing layoffs.
40% of consumers use coupons more now than they did a year ago% are somewhat willing to pay more for “green” products that claim to be better for the environment, and 7% are very willing.
46% are somewhat willing to pay more for “healthy” or “organic” food products, while 7% say they are very willing.
A deeply discounted price is the number-one factor that would make consumers more likely to purchase a big-ticket item (more than $1,000).
TV, newspaper, direct mail, and internet top local media from which consumers saw/heard an ad within the last 30 days that led them to take action.
Store websites rank second only to search engines as the way consumers research products and shop online.
Research from Nielsen IAG earlier this year found that advertising does indeed help ailing financial brands, and echoes these findings from Ad-ology.

About the survey: Ad-ology Research surveyed an online consumer panel of 1,225 adults in a manner that is 98% representative of the adult population of the United States.The survey was fielded from April 24-29, 2009.

Despite downturn, these cars are still selling

NOTE: WITH ALL THE BAD NEWS OUT THERE, IT’S BEEN EASY TO OVERLOOK THESE FACTS=DP

Despite downturn, these cars are still selling
The models — including more than a few SUVs — still leave showrooms
The Hyundai Tiburon led the list by selling 3,353 cars in April, up from 894 the year before. Its suggested retail price is $17,270.

The Audi S5 coupe packs a 354-horsepower V8 engine, a taut sport suspension and three customized drive modes into one sleek ride. At a time when the auto industry is in the pits, the S5′s boldly refined body, complete with adaptive halogen headlights, a panoramic sunroof and a rear spoiler, is seducing reluctant buyers to open their wallets.

The Audi comes in fourth on our list of 19 cars that broke out of the auto doldrums and sold better or held steady last month compared with April of 2008. With a base price of $40,700, 680 S5s sold last month, compared with 484 in April 2008.

To compile our list, we used sales records from Autodata Corp., a data and analysis provider for the auto industry. The list ranges from the very affordable sixth-best seller, Hyundai Accent at $9,970, to the rather pricey $88,475 Jaguar XKR, No. 19 on the list. The Jag sold the same number of cars in April 2009, 127, as it did in April 2008.

Many of the cars that fared well this April have simply continued their positive sales from March: Jeep’s $21,460 Wrangler, Nissan’s $29,930 350Z, Volvo’s $23,800 C30 and Subaru’s $19,995 Forester among them.

Others, like the $37,915 Chevrolet Tahoe, $27,045 Hyundai Veracruz, $36,800 Lexus RX and two models from Land Rover, proved that crossover and sport-utility vehicles aren’t going anywhere, even if they are getting a bit smaller.

James Bell, the editor of Intellichoice.com, an automotive information provider, says full-size SUVs and large pickups are holding onto buyers at the moment too, because people need the vehicles for work.

Though this spring has been a rough time for auto sales, some SUVs performed relatively well. “The assumption has been that people are holding off purchases, but the nice thing about having the desperately hard months like this is that it’s just helping to build more pressure into this pent-up demand, which is eventually going to release,” Bell says. “It’s kind of like a volcano, I guess you could say. It’s definitely feeling the pressure.”

Notably, no vehicles from quality stalwart Honda or luxury automakers BMW and Mercedes-Benz made the list. Despite their tanking stock price and desperate grasp for government cash, American brands Chrysler, Fordand General Motors each had at least one model in the lineup. The $19,000 Ford Fusion, selling 18,321 cars this April, did the best of the Americans, coming in at No. 7. That’s a nearly 22 percent hike from last April.

In fact, Ford beat Toyota last month in overall sales, although company-wide sales at Ford tumbled 31.3 percent last month. At Toyota, April 2009 sales plunged 41.9 percent over last year. Here’s how a few other brands compare: Audi sales were down 9.3 percent, Hyundai lost 13.6 percent and Subaru declined just 6.7 percent for the month. In this market, that’s almost as good as a gain.

Still, Chrysler’s takeover by Fiat and the overall sales decline from domestic automakers (down 36.3 percent in the U.S. in April) make for a bleak spring. All told, 819,540 vehicles sold in the U.S. last month, down 34.4 percent from 1,248,370 units in April 2008.

Meanwhile, Chrysler’s dealers are awaiting their fate while the bankruptcy deal is hammered out, and General Motors is refiguring its viability plan yet again. GM’s Pontiac woes will have a direct, lasting and negative impact on car sales, says Lonnie Miller, the director of industry analysis for R.L Polk & Co.

“It impacts loyalty,” Miller says. “Will it impact people’s consideration to buy a Pontiac? I believe it will. I think it’s going to make them pause for a minute.”

Sales of several models last month did hold some surprises, even if they didn’t beat last year’s figures. In a shift likely related to the domestic auto industry’s ill health, the $20,905 Honda Accord sedan unseated the $21,565 Ford F-150 as the best-selling vehicle in America. The F-150 has been the annual top-seller for decades, selling 29,212 units last month over the pickup’s 28,757. Still, each of those sold fewer year-over-year, with the Accord down 15.6 percent and F-150 down 35.8 percent.

Edmunds:Terminated Chrysler Dealers Offer Bargains, Earn Slim Profits

Terminated Chrysler Dealers Offer Bargains, Earn Slim Profits, Edmunds.com Reports

May 22, 2009

SANTA MONICA, Calif. — Chrysler dealerships, whose franchise agreements have been terminated by the automaker effective June 9, are making significantly less profit on each vehicle sale, in large part, because they are offering the best deals to customers, Edmunds.com’s analysis shows.

Profit margins for ill-fated Dodge dealerships are currently earning about $825 less per car, while closing Jeep dealerships are earning approximately $1200 less per car.

In April, prior to the announcement of the 789 dealers whose franchise agreements would be terminated, dealerships that eventually received Chrysler’s letter were earning about $825 less per vehicle than other dealerships. Now that difference has climbed approximately 300 percent to approximately $2,700 per vehicle.

“Any consumer seeking to take advantage of the great deals available should act fast, since there isn’t much inventory to be had at the dealerships that are closing,” advised Edmunds.com Analyst Jessica Caldwell.

Average Profit Margin Differential

Dodge
Jeep
Chrysler

Jan-09
$830
$710
$610

Feb-09
$1,844
$1,112
$115

Mar-09
$725
$311
$679

Apr-09
$888
$354
$828

May-09
$823
$1,205
$2,672

Source: Edmunds.com

MICROSOFT Shells Out Bucks for Bing Ad Campaign

NOTE: EVEN THE BIGGEST BELIEVERS IN ONLINE STILL USE TRADITIONAL MEDIA WHEN THEY WANT A BIG LAUNCH. ALSO, THIS STATEMENT, ” Google found that after putting its logo and treatment on another engine’s search results, users still prefer results with a Google logo, even if they’re not Google results.” CLEARLY PROVES BRANDING DOES WORK!=DP

MFST Shells Out Bucks for Bing Ad Campaign

Now ‘Bing’
Microsoft is planning the launch of an ad campaign consisting of print, radio, online and TV ads to promote its new search engine.

The engine is code-named Kumo, but its formal moniker is expected to be Bing.

The campaign is led by ad firm JWT, the agency that took the baton from McCann Erickson in July ‘08 to man the company’s business solutions ad account (via DMNews and MarketingVOX).

Microsoft will spend $80-100 million on the campaign, according to sources close to the company. Compared to national rollouts for big consumer product launches, which run as high as $50 million, the budget is considerable, notes Ad Age.

It’s even more sizable when you consider that Google spent about $25 million on all advertising last year ($11.6 million of which focused on recruiting), according to TNS Media Intelligence. Microsoft’s total ad spend for 2008, in contrast, was a whopping $361 million.

“This is really testing whether Microsoft can still do what they did when they were young, which is enter a market from behind and catch up. They haven’t had what it takes to do that for a long time,” stated analyst Rob Enderle (via Bloomberg).

Google’s search market share in April ‘09 was 64%; Yahoo took 16.3% of the market. Though Microsoft/Windows Live Search performed well in the shopping search category and grew 7.2% year over year overall, the business still only grabs less than 10% of the U.S. market, according to Nielsen Online.

Moreover, 65% of people claim to be satisfied or very satisfied with online search, specifically Google search, as-is. Much of it has to do with the Google brand. In internal testing, Google found that after putting its logo and treatment on another engine’s search results, users still prefer results with a Google logo, even if they’re not Google results.

The new ad campaign will try to cause a psychological rift between users and the Google name, with messages that insinuate search engines don’t work as well as users think they do, that it doesn’t really “solve” their problems.

Shashi Seth, a former Google executive, now chief revenue officer at Cooliris, likens the Bing marketing challenge to that of the Apple iPhone before it was introduced. Before iPhone, people didn’t know that they even wanted a touchscreen, or that applications like Yelp and Shazam would improve their lives, he said. But through ads, Apple marketed both a void and a way to fill it.

If Microsoft is going to succeed at re-training search users to want more, it will have to deliver a game-changing service. As far as branding goes, it might have to reinvent itself altogether, hoping that users will forget Microsoft’s failures in search and reimagine it as a successful contender, writes John Paczkowski on All Things Digital.

Ford’s New Mykey System Presented at Ford Lincoln Mercury of Gainesville

Demo Ford’s first driveable prototype with the teen safety feature MyKey!

 Ford Motor Company is introducing a nFLMG0905MYKEY1 (3)ew feature called MyKey™ that enables parents to encourage their teens to practice safer driving behavior and address the number one cause of teen fatalities – auto accidents. The Ford MyKey™ Teen Safety demonstration was  held at Ford Lincoln Mercury of Gainesville, 2201 N Main St, Gainesville, FL on Tuesday, May 26 from 2-3:30 pm. The Gainesville Sun and other members of the press were in attendance at the event. It was a prestigious honor for Ford Lincoln Mercury of Gainesville since it was one of eight dealerships in the state of Florida to host a presentation of the new technology.

FLMG0905MYKEY1 (7)

Ford’s new Mykey was named first on AAA’s list of top 10 picks for new auto technologies. Mykey will debut as a standard feature this summer on the 2010 Ford Focus and will quickly be offered on many other Ford, Lincoln, and Mercury models. It allows parents to set top speed and audio limits to help encourage their teenagers to drive safer, more fuel efficiently and increase safety belt usage. Some of the basic features of Ford’s Mykey technology allow parents to limit a vehicle’s top speed to 80 mph and/or the stereos volume up to 44% of its max and set a sustaining chime if the seatbelts aren’t being used.

 

Holding the key

The MyKey system allows the parent to program any key through the vehicle message center, which updates the SecuriLock™ passive anti-theft system. When the MyKey is inserted into the ignition, the system reads the transponder chip in the key and immediately identifies the MyKey code, which enables certain default driving modes, including:

  • Persistent Ford Beltminder™ with audio mute. Ford’s Beltminder system typically provides a six-second reminder chime every minute for five minutes. With MyKey, the Beltminder chime continues at the regular interval and the audio system is muted until the safety belt is buckled. A message center display “Buckle Up to Unmute Radio” also appears on the instrument cluster.
  • Earlier low-fuel warning. Rather than a warning at 50 miles to empty, MyKey provides a warning at 75 miles to empty.
  • If MyKey is in the ignition, features such as Park Aid and BLISTM (Blind Spot Information System) with Cross Traffic Alert cannot be deactivated.

Additional MyKey features that can be programmed through the vehicle’s message center setup menu:

  • Limited top speed of 80 mph
  • Traction control system, that limits tire spin, cannot be deactivated
  • Limited audio volume to 44 percent of total volume
  • A speed alert chime at 45, 55 or 65 mph

Using MyKey to teach teens to avoid speeding can provide an added benefit – improved fuel economy. Ford research shows that driving 55 mph instead of 65 mph consumes 15 percent less fuel, and mastering other eco-driving habits such as avoiding jackrabbit starts and excessive idling can help improve fuel economy by more than 50 percent.

Financial problems of rivals gives Ford opportunity to lure new customers

NOTE: I THINK WE’VE ALL BEEN WAITING FOR THIS TO HAPPEN. FORD SHOULD REAP THE BENEFITS OF PRO AMERICAN & ANTIBAILOUT BUYERS. FORD DEALERS  HAVE BEEN DOING THEIR HOMEWORK AND ARE READY.=DP

Friday, May 22, 2009
Ford unveils programs to woo GM, Chrysler buyers
Financial problems of rivals gives Ford opportunity to lure new customers
Bryce G. Hoffman and Alisa Priddle / The Detroit News
As Chrysler LLC and General Motors Corp. move to dismantle brands and close dealerships, other automakers are moving in to pick up the pieces.

Analysts said it will take a couple more months to fully gauge consumer reaction to these moves, but Haig Stoddard of IHS Global Insight said one thing is already clear: “Ford is likely to be the big volume winner.”

While Chrysler touts the benefits of “quick-rinse” bankruptcy — something GM is expected to soon enter into as well — Ford Motor Co. is in the middle of one of its most aggressive new product roll-outs in years. And as the other automakers take tax dollars, Ford’s decision to mortgage its U.S. assets before the credit markets collapsed has allowed it to eschew federal aid, at least for now.

Now, the Dearborn automaker is unveiling pilot programs to give Chrysler customers more money to help pay off their loans so they can buy Ford models. If the strategy works, Ford may soon be doing the same thing for GM owners.

“We’re going to be aggressive,” said Ken Czubay, head of U.S. sales and marketing for Ford. “But we’re not going to be predatory.”

Ford dealers across the country are seeing more and more Chrysler and GM trade-ins, he said.

“There are a lot of people out there that don’t like the concept that government is running these companies,” Czubay said. “They’re also disillusioned by the resale value of their products.”

That is becoming a real problem for Chrysler owners, said IHS Global Insight’s George Magliano.

“Their prices are dropping 40 to 50 percent from what the residuals should be,” he said.

As a result, Ford dealers are finding that many Chrysler owners owe more on their vehicles than they are worth. That makes it difficult for them to afford a new car or truck, so Ford is making additional money available to dealers to help them bridge that gap.

Czubay would not give specifics, saying only that the amount varied by model and was less than $1,000.

Ford also is providing additional training to sales and service staff at its dealerships to help them “transition” Chrysler and GM customers to Ford products.

Long-term view ‘critical’
Michael Robinet of CSM Worldwide said Ford needs to be careful not to get greedy, particularly as Chrysler and GM increase the incentives on their vehicles to offset the negative publicity generated by their financial woes.

“Ford incentive action has gone down, and we applaud that,” he said, adding that it is critical that Ford maintain that disciplined approach. “The long-term view is still critical here. A fire sale doesn’t make a lot of sense.”

Though its sales remain down with the rest of the industry, Ford has gained retail market share in six of the last seven months, and seems poised to do it again in May. Ford is also boosting production as its cross-town rivals idle their factories to reduce excess inventories.

Magliano predicted that Ford’s factory output could actually begin exceeding last year’s levels by August.

Jesse Toprak of Edmunds.com has been tracking Ford’s conquests — customers who previously owned other brands — and says sales data shows that, since the beginning of the year, more GM and Chrysler customers are switching to Ford. That has accelerated in recent weeks, with the percentage of customers who trade their GM or Chrysler vehicle in for a Ford product increasing by 5 percent to 10 percent, depending on the brand.

“That is actually a big shift, because those patterns rarely change by more than a percent or two,” Toprak said, noting that his numbers are only beginning to reflect the impact of Chrysler’s bankruptcy filing. “They’re likely going to continue to gain even more momentum and steal more customers from Chrysler and GM in the coming weeks.”

Toprak said he believes Ford can sustain these gains, too, because it is investing more money in new products than GM or Chrysler.

“They’re making minimal investment in new products because they’re worried about their survival,” he said. “That gives Ford an additional advantage going forward.”

Asian carmakers benefit
Toprak said Korean automakers are also picking up some sales from GM and Chrysler, but he said most of those customers prefer to stick with an American brand. Toyota Motor Corp. and Honda Motor Co. have picked up some new customers, too.

With every automaker struggling to make it through one of the biggest downturns in the industry’s history, Magliano said no one can afford to pass on the opportunity to increase sales at the expense of the competition.

“Incentives are at record levels,” he said. “The Asians are aggressive. Toyota is pushing leases to try to take advantage of the weakness in Detroit.”

There have been internal debates at Ford about just how aggressive it should be.

On one extreme, some marketeers have advocated a no-holds-barred approach, including direct mailings to every GM and Chrysler owner in the United States noting the uncertain future those companies face and offering cash incentives to buy a Ford. Others are anxious to avoid the appearance of gloating at their rivals’ troubles.

Czubay said Ford has decided to focus on its new cars and trucks.

“We’re going to aggressively market the new products,” he said. “We still have some very capable Asian and European competitors.”

Struggling Malls Stage Events to Boost Spending

NOTE: OBVIOUSLY, THIS DEMONSTRATES THE POWER OF EVENTS. THERE’S ALSO SOME GOOD INFO HERE ON CONSUMER CONFIDENCE.=DP

Struggling Malls Stage Events to Boost Spending
Published on May 26, 2009
With impulse shopping at a standstill, malls and shopping centers have boosted their reliance on staging events – which often have nothing to do with shopping – in order to goose spending.

Malls are adding music festivals, wine tastings, art fairs, high school fundraisers and cooking seminars, among others, according to The Chicago Tribune.

“Free events and free entertainment are very attractive when times are tough. If you can’t afford to take the family out to a movie, you might still go down and hear a band at the mall,” says Brian Kilcourse, managing partner at Miami-based retail consulting firm Retail Systems Research.

One mall event planner estimates that the number of events at shopping malls has increased as much as 20% this year.

A music and sports touring event from teen retailer Journeys and other sponsors drew 22,000 to a Chicago mall, 18,000 to a mall in Baltimore and 15,000 to a mall outside Las Vegas. That’s thousands of people attending a mall event who may be enticed to spend money while they’re there, even if they hadn’t planned to.

U.S. shopping traffic fell 16% in the U.S. in March from the same month the prior year, following a 9% decline in February and a 13% drop in January, according to ShopperTrak RCT Corp. And in the 12 months ended March 31, malls collectively posted a 6.5% decline in same-store sales, according to Green Street Advisors Inc., a real-estate research firm (via The Wall Street Journal).

Standard & Poor’s last month dropped the credit ratings of the department-store sector, sending Macy’s Inc. and J.C. Penney Co. into junk territory. Meanwhile, Sears is expected to close 23 stores in coming months and General Growth Properties, which owns more than 200 malls in the country, filed for bankruptcy protection last month.

But some signs indicate an improvement. The Consumer Confidence Index built upon its dramatic April increase with a 14.1-percentage point jump in May, writes Retailer Daily. The Index now stands at 54.9, up from an adjusted score of 40.8 in April. It stood at 26.9 in March.

The percentage of consumers rating current business conditions as “bad” increased during the past month, from 44.9% to 45.3%. However, the percentage of consumers rating current business conditions as “good” also increased, from 7.9% to 8.7%.

North Central Florida Car Sales Up

North Central Florida Car Sales Up
by TV20 News Desk · Jun 02nd 2009 · See more Local News

VIDEO:

http://www.wcjb.com/news/3974/north-central-florida-car-sales-up

Of all the places to look for signs that the economy might be turning around, automakers are probably far from the top of your list. It might be time to put that blinker signal on though, one car maker’s business is improving, and that goes double for one of their North Central Florida dealerships.
Ford reported a 20% sales increase nationally from April of this year to May. According to Auto Data Corp, General Motors’ sales increased 11 percent, 3 percent for Chrysler. In Gainesville, the Ford dealership says their products actually increased 52 percent in the same time period.
“The consumers are out shopping and we’re getting some really good traffic,” said Ford, Lincoln, Mercury, and Hyundai of Gainesville General Manager John Lanza, “customers coming by shopping and I think their confidence level has really risen versus a few months ago.”

Ford pulls ahead as GM, Chrysler get ‘rinse’

It’s a position that’s pushing customers into Ford showrooms by default, as it were, according to Jack Kain, owner of a Ford dealership in Versailles, Ky.

“We’ve had so many people come in who have never come into a Ford dealership before, who have told us they were so happy Ford wasn’t having to borrow money from the government,” said Kain.

These customers are coming from both domestic and foreign nameplates, he noted.

“We’ve never had so many foreign cars on our [used car] lot,” Kain said.

It’s a perspective echoed by Rik Paul, automotive editor for Consumer Reports.

“A lot of people are thinking of buying American because they want to do their bit for the economy, but they are turned off by the problems at GM and Chrysler,” he said.

In fact, 63 percent of consumers surveyed by AutoPacific reported concern about buying from Chrysler, and 54 percent worried about buying from GM, even before the company filed for bankruptcy Monday, according to Ed Kim, director of industry analysis for the consultancy. By contrast, only 13 percent of consumers expressed concern about buying from Ford, he added.

Consumer Reports found an even stronger aversion to insolvent carmakers, with 78 percent of those surveyed saying they were unlikely to buy from a manufacturer in bankruptcy and 64 percent saying they were very unlikely to do so.

Shoppers not only say they are more comfortable buying from a solvent car manufacturer, they are voting with their dollars and driving Ford sales upward while Chrysler and GM shoppers hesitate.

“May will mark the seventh month in the last eight that Ford has increased its retail market share,” said George Pipas, Ford spokesman for sales analysis and reporting. “That hasn’t happened since early ’90s,” when the company’s sales were powered by the twin dynamos of Taurus and Explorer. “At the retail level, last month’s 13 percent share was a point higher than a year ago,” he added.

(Ford and rival carmakers were scheduled to release official sales figures for May Tuesday.)

Ford has significantly curtailed sales to daily rental fleets, a onetime mainstay, and now rental sales account for only about 10 percent of production, a volume that is on par with competitors like Toyota, Pipas said. In the past, fleet sales were substantially less profitable than retail sales, but the profit gap has nearly evaporated under the harsh reality of mountainous incentives on retail sales.

The reduced fleet sales improve residual values, making Ford cars more financially appealing, according to Pipas.

But what about later this year or next, when slimmed-down GM and Chrysler get back in the car game in earnest, and their trips through bankruptcy relieve them of substantial costs? Will Ford be disadvantaged, or will the company take the sales lead from GM and power away on the momentum it is now building?

Most of the advantages still will lie with Ford, even after GM and Chrysler benefit from deeper cost cuts than Ford may be able to achieve without bankruptcy and White House intervention.

Ford enjoys greater consumer confidence, holds esteem for its aversion to government aid, is getting higher ratings for quality and reliability, and has an array of fresh products queued up for introduction in coming months, including a refreshed Taurus family car that is earning praise from those that drive it.

What You Can Learn from Small-Town Auto Dealers

NOTE: THIS IS FROM HARVARD BUSINESS. POSITIVE STUFF ABOUT THE WAY SMALLER DEALERS DO BUSINESS. PERHAPS THE ONLY THING MISSING IS THAT IN JUST ABOUT EVERY ONE OF THESE TOWNS, THE DEALER IS AREA’S BIGGEST ADVERTISTER TOO.=DP

Voices » John Baldoni » What You Can Learn from Small-Town Auto Dealer

12:15 PM Monday May 18, 2009

 

Until recently, one of the less-reported aspects of the crisis in the automotive industry is the effect that its radical downsizing is having on auto dealers. Now that General Motors and Chrysler have axed roughly 1,100 and 800 dealers respectively, stories of dealerships closing are front page news. While cuts have come largely at the expense of urban dealers, some smaller rural stores are surviving — at least for now.

Many of these smaller dealerships are family enterprises; three and even four generations old. Their longevity is a testament less to Detroit’s products and more to their smart and sharp business practices. And now that some of their competitors are closing they may do even better. Let’s consider what business leaders can learn from these small-town auto dealers.

Know your customers. Small-town auto dealers know what vehicles their customers prefer. This comes from having long-lasting ties to individual families, selling new cars and trucks to grandparents and parents, and putting the children into affordably priced used cars. Part of knowing your customers means considering their changing tastes. Decades ago many of smaller dealers signed franchise agreements with Asian and European manufacturers like Honda, Nissan, Toyota and VW to provide their customers with even more makes and models from which to choose.

Service matters. Dealers will tell you they make more servicing cars than selling them. Manufacturers pay for warranty repairs but good dealers, particularly those in small towns, will keep their customers returning after the warranty expires because they provide reliable servicing. They also have a reputation for honesty, a word that is not often associated with automotive retailing. Local dealers have no alternative to treating their customers right; they live in the community, and word gets around.

Invest in the community. In many areas, car dealers are the soft touch for youth sports teams as well as school musicals and church raffles. True, it is good visibility to have your store’s name on scores of soccer uniforms and and church bulletins, but something more is at work. Car dealers are part of the life of these towns; their philanthropy supports causes and activities that add texture to the community.

Maximize opportunity. Dealers are entrepreneurs. Those who are not closed will get aggressive. As reported in the Wall Street Journal, surviving dealers will buy up inventory at a good price, add salespeople (some from former competitors), and expand their sales reach. One Dodge dealer in Jackson, Michigan — right in the heart of “downturn valley” — said, “I’m going to buy every car I can find with every dollar I have until I run out of money.” While that attitude may have led investment bankers to run Wall Street into the ground, hearing it from a dealer sounds more optimistic. He has faith in himself, his business, and his community.

Not every dealer is worthy of imitation. Just as there are poor businessmen in every field, there are less-than-reliable automotive retailers, especially ones who cheated their customers, not to mention their own employees. But these smaller, successful dealerships can teach us a lesson or two that may help us grow our own businesses.

As a youngster I recall the dealer showroom windows that were papered over every September in anticipation of the sparkling new models that would soon be introduced. I still remember drooling along with my chums at the brand-new 1963 Corvette parked at the corner of Carl Schmidt’s Chevrolet in Perrysburg, Ohio. We ran our fingers over the radical new lines of the first Stingray. No salesman shooed us away; our ogling and awing was a kind of third-party endorsement.

Maybe that’s another lesson; let the kids touch the merchandise and one day, he’ll tell his friends about you.

Consumers Intend To Spend But Remain Cautious of Where

NOTE: MORE GOOD NEWS. ALSO, ATTENTION RETAILERS; THE VALUE POSITION IS STILL THE BEST ;POSITION TO OCCUPY.=DP

 

Consumers Intend To Spend But Remain Cautious of Where
By Mike Duff | June 7th, 2009 @ 8:33 pm
Consumer intent to purchase is rising a study by research firm NPD Group suggests, but the sales benefit from that may be limited to the very same bargain retailers that have been most successful in the recession thus far.

NPD’s Retail Response Indicator, which measures consumer spending intentions on scale where zero corresponds to definitive plans to spend less and 100 represents definitive plans to spend more, rose almost 4.5 points, from 39.5 in April to 43.9 in May. The indicator has been on an upward swing since March and has reached its highest level since October of last year.

Of course, consumer confidence also gained in May with the Conference Board reporting that its index now stands at 54.9 up from 40.8 in April.

Despite that, the International Council of Shopping Centers reported last week that major retailer sales fell 4.6% in May versus the same period last year, deeper than the two percent decline the organization expected.

Generally, consumer attitudes toward the economy and spending are predictive of actual purchasing but, despite gains, the numbers are historically low. Evidence from monthly financial announcements that major retailers made last week demonstrates that May retail sales generally were weak except at low price retailers, especially dollar stores.

Marshal Cohen, chief industry analyst at NPD, explained the increasing intent to purchase amidst mixed retail sales by resorting to an increasingly common refrain, stabilization. He said:

The continued increase suggests that stabilization is holding. We are seeing consumers move toward replacement and replenishment purchasing and these are the kinds of purchases that would indicate we have taken the first step toward recovery.

But what kind of recovery? On Friday, Wal-Mart CEO Mike Duke, told employees and shareholders at the company’s annual meetings that it would hold on to customers who had begun shopping its stores in the recession. His predecessor Lee Smith last year declared that a new consumer would emerge from the economic downturn, one who valued thrift, who would be determined to get the most from a dollar, who, basically, would shop at Wal-Mart.

The recession as it impacts retail may be bottoming out. The United States Commerce Department’s May retail numbers are due Thursday, and Bloomberg is predicting they will relate a 0.5 percent increase with automobile sales boosting the numbers. Overall, the evidence suggests that consumers intend to purchase but still intend to do so cautiously. The longer that attitude prevails, the longer bargain retailers gain and their more upscale rivals suffer. The suffering may come in the form of lower profits, sales or – for those retailers who have kept other numbers looking good by cutting costs — market share. In the meantime, consumers will become increasingly acclimatized to shopping at bargain retailers they once might have bypassed, which could prove Duke and Scott correct.

Bob Janet, speaker, trainer and author : The 4 Easiest Ways to Make More Money

NOTE: WHILE I AGREE WITH BOB ON THESE SMALL BUSINESS TIPS, I WOULD SAY NUMBER 4 IS A BIT UNREALISTIC. RATHER, I WOULD SUGGEST YOU USE THESE TIPS TO ENHANCE THE CUSTOMER EXPERIENCE FOR CUSTOMERS YOU ALREADY HAVE AND YOU USE ADVERTISING TO BRING IN NEW ONES.=DP

The 4 Easiest Ways to Make More Money

1. Increase your customer base.
The easiest way to gain new customers is to sell to those already in the market, those already buying the products and services you sell. If they are not buying them from you they are buying them from your competition. All you have to do is take customers away from your competition. It’s not always easy to do. You never want to use the cutthroat, lower price tactics. You won’t make the profit you need and desire, and a customer gained through low price will be easily lost when a competitor offers them a lower price. It’s also hard to take a customer away from the competition because of the loyalty people have to their suppliers. The longer the prospective customer has been a customer of the competition, the more loyalty they have to the

2. Increase your selling price. I have never seen a business in any industry, that is providing superior service, that cannot raise their selling price 1%-3%. You do the math for your business. Take last year’s profits and add 1%-3% to them. I am sure you will be presently surprised.

3. Sell more of your products and service to each customer. The easiest extra products and services to sell to your present customers are add-on’s. Products and services than enhance the main product/service. There is a rule, called the 1/3 rule of selling add-on’s — 1/3 of your customers will purchase add-on’s if you merely mention the add-on product during your sales process, 1/3 of your customers will purchase add-on’s if you actively sell them and 1/3 of your customers will not purchase your add-on’s unless you actively hard sell them.

4. Lower your marketing and selling costs.
a. Stop supporting media advertisers.
b. Use word of mouth advertising. You must create your own word of mouth advertising. You already have the tools paid for. You already have the best and most effective means to make word of mouth advertising work. Your sales and sales support staff. Train everyone in your business to use the 3 ft. rule. “Anyone within 3 feet of you knows who you are and how you can solve their problems, needs and wants.”

When you out-market, and out-service your competition you will out-sell them. And you do not have to spend extra and in most cases, as much of your marketing / selling dollars to do so if you sell the benefits the customer will receive when doing business with you. Even if they are the same benefits your competition offers, in most cases your competition is not selling them — or not reminding the customers all they do for them.

Ford Motor Co. is the healthiest of the Detroit’s Big Three auto makers but could face a rough ride

Ford CEO Alan Mulally says his company isn’t at a disadvantage without federal assistance. Above, the executive spoke at a press conference last month announcing plans to convert an SUV factory to a small-car plant.
Meanwhile, Ford, which has lost more than $30 billion since 2006, remains saddled with about $33 billion in debt including its obligations to retirees. Its lending arm isn’t getting government support, and Ford is moving ahead with a bloated dealer base.

“What bankruptcy does for GM and Chrysler is give them some opportunity to change quickly. Ford will have to fight for those same changes,” said Christopher J. Ceraso, an automotive analyst with Credit Suisse.

Ford Chief Executive Alan Mulally said Ford faces no long-term disadvantage because of the bailout of Chrysler and GM and has no plans for government assistance.

“Clearly, we are in a different place because we have taken a lot of that restructuring action,” he said in an interview Thursday. “That’s what some of our competitors are doing now.”

Ford has been restructuring since Mr. Mulally’s arrival almost three years ago, shedding more than 40,000 jobs, closing 17 plants and reducing costs by more than $5 billion. And its global operations are moving forward on the development of new models.

GM and Chrysler’s product-development operations are only now being reshaped.

In the short term, Wall Street analysts and advisers to Ford see challenges for the company.

One of the biggest is in auto loans.

GMAC in January became a bank holding company, making it eligible for bailout funds from the Treasury and low-cost lending programs from the Fed. GMAC has since received $12.5 billion in financial aid from the government.

GMAC on Wednesday began issuing $3.5 billion in three-year debt backed by the federal government. This should cost GMAC about 2.2% a year.

Ford Motor Credit Co., meanwhile, recently priced a five-year bond and is paying 8%.

After getting help from the Treasury, GMAC in the beginning of the year started offering 0% loans on some GM vehicles. Ford Motor Credit finally followed suit last week.

Ford Motor Credit has applied to become an industrial bank, which would help lower borrowing costs as a federally insured lender.

A spokeswoman said it hopes to have to have the classification by year-end.

GM and Chrysler are also expected to emerge from bankruptcy reorganization with considerably less debt than Ford, which would lower their fixed costs.

GM’s debt load is likely to fall postbankruptcy to about $17 billion, plus its obligation for retiree health care, from more than $70 billion.

While Ford has been able to reduce its debt burden with some equity swaps, which analysts expect to continue, the auto maker still is carrying more than $30 billion in long-term debt. Coming payments include $5 billion for Ford Credit due in October and $10 billion due in 2011 on a revolving credit line the auto maker drew from in January.

Another challenge for Ford is its agreement with the United Auto Workers.

The union has reached deals with Ford, GM and Chrysler to cut the amount they have to put into a trust fund to pay for retiree health care.

UAW President Ron Gettelfinger estimated GM is obligated to fund the trust at about 25 cents on the dollar, and Chrysler at 30 cents on the dollar — down from original payments of 60 cents.

It was unclear what Ford is paying but many analysts believe it is higher than GM and Chrysler.

A person familiar with the matter at Ford said the company expects additional concessions from the UAW long before its current contract expires in 2011. Union officials have said they want the auto maker to remain competitive with its domestic rivals.

Lastly, GM and Chrysler are using the bankruptcy process to shed hundreds of small or money-losing dealerships. GM plans to drop 2,600 of its 6,000 dealers and Chrysler 789 of its 3,200.

Ford is unable to match its competitors’ moves because of state laws that favor the dealer franchises.

The auto maker had 3,723 dealers as of March 31 and has been only able to trim the ranks gradually.

Ford executives said the company has cut its number of dealers by 15% since 2005.

Ford says it remains optimistic. The auto maker will increase production of cars and trucks in the third quarter by about 10% from a year earlier and is gearing up a marketing campaign in hopes of grabbing market share from its cross-town rivals.

Goldman Sachs on Friday estimated that Ford would gain about 25% of GM’s market-share losses.

GM, Ford, Chrysler Sales Fell Less Than Estimates

NOTE: RELATIVELY GOOD NEWS FOR DEALERS & BRANDS.=DP

GM, Ford, Chrysler Sales Fell Less Than Estimates

By Mike Ramsey and Alan Ohnsman

June 2 (Bloomberg) — General Motors Corp., Ford Motor Co. and Chrysler LLC posted U.S. May sales that fell less than analysts’ estimates as shoppers returned to showrooms, while Toyota Motor Corp. and Honda Motor Co. did worse than expected.

U.S. industry sales declined 34 percent from a year earlier, for a 9.9 million annual sales rate, according to Autodata Corp., topping the 9.2 million average estimate of 7 analysts surveyed by Bloomberg.

The results covered a month in which Chrysler operated in court protection after its April 30 bankruptcy, GM counted down to yesterday’s Chapter 11 filing and the Conference Board’s consumer sentiment index jumped by the most in six years, buoying demand.

“There’s no doubt; it’s progress,” said Gary Dilts, senior vice president of research firm J.D. Power & Associates in Troy, Michigan. “If you are going to see some uptick, you want to see it in May, June, July” when sales usually peak.

GM said U.S. deliveries tumbled 30 percent from a year earlier, and Chrysler dropped 47 percent. Ford, the only major U.S. automaker not in bankruptcy, had a 24 percent decline. Toyota City, Japan-based Toyota’s sales plunged 41 percent, and Honda plummeted 42 percent. Nissan Motor Co. fared better than estimates, falling 33 percent.

Analysts expected Detroit-based GM to decline 37 percent, while Ford was projected to be off 29 percent and Chrysler down by 51 percent. Toyota’s drop was estimated to be 40 percent, and Tokyo-based Nissan and Honda were projected to decline 37 percent and 38 percent.

Chrysler Purchases

Chrysler’s sales were better than they might appear, because the Auburn Hills, Michigan-based automaker had virtually no low-margin sales to rental car fleets and improved its market share to customers buying at car dealerships, Dilts said.

The Asian automakers’ declines partially reflect the strong sales from the year-earlier period, when results at Toyota and Honda were buoyed by $4 a gallon gasoline prices, said Jim Hall, an analyst with 2953 Analytics.

“GM, Ford and Chrysler were so depressed last year because of fuel prices, and the Asian makes hadn’t dropped off as much at this point in the year,” said Hall, who is based in Birmingham, Michigan. Honda’s May 2008 U.S. sales represented the company’s highest ever monthly sales.

Asia-based automakers as a group lost U.S. market share for the first time this year as declines for Toyota and Honda surpassed those for GM and Ford. U.S.-based automakers increased their share to 45.9 percent, up 1.4 percentage points, while Asians’ share fell 2.5 points to 45.6 percent, according to Autodata Corp. in Woodcliff Lake, New Jersey.

Improved Traffic

Almost every automaker reported improved traffic and sales compared with April, reflecting a change in direction for the market.

Meanwhile, the sales rate failed to cross 10 million for the fifth-straight month. The rate was 14.2 million in May 2008.

Ford executives cautioned against reading too much into their better-than-expected results.

“It’s like less awful,” Ken Czubay, Ford vice president of sales and marketing, said in a conference call today. “This is still a very fragile industry. This isn’t any time to rejoice. It’s just a slight uptick.”

Sales at Seoul-based Hyundai Motor Co., South Korea’s largest automaker, fell 20 percent to 36,937 vehicles in May, the company said in a statement. Auto-research firm Edmunds.com had predicted a 15 percent decline.

GM sold 191,875 vehicles, down from 272,363 a year earlier. Ford delivered 161,531, down from 213,238; Chrysler sold 79,010, down from 148,747; Toyota sold 152,583 units, compared with 257,406; Honda sold 98,344 compared with 167,997 a year earlier and Nissan sold 67,489 vehicles, down from 100,874.

Ford’s Inventory

Ford, based in Dearborn, Michigan, said its inventory of unsold cars fell to 350,000, which represents a 56-day supply, less than the industry standard of 60 days. Deliveries of gasoline-electric hybrid vehicles totaled 3,906, which Ford said was the company’s best month ever.

While Nissan sales remained down, dealerships handled more customers than a month earlier, said Al Castignetti, U.S. vice president for the automaker.

“It was the best retail sales month for us since August 2008 on a volume basis,” he said.

GM and Chrysler both may have attracted shoppers looking for bargains, dispelling “the notion that consumers will refuse to buy cars from a bankrupt automaker,” Edmunds.com said yesterday in a report.

‘Purchase Intent’

Consumers’ “purchase intent” for Chrysler vehicles rose 72 percent in May compared with April, Edmunds.com said, citing an analysis of traffic on its Web site. For the week ended May 31, a day before GM’s bankruptcy filing, purchase intent for that automaker’s models increased 4 percent, Edmunds.com said.

GM and Chrysler had resisted bankruptcy for months while operating on U.S. aid, saying consumers would shun a company in court protection.

Automakers got a tailwind last month with the increase in consumer confidence as measured by the sentiment index of the New York-based Conference Board. Fewer Americans filed claims for unemployment benefits in the week ended May 23, according to Labor Department figures released May 28.

Still, the recession kept eroding U.S. payrolls, probably sending unemployment past 9 percent for the first time since 1983, according to a Bloomberg survey of 59 economists. The Labor Department reports the May jobless rate on June 5.

Stuttgart, Germany-based Daimler AG’s U.S. sales, including Mercedes-Benz and Smart cars fell 33 percent in May to 16,303. Bayerische Motoren Werke AG, based in Munich, said sales of BMW and Mini vehicles declined 28 percent to 22,993.

Mumbai-based Tata Motors Co.’s Jaguar and Land Rover division fell 29 percent to 3,391. Wolfsburg, Germany-based Volkswagen AG’s sales of its namesake brand declined 12 percent to 19,568.

May had 26 selling days, 1 fewer than last year.

To contact the reporters on this story: Mike Ramsey in Southfield, Michigan, at mramsey6@bloomberg.net; Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

THE IMPORTANCE OF PROOFREADING!

When A Forfeit Is The Only Answer

April 20th, 2009

The hapless Washington Nationals took the field the other night wearing the branded uniforms pictured below:

PROBLEMS MAY LINGER AT OLD CHRYSLER

NOTE: FORD SPENT FIVE YEARS FIXING QUALITY PROBLEMS THEN, MADE MARKETING SHIFTS TO TELL THE STORY. CHRYSLER IS IN FOR A LONG HAUL BUT, FORD HAS PROVEN IT CAN BE DONE.=DP

DETROIT – Chrysler may have been granted a fresh start, but it still faces old problems: how to sell enough cars and realign its fleet away from the trucks and SUVs consumers seem to no longer want or be able to afford.
A 42-day stay in bankruptcy court cleansed the company of much of its debt and labor costs, but many analysts say Chrysler’s immediate future is bleak. It lost $8 billion in 2008, and sales are down by almost half for the first five months of this year.
Chrysler has few new vehicles headed to its drastically reduced network of dealers. Its aging model lineup is still heavy with bigger vehicles, and its offerings in the growing small and midsize markets haven’t caught on.
Meanwhile, small cars designed by new Italian parent Fiat Group SpA won’t make it to U.S. shores until late next year and there are no guarantees they will entice great numbers of American drivers.
“The showroom is not going to look terribly different over the next 18 months,” said Aaron Bragman, an analyst for the consulting firm IHS Global Insight. “They’re going to try and maintain market share in a down market with products, many of which haven’t been redesigned in several years.”
Bragman said Chrysler faces tremendous competition, especially from new cars in the works at General Motors Corp. and Ford Motor Co.
Even if the new Chrysler Group LLC can survive, the super-small Fiat cars that were popular in Europe, like the 500 and Grand Punto, could be out of step with Americans who like bigger cars and are used to lower gas prices.
During Fiat’s last run at the U.S. market, in the 1970s and ’80s, reliability problems led people to suggest the name stood for “fix it again, Tony.”
“Fiat is really not a known commodity in the U.S. market,” said David Koehler, a clinical marketing professor at the University of Illinois at Chicago. “It doesn’t resonate with the target market.”
The new Chrysler began operations Wednesday morning after the U.S. Supreme Court refused to hear an appeal of lower court decisions that allowed the transfer of most of the old Chrysler’s assets to Fiat.
Fiat CEO Sergio Marchionne was named chief executive of the new company, and Chrysler CEO Bob Nardelli said farewell to employees and ended his tumultuous 20-month reign.
Marchionne quickly shook up the management, replacing Chrysler’s chiefs of marketing, finance and product development and cutting layers to make the company more focused on individual brands, such as Jeep, Chrysler and Dodge.
Jim Press, who was Toyota Motor Corp.’s top U.S. executive until he joined Chrysler in 2007, was named deputy CEO and will probably run the company when Marchionne is in Italy.
In an e-mail to Chrysler’s 54,000 workers, Marchionne acknowledged the company’s problems and said he was determined to repair them. Five years ago, he wrote, he stepped into a similar situation at Fiat, perceived at the time as a failing bureaucracy that made poor cars.
“Through hard work and tough choices, we have remade Fiat into a profitable company that produces some of the most popular, reliable and environmentally friendly cars in the world,” he wrote. “We can and will accomplish the same results here.”
Marchionne’s more immediate problem is weak offerings in the market for small and midsize cars. Its smallest vehicles, the Dodge Caliber and Jeep Compass and Patriot, sell far less than the Toyota Corolla, the nation’s top-selling small car.
Work is already under way to convert Chrysler factories to produce small Italian-designed cars. Neither Chrysler nor Fiat would say which models would come first or how many would be imported to the U.S.
“The need is now, but unfortunately, it’ll be at least a two- to three-year process,” said Michael Robinet, vice president of CSM Worldwide, a Detroit-area auto industry consulting firm.
Chrysler plans to roll out new versions of its popular Jeep Grand Cherokee SUV and Chrysler 300 large sedan by the end of next year, along with a rechargeable electric vehicle. But Bragman said those were probably delayed in the bankruptcy process, making the next 18 months look iffy.
The good news for Chrysler is that it has cut its expenses enough that it can break even with lower sales, said Gary Dilts, senior vice president of global automotive operations for J.D. Power and Associates.
He said much of the drop in sales this year for Chrysler came from cuts in its sales to rental car companies. Chrysler actually made small gains in market share in sales to individuals in the first five months of 2009.
The struggling company has offered the heftiest rebates and other incentives to buyers recently. But it remains to be seen whether Chrysler can produce amazing cars, not just amazing deals.
The U.S. government has committed roughly $8 billion more to help Chrysler as it leaves Chapter 11 bankruptcy protection, and the Obama administration acknowledges Chrysler will probably lose money until Fiat rides to the rescue. But the government believes the company will be viable in the long term because of Fiat’s management expertise.
Aside from the electric vehicle, Chrysler’s upcoming new models are not particularly fuel-efficient, and they could suffer if gas prices keep climbing. Those same gas prices could help Chrysler benefit from Fiat’s small-car technology.
Marchionne has said Fiat could start selling a successful, North America-made remake of the 500 minicar as soon as next year. Fiat also plans to relaunch the sporty Alfa Romeo brand in North America.
The new Alfa 149 midsize five-door hatchback, to be unveiled next year, would be built in North America as a successor to the larger Alfa 159, Marchionne has said.
But Toyota and Honda remain the champs of midsize cars, and Fiat still has to prove itself to American drivers.
“A lot of us have residual memories of Fiat that are less than stellar,” Dilts said. “But I think the product looks good. They’ve got some great small engine capabilities. With a little bit of pressure on gasoline, I think they’re going to give Fiat a look.”
___
AP Business Writer

Local Advertising Slumping – but Will Soar on Handhelds

NOTE: NOW’S THE TIME FOR BUSINESSES TO START WORKING WITH LOCAL SEARCH AND EXPERIMENTING WITH MOBILE.=DP
Local Advertising Slumping – but Will Soar on Handhelds

Local advertising across newspapers, direct mail, TV, radio, yellow pages, outdoor, magazines and online is expected to slip to $144.4 billion by 2013, down from $155 billion last year, says BIA.

Local ad revenue may hit a low of $135.8 billion in 2010, before climbing a bit in 2011, according to BIA (via Adweek).

Some media, including newspapers, local TV, radio, print yellow pages, and local regional magazines, will need to rethink their traditional business models and look to the internet to find new revenue streams in order to survive. Radio and TV internet revenue will climb to $1.9 billion in 2013, from $805 million last year, according to some estimates.

But other media, including outdoor and direct mail, may be in for a tougher challenge.

Local mobile advertising will be the next hot trend, particularly in terms of local mobile search, BIA’s The Kelsey Group predicts. Local mobile ad revenue will hit more than $3.1 billion in 2013, up from $160 million last year. Mobile search will reach $2.3 billion. Local searches made up 27.8% of all searches in 2008, but are expected to hit 35.1% in 2013.

The mobile market might have boomed sooner, were it not for the economy. Currently, 54 million people use the mobile web; that number should reach 95 million by 2013. Local search will make up more than half of mobile advertising (56%) though local search will only make up just over 35% of all searches.

“Mobile gets you closer to the point of purchase because it goes with you to the store,” says Michael Boland, a senior analyst at The Kelsey Group. “When we come out of this, we’ll see a sudden interest and demand in mobile marketing.”

Boland points out that advertisers will still need a “point of entry,” like an advertising network. No company has truly packaged local mobile search for advertisers yet, he says.

Using Social Media, Iranians Outwit Regime

NOTE: THIS PIECE CLEARY INDICATES THE POWER OF SOCIAL MEDIA. AS MARKETERS, BE AWARE THAT CUSTOMERS HAVE AWESOME COMMUNICATIVE POWERS RIGHT NOW VIA THESE NETWORKS AND REMEMBER THE SAME OLD RULE APPLIES: MAKE SOMEONE HAPPY THEY’LL TELL ONE PERSON, MAKE SOMEONE MAD AND THEY’LL TELL PEOPLE.=DP

Using Social Media, Iranians Outwit Regime
By David Weir | June 15th, 2009 @ 7:36 pm
Apparently, there’s not going to be any actual regime change anytime soon inside Iran, but that country is undergoing a fundamental revolution nonetheless. Thanks to social media — YouTube, Facebook, Flickr, Twitter, and a growing list of others — the ability of any government, let alone Iran’s, to control information has been permanently compromised.

As of this hour, there are almost 12,000 videos available on YouTube under the search term, “Iranian election.” While not all of these are of the demonstrations that have erupted since the government announced that the incumbent Mahmoud Ahmadinejad had supposedly prevailed against reformist candidate Mir Hossein Mousavi, when you tweak the search terms a little, somewhere around a third of them appear to be.

Many times as many photos are available, of course, and the hyper-texting via Twitter continues unabated. The religious clerics who control the country now appear to have started to give up trying to assert control over this communications war. State-run TV is now covering some of the demonstrations, and the regime simply is not geeky enough to keep up with the young, tech-savvy crowd that is using every tool available to organize continuing demonstrations in the streets.

This is really a blunt reminder that of the power of networked geeks far outweighs the would-be censors inside that oh-so 20th Century notion of a “government.” It’s hardly the first time. Remember SARS? One of my graduate students at Stanford back when that disease was ravishing the world’s largest country (and 36 others) documented how China’s population got around that government’s attempts to suppress all news internally about the outbreak by text-messaging each other foreign news reports via cellphones.

(Ironically, she could not publish her graduate thesis because she was returning to Beijing to pursue a career in journalism, and feared she would have been arrested if she did so.)

The Iranian drama illustrates how the powerful democratization of information-control via new technologies is now taking no prisoners. The dwindling number of oppressive regimes even willing to try to censor their citizens (Hello, North Korea!) indicate that only fools would make an attempt any longer.

There still may be an awful, violent suppression of the fledgling democracy movement in Tehran over the coming days, but somehow I doubt it. The power of the few to control the many reached its peak in 1940s Germany. What’s happening in Iran tonight feels much more like when the Berlin Wall started to crumble…

“Cash for Clunkers”…THE COMPLETE CLUNKER LIST & DETAILS

NOTE= HERE’S THE DETAILS=DP
“Cash for Clunkers” has been approved by US House of Representatives
Likely to be made into law by end of summer
Offers no more than $4,500 to new car buyers; requires trade-in vehicle to be crushed
Scrapped cars must have EPA combined fuel economy ratings of 18 mpg or less
New vehicle purchased must earn better mileage
Participant must have owned “clunker” for 1 year
SEE THE CLUNKER LIST COMPILED BY EDMUNDS HERE:

Event Marketing Makes Gains

Event Marketing Makes Gains
Feb 11, 2009
-By Kenneth Hein, Brandweek

NEW YORK Although marketers are getting more tech savvy, it seems they still have a soft spot for good old-fashioned event marketing.

More than half (53 percent) of the 300 senior marketing executives who participated in a recent study said event marketing is the discipline that best accelerates and deepens relationships with target audiences.

The EventView 2009 survey, which was completed earlier this month by George P. Johnson, The MPI Foundation and the Event Marketing Institute, includes a healthy swath (41 percent) of marketers whose companies pull in revenue in excess of $1 billion.

More than a quarter (26 percent) of those surveyed said event marketing is the discipline that drives the greatest return on investment. “The economy is forcing marketers to elevate their game to survive, specifically in regard to deploying direct response marketing such as events to drive top-line performance,” said Bruce MacMillan, president and CEO of MPI.

Twenty-nine percent of marketers will transition their strategy from event marketing to experience marketing in the next 12 months. The difference being that experience marketing “involves integrated live and online experiences that drive deep brand interaction through highly relevant storytelling and brand immersion,” per the study. A third of those polled said they already made the switch.

The findings underline two converging trends, said David Rich, svp of strategic marketing, worldwide, for experience marketing agency George P. Johnson. “First, a downward economic spiral that is forcing brands to invest in channels like events that demonstrate measurable ROI; and secondly, the maturation of strategic event and experience marketing, which takes the strategic, creative, media and digital capabilities of above-the-line marketing and activates them through the on-the-ground execution of an event portfolio made up of different types of internal and external events,” he said.

Despite the need to watch spending, marketers are increasingly ponying up to green their events. Sixty-six percent of those polled said they plan on implementing or have already added green initiatives — up from 32 percent in 2007.

Of that group, 44 percent are doing so because of a corporate mandate. Green spending makes up 13 percent of their events budget.

Overall, “the real challenge for brands in 2009 will be how to best balance their traditional budget allocations against these trends to drive measurable results,” said Rich.

THE ROAD AHEAD FOR FORD

NEW YORK (CNNMoney.com) — For much of the last year, Ford Motor has been the strongest U.S.-based automaker.

But with Chrysler already out of bankruptcy and General Motors possibly six weeks away from its own exit from bankruptcy, Ford could soon find itself in the weakest position of the traditional Big Three.

The problem for Ford is that its strength was only relative to the greater problems at GM and Chrysler. Ford built its cash reserves not through profits, but by mortgaging most of the company’s assets before the credit crisis of 2008 cut off funding for the other automakers.

That pile of cash gave Ford (F, Fortune 500) the ability to ride out the sharp plunge in auto sales without turning to the government for help — at least so far. But it also left Ford with about $32 billion in debt on its books at the end of the first quarter.

With GM (GMGMQ) and Chrysler using the bankruptcy process to shed much of their own debt cheaply and quickly, Ford has gone from the automaker with the most cash on hand to the one with the most debt on its books. GM will have only about $17 billion in debt if it can follow its planned emergence from bankruptcy. Chrysler left bankruptcy with about $11 billion in debt, and a new partner, Italian automaker Fiat, it did not have previously have.

Ford also hasn’t been able to cut its manufacturing capacity or its bloated dealership network as Chrysler and GM through bankruptcy reorganization.

Ford officials insist the company remains in a strong competitive position against its Big Three rivals — despite all the help they got from the government and the bankruptcy courts.

“We don’t know what the implications are going to be, but one thing’s for sure: I like our position,” said Ford Chairman Bill Ford at a conference in Detroit Monday.

But others worry that Ford’s debt level could soon become the same kind of burden that plagued GM and Chrysler before their bankruptcy filings.

“It’s a huge issue,” said David Cole, chairman of the Center for Automotive Research, a Michigan think tank. “GM and Chrysler are showing how you can do things in bankruptcy you can’t get close to outside of bankruptcy.”

Other auto industry experts say that even if Ford can manage its debt level, it will soon find itself in need of a bailout or possibly bankruptcy if auto sales don’t start to rebound in the next year.

“Leverage is a concern, but it’s not the primary concern. The greater concerns are low sales and underused capacity,” said Gregg Lemos-Stein, credit analyst with ratings agency Standard & Poor’s, which rates Ford’s corporate credit as CCC+, deep into so-called “junk bond” status.

Lemos-Stein said while the company still has a better cash position than its rivals, “they don’t have an indefinite supply of cash, especially since we expect the outflows of cash to continue.”

Still, some experts believe Ford’s future looks brighter than its rivals because it has a better lineup of vehicles in the showroom and its pipeline. While GM is busy shedding weaker brands and Chrysler is shifting away from trucks towards smaller cars, Ford has already adapted to changing demands from customers.

“They’ve managed their product portfolio pretty well. That’s very important,” said Tom Libby, president of the Society of Automotive Analysts.

Libby said that product development at GM and Chrysler took a hit as the companies rushed to slash costs in recent months. That could leave Ford with newer, more attractive products for at least a few years.

“They are not being forced to make changes at gunpoint,” added Subroto Banerjee, a partner at business research firm Frost & Sullivan. “They’ve done it very smartly, without all the problems and distractions of the process at GM and Chrysler.”

Libby conceded that some of the market share gains Ford has achieved in recent months came because buyers were worried about the future prospects at GM and Chrysler.

If those concerns are now put to bed by those companies’ quick trips through bankruptcy, Ford will lose a marketing advantage it once had.

And all three Detroit rivals face the problems that brought the U.S. industry to its current crisis — a weak economy, an historic plunge in auto sales and a decades-long trend of losing market share to importers like Toyota Motor (TM) and Honda (HMC).

So even if Ford is still stronger than GM or Chrysler, it may not be strong enough to buck those three powerful headwinds.

First Published: June 17, 2009: 2:19 PM ET

PERSONAL BRANDING

Marva Goldsmith, a personal branding expert based in College Park, Md., is among the dozens of great presenters at the Society for Human Resource Management’s annual conference.  SmartBrief on Workforce Senior Editor Mary Ellen Slayter recently spoke with Marva about what personal branding means.

MARY ELLEN: Why should your typical HR person care about personal branding? What does that phrase mean exactly?

MARVA: The term “personal brand” is believed to have first appeared in the August 1997 issue of Fast Company magazine, in an article written by Tom Peters. He wrote, “We are CEOs of our own companies: Me Inc. To be in business today, our most important job is to be head marketer for the brand called You.”

Personal branding is a way to clarify and communicate what differentiates you from others in your field in order to leverage those differences to achieve a specific goal. Personal branding is used by anyone, including HR professionals, who want to establish their reputation and credibility by consistently delivering on a brand promise. Personal branding answers the questions: What value do you provide? What can you always be counted on to deliver (brand promise)? How do I strategically market myself as a valuable product in the career or business marketplace?

We often hear the term “personal branding” in relation to social media. To do this, do I have to have a Web site or set up a Facebook account?

Like it or not social marketing is a part of the DNA of the next generation of workers. More and more people of all ages are creating wide networks through blogs, Facebook, LinkedIn and other such media. Social marketing in the context of personal branding is a tactic. Similar to marketing a product, different tactics are used to position your personal brand in the career or business marketplace. Social marketing is a way to develop an overnight following and the perception of being an expert (as long as the content is good), more quickly and easily than traditional approaches.

There are 850 groups in LinkedIn with the words “human resources” associated with it. The largest group, HR: Linked contains more than 137,000 members. Increasingly, people are using social media for job search and recruiting tools.

Social media is also being used as a tool to strengthen the company brand and produce revenue. A recent article about Dell stated that using Twitter has produced $1 million in revenue over the past year and a half through sale alerts. Interested people who follow Dell on Twitter can click over to purchase the product or forward the information to others.* Companies can either follow the leader into the foray of social marketing tools or lead the fray.

How do I convince senior management that this is a good use of my time? Of our workers’ time?

When I conduct a personal branding workshop, the biggest revelation for participants is that they are not employees. In the career marketplace, they are products. Their next promotion (or sale) is dependent on the value added by the product and how well the product is marketed. Their best marketing tactic is publicity, not advertising. Publicity is earned when other people in the organization experience the value proposition and begin to tell others about the outstanding job that you do, or the great article that you wrote, the value that you add, etc.

The transformation that personal branding brings in the workplace is that people begin to strategize — not for the promotion (that is the result), but to identify “value-added” ways to distinguish themselves from all of the other ketchup bottles on the shelf.

MICROSOFT Not-So-Idle Threat to Yahoo: Do You Feel Lucky?

Ballmer’s Not-So-Idle Threat to Yahoo: Do You Feel Lucky?

Kara Swisher
Several years ago, when I once asked Microsoft (MSFT) CEO Steve Ballmer about if the software giant was ever going to be able to catch No. 1 Google (GOOG) in market share in the increasingly lucrative search arena – despite years of trying and billions in investment in its Web businesses overall – he said something I shall never forget.

“We don’t actually have to catch the leader,” said the pugnacious tech leader. “We just have to surpass the No. 2 to have a great business.”

At the time, Ballmer meant Yahoo (YHOO), of course, and his intention was clear to me. While it was probably well-nigh impossible to get into the pole position Google (GOOG) is in, Microsoft could begin an attack if they could crush Yahoo first.

Easier said than done, of course, with little movement in share so far–even after early labored and expensive organic efforts, a failed takeover attempt to buy Yahoo and endless but still fruitless talks about a partnership with the Internet giant.

But now with a very credible and consumer-friendly revamped service called Bing, which is getting a big slug of marketing money, Microsoft might actually have a product that at least has a better chance to gain market share.

While by no means certain or lasting, early results from surveys are promising and–combined with distribution deals the software giant recently signed too–could give Microsoft the kind of momentum is has long needed.

This is obviously not good news for Yahoo, which will doubtlessly be the one losing market share if it is to be lost, a situation that its CEO Carol Bartz has said it could not do.

In a recent onstage interview with me at the seventh D: All Things Digital conference, in fact, she said Yahoo definitely needed to maintain its 20 percent share.

Bad news for her then, when yesterday Ballmer shot another one across the Yahoo bow, by telling a group of business execs at a luncheon:

“Our shareholders, I told them we were willing to spend 5 to 10 percent of operating income for up to five years in this business, and we feel like we can get an economic return.”

Since it is cash-spewing Microsoft – more than $20 billion in operating income last year – that’s a lot of money.

And, even if history has not been kind of Microsoft’s like-a-drunken-sailor spending before in the Internet space, there is no question the company has an obsessive commitment to eventually gain ground, grinding down companies like Yahoo if need be.

And within the larger context of Ballmer and Bartz in hot-and-cold discussions about a search and advertising partnership deal, his statement is clearly a signal to Yahoo to get on the Microsoft train or run the risk of getting run over.

Thus Bartz has got to ask herself one question as she ponders what to do: Do I feel lucky?

Study Says the Unclicked-Upon Ad Has Value

OPA-comScore Study Says the Unclicked-Upon Ad Has Value

By Catharine P. Taylor | June 18th, 2009 @ 12:36 pm

 Online Publishers Association and Internet measurement firm comScore yesterday released the results of a comprehensive study which they say demonstrates that just the mere act of seeing an ad is valuable, in the hopes that it will make advertisers think twice before just counting clicks. Here are some of the things they discovered after observing 80 brands, across 200 sites, over a month’s time:
  • One in five people did a search on a brand advertised on one of these sites.
  • Those who saw the ads spent 50 percent more on the brands of sites they saw than those who had not.
  • That people who saw these ads spend 10 percent more online than others and spend even more on brands in the categories of ads that they saw.

It makes a kind of gut sense that exposure to an ad, even if the person who saw it doesn’t immediately act upon it, has more of an impact than never seeing the ad at all. One possible anecdotal example of this is Microsoft’s early success with Bing, for which the company launched one of the most ambitious online ad campaigns ever, in part using the OPA’s new super-sized ad units. Early data shows that Bing is claiming some search share — it doesn’t take a rocket science to note that people have to know about something in order to use or buy it.

But none of this means that the OPA and comScore have, with this study, forever solved the problem of how advertisers measure their online ad buys. Far from it. Even if branding ads are the prevalent form on TV, and usually don’t even have a direct response mechamism, in online, expectations are different — it will take a lot of studies for that perception to change.

For one recent story I did on the search for metrics beyond the click-through, I was told that some advertisers insist on buying on a cost-per-click basis, knowing full well that, because click-through rates are so bad, they’ll get the media cheap while still benefiting from impressions of those who did not click. It’s going to be a long road.

Internet is most popular source of news for majority of adults in U.S.

US: Internet is most popular source of news for majority of adults

Adding credence to the notion that more than ever people are relying on the Internet as their primary source of news, the latest poll by Zogby International shows a majority of Americans view the web as the best source of information. When presented with a scenario in which they had to choose only one source of news, 56% of adults picked the Internet.

Where Americans are getting their news on the web is striking. Nearly half said the web sites of national newspapers are important and 43% said the same for national TV sites. Internet-only operations fared much worse. Less than 30% stated that blogs that shared their political views were important, and just 14% said the same for blogs with the opposite political view. And social networking sites? Forget it. Ten percent of adults named Facebook as an important source of news, and a mere 4% said the same of Twitter. The percentages of adult Americans who would prefer to use TV, newspapers or the radio as their sole source of news information were significantly lower than that of those who would pick the Internet – 21% would go for TV, 10% newspapers, and 10% radio. (Respondents could also pick “Other/not sure.”)

When asked which was the most reliable source of information, the Internet was again far and away the leader. Forty percent of those surveyed chose the web, whereas 17% opted for TV and 16% for newspapers.

Nevertheless, the importance Americans place on the websites of newspapers and TV networks indicates that overall the mainstream media is still the most significant source of news – just in a different form. The websites of local newspapers and TV stations fared almost as well as their national counterparts in terms of importance to Americans. Even if they haven’t yet figured out how to best capitalize on online content, newspapers and other traditional media have clearly succeeded in drawing readers to their sites.

The significance of the web as a news source in the US is likely linked to the prevalence of the Internet in Americans’ lives, in a country where 84% of adults have Internet access. Worldwide, a similar survey would probably produce very different results. As Gavin O’Reilly, president of the World Association of Newspapers, pointed out at the WAN Power of Print Conference in May, newspapers reach 41% more adults than the Internet.

One remarkable piece of data from the US poll that Zogby chose to highlight: print media are far more popular for those on the left of the political spectrum. Whereas 17% of Democrats would choose newspapers as their only source of news, a paltry 5% of Republicans said the same. The percentages of those who would prefer the Internet were almost the same for Democrats and Republicans, meaning that those on the right must be relying on TV and radio.

It would be useful to know the demographic breakdown of each response, especially in regards to age. The term “adult” covers a broad spectrum of people. How do the answers of those under 30 compare to the baby boomer set? After all, the younger generation will ultimately define the shape of the news industry in the years to come.

Which news source Americans see as being the most dominant in five years time is telling – 84% think it will be the Internet, 13% said TV, and a measly 0.5% picked newspapers. That would appear to be a clear indication that traditional print media will have to change the way they operate if they want to remain significant in the eyes of American readers in the next five years.

Web Analytics for Your Business Site

Do you have Web analytics installed on your small business Web site? If not, you should. How will you know how your Web site is performing if you aren’t measuring the plethora of data available?
Cost is no longer an excuse for not having Web site analytics. The free options are quite robust; Google Analytics, for one, is quite comprehensive. In addition, Yahoo last year acquired IndexTools, and has made a version of that available for free to its advertisers.
Obviously, there’s a learning curve involved in analyzing your data. But it’s worth it because the analytics information will help you increase your conversion rate, maximize your ROI, and make more money in less time.
Once you know what you should be looking at, your online business will thrive with just a little effort. You’ll be less “in the dark” about what is and isn’t working for you.
Let’s outline four of the more important metrics you should be looking at. Keep in mind — depending on what you’re selling and what action you consider a “conversion,” these may vary a bit, but they’re a good place to start.
Conversions
Conversions are the be-all and end-all for me. Are you making money, signing people up, sending people out (if you’re an affiliate and you make money on advertising clicks)? Your traffic can be the best in your industry — but it won’t matter, if you’re making zero dollars from that traffic?
By measuring your conversion rate, analyzing sticking points, and clearing the paths to and through your sales pages, you’re making sure your conversions are on their way to being the best in the industry.
Referring Sites & Keywords
When fine-tuning your conversion paths, start at the beginning. Where is your traffic coming from and how are they getting to your site? Referring keyword data tells you what keywords are searched and clicked upon to send a visitor to your site. Use this data to analyze which keywords have the best conversion rates.
Analyzing referring keywords and conversion rates is especially important when running search ad campaigns. Why pay for clicks that consistently don’t convert? It’s insane, but we see it happening again and again. There’s a place for branding in that equation — but gambling $4 a click on terms that may never convert is a huge waste of money.
Brand your site on the long tail terms that are much less expensive, but much more relevant.
Knowing which sites are sending you traffic is a great tool to have when deciding where to cultivate future ad relationships and marketing dollar spends. If a site sends you 50 unique visitors a day — and 25 percent of those convert — it’s worth renewing or buying a better ad placement to increase exposure, CTRs, and conversions. If a site is sending you 100 unique visitors a month with zero conversions, it may be the wrong opportunity for you — or you might consider a different placement within that ad buy.
Bounce Rate & Time on Site
Not all visitors will like what they find at your site, or stay on your Web site for long. It’s a given that you’re just not going to be relevant to every user that visits your landing pages. That being said, bounce rate is a great measure of how well a page is delivering the message. Bounce rate is defined as the percentage of entries on each page that resulted in an exit from your site — without clicking any deeper into the site.
If you’re selling dog treats, and 70 percent of the visitors that come from search terms that focus on “dog treats” leave your site as soon as they hit a landing page — it’s time to analyze what’s wrong with that page and fix it.
Bounce rates aren’t standardized. You can’t really say 20 percent is good, or 80 percent is bad. My gut feeling is that a 30 percent bounce rate is pretty good, but even then there’s room for improvement after the click.
Visitors who don’t bounce may still not be booking. Take your research a step further and look at the average time on site. Visitors may not be bouncing as soon as they hit a page, but are they staying long enough to read, absorb, and move on in the process? Time on site is a great indicator of how well you are engaging your visitors.
Unique Visitors
I was talking to some people who were astonished by the 442,000 page-views they had in the first quarter. It’s a large number — but they were concerned that conversions seemed to work out to be .03 percent of their total page-views.
I showed them how to dig into their analytics to find the number of unique visitors they received. When we looked at the unique visitors for that period of time, it worked out to be a conversion rate of around 1 percent. For a relatively high-ticket item (over $2,000 an action) that’s not a bad conversion rate, but there’s room for improvement.
Measuring the number of unique visitors gives you a better idea of the “people visits” to your Web site versus the number of pages they viewed on the site. Think of it this way:
1 people visit = 100 page views = 1 conversion
Pushing past the initial confusion and finding the hidden gems in your site analytics is going to make the time you take well worth it.
Most analytics programs offer one or two things to help you learn how to use their service better — live training to help you navigate the system or a robust help section can do wonders for educating you on better ways to use and improve upon your analytics. It’s a learning curve, but definitely worth it — so don’t be afraid of analytics, embrace them!

More Recent Graduates Plan to Buy Used Rather Than New Cars

More Recent Graduates Plan to Buy Used Rather Than New Cars

Subprimenews.com – June 18, 2009 Situation 82% of recent graduates were aware that credit rating impacted car loan interest rates .

72% planning to finance 1st car have never checked their credit report CapitalOne survey shows.

 44% of recent graduates plan to buy 1st car w/ cash Only 29% planned to pay cash last year.

  Today’s 1st-time buyers and baby boomer parents named price as most important factor in car-buying decisions.

 67% of recent graduates plan to purchase used vehicles rather than new .

52% had not discussed buying process or operating budgets w/ parents .

 ”Despite numerous financing options available to today’s young adults, fewer plan to take advantage of the benefits of bank financing (24 percent) than just a year ago (41 percent).” — Capital One Auto Finance

Local TV Stations Say Auto Dealer Advertising Less Dismal than Expected

 Local TV Stations Say Auto Dealer Advertising Less Dismal than Expected
Published on June 22, 2009 | 

The closing of auto dealers following the bankruptcy filing of General Motors and Chrysler may not be affecting local television advertising as much as some had expected.

That’s because the dealers that advertised the most were the strongest dealers, and those were the ones that managed to hang onto their businesses, writes The New York Times.

The general manager of four Oklahoma and Texas TV stations said that auto ad sales were the worst at the end of 2008, and that ad revenue has improved since then. It was down only about 12% through May from the same period last year, and was down just 5% in June from the same month in 2008.

Dealer closures are expected to total 17% of the national dealer footprint, but as it is the smaller, underperforming dealers – those that advertise the least – that are closing, the situation is not as dire as it could be for local TV stations, which lost 33% of their auto ads in 2008.

Despite the silver lining, auto ads from local dealers fell nearly 40% in Q1 09, according to TNS Media Intelligence.

Local TV stations pulled 23% of their total advertising from auto ads in 2008; newspapers took 17% of total advertising from auto, while radio took 14%.

Sanford C. Bernstein analyst Michael Nathanson says demand for new automobiles will strengthen in 2010, which in turn will strengthen local ad markets and local TV stations in particular.

Auto ads slipped 17% in 2008, and fell an alarming 29% in the first quarter of 2009 – and Nathanson doesn’t expect the rest of 2009 to be much better. However, 2010 is likely to not be as bad, he says, foreseeing that the worst case scenario for auto advertising would be a decline of 9%.

General Motors says it will spend $50 million per month on advertising during the next few months, in an attempt to inform the public that the company continues to exist despite being in bankruptcy protection.

GM cut its spending by 15% last year, from $2.49 billion in 2007 to $2.11 billion, and going from the second biggest advertiser in the country (behind Procter & Gamble) to the third biggest (just after Verizon).

Ford Gets a Leg Up for Not Resorting to Bailout

Ford Gets a Leg Up for Not Resorting to Bailout

By Jim Henry | June 22nd, 2009 @ 9:14 am

Ford could be gaining ground with consumers who appreciate the fact that Ford has not resorted to a federal bailout to keep itself in business.

That’s good news for Ford, although I keep saying Ford is wise not to crow too soon or too loud. Ford could some day find itself in the same boat as Chrysler and GM, unless sales improve.

In May, not a single brand in the U.S. market posted higher sales than the year-ago month, according to AutoData sales figures. That’s the first time in recent memory I can remember that happening. In recent months, somebody somewhere has always managed an increase, even if it was a tiny brand with an increase of less than 1 percent.

CNW Marketing Research reported today the results of surveys starting in December 2008. The results showed an increase in the percentage of consumers who indicated they were more favorably inclined to consider buying a Ford, because Ford didn’t ask for or receive federal assistance.

In December, that group made up 19.6 percent of the respondents. In February it was 27 percent, and in May 38 percent, CNW said.

In the most recent survey, about 9 percent of respondents said that “not accepting bailout funds” was the single most important reason for considering a Ford, according to CNW.

“A ‘Buy American’ attitude has been growing, but the primary beneficiary is likely to be Ford which is not only a U.S. brand, but not owned by the federal government. Consumers in large part — better than 80 percent — believe the bailout funds were misspent and government ownership is anathema to how business should be done,” CNW said, in its monthly Retail Automotive Summary.

“Time will likely heal these attitudes. When Chrysler was purchased by Daimler, a large portion of the WWII generation said they wouldn’t buy a car from a German company,” CNW said.

Chart: CNW Marketing Research

Hyundai Does Well in J.D. Power INITIAL QUALITY STUDY

Hyundai Does Well in J.D. Power IQS; Lexus Back on Top

By Jim Henry | June 23rd, 2009 @ 7:21 am

Time for a brief flurry of reporting and analysis of the 2009 J.D. Power and Associates Initial Quality Study, after which the results will sink from public view for another year, except for advertising blurbs, which many consumers discount anyway.

It’s too bad there’s so much spin control, profiteering and drum-beating surrounding J.D. Power surveys, because the results really do provide some sort of reflection, however distorted, of how car companies are doing at pleasing their customers.

Here’s my short list of noteworthy IQS results, which were released June 22:

Lexus is back in the No. 1 position. This represents “The World Turned Right-Side Up,” since Lexus has aced IQS almost since its debut 20 years ago. Lexus fell to No. 3 last year, behind Porsche and Infiniti.

Hyundai was No. 4, and the leading non-luxury brand, which Hyundai will be quick to promote, assuming Hyundai is willing to pay J.D. Power’s eye-watering fee for using the results in advertising. Hyundai is on a roll in the United States, but its sister Kia division has some catching up to do.

Ford and Chevrolet came within an ace of reaching the 100 Problems Per 100 Vehicles benchmark, which was once owned pretty much exclusively by Lexus. It will take years of water dripping on a stone for U.S. brands to wear down their reputation for poor quality, but at least they’re moving in the right direction.

Yesterday’s J.D. Power press release – which goes a long way towards spinning news coverage of the results – highlighted improved scores for domestic brands, despite the turmoil in Detroit.

For all its flaws, IQS is at least some sort of third-party measurement of quality. As such, it’s way ahead of whatever quality measures the car companies would provide to the public if it were up to them.

To read the car company pronouncements, you would think that IQS was like Lake Wobegon, where all the children are above average.

But over time, the survey results really do affect products, and the car companies really do want to score well. After the short-lived hoopla dies down, auto industry quality gnomes will dissect the results and the results for their competitors and keep chipping away, deep under the auto industry mountains.

Consumers Spending More to Keep Aging Vehicles on the Road

Consumers Spending More to Keep Aging Vehicles on the Road
Americans purchased about 3 million fewer cars in 2008 than they did the previous year, and according to a study by The NPD Group, consumers are starting to spend more on parts and repairs to keep the older vehicles they have on the road longer.
While NPD’s Automotive Aftermarket Industry Monitor (AAIM), which tracks retail and commercial sales at the point-of-sale for over 18,000 auto parts stores in the U.S., shows total unit volume of application parts flat for the first quarter of 2009 versus year-ago, several aftermarket parts categories showed meaningful increases.
The report identified the top five parts growth categories in the first quarter as wiper components, auto batteries, suspension parts, driveline products and electrical components.
According to the AAIM point-of-sale data for the quarter ending March 2009, growth in unit volume reflects an actual increase in transactions and indicates consumers are getting in the garage or visiting their car care professionals. In addition to growth in unit volume, the aftermarket saw healthy first-quarter dollar volume increases. Dollar volume of application parts for the first quarter of 2009 was up 6.3 percent versus year-ago.
Replacement application parts categories grew significantly in northeastern markets like Boston, Hartford, and Detroit. Florida markets including Miami, Tampa, and Jacksonville, which experienced record drought conditions a year ago, led strong windshield wiper component sales growth during the first quarter.
“The conventional wisdom in the auto aftermarket is that it is only a matter of time before sales of replacement parts for these aging cars will begin to provide a lift to total aftermarket spending,” says David Portalatin, industry analyst for NPD’s auto unit. “It now appears that consumers are recognizing that they will need to spend more on service and repairs to keep their vehicles on the road longer.”
In a recent NPD survey, which was presented at the Global Automotive Aftermarket Symposium in May, consumers were asked whether they agreed with this statement: “In an effort to keep my vehicle on the road longer, I will spend more on service and repair.” Fifty-eight percent said they agreed or strongly agreed with that statement.
While the first quarter numbers are encouraging, Portalatin cautions that the months ahead may be less encouraging.
“The two factors that contribute most to demand for automotive products and services are the number of vehicles on the road and how far those vehicles drive,” he says. “It is possible neither of these factors will increase in 2009. So while aging vehicles may give a short-term boost to parts sales, future demand growth may be more difficult to generate. In addition, many consumers are still trying to cut back on spending by deferring vehicle maintenance and repair as much as they can.”
(Source: The NPD Group, 06/16/09)Consumers Spending More to Keep Aging Vehicles on the Road
Americans purchased about 3 million fewer cars in 2008 than they did the previous year, and according to a study by The NPD Group, consumers are starting to spend more on parts and repairs to keep the older vehicles they have on the road longer.
While NPD’s Automotive Aftermarket Industry Monitor (AAIM), which tracks retail and commercial sales at the point-of-sale for over 18,000 auto parts stores in the U.S., shows total unit volume of application parts flat for the first quarter of 2009 versus year-ago, several aftermarket parts categories showed meaningful increases.
The report identified the top five parts growth categories in the first quarter as wiper components, auto batteries, suspension parts, driveline products and electrical components.
According to the AAIM point-of-sale data for the quarter ending March 2009, growth in unit volume reflects an actual increase in transactions and indicates consumers are getting in the garage or visiting their car care professionals. In addition to growth in unit volume, the aftermarket saw healthy first-quarter dollar volume increases. Dollar volume of application parts for the first quarter of 2009 was up 6.3 percent versus year-ago.
Replacement application parts categories grew significantly in northeastern markets like Boston, Hartford, and Detroit. Florida markets including Miami, Tampa, and Jacksonville, which experienced record drought conditions a year ago, led strong windshield wiper component sales growth during the first quarter.
“The conventional wisdom in the auto aftermarket is that it is only a matter of time before sales of replacement parts for these aging cars will begin to provide a lift to total aftermarket spending,” says David Portalatin, industry analyst for NPD’s auto unit. “It now appears that consumers are recognizing that they will need to spend more on service and repairs to keep their vehicles on the road longer.”
In a recent NPD survey, which was presented at the Global Automotive Aftermarket Symposium in May, consumers were asked whether they agreed with this statement: “In an effort to keep my vehicle on the road longer, I will spend more on service and repair.” Fifty-eight percent said they agreed or strongly agreed with that statement.
While the first quarter numbers are encouraging, Portalatin cautions that the months ahead may be less encouraging.
“The two factors that contribute most to demand for automotive products and services are the number of vehicles on the road and how far those vehicles drive,” he says. “It is possible neither of these factors will increase in 2009. So while aging vehicles may give a short-term boost to parts sales, future demand growth may be more difficult to generate. In addition, many consumers are still trying to cut back on spending by deferring vehicle maintenance and repair as much as they can.”
(Source: The NPD Group,FROM OUR FRIEND 06/16/09)
THIS HAS IMPLICATIONS FOR SERVICE DEPARTMENT MARKETING, USED CARS AND NEW CAR SALES. CONTRIBUTED BY OUR FRIEND JERRY LENZ AT CLEAR CHANNEL ORLANDO:
Consumers Spending More to Keep Aging Vehicles on the Road
Americans purchased abut o3 million fewer cars in 2008 than they did the previous year, and according to a study by The NPD Group, consumers are starting to spend more on parts and repairs to keep the older vehicles they have on the road longer.
While NPD’s Automotive Aftermarket Industry Monitor (AAIM), which tracks retail and commercial sales at the point-of-sale for over 18,000 auto parts stores in the U.S., shows total unit volume of application parts flat for the first quarter of 2009 versus year-ago, several aftermarket parts categories showed meaningful increases.
The report identified the top five parts growth categories in the first quarter as wiper components, auto batteries, suspension parts, driveline products and electrical components.
According to the AAIM point-of-sale data for the quarter ending March 2009, growth in unit volume reflects an actual increase in transactions and indicates consumers are getting in the garage or visiting their car care professionals. In addition to growth in unit volume, the aftermarket saw healthy first-quarter dollar volume increases. Dollar volume of application parts for the first quarter of 2009 was up 6.3 percent versus year-ago.
Replacement application parts categories grew significantly in northeastern markets like Boston, Hartford, and Detroit. Florida markets including Miami, Tampa, and Jacksonville, which experienced record drought conditions a year ago, led strong windshield wiper component sales growth during the first quarter.
“The conventional wisdom in the auto aftermarket is that it is only a matter of time before sales of replacement parts for these aging cars will begin to provide a lift to total aftermarket spending,” says David Portalatin, industry analyst for NPD’s auto unit. “It now appears that consumers are recognizing that they will need to spend more on service and repairs to keep their vehicles on the road longer.”
In a recent NPD survey, which was presented at the Global Automotive Aftermarket Symposium in May, consumers were asked whether they agreed with this statement: “In an effort to keep my vehicle on the road longer, I will spend more on service and repair.” Fifty-eight percent said they agreed or strongly agreed with that statement.
While the first quarter numbers are encouraging, Portalatin cautions that the months ahead may be less encouraging.
“The two factors that contribute most to demand for automotive products and services are the number of vehicles on the road and how far those vehicles drive,” he says. “It is possible neither of these factors will increase in 2009. So while aging vehicles may give a short-term boost to parts sales, future demand growth may be more difficult to generate. In addition, many consumers are still trying to cut back on spending by deferring vehicle maintenance and repair as much as they can.”
(Source: The NPD Group, 06/16/09)

Ford shifts advertising into overdrive.

Ford shifts advertising into overdrive.

The struggles of General Motors and Chrysler may be the opening Ford Motor Company has long waited for. It has increased radio marketing as it looks to take share from competitors. Ford aired 81,261 spots in May according to Media Monitors. That’s more than twice what General Motors ran.

Even so, General Motors hasn’t stopped spending with radio altogether. Over the last year it leads Ford 607,121 to 517,182 in radio spots. Both automakers are also significantly above its low-water mark. In January they aired fewer than 6,000 radio commercials.

CAR ALLOWANCE REBATE PROGRAM “CASH FOR CLUNKERS” OFFICIAL GOV’T SITE

Important Things to Know

  • Your vehicle must be less than 25 years old on the trade-in date
  • Only purchase or lease of new vehicles qualify
  • Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)
  • Trade-in vehicles must be registered and insured continuously for the full year preceding the trade-in
  • You don’t need a voucher, dealers will apply a credit at purchase
  • Program runs through Nov 1, 2009 or when the funds are exhausted, whichever comes first.
  • The vehicle that you are trading in is required to be destroyed. Therefore, the value you negotiate with the dealer for your trade in is not likely to exceed its scrap value. The law requires the dealer to disclose to you and estimate of the scrap value of your trade-in vehicle.

GET ALL THE DETAILS INCLUDING EMAIL UPDATES HERE: http://www.cars.gov/

BIG GAINS FOR DOMESTICS IN NEW POWER STUDY

BIG GAINS FOR DOMESTICS IN NEW POWER STUDY
The Daily News of TV Sales Thursday, June 25, 2009
www.spotsndots.com
Daily Fax/PDF newsletter
Subscription: $325 per year
Call toll free: 888-884-2630
This publication cannot be
distributed beyond the office
of its named subscriber.
Send sales-related job listing
to: Ads@spotsndots.com
Copyright 2009.
HYUNDAI ALSO IMPROVES
Some might think it’s too little, too late, but the Detroit
three showed significant improvements in the new 2009
Initial Quality Study from J.D. Power and Associates,
which measures problems that arise in the first 90 days
after a vehicle was purchased. Power says that the number
of problems reported by owners improved by 8% on a total
industry basis, but new vehicles sold by GM, Ford and
Chrysler collectively produced
improvements of an average of 10%.
“Even in the face of
unprecedented challenges, the
Detroit automakers are keeping their
focus on designing and building highquality
vehicles, which is a
precondition for long-term success,”
Power’s VP of automotive research David Sargent said.
Overall, the industry average is 108 problems per 100
vehicles sold, which is down from 118 problems a year
ago. Domestic brands averaged 112 problems, down
from 124 problems per 100 vehicles last year.
Automotive News notes overall quality was the best in
the 23-year history of the study, based on responses from
more than 80,000 people.
On a basis of cars (excluding light trucks, minivans,
SUVs), domestics matched the imports on initial quality at
102 problems per 100 cars, according to the Detroit News.
On a total brand basis, three luxury brands led the list,
Lexus with 84 problems per 100 vehicles, Porsche with
90, and Cadillac with 91. Hyundai was fourth with 95
problems (its U.S. head pointed out that the upscale
Genesis model would have tied Lexus on a standalone
basis), and Honda came in fifth at 99 problems.
Other brands beating the industry average were
Mercedes and Toyota, 101 problems; Ford, 102;
Chevrolet and Suzuki, 103; and Infiniti and Mercury, each
at 106 problems.
Although Chrysler showed improvement versus its own
prior results, it sill dragged down the domestic average.
Dodge, its best brand, recorded 134 problems; brand
Chrysler was at 136, and Jeep 137.
Despite the overall improvement, brands that were
below the industry average were more than double the
number of brands above it; 25 below the average compared
to twelve that beat it. In addition to the Chrysler brands, the
others that fell below the average were Nissan, 110; Acura,
111; BMW, Kia, and Volkswagen, 112; GMC, 116; Buick,
117; Audi, Pontiac, Scion, and Volvo, 118; Saturn, 120;
Mazda, 123; Lincoln, 129; Subaru, 130; Jaguar, 134;
Mitsubishi, 135; Hummer, 136; Saab and Smart, 138; Land
Rover, 150; and Mini, 165.BIG GAINS FOR DOMESTICS IN NEW POWER STUDY
The Daily News of TV Sales Thursday, June 25, 2009
www.spotsndots.com
Daily Fax/PDF newsletter
Subscription: $325 per year
Call toll free: 888-884-2630
This publication cannot be
distributed beyond the office
of its named subscriber.
Send sales-related job listing
to: Ads@spotsndots.com
Copyright 2009.
HYUNDAI ALSO IMPROVES
Some might think it’s too little, too late, but the Detroit
three showed significant improvements in the new 2009
Initial Quality Study from J.D. Power and Associates,
which measures problems that arise in the first 90 days
after a vehicle was purchased. Power says that the number
of problems reported by owners improved by 8% on a total
industry basis, but new vehicles sold by GM, Ford and
Chrysler collectively produced
improvements of an average of 10%.
“Even in the face of
unprecedented challenges, the
Detroit automakers are keeping their
focus on designing and building highquality
vehicles, which is a
precondition for long-term success,”
Power’s VP of automotive research David Sargent said.
Overall, the industry average is 108 problems per 100
vehicles sold, which is down from 118 problems a year
ago. Domestic brands averaged 112 problems, down
from 124 problems per 100 vehicles last year.
Automotive News notes overall quality was the best in
the 23-year history of the study, based on responses from
more than 80,000 people.
On a basis of cars (excluding light trucks, minivans,
SUVs), domestics matched the imports on initial quality at
102 problems per 100 cars, according to the Detroit News.
On a total brand basis, three luxury brands led the list,
Lexus with 84 problems per 100 vehicles, Porsche with
90, and Cadillac with 91. Hyundai was fourth with 95
problems (its U.S. head pointed out that the upscale
Genesis model would have tied Lexus on a standalone
basis), and Honda came in fifth at 99 problems.
Other brands beating the industry average were
Mercedes and Toyota, 101 problems; Ford, 102;
Chevrolet and Suzuki, 103; and Infiniti and Mercury, each
at 106 problems.
Although Chrysler showed improvement versus its own
prior results, it sill dragged down the domestic average.
Dodge, its best brand, recorded 134 problems; brand
Chrysler was at 136, and Jeep 137.
Despite the overall improvement, brands that were
below the industry average were more than double the
number of brands above it; 25 below the average compared
to twelve that beat it. In addition to the Chrysler brands, the
others that fell below the average were Nissan, 110; Acura,
111; BMW, Kia, and Volkswagen, 112; GMC, 116; Buick,
117; Audi, Pontiac, Scion, and Volvo, 118; Saturn, 120;
Mazda, 123; Lincoln, 129; Subaru, 130; Jaguar, 134;
Mitsubishi, 135; Hummer, 136; Saab and Smart, 138; Land
Rover, 150; and Mini, 165.

Thursday, June 25, 2009

Some might think it’s too little, too late, but the Detroit

three showed significant improvements in the new 2009

Initial Quality Study from J.D. Power and Associates,

which measures problems that arise in the first 90 days

after a vehicle was purchased. Power says that the number

of problems reported by owners improved by 8% on a total

industry basis, but new vehicles sold by GM, Ford and

Chrysler collectively produced

improvements of an average of 10%.

“Even in the face of

unprecedented challenges, the

Detroit automakers are keeping their

focus on designing and building highquality

vehicles, which is a

precondition for long-term success,”

Power’s VP of automotive research David Sargent said.

Overall, the industry average is 108 problems per 100

vehicles sold, which is down from 118 problems a year

ago. Domestic brands averaged 112 problems, down

from 124 problems per 100 vehicles last year.

Automotive News notes overall quality was the best in

the 23-year history of the study, based on responses from

more than 80,000 people.

On a basis of cars (excluding light trucks, minivans,

SUVs), domestics matched the imports on initial quality at

102 problems per 100 cars, according to the Detroit News.

On a total brand basis, three luxury brands led the list,

Lexus with 84 problems per 100 vehicles, Porsche with

90, and Cadillac with 91. Hyundai was fourth with 95

problems (its U.S. head pointed out that the upscale

Genesis model would have tied Lexus on a standalone

basis), and Honda came in fifth at 99 problems.

Other brands beating the industry average were

Mercedes and Toyota, 101 problems; Ford, 102;

Chevrolet and Suzuki, 103; and Infiniti and Mercury, each

at 106 problems.

Although Chrysler showed improvement versus its own

prior results, it sill dragged down the domestic average.

Dodge, its best brand, recorded 134 problems; brand

Chrysler was at 136, and Jeep 137.

Despite the overall improvement, brands that were

below the industry average were more than double the

number of brands above it; 25 below the average compared

to twelve that beat it. In addition to the Chrysler brands, the

others that fell below the average were Nissan, 110; Acura,

111; BMW, Kia, and Volkswagen, 112; GMC, 116; Buick,

117; Audi, Pontiac, Scion, and Volvo, 118; Saturn, 120;

Mazda, 123; Lincoln, 129; Subaru, 130; Jaguar, 134;

Mitsubishi, 135; Hummer, 136; Saab and Smart, 138; Land

Rover, 150; and Mini, 165.

U.S. Auto Makers Score Wins in Meeting Consumer Expectations says AutoPacific’s 2009 Ideal Vehicle Awards

U.S. Auto Makers Score Most Wins in Meeting Consumer Expectations According to AutoPacific’s 2009 Ideal Vehicle Awards

Survey of 32,000 Consumers Reveals Vehicles that Meet or Exceed Expectations

TUSTIN, Calif., June 29 /PRNewswire/ — Porsche and Ford Motor Company earned top honors in the 2009 Ideal Vehicle Awards (IVA), announced today by automotive research firm AutoPacific. The IVAs are based on owners’ ratings of their new 2009 model year cars and trucks across 15 key vehicle attributes. The cars or trucks that owners would change the least are the most ideal.

“In today’s economy, car buyers take many factors into consideration – styling, safety features, fuel economy and more,” says George Peterson, president of AutoPacific. “IVA winners deliver the most of what consumers are really looking for in their vehicles.”

“While some measurements barely differentiate between the highest and lowest-ranked vehicles, the Ideal Vehicle Awards clearly show which carmakers are providing the attributes car buyers want,” says Peterson. “Looking at segment wins and top overall honors, shoppers can use the IVAs as a benchmark for vehicles that are designed and built with customers just like them in mind. In fact, AutoPacific owner research also shows that IVA-winning vehicles achieve higher overall satisfaction from their owners.”

For 2009, the top-rated premium brand is Porsche, outscoring Buick and Jaguar for the most ideal premium vehicle brand honors. The top-rated mainstream brand is Ford, outscoring Mercury for top mainstream brand results. Porsche and Ford were also the highest scoring premium and mainstream brands in the 2008 IVA rankings.

The top-rated vehicle overall is the Honda Odyssey minivan, which beat out the next-highest rated vehicle, the Toyota Venza, from the premium mid-size crossover SUV segment. Rounding out the top five were three Ford Motor Company products: the Ford F-150 large pickup, followed by the Ford Taurus and the Lincoln Town Car, both in the large car segment.

Ford Motor Company leads the industry with a total of five segment winners. Hyundai/Kia and Toyota/Lexus each had three segment winners, with Chrysler, General Motors and Honda bringing in two wins each.

Of the twenty-three Ideal Vehicle Award (IVA) categories, American brands have nine segment winners, Japanese brands seven, European brands four, and Korean brands have three segment winners.

The top-rated product segment is Large Car, beating out last year’s leading category, Large Crossover SUV. American buyers continue to value large, comfortable vehicles suitable for suburban driving and longer distance highway cruising.

    2009 Ideal Premium Brand: Porsche
    2009 Ideal Mainstream Brand: Ford
    2009 Ideal Product Segment: Large Car

    2009 Ideal Vehicle Award Winners:

    Passenger Cars:
    Premium Luxury Car               Lexus LS
    Aspirational Luxury Car          Hyundai Genesis
    Large Car                        Ford Taurus
    Luxury Mid-Size Car              Lexus ES350
    Premium Mid-Size Car             Saturn Aura
    Mid-Size Car                     Volkswagen Jetta
    Image Compact Car                MINI Cooper
    Compact Car                      Hyundai Elantra
    Economy Car                      Honda Fit
    Sports Car                       Porsche 911
    Sporty Car                       Dodge Challenger

    Pickups, SUVs and Minivans
    Large Pickup                     Ford F-150
    Compact Pickup                   Ford Explorer Sport Trac
    Luxury Sport Utility             Lincoln Navigator
    Large Sport Utility              Nissan Armada
    Premium Mid-Size Sport Utility   Ford Explorer
    Mid-Size Sport Utility           Jeep Liberty
    Luxury Crossover SUV             BMW X5
    Large Crossover SUV              Chevrolet Traverse
    Premium Mid-Size Crossover SUV   Toyota Venza
    Mid-Size Crossover SUV           Subaru Forester
    Compact Crossover SUV            Kia Sportage
    Minivan                          Honda Odyssey

In addition to identifying segment winners, IVA also establishes numerical ideal vehicle ratings for virtually every passenger car and light truck in the United States market. These results come from calculating owner input across 15 specific areas related to a vehicle’s attributes, including: exterior styling, exterior size, passenger roominess, cargo space, driver’s seat comfort, driver’s seat visibility, interior technology, interior lighting, power and acceleration, ease of getting in and out, interior storage compartments, ride, handling, safety features and tires and wheels.

In 2009, AutoPacific has named its Vehicle Satisfaction Award winners, plus announced “Owner Recommendations,” based on a survey of more than 25,000 new car owners.

JAGUAR AND LAND ROVER VEHICLES BOTH RECOGNIZED AS LEADERS IN TOTAL QUALITY

JAGUAR AND LAND ROVER VEHICLES BOTH RECOGNIZED AS LEADERS IN TOTAL QUALITY
∙  Strategic Vision Inc. (SVI) ranks both Jaguar and Land Rover brands as segment leaders in Total Quality Index™ (TQI)
∙  Range Rover earns first place in Luxury Utility segment
∙  Jaguar is most improved brand overall
MAHWAH, N.J., JUNE 29, 2009 – Jaguar and Land Rover were each recognized today for their leading ownership experience in Strategic Vision Inc.’s (SVI) Total Quality Index™ (TQI). This recognition for both brands demonstrates Jaguar Land Rover’s commitment to producing vehicles that buyers judge high in perceived quality and emotional delight.
The Total Quality Index™ is a complete measure of the total ownership experience. Buyers are asked to rate all aspects of their buying, owning and driving experience. This accounts for a wide variety of aspects, including customers’ commitment to, advocacy and vehicle loyalty.
The Jaguar and Land Rover brands rated first and second place, respectively, for the $30,000+ category, with Jaguar also being recognized as the most-improved brand among all competitors. Range Rover scored a first place finish in the Luxury Utility segment and notably, many other models across both brands scored very well in their segments.
“For Jaguar and Land Rover to rank as leaders in Total Quality is validation that we offer an exemplary entire ownership experience, from the vehicles’ quality and performance, to the buying and ownership experience,” says Gary Temple, President, Jaguar Land Rover North America, LLC.  “This recognition highlights the enormous passion and pride our employees, dealers and customers have for Jaguar and Land Rover vehicles.”
The Total Quality Index™ was calculated from buyers who bought 2008 and 2009 models from September through December 2008.
###
Jaguar Land Rover is a business built around two great British car brands that design, engineer and manufacture in the UK. Jaguar Cars Limited, founded in 1922, is one of the world’s premier manufacturers of luxury sedans and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that define ‘breadth of capability’ in their segments. The Jaguar XF, XJ and XK models are manufactured at the company’s Castle Bromwich plant in Birmingham, while the Jaguar X-TYPE is produced alongside the Land Rover LR2 (Freelander 2) at the Halewood plant in Liverpool. Land Rover’s Defender, LR3 (Discovery 3), Range Rover Sport and Range Rover models are all built at the Solihull plant. The Jaguar Land Rover business employs some 16,000 people, predominately in the UK, including some 3,500 engineers at two product development centers in Whitley, Coventry and Gaydon, Warwickshire. The business is a major wealth generator for the UK with 78 percent of Land Rovers exported to 169 countries and 70 percent of Jaguars exported to 63 countries, with sales to customers conducted principally through franchised dealers and importers.
JAGUAR AND LAND ROVER VEHICLES BOTH RECOGNIZED AS LEADERS IN TOTAL QUALITY
∙  Strategic Vision Inc. (SVI) ranks both Jaguar and Land Rover brands as segment leaders in Total Quality Index™ (TQI)
∙  Range Rover earns first place in Luxury Utility segment
∙  Jaguar is most improved brand overall
MAHWAH, N.J., JUNE 29, 2009 – Jaguar and Land Rover were each recognized today for their leading ownership experience in Strategic Vision Inc.’s (SVI) Total Quality Index™ (TQI). This recognition for both brands demonstrates Jaguar Land Rover’s commitment to producing vehicles that buyers judge high in perceived quality and emotional delight.
The Total Quality Index™ is a complete measure of the total ownership experience. Buyers are asked to rate all aspects of their buying, owning and driving experience. This accounts for a wide variety of aspects, including customers’ commitment to, advocacy and vehicle loyalty.
The Jaguar and Land Rover brands rated first and second place, respectively, for the $30,000+ category, with Jaguar also being recognized as the most-improved brand among all competitors. Range Rover scored a first place finish in the Luxury Utility segment and notably, many other models across both brands scored very well in their segments.
“For Jaguar and Land Rover to rank as leaders in Total Quality is validation that we offer an exemplary entire ownership experience, from the vehicles’ quality and performance, to the buying and ownership experience,” says Gary Temple, President, Jaguar Land Rover North America, LLC.  “This recognition highlights the enormous passion and pride our employees, dealers and customers have for Jaguar and Land Rover vehicles.”
The Total Quality Index™ was calculated from buyers who bought 2008 and 2009 models from September through December 2008.
###
Jaguar Land Rover is a business built around two great British car brands that design, engineer and manufacture in the UK. Jaguar Cars Limited, founded in 1922, is one of the world’s premier manufacturers of luxury sedans and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that define ‘breadth of capability’ in their segments. The Jaguar XF, XJ and XK models are manufactured at the company’s Castle Bromwich plant in Birmingham, while the Jaguar X-TYPE is produced alongside the Land Rover LR2 (Freelander 2) at the Halewood plant in Liverpool. Land Rover’s Defender, LR3 (Discovery 3), Range Rover Sport and Range Rover models are all built at the Solihull plant. The Jaguar Land Rover business employs some 16,000 people, predominately in the UK, including some 3,500 engineers at two product development centers in Whitley, Coventry and Gaydon, Warwickshire. The business is a major wealth generator for the UK with 78 percent of Land Rovers exported to 169 countries and 70 percent of Jaguars exported to 63 countries, with sales to customers conducted principally through franchised dealers and importers.

JAGUAR AND LAND ROVER VEHICLES BOTH RECOGNIZED AS LEADERS IN TOTAL QUALITY

∙  Strategic Vision Inc. (SVI) ranks both Jaguar and Land Rover brands as segment leaders in Total Quality Index™ (TQI)

∙  Range Rover earns first place in Luxury Utility segment

∙  Jaguar is most improved brand overall

MAHWAH, N.J., JUNE 29, 2009 – Jaguar and Land Rover were each recognized today for their leading ownership experience in Strategic Vision Inc.’s (SVI) Total Quality Index™ (TQI). This recognition for both brands demonstrates Jaguar Land Rover’s commitment to producing vehicles that buyers judge high in perceived quality and emotional delight.

The Total Quality Index™ is a complete measure of the total ownership experience. Buyers are asked to rate all aspects of their buying, owning and driving experience. This accounts for a wide variety of aspects, including customers’ commitment to, advocacy and vehicle loyalty.

The Jaguar and Land Rover brands rated first and second place, respectively, for the $30,000+ category, with Jaguar also being recognized as the most-improved brand among all competitors. Range Rover scored a first place finish in the Luxury Utility segment and notably, many other models across both brands scored very well in their segments.

“For Jaguar and Land Rover to rank as leaders in Total Quality is validation that we offer an exemplary entire ownership experience, from the vehicles’ quality and performance, to the buying and ownership experience,” says Gary Temple, President, Jaguar Land Rover North America, LLC.  “This recognition highlights the enormous passion and pride our employees, dealers and customers have for Jaguar and Land Rover vehicles.”

The Total Quality Index™ was calculated from buyers who bought 2008 and 2009 models from September through December 2008.

###

Jaguar Land Rover is a business built around two great British car brands that design, engineer and manufacture in the UK. Jaguar Cars Limited, founded in 1922, is one of the world’s premier manufacturers of luxury sedans and sports cars. Since 1948 Land Rover has been manufacturing authentic 4x4s that define ‘breadth of capability’ in their segments. The Jaguar XF, XJ and XK models are manufactured at the company’s Castle Bromwich plant in Birmingham, while the Jaguar X-TYPE is produced alongside the Land Rover LR2 (Freelander 2) at the Halewood plant in Liverpool. Land Rover’s Defender, LR3 (Discovery 3), Range Rover Sport and Range Rover models are all built at the Solihull plant. The Jaguar Land Rover business employs some 16,000 people, predominately in the UK, including some 3,500 engineers at two product development centers in Whitley, Coventry and Gaydon, Warwickshire. The business is a major wealth generator for the UK with 78 percent of Land Rovers exported to 169 countries and 70 percent of Jaguars exported to 63 countries, with sales to customers conducted principally through franchised dealers and importers.

Conservative commentators stoke anger against ‘Government Motors’

GM bailout triggers calls for boycott

By Paul A. Eisenstein
msnbc.com contributor
updated 7:06 a.m. ET, Fri., June 26, 2009

Barring an unexpected setback, a “new” General Motors will emerge soon from bankruptcy after eliminating most of its debt, hundreds of dealers and a fair share of its work force — saved by up to $50 billion in federal bailout funds.

But while the once-dominant automaker certainly wouldn’t have been able to survive without that federal largesse, the question is whether it can survive its unlikely alliance with Washington — which will hold a 60 percent stake in the company that emerges from the Chapter 11 process.

A sizable share of Americans, recent surveys show, are reluctant to buy from a bankrupt automaker. Complicating matters, the bailout is triggering a harsh reaction from the conservative end of the political spectrum, with some high-profile pundits calling for an outright boycott of what many are calling “Government Motors.”

Among the most vocal is Hugh Hewitt, who has frequently called for a boycott to protest the “Obamaization of the American car business,” both on his syndicated radio show and on his blog.

Hewitt insists that “individual Americans” must resist buying the automaker’s products because, as he wrote in one blog entry, “every dollar spent with GM is a dollar spent against free enterprise.”

Powerful radio talk show host Rush Limbaugh also has been associated with the movement but said he has not encouraged any boycott.

“I think it is media childishness when people start urging boycotts,” he said on his show this month, according to a transcript posted on his Web site.

He did say he has heard from listeners who do not intend to buy another GM or Chrysler car.

“The reasons I got from people who just sent me e-mails was they don’t want to support Obama’s socialism,” Limbaugh said. “They don’t want to support the notion of government running the car companies, and they don’t want to patronize companies that have been bailed out.”

How much of an impact the call for a boycott is having is unclear. GM fared a bit better than some had expected in the May sales sweepstakes, although that reflected activity prior to its June 1 bankruptcy filing.  Some studies suggest that U.S. car buyers may be ready to accept the idea that the automaker, like its crosstown rival, Chrysler, will come through its financial woes. (June sales figures will be released next week.)

It helps that the Obama administration has created a publicly funded program to ensure that GM and Chrysler warranties are honored, no matter what happens to the companies, said Art Spinella of Oregon’s CNW Marketing.

//

A study conducted by CNW, just as GM went into Chapter 11, found that 37 percent of potential U.S. car buyers were planning to steer clear of the company’s products, whether for practical or political reasons.  But that was an improvement over previous surveys, Spinella said. In July 2008, when CNW first asked potential buyers the question, about 90 percent said they would not consider buying a vehicle from a bankrupt automaker, he said.

Other surveys have not been so kind to GM, however, and it will likely take several more months to see whether the issue of bankruptcy was a short-term concern or a long-term problem. But it’s clear that the company’s conservative opponents won’t be letting up.

For his part GM Chief Executive Officer Frederick “Fritz” Henderson says he is “concerned” about a backlash against GM, whatever the reason, although he tries to downplay the boycott threat.

“I’m going to bet that U.S. customers will make their own choices,” Henderson said in an interview. “Our job is to do the best we can” to encourage buyers to look past both the bankruptcy and the bailout.

The automaker is counting on a speedy path through the courts to allay fears about its future and the wisdom of the bailout — and also to get the bad news off the front page.

But it’s harder to deal with the Internet. Numerous anti-GM sites, such as GMRetardation.com, have popped up across the Web, some hosting petitions calling for the government to get out of the auto industry, others asking buyers to pledge they will not buy from the Detroit maker.

Intriguingly, there has been somewhat less public opposition to the Chrysler bailout. Why?  Analysts suggest that may be because there’s less public money involved, or that the Treasury Department didn’t become the controlling force once the smaller maker emerged from bankruptcy, as it will at GM. Instead, Chrysler is now being run by the Italian auto manufacturer Fiat.

This isn’t the first, nor will it likely be the last, time an automaker has been threatened by those who see it as a political foe. Ford took heat from the outspoken Rev. James Dobson, founder of Focus on the Family, several years ago, for advertising in a number of gay and lesbian publications.

Initially, the automaker backed down, then quickly reversed course, saying it would maintain the advertising. There was little, if any, indication that Dobson’s threats actually cost Ford sales.

So, while radio host Hewitt insists his callers overwhelmingly support his call for a boycott, it’s not clear they’re actually in the car market — and steering their dollars over to GM’s competition. But the carmaker is nonetheless pressing its own case with an aggressive marketing campaign that tackles head-on questions about its bankruptcy, federal bailout and future prospects.

GM Promises 14 Hybrids by 2012

GM Promises 14 Hybrids by 2012

Posted June 24 2009 11:18 AM by Scott_Evans
Filed under: Green, General Motors

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GM is gearing up to begin serious work on hybrid vehicles as part of an effort to help reach President Barack Obama’s goal of putting 1 million hybrids and electric cars on the road by 2015. GM plans to have 14 hybrid models by 2012, a spokeswoman said today.

“I can tell you we can definitely do the heavy lifting part of that,” Britta Gross, GM’s director of global energy systems and infrastructure commercialization, told Reuters. “We definitely will lift up our end of that.”

The centerpiece of GM’s hybrid and EV line will, of course, be the Chevrolet Volt. GM plans to launch the range-extended, plug-in hybrid by the end of next year as a 2011 model. Gross wouldn’t say how many Volts GM expects to sell, but cautioned that cost of the technology, gas prices, the economy, and the availability of batteries could all affect Volt production and sales. Gross said that it would be difficult for the industry to put 1 million hybrids and EVs on the road in such a short time span, but said that GM is ready to do its part in meeting the president’s goal.

“These are new times with new challenges,” Gross said. “The price of gasoline is one of the factors. The economy is one of the factors. The capacity of General Motors or any large automaker to deploy plug-in vehicles depends on the capacity of suppliers. Among them are battery suppliers. We need more capacity.”

The big question is, what will these 14 hybrids that GM is promising be? The General currently has five in its stable, not including the discontinued Malibu Hybrid and the soon-to-be-sold-to-Penske Saturn division. GM has promised that a better Malibu Hybrid and the Volt are coming, but that only brings the tally to seven. We had a look through GM’s product portfolio, and here’s what we’ve come up with:

As noted above, GM has five hybrids in its line-up already, the Chevrolet Silverado and Tahoe and their twins the GMC Sierra and Yukon, and Cadillac Escalade, all of which are essentially the same vehicle underneath. While the Chevrolet Malibu mild hybrid is out for 2010, it’ll be back and the Chevrolet Volt is promised by the end of next year. That’s where the certainty ends.

Buick Crossover Teaser

From there, GM needs seven more hybrids to meet its 14-hybrid goal. GM has developed a two-mode hybrid system that was supposed to debut on the now-defunct Saturn Vue. GM did not, however, include the hybrid technology in the sale, so it’s still waiting in the wings and it will most likely show up on the Vue’s platform mates, the Chevrolet Equinox and the GMC Terrain. That’s nine. Meanwhile, rumor has it that an as-of-yet-unnamed Buick crossover to be built on the Theta platform will be the first vehicle to get the Vue’s two-mode system, so that could make ten. With the new Cadillac SRX now on the Theta Premium platform, it could also be a candidate. That could be eleven.

With the Malibu Hybrid promised to return next year with a better hybrid powertrain — hopefully the same two-mode system that would be found in the Thetas, but more likely an improved BAS mild hybrid system — it’s likely its platform-mates could benefit as well. With yesterday’s announcement of a four-cylinder version of the new Buick LaCrosse, there’s a good chance that a LaCrosse Hybrid could be in the works as well. There’s twelve.

Here’s where it gets really murky. GM needs as few as two and as many as four more hybrids to meet its goal, and it’s running out of ready-to-be-converted models. One possibility is that GM could try to downsize the four-cylinder engine and two-mode hybrid system to fit under the hood of the new Chevrolet Cruze, which would open the door to a hybrid version of the upcoming Chevrolet Orlando MPV and the rumored Buick version of the Cruze. With the Orlando on hold and the Buick just a rumor, though, the Cruze is the only real possibility by 2012, and even that depends entirely on whether or not GM could make the packaging work.

Cadillac Converj Concept

Another possibility would be a proliferation of GM’s new Voltec technology, which will debut in the Chevrolet Volt. We reported earlier that the Voltec-based Cadillac Converj has been green-lighted for production and rumor has it a Buick model could be in the works, but neither of those reports has been officially confirmed. Further, it would be more than a little difficult for GM to get one or both of those cars in the showrooms by 2012.

One platform that GM hasn’t hybridized yet is the popular Lambda platform, consisting of the Chevrolet Traverse, GMC Acadia, and Buick Enclave. If GM can get the now-defunct Saturn Vue’s two-mode hybrid system out the door, the Lambdas with their high-feature V-6s are prime candidates, opening up three more potential hybrids to meet The General’s goal. The Lambdas are slightly less likely than the Thetas since their platform hasn’t been adapted for a hybrid drivetrain yet, but being larger vehicles, there should be room to do it. The big question is how long it will take to engineer the conversion to production standards.

A final, remote possibility is that GM could try to shrink its two-mode hybrid system from its trucks to fit into the RWD Cadillac CTS, provided there’s enough room in the car to make it happen.

Number of First-Time Used/New Buyers Hits Record Low

CNW: Number of First-Time Used/New Buyers Hits Record Low

By Joe Overby, Staff Writer June 22, 2009

BANDON, Ore. — In the first five months of the year, the proportion of first-time buyers in the auto marketplace has eroded significantly, according to CNW Research. In fact, through May, this group posted the lowest share of sales in the used- and new-vehicle markets in the history of CNW’s analysis of this data. Specifically, CNW estimates that less than a third (32 percent) of used-vehicle purchases in 2009 will be from first-time buyers, down from the more than 40-percent levels from 2002-2004 and in 2007. Meanwhile, only 18 percent of new-car sales will be from first-time buyers this year, CNW projects. During the 1990s, the average was 26 percent. CNW president Art Spinella suggested that this decline in first-time buyers — which is reflective of both a troubled economy and declining demand among younger shoppers — is problematic not only in the short term, but long term, as well. “Buying a new or used vehicle becomes habitual when started early in a consumer’s employment life,” he explained. “Losing that young first-time buyer requires added marketing dollars to draw a larger share of existing owners. “That’s also problematic, especially related to frequent-buying boomers who were hit hard by the stock market contraction,” Spinella added. “The saying ‘time heals all wounds’ is still in play, however, and as consumer confidence continues to rise so will desire for vehicles.” Used Prices Continue Year-over-Year Growth Moving on, CNW noted that used-vehicle prices gained some ground in the first part of June, as transaction prices climbed year-over-year for both franchised and independent dealers. Specifically, June used-car prices for franchise stores were up 4.95 percent from a year ago, while independents saw a 0.9-percent hike. Moreover, analysts expect than June’s used-car sales are likely to come in at about 4.5 million units, which would be the first “significant” year-over-year increase in 2009. CNW attributed this surge to pent-up demand from February and March. According to the data, 102,500 used-car shoppers put off making purchases in February for an average of 3.3 months, and 119,000 did the same in March, with an average delay of 3.1 months. “While pent-up demand continues to run ahead of last year, the rate of difference has slowed. The 106,400 estimated postponers in May of ‘09 is 128 percent of May ’08,” Spinella explained. “This is the smallest difference of the year. “The average anticipated delay in a used acquisition is barely over three months, half of the delay reported a year ago,” he continued. “Equally important, 92 percent of those who dropped out of the market say they still plan to buy a vehicle within a year.” Independents’ Numbers Continue Growth Continuing on to discuss other used-vehicle news, Spinella also noted that the number of independent stores continues to climb. In May, the dealer count jumped to 37,967 stores, up 143 locations from April and marking the second straight month of growth. That said, CNW called the survival rate for these stores “questionable,” because many of these facilities don’t have enough access to funding and haven’t made enough connections with local lenders that will finance used-car purchase or offer floor planning. “Most likely to survive: those with roots in the new-car business who lost their franchise and are waiting to acquire a replacement brand,” Spinella suggested. Cash for Clunkers Next, he also offered his perspective on the Cash for Clunkers program, which recently gained approval from both houses of Congress and is widely expected to be signed into law soon by President Obama. “Cash for Clunkers, as of this writing, does not include used vehicles, something the pre-owned industry pushed hard for,” Spinella shared. “The estimated 250,000 new-vehicle sales possibly generated by (the bill) represents a loss of inventory for used-car dealers, especially independents and buy-here, pay-here. “Don’t expect prices of used vehicles to climb on this smaller inventory, though,” he added. “Used-car pricing is linked directly to new-car transaction prices which are flat at best.” Used Markets Vary Throughout U.S. Moving on, CNW provided analysis on four used-vehicle markets in different corners of the country: Los Angeles, New Orleans, New York and Phoenix. Beginning with L.A., Spinella indicated that it appears to be recovering from “used-car sales purgatory.” May sales climbed 3.48 percent from 2008, and the area’s share of the entire U.S. used-vehicle market jumped 2 percent. Franchise dealers in Los Angeles saw their sales incline roughly 10.1 percent from 2008, while independents improved 0.51 percent. Casual unit sales fell 1.39 percent. “Los Angeles’ increase in sales versus a year ago reflects a growing number of potential new-car buyers jumping into a used vehicle,” Spinella pointed out. Down in New Orleans, the used market improved 19.49 percent year-over-year in May, and its share increased almost 18 percent. Sales for franchise stores moved ahead 33.59 percent and independent dealers reported a 27.61-percent gain in sales. Casual sales dipped by 3.25 percent. “In the New Orleans area, the story is one of finally shaking off the economic collapse caused by Hurricane Katrina, with a growing percentage of the population working and needing used vehicles,” Spinella noted. In the Big Apple, used-car sales dropped 4.23 percent, and New York’s share of the market declined 5.61 percent. Although independent dealerships showed a 7.23-percent improvement in used sales, franchise stores were relatively static (down 0.08 percent) and casual sales dropped 26.21 percent. “And while New York lags somewhat behind the total U.S., suffering from major Wall Street issues, Phoenix appears to have taken New Orleans’ seat at the purgatory table,” Spinella pointed out. More specifically, Phoenix’s used sales softened 22.61 percent and its share of the used market fell 23.72 percent. Franchised stores dipped 18.51 percent in Phoenix and independents’ May sales were off 20.21 percent. “While national numbers are telling, looking at the used market by DMA reveals the nature of sales more clearly,” Spinella explained. “Generally, for example, the data clearly suggests that while Phoenix is suffering from continued economic turmoil especially in the housing market, New Orleans is making tremendous gains as a place to sell pre-owned vehicles,” he continued. “And for all of the negative talk about California’s market collapse, Los Angeles is showing significant improvements versus 2008.” Premium on CPO Units Improves Next up, CNW analyzed the certified pre-owned market, and noted that the premium consumers are willing to pay for CPO jumped from $1,726 in April to $1,751 in May. Meanwhile, days-to-sell for certified units was 32.27 days in May, compared with 30.34 in April. For the non-CPO vehicles, however, the turn rate was 56.6 days. For the first five months of the year combined, the average turn rate has been 58.45 days, compared with 55.4 days for full-year 2008. Residual Values Fall for Some Brands Although much of the discussion surrounding automaker bankruptcies this spring has focused on the impact on new-vehicle sales, Spinella said the impact on residual values is just as important to examine. “In CNW’s monthly calculation of residual value projections, both GM and Chrysler future prices have sunk from decent levels just 18 months ago to abysmal this year,” he pointed out. For GM, during May there was a 57 percent difference between the projected values in three-year lease contracts and CNW’s wholesale value projections for the same time. In January 2008, it was 84.6 percent. “Chrysler suffers even more as many vehicles being sold are heavily discounted retail and fleet units,” Spinella stated. “Even with already lowered residual value projections from the arbiters of such data, including ALG and KBB in current contracts, the likelihood is that true wholesale prices three years hence will be barely 34 percent of contractual values.” According to CNW, the industry average for May was 62.3 percent. Among other Big Six automakers, Ford was at 73.5 percent, Toyota was projected at 63.1 percent, Honda was at 81.7 percent and Nissan was predicted at 67.3 percent. “Of the Big Six automakers, only Ford has been on an upward trend this year and has a residual value projection higher than at any time since July of last year,” he concluded.

Google to Target Users by FICO Score

Google to Target Users by FICO Score

Published on June 30, 2009
Google plans to experiment with targeting ads based on credit scores, offering users with high FICOs more expensive, luxury goods and services than those with lower scores.

The initiative will be launched in tandem with Compete, which has a database of about 2 million web users that agreed to provide info on their credit scores when they applied for a new credit card, says Google’s senior industry marketing manager for financial services, Masha Korsunsky, writes Mashable (via MarketingVOX).

Advertisers that want to reach consumers with a high FICO score, and who applied for mortgages in the first quarter, could be given access to a list of websites on the Google content network that index against this segment, Korsunsky said.

Although the data will primarily be used to target users looking for a credit card (especially those within the Super Prime segment, who have a FICO score of 720 or more), companies that sell luxury goods or services might also be interested in displaying ads only to customers with a high credit score.

In an email from a representative at Google, the company took pains to add that Google did not see, and will not see, consumer credit scores. “The distinction is incredibly important, as consumer privacy is incredibly important to us,” wrote Google’s Sandra Heikkinen. “There are no plans for Google to use FICO related targeting for any of its products or offerings, and we don’t collect or serve ads based on personal information without user permission.”

Online ad revenue optimization service PubMatic recently released a tool called Ad Price Prediction that can help publishers predict the cost of an ad unit in real time.

Last month, Yahoo launched a new effort for Smart Ads, whereby it will partner with third-party ad technology firms to expand behavioral display ads to mobile.

WALL STREET JOURNAL : Car Makers See End to Sales Slide

JULY 2, 2009

Car Makers See End to Sales Slide
By ANDREW GROSSMAN and KATE LINEBAUGH
The three biggest car makers in America called a bottom to the long decline in U.S. auto sales as the industry reported its smallest monthly sales drop this year.
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light trucks, according to the market-research firm Autodata Corp. That would be the smallest decline in any month this year.
“We believe the industry is moving beyond the bottom,” said Bob Carter, group vice president of Toyota Motor Co. in the U.S. “The weak economy’s grip on the auto industry appears to be lessening.”
Car Sales Sink Again
See U.S. light-vehicle sales since 2005.
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More interactive graphics and photos
Ford Motor Co. concurred. “The auto-industry downturn appears to be nearing a turning point,” George Pipas, the top sales analyst at Ford, said in a conference call.
Autodata said the annualized selling pace of cars and light trucks in the U.S. was 9.69 million vehicles, down from 9.91 million in May but still up from earlier in the year.
Even General Motors Corp. is calling a bottom. The company “feels pretty strongly that the bottom was hit earlier in the year,” said Mark LaNeve, GM’s sales and marketing chief, on a conference call.
The relatively stable auto-industry performance came as the U.S. Treasury Department and the Canadian government planned a coordinated approach toward selling their GM stake that could end their ownership role no later than 2018, according to people familiar with the matter.
The auto industry expects sales to get a boost at the end of July as consumers start to take advantage of the government’s “cash for clunkers” program, which provides incentives for consumers to trade in old cars for new models that get higher gas mileage.
Meanwhile, though, many car makers continued to post significant declines. GM said its sales fell 33% to 174,785 vehicles, Chrysler Group LLC’s declined 42% to 68,297 and even Toyota’s were down 32% at 131,654.
Ford, the only one of the Big Three Detroit auto makers that didn’t require government bailout loans and stayed out of bankruptcy-court proceedings, reported its sales declined just 11%, to 154,873 cars and trucks. That total allowed Ford to outsell Toyota for the fourth straight month.
Ford officials did stop short of predicting a full recovery, but they said the company believes the industry could see a modest improvement in the second half.
Emily Kolinski-Morris, a Ford senior economist, noted that the rate of decline in home prices is slowing and other economic indicators point to some strengthening in consumer confidence. Vehicle sales for the full year could well reach 10.5 million, she said. That’s still low, but it would represent an increase from the industry’s depressed selling rate in the 2008 fourth quarter and this year’s first quarter.
Meanwhile, a useful barometer of U.S. business showed continued improvement last month. An increase in production and a smaller decline in employment helped boost the Institute for Supply Management’s index of manufacturing activity to 44.8 in June from 42.8 in May, the sixth monthly increase in a row.
Associated Press
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light trucks.
Toyota’s Mr. Carter said sales in California continued to be the “most challenged” in June, while other regions such as the Southeast, the East Coast and the upper Midwest had stronger sales. “We are starting to see some mild recovery on the light-truck side,” he added. “It feels like the industry is coming back to a 50-50 balance at least in the short term.”
In another positive development, auto makers are reporting tighter inventories, which help to boost prices and profit margins. Ford ended June with a 60-day supply of vehicles on hand, down 38% from a year ago. Toyota had a 40-day supply. GM’s supply was still higher than its competitors’ inventories at 90 days, but it has dropped 27% from a year ago.
“As those inventories come down, there is opportunity,” said Jim Farley, Ford’s marketing chief. “That’s typically what happens in a recovery.”
The sharp declines at GM and Chrysler were caused in part by significantly lower sales to fleet customers such as rental-car companies. GM’s fleet sales were down 49% and Chrysler’s 95%. Auto makers also said uncertainty about the government’s “cash for clunkers” trade-in incentive program had depressed sales at the end of the month.
But both GM and Chrysler were helped as hundreds of their dealers scrambled to clear their inventory before closing their franchises as part of the two companies’ restructuring plans. Chrysler is dropping 789 stores from its retail network. GM saw similar clearance efforts by dealers that represent its Pontiac, Saturn and Hummer brands.JULY 2, 2009
Car Makers See End to Sales Slide
By ANDREW GROSSMAN and KATE LINEBAUGH
The three biggest car makers in America called a bottom to the long decline in U.S. auto sales as the industry reported its smallest monthly sales drop this year.
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light trucks, according to the market-research firm Autodata Corp. That would be the smallest decline in any month this year.
“We believe the industry is moving beyond the bottom,” said Bob Carter, group vice president of Toyota Motor Co. in the U.S. “The weak economy’s grip on the auto industry appears to be lessening.”
Car Sales Sink Again
See U.S. light-vehicle sales since 2005.
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More interactive graphics and photos
Ford Motor Co. concurred. “The auto-industry downturn appears to be nearing a turning point,” George Pipas, the top sales analyst at Ford, said in a conference call.
Autodata said the annualized selling pace of cars and light trucks in the U.S. was 9.69 million vehicles, down from 9.91 million in May but still up from earlier in the year.
Even General Motors Corp. is calling a bottom. The company “feels pretty strongly that the bottom was hit earlier in the year,” said Mark LaNeve, GM’s sales and marketing chief, on a conference call.
The relatively stable auto-industry performance came as the U.S. Treasury Department and the Canadian government planned a coordinated approach toward selling their GM stake that could end their ownership role no later than 2018, according to people familiar with the matter.
The auto industry expects sales to get a boost at the end of July as consumers start to take advantage of the government’s “cash for clunkers” program, which provides incentives for consumers to trade in old cars for new models that get higher gas mileage.
Meanwhile, though, many car makers continued to post significant declines. GM said its sales fell 33% to 174,785 vehicles, Chrysler Group LLC’s declined 42% to 68,297 and even Toyota’s were down 32% at 131,654.
Ford, the only one of the Big Three Detroit auto makers that didn’t require government bailout loans and stayed out of bankruptcy-court proceedings, reported its sales declined just 11%, to 154,873 cars and trucks. That total allowed Ford to outsell Toyota for the fourth straight month.
Ford officials did stop short of predicting a full recovery, but they said the company believes the industry could see a modest improvement in the second half.
Emily Kolinski-Morris, a Ford senior economist, noted that the rate of decline in home prices is slowing and other economic indicators point to some strengthening in consumer confidence. Vehicle sales for the full year could well reach 10.5 million, she said. That’s still low, but it would represent an increase from the industry’s depressed selling rate in the 2008 fourth quarter and this year’s first quarter.
Meanwhile, a useful barometer of U.S. business showed continued improvement last month. An increase in production and a smaller decline in employment helped boost the Institute for Supply Management’s index of manufacturing activity to 44.8 in June from 42.8 in May, the sixth monthly increase in a row.
Associated Press
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light trucks.
Toyota’s Mr. Carter said sales in California continued to be the “most challenged” in June, while other regions such as the Southeast, the East Coast and the upper Midwest had stronger sales. “We are starting to see some mild recovery on the light-truck side,” he added. “It feels like the industry is coming back to a 50-50 balance at least in the short term.”
In another positive development, auto makers are reporting tighter inventories, which help to boost prices and profit margins. Ford ended June with a 60-day supply of vehicles on hand, down 38% from a year ago. Toyota had a 40-day supply. GM’s supply was still higher than its competitors’ inventories at 90 days, but it has dropped 27% from a year ago.
“As those inventories come down, there is opportunity,” said Jim Farley, Ford’s marketing chief. “That’s typically what happens in a recovery.”
The sharp declines at GM and Chrysler were caused in part by significantly lower sales to fleet customers such as rental-car companies. GM’s fleet sales were down 49% and Chrysler’s 95%. Auto makers also said uncertainty about the government’s “cash for clunkers” trade-in incentive program had depressed sales at the end of the month.
But both GM and Chrysler were helped as hundreds of their dealers scrambled to clear their inventory before closing their franchises as part of the two companies’ restructuring plans. Chrysler is dropping 789 stores from its retail network. GM saw similar clearance efforts by dealers that represent its Pontiac, Saturn and Hummer brands.
NOTE: MORE GOOD NEWS. NOTICE HOW MANY MORE DEALERS ARE ADVERTISING AGAIN? ALSO, NOTICE HOW MANY HAVE INCREASED THEIR ADVERTISING TO GAIN THE LEADERSHIP POSITION? DEALERS THAT GET IN FRONT NOW COULD STAY THERE AS THE BUSINESS COMES BACK.=DP
JULY 2, 2009
Car Makers See End to Sales Slide
By ANDREW GROSSMAN and KATE LINEBAUGH
The three biggest car makers in America called a bottom to the long decline in U.S. auto sales as the industry reported its smallest monthly sales drop this year.
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light trucks, according to the market-research firm Autodata Corp. That would be the smallest decline in any month this year.
“We believe the industry is moving beyond the bottom,” said Bob Carter, group vice president of Toyota Motor Co. in the U.S. “The weak economy’s grip on the auto industry appears to be lessening.”
Ford Motor Co. concurred. “The auto-industry downturn appears to be nearing a turning point,” George Pipas, the top sales analyst at Ford, said in a conference call.
Autodata said the annualized selling pace of cars and light trucks in the U.S. was 9.69 million vehicles, down from 9.91 million in May but still up from earlier in the year.
Even General Motors Corp. is calling a bottom. The company “feels pretty strongly that the bottom was hit earlier in the year,” said Mark LaNeve, GM’s sales and marketing chief, on a conference call.
The relatively stable auto-industry performance came as the U.S. Treasury Department and the Canadian government planned a coordinated approach toward selling their GM stake that could end their ownership role no later than 2018, according to people familiar with the matter.
The auto industry expects sales to get a boost at the end of July as consumers start to take advantage of the government’s “cash for clunkers” program, which provides incentives for consumers to trade in old cars for new models that get higher gas mileage.
Meanwhile, though, many car makers continued to post significant declines. GM said its sales fell 33% to 174,785 vehicles, Chrysler Group LLC’s declined 42% to 68,297 and even Toyota’s were down 32% at 131,654.
Ford, the only one of the Big Three Detroit auto makers that didn’t require government bailout loans and stayed out of bankruptcy-court proceedings, reported its sales declined just 11%, to 154,873 cars and trucks. That total allowed Ford to outsell Toyota for the fourth straight month.
Ford officials did stop short of predicting a full recovery, but they said the company believes the industry could see a modest improvement in the second half.
Emily Kolinski-Morris, a Ford senior economist, noted that the rate of decline in home prices is slowing and other economic indicators point to some strengthening in consumer confidence. Vehicle sales for the full year could well reach 10.5 million, she said. That’s still low, but it would represent an increase from the industry’s depressed selling rate in the 2008 fourth quarter and this year’s first quarter.
Meanwhile, a useful barometer of U.S. business showed continued improvement last month. An increase in production and a smaller decline in employment helped boost the Institute for Supply Management’s index of manufacturing activity to 44.8 in June from 42.8 in May, the sixth monthly increase in a row.
Associated Press
New-vehicle sales in June fell 28% from a year earlier to 860,000 cars and light trucks.
Toyota’s Mr. Carter said sales in California continued to be the “most challenged” in June, while other regions such as the Southeast, the East Coast and the upper Midwest had stronger sales. “We are starting to see some mild recovery on the light-truck side,” he added. “It feels like the industry is coming back to a 50-50 balance at least in the short term.”
In another positive development, auto makers are reporting tighter inventories, which help to boost prices and profit margins. Ford ended June with a 60-day supply of vehicles on hand, down 38% from a year ago. Toyota had a 40-day supply. GM’s supply was still higher than its competitors’ inventories at 90 days, but it has dropped 27% from a year ago.
“As those inventories come down, there is opportunity,” said Jim Farley, Ford’s marketing chief. “That’s typically what happens in a recovery.”
The sharp declines at GM and Chrysler were caused in part by significantly lower sales to fleet customers such as rental-car companies. GM’s fleet sales were down 49% and Chrysler’s 95%. Auto makers also said uncertainty about the government’s “cash for clunkers” trade-in incentive program had depressed sales at the end of the month.
But both GM and Chrysler were helped as hundreds of their dealers scrambled to clear their inventory before closing their franchises as part of the two companies’ restructuring plans. Chrysler is dropping 789 stores from its retail network. GM saw similar clearance efforts by dealers that represent its Pontiac, Saturn and Hummer brands.

U.S. auto sales decline 28%, smallest drop in 9 months

JUNE U.S. AUTO SALES

U.S. sales decline 28%, smallest drop in 9 months

June’s seasonal rate falls short of projected 10 million mark

//

Chrissie Thompson
Automotive News
July 1, 2009 – 11:50 am ET
UPDATED: 7/1/09 8:25 p.m. ET

U.S. auto sales fell 27.7 percent in June, marking the smallest drop for the industry in nine months while dashing hopes that demand would rise to a 2009 high.

Ford Motor Co.’s 10.7 percent slide, its narrowest decline in 16 months, wasn’t enough to keep the seasonally adjusted sales rate from slipping to 9.5 million, below analysts’ projections of 10 million. June’s SAAR retreated to April levels, before the Chrysler and General Motors bankruptcies, and was well below the 13.1 million from June 2008.

Still, the industry is recovering, said Patrick Archambault, an analyst with Goldman Sachs.

“Every single month has been better,” he said. “We’re in a bit of a holding pattern here for one month, but there’s a lot of market drivers that are turning positive that should really help sustain an improvement once you get into the second half” of the year.

Ford fared better than other major automakers. It now stands at No. 2 in U.S. sales through the first half of the year after ceding the spot to Toyota Motor Sales U.S.A. Inc. in 2007. Ford’s market share grew to 16.1 percent, ahead of Toyota’s 16.0 percent and lagging GM’s 19.7 percent.

GM’s June sales were down 33.4 percent, and Chrysler Group LLC tumbled 41.9 percent, as both U.S. automakers slashed deliveries to fleets. Toyota slid 31.9 percent for its second-smallest drop of the year. Nissan North America’s 23.1 percent decline was its smallest since its last monthly sales gain, in August.

American Honda, the only one of the top six automakers to post a sales gain in June of 2008, slid 29.5 percent last month.

Subaru had the only increase, up 3.4 percent. The Hyundai recorded a 24 percent decline, its weakest performance this year, while affiliate Kia fell 5.1 percent. BMW Group’s sales were down 20.3 percent, their smallest slide since January.

Back below 900,000

Industry sales fell to 860,101, after rising above 900,000 in May for the first time this year.

Sales rates have ranged from 9.1 million to 9.9 million so far this year, stuck at 27-year lows. June’s results, depressed as they were, managed to reduce the decline for the year to 35.1 percent.

Last month’s percentage changes come in comparisons to June 2008, when the industry fell 18.3 percent. The industry’s decline accelerated last summer as gasoline prices soared to their highest point on record, with AAA data stretching back to 1974. Sales rates plunged even more dramatically in the fall as the United States fell deeper into a recession that’s now in its 20th month.

Car sales fell 31 percent last month, and trucks slid 23.1 percent, gaining some share after last summer’s fuel prices curbed their sales.

Ford posted overall increases for its Fusion sedan, Escape crossover, Expedition SUV, Ranger truck and the Volvo brand. Retail sales for F-series trucks also increased from the previous year, the automaker said.

The second quarter was a “breakthrough” for Ford, Jim Farley, group vice president for marketing and communications, said on a conference call. While sales didn’t increase, consideration and brand image did, he said.

Ford also benefited from year-ago comparisons that no longer include Jaguar and Land Rover. Monthly sales for those brands have been tallied by their new owner, Tata Motors, since June of last year.

Chrysler clearance

Chrysler said today it would run a July “summer clearance” promotion. The company will offer 0 percent financing for 60 months through GMAC Financial Services on some 2009 models, or up to $4,000 cash. Current Chrysler Group owners also may receive up to $1,000 cash on some 2008 and 2009 models.

Chrysler said it also will add up to $750 to the government’s cash-for-guzzlers voucher for its current owners.

Chrysler gave June incentives worth $4,873 per vehicle sold, according to the auto information site Edmunds.com. The industry average was $2,930.

The automaker’s fleet sales plunged 95 percent in June, while deliveries to individual customers fell 16 percent. Chrysler emerged from bankruptcy 10 days into the month after eliminating 789 dealerships.

GM’s decline included a 49 percent drop in fleet sales. Both it and Chrysler had extended plant shutdowns in June.

Buick and Pontiac brands posted GM’s smallest sales declines — 10.7 percent and 16.4 percent, respectively. On Tuesday, GM said it would offer 0 percent financing for up to 72 months on most of its Pontiac brand and some other vehicles. It entered bankruptcy June 1 and plans to phase out Pontiac next year, along with selling Hummer, Saab and Saturn.

Hope for the second half

June marked the 24th year-over-year monthly decline in 25 months. But analysts still foresee some recovery in the next six months.

Goldman Sachs’ Archambault pointed to results of the consumer confidence index measured by the Conference Board, a market information group. It had grown steadily from record-low levels in February, with data stretching back more than 40 years. The consumer confidence index took a small hit in June, but was still double February’s levels.

“On a six-month lag basis, consumer confidence has been a strong predictor, so it still points to a back-half recovery,” Archambault said.

Analysts forecasting a second-half improvement in sales also say the cash-for-guzzlers legislation President Barack Obama signed last week will improve car-buying interest and perhaps generate sales.

The government may not complete rules for the program until July 23, so consumers who were waiting for the law to pass may stay home for another month, said market analyst Chris Hopson, of IHS Global Insight.

The measure offers vouchers of as much as $4,500 to consumers who scrap gas-guzzling vehicles and buy new ones with better fuel economy. Predictions of the law’s effectiveness in boosting sales have been mixed. But Goldman Sachs’ Archambault said it should bump sales rates starting in August.

He said: “If all it does is add another 100,000 units to August, that’s going to add another 1.2 million units to the SAAR.”

Read more: http://www.autonews.com/article/20090701/ANA05/907019989/1078#ixzz0K9BHfs0g&C

Ford’s decision to opt-out of government TARP financing has multiple benefits

Do June Ford Sales Signal a Rebound? 

 July 2nd, 2009 @ 8:34 am

There has been abundant confirmation that Ford’s decision to opt-out of government TARP financing—a move made possible by CEO Alan Mulally’s prescient borrowing of $23 billion against its assets in 2006—has multiple benefits. People seem to be retaining their confidence in Ford cars and trucks, and it’s starting to show up in sales figures—which are still down, but not as dire as they might be. For one thing, Ford’s “financial viability” (meaning, not in bankruptcy court) ensured that it would receive $5.9 billion in federal advanced technology funding through 2011 to make its existing models, from the Taurus to the Focus, 25 percent more fuel efficient. General Motors and Chrysler may get funded, too, but only Ford received this boon in the first round (along with Nissan and Tesla). In June, Ford sales were down 10.7 percent compared to June 2008, but GM dropped 33 percent in the same period, and Chrysler 42 percent. Ford also outsold Toyota for the third month in a row. Strong Fusion and Flex sales were cited as one reason for an uptick. Ford could get into positive territory as its new products come on line. Crucial for the automaker is the 2010 Taurus, which has been dramatically made over and is moving somewhat upmarket. Business Week calls the Taurus (starting at $26,000, the same as the model it replaces) “styled and packaged just right.” The new car bristles with features, including adaptive cruise, collision warning, blind spot information system, rain-sensing wipers, capless refueling, and a new generation of its SYNC audio system. Here’s a first video drive of the new Taurus: The new Euro-rooted Fiesta and Focus are moving forward, and the Fiesta is being pre-marketed with a smart youth-oriented campaign that includes 100 Twitter-friendly bloggers using the cars for six months. The Focus, in a partnership with Magna International, will be the basis of a new electric battery car in 2011, and Ford is also working on a plug-in hybrid for 2012. The new, leaner Ford has also jettisoned Jaguar and Land Rover (to India’s Tata, generating $2.3 billion), gotten out of the supercar business by selling Aston Martin, reduced its share in Mazda, and is no doubt working overtime to sever its relationship with Volvo. The Fusion Hybrid is a very credible entry in the field. And the company is also trying to reinvigorate the stagnant Lincoln and Mercury brands with a new Fusion-based luxury sedan and SUVs grouped around “MK” branding. Executive Chairman Bill Ford said that “Alan was the right choice [to be CEO], and it gets more right every day.” Of course, Ford is hardly out of the woods. Sales are, after all, still down. But it hasn’t made any significantly wrong moves in its attempt to recover from the auto industry’s worst slump since the Depression.

Toyota’s U.S. Car Sales Drop Outpaces Market Decline

Toyota’s U.S. Car Sales Drop Outpaces Market Decline

July 2 2009 (Bloomberg) — Toyota Motor Corp.’s U.S. sales in June fell more than predicted after the company pared incentives and overall market demand failed to beat May’s level, delaying a U.S. rebound for Asian auto brands.

Toyota had a 32 percent drop in June. Sales for Honda Motor Co. and Nissan Motor Co., Japan’s second- and third-largest carmakers, fell 30 percent and 23 percent, and South Korea’s Hyundai Motor Co. fell 24 percent. Total U.S. sales fell 28 percent, the 20th straight monthly decline.

Recession and rising unemployment pushed down auto sales in this year’s first six months to the lowest since at least 1976, according to Bloomberg data. Still, signs of recovery and a federal rebate program to encourage people to trade in old vehicles should spark stronger demand in the second half, said analyst Jesse Toprak.

“In the last week of June there was lots of ‘wait and see attitude’ for the ‘cash for clunkers’ program,” Toprak, executive director of industry analysis for Edmunds.com in Santa Monica, California, said today in an interview. “We’re not going to see the impact of the program until the last week of July and in August.”

Under the program that starts July 24, consumers get vouchers worth as much as $4,500 if the new car they buy gets 10 miles-a-gallon better gas mileage than the model they are trading in. For light trucks, the improvement must be 5 mpg better than the older model, and for large light trucks, 2 mpg.

Edmunds.com estimates the vouchers will generate 250,000 additional sales. Automakers’ incentives rose to $2,930, up $489 from a year ago, according to Edmunds.com. Toyota cut such spending to $1,362, down from May’s $1,714, while Honda’s rose to a record $1,686, Toprak said.

Combined market share for Asian brands was 45.8 percent, down 0.4 point from a year ago, according to Autodata Corp.

Toyota

Toyota’s sales fell to 131,654 new Toyota, Lexus and Scion brand vehicles. A bright spot for the Toyota City, Japan-based company was the 10 percent increase in Prius hybrids. June was the first full month of sales for the revamped gasoline-electric car, rated by the U.S. as getting 50 mpg.

Sales of Prius are “off to a fantastic start,” Toyota U.S. Vice President Bob Carter said on a conference call yesterday.

The company’s adjusted decline of 35 percent exceeded the 32 percent average forecast for the company of three analysts surveyed by Bloomberg.

“The fact that Toyota decided to hold back on incentives seems to be why they came in a little low,” Toprak said.

While Toyota remains the second-largest automaker in the U.S. by sales volume, it fell behind Ford Motor Co. for a third straight month. Toyota’s market share was 15.3 percent for the month, down from 16.2 percent a year ago, according to Autodata.

Toyota rose 0.6 percent to 3,610 yen in Tokyo trading, and has gained 24 percent this year. Honda fell 2.3 percent to 2,585 yen and Nissan rose 1 percent to 590 yen. Hyundai Motor fell 1 percent to 72,500 won in Seoul.

Honda

Federal Reserve Bank of San Francisco President Janet Yellen said this week that the U.S. economy may be about to “turn the corner” and repeated that she expects the recession, which began in December 2007, to end later this year.

Honda sold 100,420 autos, a 32 percent decline on an adjusted basis. That beat the average estimate of a 35 percent drop by three analysts surveyed by Bloomberg.

Increased incentive spending by Honda led to higher sales of Odyssey minivans and Pilot sport-utility vehicles. The company also sold 2,079 units of its new Insight hybrid, designed as a lower-cost competitor to Prius.

Sales of Insights should pick up in July and August as a result of the “clunkers” trade-in program, Toprak said.

Honda’s market share was 11.7 percent, down 0.3 from a year ago.

Nissan, Hyundai

Tokyo-based Nissan sold 58,298 vehicles, an adjusted decline of 26 percent, compared with an average drop of 28 percent forecast by three analysts.

Declines for most of Nissan’s car and truck models were moderated by a 72 percent increase in sales of Maxima sedans and the addition of the Cube mini-wagon, which sold 2,137 units in its first full month.

“Sales still haven’t recovered in terms of sheer volume numbers, but things are stabilizing,” Al Castignetti, U.S. vice president for Nissan, said in a telephone interview.

Nissan’s market share improved by 0.4 point to 6.8 percent.

Seoul-based Hyundai, South Korea’s largest automaker, sold 37,943 vehicles. The 24 percent decline exceeded Edmunds.com’s expectation of an 18 percent slide.

The annual sales rate fell to 9.69 million cars and light trucks last month, from 9.9 million in May and 13.6 million in June 2008, Woodcliff Lake, New Jersey-based Autodata said. Analysts surveyed by Bloomberg had projected the annual pace for June would rise above 10 million for the first time this year.

The analysts’ company estimates were adjusted for one more sales day last month than in June 2008, and some automakers report results on that basis. Bloomberg uses unadjusted figures, which for June would be about 4 percentage points better than the adjusted numbers.

Toyota Camry is more American than the Ford F-150 according to Cars.com’s American-Made Index.

NOTE: THERE IS SOME FLAWED METHODOLOGY IN THIS SURVEY HOWEVER, THE POINT IS THAT ALMOST ALL CAR COMPANIES ARE MAKING CARS AND PARTS HERE. ADD IIN EMPLOYEES AT THE DEALERSHIP LEVEL AND MARKETING SPENDS AND YOU CAN SEE WHAT A HUGE ECONOMIC DRIVER AUTOMOTIVE REALLY IS.=DP

Saturday, July 4, 2009
Survey: Camry more American than F-150
Alisa Priddle / The Detroit News
The Toyota Camry is more American than the Ford F-150, at least according to Cars.com’s annual American-Made Index.

The findings further muddy the buy American debate that rages across the country.

Toyota Motor Corp. also is the most American car company, according to the rankings of the index in terms of U.S. content in its cars and trucks.

The findings are based on where each vehicle is built, its popularity based on sales volume and the percentage of the parts made in the U.S. based on the cost or value of those parts.

This year, the Camry (not counting the hybrid or the Solara) dethroned the F-150 which had been a five-time winner. The Ford truck came in at No. 2.

Toyota had the most individual models on the list with four, including the Sienna minivan in the sixth spot, followed by the Tundra full-size pickup, and the new Venza crossover at No. 10.

Detroit’s Big Three automakers collectively have five vehicles in the top 10 spots, which is their lowest showing since Cars.com started the index in 2006 and was conducted twice a year initially.

“This year was unique for our index, to say the least,” said Patrick Olsen, editor of Cars.com. “The difficult sales environment and changes in cars’ domestic-parts content — both important factors in our index’s equation — played a huge role in how the rankings changed from last year.”

The results likely won’t go over well in Detroit, said analyst Joe Phillippi of AutoTrends Consulting Inc. in Short Hills, N.J., but the more important point is that the vehicles and many of their parts are made in the U.S. and “we need all the payroll generation we can get.”

To its credit, Toyota has maintained its headcount in the U.S., Phillippi said. “There have not been wholesale firings and mass layoffs and they continue to employ a lot of people even in a downturn and their game plan is to continue to employ more.”

General Motors Corp. results were impacted because the methodology used excludes models slated to be discontinued that do not have a clear successor. That wipes out the Pontiac G6, for example, which has scored well in the past, but has fallen victim to GM downsizing. Also absent from the list this year is the Chevrolet Cobalt, which has fewer domestic parts and seen its sales fall off because it, too, is being discontinued. It will be replaced by the all-new Chevrolet Cruze next year.

GM retains three vehicles in the top 10 with the Chevrolet Malibu taking the third spot and the Chevrolet Silverado (5th) and GMC Sierra 1500 pickup (8th).

The Ford Taurus had the most domestic parts at 90 percent but landed 9th on the list, largely because the new Taurus is selling about 2,000 units a month compared with about 25,000 Camrys a month.

Chrysler Group LLC has no vehicles in the top 10. The company’s high-volume minivan is made in Canada.

Phillippi said while the results may surprise some consumers, it likely will have little impact on buying decisions and he doubts many shoppers research domestic content. “These days, price and incentives are at the top of the list given the squeeze on peoples’ budgets.”

The index provides some justification for consumers who have been loyal to imports, Phillippi said.

Jim Hall, analyst with 2953 Analytics in Birmingham, called the claims “spurious” and questioned the math given that the index uses a parts count but does not go deeper and calculate the number of labor hours to make each part — a figure that varies greatly with an engine being very labor-intensive, for example.

In terms of validity, “it’s like Michael Jackson saying he’s the King of Pop,” Hall said of the self-proclamation of the superstar and the Web site in its findings.

Internet banner ads most ignored,says Harris Interactive survey

Television Ads Considered Most Helpful to Americans
Internet banner ads most ignored
ROCHESTER, N.Y. – July 1, 2009 – One of the main purposes of advertising is to help
consumers decide what products and services they should buy or use. With so many
different types of advertising being used today the question becomes what types are
considered most helpful, that is they help people decide what products or services to
actually purchase and which ones are most likely to be ignored or disregarded?
These are some of the results of a new AdweekMedia/The Harris Poll of 2,521 adults
surveyed online by Harris Interactive between June 4 and 8, 2009.
What Ads Are Most Helpful?
Over one-third of Americans (37%) say that television ads are most helpful in making
their purchase decision while 17% say newspaper ads are most helpful and 14% say the
same about Internet search engine ads. Radio ads (3%) and Internet banner ads (1%)
are not considered helpful by many people. Over one-quarter of Americans (28%),
however, say that none of these types of advertisements are helpful to them in the
purchase decision making process.
Half of people aged 18-34 (50%) say television ads are most helpful while three in ten
(31%) of those aged 55 and older say they find newspaper ads to be most helpful.
There is also a slight regional difference. Two in five Southerners (40%) say they find
television ads most helpful, while only one-third (33%) of Midwesterners feel the same.
What Ads do People Ignore?
Almost half of Americans (46%) say they tend to ignore Internet banner ads. Much
further down the list are Internet search engine ads (17% of people ignore), television
ads (13%), radio ads (9%), and newspaper ads (6%). One in ten Americans (9%) say
they do not ignore any of these types of ads.
There are age and regional differences. Half of those aged 35-44 (50%) and 51% of
Midwesterners say they ignore Internet banner ads compared to 43% of 18-34 year olds
as well as Easterners and Southerners. One in five Americans 18-34 years old (20%)
say they ignore Internet search engine ads while 20% of those aged 55 and older say
they ignore television ads.
So What?
While advertisers scramble to create their ad campaigns, one thing they need to
remember is that, even if viewership may be down and even with the increased use of
digital video recorders so people can fast forward through commercials, television ads
are the most helpful to consumers. Also, while an Internet strategy is essential for a
comprehensive ad campaign, Internet banner ads are not considered helpful by few and
are ignored the most. People are more likely to ignore ads on their computers but are
more likely to pay attention to those on their television.

United States is currently experiencing steepest decline in driving since the invention of automobile

Shift in Driving Habits Becoming More Obvious

The United States is currently experiencing the longest and steepest decline in driving since the invention of the automobile.

Since the number of miles traveled by motor vehicles in the USA peaked in November 2007, the nation’s 12-month total has dropped by 123 billion miles, or slightly more than 4 percent. That’s a bigger decline than the drop of just above 3 percent during the 1979-80 Iranian revolution that triggered a spike in gasoline prices in the USA.

The 4 percent drop is the equivalent of taking between 8 million and 10 million drivers off the road.

“We may be witnessing the beginning of a fundamental shift in American driving habits,” says Ed McMahon, senior research fellow at the Urban Land Institute, a non-profit group that promotes innovative development.

The Federal Highway Administration’s miles-traveled report for April, the most recent available, suggests a slight flattening out. While April’s total was up 0.6 percent from April 2008, continuing rises in joblessness and gas prices are likely to limit driving, McMahon says.

AAA predicted that the number of people taking a trip of 50 miles or more during the July 4th holiday weekend would drop 1.9 percent from a year ago. The leisure travel organization attributed the projected decline to uncertainty about the economy, “especially rising joblessness and sagging personal incomes.” The recent spike in gas prices would also be a concern, AAA said.

Gas prices were the driving force behind the nation’s change in driving habits, says analyst Alan Pisarski, author of Commuting in America. “When people saw $3 a gallon, when they saw $4 a gallon, it was something akin to sticker shock. It really did have an effect on people’s behavior.” He says people started taking transit, carpooling, merging trips and cutting back on vacation travel. Many stayed with alternative modes of transportation even after gas prices retreated last year.

Bernard Assaf, 36, a software engineer from a northern Atlanta suburb, says he won’t get back in his car for the 40-mile round trip to work even if gas prices plummet. With help from The Clean Air Campaign, an Atlanta non-profit that promotes transportation alternatives, he now carpools to a satellite parking lot 7 miles from home, then takes public transit to his office. “For me, it’s not just about the price of gas,” he says. “If I put 40 miles a day on my car vs. 14 miles, that’s a big difference. I’ve gotten too used to doing things besides gripping the steering wheel to go back.”

Pisarski and McMahon say the drop in miles traveled has had a greater impact on people living in far-flung suburbs, which were hardest hit by both the housing collapse and high gas prices, and those in rural communities.

John Crabtree, spokesman for the Center for Rural Affairs, a non-profit rural advocacy and economic development group based in Lyons, Neb., says it’s “a double-edged sword” for many rural communities.

More people are shopping close to home, giving local merchants a boost. “But if you or your child need to go to the doctor, and you live 40 miles form the nearest health care provider, it makes a difference whether gas is $2 a gallon or $3 a gallon,” Crabtree says. “People are forced to make difficult choices.”

The driving drop-off also signals a reversal in auto ownership among African Americans and Hispanics, which had been increasing since 1970, Pisarski says. “That will limit access to jobs, and will be a factor in the overall economy in getting people back to work,” he says.

McMahon says his research shows that people over the past three years are trending toward compact, transit-oriented developments that mix residential, retail and office uses and encourage walking. Even when the economy recovers, he says, people won’t resume driving at previous rates.

“We’ve crossed the Rubicon here in terms of a change,” he says.

(Source: USA Today, 07/02/09)

Hyundai Expedites Benefits of Cash for Clunkers

Hyundai Expedites Benefits of Cash for Clunkers

July 06, 2009

FOUNTAIN VALLEY, Calif. — To help its dealers enjoy the potential benefits of the recently passed Car Allowance Rebate System sooner, Hyundai announced it has sped up the implementation of the program to several weeks ahead of schedule.

Basically, the automaker is backing its dealer body with short-term cash advances while the government finalizes the program’s industry-wide launch.

In fact, Hyundai commemorated the first trade-in of an eligible clunker for a new Hyundai late last week. Katherine Michon of Arlington, Va., swapped her 15 mile-per-gallon 1995 Ford Explorer with a 26 mpg Hyundai Elantra Touring at Alexandria Hyundai in Virginia.

“We appreciate what Washington has done getting the program completed, but it’s clear that the wait has left many potential car-buyers on the sidelines,” suggested John Krafcik, president and chief executive officer Hyundai Motor America.

“We thought it was imperative to get funding to our dealers so that they could implement the program right away and satisfy the demand they’ve been hearing from consumers,” he continued.

According to officials, the following Hyundai models qualify for the program:

—Accent

—Elantra

—Elantra Touring

—Entourage

—Sonata 2.4L

—Sonata 3.3L

—2010 Genesis Coupe 2.0L

—Tiburon 2.0L

—Tucson 2.0L

—Tucson 2.7L

—Santa Fe 2.7L

—Santa Fe 3.3L

—Veracruz

Ford ramps up production while rivals continue to cut

Ford ramps up production while rivals continue to cut
USA Today 07/06/09 by Chris Woodyard
Ford is putting its production muscle where its mouth is.
After trumpeting recovering sales last month, Ford Motor is now boosting third-quarter production 16% from the same quarter a year ago, Automotive News reports today. Ford hasn’t had an increase in quarterly production in the U.S. in two years.
Most other automakers are cutting production. It surpassed General Motors in the second quarter as North America’s largest producer of vehicles, but is yet to pass up GM in sales. Ford, unlike GM and Chrysler, has not filed for bankruptcy reorganization.

Clear Channel Outdoor Struggles, selling ad space at rock bottom prices to generate as much cash as possible

For Clear Channel Outdoor, the End is Nigh as Parent Struggles with $22 Bil. Debt
By Jim Edwards | July 7th, 2009 @ 1:25 pm

It might be the beginning of the end for Clear Channel Outdoor. CCO put out a statement before the long weekend saying it was “actively pursuing alternatives” regarding its debt situation. CCO owes its parent, Clear Channel Communications (confusing, yes?) $2.5 billion. It tried to borrow $3 billion three weeks ago in to pay off the note but couldn’t get a deal done.

If you think CCO has problems, look at what is happening at parent CCM — that company has $22 billion in total debt. CCM owns a majority stake in CCO, so one’s debt is the other’s. Some see a Q4 default as CCM will have trouble making payments. Now, the company’s creditors are circling like vultures. FMQB:

… the lenders who financed the private equity acquisition of the company said they would block the move because they would rather wait on it in hopes that Clear Channel violates its lending agreements. That way the lenders can take control of its assets at a discount and then sell them.

CCO is selling ad space at rock bottom prices to generate as much cash as possible, according to the AP:

Caris analyst David Miller … told clients in a note Tuesday that “our checks indicate that business has not necessarily improved” and the company has resorted to “deep-sixing” ad rates in its core business to grab a larger share of the market.

Here’s CCO’s SEC statement in full:

Clear Channel Outdoor Holdings, Inc. (“CCOH”) announced today that it is actively pursuing alternatives to address the maturity of the intercompany note payable by it to its parent company Clear Channel Communications, Inc. The alternatives may include an offering of new senior or senior subordinated notes for cash or an exchange of new senior or subordinated notes for outstanding indebtedness, with the intention of any such transaction being to refinance the intercompany note.

Cash for Clunkers- New Info : Update

Cash for Clunkers- New Info:
Process for Dealer Registration
· NHTSA will send out a dealer letter with a unique dealer code for each dealership, which will arrive by July 15.
· If dealer does not get their letter by July 20th, they should call 1-866-CAR-7891.
· Dealers will not be able to register until July 24th and they will need to provide some additional information as part of the on-line registration process including Federal Tax ID and Bank account information.
· It will take 2 – 3 business days (at a minimum) for NHTSA to confirm the dealer and officially register them.
· Dealers will not be able to start making claims under the program until their registration is complete, which is, under best case circumstances, would be July 27th.
Dealer Claiming Process
· While all the details have not been worked out, they will require the dealer to complete an online application for each customer and upload the necessary paperwork directly to the web site.
· Some of the paperwork that may be required includes buyer information, VIN’s, MPG for both the clunker and new vehicle, registration, proof of insurance, title, certificate from disposal facility, NHTSA provided Summary of Transaction worksheet, MSRP, details of all related rebates and potentially other key paperwork
· Once the dealer uploads the documents, it will be reviewed by NHTSA. Once it is reviewed, the dealer will receive confirmation and funds within 10 days of the claim. Additional details will be provided with final rules.
Proof of Insurance
· NHTSA has spoken to several major insurance companies and have asked if they would be able to provide a customer with proof that a vehicle was continuously insured over the prior 12 months, as many customers may not have 12 months of statements. The Insurance companies indicated that they would provide this to the customer on request. NHTSA recommended that customers obtain this information prior to going to the dealer, which is reflected on the CARS.GOV web site.
Other Details
· Dealers are responsible to disclose the scrap value of the trade-in to the customer. Although the exact method to do so has not been determined, it was clear that the disclosure would have to be in writing and could be included as part of NHTSA’s “deal sheet” which is under development.
· Dealers and disposal entities were advised to anticipate audits from NHTSA and should be prepared to comply with information requests, etc.
· Dealers, customers and Disposal companies will all be required to certify that that are comply with the law to be eligible.

Revenue Decline Hints at More Doom for Newspapers

Revenue Decline Hints at More Doom for Newspapers
Published on July 09, 2009

JP Morgan is forecasting that severe declines will continue at newspaper publisher Gannett in the second quarter.

Ad revenue will fall 32% in Q2, JP Morgan analysts have predicted, with consolidated EBITDA declining to a margin of 17%, compared to a margin of 25% in the second quarter of 2008, writes Editor & Publisher. Ad revenue fell 34% in the first quarter of the year.

Flagship publication USA Today will experience “severe declines,” the analysts say. They predict that Gannett’s weakness will “set the tone for another depressing reporting season in the newspaper universe.”

Gannett plans to cut between 1,000 and 2,000 positions, after having cut 10% of its work force last year, according to a source, the Wall Street Journal writes.

The cuts are not expected to affect USA Today.

In the first quarter of 2009, local newspaper ad spend declined 25.1%, while national newspaper ad revenue slipped 28.5%, according to TNS Media Intelligence.

“Cash for Clunkers” C.A.R.S. PROGRAM FAQ

Cash for Clunkers

Q. What is the Car Allowance Rebate System?

A. The Car Allowance Rebate System is a new program from the government that will help you pay for a new, more fuel efficient car or truck when you trade in a less fuel efficient car or truck.

Q. How will the program work?

A. Used vehicles with a combined fuel economy rating of 18 mpg or less may qualify for a government incentive of $3,500 or $4,500. The incentive must be used to offset the purchase price or lease price of a qualifying new vehicle. The trade-in vehicle must be less than 25 years old (Model Year 1984 and newer) from the date of the transaction. The month and year of the vehicle can be located on the frame of the driver’s door.

Q. When does the program start? And when does it end?

A. The program runs from July to November 1, 2009, unless the $1 billion appropriation runs out first. The National Highway Traffic Safety Administration (NHTSA) expects to have the program up and running by July 24. NADA will notify all dealers as program elements are rolled out by NHTSA.

Q: How do I find out the combined city/highway fuel economy rating of the trade-in vehicle?

A: Go to fueleconomy.gov’s side by side vehicle comparison and click on the model year of the vehicle, the make, and then the model. Under the words “ESTIMATED NEW EPA MPG” in the red banner, there is a red number with the word “COMBINED” under it. That is the new combined city/highway fuel economy for the vehicle.

Sources: www.nada.org and www.cars.gov

Postcards – The Twitter of Direct Mail Marketing

NOTE: SO MUCH IS BEING MADE OF SOCIAL OR NEW MEDIA TODAY THAT IT’S EASY FOR CLIENTS TO OVERLOOK THE BASICS. AT POWERHOUSE USA WE ALWAYS LIKE TAKING A FRESH LOOK AT ALL MEDIA. THIS JUST MAKES SENSE.=DP

Postcards – The Tweet of Direct Mail Marketing
Direct Mail Marketing and Twitter may have more in common than you think. If you’ve used Twitter, you know it’s limited to 140 characters. Do you know why? The postcard. As the story goes, the character limit was dreamed up by Friedhelm Hillebrand (father of modern text messaging) who came up with 160 as the “magic number” needed to convey something.1 When the deciding committee looked at Postcards and found most of the messages were around 150 characters – voila – the 160 character limit was born (Twitter keeps those extra 20 characters for usernames). Fascinating, right? So, how can you use the currently oh-so-popular Twitter logic and apply that to your Direct Mail Marketing?

Think Vacation Postcard, not Marketing Postcard
The day of the forceful “I’m selling you something” marketing is gone to be replaced by relationship-driven marketing. If you don’t care about your customers, they’re not going to care about you. Remember those vacation postcards your friends have sent you over the years? “Hey, wish you were here?”That’s the feeling a Tweet gives you and the feeling you want to replicate with mailers today.
Keep it Short and Conversational
We are so deluged with information, it is a good idea to squeeze the important aspects of your message into as few words as possible because you’ll have a better chance at getting people to read and respond. The nature of both Twitter and Postcards force you to keep things short and get right to the point. Amen.
Be Personal – Don’t Automate
Even though there are ways to automate your Twitter responses experts say that it’s best not to do that. The same goes for Postcards. Give your postcard campaigns a chatty personal feeling, use names whenever possible, and create copy that is more like talking to a friend.
Updates & Invitations
Use postcards to keep your customers updated on events, promos etc. Just like you would with Tweets. For instance, send out a “mark your calendar” postcard for important events. Twitter is a good forum for generating quick invites to your blog or site – so are postcards. Use them to generate a quick phone call or for “driving people to your Web site”.
The Postcard Tweet Me
One of the cool things about Twitter is the “you talk I listen, I talk you listen” thing – you know, a conversation. You can imitate this feeling with direct mail by sending out a mailer with a postcard the customer can return. A conversational, “Hey, what did you think of the red shirt you bought from us? Send in this card and let us know.” Then when they send the card in, respond to them by sending an email or other communication, “Thanks for letting us know how you liked the red shirt” and then invite them to follow you on your blog or Twitter.
Twitter is about people. Make your Postcards and other mailers about the people you are connecting with – not about what you want to tell them. Postcards may not be quite as instantaneous as Twitter but, you can have them in the mail tomorrow.

LEASING MAKES ITS GRAND RETURN

LEASING MAKES ITS GRAND RETURN
Are You Prepared for Ripening Market Conditions?

Interest rates are climbing. Energy costs have gotten the attention of every North American who does not live in a cave. Long term financing has put the majority of retail auto customers in an “upside down” position. The Middle East situation is volatile and unstable as a source of petroleum. The Big-3 manufacturers are sitting on a way-too heavy supply of vehicles with the new models due to hit showrooms in less than 60 days. And the import manufacturers have sky-high residual values just begging for a low monthly payment.

The year was 1986. That�s right, twenty years ago.

How quickly time flies.

As I looked around U.S. showrooms this month, I wondered how many automotive retail professionals can remember the true benefits of leasing, let alone how to properly present it. And isn�t a proper presentation with proper disclosure more important today than ever before?

“Hybrid” Trade-Cycle Technology

Back when �hybrid� meant more than an environmental alternative to a gasoline engine, I was leasing vehicles in a big way and doing it with integrity. In 1988 I was promoted to �Plan Sales Manager� at Fette Ford in Clifton, New Jersey; subsequently, we became the number one 24-month Red Carpet Lease dealership in the nation for Ford Division. We offered full disclosure of selling price (years before it was popular or mandated by federal law) and trained our sales force on the benefits of a protected residual that would insulate consumers from uncertain market conditions. We averaged 90 retail lease agreements per month and put our dealership on the map.

Two years later we were sure glad to bring those customers back � and without the negative equity.

Today, in the “new economy”, I am reminded of those lessons learned from the 80�s. My wife and I leased our new 2006 Toyota Sequoia last fall. When we took delivery in October, did we know that gasoline would reach $3.00 per gallon today? Whew!

Is Your Sales Force Trained and Prepared to Explain Leasing?

Dealers throughout North America are taking the time this summer and fall of 2006 to discover the benefits of a trained sales force. Leasing and the sales process (beginning with proper Appointments, Meet and Greet, Fact Finding and Product Presentations) spell the basics of what every dealership needs in order to be successful.

Leasing is a tool to help sell more vehicles.

If you�re not yet using it, or if your sales team has not yet been exposed to sales and lease training,find out more about in-house workshops and in-dealership training.

U.S. NEWS & WORLD REPORT : Ford Could Surpass GM

Ford Could Surpass GM
Posted: Jul. 10, 2009 10:07 a.m.

GM may be shedding its bad assets, but if Ford has its way, GM will shed something else: its title as the top-selling brand in America.

Bloomberg reports, “Ford Motor Co., gaining ground on its distressed domestic competitors, may surpass General Motors Corp. this year to become the top-selling automaker in the U.S. for the first time since 1931.”

The Street says June sales left Ford in a good position for an attack. “Ford reported its smallest sales decline in 11 months, making it the country’s No. 2 automaker in June and raising the possibility that it could move to the top spot.” According to the Street, Ford sales “fell by 11%, while Toyota sales fell 33% and sales at General Motors fell 34%.”

As the only domestic automaker that has not undergone bankruptcy, Ford is in a stronger position than Chrysler or GM. Ford has also had some successes with recent models, including the Ford Fusion hybrid, which some reviewers says is a better all-around car than the Toyota Prius. The 2010 Fusion hybrid sits at the top of our affordable midsize car rankings.

The good sales news and strong market position has caused Ford to increase production. The Associated Press reports, “Citing better-than-expected sales and traffic at dealerships, Ford Motor Co. said Monday it plans to increase third-quarter production by 25,000 units – marking the automaker’s second production hike in recent weeks.”

According to a Ford spokesman, “We had pretty well lowered production in recent quarters to meet demand,” Truby said. “Now as we’re seeing market share increases and showroom activity, we’re ramping up production to meet that demand.”

Some analysts say that demand is likely to rise in the coming weeks as consumers seek to take advantage of the government’s Cash for Clunkers program.

If you’re in the market for a new car — even if it’s not a Ford — check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.

‘Cash for guzzlers’ wins over U.S. drivers, dealers

NOTE: OUR CLIENTS ARE ALREADY FEELING A SURGE IN INTEREST. SOME DEALERS HAVE GOTTEN OUT AHEAD OF THE PROGRAM OR CREATED THEIR OWN; OTHERS ARE WAITING FOR THE OFFICIAL LAUNCH ON JULY 24. = DP

‘Cash for guzzlers’ wins over U.S. drivers, dealers

July 9, 2009 – 12:00 pm ET

PHOENIX (Reuters) — Having driven the equivalent of six smoke-belching laps of the planet, Tony Metzler figured his aging Chevrolet Blazer SUV would not make a good trade for a new car. Until now that is.

With a $1 billion federal “Cash for Guzzlers” program that pays consumers $3,500 or $4,500 in credit to swap aging gas-guzzlers for new, more fuel efficient models, he made the plunge.

“It ended up being right place, right time for me,” said Metzler, 42, who traded his eight-year-old sport utility vehicle for a new Chevrolet Equinox this week. “It seemed like a good opportunity.”

The program signed into law by President Barack Obama in June offers a trade-in credit of up to $4,500 to owners of cars built since 1984, with fuel economy of 18 miles per gallon or less.

It also applies to SUV, vans and pickup trucks. Participating dealers assess the discount, apply it to the new vehicle, and then obtain reimbursement from the government. Details of eligibility are available at www.cars.gov.

Metzler, a Phoenix-valley insurance executive, had racked up 150,000 miles in his old SUV that averaged 17 miles per gallon. He got a $3,500-credit toward his new car, which gets a slender 3 mpg improvement.

The program, which backers hope will arrest the auto industry’s slide and sell 250,000 new vehicles this year, runs through November 1 or until funds are exhausted. It has been broadly welcomed by auto dealers across the country.

“It’s a wonderful program. It helps out the environment, it helps out the customer, and it gives a jump to the automobile industry when it needs it the most,” said Scott Gruwell, sales director of Courtesy Chevrolet, the Phoenix-based GM dealership that sold Metzler his Equinox.

Cliff Johnson, president of Texas Motors Ford, agreed.

“Are we excited about it? Absolutely! We think it is a great opportunity for people to get rid of their clunkers,” said Johnson, whose dealership in Fort Worth has about 250 vehicles on its parking lot.

Some dealers felt it also fostered environmental consciousness among consumers.

“It is very unique in the way it’s positioned. The buyer becomes very environmentally sensitive and responsible,” said Bobby Cavender, a partner with the Cavender Auto Group in San Antonio, Texas.

The program, which could be extended by lawmakers, is the latest of a variety of enticements offered to car buyers in the downturn.

A federal plan in March allows buyers to deduct state and local sales taxes in their 2009 tax returns, while automakers themselves offer a plethora of cash-back and cut-rate financing deals. Taken together, they stack up, analysts say.

“If you need a car, or are close to needing a car … This is shaping up to be a good time to do it,” said Phil Reed, senior consumer advice editor at Edmunds.com.

Dealers in limbo

The program is similar to a car-scrapping subsidy adopted by German authorities earlier in the year.

To safeguard against fraud, U.S. authorities have warned consumers not to give financial details to third parties touting the program on the Internet.

Individuals taking part also need to provide proof of identity as part of the transaction — to prevent repeated use by the same person — while the clunkers themselves are crushed or shredded to prevent resale.

The law nominally came into effect July 1, although final details setting out the full government rules will be published around July 24.

While some participating dealers have pushed ahead and clinched their first sales — trusting that they will be reimbursed by the government later — others say they are reluctant to close deals until all details are finalized.

“We really don’t have the forms, we don’t have anything set up from the government until the end of July … So that’s where we’re at, kind of in limbo,” said Mike Szatmary, a manager at Bredemann Toyota in Park Ridge, Ill.

In Fort Worth, Johnson said uncertainty over final rules meant that they had not started giving credits for clunkers — which must be continuously insured and registered to the same owner for a full year to qualify.

“We’ve had a few people calling about it, but all we do is take their name and phone number… We just need all the details so that we can rock and roll,” he said.

Despite the early confusion, dealers say the program would likely help their profitability once it is fully up and running.

“We’re anticipating that … we’ll get up to 15 to 20 percent increase in total volume, which will help out the overall dealership going forward,” said Gruwell, who has signs splashed across his sun-scorched lot promoting the program.

At Bob Smith Toyota in suburban Los Angeles, veteran sales manager Mark Near is more cautious. He points out that not all clunker owners interested in the program will necessarily qualify for a loan, although simply getting potential customers through the door is a plus in itself in difficult times.

“It’s more than just actual car sales. You get them in, even if they don’t qualify, things will be happening,” Near said. “It will create something that’s not happening now.”

THE POWER OF TWITTER

Experts: Twitter is the Game-Changer
By David Weir | July 16th, 2009 @ 10:51 pm

Pasadena, CA. Earlier today, during a meeting in Silicon Valley, I spoke with two exceptionally talented executives, both of whom have had long, successful careers with tech/media companies big and small, and both of whom have been extremely active online since the earliest days of the web.

One is an expert in technology, whose innovations have affected users the world over; the other, a leader in communications, with a A List of contacts in and out of the biggest and coolest companies inside the Valley and beyond. I’m sorry I cannot name them here, but suffice it to say they was an education of the highest order for your simple Bnet Industries blogger just to be present.

The conversation quickly turned to Twitter and whether it was a passing fad or here to stay.

“Twitter is exactly what the Internet was around 1996,” said the first man. “It represents nothing less than the New Internet. It is the game-changer.”

“It is growing exponentially, just as the Internet did after Tim Berners-Lee invented the web,” said the second. “And its growth is global in scope, which will prove to be significant.”

“What will come next,” said the first, “will be that all the things we saw in the mid-’90s. They need to be re-invented for Twitter. Search and all other functionalities have to be developed to sit on top of Twitter, just as they once had to be invented to sit on top of the web browser.”

“There needs to be a Yahoo for Twitter, i.e., the organization of all historical knowledge, the master index, the portal,” noted the second.

“Yes!” said the first emphatically, “and in fact, these tools are already coming. There are at least 7,000, maybe many more APIs, running on top of Twitter. Thousands of entrepreneurs are trying to build the ‘killer app.’ Some will succeed, most will fail.”

“The next Xbox 360 will have Twitter,” noted the second. “This will begin to bring in the younger generation, who so far have not adopted Twitter — but they will.”

Then, he paused for a moment, considering what the proper analogy would be for this precise moment in the develop of social media. “You know, it was really the hypertext link that defined the emergence of the web as a superior platform for interactive communication. And there is already an equivalent on Twitter — the hash tag. When you think about it, the @ symbol came to define the Internet in the 90s; today the # symbol defines the emergence of social media. It’s funny, two simply keys on any keyboard and they carry so much importance for all of us, and for the future.”

The conversation went on, turning to Microsoft’s inclusion of Tweets on Bing, and Google’s coming “Wave,” and the need for a certain convergence between Wikipedia and Twitter. But this is as much of the conversation as I feel comfortable divulging at this point, since there were several proprietary issues that then came to the fore.

I’ve had similar conversations with dozens of people the past few months, but rarely with anyone I respect more than these two. Every day, of course, I also hear from skeptics, who dismiss Twitter as just the latest in a long series of shooting stars.

My own instincts were to classify Twitter that way until earlier this year, when I began to notice the astonishing power of real-time information. Since I blog from a business perspective, part of my skepticism was also based in Twitter’s lack of any recognizable business model.

The best evidence suggests that over the next few months Twitter’s elusive business model will in fact emerge. And it appears to be potentially an extremely lucrative one. But now, if you wll excuse me, I’ve got to get back to my Twitter feed…

Lead generation to vehicle purchase: What’s The Weakest Link?

The Weakest Link

The path leading from ‘searching for a vehicle’ to ‘purchasing a vehicle’ involves many information transactions. The buyer often starts by searching online, looks at vehicle detail pages, initiates contact with some sellers (by phone or email), corresponds a few times to narrow down the field, schedules appointments with some subset of the sellers with whom they corresponded, and finally purchases one of the vehicles.

Links in the chain
From an industry standpoint, the path that follows is like a chain: The generator, the lead itself, the dealership, and the staff member working the lead are all links in that chain. There are strong and weak lead providers who produce strong and weak leads; there are strong and weak dealerships that employ strong and weak staff. By the time leads have run the gauntlet of links from lead generation to vehicle purchase, they have had several opportunities to hit a weak link. As long as the links in the chain stay strong, the lead progresses toward a sale; as soon as there is a bad link, the lead is most likely dead. If it goes really poorly with the staff member link, you not only lose this sale but probably also lose the opportunity for service business or future vehicle sales with this lead. The point is that the chain is only as strong as the weakest link and your success with each lead hinges on having a strong chain.

Taking control
As a dealer, you have little control over how a lead is generated; however, you do have some control over how your existing and potential customers are treated by your staff, which determines, in the minds of consumers, whether or not you are a good or bad dealership. You also have control over the staff you employ and their training. This is link in the chain that you must focus on, if you want to get more out of your leads.

The dilemma
The salespeople working the leads have made no investment and are therefore less inclined to really work every lead. Often, the staff will take only a single pass or not work leads at all and just blame the lack of success on lead quality. I suggest a new model for your consideration: Let your staff invest in the leads! Have them buy the leads themselves or share in the cost with you and provide a performance-based way for them to earn their investment back. If your staff is invested in the leads they work, they will be much more likely to work those leads until they buy or die, which will produce an immediate, profound change in your lead closing ratio.

Keep making sales
Yes, sales are down, way down. However, people are still searching for cars, buying cars, and selling cars. Traffic, searches, and private party listings have held relatively steady throughout the economic downturn. Of course, there wass a slight drop in all three areas, it was not nearly proportional to the drop in sales at dealerships. Sales are out there but in the current economic climate staff must work harder to get them: Don’t let a staff member be the weakest link in your chain.

NOTE: POWERHOUSE USA HELPS CLIENTS GENERATE QUALIFIED LEADS THROUGH VARIOUS SOURCES INCLUDING THE INTERNET. BY USING DEALER WEBSITES, THIRD PARTY WEBSITES, CUSTOM LANDING PAGES, MICROSITES, GOOGLE ADWORDS, YAHOO!, MICROSOFT BING!,VARIOUS OTHER SEARCH ENGINES, SEARCH ENGINE MARKETING, SEARCH ENGINE OPTIMIZATION, VIDEO ADS, TEXT ADS, YOU TUBE AND THE LIKE. POWERHOUSE USA IS A FULL SERVICE MARKETING ADVERTISING, PROMOTIONS, SPECIAL EVENTS AND INTERNET ADVERTISING COMPANY LOCATED IN ORLANDO, FLORIDA THAT PROVIDES CREATIVE BUSINESS SOLUTIONS TO COMPANIES OF ALL TYPES. FOR MORE INFORMATION VISIT WWW.POWERHOUSEUS.COM

Six Tips for Dealers Looking to Capitalize on Cash-for-Clunkers

Six Tips for Dealers Looking to Capitalize on Cash-for-Clunkers
By Cliff Banks
WardsAuto.com, Jul 16, 2009 9:28 AM

Although the government’s Car Allowance Rebate System (CARS) – also known as “cash-for-clunkers” – is generating a lot of interest among consumers, dealers have questions about how the incentive will help them sell more cars.

Some queries won’t be answered until the National Highway Traffic Safety Admin. publishes the final rules July 24, detailing how cash-for-clunkers is to be administered.

Congress has stipulated the program to begin July 1, but the National Automobile Dealers Assn. and NHTSA are advising dealers not to sell vehicles using cash-for-clunkers until the final rules are released on the program’s official website.

Dealers are waiting for letters from NHTSA informing them how to register to become an official cash-for-clunkers retailer. NHTSA will have to certify more than 19,000 dealerships for the program, leaving some experts wondering whether the July 24 date is feasible.

Auto makers have sent their dealer lists to NHTSA to help the agency better determine whether an applying store actually is a franchised new-car dealership ‒ the only dealerships eligible to participate in cash-for-clunkers.

Several dealers already are selling vehicles through the program. Others are implementing aggressive marketing plans while also making sure store processes are in place to manage potential cash-for-clunker customers.

Early evidence indicates consumers are interested in the government incentive. Auto maker websites report cash-for-clunkers is generating hundreds of thousands of hits and inquiries. Dealers that do nothing risk missing out on significant traffic, while annoying consumers who have questions about the program.

Congress allotted $1 billion for cash-for-clunkers. The incentive ends on Nov. 1 or whenever the money runs out. Some experts believe the federal funding will be depleted fairly quickly.

Legislations calls for clunkers to be scrapped.
Paragon Honda and Acura in Queens, NY, says it already has received more than a 1,000 leads because of the incentive.

The question for dealers is how to capitalize on cash-for-clunkers.

Ward’s has put together a guide based on numerous conversations with dealers, consultants and marketers who already are making the program work for them.

Prepare the store.

Make sure your entire staff, including receptionists, service advisors, technicians, new- and used-sales staff, understand the basic parameters of the program so they can answer questions.

Dealerships should develop a set process to move customers whose trad- ins are not eligible for cash-for-clunkers into other sales. The worst thing a dealer can do is say “no” and send a potential customer to another store.

Paragon Honda divided its staff into two teams that competed for prizes in a mock game show which asked questions about the program.

The dealership also directed its advertising partner, Tier 10 Marketing, to create placemats with details of cash-for-clunkers for each sales person’s desk. “It’s an easy reference guide for our salespeople,” says Brian Benstock, co-owner of Paragon Honda.

The basic eligibility guidelines are as follows: The government incentive plan provides $3,500 for consumers scrapping used vehicles rated at 18 mpg (13 L/100 km) for new cars that achieve 4-9 mpg more (10.6-8.7 L/100 km), or $4,500 for new cars gaining at least 10 mpg (8.4 L/100 km).

Customers will receive $3,500 for scrapped light trucks rated at 18 mpg (13 L/100 km) or less when the new truck gains 2-4 mpg (11.7-10.6 L/100 km), and $4,500 for a 5 mpg (10.2 L/100 km) higher improvement.

Replacement vehicles must cost less than $45,000, while trade-ins must be 25 years old or less, registered under one owner and insured continuously for the full year preceding the trade-in.

Start advertising.

Sean Wolfington, a partner in Tier 10 Marketing, suggests dealers develop an integrated advertising strategy, using online search, banner ads, email, direct mail, print, radio and TV. The ads should contain a consistent message and position the dealership as the place consumers go if they want the government incentive.

“Don’t forget to remind consumers that if they don’t qualify for the government’s program they might be able to qualify for the manufacturer and dealer incentives,” Wolfington says.

Ralph Ebersole, director-automotive consulting and dealership training for Cars.Com, advises dealers to train their service staff to identify potential cash-for-clunker vehicles that are in their store for service. “It could be an easy way to flip them into a sale,” he says.

Ebersole also suggests salespeople scout private-party listings on sites such as Cars.com, AutoTrader.com and eBay Autos for older vehicles offered at or below $4,500. “These owners may appreciate a quicker-than-expected sale and be in the market for a new car,” he says.

Dealers should consider buying lists from R. L. Polk and Co. or Experian Automotive of people who own potential cash-for-clunker vehicles, Ebersole and Wolfington both say.

Get the right inventory.

This is one area many dealers may overlook, but it could be critical to the store’s overall success with cash-for-clunkers. Ideal inventory includes smaller vehicles that have higher gas mileage, are less expensive and more likely to be financed for consumers classified as non-prime.

Several auto maker websites already include vehicle-reference guides pointing consumers to new vehicles that likely qualify.

Benstock says Paragon has placed orders for 120 Accord LXs and 240 Civic LXs to be delivered over the next 90 days to make sure he has the right inventory in stock.

Establish a process for the paperwork for scrapped vehicles.

“The key to this process will be managing the paperwork and following the required steps NHTSA releases on July 24,” Wolfington urges. “We know dealers will have to prove the vehicle was salvaged with some type of documentation before they can obtain the money from the government.”

People who have been on weekly conference calls with NHTSA officials to help develop the rules say the agency is focused on eliminating any potential loop holes dealers might exploit. So establishing a strict in-store process for keeping track of the paperwork is critical.

Develop a process to manage customer paperwork.

Wolfington suggests dealers establish a written process for managers and sales people to make sure they obtain the necessary documentation proving a customer’s eligibility.

“NHTSA is bound by to do its best to deliver electronic payments within 10 days of the documentation being submitted in full,” he says. “The key to managing the receivables will be in managing the documentation required to approve a consumer’s application for the rebate. Let customers know before they come to the dealership what paperwork they need to bring.”

Dealers should include this information in email correspondence with customers and on their websites in addition to informing customers on the phone when setting up an appointment.

Wolfington also suggests dealers have consumers sign a legal document acknowledging they received the credit towards the purchase and were educated about all manufacturer rebates and incentives. Dealers also should document when a customer opts out of the program and decides to take the trade allowance instead.

Work with your finance companies.

Several captive finance firms and banks tell Ward’s they will not adjust their lending guidelines for cash-for-clunkers.

Lending institutions ultimately may determine the success of the program. It’s probable most potential customers driving clunkers are doing so because they can’t qualify for new-vehicle loans.

Larry Bruce, vice president of Reynolds and Reynolds, a dealership-services vendor, advises dealers to be proactive and not wait for lenders to reject loan applications.

“Get with your captive lender – and establish two back-up lenders – to develop ground rules you agree to follow that might make the firms feel more comfortable working with you to extend their financing a little deeper,” he says.

It is true there are legitimate questions about whether cash-for-clunkers ultimately will generate the number of sales the government and industry are hoping for. But dealers can’t afford to sit on the sidelines on this one.

Dealers that are aggressive, careful and smart stand to steal significant market share and also enhance their brand while selling more cars and increasing their service business.

MORE GOOD NEWS: Existing home sales show signs of recovery

Existing home sales show signs of recovery

By ALAN ZIBEL, AP Real Estate Writer Alan Zibel, Ap Real Estate Writer – 53 mins ago
WASHINGTON – The U.S. housing market is finally on the mend after its most far-reaching collapse in 70 years. That could help rebuild consumer confidence and revive the economy.

For the first time in five years, sales of previously occupied homes rose for the third consecutive month in June, while foreclosure sales and the glut of homes on the market both declined.

The figures, released Thursday by the National Association of Realtors, and a string of rosy corporate earnings reports sparked a rally on Wall Street as the Dow Jones industrials rose above 9,000 for the first time since January.

“People believe that the worst is behind us,” said Julie Longtin, a real estate agent with Re/Max Professionals in Providence, R.I., an area that has suffered deeply from record foreclosures of risky loans.

Sales also have risen for three straight months in 40 out of 55 major metropolitan areas tracked by the Associated Press-Re/Max Housing Report, also released Thursday. Prices rose during that period in about half of those areas.

Still, unlike past recessions, the turnaround in the real estate sector is likely to have a muted effect overall. That’s largely because homebuilders are expected to keep bulldozers idle as long as they face competition from bargain-priced foreclosures. And it’s likely to take at least another year before job losses and foreclosures peak.

The Labor Department said Thursday the number of newly laid-off workers seeking jobless benefits rose 30,000 to a seasonally adjusted 554,000 last week, though the government said its report again was distorted by the timing of auto plant shutdowns.

Unemployment insurance claims have declined steadily since the spring, but most private economists and the Federal Reserve expect jobs to remain scarce and the unemployment rate to top 10 percent by year-end.

“We’re not going to see much growth in (home) sales until the labor market turns around,” said Patrick Newport, an economist with IHS Global Insight. “People don’t move as much when they can’t find work.”

But companies should start hiring as their fortunes improve — and there were some early signs Thursday that’s starting to happen.

Ford Motor Co. surprised investors with a profit of $2.3 billion, due mainly to a huge gain for debt reduction, while manufacturing conglomerate 3M Co. and candy maker Hershey Co. raised their profit forecasts for the year.

The Dow Jones industrial average, the stock market’s best-known indicator, shot up almost 190 points Thursday to 9,069.29, its highest level since November, and all the big indexes gained more than 2 percent.

Analysts said signs that housing market is finally, gradually turning around could help spur demand as buyers become less fearful of losing their shirts.

“It’s been the abject pessimism about house prices that has placed a pall over the housing market,” said Mark Zandi, chief economist at Moody’s Economy.com. “As that psychology reverses itself, things start to work in the opposite direction.”

Home sales rose 3.6 percent to a seasonally adjusted annual rate of 4.89 million last month, from a downwardly revised pace of 4.72 million in May. Sales are now around the same level as before last fall’s financial crisis.

Foreclosures, however, continue to put pressure on home prices. About one out of three homes sold in June was foreclosure-related, down from nearly half earlier this year.

And despite some buyers’ optimism, some still see potential problems ahead. A tax credit of up to $8,000 for first-time homebuyers expires Nov. 30. Mortgage rates are up from record lows reached last spring, and companies are still shedding jobs.

The nationwide median sales price was $181,800 in June, down 15 percent from year-ago levels but up slightly from $174,700 in May. And an Associated Press analysis shows the shows that the gap is narrowing between the sellers’ asking price and the final sales price, indicating homeowners have finally accepted that their homes are worth far less today.

Jim Dugan, a 53-year-old plumber, is looking for foreclosures and other low-priced properties in Providence. He wants to buy eight investment properties this year and is slated to close on a small bungalow next week for $62,500.

The property was originally listed for $85,000. But Dugan was able to snare a deal because he didn’t need a mortgage, instead tapping a line of credit and his savings.

“Cash talks,” he said.

Investor activity is helping to pare the number of homes on the market. Nationwide there are about 3.8 million, or a 9.4-month supply at the current sales pace. When the market balances at a 7-month supply, prices should begin to stabilize.

A healthy housing market is characterized by prices that rise a relatively modest 4 to 5 percent every year. But this year’s sales prices are still far lower than last year.

Those low prices combined with mortgage rates around 5 percent and a tax credit for first-time homebuyers have made homeownership more affordable than it’s been in decades.

“We are seeing contracts like crazy,” said Valerie Huffman, a vice president of Weichert Realtors, in Montgomery County, Md., where home sales are up by 42 percent over last year. “We’re having multiple bids on anything that’s priced well.”

UPDATE: Cash-for-clunkers auto eligibility list changed

Cash-for-clunkers auto eligibility list changed

By Chris Woodyard, USA TODAY
As it prepared for its “cash-for-clunkers” program, the government rejiggered gas mileage figures on about 100 older vehicles last week in a way that changed whether they would be eligible for up to $4,500 in sales inducements.
The Environmental Protection Agency says the changes resulted from a double-check of its fuel-efficiency ratings on more than 30,000 1984 and newer vehicles in advance of the official start of the clunkers program Monday.
About half the 100 suddenly did not qualify because their combined mileage rating was revised upward; others unexpectedly got in.

“As a result of the review, roughly an equal number of vehicles became eligible as those found to be not eligible,” said the EPA in a statement. “Eligibility for about 100 vehicles was affected.”

FIND MORE STORIES IN: Edmunds.com
Car-shopping website Edmunds.com said Monday that it discovered the switcheroo because potential buyers were complaining on its discussion boards.

Some said it made them ineligible at the last minute for car deals they already had on deck.

“We had everything lined up. We had a couple car dealers that had verified our car qualified, and we were ready to purchase a new car this weekend,” wrote one potential buyer, identified on the site as John1152. “But it will not happen now because at the last second the EPA updated the information at their web page for a 1993 Toyota Camry wagon … from 18 mpg to 19 mpg.”

Karl Brauer, editor in chief of Edmunds.com, said, “It’s unfortunate that consumers who had been researching and planning to trade in their vehicle … are now left in the dust.”

To qualify for the $1 billion program aimed at spurring auto sales and driving gas guzzlers off the road, the clunker must have an EPA city-highway “combined” rating of 18 miles per gallon or lower.

Buyers then get a $3,500 incentive if the new car gets 4 to 9 mpg more or $4,500 for 10 mpg or more. The new car also must itself have a minimum 22 mpg combined rating. The program ends Nov. 1, or when the $1 billion runs out.

EPA gave no reason its ratings were inaccurate or why some went up. For the 2008 model year, EPA started revising mileage figures, typically downward, to better reflect real-world driving. For example, a Toyota Prius that had been rated 60 mpg in city driving fell 20% to 48 mpg.

Here’s a list of the 78 vehicles that EPA just declared ineligible for ‘Cash for Clunkers’

As USA TODAY reported today, the Environmental Protection Agency quietly revised its mileage estimate list just before the start of the “Cash for Clunkers” program that gives car owners incentives up to $4,500 for trading their junker for a high-mileage new car. A bunch of cars got knocked out of the program as a result. Another bunch suddenly became eligible .

Here are the 78 vehicles that EPA just bounced from the eligible list:
1 1987 Alfa Romeo GTV
2 1987 Alfa Romeo Milano
3 1987 BMW 5 Series
4 1987 Chevrolet S10 Blazer 2WD
5 1987 Dodge Caravan/Grand Caravan/Ram Van 2WD
6 1987 Dodge Shadow
7 1987 Ford Aerostar Van
8 1987 Ford LTD Crown Victoria
9 1987 Ford LTD Crown Victoria Wagon
10 1987 GMC S15 Jimmy 2WD
11 1987 Lincoln Continental
12 1987 Lincoln Mark VII
13 1987 Lincoln Town Car
14 1987 Mercury Grand Marquis
15 1987 Mercury Grand Marquis Wagon
16 1987 Plymouth Sundance
17 1987 Plymouth Voyager/Grand Voyager 2WD
18 1987 Plymouth Voyager/Grand Voyager 2WD
19 1987 Porsche 944
20 1987 Toyota Truck 4WD
21 1988 Mazda 929
22 1988 Peugeot 505 Sedan
23 1988 Peugeot 505 Sedan
24 1988 Toyota 4Runner 4WD
25 1989 Mazda 929
26 1989 Peugeot 505 Sedan
27 1989 Porsche 911 Carrera
28 1990 Audi 80 Quattro
29 1990 Dodge Caravan/Grand Caravan/Ram Van 2WD
30 1990 Plymouth Voyager/Grand Voyager 2WD
31 1990 Saab 9000
32 1990 Toyota 1-Ton Truck 2WD
33 1990 Toyota Truck 2WD
34 1991 Audi 80 Quattro
35 1991 Dodge Caravan/Grand Caravan 2WD
36 1991 Dodge Ram 50 Pickup 2WD
37 1991 Lexus ES 250
38 1991 Mitsubishi Truck 2WD
39 1991 Plymouth Voyager/Grand Voyager 2WD
40 1991 Toyota Camry
41 1991 Toyota Camry Wagon
42 1992 Acura NSX
43 1992 Dodge Caravan/Grand Caravan 2WD
44 1992 Dodge Ram 50 Pickup 2WD
45 1992 Jeep Cherokee 4WD
46 1992 Jeep Comanche Pickup 4WD
47 1992 Mitsubishi Truck 2WD
48 1992 Plymouth Voyager/Grand Voyager 2WD
49 1992 Saab 900
50 1992 Saab 900
51 1993 Dodge Ram 50 Pickup 2WD
52 1993 Dodge Stealth
53 1993 Jeep Comanche Pickup 2WD
54 1993 Mitsubishi 3000 GT
55 1993 Mitsubishi Truck 2WD
56 1993 Toyota Camry
57 1993 Toyota Camry Wagon
58 1994 Mazda B2300/B3000/B4000 Pickup 2WD
59 1994 Mazda MPV
60 1994 Mitsubishi Diamante Wagon
61 1994 Volkswagen Corrado SLC
62 1995 Kia Sportage 2WD
63 1995 Mazda MPV
64 1995 Toyota Tacoma 2WD
65 1996 Jeep Cherokee 2WD
66 1996 Nissan Truck 2WD
67 1996 Toyota Supra
68 1996 Volkswagen Jetta GLX
69 1997 Chrysler Concorde
70 1997 Chrysler New Yorker/LHS
71 1997 Dodge Intrepid
72 1997 Eagle Vision
73 1997 Kia Sportage 4WD
74 1997 Mercedes-Benz C36 AMG
75 1997 Nissan Truck 2WD
76 1997 Toyota Supra
77 1997 Toyota T100 2WD
78 1997 Volkswagen Jetta GLX

Guzzlers’ funds will run out before Nov. 1, NADA says

image
CASH FOR GUZZLERS PROGRAM
‘Guzzlers’ funds will run out before Nov. 1, NADA says
Feds working to make sure all dealers are reimbursee

Chrissie Thompson and Neil Roland

The cash-for-guzzlers program will run out of its $1 billion funding “well before” its Nov. 1 expiration date, a spokesman for the National Automobile Dealers Association said today, after the government said dealers have already applied for 10 percent of the funds.
“Accordingly, NADA is currently working with (the National Highway Traffic Safety Administration) to ensure that every dealer is reimbursed by NHTSA for a valid deal and that the wind-down to this program is fair and orderly,” NADA spokesman Bailey Wood said in an e-mail.
As of 4 p.m. Wednesday, dealers had submitted 22,782 deals worth $95.9 million in reimbursements, NHTSA said today in a statement.
That’s an average of $4,209.26 per deal, indicating that a majority of sales include $4,500 vouchers. Dealers filed $27 million worth of requests during the workday Wednesday, compared with $51.9 million filed during the previous 24 hours. The system for filing applications is now in its sixth day.
The cash-for-guzzlers program has a $1 billion budget to pay dealers back for giving consumers $3,500 to $4,500 for trading in some gas-guzzling vehicles for new ones with better fuel efficiency. As much as $50 million of that budget can go toward NHTSA’s administration costs.
The $95.9 million is the amount of money dealers have requested for reimbursement, NHTSA spokesman Rae Tyson said today. His statement was a clarification of a previous statement that the money was the amount approved for dealer payouts. Tyson said he did not know how long it would take for dealers to receive their payments. The government’s www.cars.gov Web site says it will take about 10 days for voucher money to appear in dealers’ accounts after each request gets approved.
Tyson said he wouldn’t “make any prediction” about when the funding will run out.

Government suspends ‘cash for clunkers’ program

Government suspends ‘cash for clunkers’ program
|

By James R. Healey and Chris Woodyard, USA TODAY

“We’re in a full-court press trying to get more cash for ‘cash-for-clunkers’,” Miller told USA TODAY Thursday night — pointing out she wanted $4 billion for the program, not the $1 billion that was appropriated.

Wood said dealers were amazed at how many shoppers visited their showrooms this week. The program has been in effect since July 1, but the details were finalized only a week ago.

The $1 billion was to provide rebates of $3,500 or $4,500 for people who traded in older cars rated 18 miles per gallon or less for new ones rated 22 mpg or more. The old cars are scrapped.

Dealers loved the extra sales, but some were already getting cold feet about the deals because of the difficulty in processing them.

One dealer was going to suspend anyway. Another says he’s having to haul clunkers back to his lot that he already shipped to the junkyard just to disable them. Others say deals are being held up by red tape.

But rules governing the program totaled 135 pages. They required dealers to register and many started off the week just trying to get answers on a government-jammed website. The rules are “very confusing,” says Pete Greiner, who has a Ford dealership that bears his name in Casper, Wyo. “The administration of the program is extremely tough.”

Some dealers said demand has been so brisk, they feared the program could go broke in days or weeks.

One Honda and General Motors dealer in Fort Worth says he has 50 clunker deals that were being held up by paperwork. “We’re going back to our second and third round with customers to have things signed,” said Will Churchill, owner of Frank Kent Motor. “They keep coming up with new forms to sign,” Churchill said.

Now the dealership is in a Catch-22 situation: he must destroy the engines of clunker trade-ins to be eligible for the program. But if the paperwork falls through, he could be stuck with junked, rather than still running, cars.

As a result, Churchill says he is thinking of holding up more clunker deals.

In the Queens borough of New York, Paragon Honda has its own problem. It already hauled away nearly 60 clunkers to a junkyard before it found the rules require them to be disabled on the auto lot. Now they have to be brought back, have their engines destroyed and hauled back.

“Killing cars is not something that I’m used to doing,” says Brian Benstock, the dealership’s general manager.

C.A.R.S. UPDATE: House adjourns Friday, unlikely Congress will act until after Labor Day

David Shepardson / Detroit News Washington Bureau
WashingtonThe Transportation Department is preparing to suspend the $1 billion “Cash for Clunkers” program at midnight, industry officials and congressional aides said Thursday.

Bailey Wood, a spokesman for the National Automobile Dealers Association, said the group believes the program would be suspended at the end of Thursday.

“This is the responsible thing to do,” said Wood, who believed that all deals consummated by the end of today would be honored by the program.

Transportation Secretary Ray LaHood called key members of Congress to notify them that the government’s program to stimulate car and truck sales was being tapped out — less than one week after it kicked off. Officials were holding meetings looking for ways to continue the program, but that was unlikely.

Rep. Candice Miller, R-Harrison Township, who called on congressional leaders Wednesday to boost funding, called for emergency action.

“There can be no doubt that the Cash for Clunkers program is a complete success given the fact that the entire $1 billion allocated to the program was expended in less than a week. This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn. The federal government must come up with more money, immediately, to keep this program going,” Miller said.

“Whether we look at returned TARP funds or reprogram stimulus funds to a truly stimulative purpose, the administration must take action,” she said.

A spokesman for House Speaker Nancy Pelosi, said she would study the results before deciding whether to seek more funds. But the House is set to adjourn Friday, making it unlikely Congress will be able to act before they return from recess after Labor Day.

The Michigan congressional delegation held an emergency call on the news at 7 p.m. and planned a meeting Friday morning to look at ways to try to extend the program.

The National Highway Traffic Safety Administration, which administers the program, had estimated about 250,000 vehicles would qualify for buyer incentives of up to $4,500. The program, intended to boost sales and convince Americans to trade in old vehicles for more fuel-efficient models, was set to last until Nov. 1 — or until the money was spent.

Proponents originally sought $4 billion, but settled for $1 billion when Congress approved it in June.
General Motors Co. spokesman Greg Martin urged Congress to try to find a way to extend the program.
“Any doubt that the CARS program would jumpstart auto sales is completely erased. The line between cost and benefit usually doesn’t get much clearer in these types of programs,” Martin said. “In this case, more than 200,000 cleaner, more fuel-efficient cars are on the road and a vital industry gets a needed boost. We hope there’s a will and way to keep the CARS program going a little bit longer.”

MORE GOOD NEWS FOR FORD:

Inside autos: Vehicle demand lifts Ford shares

 

FREE PRESS STAFF AND NEWS SERVICES • AUGUST 2, 2009

Vehicle demand lifts Ford shares

 Shares of Ford Motor Co. soared Friday as investors expressed enthusiasm for increased vehicle demand under the cash-for-clunkers program, which Congress is rushing to expand. 

 

Dearborn-based Ford’s shares jumped 61 cents, or 8.3%, to close at $8. That’s a 52-week high for the stock. It has traded as low as $1.01 over the past year.

Ford shares have risen 10% this week, following the company’s surprise second-quarter profit and a sale of three-year unsecured notes by its financing arm, Ford Motor Credit.

“Despite being in the middle of a challenging environment, our underlying business is getting progressively stronger, as we launch new cars and trucks that customers want and value while continuing to aggressively restructure our operations,” said Ford spokesman Bill Collins.

Higher demand for new cars sparked by the government-backed trade-in program is boosting July auto sales, and investors believe Ford will gain a fair share of those sales as the company has recently refreshed many vehicles in its product line.

U.S. auto sales may jump in July

U.S. auto sales may reach a 2009 high in July after the government’s $1-billion cash-for-clunkers incentives program lured shoppers back to showrooms.

Industrywide deliveries will run at a seasonally adjusted annual rate of 10.1 million cars and light trucks, based on seven analysts surveyed by Bloomberg. Sales will fall 24% at General Motors Co., 33% at Chrysler Group LLC and 6.1% at Ford Motor Co., according to six estimates.

A sales rate matching the analysts’ projections may signal a possible bottom to the worst slump in demand since at least 1976. Buyers drained most of the initial clunkers funding in less than a week, spurring the U.S. House to approve an emergency measure Friday to add $2 billion more.

“The incentives coupled with already high car company discounts have put a new automobile within reach of consumers that would have shopped for a used vehicle,” said Joe Barker, an analyst at consultant CSM Worldwide Inc. in Northville.

Automakers report July sales on Monday. The results will likely show the industry had its 21st consecutive month of declines. A 10.1 million annual rate would be 19% less than a year earlier.

Big Three take 47 percent of ‘Cash for Clunkers’ sales; Ford Focus top-seller

Big Three take 47 percent of ‘Cash for Clunkers’ sales; Ford Focus top-seller

David Shepardson / Detroit News Washington Bureau

Washington — Detroit’s automakers accounted for 47 percent of the first 80,000 “Cash for Clunkers” sales, the Obama administration said today, and the Ford Focus is the top-selling vehicle in the program.

Through Saturday afternoon, the National Highway Traffic Safety Administration has processed 80,500 transactions, the White House said.

White House spokesman Robert Gibbs said buyers should be able to take advantage of the program until Friday, but he warned it would likely have to shut down before next weekend if the Senate doesn’t agree to add $2 billion to the original $1 billion pot.

On Friday, the House approved the $2 billion increase. The Senate is expected to vote Wednesday or Thursday; the White House is pressing it to act.

Transportation Secretary Ray LaHood told MSNBC that the program has been a “lifeline to the economy.”

NHTSA said about 250,000 vehicles will be able to take part in the $1 billion program.

General Motors Co., Ford Motor Co. and Chrysler Group LLC sales account for 47 percent in the program, which is above their overall share in the auto market of about 45 percent of the three Detroit companies.

The Ford Focus is the top-selling vehicle in the program. Four of the top 10-selling vehicles are manufactured by Detroit’s Big Three. Of non-Big Three purchases, the Transportation Department’s preliminary analysis suggests that more than half of these new vehicles were manufactured in the United States.

Gibbs said the program has been a “big benefit to domestic automakers.”

The transactions are generating a 61 percent increase in vehicle fuel economy, Gibbs said. The average fuel economy of new vehicles purchased under the CARS program is 25.4 miles per gallon, and the average fuel economy of trade-ins is 15.8 mpg, for an average increase in fuel economy of 9.6 mpg.

This is well above the law’s minimum requirements of a 2 mpg improvement for trucks and a 4 mpg improvement for cars. Gibbs said it will save an average consumer $700 to $1,000 in gas.

Gibbs said the $2 billion should allow the program to continue through September.

Supporters and the White House will use the numbers and the job-creating impact of the “Cash for Clunkers” program to ease environmental concerns of many Senate Democrats who thought the program’s efficiency requirements should be tightened.

The improvement in fuel efficiency will save a typical consumer between $700 and $1,000 per year in reduced gas costs, Gibbs said. In addition to the money saved from fewer gas purchases, consumers participating in the program will have safer cars, fewer repair costs and dramatic reductions in air pollution, officials said.

Thus far, 83 percent of trade-ins under the program are trucks, and 60 percent of new vehicle purchases are cars.

Average Trade-In Mileage & Unemployment Rates – Jan. 2008 To June 2009

Edmunds.com tracked correlation between trade-ins and unemployment

Clunkers Jump-Start U.S. Auto Sales in July

By Jim HenryAugust 4th, 2009 @ 11:27 am

U.S. auto sales were 997,824 in July, 12.2 percent below the year-ago month, according to AutoData Corp. That’s a big improvement over year-to-date auto sales, which were down 32.1 percent to about 5.8 million.

Moreover, the Seasonally Adjusted Annual Rate for U.S. auto sales was 11.24 million in July, the first month this year that the SAAR topped 10 million.

Ford sales were up 1.6 percent to 158,354, the first time this year Ford managed to top the year-ago month. Ford said its Focus small car got a big boost from the CARS program. Ford Focus sales gained 43.6 percent for the month, to 21,830.

Besides Ford, HyundaiKiaMercurySubaru and Volkswagen had higher sales in July than the year-ago month. U.S. sales were up 34.2 percent for Subaru in July.

Ford said that consumers trading in an older V-8 for a four-cylinder Focus could save $1,000 per year on gasoline.

“What’s the consumer going to do with that $1,000?  It’s the gift that keeps on giving,” said George Pipas, U.S. sales analysis manager for Ford.

“They could save it – and that’s not bad, improving the household balance sheet – or they can spend it, and that’s going to have a good effect on the economy,” Pipas said.

Moving the metal is something the U.S. auto industry has been failing at all year long, despite cheaper gasoline, near-record incentives, and a somewhat improved picture for auto financing.

Pipas said consumers haven’t gotten over last year’s spike in gas prices, even thoughprices came down since then.

“Does anybody think consumers have forgotten what happened with gas prices last year? You know what they did last week (by trading in gas-guzzlers)? They took out insurance. They said, ‘I’m going to be ready for next time gas goes to $3, or $4, or whatever,’ ” Pipas said

CASH FOR CLUNKERS: Used Vehicles Also See a Rise in Demand



The “Cash for Clunkers” program designed by the government to stimulate new-car purchases is also boosting sales of used vehicles — even though they don’t qualify for the federal subsidies.

“We just didn’t see this coming,” said Don Metzner, who sells Chrysler, Jeep and Nissan brands at his Armory Automotive dealerships in Albany, N.Y. “We sold more than 80 used cars in July when we usually sell 60, and we expect to sell more than 100 used cars in August.”

The cash-for-clunkers program offers as much as $4,500 to consumers who trade in old cars or trucks and drive off in new, more fuel-efficient vehicles. The $1 billion Congress approved for the program was used up after just one week, and auto makers reported a significant jump in new-vehicle sales in July.

Many in the industry had expected that government-financed deals on new cars would dent demand for used vehicles, but dealers offering both new and used autos say the opposite has happened. The steady demand is helping keep prices firm, a boon to dealers and auto makers that have been struggling in recent months.

“Cash-for-clunkers would normally be depressing on used vehicles; however, we are not seeing that yet,” said Tom Webb, an economist for Manheim Consulting, which produces a used-car-price index. “Prices have been increasing, and we expect to see that again in August.”

Auto dealers say many consumers who go into a showroom and find that their current vehicle doesn’t qualify for the program decide to go ahead with a purchase anyway, often choosing used vehicles.

Mr. Metzner saw that last week. A customer came in with a 1995 Buick looking for a clunker deal, but didn’t qualify because he had missed an insurance payment, Mr. Metzner recalled in a telephone interview. Instead of keeping his Buick, the customer got a 2007 Jeep Compass with 30,000 miles on it, Mr. Metzner said.

“On May 1, a 2007 domestic pickup truck was worth $14,127; on Aug. 1 it was worth $14,710,” said Ricky Beggs, vice president and managing editor of Black Book, which tracks vehicle values. “Last year, wholesale auctions couldn’t get rid of vehicles. Now they can’t get enough.”

One factor drawing consumers to used vehicles is the tight supply of new vehicles. General Motors Co., Chrysler Group LLC and Ford Motor Co. all say their inventory levels are at historic lows.

“Prices on used cars are getting too close to new-car prices,” said John Markovski, who sells used cars at Fairlane Ford in Dearborn, Mich. “You also have people who are used to paying $300 to $400 a month and driving a high-end vehicle like an Explorer. They can’t do that anymore, so there’s more demand for used vehicles,” he said.

(Source: The Wall Street Journal, 08/04/09)

‘Clunkers’ Drive Car Sales, Especially At Ford

‘Clunkers’ Drive Car Sales, Especially At Ford
Karl Greenberg, Aug 03, 2009 04:07 PM
FordWith the Obama administration hoping to kick-start the Car Allowance Rebate System (CARS), which needs a cash refill, automakers are pointing at July sales to extol the program’s virtues. Depending on one’s point of view, it was either wildly successful or woefully underfunded — as the program, slated to run through October or until cash ran out, lasted only days.

Ford seems to have gotten the biggest boost from the program, at least among domestics. It says its retail sales of Ford, Lincoln and Mercury vehicles were up last month 9% versus a year ago. That would make the gain Ford’s first year-over-year increase since November 2007.

Sales of Ford vehicles that qualify for CARS were up sharply: Ford Fusion saw a 66% increase; Mercury Milan a 60% increase, and sales of Ford Escape jumped 94% versus the month last year. Sales of the Mercury Mariner were up 71%, Ford Focus sales rose 44%, and the automaker said its sales of hybrid vehicles jumped 323% last month versus July 2008. The hybrid version of the Ford Fusion is also now Consumer Reports‘ top-rated domestic sedan, tied with the Toyota Camry Hybrid.

The company says 1 million consumers visited www.LetFordRecycleYourRide.com. The only other company that seems to have done as well on a percentage basis was Hyundai, which posted a 21% increase over last month and a 12% increase compared with July 2008 in U.S. sales.

General Motors, which said it has cut 6,000 workers from its payrolls through its Special Attrition Program, reported a 19% drop versus the month last year — but noted the decrease reflected reduced fleet sales and that comparison was against a strong July last year, anyway. Retail sales were down 9%, while fleet sales declined 47%. Retail sales, however, were up 12,000 units versus last month.

“Our performance is being driven by the outstanding products in our core Chevrolet, GMC, Cadillac and Buick brands,” said Mark LaNeve, VP, U.S. sales, in a release. He said GM sales are tracking ahead of what the company had projected. “In July, we are projecting our retail market share to exceed our year-ago performance. We anticipate an additional sales lift in August if Congress approves more funding for the wildly popular ‘Cash for Clunkers’ economic recovery program.”

Chrysler Group reported sales down 9% versus the month last year. That was a single-digit decline for a company that had been wallowing in tsunami-sized troughs of minus 50% and greater. Total sales were up 30% versus the previous month. The automaker also reported record July sales for Jeep Patriot, up 134%; Dodge Caliber sales, up 63%; and Chrysler PT Cruiser sales up 24% versus the previous year. The company has also announced that it will continue production of the PT Cruiser.

Peter Fong, president and CEO of Chrysler brand and chief of Chrysler LLC’s sales organization, was hopeful. “While we don’t expect the industry sales forecast to change dramatically, we are seeing encouraging signs that consumer confidence is building, and more consumers are considering purchasing a new vehicle,” he said in a company release.

Toyota, which launched an ad program late last month to promote its vehicles under the CARS program, said July sales hit a new monthly high for the year. Still, the automaker said sales were off 11.4% from last July. The company, which characterized sales improvements from CARS this month as incremental, said July saw a 27.7% improvement over June.

The Toyota division posted a 10.8% drop from the same period last year, while the Lexus division reported a 16.5% decrease from the year-ago month. Honda had its highest-volume month so far this year; although sales were off 17.3% compared to July 2008 results. But last July’s stratosphere-high gasoline prices sent sales of Civic and Fit through the roof.

Honda Civic sales actually increased 3.1% to 30,037. Honda CR-V, a bestseller in the crossover utility vehicle segment, increased sales by 9.9% to 19,151. The Honda division posted July sales of 106,028, a decline of 15.8% compared to last year’s aggressive pace. The automaker’s Acura division posted July 2009 sales of 8,662, a decrease of 32.5% compared to last year’s July sales.

Senate passes cash for clunkers extension, Funding expected to last through Labor Day weekend

CASH FOR CLUNKERS CHAOS
Senate passes cash for clunkers extension 60-37
Funding expected to last through Labor Day weekend
Neil Roland
WASHINGTON — The Senate added $2 billion to “cash for clunkers,” ending a week of suspense about whether the popular new program would have to shut down for lack of funds.
The bill, identical to the one that passed the House last week, now goes to President Barack Obama for his signature. The administration has pushed hard for the new funding.
Tonight’s 60-37 vote is a victory for the auto industry, Democrats and consumers who have unexpectedly flocked to near-empty showrooms since the program began July 1.
“This has been a highly successful program, probably the most successful of any in the stimulus package to date,” Sen. Carl Levin, D-Mich., said on the Senate floor today.
The new funding will extend the temporary program through Labor Day and spur about 500,000 new auto sales on top of the 250,000 already completed, Transportation Secretary Ray LaHood has said.
LaHood warned last week that the program would have to be suspended because its $1 billion fund would be depleted by Aug. 2.
The House reacted within 24 hours of that warning by passing the extension.
In passing the same legislation today, the Senate acted a day before its month-long recess begins.
The Senate rejected amendments from six Republicans and one Democrat that would have delayed new funding for at least a month and likely resulted in a suspension of the program.

2010 Ford Taurus Gets Hi-Tech Campaign to Match Car

 

PRnewswire.com – July 31, 2009

2010 Ford Taurus advertising campaign debuts Aug 4
5 demonstration Webisodes target discerning consumers
Promotes high-tech, focus on technology, innovation and style
Compares technology features and quality against more expensive luxury sedans
Including Audi, Lexus, Acura and Infiniti
2010 Ford Taurus offers unprecedented technology and innovation for segment
Entry-level price of $25,995
EcoBoost twin-turbocharged, direct-injection engine
Ford exclusives such as MyKey, SYNC offered
Also Multi-Contour Seats w/ Active Motion and Blind Spot Information System
“The convenience and ability to offer customers additional information at the touch of their mobile device speaks volumes on how technologically advanced the new Taurus is. This high-tech marketing process will showcase the attention to detail that customers shopping for Taurus will appreciate.” — Matt VanDyke, marketing director, Ford 

Live the customer’s life

Customer-Centric Design: Got Empathy? Matthew E. May (How to Change the World) Aug 10, 2009 – We all know what our customers want. We’re confident that we understand the problem. We look at reams of marketing reports. We conduct the focus groups. We survey them. We have plenty of data. Guess what? It’s not enough. Data can only indicate facts. If we fail to descend into the field and take the long walk in the customer’s boots, if we don’t bother to look over their shoulder while they struggle with the problem, and if we take the customer’s word at face value, we can’t legitimately call our design strategy “customer centric.” Rarely do customers know what they need. So rarely can they tell you. So rarely does a great innovation come from arms-length market research. The solution? Learn to see. Live the customer’s life. Watch the problem in the context and environment within which it occurs. View it from every conceivable angle like a good artist does when attempting to “render the truth.” If you don’t, you’ll fail to properly frame the problem. You’ll fail to empathize with your customers. There goes deep understanding. There goes innovation with impact. The phrase in Japanese is genchi genbutsu (gen-chee-gen-boot-soo): go and see. Fully grasp the situation. See for yourself. Then, and only then, define the problem and design the appropriate solution. You have to play police detective and FBI profiler all at once. To do that, you need a deep dip in the customer or user experience. It’s a lot harder than it sounds, but there are at least three ways to gain real insight into the problem. And in today’s marketplace, all three are necessary. Observe—watch the customer. Designers at Whirlpool know that customers can’t always articulate the problem that needs solving, so they study their products as they’re used in the home. In a usability session involving a new refrigerator design, three separate cameras captured the difficulties in finding and replacing the water filter. Stop-action and slow-motion review of customer movement lead designers to the solution. Not only do Whirlpool designers watch and video-record the action in the kitchen, but they accompany technicians on service calls to gain insight into quality and dependability. Infiltrate—become the customer. When Harley-Davidson sales dropped in the mid-1980s, CEO Vaughn Beals directed his senior management team to attend biker rallies and go on all the big Harley rides. Vice president of design Willie Davidson, grandson of the founder, saw that every Harley had been customized. He took the modification ideas and adapted them to future designs—sculpting gas tanks, chopping the chassis, adding chrome, and painting flames. Collaborate—involve the customer. Intuit’s “Follow Me Home” program allows software designers to sit with the first-time user in his or her home or office. Designers learn what other programs reside on the person’s hard drive, how navigation between those various applications works or doesn’t work, and what paper and electronic sources of data the user pulls from to input into Intuit’s software. But they don’t stop there. They “co-create” and ask the user to essentially play designer. Incorporating many of the resulting customer ideas and configuration suggestions leads to the development of various targeted versions of financial software. Simple as it sounds, the best designs often come from just getting out more.

Auto dealers boost media buys to promote “Cash for Clunkers” jump-starts radio

Top News

“Cash for Clunkers” jump-starts radio.

Auto dealers rushing to boost their media buys to promote the federal program has largely been good for radio according to several executives who’ve sounded off on the program over the past few weeks.  Regardless of the political debate, Regent CEO Bill Stakelin says, “We’re selling lots of automotive advertising.”

CBS CEO Les Moonves agrees cash for clunkers was a “real shot in the arm” for national and local media outlets.  “It really helped,” he says, telling investors it should motivate other categories. “It gives you great encouragement that when they see some light at the end of the tunnel, which they are beginning to do, the money is going to start coming in.”

 

Others are more cautious.  Entercom CEO David Field says there is “some level of pickup” in auto spending, but he’s reluctant to connect it to the “Cash for Clunkers” program.

Insanely Great Marketing

Insanely Great Marketing

by Chris Morrison

Apple is famous for its products, but shrewd marketing has been an essential component of the company’s success. Former Apple CEO John Sculley was not being entirely cynical with his famous observation that Apple was, first and foremost, a marketing company. While it’s fair to say that Apple’s engineers are the company’s foundation, it’s clear that without Apple’s marketing and public relations teams, its mythic aura would long since have vanished. Here’s how the company does it.

1. A Clear Sense of the Customer

Apple has positioned itself as the tech provider for the creative class, so it often injects a dose of avant-garde savvy into its advertising. The iPod’s boldly colored ads, for example, could have doubled as art school projects (or acid trips). Other spots simply articulate and emphasize the investment Apple has put into its design “language” — the engineering and styling that make its products so instantly recognizable. In almost every instance, Apple strives to appeal to anyone who lives (or aspires to live) a more creative life, and the results flatter both Apple’s products and the people who use them.

2. No False Modesty

Apple is not afraid to market its devices as game changers that are far better than the alternatives. Nobody would ever call Apple shy or self-effacing. That does wonders to reinforce Apple’s brand, but it has a risky downside: Apple’s barely concealed undercurrent of arrogance makes its fans feel like part of a special group, but it also repels some potential customers.

3. Standout Advertising

Whether you prefer a Mac or Windows PC, an iPhone or a Blackberry, there’s no denying that Apple has become one of the world’s most recognized brands, and Apple’s advertising and marketing efforts have done much to make that happen. Apple’s traditional advertising campaigns have been managed by the same ad agency, TBWA/Chiat/Day, since 1997. Ambitious, nonconformist, and witty, Apple’s campaigns do more than just feature products: They also take explicit potshots at key competitors. The “I’m a Mac” ad campaign, for example, which contrasts a cool hipster (representing Apple) with an uptight office drone (representing Microsoft) was typically effective. Of course, the depiction of Microsoft as a bumbling, Dilbertesque suit recalls the powerful message of a much earlier ad campaign: the famous “1984” spot that Apple ran in 1983 to mark the launch of the original Macintosh, which characterized IBM as the agent of dystopian corporate conformity.

4. Not-Too-Public Public Relations

Apple’s PR department, which maintains contacts with traditional journalists, bloggers, television shows, and just about anyone who covers the company regularly, has never fit the stereotype of fawning, eager-to-please flacks. “The genius of Apple’s PR is the way the company uses secrecy and misdirection to generate buzz around its product announcements,” says Nick Ciarelli, the creator of Think Secret, a now-defunct Apple blog that aroused the company’s ire. The launch of an Apple product resembles nothing so much as a military assault: months of impenetrable secrecy and denial, misdirection campaigns, waves of rumors, and finally a massive barrage of publicity as the veil comes off. “It’s a strategy that infuriates partners, big corporate buyers, and the press, but it allows public speculation to build to a fever pitch,” Ciarelli says.

It’s also fair to say, however, that secrecy and misdirection can be carried too far. Apple’s PR attempted to pass off Jobs’ recent serious illness, which ended in a liver transplant, as a “common bug,” a whopper that helped provoke shareholder lawsuits against the company.

Lawmakers Seek ‘Clunker’ Vouchers for Out-of-Stock Cars

NOTE: MANY DEALERS ARE NOW SHORT ON INVENTORY AND IT’S AFFECTING SALES, MARKETING AND OPERATIONS. THIS CHANGE COULD REALLY HELP KEEP THE MOMENTUM GOING!=DP

Lawmakers Seek ‘Clunker’ Vouchers for Out-of-Stock Cars

The Wall Street Journal
08/12/09 by Josh Mitchell
WASHINGTON — The Obama administration is reviewing a congressional request to allow consumers to use “cash for clunkers” vouchers toward future vehicle purchases as a way to cope with dwindling supplies of many popular, fuel-efficient clunker replacements.
Customers trading in older cars under the program are getting vouchers worth $3,500 or $4,500, depending on the fuel-economy standards of the trade-in, to buy a new car. But if a buyer wants a particular model or color that isn’t in stock, the voucher can’t be used.
Under the change requested by Reps. Candice Miller and Fred Upton, Michigan Republicans, the voucher could be redeemed even if the dealer has to order the new car from the manufacturer. In that case, the trade-in transaction wouldn’t be completed until the new car arrives.
The lawmakers requested the change amid concern that lean stocks of cars and trucks could slow sales and damp the program’s impact.
The Department of Transportation is reviewing the proposal, an administration official said Tuesday. The official declined to comment further.
The requested change comes as dealers intensify pressure on auto makers to ramp up production to respond to higher-than-expected consumer demand in the program.
“The inventories of some auto makers and dealers have been so depleted that the program’s extension may be limited in its effectiveness,” the lawmakers said in a letter to Transportation Secretary Ray LaHood.
So far, most major U.S. auto makers have proposed relatively modest production increases following the jump in demand. Auto makers are wary of ordering significant additional production because after the latest $2 billion in federal clunkers money is gone, the market could cool down.
Still, some vehicles popular with consumers using the clunkers program are in tight supply. Ford Motor Co. dealers had just 21 days’ worth of the Ford Escape compact crossover utility vehicle on hand as of July 31 — about one-third the level industry executives used to consider ideal.
Allowing vouchers to be reserved for new orders of vehicles “will allow consumers to purchase the vehicle they want, even if it is not present on the dealer’s lot,” the letter states.
Through early Tuesday, dealers had requested reimbursement for 292,447 vouchers issued under the clunkers program totaling about $1.23 billion.

“Cash for Clunkers” Customers Still Researching, Buying Pickups, SUVs

“Cash for Clunkers” Customers Still Researching, Buying Pickups, SUVs

The government’s “Cash for Clunkers” campaign may have been designed to get consumers to trade in gas guzzlers for small, fuel-efficient cars, but many car shoppers are showing interest in trucks despite the feds’ promotion. And according to some analysis of the numbers, they’re buying them as well.

Based on data collected from more than 12 million shoppers across Jumpstart Automotive Media’s websites — which include J.D. Power, Road & Track and Car Soup — the Ford F-Series and General Motors’ Chevrolet Silverado pickup trucks were among the brands consumers searched for most in June and July. Not only were the two truck brands among the top 10 vehicles researched during the week the government program was launched, they both showed significant growth compared with the same week in June (29 percent and 24 percent, respectively) as well as compared with the average traffic over the previous four weeks (16 percent and 13 percent, respectively).

SUVs such as the Honda CRV and Ford Escape were also standouts amid the Clunkers promotion, with a 47 percent increased variance in unique users compared with the last week of June.

Jumpstart’s research is in line with an analysis done by auto site Edmunds.com last week, which also found the Chevy Silverado and the Ford F-150 among the 10 top-selling vehicles and ranked the Ford Escape SUV as the best-selling model.

Uncle Sam’s top sellers
Interestingly, the government’s list of top-10 vehicles sold showed that consumers bought mostly compact cars during the promotion, with the Toyota Corolla in the No. 1 slot. The discrepancy arises because Uncle Sam considers each of the six versions of the Escape (as well as different versions of the trucks) to be a separate model, while Edmunds tallied all Escape-model sales.

Jumpstart’s site data show that sedans were highly searched during the week, especially the Honda Accord, Toyota Camry, Nissan Altima, Ford Taurus, and Chevy Malibu and Impala.

So what’s all this mean? For one thing, that Uncle Sam’s hard sell so far hasn’t been working on everyone.

“The government is trying to push consumers towards smaller, fuel-efficient vehicles, but some consumers still want trucks and SUVs,” said Joe Kyriakoza, VP-strategic insights at Jumpstart, which is owned by Hachette Filipacchi Media. “I think consumers have become accustomed to having the size of vehicle that suits them and not getting forced into something smaller.”

It may also indicate that the government did a poor job explaining the aims of the federal program. “(The Jumpstart analysis) leads me to believe that…consumers were unclear about the Cash for Clunkers program and the point of it being a fuel-efficiency program,” Mr. Kyriakoza said.

Then again, the government included trucks and SUVs in the program.

Brands on both lists
Only four brands made both the top Cash for Clunkers sellers list and Jumpstart’s list of most-researched vehicles: the Toyota Corolla (No. 1 seller, No. 9 researched); the Honda Civic (No. 3 seller, No. 3 researched), the Toyota Camry (No. 5 seller, No. 6 researched); and the Ford Escape (No. 6 seller, No. 4 researched).

While the biggest states — California, Texas, New York — were responsible for the highest proportion of consumers researching cars during the week the promotion launched, it was Illinois and Rhode Island that saw the most significant lift in online traffic the week the Clunkers program began vs. the average over the previous four weeks (29.2 percent and 29.0 percent, respectively).

Mr. Kyriakoza, like other experts in the auto sector, said he wonders whether the upticks in car sales and interest in buying cars are merely temporary. “The biggest question is how much is this going to sustain a trend the rest of the year. My guess is this is probably just a blip, and not a long-lasting one.”

(Source: AdAge.com, 08/11/09)

U.S. allows clunker rebates on factory orders after dealer complaints

 

U.S. allows clunker rebates on factory orders after dealer complaints
Chrissie Thompson
The U.S. government has agreed to allow dealers to submit cash-for-clunkers transactions for vehicles ordered from factories instead of just those purchased at a dealership.
That decision came today from the National Highway Traffic Safety Administration in response to dealers’ complaints about dwindling inventory on lots. The news came amid reports that the agency has rejected about 80 percent of cash-for-clunkers transactions.
Dealers who want to file deals for an ordered vehicle must first obtain the new car’s vehicle identification number from a manufacturer, NHTSA said in a statement. Reimbursement requests still must have all required documents for the trade-in vehicle.
The announcement came a day after a NHTSA conference call with dealer group leaders. During the call, NHTSA officials said the government is rejecting four out of every five deals made under the incentive, according to three dealer group heads who listened.

Kia, Hyundai, Jeep Show Increased Share of Market Interest as Honda, Saturn, BMW Decline

Kia, Hyundai, Jeep Show Increased Share of Market Interest as Honda, Saturn, BMW Decline
     

 
‘Core’ Domestic Brands Continue to Show Consumer Interest Strength

 

 

 

 

IRVINE, Calif., Aug. 13 /PRNewswire/ — Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, today announces the results of the latest analysis by Kelley Blue Book Market Intelligence of recent kbb.com Web traffic patterns, including the top five upward-climbing and downward-declining brands in share of market interest for July 2009 when compared to July 2008.

 

    Top Five Upward Climbers            Top Five Downward Decliners
    1.  Ford                            1.  Honda
    2.  Chevrolet                       2.  Saturn
    3.  Kia                             3.  BMW
    4.  Hyundai                         4.  Pontiac
    5.  Jeep                            5.  Nissan

 

 

While Ford and Chevrolet have led share of market interest year-over-year for the past three months, newcomers to the list Kia and Hyundai saw a significant increase in share of market interest in July 2009 when compared to July 2008. Kia saw a jump due to the popularity of its all-new Soul and the introduction of its all-new Forte, and Hyundai due to its heavy promotion of the Genesis coupe and sedan. Jeep also entered into the top five ‘upward climbers’ list for July 2009 with traffic primarily reaching the fuel-efficient Patriot small SUV, which is garnering more attention now due to recent heavy incentives and its eligibility for new-car purchase under the federal Cash for Clunkers program.

 

In July 2009, as other domestic manufacturers were coming out of bankruptcy and dealer closings, Ford traffic saw the largest year-over-year share of market interest increase compared to July 2008. A leading contributor to Ford’s climb was the Fusion, which saw a 180 percent increase in year-over-year interest from July 2008 to July 2009, likely due to the introduction and heavy promotion of Ford’s 2010 Fusion and Fusion Hybrid models.

 

Brands affected by the negative economic news actually saw increases in share of market interest in July 2009 compared with the prior year. The second-highest upward climber of year-over-year share of market interest on kbb.com was Chevrolet. Despite GM’s bankruptcy and dealer closings, the Chevrolet brand’s share of market interest surged ahead in July 2009, based largely on strong consumer interest in the new 2010 Camaro as well as the heavily-marketed Equinox and Traverse crossovers.

 

Two exceptions to the domestic surge are Saturn and Pontiac, whose decline is largely attributable to General Motors’ decision to sell Saturn and terminate the Pontiac brand as part of its massive government-assisted reorganization. GM’s original communications sent a signal to consumers that the Saturn brand might cease to exist, which has eroded its market share since that announcement was made. While GM subsequently has announced that Saturn Corporation will be acquired by the Penske Automotive Group, this has not, as of yet, reestablished interest levels in that brand.

 

BMW is a newcomer to the top five ‘downward decliners’ list for July 2009, due to the fact that the luxury-car market has not fared as well with the current economic problems in 2009 when compared to one year ago. Even with more affordable entry-level models like the 1-Series and 3-Series, consumers still perceive BMW as a luxury brand and are simply not shopping for luxury vehicles as much this year. Luxury brands also have suffered as shoppers are drawn to more affordable vehicles that qualify for the Cash for Clunkers program.

 

Likely reasoning behind July share declines in Honda and Nissan was their uncommonly high interest in July 2008. At that time with a rapid run-up in fuel prices, consumers took a decided turn toward more fuel-efficient vehicles, boosting the share of audience for both small-car and primarily sedan-oriented brands, including those with heavy hybrid representation. Now, with fuel prices down from their peaks of nearly $5-a-gallon last year, the shares of both brands are at more ‘typical’ levels.

 

“Ford, Chevrolet and Jeep increasing their year-over-year share of market interest certainly brings good news to the domestic manufacturers, and the Korean manufacturers have a lot to be proud of with the increased interest in Kia and Hyundai,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “However, domestic brands in flux such as Saturn and Pontiac, luxury brands like BMW and fuel-efficiency-focused Japanese brands like Honda and Nissan are simply victims of the changing times. A lot has happened to the U.S. economy in the past year, and the mindset of the American car shopper has changed along with it.”

 

The information contained in this press release is from Kelley Blue Book Market Watch Web site traffic data from kbb.com from July 2008 – July 2009.

Clunkers: Dealers get ready for the ‘hangover

EDMUNDS PREDICTS: In the days and weeks after Cash for Clunkers ends, sales will drop sharply.

NEW YORK (CNNMoney.com) — After the mad rush of car sales sparked by Cash for Clunkers, dealers will now find they have plenty of downtime to count their money.

The popular program, which ends Monday, will leave many showrooms without cars to sell or customers looking to buy them.

“We’re definitely going to have a hangover,” said Ron Tonkin, owner of the Ron Tonkin Family of dealerships in Portland, Oregon and vice chairman of the National Automobile Dealership Association.

As of Monday morning, dealers had submitted 625,000 Clunkers applications to the government seeking a total of $2.58 billion, according to the Department of Transportation.

After the heady rush of Clunkers sales, the return to normal — especially in a market where “normal” means deeply depressed — may be difficult to deal with.

“I think you’re going to be able to shoot a cannon through here and not hurt anybody,” Tonkin said.

In the short run, dealers will see sales drop precipitously, said Jeremy Anwyl, CEO of the auto Web site Edmunds.com.

“I think we’re going to see a decline of about 40% in the immediate aftermath,” he said.

That would take sales down to where they were in May, lower than they were in the month or two just before the program started.

Much of the decline will be because dealers don’t have many cars left to sell and, as a result, prices are high.

“This is the first time in years that if someone came and said they were thinking about buying a car, I would tell them to wait,” Anwyl said.

Before this, with dealers eager to unload unsold cars, car buyers were paying very low prices for cars, in many cases far below the so-called dealer cost of the car.

Dealers have been having a hard time lately finding cars even for their Clunker buyers to take.

“I am low on everything,” said Caroll Smith, president of Monument Chevrolet of Pasadena, Texas.

Many buyers have been forced to take cars with colors and options they didn’t really want, Smith and other dealers said.

Is a brighter day dawning? Automakers have been restarting factories and adding extra shifts to build more cars to refill depleted dealers inventories.

Many analysts were expecting a gradual recovery in auto sales beginning this summer, even before the Cash for Clunkers plan was announced. Those expectations remain.

“Improved consumer confidence and credit availability during the past six months have combined with the CARS program to lift industry sales out of their slumping year-to-date levels, which have been down approximately 35% year-over-year,” said Gary Dilts, senior vice president of global automotive operations at J.D. Power and Associates, in a statement.

J.D. Power had been forecasting a late-year lift in sales and still predicts that now.

“Reduced inventories will likely hold back some of this momentum, but the automakers are moving quickly to ramp up production and rebuild stock,” Dilts said.

AutoNation, the country’s largest auto dealership chain, also predicts a gradual recovery in sales and thinks the Clunkers program will help boost that recovery.

“We really think that this is just going to help the gradual recovery we’re going to have in the second half of the year,” said AutoNation spokesman Mark Cannon.

Beyond the Monday night closing time, the program has still left consumers with the sense that “it’s OK to buy a car now,” Cannon said.

“The main question now is ‘How fast can everybody restock their inventories?’” he said.

Once that happens, Anwyl of Edmunds.com said he expects car prices to fall quickly. Automakers will need to start adding incentives again to get people to buy all those newly minted cars. Anwyl expects incentives of about $3,000 on average.

“I would wait until probably November,” Anwyl said

First Published: August 24, 2009: 1:05 PM ET

‘Clunkers’ drives 690,000 new car sales

Wednesday, August 26, 2009, 1:22pm EDT

The so-called “Cash for Clunkers” program has come to an end, with more than 690,000 clunkers traded in and $2.88 billion in rebate applications submitted by the deadline, according to the U.S. Department of Transportation. Congress approved $3 billion to run the program.

Eighty-four percent of consumers traded in trucks and 59 percent purchased passenger cars. The average fuel economy of the vehicles traded in was 15.8 mpg and the average fuel economy of vehicles purchased is 24.9 mpg – a 58 percent improvement, according to the DOT.

Cars made in America topped the most-purchased list, from the Ford Focus to the Toyota Corolla to the Honda Civic.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” said U.S. Transportation Secretary Ray LaHood. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.”

LaHood said the program is expected to boost economic growth in the third quarter of 2009 by 0.3 to 0.4 percentage points at an annual rate because of increased auto sales in July and August. The program will also sustain the increase in gross domestic product in the fourth quarter because of increased auto production to replace depleted inventories, and create or save 42,000 jobs in the second half of 2009.

Ford and General Motors recently announced production increases for both the third and fourth quarters as a result of the demand generated by the program. Honda also said it will be increasing production at its U.S. plants in East Liberty and Marysville, Ohio and in Lincoln, Ala.

According to the DOT, the CARS (Car Allowance Rebate System) program resulted in the sales of 690,114 new cars sold. The top 10 vehicles purchased were:

  1. Toyota Corolla
  2. Honda Civic
  3. Toyota Camry
  4. Ford Focus FWD
  5. Hyundai Elantra
  6. Nissan Versa
  7. Toyota Prius
  8. Honda Accord
  9. Honda Fit
  10. Ford Escape FWD

The top 10 trade-ins were:

  1. Ford Explorer 4WD
  2. Ford F150 Pickup 2WD
  3. Jeep Grand Cherokee 4WD
  4. Ford Explorer 2WD
  5. Dodge Caravan/Grand Caravan 2WD
  6. Jeep Cherokee 4WD
  7. Chevrolet Blazer 4WD
  8. Chevrolet C1500 Pickup 2WD
  9. Ford F150 Pickup 4WD
  10. Ford Windstar FWD Van

Luxury Cars and Trucks – Is it all about Customer Loyalty and Leasing?

Luxury Cars and Trucks – Is it all about Customer Loyalty and Leasing?

Thursday, July 30, 2009

There’s been a lot of talk and media attention to the weak state of the auto industry, so I decided to take a look at a segment of the market that doesn’t get covered quite as much: luxury vehicles. Surprisingly, we’re still not seeing the drop in luxury vehicle sales this year that might have been expected considering the current economic and automotive industry challenges.

Sales Trends

Industry trends are showing that luxury vehicle sales have declined 34% year-to-date compared to 2008, less of a decline than the 35.1% drop experienced by the overall category of cars and light trucks. Looking strictly at cars (not trucks), we see a drop of 35.8% from last year…still lower than the year-over-year 38.6% drop for non-luxury cars. We have noticed a slight shift to lower-priced luxury cars, with greater sales declines seen in the higher-end flagship cars such as the Mercedes-Benz S-Class, the BMW 7 Series, and the Lexus LS.

The sales trend is better for trucks, although the segment still experienced a decline. Sales of luxury trucks are down 30.4% year-over-year compared to a 31.9% drop for non-luxury trucks. And some brands are increasing market share and sales. The Lexus RX is the luxury truck leader, and has increased its share of the luxury truck market by four percentage points over last year. The new Audi Q5 and Mercedes-Benz GLK-Class have added almost 12,000 units this year through May.

Customer Loyalty

Tracking customer loyalty and competitive financing programs will help identify keys ways to increase share as the industry struggles to recover.

The luxury auto makers still have to contend with declining loyalty. Polk’s most recent loyalty study shows serious declines for Lexus, Infiniti, and Volvo. BMW, Porsche, and Jaguar have all improved their loyalty for Q1 2009, but loyalty in the luxury segment overall is down 1.5 points from the prior quarter.

Leasing

While leasing for luxury cars and trucks has declined from last year, it’s probably not the great leasing deals that are causing defections. Luxury truck leasing is down 47.8% from last year and leasing of luxury cars has dropped 44% since 2008. Leasing penetration is off for most makes, but as credit conditions ease, manufacturers with the best financing programs will increase both loyalty and conquest.

Careful management of customer retention to increase loyalty and implementation of competitive financing programs will be the key to increasing market share until the segment rebounds.

Ford and Honda sales vault on clunker deals; GM down 20%, Chrysler down 15.4%

AUGUST U.S. SALES
Ford and Honda sales vault on clunker deals; GM down 20%, Chrysler down 15.4%
Largest boost in Ford sales since July 2005
Chrissie Thompson
Ford Motor Co. and American Honda posted August U.S. sales increases, while Chrysler Group’s and General Motors’ declines were worse than the previous month, as the government’s cash-for-clunkers program lifted industry demand to its highest levels this year.
Honda’s light-vehicle sales increased 9.9 percent, their biggest year-over-year monthly lift since Mary 2008. Ford’s light-vehicle sales rose 17.2 percent, for their largest boost since July 2005. The gain follows Ford’s 2.4 percent increase in July, which was its first year-over-year growth in 19 months.
GM saw a 20.1 percent slide, compared with the 19.4 percent its sales dropped in July. Chrysler’s sales fell 15.4 percent, worse than the 9.4 percent they slipped the previous month.
The results were worse than analysts’ forecasts, but enough to sustain industry predictions that sales would pass the 1-million-unit mark for the first time since August 2008.
“August was a shot in the arm for the industry,” said John Krafcik, CEO of Hyundai Motor America, in a statement. His brand’s August sales shot up 47.0 percent.
Elsewhere in the industry, Subaru’s sales spiked by 51.5 percent. That put its eight-month sales 11.2 percent higher than last year, making it the only automaker reporting a year-to-date U.S. sales increase.

Ford on Track to Be #1 U.S. Carmaker

NOTE: WE’VE SEEN THIS COMING FOR AWHILE. GREAT NEW PRODUCT, SAAVY MARKETING AND NOT TAKING THE GOVERNMENT BAILOUT HAVE MADE FORD THE NUMBER ONE CHOICE AMONG U.S. CONSUMERS THAT WANT TO BUY AMERICAN.=DP

September 2, 2009

Ford on Track to Be #1 U.S. Carmaker

 Things are looking up for the one American automaker that didn’t go for a government bailout, and it’s not just because of “cash-for-clunkers.” 

 Ford’s recent navigation of financial shoals is paying off big-time. The Detroit automaker took a different tack than its rivals, which sought aid from the federal government and shelter in bankruptcy court. It’s on course to grab the brass ring in 2010, becoming No. 1 in U.S. auto sales. An $18-billion low interest loan in 2006 — when the company mortgaged itself, including its iconic blue oval insignia — is allowing Ford to remake operations. It’s slashing costs and developing common bodies, braking and wiring systems for its vehicles worldwide and putting in place new flexible assembly lines that let plants shift rapidly from making one model to another. Plus, Ford is committed to new model development — pledging to revamp its entire fleet by early 2011, and then repeating the feat in a few years. As a result, by year-end 2010, Ford’s U.S. sales will likely edge out both General Motors’ and Toyota’s, but it’ll be a photo finish. The best bet: Toyota will come in second and GM will slip to third. Already, Ford’s share of U.S. auto sales is climbing. It’s likely to top 16% this year and be a hair over 17% next, mainly at the expense of GM and Chrysler. A market share gain of one percentage point reverses a slide that had plagued the firm for more than a decade. GM’s share of new-vehicle sales will be about 19.5% this year, nearly one percentage point lower than in 2008, and come in at barely 17% in 2010. Chrysler’s share will continue to plunge. Its slice of vehicles sold by new-car dealers will slip and slide to as low as 8.5% this year and around 8% in 2010, down from 11% in 2008. Foreign brands will largely hold their own through 2010, with Honda and Toyota posting small gains next year. Ford is getting a boost from a new cycle of models whose popularity seems to be hitting its stride. “There is a perception that Ford has its fingers on the pulse of what consumers want to buy, whether this be a raft of hybrids, such as the Fusion, Escape and Mariner, or the new Taurus,” says Howard Kuperman, president of Phil’s Ford Lincoln Mercury in Port Jervis, N.Y., and chairman of the New York State Automobile Dealers Association. It’s not just curbside appeal that’s giving Ford’s sales a lift. “Consumers are making a decision to buy a Ford product because it did not accept federal bailout money, as did GM and Chrysler, and it didn’t go through bankruptcy as did the other two,” says Aaron Bragman, an auto analyst with IHS Global Insight, a business consultancy. Such consumer anger may fade over time, but Ford’s sales should keep gaining as it builds on strong sales through next year with the introduction of all-new Focus and Fiesta small cars and an ultraefficient commercial van, the Transit Connect, says Bragman.

TVB now forecasts that Total Spot TV revenues in 2009 will decline

TVB Revises 2009 Forecast
New York, Nov. 11, 2008 — The Television Bureau of Advertising today re-issued its 2009 forecast for the local broadcast television industry. It was only the second time the trade association has revisited a forecast; the first time came after the 2002 forecast was rendered inoperative by the World Trade Center attacks six days after it was issued.
TVB now forecasts that Total Spot TV revenues in 2009 will decline between 7%-11% in comparison with this year’s revenues, with Local Spot revenue in a range of -4.0 to -8.0 and National Spot declining by 11.5% to 15.5%.
The full range of numbers for next year, according to TVB:
 New Forecast  Old Forecast*
 Local Spot -4.0 to -8.0%  +2.0 to -1.0%
 National Spot -11.5 to -15.5%  -7.0 to -10.0%
 TOTAL SPOT -7.0 to -11.0%  -2.0 to -5.0%
 *Issued 9/4/08

Furthermore, TVB estimates that total 2008 spot revenues will decline 7.1% over last year, instead of coming in flat as was forecast in September.
TVB President TVB Chris Rohrs said, “Due to the unprecedented economic developments of recent months, we reached out to all of our input sources and asked them to review the projections they gave us last summer. These are not happy numbers to report, but they are the new reality. We take seriously our obligation to our Member Stations to give them the most accurate road map as they work through their planning.”
Mr. Rohrs said that ultimately the 2009-10 landscape will be shaped by consumer confidence and spending, energy and food prices, debt and credit problems, the real estate market and the performance of the incoming Obama Administration. Key categories would be automotive, political, retail, telecom and financial.
TVB estimates — derived from a consensus of Wall Street and financial analysts, station representative firms, and independent TVB research — represent national averages. Individual firms and stations may produce varied results based on a number of factors, including market size, region of the country, and affiliation. The not-for-profit Television Bureau of Advertising is the trade association of local television broadcasters. Its members include television broadcast groups, advertising sales rep firms, and over 600 individual television stations.

Top Five Hardest Cars To Get; These are the models dealers just can’t keep on the lot

The Hardest Cars To Get

These are the models dealers just can’t keep on the lot.

By Hannah Elliott, Forbes.com

 2010 Toyota Prius

2010 Toyota Prius

Feel like driving Audi’s posh new crossover, the $38,000 Q5? The signature Audi LED taillights and leather-cloaked interior, paired with a fast engine and car-like handling, do much to separate it from the pack of premium small SUVs.
But you’ll have to be quick to get one. They’ve been selling just four days after they hit dealer lots, says Audi spokesman Christian Bokich–and that’s not likely to change anytime soon.
Audi’s other hot seller, the $52,400 S5 coupe, is also difficult to get, since it sells four times as fast as the average Audi vehicle. It sold 544 units in the U.S. last month, up 38% from July of last year. Overall year-to-date sales at Audi are slightly up over 2008 as well (down just 14.6% overall, versus negative 16% at this time last year), making it one of the strongest carmakers in the American market right now.

But Audi isn’t the only manufacturer with several vehicles in high demand. Detroit has a fine showing with Chevrolet’s super-hot Camaro, which is sold out virtually everywhere–its sales even topped those of the iconic Ford Mustang in July. Ford’s Escape and Escape Hybrid also made our list of the cars that are most difficult to get this summer.

Behind the Numbers

To compile our list, we used inventory data from Wards Auto, an automotive data and analysis firm based near Detroit. We calculated day-supply rates of 2009 and 2010 model-year vehicles for June and July to get an average figure for just how obtainable these cars are this summer. (Day-supply rates are inventory numbers divided by the daily selling rate that month.) Then we spoke with manufacturers to find out how long those cars are actually sitting on dealer lots.
How long a car sits on the lot provides more insight on why some day-supply rates are lower than others: Just because a car has a short day-supply doesn’t necessarily mean it hasn’t also sat on the lot for months. By the same token, premium and luxury automakers are careful about over-exposing some models to the public. Even if a vehicle like the Audi S5 is in high demand–which it always is–Audi won’t drastically increase the number of units it makes. The idea is to balance accessibility with rarity; once an S5 becomes ubiquitous, it loses its luster.
“Production we keep very steady because the yo-yo stuff tends to put the production cycle off quite a bit,” Bokich says. “We have worked very hard in the last few years to work on inventory management with our factory in Germany and other various factories.”

Crossover Crush

Toyota, in particular, has several vehicles that have been popular over the summer, and for good reason. The automaker routinely ranks high in J.D. Power and Associates quality and dependability studies, and three of the 10 top-selling vehicles last month were made by Toyota: the Camry, the Corolla/Matrix (the wagon variant of the Corolla) and the Prius.
The $22,000 Prius is an obvious option for conscientious drivers, with its high fuel-efficiency (51 mpg in the city/48 mpg on the highway) and generous amount of storage space. Auto analysts say it has single- handedly refashioned Toyota’s image from that of a company that builds unremarkable sedans to the go-to manufacturer for green living.
The $16,290 Matrix and $21,500 RAV4 also speak to a recurrent theme this year in sales: the popularity of compact crossover-type vehicles, especially of the premium variety. Jeff Schuster, the executive director for global forecasting and product analysis at J.D. Power and Associates, says the segment is the only one recognized by J.D. Power that reports a year-over-year increase in sales. While these cars sold well this summer, the effect of the Cash for Clunkers program shouldn’t be overlooked –it skewed inventory levels for both luxury and non-luxury manufacturers nationwide. Current inventory levels and day-supply rates contrast sharply with this past spring’s sluggish auto sales.
As of Aug. 31, according to the U.S. Department of Transportation, Cash for Clunkers had removed more than 700,000 cars from the road, with rebate claims worth $2.9 billion total. That means automakers have had to respond accordingly. GM has announced it will boost production in the fourth quarter of the year; Ford is adding 10,000 units in the third quarter, mostly for the Ford Escape, ranked No. 9 on our list, and for the Focus. And Toyota says it will increase production of its most popular vehicles by 65,000 units in 2009.

Top Five Hardest Cars To Get

1. Audi Q5
2. Chevrolet Camaro (tie)
2. Toyota Prius (tie)
4. Toyota Matrix
5. Nissan Murano

TVB Forecasts Total Spot TV Will Rise 3.6% to 6.1% in 2010

TVB Forecasts Total Spot TV Will Rise 3.6% to 6.1% in 2010

New York, Sept. 10, 2009 — The Television Bureau of Advertising today released its 2010 forecast for the local broadcast television industry at its annual Forecast Conference, attended by several hundred senior broadcast and advertising industry executives at the McGraw-Hill Conference Center in New York.

TVB forecast Total Spot TV revenues in 2010 would rise between 3.6% to 6.1% in comparison with this year’s revenues, with Local Spot revenue rising between 1.0% to 3.0% and National Spot increasing by 6% to 12%.

The full range of numbers for next year, according to TVB:

Local Spot

+1.0 to +3.0%

National Spot

+6.0 to +12.0%

TOTAL SPOT

+3.6 to +6.1%

Station Websites

+18%

Station Mobile

+50.0%

TVB said the 2010 market would be shaped by consumer confidence related to the job market; competition between established and emerging media; consumer adoption of new technologies such as the DVR, online video, mobile web applications and social media networks; advertiser targeting strategies; and the network/spot mix. “The key categories to watch in 2010 will be automotive and political,” said TVB President Chris Rohrs, who unveiled the TVB forecast at the conference.

TVB estimates — derived from a consensus of Wall Street and financial analysts, station representative firms, and independent TVB research — represent national averages. Individual firms and stations may produce varied results based on a number of factors, including market size, region of the country, and affiliation. The not-for-profit Television Bureau of Advertising (www.tvb.org) is the trade association of local television broadcasters. Its members include television broadcast groups, advertising sales rep firms, and over 600 individual television stations.

GM will offer 60-day money-back guarantee

GM will offer 60-day money-back guarantee
Jamie LaReau
General Motors Co., seeking to win the trust of American consumers after its U.S.-funded bailout, will offer a 60-day money-back guarantee on its vehicles.
The deal will be part of a new advertising campaign led by the automaker’s new chairman, Ed Whitacre. In an echo of Lee Iacocca’s “If you can find a better car, buy it” charge to Chrysler Corp. customers in the early 1980s, the GM commercials will say, “May the best car win.”
The program runs from Monday, Sept. 14, through November.
“We’re putting our money down that if people buy one of our vehicles and don’t absolutely love it, we’ll take it back,” Bob Lutz, GM’s vice chairman of marketing, said in a statement.
The campaign marks GM’s efforts to rebound after a 39-day, U.S.-steered bankruptcy and a $50 billion federal bailout. GM, which is shedding half of its U.S. brands, will try to rebuild a U.S. market share that has fallen to 19.5 percent this year from a peak of 50.1 percent in 1962.
The plan:
• Covers Chevrolet, Buick, GMC and Cadillac models for the 2009 and 2010 model years.
• Allows customers to return their cars after 31 days and before 4,000 miles.
• Does not cover leased vehicles.
“Three or four years ago, this would have been a huge risk,” Lutz said during a conference call. “We are now so confident of our vehicles, we can afford to take this risk.”

Chrysler poised to return to leasing, sources say

Chrysler poised to return to leasing, sources say
Bradford Wernle
Just three months out of bankruptcy, Chrysler Group is preparing for a likely return to consumer leasing, say auto dealer sources briefed on the plan by the company.
The leases, which will originate with GMAC Financial Services, will be offered only on select vehicles. Probable vehicles include the Dodge Journey crossover, Nitro SUV, Ram pickup and Grand Caravan minivan; Jeep Liberty SUV; and Chrysler Town & Country minivan.
Chrysler is waiting until after Tuesday, when the Automotive Lease Guide issues its latest residual-value numbers, to make final decisions, the sources said. Leasing could be relaunched as early as Sept. 18 if a plan is approved.
Chrysler was forced to stop leasing at midnight July 31, 2008, after its captive finance company, Chrysler Financial, was unable to renew its full line of credit.
The loss of leasing cost Chrysler dearly and was a key milestone in a chain of events that eventually drove the company to file for Chapter 11 bankruptcy April 30.
When Chrysler discontinued leasing, its U.S. market share stood at 11.3 percent. That number declined to 11.0 percent by the end of last year. Chrysler now holds a 9.2 percent share.

story

CBS chief Les Moonves says, “Advertising is coming back.”

Moonves: “Advertising is coming back.”

Echoing an optimistic message he delivered to investors two months ago, “CBS chief Les Moonves says, We have just seen pacing beginning to go up week by week, month by month, quarter by quarter.”  Moonves says the biggest gains have been in locally-driven divisions like radio and television stations.

“We’ve seen it very significantly change in the last three or four months,” he told the Bank of America-Merrill Lynch media conference yesterday.   Moonves says CBS Radio is pacing up as much as 15% from where it was earlier this year, although it continues to be down from a year ago.  “It’s heading in the right direction and we think we’ll start seeing some plus signs soon,” he added.

Asked whether he thinks the division will return to growth next year, Moonves paused, then told the crowd of analysts, “I’m optimistic that can happen.”

Even so, investors are still pushing companies to reduce costs further and Moonves believes there are still some small cuts left to be found in radio. “As the radio business gets better,” he said, “I doubt we’re going to add costs back into it.”

About Online Piracy – Stop The Theft of Your Dealership’s Name!



Many dealers remain in the dark about online piracy: when your dealer rivals or third-party sites purchase YOUR dealership’s name in pay-per-click keyword buys – or incorporate your name into their website meta-tags. The fallout? Your rightful business is hijacked, because when customers are specifically searching for you, the pirates benefit by plundering the ‘gold’ of your search position.

Why is this sneaky behavior on the rise? Not only because the World Wide Web acts increasingly like the Wild, Wild, West – but because your competitors know your search real estate is super-valuable property, generating big business. Search is huge: more than 4 in 5 online new-car shoppers turn to search engines today, and search is the #1 most-used resource consumers use to research dealers. And roughly 40% of dealer-related searches specifically involve the dealership’s name.

Common types of dealer piracy:

1. Pay-per-click: PPC piracy is when your dealer rivals or third-party sites purchase your name(s) as keywords, so their ad comes up (to the right of the search results), when someone’s searching YOU.

2. Organic: Third-party sites can embed your name in their website meta-tags, so the ever-spidering search engines find THEM, when a searcher is looking for YOU. Third-party lead providers you partner with are authorized to use your name and inventory – but some third-party sites masquerade as quasi-directories, when they’re just using your name to generate leads. Typically, hitting their official-looking landing pages you’ll see: ‘Get a price quote from Dealer X (you),’ with a form gathering customer info. (And there’s usually an option to submit leads to your competitors!) These parasite pirate-sites typically sell leads to larger lead providers, who can sell them right back…to you. Even with a lead aggregator a dealer uses, they shouldn’t use your trade name to gather leads.

Dealers need to put piracy on their radar. All businesses should be in tune with what comes up in both paid and organic results when their specific name/URL is searched.

It’s unfair and often illegal, but that’s the reality of online piracy. More information on how to spot some piracy and take action, while explaining new technology that protects you from this time-consuming, COSTLY headache will be forthcoming.

GM chief to dealers in Orlando: Our company is back on track


GM chief to dealers in Orlando: Our company is back on track


4:22 PM EDT, September 24, 2009

The head of General Motors came to Orlando on Thursday on the final stop of a multi-city tour to assure dealers that their status is safe, the company is stable and some good products are in the pipeline.

Some dealers, of course, may not be that stable. Pontiac has “almost wound down,” said Frederick A. “Fritz” Henderson, president and chief executive officer, adding that deals to sell Saturn, Hummer and Saab are pending.

Going from eight brands to four “was a tough decision,” Henderson said. “We have great dealers, great products. Like many of the things we had to do, I don’t feel good about the decision, but I feel it was the right one.”

Another decision that Henderson said was “difficult” was to cut the ties with established dealers, as he has said he wants to shirk the GM dealer body from about 5,800 to 3,600 by the end of next year.

Among those on the chopping block: Holler Chevrolet in Winter Park and Classic Chevrolet in Altamonte Springs, both part of the Holler Automotive Group, which have been selling GM products since 1938. Henderson said he is not worried by current Congressional hearings into the process GM and Chrysler used to eliminate dealers.

Henderson got the job on April 1, but not in the way he wanted it: The 25-year GM veteran was named to the post after his successor and boss, Rick Wagoner, stepped down as part of the federal bailout of GM.

Henderson had hoped to keep GM out of bankruptcy, but shortly after taking over, GM did go bankrupt, and U.S. taxpayers ended up owning nearly 61 percent of the company. The recovery, Henderson said, is on schedule, and he hopes GM can go public again next year.

Henderson, 50, has spent most of his GM career outside the U.S., and since two-thirds of GM’s volume is from foreign sales, he was a natural candidate to head the company. Known as a money man — he has an MBA from Harvard Business School — Henderson is learning the product side quickly.

Henderson spent Wednesday evening at Carl Black Buick-Pontiac-GMC in Orlando, and presided over the unveiling the 2010 Buick LaCrosse and GMC Terrain.

Henderson is “an awesome guy,” said Carl Black General Manager Omar Rodriguez.

In an interview with reporters Thursday, Henderson said the restructuring of GM is nearly complete. GM’s present inventory of vehicles is about 500,000 less that it was early this year, reflecting the manufacturing cutbacks needed to match the market.

Henderson said the days of 17 million total vehicle sales in the U.S. seen just a few years ago may be gone for a long time, and he predicts the 2009 market will end with about 10.5 million sales, of which GM has just over 19 percent.

Next year, he expects the U.S. market sales to grow by about 1 million. Even if it doesn’t, Henderson said GM is now structured to break even in a market that has just 10 million total sales, with GM holding 18 percent of the market.

The Saturn sale to a group headed by racing magnate Roger Penske is proceeding on schedule, and Henderson hopes the Saab sale to a European group headed by Swedish supercar manufacturer Koneigsegg will succeed. Less certain is the pending sale of Hummer to a Chinese heavy equipment manufacturer, though Henderson’s past tenure as the head of GM’s Asian operations should help. If that deal fails, it is likely Hummer will die, he said.

Henderson said that the “Cash For Clunkers” was an effective sales tool, “short and sweet” and lasting just 45 days. September’s post-Clunker sales have been grim — Edmunds.com predicts GM’s September sales will drop 46.1 percent over September, 2009, and 37.8 percent from August, which was propped up by the clunkers program.

“But since the program was short and sweet, the hangover should be short, too,” he said.

Sept. U.S. Auto sales likely to approach ’09 low

BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER

Sales of cars and trucks in September likely dropped to nearly the lowest point of the year after a surge in sales during July and August caused by the federal cash-for-clunkers incentive program.

J.D. Power and Associates estimates that the selling rate in September will be just 9.2 million cars and trucks when automakers report results on Thursday — second only to February’s 9.17 million rate.

The selling rate is what the sales would total for the whole year if demand remained constant for 12 months, adjusting for seasonal factors.

“It hasn’t been pretty,” said Bob Page, owner of Page Toyota in Southfield, where sales declined an estimated 35%

Cash-for-clunkers, which gave consumers cash vouchers toward a new fuel-efficient vehicle, caused such a spike in demand that it left many dealers with low levels of inventory and shoppers in September.

Page, who normally has 200 vehicles in inventory, started the month with just 18.

Chrysler, which shut down its plants earlier in the year during its bankruptcy, had less than a 15-day supply for six models at the end of August, said spokeswoman Kathy Graham. “Our production began catching up toward the end of this month,” Graham said.

Traffic at dealership showrooms declined 8% to 60.6% in September, depending on the state, with California experiencing the steepest decline, Art Spinella, president of CNW Marketing research, said in a report last week.

“California has continued to be beyond miserable,” said Beau Boeckmann, vice president of Galpin Motors in southern California.

But with the cash-for-clunkers hangover, dealers and analysts said it’s hard to draw conclusions about the state of the nation’s economy based on September’s sales.

“I am looking at October as being the bellwether,” said Sam Slaughter, owner of Sellers Buick Pontiac GMC in Farmington Hills.

Ford sales analyst George Pipas and others gave a hopeful sign about October, saying sales during the second half of September improved.

SATURN IS DONE! NO DEAL WITH PENSKE

Penske drops plans to buy Saturn from GM
Lindsay Chappell
Penske Automotive Group Inc. canceled plans to acquire General Motors Co.’s Saturn, a move that looks likely to put the brand out of business.
Penske had been in discussions with unidentified automakers around the world to plan Saturn’s product portfolio after a sale by GM. The retailer had an agreement to source vehicles from another automaker, but the automaker’s board rejected the deal.
“Without that agreement,” Penske Automotive said in a statement today, “the risks and uncertainties related to the availability of future products prohibit” the vehicle distributor from moving ahead with the deal.
A statement from GM said, “This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality.
“We will be winding down the Saturn brand and dealership network.”

Tense Consumers Ready to Lighten Up as Recession Dissipates

Tense Consumers Ready to Lighten Up as Recession Dissipates

 Sep 29, 2009

The recession is hitting consumers all over the world, and market researcher Mintel has been doing an ongoing analysis of those effects, rendering them as five major trends that will continue to impact why, how and where consumers shop. Some are worrisome, but some reflect a desire for greater normalcy, or at least a desire to emerge from under the cloud of economic gloom that has been spanning the globe.

  • Trust: a core consumer concern in 2009, as banks, food manufacturers and government officials command less confidence as the economy makes any failure, even something as distinct from finance as a salmonella scare, more ominous. Mintel asserted that, in the United States, six in 10 consumers worry about food safety. Lack of trust is an international issue, and, in the United Kingdom, major brands have been tainted by the shortcomings of big financial institutions such that 39 percents of budget-minded Britons are turning to even more private label products than they previously purchased.
  • Control: a factor that potentially could have a long-term influence on retail expenditure, as a Mintel survey of affluent American adults demonstrated that two in five intend to permanently spend less and decrease their reliance on credit cards as they increase control over their finances. In the U.K., despite a more extensive social safety net, about 13 percent of the population intends to increase the pace of saving in the next year or so, while another six percent who aren’t currently saving report they will start.
  • Trading down, up and over: as consumers evaluate spending opportunities. About 80 percent of Americans report that they are cooking at home more now and 52 percent say they are spending less at restaurants this year than last, while 54 percent of Brits are buying more food on special offers and 36 percent say they are trading down to budget private label brands. Despite that, in what could be an example of pent up demand looking for an excuse to unleash itself, many consumers demonstrate a desire to trade up in price and quality on small rewards, such as fine chocolate and perfume, earned for other virtues. In the meantime, a proportion of consumers purchase gourmet food as a somewhat indulgent but affordable alternative to the eating out they used to do.
  • Playfulness: arising despite, or perhaps in response to, economic pressures, as part of a determination among people to enjoy themselves. In the United States, 60 percent of consumers said they traveled domestically in the past year. They were more likely to visit friends and family as a means of saving some cash, or to spend time looking for travel bargains and cheaper transportation rather than to spend money going first class. Manufacturers have sensed the trend and released quirkier, more light-hearted new products. The main question there is: Do the KISS Mr. Potato Head figures recently spotted at Walmart count?
  • Simplicity: a desire two-thirds of Americans responding to a Mintel study expressed as an effort to unscramble their lives over the past year. Another trend that’s caught the eye of manufacturers, the get back to basics urge has prompted products that offer clean functionality, simple ingredients and less weighty packaging, Mintel asserts, while encouraging restaurants to include all-inclusive meal deals that spell out exactly what folks will get for their money.

“At the end of last year, we knew 2009 was going to be difficult for people across the globe,” said Harry Foster, global analyst at Mintel. “But as we review our five consumer trend predictions, we see that optimism has steadily balanced out stress and economic hardship. The first half of the year was especially challenging, but with tentative, recent green shoots of recovery, we expect people’s attitudes to brighten considerably in coming months.”

Hyundai U.S. Sales Rise for 3rd Month; Toyota’s Fall

Hyundai U.S. Sales Rise for 3rd Month; Toyota’s Fall

 

Oct. 2,2009 – Hyundai Motor Co.bucked a U.S. slump in September, increasing vehicle sales for the third month in a row while Toyota Motor Corp.and Honda Motor Co. saw demand drop after “cash for clunkers” rebates ended.

Hyundai, South Korea’s largest automaker, posted a 27 percent sales increase while affiliate Kia Motors Corp.had a 24 percent gain. That compared with declines of 13 percent for Toyota, Japan’s largest carmaker, 20 percent for Honda and 7 percent at Nissan Motor Co. Industrywide sales fell 23 percent, Autodata Corp. said, led by General Motors Co.’s 45 percent drop.

“Dealership traffic evaporated in the absence of the cash for clunkers incentive program,” said Efraim Levy, an auto analyst at Standard & Poor’s Equity Research in New York. “We expect the September lull to be temporary, as the comparisons get easier and we see economic gains.”

The industry is coming off an August surge that snapped a streak of monthly sales declines dating to 2007. Buyers responded to the U.S. government’s offer of as much as $4,500 to trade in older vehicles for more fuel-efficient ones. Hyundai raised incentives to keep customers coming after the rebates ended in August, said industry analyst Jesse Toprak.

“They’re still being very aggressive with incentives, spending nearly double in September what they did last year,” said Toprak, head of industry analysis forTrueCar Inc., an automotive pricing and data service in Santa Monica, California.

Hyundai shares didn’t trade in Seoul today as the market is closed for a holiday. The stock fell 8.1 percent to 102,500 won yesterday.

Hyundai

Seoul-based Hyundai spent about $3,200 per vehicle last month, up from about $1,700 in September 2008, Toprak said.

Hyundai also had more vehicles at U.S. dealerships, allowing it to take advantage of tight supplies at competitors.

“After about Sept. 20, inventories simply weren’t there” for Toyota and Honda, Toprak said.

Sales for Hyundai totaled 31,511 last month. The maker of Sonata sedans has boosted its U.S. market share to 4.4 percent this year from 3.1 percent a year ago, the biggest increase in the industry, according to Autodata.

Going into the fourth quarter, the automaker is “cautiously optimistic,” Dave Zuchowski, Hyundai’s vice president of U.S. sales, said in a statement.

Japanese and South Korean carmakers sold a combined 347,171 vehicles, grabbing a 46.5 percent market share last month, compared with 43.8 percent for GM, Ford Motor Co. and Chrysler Group LLC.

Toyota

Toyota, the world’s largest automaker and second in the U.S. to Detroit-based GM, sold 126,015 Toyota, Lexus and Scion vehicles, down from 144,260 a year earlier.

The company is boosting production of models such as Corolla small cars, Camry sedans and RAV4 compact sport-utility vehicles, as it still has limited inventory after demand surged in August, Don Esmond, Toyota’s senior vice president of U.S. sales, said in a conference call yesterday.

Toyota, based in Toyota City, Japan, began October with just an 18-day supply of vehicles, he said.

Sales of luxury Lexus models jumped 12 percent, helped by the new HS hybrid sedan and demand for RX SUVs.

After the industrywide sales slump in the first half of the year, “we’re closing on a brighter note,” Esmond said.

Toyota’s market share in September was 16.9 percent, up 1.9 points from a year ago, according to Autodata.

Toyota fell 3.1 percent, or 110 yen, to 3,400 yen at 10:45 a.m. in Tokyo Stock Exchange trading.

Honda, Nissan

Honda, fourth in U.S. sales, sold 77,229 Honda and Acura- brand vehicles last month, down from 96,626 a year earlier. Sales of nearly every car and light truck in the Tokyo-based company’s lineup fell last month, except for Pilot SUVs.

The midsize light truck appeared to benefit from lower fuel prices, said Chris Martin, a Honda spokesman.

Honda’s market share was 10.4 percent in September, up from 10 percent a year earlier.

Nissan sold 55,393 vehicles, down from 59,565 a year earlier. The carmaker’s market share in September rose to 7.4 percent from 6.2 percent, Autodata said.

“We saw some good things happening in the month, in terms of dealer traffic,”Al Castignetti, vice president of the U.S. Nissan brand, said in an interview. “We’re still in the throes of a recession.”

Nissan’s market share rose to 7.4 percent from 6.2 percent, Autodata said.

Honda fell 2.5 percent to 2,695 yen at 10:47 a.m. in Tokyo trading, while Nissan dropped 4 percent to 577 yen.

U.S. Sales in September for Asia-based Automakers

            Sep-09      Sep-09     Change %   DSR %*
Toyota     126,015     144,260     -12.6%    -16.1%
Honda       77,229      96,626     -20.1%    -23.3%
Nissan      55,393      59,565      -7.0%    -10.7%
Hyundai     31,511      24,765      27.2%     22.2%
Kia         21,623      17,383      24.4%     19.4%
Mazda       14,234      16,169     -12.0%    -15.5%
Subaru      14,593      14,491       0.7%     -3.3%
Mitsubishi   4,712       7,378     -36.1%    -38.7%
Suzuki       1,861       4,083     -54.4%    -56.2%
Isuzu            0         258    -100.0%   -100.0%

* Daily selling-rate basis; ** Isuzu Motors Ltd. ended U.S.
sales in January 2009.

 

Used Car Prices Up as New Car Sales Sour

Used Car Prices Up as New Car Sales Sour

Oct 2, 2009

As Jim Henry has recently pointed out on BNET Autos, after the lift from the federal Cash for Clunkers program car sales are going sour again. General Motors posted a 45 percent year-to-year retreat in September, and Chrysler dropped 42 percent. Only Ford, which has the best new products, is showing relative strength—a mere five percent decline. And Ford’s third quarter sales actually rose five percent—the company’s first quarterly increase since 2005.

Ken Czubay, a vice president of sales, praised Ford’s “strong lineup of high-quality fuel-efficient products, frankly the freshest product line in the industry….Instead of leaving us vulnerable to the peaks and valleys and dramatic segment shifts in the industry in the third quarter, our broad balanced product line delivered sales and share gains from all corners.”

Among foreign automakers, the Korean twins Hyundai and Kia posted 27.2  and 24.4 percent sales, and BMW saw a 3.6 percent jump. Japanese car sales are still reeling (Honda was down 20 percent, for example), suggesting that as Korea and China climb, the Japanese economic miracle is definitely tarnished.

But one car sales niche is showing strength—used vehicles. As Joseph White notes in the Wall Street Journal September 30, Americans are getting used to tightening their belts, and that means they’re buying older cars. The phenomenon has actually pushed up used car prices—the Mannheim Used Vehicle Value Index is likely to hit a record later this month, says chief economist Thomas Webb.

It’s instructive to look at the performance of CarMax, the largest U.S. retailer of used cars in the U.S. with 100 superstores around the country. As the company was reporting six percent higher previously owned car prices (and this is one one area where people are still buying gas guzzlers), it was also proclaiming its seven-fold increase in net income for the second quarter ending August 31. Earnings went to $103 million, or 46 cents a share, compared to $14 million, or six cents a share, last year. Sales were up 13 percent to $2.08 billion.

Analysts, said Reuters, had expected the company to report 18 cents a share earnings on revenues of $1.77 billion. Needless to say, this set off a rise in CarMax’s share price. Cash for Clunkers got some shoppers into dealer doors in the quarter, and the company said, “While customer traffic in the second quarter remained slightly below the prior year level, it has steadily strengthened throughout the first half of the current fiscal year.”

How to Save Your Online Reputation

Keep Track of Your Online Reputation

Goal: Make tracking part of your everyday routine.

Start by identifying the most likely places online for your name to come up. Google dominates the search engine market, and it’s also where the media looks first, according to ad firm Universal McCann.

Identify blogs and forums within your professional circle, as well as popular social networking sites that you, colleagues, or competitors use. Then there are networking sites ― LinkedIn and Facebook are frequently used to check character references, and Facebook tends to rank high on Google, too.

Emerging social sites such as Twitter are increasingly important because of their viral potential. Twitter “makes it easy for people to quickly express their inner monologue. And it is very easy for others to spread it around,” says Andy Beal, co-author of Radically Transparent: Monitoring and Managing Reputations Online.

Last, ensure the biography on your corporate Web site is accurate and fair. Check corporate sites of places you’ve worked; it’s unhelpful to have outdated information online.

Once you’ve identified the sites you want to monitor, set up alerts. You can set up a Google alert at google.com/alerts for your full name. Subscribe with your full name to Technorati.com, a blog search engine, and BackType, a blog comment search engine, to reach blogs that Google alerts may not cover. Twitter tools abound: Tweetdeck, Thwirl, or TweetGrid are a few. Most have — or are building — clients that work on smartphones such as the Apple iPhone and the BlackBerry, and all let you tailor your searches so you can follow mentions of you in real time.

Another tool worth considering is Twinbox, which lets you track what’s being said on Twitter via Microsoft Outlook. Dan Schawbel, a personal brand specialist and author of Me 2.0:Build a Powerful Brand to Achieve Career Success, recommends Tweetbeat.com, which gives you notifications through e-mail when people talk about you on Twitter.

Checklist

What to Track

  • Search engines: Google, Yahoo, and Microsoft’s
  • Bing Blogosphere: Known blogs in your professional arena, or use blog search engines such as Technorati or Google Blog Search
  • Forums: Known discussion threads in your professional arena
  • Social networking sites: Facebook, MySpace, LinkedIn
  • Microblogging sites: Twitter, Jaikuand Plurk, Social Mention
  • Personal rating sites: PersonRatings.com
  • Corporate Web sites: Your company, former places of work

Repair Your Online Reputation

Goal: Identify the nature of the attack and act accordingly.

Monitoring the Web won’t prevent an online attack. If you fall victim, don’t panic: Think before you respond. “If it’s an isolated incident, and no one has replied, you might consider letting sleeping dogs lie,” says Andy Beal. Likewise, Schawbel cautions against rising to the bait: “If someone is deliberately attacking you for fun, or ‘trolling,’ then leave it alone. They only want the attention,” he says.

Analyze what’s been said about you. If a blogger has their facts wrong, correct them ― most will quickly amend their post. If the criticism’s true, apologize using the same medium as the message. Give people a platform to complain to you where the original complaint was posted or on your own blog. Your willingness to engage is likely to win over the sceptics. It also reflects well on your own management style.

If the attack on you is a calculated campaign ― a post on a blog with a follow-up on Twitter ― then take action. If you’re being attacked professionally, you should alert the following:corporate stakeholders, including your boss; the company press officer; and the legal department.

Deal with the matter informally first. If you know the identity of your detractor, approach directly, offline. “You don’t want to do this in the public domain,” advises Beal.

In most cases people will remove the offending item from the blog or forum, but if they don’t, you can consider a more public approach. Be open, constructive, conciliatory, and willing to engage.Try something along these lines: Jim, I’ve already spoken to you about this, and as you know, what you are saying about me is inaccurate. I would like you to remove it. Meanwhile, if anyone out there reading this has any questions, this is how to reach me.

If this approach fails and comments against you are defamatory, you may need to speak to a lawyer.

One more thing: think before you fire off a salvo to a co-worker online. If you need an example, consider this fairly innocuous Facebook exchange between “Yvonne” and her manager, “Cheryl.” It takes on a new and unflattering life on Lamebook, a site that highlights “lame and funny” extracts from social networking sites for others to comment on.

Hot Tip

Don’t Mix Business and Leisure Online

Use separate social networking options for work and play ― Facebook for your friends and LinkedIn for professional contacts, for example. That way, a personal spat is less likely to spill over into your professional life. “Post a short explanation, saying: ‘I use this site for X or Y,’” suggests Tiger Two’s Nancy Williams. And, obvious as it may sound, you don’t have to accept everyone’s invitation to join your network.

Protect Your Online Reputation

Goal: Insulate yourself against attacks and build a brand that reflects the professional you.

So we’ve discussed the cure, what about prevention? The answer lies in building and maintaining your online brand. That way, any negative commentary is not the only news about you. “If those negative associations occur,” says John Purkiss, co-author of Brand You. “You want people to think, “‘Well, that’s absolutely out of character.’” You’ll put the burden of proof on your attackers.

The first step is to effectively “buy up” all the online property in your name. Whether or not you’re active on Twitter, LinkedIn, or have plans to set up a WordPress or Typepad blog, it is worth setting up accounts in each.

It is a defensive maneuver that, at the very least, stops someone else owning and abusing linkedin.com/joepublic, twitter.com/joepublic, joepublic.wordpress.com, and so on.

Next, identify advocates and encourage them to point to you online. That may mean writing a LinkedIn recommendation, a mention on their blog, or simply a link.

The more relevant the people with whom you’re linked, the stronger your “link equity” ― and the more likely you’ll appear on the first page of a Google search. Plus “it’s a lot easier to respond if you have a community to rally around you,” says Nancy Williams, founder of U.K.-based online reputation specialists Tiger Two.

Be proactive. Offer to blog and write articles about your specialist subjects for online publications that hit your current and future business associates. Earn a reputation as a “player” in your field. Get your name out there.

Essential Ingredients

Getting to Grips with SEO

If you want the positive to push out the negative on page one of Google, learn about search engine optimisation (SEO), the art of increasing the search engine traffic to your site or profile.

Purkiss has one last suggestion. If you are the author of your own downfall, try copying scandal-hit 1960s politician John Profumo, whose humiliating exit from politics was followed by a lifetime of philanthropy. Applying a 21st century twist to the Profumo Principle, Purkiss says: “Do lots of good stuff until the bad stuff is pushed to page six of Google.”

Hyundai and Kia Keep Climbing Up the Sales Charts

Hyundai and Kia Keep Climbing Up the Sales Charts

Oct 6, 2009

Hyundai and Kia continue to pull away from the rest of the U.S. market, on a pace for record sales this year, with nearly every other brand down sharply.

U.S. light-vehicle sales, including cars and light trucks, fell 22.7 percent in September versus the year-ago month, to 745,997, according toAutoData Corp. That was thanks in part to payback from “Cash for Clunkers.” Year-to-date sales were down 27.4 percent to 7.8 million.

The closely watched Seasonally Adjusted Annual Rate for September was about 9.2 million, falling back to pre-clunker levels, but at least the SAAR fell no further.

In contrast, Hyundai sales in September were up 27.2 percent from the year-ago month to 31,511; year to date, Hyundai’s U.S. sales were up 1.3 percent to 342,217. Kia sales gained 24.4 percent in September to 21,623; year-to-date sales were up 4.6 percent to 238,570.

Together, the two brands – both are controlled by the Hyundai Group – had a U.S. market share through September of 5.2 percent, slowly gaining on Nissan North America, with 7.3 percent.

“We are cautiously optimistic during these challenging times,” saidDave Zuchowski, vice president of sales for Hyundai Motor America.

Analysts said a favorable exchange rate between the U.S. dollar and the South Korean won is making it easier for Hyundai and Kia to pursue their strategy of providing a high level of standard equipment at a relatively low sticker price.

That raises the value back home for dollar-denominated profits. The advantage could be worth up to a couple of thousand dollars per car.

New and distinctive styling is also likely playing a big role in the brands’ recent success.

Four Ways to Create Your Legacy

Four Ways to Create Your Legacy

Only by changing the way you live will you be able to create the legacy you want to leave, says John C. Maxwell, a leadership expert. Legacies happen when they are deliberately crafted with years of hard work and dedication. Create your own legacy with these experts’ tips:

  1. Identify your strengths. Think of your core strengths, and then talk to colleagues, friends and family members for their insights. Keep a running list and see which strengths come up most frequently. Often, others see our strengths more easily than we do, says gerontologist Ken Dychtwald.
  2. Think about how you spend your time.“Most of us tend to be drawn—either directly or indirectly—to the settings, activities and people that allow us to express our interests,” Dychtwald says. Remember, your legacy should be a labor of love, not a chore.
  3. Write a life sentence. “A life sentence is a statement summarizing the goal and purpose of one’s life,” Maxwell says.
  4. Realize your legacy is based upon what you do today. “For most of us, it is the days of our lives taken as a whole that people remember,” says Chris Widener, a leadership expert. “If you want to be known as a kind person, do something kind every day for the people around you.”

Ford Hybrid Sales Strong in September: Thanks to the Fusion/Milan

Ford just released its hybrid car sales figures for September, and they were up 78 percent from the same month last year. This is hardly surprising, because Ford introduced the Fusion and Mercury Milan Hybrids (as 2010 models) this fall, and they’ve found their way into a plethora of taxi and government fleets. Being American hasn’t hurt (though the cars are actually assembled in Mexico, an alert reader points out). The entire industry suffered a 14 percent decline in hybrid sales in September.

Ford sold 26,016 hybrids in September, according to Autodata. In the same period, its overal sales were down six percent–following a two percent increase in July and an impressive 17 percent gain in August.

The Fusion/Milan delivers 41 mpg in the city, and 36 on the highway. The hybrid Escape does 34 city/30 highway. Ford boasts that more than 60 percent of its Fusion Hybrid sales have been to non-Ford owners, and more than half are refugees from import brands (mostly Toyota and Honda).

You’ve probably noticed a growing number of Ford Escape Hybrid taxis on the streets of New York and San Francisco (beginning in 2005, and now 200-strong and 14 percent of the fleet). The first 15 Escapes managed 300,000 miles each before retirement, which should be solid evidence that battery-heavy hybrids can be dependable. The Escape is ubiquitous in New York, along with Nissan Altimas and a smattering of Toyota Priuses. The car is also in a growing number of state and federal government fleets.

New York has 2,000 Escape Hybrids on the road, and 13,237 hybrid taxis total. The first Escapes are only now retiring from the mean streets.

“We’re extremely pleased with the performance of the Escape Hybrid in taxi service,” said Gerry Koss, Ford’s fleet marketing manager.  “Not only have they proven very reliable, they’ve also saved taxi drivers money on gas and contributed to lower tailpipe and greenhouse gas emissions in the cities that use them in taxi fleets.”

The feds bought 3,000 Ford hybrids so far in 2009, 1,900 of them funded with American Recovery and Reinvestment Act monies. The U.S. Army alone bought 400 Fusions, and 45 Escapes were delivered to the Los Angeles County Lifeguards for rescue patrol duty. The lifeguards have experienced a 25 percent, more than 5,000-gallon fuel savings in the first six months.

This all demonstrates that there is money in fleet sales, though the cars and trucks need to be worth buying, too.

J.D. Power : Social media shaping customer expectations

NOTE: SOCIAL MEDIA HAS INFLUENCE IF USED CORRECTLY.=DP

If the auto industry wants to target prospective new-vehicle buyers online, it would more effective to use social networking sites like Facebook instead of online search engines or portals, speakers at the opening presentation of the 2009 J.D. Power and Associates Automotive Internet Roundtable suggested Thursday.

J.D. Power and Compete presented analysis that indicates social media can reach more potential new-car buyers than such avenues as Google or Yahoo.

Their clickstream analysis tracks the actual Web URL addresses that new-car buyers visit, and suggests that auto marketers can be better positioned to find potential new-car buyers online by developing a presence within social networking sites.

And they can increase their chances to interact with new-vehicle shoppers by creating fan pages or profiles. But the study also warned that overt advertising on social networks is likely to be viewed negatively by consumers.

Continuing on, their clickstream analysis also found that one-third of buyers go to an auto brand Web site or third-party site during the prior six months (or longer) before making a purchase, and two-thirds do the same three months before buying.

Also, 19 percent of auto buyers who browse online claimed that they access dealer sites first. However, 41 percent head to OEM sites first and 40 percent visit third-party auto sites right off the bat.

Additionally, new-car buyers who shop around online tend to consider an average of 2.9 vehicles.

“Clickstream analysis provides a comprehensive look at online buyers and their realities of their shopping behavior,” noted J.D. Power. 

Automotive Internet Roundtable also discussed how social media analysis can be used as a tool to better understand auto consumers, especially in light of the increasing popularity of social networking. 

For instance, social media analysis examining online auto conversations has discovered that:

—Much of the discussions involving hybrids are more about competition and fuel efficiency and less about pricing and features.

—Web conversations about pickup trucks have decreased this year, but there are more social networkers talking about hybrids and vans.

“Social media is now shaping customer expectations in any and every way,” noted J.D. Power.  

“Listening to social media is increasingly on people’s radar screens and people are scrambling to understand it,” POWER continued. “It’s not enough simply to count the buzz, it is important to understand what that buzz really means to your brand.”

Auto Brand Loyalty Isn’t What it Used to Be

Auto Brand Loyalty Isn’t What it Used to Be

 Oct 21, 2009

According to a new study from CNW Marketing Research, only about 20 percent of new car shoppers stay with the auto brand they grew up on, reversing decades of assumed loyalty. Gone, apparently, when men (and it was usually men) would jingle the change in their pockets and pronounce themselves Ford or Chevy fans for life.

This is bad news for the Big Three, which need consumers to stick with them as they struggle to recover from the recession.

In the 1980s, according to the New York Times, four in five Americans stayed with a single car company—usually a domestic. In 2004, Chevrolet was the top-selling brand, followed by Ford and Toyota a fairly distant third. Today, Toyota is number one, Chevrolet has slipped to number three, and both Honda and Nissan are in the top five.

The results seem to support a Experian Automotive study from earlier this year that gave high marks to Ford for retaining loyalty to such models as the Ford Fusion (62 percent retention), Edge (57.9), Escape (49.4) and the Focus (47.5). Six of the top ten retention models in the survey were Fords, but also placing high was the Toyota Prius (52 percent), Camry (47.8) and Corolla (47.5). GM’s sole top ten placer was the Chevrolet Impala, with a healthy 51.7 retention.

Last June, a CNW report said that Ford stood a good chance to pick up Pontiac customers when that brand disappears. The survey said 38 percent of buyers interested in a Pontiac would look at Ford, versus only 33 percent for other GM brands. If it can’t retain Pontiac loyalists, GM’s market share could erode further.

 

Top 50 Websites for Professionals

Top 50 Websites for Professionals

Here is Website Magazine’s Top 50 most important websites for Web professionals. Keep in mind that the sites on this Top 50 are not an acknowledgement of their effectiveness, but rather their popularity among Web professionals, the business community and consumers.

What is most fascinating about a list of this nature is the variety of industries it spans and the type of marketing and development resources it highlights. Ten years ago you would have seen a much different landscape of the top sites for Web professionals. For example, while search engines still top the list of the most essential sites today, social networking sites are quickly gaining traction as they continue to garner more consumer, business and media attention.

From Facebook and Twitter to Ning and Yelp — social is increasingly working its way into the marketing and development efforts of many enterprises. It is important, however, to apply Pareto’s Principle of the 80/20 rule to this list of sites. The top 20 percent of these websites will arguably yield 80 percent of the results — website traffic or brand engagement.

But it’s not only the pure-play social sites that are making an impact on the Web. Video sites such as YouTube.com, Metacafe.com, Blinkx.com and others are also noteworthy standouts on the list and signify an interesting shift toward a truly Interactive marketing environment. While still cost-prohibitive for many marketers, consumers watch video in vast quantities and at a rapid pace — that alone makes those websites important to your Web success.

Another fascinating trend in this edition of Top 50 is the number of job and career-related sites such as SimplyHired.com and SnagAJob.com. While the economic realities might have brought these resources front and center, each can stand alone as a vital resource regardless of what’s happening on Main Street USA.

And don’t even think about ruling out content and article marketing as a way to shore up brand visibility and drive website traffic. Longstanding success stories such as EzineArticles.com, FindArticles.com and ArticlesBase.com still generate the respect of many professional and aspiring Web professionals and will continue to do so until content is no longer king.

 

About This Ranked Data
Website Magazine’s Top 50 rankings are a measure of a website’s popularity. Ranks are calculated using a proprietary method that focuses on average daily unique visitors and page views over a specified period of time as reported by multiple data sources. The sites with the highest combination of factors are ranked in the first position.

(Source: Website Magazine, 11/09)

Ford Gains, Rivals Falter; Market Share Rises

The Wall Street Journal

Ford Motor Co. has weathered the car industry’s downturn better than many competitors. Now some analysts think the company has turned the corner so far it could report break-even results for its core North American operations or even an overall profit when it releases third-quarter earnings Nov. 2.

At the heart of Ford’s relative success has been its ability to minimize its year-over-year sales declines while taking advantage of its competitors’ weakness and grabbing market share.

[FORD]

Ford continues to benefit from stronger prices for both its new and used cars that should boost results at its wholly owned financing arm, Ford Motor Credit. The trend could help the company reverse large losses accounted for in 2008 at the unit based on anticipated declines in the value of its leased vehicles.

Another positive sign could come in a report expected to be released soon by auto guide Kelly Blue Book. Two Ford vehicles will appear on the list of 2010 model-year vehicles projected to retain the greatest amount of their original retail price after five years of ownership, said a person familiar with the matter. Last year, no Ford car or truck held a spot on the 2009 model-year list. Ford also is expected to perform well in the annual auto-reliability survey by Consumer Reports, due out Tuesday.

In the second quarter, the car maker reported a profit of $2.3 billion, though that came mainly from gains it recorded as part of efforts to restructure its debt. Excluding the gains, Ford would have reported a loss of $424 million, still narrower than a comparable loss of $1.03 billion a year earlier and much better than analysts had expected. The company has lost more than $30 billion since 2006.

The improved results have helped build Chief Executive Alan Mulally‘s image as a turnaround leader. But Ford still carries a massive debt after borrowed $23.5 billion in 2006 to fund its restructuring. Many on Wall Street are waiting to see how Ford will cut its debt load.

The optimistic earnings outlook comes at a delicate time for Ford. It recently won additional concessions from the leadership of the United Auto Workers, including a reduction in work rules and a no-strike pledge. But the new agreement, the second amendment to its labor accord this year, is in the midst of a ratification vote from the union rank-and-file, and some have already voiced opposition to the concessions.

Despite an improved outlook, Ford hasn’t revised its profitability forecast, stating the company won’t break even or make money until 2011. A person familiar with the matter at Ford said that even if encouraging signs continue to emerge, Ford may stay conservative about how quickly it can return to sustained moneymaking.

OCTOBER U.S. SALES GM posts 5% gain; Ford, Kia rise as industry shows spark

OCTOBER U.S. SALES
GM posts 5% gain; Ford, Kia rise as industry shows spark
General Motor Co.’s U.S. sales rose for the first time in 21 months in October and most big automakers also gained, supporting analysts’ forecasts for the strongest month this year not aided by government incentives.
GM advanced 5 percent and Ford Motor Co. 3 percent. Among Asian automakers, Nissan North America climbed 6 percent, Toyota Motor Sales gained less than 1 percent and Kia soared 45 percent. Subaru, Daimler AG and Porsche were all up.
Chrysler Group, meanwhile, plunged 30 percent as it continued to struggle after its bankruptcy. Audi, Mazda and American Honda also declined. Suzuki was down 50 percent, while BMW Group trailed year-earlier sales by 19 percent.
With three automakers left to report, industrywide sales had slipped 2 percent from October 2008. That would be the slimmest decline this year.
The results show automakers benefiting from year-earlier comparisons, after the collapse of Lehman Brothers sent the U.S. economy into a deeper tailspin. Industry sales fell 32 percent last October, dragging the seasonally adjusted annual sales rate below 11 million for the first time since 1983.

NADA Chief Economist Estimates Clunker Cost Per Incremental Vehicle Sold at Around $4,600

Describes Edmunds.com Clunker Estimate of $24,000 as ‘Overstated and Misleading’

McLEAN, Va. (Nov. 3, 2009) – After a thorough review of the Cash for Clunkers program, the chief economist of the National Automobile Dealers Association (NADA), Dr. Paul Taylor, determined that the cost of each incremental vehicle sold was around $4,587. An incremental sale is a sale that would not otherwise have occurred without the Clunkers program.

His findings bring into serious question the methodology behind the $24,000 estimate promoted last week by the car-buying Web site Edmunds.com.

“It’s really not that hard to determine a credible cost estimate for the Clunkers program,” says Taylor. “You subtract projected sales from actual sales for July and August when the Clunkers program was operating, and divide the program’s $3 billion by that number.”

Taylor says that, based on sales volume for previous months, a realistic projection of auto sales for July and August would be around 1,600,000. Actual sales for those two months totaled 2,253,963. The difference is 653,963. That’s the number of incremental sales generated by the Clunkers program. Divide the program’s $3 billion by that number and you get $4,587, the average cost per incremental Clunker sale.

Taylor says the methodology used by Edmunds.com in its analysis of the Cash for Clunkers program is “fundamentally flawed.”

“The analysis by Edmunds.com is wrong on the two main points that it tries to make. First, because of its flawed methodology, the study can’t form the basis for measuring the program’s impact or costs. Secondly, and more importantly, the analysis clouds understanding and misleads rather than clarifies the true state of auto sales and the economy,” Taylor added.

Edmunds.com says it came up with its estimates by examining the sales trend for luxury vehicles and others not in Cash for Clunkers, and applying the historic relationship of those vehicles to total SAAR (Seasonally Adjusted Annual Rate). Taylor says this method virtually assured that cost estimates would be “overstated and inflated.”

“Historically, over the past 20 years, auto sales have been lower in July and August than in June, in the absence of strong incentives. Edmunds ignores this,” says Taylor.

“The Dow Jones and broader market indexes made strong recoveries over the summer, assisting luxury light vehicle sales. But there is a fundamental difference between what drives luxury car sales and non-luxury sales,” says Taylor. “An improving stock market, for example, may boost luxury car sales but it has little effect on non-luxury sales. Job growth, income growth and housing affect non-luxury vehicle sales. And in each of those categories the numbers are not good. Unemployment is up. Income is down. And housing prices continued to fall through July. This has not been the kind of economic environment that encourages a purchase by the average car buyer.”

Taylor says that Edmunds.com also painted a too-rosy picture for auto sales for the rest of the year. He points out that the Conference Board’s Consumer Confidence Index actually dropped to 47.7 in October from 53.4 in September. “This does not support a dramatic increase in non-luxury car sales for the final months of 2009, as suggested by the estimates in the Edmunds.com analysis,” says Taylor.

“Edmunds.com has obviously underestimated just how much the Clunkers program stimulated car sales,” says Taylor. “The Clunkers program lit up the market. Auto showrooms went from almost empty to overflowing. It’s hard to imagine how anyone who takes an objective look at the Cash for Clunkers program can reach any conclusion other than it gave a dramatic boost to retail sales and manufacturing output.”

15 Cars Fueling the Auto Recovery

As comebacks go, it’s an awfully weak one. Annual car sales in 2009 are likely to end up at the lowest level in years, down more than 40 percent from their peak in 2005. The worst months came in the spring, punctuated by the bankruptcy filings of General Motors and Chrysler. The cash-for-clunkers program provided a nice summer boost, but that was followed by a steep dropoff once the giveaway ended and doubts that the subsidies would lead to any net gain at all. But sales finally seem to have stabilized, with forecasting firms like CSM Worldwide predicting steady improvement through the end of the year into 2010. And a few models have already started to take off. Data from J.D. Power & Associates shows that cars offering strong value, with a good reputation for quality and a generous set of standard features, have performed well despite the dismal downturn. Buyers continue to shun big vehicles in favor of those getting good mileage. And excitement still sells, with some hot new sports cars sprinting out of the gate. Here are 15 cars that have been hot in a cold market:


 

Chevrolet Camaro. There may be no better case for the GM bailout than this overdue muscle car, a hit by almost every standard. The raucous styling enlivens the road, a pair of available engines both pack punch, and the starting price of about $23,000 puts the Camaro within reach of the masses. It’s a welcome arrival in a dreary year, and enthusiastic buyers have rewardedChevy by purchasing nearly 50,000 Camaros since the car debuted over the summer.

 

Dodge Challenger. Very little has been going right at Chrysler, which unlike GM has had few new products to help buyers forget about its ignominious bankruptcy filing. The Challenger from Chrysler’s Dodge division is an exception, offering retro muscle-car styling to match the Camaro andFord Mustang, along with two optional V-8 engines for drag-race fantasizers. Sales of about 21,000 units this year make the Challenger just about the only Chrysler product showing signs of life.

 

Ford Fusion. This nimble, mid-sized sedan has been a hit since it debuted five years ago, and instead of coasting, Ford has consistently improved the Fusion and added new features. The latest model earns high marks for an upgraded interior and practical features like the Sync hands-free multimedia system. And a hybrid model arrived this year, offering mileage in the high 30s with minimal tradeoffs and a reasonable starting price of about $28,000. Continuous improvement has made the Fusion one of America’s most popular passenger cars, with sales of the entire lineup rising 15 percent this year.

 

Honda Insight. Honda’s latest hybrid undercuts the standard-setting Toyota Prius by about $2,500, the right formula for people looking to save gas and money both. City mileage of 40 mpg falls below the Prius’s 51 mpg, but it still beats almost every other car on the road. Honda has sold about 18,000 Insights since the car went on sale in the spring, which has helped the Japanese automaker do better than the industry overall.

 

Hyundai Accent. It’s bland, slow, and uninspiring, but apparently those are welcome utilitarian virtues these days. There’s a bare-bones model (without air conditioning or a radio) for about $10,000, and a better-equipped version starting at about $13,000. But all trim lines offer side-curtain air bags and better reliability than used cars in the same price range. Sales are up 29 percent, the best performance of any small “B car.”

 

Hyundai Genesis. The first luxury car from this Korean automaker has earned deep praise, helping it reach No. 2 in U.S. News’s rankings of upscale midsize cars—behind only the BMW 3 series. And with a starting price of about $33,000, it’s considerably cheaper than the Bimmers,AudisLexuses, and other luxury makes it competes against. Sales of 18,000 units so far this year have added volume in a category where Hyundai didn’t even compete two years ago.

 

Kia Forte. This modest compact may not turn heads on the highway, but it does in the showroom thanks to a generous set of standard features at a surprisingly low starting price of about $14,000. The Forte, new this year, comes standard with steering wheel audio controls, an auxiliary audio jack, side-curtain air bags, stability control, auto-off headlights and many other features not found on competitors. The thrifty packaging has helped Kia sell about 17,000 units since the car debuted in the spring, positioning the Forte as a strong rival to top sellers like the Honda Civic and Toyota Corolla.

 

Kia Soul. Either you love it or you hate it, and enough buyers have embraced this boxy new hatchback to make it one of the more popular small crossovers since it went on sale earlier this year. Like other offerings from Kia and sister company Hyundai, the $15,000 Soul comes with impressive standard features for its price range, such as automatic headlights, side air bags, stability control, and a tire-pressure monitoring system. Options like pulsating lights in the speakers create cachet with young buyers. The funky upstart is outselling rivals like the Scion xBSaturn Vue, and Nissan Cube.

 

Lexus RX 350. The luxury crossover segment is getting crowded, but the RX got here early and still maintains a commanding lead, vastly outselling competitors like the Mercedes M ClassAcura MDX, and BMW X5. The RX is so popular that when Lexus redesigned the model this year, it barely made noticeable changes, limiting improvements to a slightly more spacious cabin, a minor bump in horsepower and other tweaks. The RX is also the only model in its category with a hybrid variant, which has helped boost sales by 8 percent this year.

 

Mercedes GLK. Mid-sized premium crossovers are one of the few segments where sales have increased this year, thanks to new models like the GLK—which is one of the lowest-priced Mercedesin any category, with a starting price of about $37,000. Mercedes has sold about 18,000 GLKs since the crossover debuted earlier this year, trumping challengers like the Audi Q5BMW X3, and Acura RDX.

 

Nissan Maxima. The third-largest Japanese automaker competes with Toyota and Honda by building a bit more excitement into its offerings, and the Maxima is a roomy family sedan that fulfills the formula with sporty handling and a brisk V-6 engine. A redesigned model that arrived last year has helped goose sales by about 5 percent in 2009, making the Maxima one of only three large sedans to see a year-over-year sales increase.

 

Pontiac G8. This speedy sedan arrived too late to save Pontiac, one of the four divisions GM plans to close down. But its blend of scorching speed, track-worthy handling and family-sized interior space has made it a favorite of reviewers nonetheless; in U.S. News’s car rankings, it even beats pure muscle cars like the Chevy Camaro and Ford Mustang, which have puny back seats by comparison. With Pontiac in the midst of a closeout sale, the G8 has become a short-lived hot seller among those looking for BMW performance, for about $10,000 less.

 

Subaru Legacy. Only two automakers, Hyundai and Subaru, have increased their sales this year. Hyundai has done it with an aggressive rollout of new models and cheaper prices than competitors. Subaru has stuck with the basics—practical, all-wheel-drive vehicles for people who value fun and activity. The Legacy, Subaru’s mainstay sedan, isn’t a grand slam, but it’s more stylish than competitors like the Honda Accord and Toyota Camry, with strong performance for the price. A new redesign this year has helped boost sales by 15 percent.

 

Toyota Venza. This quirky hatchback is half-sedan, half SUV, with better road manners than utilities built for off-road use. The Venza doesn’t have a third-row seat, but apparently plenty of families are content with a spacious, five-passenger hauler loaded with innovative storage features. The Venza’s starting price of about $27,000 and mileage in the low 20s compares favorably to competitors like the Ford Edge and Mazda CX-7, helping Toyota sell about 45,000 units in the Venza’s debut year.

 

Volkswagen CC. Despite a price that can climb out of VW territory and into Audiland, the CC is popular with buyers looking for the comfort of a sedan with a bit of panache and excitement. The CC is the sleeper in VW’s lineup, sandwiched against the upscale Passat, but it’s one of few near-luxury sedans showing any moxie this year. While overall sales of premium mid-sized cars are down about 24 percent in 2009, VW has sold about 18,000 CCs since introducing it late last year, gaining sales at the expense of other brands. In a shrinking market, that’s often the only way to succeed.

Kbb.com: New-Car Shoppers Show Increased Interest in Audi, Ford, Hyundai

Latest Market Intelligence Shows Significant Year-over-Year Gains in Brand Consideration

IRVINE, Calif., Nov. 12 , 2009– According to the latest Kelley Blue Book www.kbb.com Market Intelligence Brand Watch study and Market Watch report, over the past year in-market new-car shoppers have shown increased interest in the Audi, Ford and Hyundai brands. According to the Q3 2009 Brand Watch study, significant year-over-year brand consideration gains were made by Audi in the luxury SUV/CUV segment, Ford in the non-luxury SUV/CUV and truck segments and Hyundai in the luxury sedan/coupe/hatchback segment. Kelley Blue Book Market Watch report data also reveals significant increased year-over-year traffic to new-car information on kbb.com for all three brands.

According to the latest Kelley Blue Book Market Watch report, all three of the aforementioned brands have seen traffic gains to their new-car pages on Kelley Blue Book’s kbb.com when comparing October 2009 to October 2008. Audi saw a very significant year-over-year increase of 39 percent, while Ford climbed 30 percent and Hyundai climbed six percent.

When comparing Q3 2008 to Q3 2009 in the Brand Watch study, Audi consideration has more than doubled in the luxury SUV/CUV segment (from seven percent to 15 percent). Ford has made similar significant year-over-year consideration gains in the non-luxury SUV/CUV segment (from 28 to 40 percent), as well as the truck segment (from 53 percent to 62 percent). Hyundai also has shown a year-over-year brand consideration improvement in the luxury sedan/coupe/hatchback segment (from 13 percent to 18 percent).

“The latest Kelley Blue Book Market Intelligence data shows the tangible results that can be attained when a brand comes to market with products people like and back it up with strong marketing support,” said James Bell, executive market analyst for Kelley Blue Book’s kbb.com. “Audi has seen great success in the past year with its Q5 and Q7 utility vehicles. Ford has a strong line-up with its popular utility vehicles like the Edge, Escape, Flex and F-Series trucks, not to mention its new Taurus and Fusion sedans. At the same time, Hyundai has made significant gains in changing consumer perception of its brand, especially with its entry into the luxury market with the Genesis sedan and coupe.”

Ford and Audi also were among the top five upward-moving brands in terms of share of market on Kelley Blue Book’s kbb.com for the month of October 2009 when compared to October 2008. Ford’s gains were led by significant interest in the Taurus, Fusion and F-150 SuperCrew Cab, and Audi’s gains were driven by significant interest in the Q5.

The Q3 Kelley Blue Book Market Intelligence Brand Watch study was fielded to 3,018 in-market new-car shoppers on Kelley Blue Book’s kbb.com from July 1 – September 28, 2009. Kelley Blue Book’s Brand Watch is an ongoing study tracking and trending consumer perceptions, detailing strengths and weaknesses of makes within each segment.

Black Friday: Best day to buy a car

NEW YORK (CNNMoney.com) — When people think of Black Friday shopping, they usually think of things like flat screen TVs, toys and sweaters. Now you can add cars, trucks and SUVs.

Black Friday, the day after Thanksgiving, is the best day to buy a car, according to car pricing researchers at the Web site Truecar.com.

Analysts looked at day-by-day car pricing for the last several years. That data revealed that discounts on Black Friday are, on average, the biggest of the year.

“The discounts from dealerships, as well as manufacturers’ incentives, generate the highest discounts of the year on Black Friday,” said Jesse Toprak, an analyst for Truecar.com.

Unlike typical Black Friday sales where customers know exactly what they’ll pay for an item, car prices are individually negotiated the day of the sale, so it’s difficult for customers to know ahead of time they’ll be getting a deal. But there’s been a clear trend, Toprak said.

The average new car discount on Nov. 27 is projected to be 7.5%. The average discount the day before and after is expected to be just over 6%. On a typical day throughout the year, car shoppers usually pay about 4.7% less than the sticker price.

Truecar.com projected particularly large Black Friday discounts on certain models. For instance, consumers should be able to pay about 28% off sticker price for a 2009 Suzuki SX4 compact car, 26% off for a 2009 Nissan Titan or Ford F-150 pick-up or 20% off a 2009 Hyundai Sonata sedan.

Getting in on the Black Friday madness

Car dealers are trying to get a piece of the Black Friday shopping frenzy, Toprak theorized, and that may to lead to the bigger discounts found in the data.

“There’s a lot of noise in the market that day, and we have to stand out,” agreed Brian Benstock, general manager of New York City’s Paragon Honda.

Paragon Honda will send bicycle riders dressed in gorilla costumes to a nearby Best Buy store, Benstock said. The gorillas will be draped in sandwich-board signs advertising car deals available just down the road.

Paragon Honda will also be relying on more traditional advertising methods to pull customers in, Benstock said, including TV and print ads touting a “$5-a-day” Honda Civic. (That’s a $149 a month for a 30-month lease with $1,999 down.)

Michelle Primm, managing partner of Cascade Auto Group in Cuyahoga Falls, Ohio, said her dealerships don’t usually do big, splashy ads, except on the Friday and Saturday after Thanksgiving.

“Those are the only two days when we buy full-page ads in the paper,” she said.

Primm says her dealership does get more business on Black Friday although according to Truecar.com’s Toprak, average dealership traffic doesn’t tend to be particularly high that day, said Toprak.

“Dealerships always spend a lot of money on marketing for that day,” said Toprak “but for some reason it’s not a particularly big day for car shopping.”

That may be part of the reason for extra-big discounts, Toprak theorized. Dealerships that aren’t getting the business just keep trying harder.

Ford, Subaru, VW win top safety picks

 

NOTE: SAFETY IS THE NEW FRONTIER, THAT’S WHY FORD BOUGHT VOLVO. LOOKS LIKE IT’S PAYING OFF.=DP

Wed., Nov . 18, 2009

WASHINGTON – Ford, Subaru and Volkswagen sit atop the U.S. insurance industry’s annual list of the safest new vehicles, according to a closely watched assessment used by car companies to lure safety-conscious consumers to showrooms.

The Insurance Institute for Highway Safety awarded its “top safety pick” on Wednesday to 19 passenger cars and eight sport utility vehicles for the 2010 model year. The institute substantially reduced the number of awards compared with 2009, because of tougher requirements for roof strength.

Ford Motor Co. and its Volvo unit received the most awards with six, followed by five awards apiece for Japanese automaker Subaru and German automaker Volkswagen AG and its Audi unit.

Chrysler Group LLC received four awards followed by two each for Honda Motor Co. and General Motors Co.

Toyota Motor Corp., BMW AG, Mazda Motor Corp. and Mitsubishi Motors Corp. were shut out in the annual IIHS review.

Ford Taurus
Ford’s recipients include the Ford Taurus and Lincoln MKS passenger cars and the Volvo S80 and C30 passenger cars and the XC60 and XC90 SUVs.

Ford said in a statement it is “committed to providing customers with safe vehicles for a broad range of real-world crash conditions.”

Subaru recorded winners with the Subaru Legacy, Outback and Impreza cars and Tribeca and Forester SUVs. Subaru was the only automaker with an IIHS winner in all four vehicle classes in which it competes.

The automaker, which has bucked the brutal U.S. sales market with a 13 percent increase during the first 10 months of 2009, attributed its safety success to a unique engine design that sits low in the vehicle chassis and moves down and under occupants in a frontal collision.

Tom Doll, executive vice president and chief operating officer of Subaru of America, said the awards were a “tribute to the engineering that goes into Subaru products.”

Volkswagen scored with the 4-door versions of the Jetta, Passat and Golf, the Audi A3 and the Volkswagen Tiguan, a small SUV. Mark Barnes, Volkswagen of America’s chief operating officer, said the “safety of our cars is of the utmost concern, from the initial design stages all the way through the maintenance procedures at dealerships.”

Chrysler won the award for the Chrysler Sebring and Dodge Avenger sedans equipped with optional electronic stability control, the Dodge Journey midsize SUV and the Jeep Patriot with optional side thorax air bags.

Scott Kunselman, Chrysler’s senior vice president-engineering, said the awards underscore the Auburn Hills, Mich., automaker’s “engineering capability and leadership in occupant protection.”

GM and Honda
General Motors Co. and Honda Motor Co. both received two awards. GM was recognized for the Buick LaCrosse and the Chevrolet Malibu while Honda won for 4-door versions of the Civic with optional electronic stability control and the Honda Element.

Other winners included the Nissan Cube, the Kia Soul and the Mercedes C Class.

The vehicles are selected for best protecting motorists in front, side and rear crash tests based on Institute evaluations during the year. The vehicles are required to have electronic stability control, or ESC, to qualify for the award. Earlier this year, the Institute said vehicles would need to receive its highest score in its roof strength evaluation to qualify the safety pick designation.

“With the addition of our roof strength evaluation, our crash test results now cover all four of the most common kinds of crashes,” said Institute president Adrian Lund. “Consumers can use this list to zero in on the vehicles that are on the top rung for safety.”

The Institute awarded its top prize to 94 vehicles in 2009 and attributed the decline in awards this year to the roof strength requirement. The Honda Accord and the Ford Fusion both dropped off the list because 2010 versions did not earn high enough scores on the roof test.

The Toyota Camry would have made the list, the Institute said, if it had received the highest rating in rear crash protection. The Institute said the Camry’s seats and head restraints were rated marginal for protection against whiplash injuries.

 

Troubled GMAC Is Making It Look Easy For Rival Ford Credit

Troubled GMAC Is Making It Look Easy For Rival Ford Credit

By Jim Henry | Nov 18, 2009

The ongoing problems at GMAC Financial Services are in sharp contrast to rival Ford Credit.

The contrast points up the fact that avoiding bankruptcy confers some advantages on Ford Motor Co. (F) after all, even though bankruptcy in some ways has served GM and Chrysler well — especially since GM and Chrysler were able to write off much of their pre-bankruptcy debt.

GMAC this week appointed a new CEO, Michael A. Carpenter, a GMAC board member since May 2009. Previously, he was CEO for a succession of financial companies, most recently Citigroup’s Global Corporate & Investment Bank (C).

Carpenter has his work cut out for him. GMAC’s disintegration started with subprime mortgages, but the finance company’s auto finance business has also been crippled in the recent past.

You can’t sell them if you can’t finance them,” is a truism in the auto industry, but GMAC nearly dropped out of making new auto loans and leases at the end of last year. The U.S. Treasury Department provided GMAC with a $5 billion bailout in the last days of 2008, and allowed GMAC to redefine itself as a bank holding company.

Since then, GMAC has started a bank for consumers called Ally Bank. GMAC also has been slowly rebuilding its business with new loans and a limited amount of leasing for GM, and also for Chrysler dealers and customers.

In the third quarter of 2009, GMAC made $7.7 billion in auto loans and leases. That was more than double the recent low point of $3.3 billion in originations in the fourth quarter of 2008, but it was down more than 40 percent from the year-ago quarter.

GMAC had a net loss of $767 million in the third quarter, an improvement over a net loss of $2.5 billion in the year-ago quarter. Meanwhile, Ford Credit reported net income of $427 million in the third quarter, up from $95 million a year earlier.

Poor performance at GMAC is a drag on former parent GM’s efforts to recover from bankruptcy in more ways than one. As a condition of GMAC’s government bailout, GM cut its stake in GMAC from 49 percent to 24.5 percent. Only 9.9 percent is held directly, the rest is held in an independent trust.

“A renewed GMAC is crucial to business and public sector efforts to bolster the U.S. auto industry, and we have a special obligation to the public to do everything we can to ensure GMAC succeeds,” Carpenter said in a written statement. Carpenter succeeds Alvaro de Molina, who resigned.

Car Shoppers Not Very Aware of Black Friday Auto Discounts, but Say They Would Take Advantage

 

IRVINE, Calif., Nov. 24  — Kelley Blue Book www.kbb.com, the leading provider of new- and used-vehicle information, today announces the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers, revealing their likelihood to purchase a new car on Black Friday (the day after Thanksgiving, Friday, November 27, 2009) and the effect of additional Black Friday-specific discounts and incentives on purchase timeframes.

When generally asked how likely they would be to purchase a new car on Black Friday, 55 percent of car shoppers said they were somewhat likely, and only 12 percent said they were very/extremely likely.

However, when asked how the availability of additional automotive discounts and incentives on Black Friday would affect their purchase timeframe, 32 percent of in-market new-car shoppers said they would definitely purchase a new car sooner than they had planned. An additional 65 percent said they would consider purchasing a vehicle sooner if additional Black Friday auto discounts and incentives were available.

New-car shoppers also revealed they are not very aware of any special Black Friday-specific discounts being offered by auto manufacturers and dealers. Only four percent of survey respondents said they were aware of such discounts and plan to take advantage of them to purchase a new vehicle on Friday, whereas the majority (67 percent) said they were not aware of any Black Friday-specific auto discounts, but would consider buying a new car if such deals were available.

Among in-market new-car shoppers who said they were not likely to buy a new car on Black Friday, 35 percent said they are waiting on better incentives and discounts, and 17 percent indicated that the incentives and discounts they are aware of right now simply are not good enough.

“The latest Kelley Blue Book Market Intelligence survey data shows that car shoppers are hungry for deals this Friday and would seriously consider buying a new vehicle then if the price was right,” said James Bell, executive market analyst for Kelley Blue Book’s kbb.com. “However, there is a perception gap about what special deals actually are available to new-car shoppers on Black Friday. This should motivate auto makers to heavily promote any special discounts or incentives so new-car shoppers can help positively contribute to the bottom line for manufacturers’ and dealers’ November sales.”

This Kelley Blue Book Market Intelligence Survey was fielded to 121 in-market new-car shoppers on kbb.com from November 20-23, 2009,

Advertising resurgence hits the spot for TV networks – L.A. TIMES

After pummeling traditional media companies for nearly two years, the advertising recession is showing signs of a recovery. TV networks — including Fox, CBS and ABC and such leading cable channels as TNT, TBS, USA, Bravo and Fox News Channel — have benefited the most as advertisers have been snapping up available commercial spots and agreeing to pay significantly higher prices than they did just five months ago.

“In challenging times, people go back to what they know, and what they know best is television,” said David Levy, president of sales for Turner Entertainment, which includes TNT and TBS. “It is a little too early to declare victory, but the market is definitely improving.”

The welcome news is the result of stronger-than-expected demand for TV advertising in the “scatter” market, in which advertisers frequently have to pay premiums for scarce available commercial time. It also represents something of a win for the networks, which gambled this summer that demand would pick up later in the year and held back a larger percentage of their inventory than in previous years, hoping to capitalize on the improved economy.

Fourth-quarter commercial sales have been propelled by retail chains hoping to ignite their holiday sales; technology giants Microsoft Corp. and Apple Inc., which have new products to promote; cellphone carriers such as Verizon, AT&T and Sprint, which are battling for customers; and even such financial firms as American Express, according to television executives and advertising buyers surveyed this week.

Such strong demand has made up for the weaker orders from other mainstay advertisers, including automakers, still reeling from weak sales, and Hollywood movie studios, which have fewer new movies to hype.

A fourth quarter described by one top network sales executive as “gangbusters” amazed even veterans who have lived through several economic cycles. Only five months ago, the industry was bracing for another dismal year as TV network sales teams were engaged in protracted negotiations with advertisers that were demanding that the networks roll back prices as much as 20%. Networks eventually agreed to trim rates about 5% to 8% to mollify advertisers and begin unloading their time.

But now, in some cases, advertisers have agreed to pay rates 10% to 35% higher than the prices established in June and July, when the networks sold the bulk of their time for the new TV season. In addition, advertisers that placed their orders in the summer are honoring their commitments. Network executives said that few advertisers have canceled their orders for commercial spots, in contrast with a year ago.

“We have all been surprised that the ad market has come back this soon,” said Gary Carr, executive director of national broadcast for the advertising firm TargetCast. The networks, he said, also face easier comparisons because last fall, with banks failing and the economy on the skids, companies were afraid to spend on advertising.

“A year ago, people thought the world was coming to an end, and the U.S. economy was falling apart,” Carr said. “But the world did not come to an end. Cars still have to be sold, and studios still need people to go see their movies. Advertisers have begun releasing the money that they have been holding onto all year.”

Even local TV stations — among the hardest hit by the slump in advertising spending — have received a lift, primarily fueled by stores that unleashed their holiday sales campaigns earlier in the season, according to television executives.

Not all media outlets have rebounded, however. Many small cable TV channels and Spanish-language television networks are still hurting, according to television executives. Newspapers, magazines and radio stations also continue to struggle.

“In many sectors, the news is still grim,” said Jon Swallen, senior vice president for research at TNS Media Intelligence, which tracks advertising spending. “And there is still a fairly large hole for these companies to dig out of before they get back to the levels they were a few years ago.”

Unexpectedly, online advertising also has taken it on the chin.

Many advertisers are no longer as eager to buy Internet display ads as they were two or three few years ago, when firms were steering millions of ad dollars to online sites.

“There is still a big push toward digital and online video, but the Internet display advertising market is challenged,” said Greg Kahn, senior vice president of strategic insights at advertising firm Optimedia. “There is so much clutter in the space, and advertisers have begun to question the effectiveness of those display ads.”

No one knows for sure how next year will shake out. Many advertisers are waiting for the post-Thanksgiving Black Friday and weekend shopping sales totals to be released next week before they make their decisions for the first quarter of 2010.

The strength of the November retail sales is viewed as important insight into the psyche of consumers.

“That’s when the decisions are going to be made about advertising for the first quarter,” Kahn said.

Some executives worry that the economy might sputter again once the government’s stimulus programs wind down, prompting consumers to rein in spending even further, and advertisers along with them.

Television executives, however, in a significant attitude change, say they are cautiously optimistic.

CBS, for example, already has sold 90% of its commercial time for the Super Bowl, which will be broadcast Feb. 7.

A year ago, NBC had to claw to find advertisers who were willing to shell out Super Bowl rates of $2.5 million to $3 million for a 30-second spot.

What’s more, few advertisers have canceled their orders for the first quarter. TNS’ Swallen also noted that there has been “a slight uptick” in spending recently by Detroit automakers General Motors and Ford.

But, he said, foreign automakers are not spending more than they did last year. And other executives said carmakers were a long way from reclaiming their mantle as leading advertisers.

“It’s not going to be a uniform recovery,” Optimedia’s Kahn said. “Some industries are picking up while others are decidedly down.”

Create Product Demo Videos that Get Social Media Attention: 6 Strategies to Increase Sales

SUMMARY: Looking for new source of traffic beyond the fierce battleground of the search engine results page? The combination of video content and social media can create a powerful new channel to reach potential customers.

See the six strategies an online guitar accessory retailer used to create product demonstration videos and share that content with blogs, video sharing sites and other third parties. The strategy captures 65,000 video views a day, and has doubled annual sales.

Aaron Miller, President, ProGuitarShop.com, sees online video as the perfect medium for selling the retailer’s boutique electric guitar effects pedals.

In late 2007, ProGuitarShop.com was primarily an eBay retailer struggling to build traffic to their website. Miller’s team created a new strategy that avoided focusing on search engines. Instead, they built traffic through social networks, mostly by video marketing through YouTube.

Two years and more than 550 videos later, the team captures about 45,000 unique video views daily on YouTube and between 15,000 and 20,000 on their website — all from a niche audience. Sales have doubled each year since the effort began.

“Two years ago, our website was nothing. It was not a viable revenue source,” Miller says. “Our growth is all because of the videos.”

To help other marketers do more with online video, we asked Miller to share six strategies that brought ProGuitarShop.com that growth:

Strategy #1. Use videos to highlight product features

Video offers an ideal way to explore product features and benefits that aren’t conveyed through photos or text. Consider creating videos that guide visitors through a product’s key features or demonstrate how it works.

For example, the team’s videos showcase the sounds and features that each guitar pedal offers. The demonstrations are not objective reviews — they carefully highlight a product’s good points and avoid its drawbacks.

“We don’t approach them as commercials, but we do approach them as marketing,” Miller says.

For musicians, the videos provide vital information on whether a product is right for them. It would be difficult to know if a pedal would give customers a desired result without first hearing and seeing it in action.

- Create a library

The team hosts its videos in a website library, even after they stop selling a product. There aren’t many free resources for this information, which positions ProGuitarShop.com as an industry resource.

- Use third-party social sites

The videos are posted to the team’s YouTube channel, website and on third-party sites (more on this below). Each YouTube page allows commenting, and the videos can be easily embedded into other websites or forums.

The team does not offer social features at their website. Instead, videos are featured on the homepage, product pages and in a video library without commentary.

Strategy #2. Consistently generate content

Providing a large library of content that appeals to a wide range of customers requires a regular stream of new videos. Miller considers this a vital tactic to his success. He estimates that ProGuitarShop.com posts at least one new video each day.

“We need to continually feed our audience consistent, relevant information in order to maintain our traffic.”

Posting at least one video per day, rather than five per week, is important.

“If you dump a bunch of videos at once, or only add them sporadically, you’ll lose your audience. You’ll lose everything. Or you won’t build anything,” he says.

Strategy #3. Select products carefully

Miller’s team does not create a video for every product they sell. Instead, products are chosen based on several factors, including:

- Business impact

Products that will likely provide a strong return on investment are given priority.

- Time in market

The team is more likely to create a video for a product they are the first to offer.

- Buzz and hype

Highly anticipated and demanded products are more likely to have videos. This strategy is part of the team’s social media focus. By showcasing a new product in video, they’re more likely generate traffic and later sales, Miller says.

“I might not necessarily make money on that product, but I might have lots of people talking about me online and my company’s name becomes better known, rather than just a result in a search engine.”

Strategy #4. Answer questions and interact

Commenting is a significant activity on social video sites like YouTube. Marketers should embrace the interactive nature of these channels.

Miller’s team captures the majority of their video views on YouTube. Although the ProGuitarShop.com website does not offer commenting or a forum, YouTube viewers are free to comment on the videos.

The team makes an effort to interact with people who comment. They often answer questions about products directly on YouTube.

This effort is less about customer service and marketing and more about encouraging discussion around the team’s videos and products.

“These guys that write comments are forum users,” Miller says. “We want people to talk about this all over the place.”

Strategy #5. Send videos to third parties

Sharing video content with other sites helps generate leads and brand awareness for your site.

Miller’s team regularly features their videos on more than 50% of their product manufacturers’ websites. These arrangements offer a great opportunity for the team, as the videos are branded through graphics and audio.

Smaller manufacturers such as Pigtronix, alongside larger companies such as Blackheart, host the videos on their websites. Some larger companies supplement the team’s costs or pay for videos to be made, Miller says.

- Bloggers

Keeping with their social media strategy, the team maintains a network of bloggers to whom they send videos. Miller says that bloggers often use them because they’re free content, and content creation is labor intensive.

“It’s a marketing effort on our part, but we’re also scratching their backs,” Miller says.

Strategy #6. Maintain high quality

Make sure the videos you create are both valuable to customers, and strong enough to convince other sites to host the content.

Miller’s team would not have achieved as much success if the videos were not high-quality. Manufacturers would be less likely to use them, and consumers would be less likely to share them.

To ensure quality, the team’s video demos are conducted by experienced professionals who take their time to:
o Pick a pedal
o Determine what type(s) of music it applies to
o Research its unique sounds
o Video tape the demo
o Write a script to describe the product
o Edit and upload

Sirius XM CEO Mel Karmazin on the auto business, satellite radio & talent

Sirius XM CEO Mel Karmazin was on PBS’ “Nightly Business Report” Wednesday evening, touting the future of the satellite radio business. With a business plan heavily dependent on new car sales, he insisted that auto sales are finally on the way back up.

“I think people are not buying 16 million cars a year, as has been the history over the last 10 years, but it’s higher than it’s been. We hit bottom. We seem to be on our way back. Our budget for next year is predicated on about 11 to 12 million car sales and based on yesterday’s sales, that is very much in line,” Karmazin replied when interviewer Susie Gharib asked about still-slow sales figures from carmakers.

She also asked about competition from Internet streams, with mobile broadband availability and those streams generally available for free to anyone with wireless access. Karmazin noted that Sirius XM has $2.5 billion in annual revenues, while the largest Internet radio company he knows of has revenues of around $100 million. His company is profitable and theirs isn’t, so he’s not very worried.

“Some people would say that’s just a matter of time that the satellite radio business model will be out of date. What do you say to that?” Gharib asked.

“I believe we will be the leading company in the audio entertainment space in the years ahead and it’s our position to lose and there’s nobody, nobody that can compare with the fact that we have these 135 channels in every single market in the United States and we have all of these commercial-free music channels and Oprah show and Howard Stern. We offer the best radio on the radio,” Karmazin replied.

So, what about Howard Steren, whose contract expires next year?

“Howard has been a very significant performer for us. He has to decide on whether or not he wants to continue. If he does, I would be doing everything I can to work out financial arrangements that are in our shareholders’ best interests to do a deal with Howard,” Karmazin said.

Gharib: “Can you afford to keep continuing to pay top dollar for people like Howard Stern or Martha Stewart giving the economics of this business?”

“Over my entire career, I’ve always heard that content is expensive. Well, yeah, content is very expensive and if you want to have great content, whether it be the NFL or whether or not it be Howard Stern, you have to pay for it. And my business model is always that I’d rather figure out a way to make money with the talent rather than not have them and compete against them,” Karmazin replied.

How the recession has changed US consumer behavior

While the downturn has certainly changed the economic landscape, it may also have fundamentally altered the behavior of numerous US consumers, who are now learning to live without expensive products. Many companies with strong premium brands are anticipating a rapid rebound in consumer behavior—a return to normality, as after previous recessions. They are likely to be disappointed.

New McKinsey research found that, in any given category, an average of 18 percent of consumer-packaged-goods consumers bought lower-priced brands in the past two years. Of the consumers who switched to cheaper products, 46 percent said they performed better than expected, and the large majority of these consumers said the performance of such products was much better than expected. As a result, 34 percent of the switchers said they no longer preferred higher-priced products, and an additional 41 percent said that while they preferred the premium brand, it “was not worth the money.”

As a result, a growing number of consumers are now in play. The percentage up for grabs varies by category and depends on how many consumers switch from higher-priced brands, their experience with cheaper ones, and the way they revise their buying intentions. We found, for instance, that only 12 percent of beer buyers switched to cheaper brands. Of those, 31 percent said that their experience was more positive than they had expected, which means that only about 4 percent of customers are in play. Among buyers of cold and allergy medicines, however, we found that more than 20 percent tried a lower-priced option, and 48 percent of those consumers said the experience was better than expected. That means 10 percent of the people who buy cold and allergy medicines are now in play.< p…>

The top 5 e-mail dos and the top 5 e-mail don’ts

The top 5 e-mail dos and the top 5 e-mail don’ts 

Top 5 Dos

5. Put important information in bold, so it’s easier to see. Likewise, if you’ve addressed an e-mail to several people and there’s an action for a certain person, bold his or her name when you address the issue. Use bold sparingly, though.

4. If action is required, say so at the start of the e-mail. Don’t tell a long story with the requested action at the bottom. This is called the BLUF method, but I also tend to call it “getting to the verb.”

3. Keep your signature short and professional. Lose the pithy quote and just include your title and phone number.

2. Keep the subject line relevant. If the topic changes over the course of a long thread, update the subject so it’s relevant.

1. Proof your e-mail before you send it. And make sure your spell checker is running.

Top 5 Don’ts

5. Don’t ever type anything in ALL CAPS, even to get someone’s attention. If you need to catch someone’s eye with something important, put it in bold.

4. Don’t include your entire team or your boss on every e-mail you send. Be selective.

3. Don’t send large attachments unless absolutely necessary, especially to a mailing list or distribution list. If possible, upload your files to the cloud, such as DropBox or MemoPal and provide a link.

2. Don’t send e-mail when you’re emotional. If you’re responding to someone that has made you angry, save the message in your drafts folder until you can proof-read it more objectively, and then send the e-mail.

1. Don’t try to be funny, especially to a mixed audience. The chances of being misunderstood are astronomical.

Cadillac’s Identity Crisis

Cadillac’s Identity Crisis: When Branding Won’t Die

by Melanie Warner

No one can dispute the power of the Cadillac brand. Its identity is so strong that it lingers in our cultural consciousness — and that’s precisely the problem.

First, Cadillac couldn’t shake the decades-old association with drivers “between the age of 80 and deceased,” as former Chrysler CEO Lee Iacocca said. Then a half a dozen years ago, the brand acquired new status among the hip-hop crowd, which enthroned the $60,000 Cadillac Escalade as the ride of choice.

It’s not that General Motors hasn’t been trying to change Cadillac’s image and broaden the cars’ appeal. The embattled company spent $81 million in the first half of 2009 on advertising, much of that going to an ad campaign featuring the sleek and sophisticated-looking CTS sport wagon. In a bid for younger audiences, Grey’s Anatomy star Kate Walsh sits behind the wheel and asks, “When you turn your car on, does it return the favor?”

Even so, marketing experts say the slick campaign hasn’t given the Cadillac brand the center of gravity it needs. GM acknowledged as much recently when it dumped Modernista, the ad agency behind the campaign, from the Cadillac account and embarked on a search for a new firm. GM will hear pitches from three agency candidates in January.

Meanwhile, 2009 sales through October are down 44 percent from the prior year. Rival luxury brands such as Lexus, BMW, and Mercedes saw their sales drop as well, but not nearly as much as Caddy’s. Lexus, the worst of the group, was off 34 percent.

So what’s the problem? Caddy’s current cars get great reviews, but they’re not moving off the lots. With that in mind, BNET asked four marketing experts what GM should do to make Cadillac the “Cadillac of cars.”

Steal a Page from Apple’s Marketing Playbook

David Murphy, co-president, director of brand innovation at Barrie D’Rozario Murphy

Relative to the other luxury automotive brands, Cadillac lacks that solid foundation that explains what it is. If you buy a BMW, people might guess it’s because you like precise performance. If you bought a Lexus, it’s because you like high value on top of perfect quality. For Mercedes, it’s engineering. A Honda or Toyota is dependability. The luxury brands in particular need to know what they stand for. I think Cadillac should stand for technology.

Cars are riddled with technology, but you’d be hard pressed to identify a brand that’s become the Apple of this category. Doing this requires a mind shift. Instead of boasting about brawn or horsepower, it’s about brain power. Cadillac needs to position its brand as being smart and having technology that actually helps you. It’s taking something that others have and rallying your flag around it — things like lane departure control and blind zone alert. But it’s not about whiz-bang gizmos for the sake of whiz-bang gizmos. It’s about using technology to create an image of being forward-looking, smart, and efficient.

I would exploit the fact that a designer is now running the brand. We live in a very design-savvy age. Bryan Nesbitt is a fresh face, and GM should use him extensively in PR and maybe even advertising. I think he could pull it off.

— David Murphy, co-president, director of brand innovation at Barrie D’Rozario Murphy

Go After Prime-Time Women

Marti Barletta, marketing to women expert, CEO of The TrendSight Group

Since women buy 54 percent of all cars, that’s the audience Cadillac should be going after: prime-time women in their 50s and 60s who have a lot of money and are still driving themselves to work, usually senior vice presidents of companies. They’re past driving little kids around in the back. They’re sick of driving stupid minivans and SUVs. They want some fun. Cadillac started doing some of that fun-to-drive messaging in their ads with Kate Walsh from Grey’s Anatomy. I think that’s smart, but GM could and should be doing much more to target these prime-time women.

The way to reach them is not on blogs and social media and twittering. Some 90 percent of the tweets on Twitter come from 10 percent of the people and most of those people are 20-35. A lot of marketers think buying dual audience TV shows where a lot of women are watching along with men is close enough. It’s not close enough. The best way to reach older women is through women-specific media, like More magazine.

— Marti Barletta, marketing to women expert, CEO of The TrendSight Group

Make the Customer, Not the Car, the Star

Julie Roehm, marketing consultant, Backslash Meta; former senior VP of marketing communications at Wal-Mart

We used to say “the car is the star.” Well, that time has passed. The customers are the stars, and it’s the car that helps them express themselves, their values, their needs, and their desire to look good. The consumers that you want to be your brand disciples need to be shocked, surprised, and delighted into changing their minds. When they do, they’ll talk in person, online, via mobile, and more, and spread the word for you like a Twitter wildfire.

Tactically, this means Cadillac needs more efforts that are participatory and interactive, not one-way push messaging. It’s more digital marketing, more social marketing, and more mobile communications to create better experiences that engage with the consumer. You need to talk with the customer daily and be transparent, which is something car companies have never been good at. Instead of old-school media, such as TV ads using worn-out slogans, Cadillac should try something as simple as giving 10 influencers an XLR (a high-performance convertible) and an iPhone, something that allows the customer to talk and be excited about the product.

The other big thing that’s hurt Cadillac is that GM has been over-marketing GM. At a minimum, get GM’s CEO off the air. Consumers want a Caddy, not a GM.

— Julie Roehm, marketing consultant, Backslash Meta; former senior VP of marketing communications at Wal-Mart

Hire Buzz Aldrin as Pitch Man

Mark Stevens, author of Your Marketing Sucks, and CEO of MSCO

Cadillac has gone from being a comatose brand to having some vibrancy, which is a tremendous achievement. But that’s not necessarily a good thing. Because being in buzzland means zero. The only thing you really care about is being in cash land. And since Cadillac sales are down, that’s a big acid test of what’s going on. A lot of the progress that’s been made is an illusion. You look at the ads and they look good. The cars look good and there’s a certain dynamism in the design, but you always need to be able to look at the cul de sac, which is where cars get bought in America. If you put a Cadillac into an upscale, middle-American cul de sac, it’s like, ‘Why do they have that? What the hell is this Cadillac thing?’ You have to justify it, and I don’t want to justify my car purchase. Most cars are bought based on perception. Right now every Cadillac’s a Hummer.

— Mark Stevens, author of Your Marketing Sucks, and CEO of MSCO

U.S. auto sales continued to creep out of the cellar in November

For the second month in a row, U.S. auto sales in November almost exactly matched the year-ago month.

That’s an improvement over most of 2009, in which nearly every brand in the U.S. market measured “success” as a shrinking rate of decline.

Car companies and auto industry analysts say the November results show a much-needed recovery is on a more solid footing. However, Ford Senior Economist Emily Kolinski-Morris cautioned that to consumers, “It won’t feel like a recovery,” until employment picks up.

U.S. auto sales were 746,928 in November, a virtual dead heat with the year-ago month, according to AutoData Corp. Year-to-date sales were down 24 percent from the year-ago period, to about 9.4 million.

Of the Detroit Big Three companies, Chrysler continues to lag Ford (F) and General Motors. That’s most likely because Chrysler’s lineup is more heavily skewed towards trucks, like the Dodge Ram pickup, which fell 37 percent for the month, despite lots of advertising. Overall, Chrysler sales fell 25.5 percent for the month, versus the year-ago month. Ford sales were virtually flat, down 0.1 percent. GM sales slipped only 1.5 percent.

The Seasonally Adjusted Annual Sales Rate in November was 10.9 million units, AutoData said. That was the second month in a row with a SAAR above 10 million, and the best month this year except for July and August, when “Cash for Clunkers” boosted sales. The SAAR is an estimate based on sales history, of how many cars the industry would sell in a year at the current sales rate, adjusted for seasonal variation.

What’s more, the domestic companies are putting their money where their mouth is and hiking production to meet somewhat stronger demand. The year-over-year comparisons are magnified by the fact that production was extraordinarily low a year ago. That’s the best evidence they believe the recovery is for-real.

Ford’s current production plan is 58 percent ahead of the year-ago period, said Ford U.S. Sales Analyst George Pipas. “It’s a big increase from last year, when we were in the eye of the hurricane,” he said in a conference call.

Brian Johnson, auto industry analyst for Barclays Capital, said in a newsletter for investors the increased production demonstrates, “the manufacturers do not see the November SAAR as an anomaly, but rather as part of an expected sales recovery which should pick up some additional steam in 2010.”

Subaru certain to set U.S. sales record in 2009, while other brands struggle

Subaru Passes 200,000 in U.S.; Next Up 300,000

Dec 9, 2009

Through November, Subaru’s U.S. sales were 193,578 in 2009, up 14 percent from the year-ago period, according toAutoData Corp. For the entire U.S. market, auto sales were down 24 percent in the same time frame, to about 9.4 million.

That makes Subaru a shoo-in to pass 200,000 units in the United States for the second time since the previous record of 200,703 was set in 2006. “We think we can sell 300,000,” said Subaru Executive Vice President Tom Doll, in a Dec. 8 interview. He added that’s not going to happen any time soon.

Subaru is even getting business where it wasn’t expecting it. For instance, many Subaru cars weren’t even eligible for the U.S. government’s Cash for Clunkers program last summer, yet Subaru sold around 17,000 cars through the program, according tospokesman Michael McHale. Not only that, they were virtually all first-time Subaru buyers, he said.

Subaru is attracting record levels of buyers who are new to the brand, McHale said. At the same time, brand loyalty is above average, according to J.D. Power and Associates.

Within the industry, this is typically depicted on a graph with one axis as high “conquests” versus low conquests, and the other axis high loyalty versus low loyalty. Subaru is in the coveted upper-right-hand quadrant, with high conquests and high loyalty.

According to the most recent J.D. Power Customer Retention StudySubaru loyalty was above the industry average, at just over 50 percent. That may not sound very high, but the industry average was only 48 percent. Honda was No. 1 at about 65 percent loyalty, but the numbers fall pretty sharply after the Top 5 brands, which did not include Subaru.

The alternatives all have their own distinct drawbacks. Low conquests and low loyalty are obviously not where anybody wants to be. It’s safe to say Isuzu, for instance, was in that space beforeIsuzu pulled the plug on U.S. sales earlier this year.

Other brands, like Kia, have good success attracting new people, but lower-than-average loyalty. That’s expensive, because it’s a truism that it costs a lot more marketing dollars to attract a new customer than to keep an existing customer. Keeping customers who otherwise would be forced to go elsewhere is a big reason why Kia is adding models in new product categories.

The other extreme isn’t any good either, even though on the face of it, extremely high loyalty sounds desirable. High loyalty and low conquests is where Cadillac and Buick used to be, before the latest generation of new products started to turn it around. They were sometimes jokingly called, “the last car you’ll ever buy,” because the age of the average buyer was so high.

TROUBLE AT TIGER INC.: Agent trying to save Tiger Woods’ empire

The man behind the billion-dollar brand is desperately trying to save Tiger’s financial empire, as his Gillette and Accenture deals now look vulnerable.

As Tiger Woods’ image gets tarnished by new daily accounts of dalliances, his workaholic agent, 42-year-old Mark Steinberg, has been scrambling. The goal: less to blunt press reports than to minimize the effect on the golfer’s $100 million-a-year cash stream.

Specifically, sources at two of Woods’s corporate sponsors told The Daily Beast that Steinberg has been working furiously to get them to issue public statements demonstrating that they “had full faith in Tiger and backed him completely.” Steinberg hoped the votes of confidence might help stem the tide of bad news and block any defections among his corporate endorsements.

Gatorade seized on the golfer’s travails as an opportune time to announce the break from a deal that had already gone bad.

The Daily Beast has learned that the strategy so far is working at Nike, but not at Gillette or Gatorade. Accenture might also be at risk. On Tuesday, one of Steinberg’s first priorities, Pepsi, whose Gatorade subsidiary signed Tiger in March 2008 to a five-year, $100 million deal, dropped the golfer, despite intense lobbying from Steinberg. Contrary to published reports that the break was strictly about poor sales—a few days before the now-infamous fender-bender, Beverage Digest reported that Tiger Focus’s sales were down a dismal 34 percent in a year—one insider at the company, who asked for anonymity, says that Gatorade seized on the golfer’s travails as an opportune time to announce the break from a deal that had already gone bad. Steinberg was desperate, says one Pepsi insider, to prevent Gatorade from making a decision that would leave the impression the deal had been scuttled because of Tiger’s personal affairs. (Gatorade’s unfortunate slogan: Is it in you?)

It is not clear whether Gatorade, who will otherwise have to pay Woods an early termination fee, might now rely on a “morals clause” to avoid any further payment. Jennifer Schmit, Gatorade’s senior manager for public relations, told me, “We don’t comment on specific sales numbers or details of contracts. We hope to be able to share 2010 plans soon.”

• The Daily Beast’s full Tiger coverageAdditionally, The Daily Beast has learned from an executive familiar with Gillette’s relationship with Woods that Procter & Gamble, Gillette’s parent company, doesn’t think Tiger is worth the estimated $20 million Gillette agreed to when it signed the deal in 2007. It is considering sending a formal notice to Steinberg that it wants to reduce its payout schedule starting in 2010.

Damon D. Jones, global communications director for Procter & Gamble Grooming, deflected any questions about possible renegotiation. “The terms of our agreement with Mr. Woods, like all our business partners, are confidential.”

“No question he will suffer a reduction in earnings, a whole bunch of sponsors will scale back, if not this year, next year, depending on the contract,” says Andrew Bateman, president of Interbrand, a leading international branding consultancy firm. “Because he was such a perfect promotional vehicle, shiny and bright, there was no hint of any risk at all with Tiger Woods, but there is now going forward. The leverage has moved to the sponsors.”

Steinberg appears to have had some success with the most critical component of Tiger Inc., Nike. An advertising executive familiar with the Nike endorsement contract told The Daily Beast that while Nike could terminate its contract—an estimated $105 million over five years—based on another morals clause, it would not do so. Woods’ camp built in a significant early termination penalty (close to $10 million according to the ad exec). And Nike’s golf line—nonexistent until their first deal with Tiger in 1996—is still one of its most profitable. Nike’s deal is unparalleled in sports sponsorship. It bought the rights to almost every aspect of the Tiger Woods brand, and a piece of almost every marketing appearance he made. Under its agreement, Woods is obligated to wear Nike apparel and gear, even when he’s pitching other products from other sponsors.

Beth Gast, Nike’s public-relations manager, told me, “We don’t disclose the nature of our sports-marketing contracts.” She then reiterated Nike’s public statement: “Nike supports Tiger and his family. Our relationship remains unchanged.”

Marketing experts cite technology and management consulting firm Accenture as another company that might be looking for an escape. The company’s slogan has been tailored to Woods: “Go on. Be a Tiger.” A senior officer at a rival company, who counts Accenture executives among his friends, told The Daily Beast that the company has already had “emergency” discussions about the Tiger deal. Moreover, Accenture is particularly concerned that so many of its ads are airport billboard ads, not as easily pulled as pending TV or radio spots.

“All of this has shaken his identity,” says Bateman, “everything he stood for in terms of performance, integrity, focus, dedication, commitment, things that firms like Accenture like to associate themselves with—well, it turns out he’s not only not perfect, he’s quite far from it.” Accenture isn’t likely to make a decision until early next year, but one ad executive doesn’t believe they’ll keep the contract even if Tiger significantly discounts his price. No one from Accenture returned calls or email.

Besides Nike, Steinberg’s efforts have yielded other successes. “Our strong relationship with Tiger for more than a decade remains unchanged,” said Electronic Arts in a statement to The Daily Beast on Monday. “We respect Tiger’s privacy, we wish him a fast recovery and we look forward to seeing him back on the golf course.” Steinberg has also reached out to luxury watchmaker, Tag Heuer, and AT&T, which has its logo on the side of Tiger’s golf bag. Both seem stable for now. Steinberg did not respond to messages for comment on Wednesday.

So how bad will it get for Tiger, endorsement-wise? Some marketing experts say he could see his income drop in half for a year or two—but that image rehabilitation will follow.

“You have to make people relate to him now,” says Miranda Sevcik, a partner in Media Masters, a Houston-based media consulting firm that specializes in crisis management, and whose most recent high-profile client was Conrad Murray, the physician at the center of the Michael Jackson death probe. “Everyone makes mistakes. The public is forgiving of people who own up to their mistakes.” She would put him on Oprah and Larry King after he’s finished addressing his personal demons.

“He’s revealed himself to be a bit of a bad boy, but Americans love a comeback,” adds Bateman. “If he can find a way to be a bit more human and more approachable, it might actually help him in the long run. He has to claim he is addicted to whatever his fault is and then go to rehab and come back and say, ‘I’m better now,’ and then apologize publicly, and start rebuilding his image.”

“He’s too valuable a product commodity not to come back,” he adds. “The only thing that could change it is if this somehow affects his game. If Tiger doesn’t stay at the top of his sport, he’s finished.”

Scion seeks second wind; Observers say innovation needed; line is to expand

Through October, Scion’s U.S. sales have fallen a resounding 50.6% versus 2008 — far more than Toyota’s corporate decline of 23.2%, worse even than the Chrysler Group’s 38% freefall.

Outsiders suggest the brand created to revitalize Toyota’s stodgy image may have lost its way, but Scion plans to expand its lineup and replace its mainstay tC coupe.

Scion debuted with hoopla in 2003. Developed by a team of young Toyota executives, Scion promised to sell a new kind of car in a new way.

The cars would be small, inexpensive and above all, cool. They’d win a new generation of buyers who dismissed Toyota as their parents’ car. Scion took guerrilla marketing corporate, teaming the appeal of indie rock bands with the engineering and sales savvy of the world’s most profitable automaker.

Scion launched with two cars: the xA, a little hatchback that never sold well, and the xB, a funky little box that quickly became the brand’s icon. It added the tC, which joined the xB as a second hit for the brand, in 2004.

Scion’s first act was a success, but it stumbled with the encore. The xD hatchback sold at about the same rate as the xA it replaced. The second-generation xB grew bigger and more powerful than the original, losing much of the first car’s hip club-goer appeal.

“Scion should be Toyota’s innovation factory — always at the cutting edge of where the auto industry is headed,” said Jim Hall, managing director of 2953 Analytics in Birmingham. “Scion should reinvent itself every five years.”

Early success may have undermined those change-the-system-from-within goals. Scion sales rose steadily, peaking at 173,034 in 2006 before beginning a three-year decline. Every automaker’s sales plummeted in 2008-09, but Scion dropped nearly 25% in 2007, the last of the auto industry’s boom years.

“Scion hasn’t been a standout for any product reason,” said Mike Bernacchi, a marketing professor at the University of Detroit Mercy. “There hasn’t been much innovation from Scion vehicles. It made an early splash, but hasn’t shown great legs.”

There’s a disconnect between Scion’s cars and its marketing message, said Rebecca Lindland of IHS Global Insight.

“Generation Y,” the 25- to 31-year-olds Scion targets, “doesn’t like to be patronized,” Lindland said. “You can’t force guerilla marketing onto a product that doesn’t appeal to them any more than you can give yourself a nickname.”

Scion scored some notable successes, however. The median age of Scion buyers — 47 — is second lowest among all brands, said Alexander Edwards, president of Strategic Vision, a San Diego research firm. However, it has trended steadily older since being an industry-leading 41 in 2006, he said. The median age of all new-vehicle buyers in 2009 was 54.

Scion’s internal figures show a lower median age, and three-quarters of Scion buyers are new to Toyota Corp., said Scion Vice President Jack Hollis. “We have the youngest customers in the industry.

“Scion’s not about sales totals,” Hollis said. “It’s about getting a new type of customer.”

Scion was initially conceived to have a two- or three-vehicle lineup, but it’s going to grow.

“My goal is to expand,” Hollis said. “There’s no way to say if it will be four, five or six models. We’ve got to figure out what’s the next type of buyer we want to reach and develop vehicles for them.”

Scion’s goal was never to keep buyers for a lifetime, but to feed them into a lifetime as Toyota and Lexus owners.

“They started with a very innovative and aggressive idea,” said Stephanie Brinley of AutoPacific. “When the first vehicles were successful, they got nervous about losing sales and lost the innovation.”

Scion’s next defining moment is to come when it replaces the sporty tC in 2010.

“Creating a brand to feed buyers into Toyota and Lexus is risky,” Lindland said. “If it doesn’t work, you’re committed to a brand that loses money. We’re not sure how many additional vehicles Toyota has sold because of Scion.

“Just because a brand has a mission, that doesn’t mean it will succeed.”

Mercedes-Benz is No. 1 in Customer Retention

Mercedes-Benz is No. 1 in Customer Retention

Dec 11, 2009

JIM HENRY

Mercedes-Benz was No. 1 in yesterday’s J.D. Power and Associates 2009 Customer Retention Study, capping a few years of struggle, relatively speaking, for one of the world’s most prestigious brands.

In journalism school they use the figure of speech, “Dog bites man,” for a routine occurrence that’s not newsworthy on the face of it. Journalists are encouraged to pursue unusual angles, like, “Man bites dog.”

For Mercedes-Benz to be No. 1 in customer loyalty is a “Dog bites man” story. It’s what you would expect, considering the brand’s reputation. But for a while there, customer loyalty for Mercedes-Benz was a “Man bites dog” story, because other brands were on top.

In 2005, Mercedes-Benz was No. 8 in the J.D. Power study, behind plebian brands like ChevroletHyundai and Ford. I was working at Mercedes-Benz then, and make no mistake, being that far down the list galled and worried the Mercedes-Benz people.

A closely related problem was that Mercedes-Benz was having some well-publicized quality problems, including unflattering coverage inConsumer Reports. Now, that was a real “Man bites dog” story.

Mercedes-Benz quality was way below industry average in the 2006 J.D. Power Initial Quality Study – just below Kia. Since then,Mercedes-Benz has clawed its way closer to the top in IQS. In the 2009 IQS, Mercedes-Benz was No. 6, ahead of Toyota. In 2008, it was No. 4 in IQS.

As quality improved, so did customer retention. Mercedes-Benz was No. 8 again in the 2006 Customer Retention Study; No. 6 in 2007; No. 4 in 2008. The difference in rankings statistically is generally not that great, but symbolically of course, it’s nice to be No. 1 in anything.

To be No. 1 in customer retention has to be especially gratifying, since as I noted earlier this week, it’s proverbially more expensive to recruit a new customer than it is to keep an existing customer – although to be a growing brand, of course you have to do both.

Chart: J.D. Power

More women seal the deal as car-buying and selling demographics shift

Michelle Brown knows how much clout women have when they walk into a car dealership. It’s the nuts-and-bolts basics that Brown, one of the Lia Auto Group’s top performers, drummed into her male associates.

“I’d tell them, ‘You didn’t look at the woman directly. You have to make eye contact,’ ” said Brown, an 11-year industry veteran who consistently ranks as the company’s top Infiniti salesperson.

Women now account for 65 percent of all U.S. new-car sales and 53 percent of all used-car sales. And even when they’re not closing the deal themselves, women influence 95 percent of all vehicle purchases.

“We’ve seen a shift,” said James Goyette, general manager ofMohawk Honda. “Time and time again, we hear men say, ‘I have to check with my wife.’ Not as many women say they have to check with their husbands.”

Portable People Meters Radio Reveal : American men have a naughty little secret

REVEAL. Sometimes, they like to relax with a little Céline Dion. Professed classical music fans have one, too: as it turns out, they don’t tune into classical radio nearly as much as they claim.

These are two of many findings shaking up the radio industry as it converts from measuring ratings through surveys to monitoring listeners electronically using so-called Portable People Meters.

As radio executives are discovering, what people say they do and what they actually do is different — especially where “My Heart Will Go On” is concerned.

That more men are mellowing out to Air Supply than are willing to admit it is a curious discovery, but the new system has serious repercussions, especially for classical radio. When 12 major areas, including New York and Los Angeles, switched to the system last year, classical radio’s market share fell 10.7 percent in those areas, a significant drop, according to a study by Research Director, a ratings consultancy.

The numbers are part of what an industry consultant, Marc Hand, calls “a smorgasbord of issues” facing commercial classical music stations. In the last year, major commercial stations including WCRB in Boston and WQXR in New York were sold to public radio operators, while KFUO in St. Louis was sold to a Christian broadcaster. (WQXR was owned by The New York Times Company.) There are now only about 20 commercial classical stations in the country, said Mr. Hand, the managing director of Public Radio Capital, which advises nonprofit stations on acquisitions.

The decline has concerned classical fans, who see radio as an important civilizing force.

“It’s education but also expanding horizons, understanding the existence of a whole host of art forms that are extremely related and important to our cultural history,” Joseph W. Polisi, president of the Juilliard School, said.

Talk radio, a largely conservative format, turns out to have fewer fans than previously thought. Talk radio’s market share declined 2.6 percent in the study of areas where the meters were used. Talk radio (excluding sports and news) is about 80 percent conservative, says Michael Harrison, publisher of the trade magazine Talkers. He cautioned that the sample size in markets using meters was relatively small.

The new ratings have contributed to other shifts. Mainstream formats like oldies, news and country have fared better.

Meanwhile, smooth jazz has hit a low note. Clear Channel jettisoned such programming from eight of its stations after dismal ratings. Some Spanish-language stations’ ratings declined sharply — at Univision’s KLVE in Los Angeles, for example, ratings fell 54 percentin the first quarter of 2009 from the same period the year before, leading it and other broadcasters to testify before Congress on Dec. 2 that the new system is discriminatory.

The television industry had switched from diary entries to metered ratings in 1987 and had seen similarly surprising changes — young men, for instance, watched cartoons much more heavily than they had reported doing, said Gary Holmes, a spokesman for Nielsen. But it took the radio industry almost two decades to catch up.

Since the 1960s Arbitron, the main radio ratings company, has relied on paper diaries. It currently asks about 800,000 people annually to log a week of listening habits. Problems have been numerous: people’s recollection was imperfect, if they listened to a station briefly they could forget it, and they might overstate listening to stations that they felt reflected better taste.

“People tended to look at it almost like an election — they would vote for the things they liked,” said Jaye Albright, an industry consultant with Albright & O’Malley, a radio consultancy.

In 2007, Arbitron formally introduced the Portable People Meter, a pagerlike device that about 57,000 survey participants carried around all day. After introducing the device in 2007 in two cities, Philadelphia and Houston, last year Arbitron moved it to 12 major areas including New York, Chicago and Los Angeles, added 19 more this year and expects most major markets to be measured by the end of 2010.

“Advertisers were demanding it,” said Alton L. Adams, Arbitron’s chief marketing officer.

Now, with a year of data from the early converts, researchers are finding intriguing patterns. Men had been thought to make up 34.7 percent of the soft-rock audience, according to Arbitron Radio Today 2008, based largely on paper entries. This month, Research Director and the publication Inside Radio released their analysis of meter-only cities from July through October, showing men make up 40.1 percent of the total light-rock audience, a jump of 16 percent. “It caught people by surprise,” said Charlie Sislen, president of Research Director.

“It may be a case where men didn’t want to admit they were listening to a light A.C.,” said Greg Ashlock, president and market manager for Los Angeles at Clear Channel, using industry shorthand for adult contemporary, or soft rock. “ ‘No, I don’t listen to Céline Dion. I’m a sports guy.’ ”

Some male soft-rock listeners say they simply like the music.

Ezra Feinberg, 33, a psychologist in San Francisco, listens to KOIT, a soft-rock station, on his commute. “One in 10 songs on soft-rock radio resonates, but it really resonates,” he said.

Then there are the unwilling listeners, like Reece Carter, 40, an architectural designer in Roswell, Ga. Mr. Carter dreads driving with his wife in the evening, when she tunes into the love-laden Delilah show on B98.5 “My wife gives me my recommended daily allowance,” he said.

The surprising gender makeup of soft-rock listeners has already shifted some advertising dollars.

“I see it gaining traction with Pontiac, GMC, Dodges,” said Joe Puglise, president and market manager of Clear Channel Radio New York, which owns Lite-FM. However, he said, it was a subtle change. “It’s not like all of a sudden on Lite-FM we’re getting biker bars and Harley-Davidson dealerships,” Mr. Puglise said.

The makeup and size of Arbitron’s sample is an issue for some Hispanic and urban broadcasters, who say metered readings undercount minority audiences and hurt their stations disproportionately. Mr. Adams of Arbitron said the company was responding to concerns by adding more panelists who had cellphones rather than landlines, and investing in in-person coaching to make sure all panel members use the devices correctly.

Whatever the problems with the new system, it is becoming the standard for ratings among advertisers. Researchers say that, in general, niche stations suffer under the meter. Mass stations do well because they have a broad signal and because they are played at businesses and in malls. Niche stations’ fans may not appear as frequently in the metered ratings because of the smaller sample size.

“The meter is sort of making radio more homogenous, because the stations that do best are the mass appeal stations,” Ms. Albright said. That may be another explanation for why men are listening to soft rock.

“There’s no good radio,” said Jason Pontius, 39, a technology executive in Oakland, Calif. “Soft rock radio is like, ‘Am I really listening to this?’ But it’s the best thing that’s on.”

NADA Used Car Guide: Trade-In Values of Trucks Likely to be Strong Next Month

NADA Used Car Guide: Trade-In Values of Trucks Likely to be Strong Next Month

December 17, 2009

McLEAN, Va. — During the first month of 2010, several used-truck segments are expected to show year-over-year value increases, according to NADA Used Car Guide, which also indicated that most car segments will still show double-digit decreased compared to January 2009. 

For instance, the NADA average trade-in values of large SUVs is expected to jump 16.61 percent from January 2009, large pickups are expected to increase 14.16 percent and midsize SUVs are projected to climb 6.74 percent. 

“This unprecedented increase is again a result of lower fuel prices, which brought consumers back to used trucks, driving up prices from the low points when demand for these segments was virtually non-existent,” explained Jonathan Banks, senior director of editorial and data services for NADA Used Car Guide.

“The decline in overall used supply has also been an important driver in the strength of used-vehicle values, especially for the truck segments,” he added. 

Banks said these have climbed due to increases in demand and shorter supply, which has been caused, in part, by the following: 

—The stabilization that occurred in January of previously volatile gas prices. “As gas prices fell, renewed consumer interest in the above segments increased demand, even while supply remained static or, in some cases, fell,” Banks noted. 

—Strong wholesale demand. ”Traditionally, dealers relied on trade-ins for their used vehicle inventory,” he continued. “However, lower than average trade-in volume, driven by a lower supply of leased returns and sluggish new vehicle sales, has sent record numbers of dealers to auction to secure used vehicles. Increased demand for fewer units has created higher wholesale prices.”  

—Wholesale demand was also boosted by such market factors such as the credit crisis, limited automaker incentives, reduction in new-vehicle production and CARS.  

“Elevated prices on the wholesale side eventually translated into higher retail values,” Banks continued. “Fewer used vehicles in the supply chain caused used-car prices to rise as demand rebounded, especially in the light truck and SUV and CUV segments.”

Meanwhile, car values are expected to continue to be softer in January across all segments, according to NADA Used Car Guide data. For instance, entry compacts are projected to be down 28.96 percent year-over-year in January, and intermediate compacts are projected to be off 24.84 percent. 

Banks said there has been a slowdown in passenger cars’ Used Car Guide values this year due to a number of factors. 

“Used Car Guide values for the majority of passenger cars were down for CY 2009 on a year-over-year basis, reflecting the generally poor condition of the economy, overall market volatility, and of the remarkable shift in demand from cars to trucks/SUVs over the course of the year as fuel prices receded from their 2008 highs,” Banks observed. 

Moving on to look at initial December wholesale prices, AuctionNet data suggests that most segments have been relatively stable in the first week of the month compared to November. 

Van prices were down just less than 2 percent from November and CUV prices dipped more than 0.5 percent. Cars and pickup climbed less than 0.5 percent, while SUVs appeared to be relatively static from the previous month. 

As far as NADA’s Weekly Historical Volatility Measure, the prices of compact CUVs have been the most volatile in the first week of December with an HVM score of 17.1 percent. They were followed by large SUVs (16.6 percent), large pickups (15.8 percent), intermediate compacts (13.6 percent) and midsize vans (12.9 percent). 

The set average was 12.2 percent. 

Conversely, the segment with the least volatile prices was midsize CUVs, which had an HVM of 8.2 percent. Also below the average were luxury large SUVs (8.6 percent), luxury large (8.9 percent), intermediate midsize (10.3 percent), intermediate large (11 percent) and premium luxury large (11.3 percent). 

Moving on, Banks offered more insight into the market, adding: “October-to-November transactional sales averages declined gently which may indicate that the worst of the typical autumn/winter sales decline reached bottom in October.  

“When put into historical context, November sales averages were fairly strong, excluding the Thanksgiving holiday week,” he continued. 

Banks went on to note that initial returns of many 2009 models were “very low” as December began. 

“This low volume and relatively strong dealer and consumer demand has helped maintain price strength across the board,” he explained. “However, NADA believes that as a more steady used supply manifests itself, prices will moderate and return to the more traditional historical gap between wholesale and retail prices.” 

As far as January goes, NADA expects the used market will be somewhat static. Banks pointed out that on the new-car front Toyota has boosted production. More specifically, this was done to tackle inventory shortages. To meet the demand, the automaker has added shifts at its San Antonio, Texas, plant and started overtime at its other plants in North America. 

“This indicates that despite a down (but slightly improving) economy, there are still supply shortages, which should help keep used prices strong in the near-term,” Banks shared. 

“With this said, NADA does not anticipate the same degree of year-over-year strength on most trucks because similar increases in used-truck values would see them priced higher than comparable new vehicles,” he concluded.

U.S. auto sales may rise 20% on pent-up demand as recovery starts

U.S. auto sales will rise 20% in 2010, buoyed by pent-up demand and stronger credit markets, as the industry starts recovering from its worst year in almost three decades, a researcher said.

Deliveries will climb to 12.4 million from 10.3 million in 2008, the Ann Arbor-based Center for Automotive Research said Tuesday. U.S. sales were 13.2 million last year, after averaging 16.8 million this decade through 2007.

“No recession has ever been this long in terms of cumulative job loss,” Sean McAlinden, CAR’s chief economist, said at a briefing in Ypsilanti. “Will we ever see the 17 million sales levels we saw a few years ago? No, that was truly an automotive sales bubble.”

The forecast exceeded four projections by consultants and analysts for U.S. industry deliveries in a range of 11.3 million to 11.8 million light vehicles. Sales at those levels would enable General Motors and Chrysler Group to make money in the United States based on their plans to cut expenses.

Both automakers reorganized in bankruptcy this year. Chrysler has said it expects to break even in 2010 with industry sales of 11 million units and a 10% market share. In March, GM gave a target of paring expenses to the point where it could break even with industry volume at 10.5 million units.

GM and Chrysler “have done enough cost reductions to break even in North America,” McAlinden said. He said GM probably won’t reach that goal in 2010 because it still has 6,000 workers on furlough, inflating its costs.

Sales in 2010 will resume gradually, McAlinden said. “You’ll see lousy sales numbers through the spring and then it will break, but not through the roof.”

New poll: Media landscape shifting; Print in decline, Web growing,TV still on top

New poll: Media landscape shifting
Print in decline, Web growing, but TV still on top
TALLAHASSEE, Fla. – A newly released poll depicts a shifting media environment with traditional print media in decline, online media growing, and with television sitting atop the media heap as Florida’s most influential news source.

The poll underscored the crisis and challenge facing Florida’s struggling newspaper industry, whose readership is aging and shrinking.  Thirty-two percent of Florida seniors (those aged 65 or older) report that newspapers are their primary source of news, but only 10.7 of young Floridians (aged 18 to 34) say so. And while 79 percent of seniors say they read a newspaper daily, so do only 33 percent of young Floridians. Overall, 20 percent of respondents said newspapers were their primary source for news.

“As the shift from newsprint to the Web continues to grow, it will be critical for newspapers to effectively resolve how to best monetize their Web sites and generate the revenues that enable a strong, sustainable news-gathering operation,” said Ron Sachs, President and CEO of Ron Sachs Communications. “So far, newspapers have been able to use print advertising to subsidize their Web operations, but as newsprint subscribers continue to age and are not replaced, media organizations will have to embrace a new paradigm.”

In contrast to the travails of print, online news sources have a young and growing readership, as 28 percent of young Floridians reported that media Web sites are their primary source for news, compared to just 9 percent of seniors. Overall, 16 percent of respondents said Web sites were their primary source for news.

Television, however, remains the largest media source for Floridians in all age categories, with 56 percent of respondents overall rating it as their primary source for news. Fifty-four percent of seniors, 60 percent of those aged 50 to 64, 58 percent of those aged 35 to 49, and 52 percent of young Floridians rated television their primary news source.

“This poll illustrates that while online news sources are steadily replacing newsprint as the primary news source for a significant portion of our population, television is still king of media,” said Michelle Ubben, Chief Operating Officer and Partner at Ron Sachs Communications.  “Moreover, its reign appears likely to last several more decades as its dominance spans all age groups.”

Social media are also a growing sector of the media landscape. Thirty percent of respondents said they have a Facebook page, including 55 percent of young Floridians, 34 percent of those aged 35 to 49, 29 percent of those aged 50 to 64, and 11 percent of seniors. Of those with a Facebook page, 51 percent said they visited their page at least once per day.

The Facebook site appears to serve a business and professional function for many Floridians: While 56 percent of those with a Facebook page said they used it for primarily personal purposes, 44 percent said they often use their pages for business purposes, and 35 percent said they used the site primarily for networking.

“This blurring of the lines between personal and professional use of the Internet creates a challenge for employers in figuring out how to regulate this behavior during the workday,” Ubben said. “Employees on Facebook may be wasting time, or they may be cultivating business contacts – or maybe both. This ambiguity will take some getting used to for many employers.”

Other social media sites have much less presence in Florida. While 28 percent of Floridians said they have used the popular video site YouTube, only 4 percent said they have used the networking site LinkedIn, 3 percent said they have used the messaging site Twitter, and 2 percent have used the photo-sharing site Flickr.

The poll of 625 Florida adults was conducted by Mason-Dixon Polling & Research from Nov. 6 to 10. The poll’s margin of error is plus or minus 4 percent.

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Top 10 Integrated Marketing Trends for 2010

Top 10 Integrated Marketing Trends for 2010

1. Less will get done: until we learn to do more with less.
While the cutbacks may be behind us, those left standing have more work to do, and less time and money to get it done. Small ideas and individual channel tactics often consume more time than their worth. The only way to do more with less is to align remaining resources toward a single and powerful integrated marketing solution.

2. Marketers will mistakenly whack a medium of the marketing mix.
With reduced marketing budgets, something has to give. Unfortunately, marketers are making wholesale cuts to specific channels (i.e., print media). Can we afford to drop a medium from the mix? Does the Internet behave like print? Is the consumer experience the same for both media? Are the message formats the same? The answer is clear. Reduced resources should not come at the expense of an integrated, multichannel mix.

3. Marketers will rush to employ social networking strategies.
Marketers will mistakenly rush to hire social media “experts” to create social media experiences for brands. They’re missing the larger opportunity. Social networking is not a marketing tactic, nor is it a surrogate for the brand’s social experience. A brand’s social experience cannot be placed; rather, it is earned. Only consumers can decide what is truly “social.”

4. We’ll have more data and even less “understanding.”
We’ll have more data from credible sources: set-top boxes, foundations, academics, marketers and the media themselves. And the data will concur: the media world is highly fluid, interactive and quick to change structure and form. We are left with a real data problem: we can’t rely on past correlations to drive future decisions. I’d say we’re entering a “Wild West” era of integrated channel planning.

5. Lines between media will continue to blur.
In 2010, more prime-time television content will appear in more places than ever before. Fans will have multiple access points: live view, delayed views from a DVR, video on demand, Hulu, the network’s own Web sites, and shared distribution deals (i.e., DirecTV and NBC for Friday Night Lights). It is no longer clear where one screen medium ends and another begins. Maybe we’re starting to realize — it’s all a screen!

6. Push vs. Pull will become less relevant.
While marketers continue to debate the merits of push vs. pull marketing strategies, the issue may resolve itself. Clear lines between push and pull media no longer exist. The best content (both programming and commercial content) will increasingly become “push” and “pull” at the same time. We must refocus our efforts on creating experiences that offer both opportunities: to reach as many people as possible, but in ways that will invite their participation and their desire to share the experience with others.

7. Great content will travel at the “speed of share” while “average” experiences will evaporate.
Great content in any media channel can travel as fast as consumers are willing to share it with others. Consumers are the most powerful accelerant. They move content along with a simple behavior: the click. Their clicks travel at the high speed of broadband or 3G. The “Speed of Share” renders the speed of traditional content distribution obsolete. It’s like comparing real-time to slow motion! However, content will only travel at such speed if it’s worth sharing in the first place. There will be less tolerance for mediocre content, and consumers will have more means of disposing with, and/or avoiding it.

8. The Adult 18-49 demo will become even less relevant as a target cohort.
The media world for an 18-year-old is vastly different from that of a 49-year-old. Every year, the divide between Internet-raised and television-raised consumers becomes more profound. According to “Media Generations” (Martin Block PhD, Don Schultz PhD, and BIGresearch), today’s 18-49 demographic cohort contains four different media generations. We cannot continue to cloud our view of this complex truth by looking through the lens of a demographic that does not hold together.

9. Symbiosis will create interesting — and at times strange — partnerships.
The media landscape will be affected more by the laws of symbiosis than the laws of natural selection. Consider the relationship between YouTube and television: these seemingly competing channels quickly evolved into a symbiotic relationship. Just ask Tina Fey or Susan Boyle, and they will speak of the power of one medium to reinforce and amplify the other. We will continue to see emerging relationships among what appear on the surface as competing media channels.

10. The year 2010 will become the year of the “good idea.”
In the recent past, our conversations were dominated by media channels. In our hyper-focus on the dynamics of the media world, we may have taken our eye off the ball. Remember, media channels, by definition, serve only as pipeline for content. Without a good idea, content will evaporate. It’s that simple! Despite fewer resources, more diversity, and less certainty, I am advocating for good ideas to fuel integrated marketing outcomes in 2010.

(Source: Marketing Daily, 11/27/09)

ALLY RIVERA HOSTS : Search For The Most Beautiful Latina

KUDOS TO ONE OF OUR FAVORITE POWERHOUSE USA GIRLS ALLY RIVERA. ALLY HAS BEEN A TOP TALENT & PROMOTIONS PERSON FOR POWERHOUSE USA. FIRST EARNING HER STRIPES AS A PRODUCTION ASSISTANT & COORDINATING CASTINGS, LATER DOING PROMOS & WORKING EVENTS, AND FINALLY AS A ON CAMERA TV TALENT AS PART OF THE SEMINOLE POWER SPORTS DREAM TEAM.
 
ALLY IS A GOOD FRIEND AND ALOT OF FUN TO WORK WITH! WE WISH HER GOOD LUCK AS SHE GETS TO HOST HER OWN SHOW (SEE BELOW), WAY TO GO ALLY!
 
 
Search For The Most Beautiful Latina
For the past two years, PlayerXT has conducted the Search for the Most Beautiful Latina in the World.  They selected models from all over the Latin world and flew them to Las Vegas for the International Finals at the Hard Rock Hotel & Casino to crown the winners.  They  will be conducting that same search in 2010 in conjunction with Thunderbird Resorts and Fiesta Casinos who have properties in Peru, Guatemala, Nicargua, and Panama, also prime coffee capitals. The television show will be hosted by the lovely Maxim model  Ally Rivera. On January 14 – 15, Ally and the crew will kick off the 2010 Search at world famous Le Loft Night Club in Jaco, Costa Rica.

New focus for movie marketing Internet, mobile grab more studio spending

Just a few short years ago, when studio marketers were looking to get the most bang for their buck, the basic questions were simple: How much can we spend on TV? And which of the old reliables — billboards, newspaper ads in top markets — get the rest?

Today, marketing mavens are still building their promo plans around TV, but the old reliables are anything but.

Marketing remains as shrouded in secrecy as the inner workings of the CIA. And while studios are cutting costs across the board — slashing talent salaries, reducing the number of movies they finance and produce, and laying off staffers — they fork over as much as ever on marketing. But where they’re spending that money is shifting.

If a studio thinks a film has a chance at grossing north of $150 million domestically, it will lay out $100 million or more for a worldwide campaign. For a film that’s hoping to gross $50 million or more domestically, a studio will spend $30 million-$40 million.

In the first two quarters of this year, $1.7 billion was spent to promote theatrical releases, a 1.2% gain vs. the same period in 2008, despite the economic crisis, according to Nielsen Monitor-Plus. (Other sectors, including automotive and pharmaceuticals, were down by double digits.)

Television and radio remain the cornerstones of pic marketing spends, gobbling up 60% to 70% of a promo campaign’s budget. But with auds dipping into everything from text messages to Facebook to TV and the Internet — often simultaneously — the studios are spreading their marketing moolah wider, across multiple venues, with multiple trailers, multiple approaches and specific demos in their sights.

There are no longer general-interest campaigns. Studio promo efforts have become more targeted, looking to engage core audiences in key demos more directly and actively.

And film marketers have revived an old Hollywood showman’s tradition, the roadshow, in which stars and filmmakers make stops in multiple cities around the globe to tubthump their upcoming releases.

While the money spent on digital marketing has increased, it’s almost surprising the totals aren’t higher. In 2002, an estimated 1% of a film’s marketing budget was allocated to digital. A few years later, that figure rose to 4.4%, according to a 2007 MPAA report. Today, 8%-12% of the marketing budget is devoted to new media, such as Internet and wireless promotions.

And while studios spent about 14% of a film’s marketing budget on newspaper ads in 2004, and 10% as recently as 2007, they now allocate maybe 4%, according to studio insiders.

It’s a sign of the times that for “Avatar,” perhaps the most expensive movie ever made and a major year-end release, 20th Century Fox devoted at least 10% to promotion on the Web, while buying just a single full-page ad in the Los Angeles Times and the New York Times on opening day — significant, but modest relative to the movie’s size and scope.

Similarly, Paramount last summer took out only one full-page ad on opening weekend in the New York Times and the Los Angeles Times for the debut of “Transformers: Revenge of the Fallen.” When rival studios saw that “Transformers” wasn’t hurt by having virtually no newspaper presence — the film grossed $200 million in its first five days — they took note. Warner Bros. quickly cut back on its print campaign for “Harry Potter and the Half Blood Prince,” which bowed two weeks later and grossed $158 million in its first five days.

The downward shift in ad placement has huge ramifications for big-city newspapers, already pinched by declining readership and the loss of other key advertisers. Not long ago, the usual practice was to take out full-page or two-page (double-truck) ads on the Sunday preceding a film’s bow, then on opening day, and once or twice each weekend for the next few weeks. The Friday editions of major newspapers were stuffed with pages and pages of movie ads.

Today, the number of print ads touting films has dwindled sharply, even in the mainstay New York Times (where a double-truck ad can cost $175,000, while a full-page ad goes for $95,000) and Los Angeles Times (where rates are somewhat less than at the Gray Lady).

There is one demo that studios do still rely on newspapers to reach: older adults. In particular, prestige titles that are review-driven continue to use newspaper ads. Recent examples include “Fantastic Mr. Fox” and “The Lovely Bones.”

“Newspapers aren’t a decision-making medium anymore, except for older audiences and movies that are really review-driven,” one studio topper says.

Other marketing traditions, like static movie billboards, also have become an endangered species or have been shifted to supplement online campaigns, as Sony did with “District 9.” Studios still devote 8% to 12% of their total marketing campaigns on outdoor, but the number used to be closer to 20%.

It’s a reflection of the increasingly cluttered media environment that building awareness of a movie now demands more than just delivering a message passively to prospective audiences. It’s now about engaging them more directly.

Besides allocating more marketing money to new areas, studios are using fresh takes on old ones, such as the revived practice of the “traveling roadshow.”

With its relaunch of the venerable “Star Trek” film franchise this past summer, Paramount faced a key hurdle: overseas audiences weren’t traditionally “Trek” fans.

So the studio rolled out high-profile advance screenings of the J.J. Abrams film both domestically and abroad. It created splashy showcases in various countries from Austria, Belgium, Holland and Spain to New Zealand, and brought the filmmakers and stars along to do local media interviews. Director Abrams even traveled to Kuwait to show the film to U.S. troops. Par also held a handful of official “Star Trek” premieres around the globe, in Australia, Germany, London and the U.S.

The costs of such ground efforts vary quite a bit, depending on the scope of the campaign and the movie’s heft.

With a lower-budget marketing effort, aiming for less-splashy events, as was the case with “Paranormal Activity,” each city can cost about $15,000. But on a bigger-scale film with more talent participants, such as “Star Trek,” the cost of each leg of a roadshow can run to $100,000 or more. That adds up to better than $1 million overall for such multicity tours, be they international or domestic.

The payoff, though, is evident: “Star Trek” grossed $127.7 million internationally, considered a huge victory. (Domestically, where the franchise has a loyal following, the pic cumed $257.3 million).

Warner Bros. faced an equally tough challenge in taking “The Hangover” overseas, as American comedy is often a tough sell. Drawing from the same playbook that Paramount did, Warners held special “Hangover” screenings around the globe in many of the same spots “Trek” visited. “Hangover” became the top grossing R-rated laffer of all time, both domestically and overseas.

Back in the U.S., the studios are doing more word-of-mouth screenings and local promos, such as cable TV campaigns — an effort that one marketing exec refers to as “geo-targeting.” Such focused approaches make more sense than spending big money on newspaper advertising and big network TV, says the exec.

For veterans of the marketing game, such localized efforts recall Hollywood’s roots back — way back — in the silent-film era; it’s the old mantra of “hit ‘em where they live.” What is new is that studios — after years of false starts — are also finally learning how to harness the Internet and social networking to their advantage.

The 2009 box office saw an unusual number of films climb to unexpected heights, and several of them — including “Paranormal Activity,” “District 9″ and “The Hangover” — were helped by innovative, viral marketing campaigns.

With “Paranormal Activity,” the microbudgeted horror film that DreamWorks picked up for $350,000, Par built buzz with midnight screenings in select markets and then sent fans to online site Eventful to petition for the pic to go wide when it hit 1 million requests.

The pic gradually widened with the slogan, “You demanded it!” reinforcing the idea that the audience was actively participating in the film’s bow. The pic has grossed $104.2 million domestically.

“There are so many ways for people to communicate instantaneously,” a Par exec says. “One person who comes to a screening tells lots of people about the movie, or (tweets) about it, or posts something.”

Such of word-of-mouth is invaluable, but its actual cost is relative to expectations. One exec estimates the marketing budget for “Paranormal Activity” at something less than $20 million. That’s very low considering other films’ marketing budgets and the horror pic’s eventual gross, but it’s pretty high considering that the pic’s production budget was a mere $11,000.

With its marketing campaign for sci-fi thriller “District 9″ this past summer, Sony was the envy of rival marketing execs. The studio paired a barrage of creative content on the Internet with an innovative outdoor campaign. Cryptic billboards and bus-stop ads drove consumers to the film’s website. The website then gave partial explanations as it promoted the film. Audience members had to be versed in both the old and new marketing realms to piece the full concept together. “District 9,” an inexpensive pickup for the studio for which it spent roughly $20 million on marketing, turned into a phenom, grossing $115.6 million domestically.

While Internet ads do cost appreciably less than traditional media, studios are still spending as much as ever in two traditional areas: television ads and trailers.

Thursday-night television remains an oasis for movie ads because studios want to woo viewers to their Friday pic launches. Go-to shows on Thursday include “The Office” and “30 Rock,” both on NBC, and “CSI” on CBS.”CSI” is especially key for a movie that needs support from the middle of the country, vs. the two coasts.

Shows airing on other nights of the week also carry plenty of movie spots these days, and sports and reality programming get plenty of the ad action. According to a recent survey by AdAge, Fox’s upcoming season of “American Idol” is fetching $360,000 to $490,000 for a 30-second spot. That’s more even than NBC’s Sunday Night Football ($339,700) commands. Among scripted shows, ABC’s “Grey’s Anatomy” gets a price of $240,462 and ABC’s “Desperate Housewives,” $228,851.

“There are only a few places left that get a huge audience, like the Super Bowl. Marketing has become a more complicated science,” one studio topper says.

As for trailers, that staple of the moviegoing experience, they’re still the chief means by which a studio introduces a new film to the public. In 2007, 4% of a pic’s marketing budget went to trailers. The thinking is that if you’ve already got ‘em in the seats, in a film state of mind, why not tout your upcoming pics as well?

At a minimum, there are two trailers cut for most movies: the “teaser” and the “payoff.” For some titles, there are three or four different trailers.

One former studio exec says studios are still spending too much on trailers, sometimes commissioning three to six companies to create separate trailers, then picking one or two of the best from among the choices. While studios used to produce trailers inhouse, trailer production is now routinely outsourced, with costs ranging between $100,000 and $300,000 to produce each one, according to estimates.

Such considerations of cost and impact will continue to confront the majors as they face increased pressure from their parent congloms to reconcile the bottom line.

Marketing spends must be accounted for in the quarter a film is released, even though box office returns might not come in until the following quarter. This can drag down an earnings report, and raise eyebrows up and down Wall Street.

“The landscape is shifting. We’re sort of betwixt and between,” one studio marketer laments. “While everyone is clearly focusing on the Internet, we’re just not at a place yet where we can do less television. That’s why it’s such a confusing, interesting and scary time.”

Major college football programs escape the financial crisis

December 31, 2009: 8:25 AM ET

 

NEW YORK (CNNMoney.com) — The University of Alabama’s Crimson Tide may be the top ranked team heading into college football’s national championship game on January 7. But in one key measure, the team clearly trails the No. 2 University of Texas: money.

Texas has no peer when it comes to both revenue and profits, according to figures from the nation’s colleges. During the 2008 season, the most recent for which figures are available, Texas took in $87 million in revenue and had a profit of $65 million after reported expenses, both well ahead of any school.

This is the fifth time in the last six seasons that Texas topped the revenue and profit ranks, a dynasty that would make not only other schools but most professional teams envious.

No. 2 in revenue in 2008 was Ohio State, which took in $68 million, while No. 2 in profits was the University of Georgia, which earned $45 million after expenses.

Alabama’s $65 million in revenue is the fifth-highest, but its $38 million in earnings was only good enough for a No. 8 seed in the profit rankings, just behind Notre Dame, whose on-field performance this year left the Fighting Irish at home during bowl season and its coach looking for a new job.

The revenue and profit figures, which CNNMoney analyzed, are filed by each school to the Department of Education. It shows that the major Division 1-A college football programs seem to have escaped relatively unscathed from the financial crisis that hit the rest of the nation, including many professional sports teams, in the fall of 2008.

Revenues increased 5% at the schools in the six big-dollar conferences that together host the Bowl Championship Series. On average, the 66 schools took in just over $31 million each. Total revenue at those schools topped $2 billion for the first time.

Profits were essentially flat for these big dollar schools, but nearly half of their revenues flowed to the bottom line. That’s a profit margin which any sports team owner and most Fortune 500 CEOs would kill to achieve.

Only four of the big dollar schools lost money from their college football teams last season — Duke, Wake Forest, Syracuse and Connecticut.

Haves and have-nots

Even schools outside of the top six conferences that also send teams to bowl games did well as a group, although at a far more modest level. Total revenue from those 51 schools was up 8% from 2007 to 2008 to $335 million, while profits slipped 3% to a collective $7.7 million. Still, 2008 was the second year in a row that the non-BCS schools finished in the black as a group after years of losses.

But profits are still tough to come by for most of the schools from the smaller conferences — a third of them reported losses while another third merely broke even.

Even the successful small conference schools find it tough to make a buck on football. Texas Christian University, which finished the 2009 season undefeated, is one of the schools that broke even the previous year. Boise State, which also enjoyed a perfect season and will play TCU in the Tostitos Fiesta Bowl on January 4, eked out a $3 million profit on revenue of $8.5 million.

When their 2009 numbers are reported next year, don’t expect to see Boise State or TCU scoring any big paydays because of their appearance in a major bowl game this year. That’s because of how the system is set up to distribute money from the bowls.

Under the current structure, the five non-BCS conferences will get an equal cut of the approximately $24 million of BCS money available because of the success of Boise State and TCU and then split that money among their respective schools. That works out to just over $500,000 each for Boise State and TCU.

By way of comparison, each of the six big-money conferences are guaranteed a total of $18 million in BCS money, or between $1.5 million to $1.8 million per school, depending upon the number of teams in each conference. In addition, any BCS conference that sends more than one school to a major bowl is eligible for an extra $4.5 million.

These huge payouts make it very unlikely that the big conferences will ever agree to a playoff system to determine a champion — even though many college football fans, including President Obama, have lobbied for a playoff.

This is clearly a case where the haves are going to make sure they remain the haves, no matter what the have-nots and many fans think is fair. There are more than 2 billion reasons why nothing is going to change soon. To top of page

Edmunds.com:December sales could be the highest non Cash for Clunker month of the year.

Car Sales Surged at December’s End, Edmunds.com Reports
JANUARY 4, 2010

Car shopping on Edmunds.com surged in the waning days of December, prompting the Web site to suggest sales for the month may come in higher than previously expected – and could be the highest non Cash for Clunker month of the year.

“The industry potentially could reach a seasonal sales rate of 11.7 million vehicles in December, given the current site traffic trend,” noted Edmunds.com Senior Analyst Jessica Caldwell.

“Our Web site activity is through the roof,” added Caldwell. “That makes sense as there are so many bargain-hunters scrambling to get year-end deals and cash in on the sales tax deduction opportunity that expires on December 31st.”

An improving economy likely has helped as well. Edmunds.com Web activity in late December is 60 percent higher than the histocial pattern for the period. Brands enjoying particularly strong activity are BMW, Ford, Honda and General Motors’ Chevrolet, Pontiac and Saturn brands.

History suggests that the type of Edmunds.com visitor activity tracked for this study typically has a strong correlation to actual sales.

Site activity is up across the board. However, some brands experienced better than average interest in the last days of the month compared with the first three weeks of December. Among them:

BMW – Activity increase nearly 70 percent, likely due to its heavily publicized “BMW Joy Sales Event” and its television ads, obviously poking fun at competitor Lexus with a BMW blasting away leaving the big red bow in its wake.

Chevrolet - Activity increased nearly 85 percent, likely due to “Red Tag” event that includes “Holiday Cash” and zero-percent financing for 72 months on such popular models at the Chevrolet Malibu.

Ford – Activity increased nearly 100 percent; may be due to “Ford Year-End Sales Event.”

Honda – Activity increased nearly 100 percent; may be due to increased advertising of “Happy Honda Days.”

Pontiac, Saturn - Activity for GM’s soon-to-be-oprhaned brands soared, likely due to the immense amount of media hype regarding close-out deals. Pontiac saw more than 10 times as much activity; Saturn nearly 10 times as much. – Michelle Krebs, Senior Analyst and Editor at Large

U.S. auto sales end ’09 on uptick; Ford surges

Tuesday January 5, 2010, 12:43 pm

DETROIT (Reuters) – Ford Motor Co (NYSE:FNews) posted a 33 percent sales gain for December as U.S. auto sales ended a crushing 2009 on an upswing after a year that saw GM and Chrysler collapse into bankruptcy and China overtake the United States as the biggest car market.

The Ford sales surge ran beyond the expectations of analysts and sent the company’s stock sharply higher. Ford shares powered above $11 to hit their highest level since August 2005.

The stock has gained 55 percent in a rally since early November and has more than quadrupled in value over the past year as investors bet that the No. 2 U.S. automaker would steer clear of the federal bailouts that wiped out equity in its domestic rivals.

“Ford’s plan is working,” Ken Czubay, the automaker’s head of U.S. sales, said in a statement.

Other automakers trailed Ford’s gain. Sales for Nissan Motor Co (Tokyo:7201.T - News) were up 18 percent in December. Chrysler’s sales dropped 4 percent.

General Motors Co was expected to post a sales decline near 9 percent.

After adjusting for population, U.S. auto sales suffered their deepest decline since World War Two in 2009. Full-year sales are expected to be just over 10.3 million vehicles, down 40 percent from where the industry began the decade in 2000.

In a historic reversal, vehicle sales in China surged to overtake the U.S. market as the world’s largest in 2009.

With a final sales tally due later this week, analysts expect China sales to have soared 44 percent to 13.5 million units in 2009. Slower growth is projected for this year.

Meanwhile, major automakers are betting that the U.S. market is poised for a gradual but steady rebound this year and next and have set production plans higher for the current quarter to restock inventories.

U.S. auto sales on average are expected to come in above an 11 million unit annualized sales rate in December. That would represent the best sales month of 2009 excluding July and August when U.S. government trade-in incentives gave sales a temporary boost through the “cash for clunkers” program.

INCENTIVES, FLEET SALES IN FOCUS

U.S. auto dealers and analysts said December sales results were boosted by bargain-hunting shoppers taking advantage of holiday discounts and by two additional sales days in the month compared with a year earlier.

In one of the most aggressive incentive offers, GM gave its dealers up to $7,000 — a discount of almost 50 percent in some cases — to buy up remaining inventory of the discontinued Pontiac and Saturn brands still on their lots.

GM expects that move to have effectively cleared out old Pontiac and Saturn inventory, allowing it to start 2010 with a clean focus on its remaining four U.S. brands: Chevrolet, Cadillac, Buick and GMC.

GM sales results are expected to have dropped near 9 percent on an overall basis, reflecting a sharp contraction in shipments to fleet operators led by car rental agencies.

But GM sales managers are likely to point to success in increasing more profitable retail sales, lowering inventory to near record lows and cutting the overall amount that the automaker spent on incentives.

Chrysler, now controlled by Fiat SpA (Milan:FIA.MINews), has also been battling to reduce a reliance on cut-rate fleet sales that have topped half of its overall sales in recent months.

The GM and Chrysler bankruptcies left GM held 60 percent by the U.S. Treasury and Chrysler under the management control of Fiat CEO Sergio Marchionne.

GM and Chrysler took the brunt of the industry’s collapse in 2009, but their stronger rivals were hit as well.

Toyota’s U.S. sales had plunged nearly 24 percent through November and it faces the aftermath of its largest-ever recall to fix accelerator pedals on nearly 4 million vehicles after reports of sudden bursts of acceleration that led to deadly crashes.

Ford sales up 33% in December; biggest boost since 2001

Ford sales up 33% in December; biggest boost since 2001
DETROIT — Ford Motor Co. posted a 33 percent rise in December sales to assure its first annual gain in U.S. market share in more than a decade.
Sales of 183,701 Ford, Lincoln, Mercury and Volvo light vehicles last month brought the automaker’s decline for the year down to 16 percent in a market that through November was down 24 percent.
The advance will end a slide that began after 1998, when Ford controlled 25.7 percent of the U.S. market. Through November last year, Ford held 15.9 percent after falling to 15.1percent in 2008.
December’s 33 percent gain was the biggest on a percentage basis for Ford since a 39.8 percent advance in October 2001, when the industry piled on incentives after the Sept. 11 attacks.
The results from Ford, the first automaker to report year-end sales, provide another sign that the industry is on the mend. A year ago, as industry sales plunged to 27-year lows, Ford posted a 34 percent decline in December volume.
Before the release of today’s results, analysts projected that U.S. auto sales would end the year on a slight upswing

2009′s Most-Searched Cars:Kelley Blue Book Names Models Most Researched On Its Site

Kelley Blue Book’s top 10 most-researched new vehicles of 2009 :

The top half of a list of the 20 vehicles targeted the most in searches onwww.kbb.com last year was dominated by Japanese cars, with Honda taking the top two spots and four out of the top 10. Toyota claimed five of the spots with Nissan earning another.

Honda and Toyota also had one more entry each in the rest of the top 20, with Lexus, Toyota’s luxury brand, also claiming a spot.

Detroit’s Big Three automakers totalled only five spots on the list, with three Ford vehicles and two Chevrolet vehicles making the list. The third Big Three member, Chrysler, did not have a car on the lsit.

The entire list is as follows:

  • 1. Honda Accord
  • 2. Honda Civic
  • 3. Toyota Camry
  • 4. Honda CR-V
  • 5. Toyota Corolla
  • 6. Toyota RAV4
  • 7. Toyota Highlander
  • 8. Toyota Prius
  • 9. Nissan Altima
  • 10. Honda Pilot
  • 11. Ford Escape
  • 12. Chevrolet Camaro
  • 13. Honda Odyssey
  • 14. Ford Fusion
  • 15. Mazda3
  • 16. Ford Mustang
  • 17. Volkswagen Jetta
  • 18. Toyota Sienna
  • 19. Lexus RX 350
  • 20. Chevrolet Equinox

The Honda Civic, Honda Accord and Toyota Camry (in varying orders each year) have been the top three most-researched new-vehicles on kbb.com each year since 2004.

However, many vehicles made noteworthy jumps into the top 20 most-researched new-vehicles for 2009 that were not on the list in 2008. Chevrolet’s all-new redesigned Equinox and Camaro models both grace this year’s list for the first time. Also new to 2009′s top 20 are the recently revamped Lexus RX 350 and the popular, fast-selling Ford Fusion.

The stabilization in gas prices for 2009 led to a trend away from smaller, more fuel-efficient vehicles over the past year, and thus some popular small cars that were among the most-researched in 2008 have fallen off the list for 2009. Subcompact cars like the Toyota Yaris and Honda Fit, along with the compact MINI Cooper, were among the most-researched new cars last year, but did not make the list this time around.

JPMorgan: Look for a 10.5 Percent Rebound in U.S. Display Advertising

In the advertising industry overall, revenues generated by direct and brand advertising are roughly split 50/50. But in the online world, where direct advertising is represented mostly by search and email ads and brand advertising by graphical display ads, the split is closer to 70/30 in favor of direct ads.

Last year, with the economy down, the display portion of the U.S. online advertising industry had a particularly rough time. Total revenues in 2009 were down 5.2 percent to $7.5 billion, estimates JPMorgan analyst Imran Khan in a new Internet industry report. But he forecasts that in 2010 U.S. display advertising will rebound 10.5 percent to $8.3 billion, buoyed by a rising economy and actions to reduce the glut of display ad inventory for higher quality sites and content. For instance, both AOL and CBS are making moves to remove their premium ad inventory from ad networks where prices get beaten down to the lowest common denominator.

As the industry moves away from plain-vanilla CPM ads—which lead to banner blindness—and towards a variety of better-performing ad formats (including sponsorships, behavioral targeting, and more timely display ads), that should help lift revenues as well.

Khan expects U.S. search advertising to grow an even brisker 13.2 percent pace in 2010 to $16.6 billion, after virtually flat 0.8 percent growth in 2009. To get a sense of the disparity in the economics between display and search advertising look at JPMorgan’s estimates of display RPM (revenue per 1,000 impressions) and search RPS (revenue per 1,000 searches). The average display RPM is forecast to be $1.92 this year, while the average RPS is forecast to be $70.14. Which side of that equation would you rather be on? Which has the most upside?

In mobile advertising, both display and search are puny compared to text messaging ads. Total U.S. mobile advertising for 2009 is estimated at $2.6 billion, up 62 percent. But $2.3 billion of that was from text messaging. Only 178 million was mobile search, and $140 million was display (both up 80 percent last year). In 2010, mobile advertising is forecast to grow 45 percent to $3.8 billion, with the breakdown being $3.2 billion SMS advertising, $253 million mobile display, and $321 million mobile search.

One of the biggest reasons to be hopeful about the outlook for the continued growth of the Internet advertising industry is that when you look at the time U.S. consumers spend on the Internet versus the amount of ad dollars which go there, the proportions are out of whack. As recently as 2008, U.S. consumers spent 38 percent of their media consumption time on the Internet (29 percent if you exclude teens and young adults), but it attracted only 8 percent of advertising dollars. Whereas consumers spent 37 percent of their media consumption time on TV, which captured 32 percent of advertising dollars. If you believe that time is money, advertising dollars should continue to flow towards the Internet.

U.S. vehicle sales point to uptick

Automakers emerging from the worst year since 1970 are cautiously optimistic that a recovery is under waylast year’s collapse in U.S. auto sales.executives and analysts said Tuesday they expect car and light truck sales to rise to 11.5 million orthis year from 10.4 million in 2009, bolstered by a strengthening economy.

The most bullish analysts forecast sales exceeding 13 million vehicles — still far below the market’s peak of 17.4   million at the start of the last decade when business was booming for Detroit’s Big Three

“Normalcy is about two years away,” said Jesse Toprak, an auto analyst at pricing and sales forecaster Truecar.com.

The slide in sales began in 2005 and accelerated in 2008, driving two of Detroit’s automakers into bankruptcy last year and pushing their Japanese archrival Toyota Motor Corp. into the red for the first time since 1950.

But executives were encouraged by December’s sales, which marked the fourth consecutive monthly increase in the annualized selling rate. Automakers also reported strengthening demand for both large and small vehicles.

“We’re now in a recovery stage,” said Ellen Hughes-Cromwick, chief economist at Ford Motor Co., which reported a big jump in December sales.

Consumers are feeling encouraged by positive economic news and rising financial markets, Hughes-Cromwick said. “It will take clear evidence of job and income gains to declare a full recovery, and we think that’s likely to gel in this quarter,” she said.

Many executives remain cautious but few still worry about a dreaded double-dip recession. “For the most part, we’ve ruled that out,” said General Motors Co. global industry analyst Mike DiGiovanni.

But, he said, consumer confidence is fragile, oil prices may rise as the global economy expands and the U.S. jobless rate is likely to remain around the 10 percent mark next year. “So we have to balance our optimism with some caution about the outlook for 2010.”

GM ended a tumultuous year — and decade — as the U.S. market leader, which was encouraging, DiGiovanni said, “given all we’ve been through, with bankruptcy and restructuring.”

But over the past 10 years, GM and Ford have lost a big chunk — more than 14 points — of the U.S. auto market.

Toyota and other Asian automakers were the biggest gainers, but the European automakers also made quiet headway. European brands nearly doubled their combined share of the U.S. auto market to 8.4 percent in 2009 from 4.9 percent in 2000.

“This race can get even tighter,” predicted Jessica Caldwell, an analyst at online auto research site Edmunds.com. “You really saw GM lose some ground to Toyota in 2009, but Toyota has lost a lot of ground to Ford.”

Domestics geared to compete

Although 2009 was a terrible year for the domestics, they will be more competitive against foreign rivals this year and next after slashing their costs, shedding debts in government-directed bankruptcies and restructuring operations and dealer networks.

Ford — the only U.S. automaker to avoid bankruptcy in 2009 — was the best performer among the domestics in December. It reported a stunning 33.5 percent jump in sales, its biggest monthly gain since March 2008.

The Dearborn automaker said demand improved across its model range, with sales of both the Fusion compact and F-Series full-size pickup showing double-digit gains last month.

For both December and the year, the F-Series was the best-selling vehicle in the market, followed by Toyota’s Camry sedan.

GM reported a drop in monthly sales, but its executives noted that GM’s fleet business was down in December, while Ford said sales to fleet customers surged more than 70 percent.

Automakers typically prefer retail sales through dealerships to fleet sales, which have thinner profit margins, but Ford executives welcomed fleet customers.

“It suggests that an important sector of the economy, namely the business sector, is becoming more optimistic,” said George Pipas, Ford’s sales analyst. It also signals greater availability of credit; a credit squeeze had sharply curtailed sales in 2009.

Chrysler Group LLC didn’t release a breakdown of fleet and retail sales but its rivals and analysts said much of the Auburn Hills automaker’s business was with fleets. “We estimate they sold 50 percent to fleets, which is an astronomical number,” said Caldwell of Edmunds.com.

A Chrysler spokeswoman would not comment on the December results but said fleet business was expected to account for 25 percent of its annual sales.

Chrysler’s December sales were down 3.7 percent. For the year they fell 35.9 percent — the biggest decline posted by any major automaker — to less than a million vehicles, the lowest sales since 1962. Honda Motor Co. moved ahead of Chrysler in December, to become the fourth-largest player in the market.

Wes Lutz, owner of Extreme Dodge Chrysler Jeep in Jackson, said he is glad 2009 is over. “How could you get worse than that? How much more downsizing can you go beyond bankruptcy?”

But his December sales were better than last year, and he said he expects January to be stronger and the year to continue to improve.

Toyota reported a 32.3 percent increase in sales in December, and said it led the market in retail sales. But its sales were down 20.2 percent in 2009, which was a bad year overall for the Japanese automaker. It lost money in the United States, where it now has too much production capacity, and it recalled more vehicles for safety issues than any other automaker.

Hyundai Motor Co. and its Kia Motors affiliate were the only major automaking group to record a sales gain in the U.S. last year. Their share of the market increased to 7.1 percent from 5.1 percent a year earlier and 2.3 percent in 2000.

Cautious optimism

Outside the auto industry, economists expect 2010 to show slower growth than last year, with unemployment continuing to rise and peaking in the first six months.

Interest rates are expected to stay low until job growth picks up but a full employment recovery will take years.

Analysts and economists say that in addition to the emerging economic recovery, auto sales in December were helped by two additional selling days in 2009 and a tax deduction for car purchases included in the U.S. government’s economic stimulus measures.

Sales are likely to benefit from pent-up demand from consumers holding on to old cars because of economic and job worries.

Skittish consumers have been saving and scaling back spending as the new frugality of the economic bust replaces the free-spending consumer culture of the last decade’s earlier boom.

Auto analyst John Murphy at Bank of America-Merrill Lynch predicted Tuesday that demand for light vehicles would rise in 2010 to “a more normal low” of around 13.3 million units.

But most auto executives remain cautious after having overestimated demand for 2009, when sales ended up 21.2 percent lower. While GM’s end-of-year forecast of 10.5 million vehicles was close to the mark, Ford and Chrysler’s forecasts were considerably higher.

By February, the annualized selling rate slumped to a previously unthinkable 9.1 million cars and light trucks, the year’s low point.

According to Edmunds.com, sales last year fell to the lowest since 1970, when, Edmunds said, there were 70 million fewer people in the United States.

“For 2010, I’m leaving my seat belt on,” said Ford Vice President Ken Czubay, “because I think volatility will be part of the new norm.”

In 2010, Ford globally will deliver five times more new or freshened product than even 2009

Ford Reveals Biggest, Most Experiential Display at 2010 North American International Auto Show

At NAIAS, Ford Motor Company will display 60 new Ford cars and trucks and 21 new Lincoln and Mercury vehicles. A new powertrain display includes two assembly-line robots from the Cleveland Engine Plant, named Eco and Boost, where the company’s new EcoBoost engines are built.
Ford’s entire new car portfolio will be on display inside the floor’s Blue Oval – everything from the new Ford Fiesta to the company’s flagship sedan, the Ford Taurus.
Visitors to the Fiesta area can take a break and play Foosball on one of the world’s largest Foosball tables, Twitter their reactions to Fiesta, and learn about the 15 class-leading exclusive features that put Fiesta head and shoulders above competitors in the B segment. A Taurus SHO in-car theater will take visitors for a ride through both the tame and wild sides of Taurus SHO.
Taking center stage in the Ford display will be the next-generation Ford Focus, where visitors can learn about the agility and precision of Focus’s driving dynamics by playing the Control Blade Challenge, which is like a Wii game. Touch-screen digital displays explain Focus technologies and allow visitors to integrate their pictures into a virtual world and e-mail it to themselves. There also will be special zones for Ford crossovers and trucks and specially built areas for the Ford Mustang, Taurus, Fiesta, Fusion, Transit Connect and Super Duty.
The latest entry in the Lincoln lineup – the 2011 MKX – will launch at NAIAS, too. Lincoln will present an attention-getting cutaway of the vehicle to demonstrate the class-leading technology, safety and luxury features, including the industry exclusive MyLincoln Touch™.
To demonstrate this advanced feature, a one-of-a-kind 16 x 3-foot interactive table will take visitors on a journey through Lincoln’s thoughtful, purposeful technology; with the new MyLincoln Touch seamlessly integrated into the experience.
“The Ford auto show display is proof that Ford is launching more product than any other manufacturer,” said Farley. “In 2010, Ford globally will deliver five times more new or freshened product than even 2009, bringing to market an unprecedented volume of new products people want – with class-leading fuel economy, quality, safety and technology.”
Ford unveils new line of nine engines, six transmissions

“infomania” — addiction to email and texting — can lower your IQ by twice as much as smoking marijuana

It’s a challenge of modern life: email, Twitter feeds, instant messaging, text messages, and other snippets of information are coming at us so fast that it’s hard not to feel under digital attack. Sure, some of it’s important — and that’s precisely the problem. Turn it all off and you might as well quit the workforce. But read it all and your mind becomes so drained that it’s a challenge to get anything else done.

In some ways, technology has evolved in a way that puts mere humans in a bind. Consider the email conundrum. From the moment you wake up, it seems the inbox is calling your name. And if you’re like most of us, you answer its call pretty quickly.

“The brain hates uncertainty,” says David Rock, the CEO of Results Coaching Systems and author of “Your Brain at Work.” “It’s literally painful to not download your email the moment you arrive at your desk in the morning. But once you’ve processed 30 or 40 emails, you’ve ruined your brain chemistry for higher level tasks that are going to create value.”

In fact, a University of London study done for Hewlett-Packard found that “infomania” — a term connected with addiction to email and texting — can lower your IQ by twice as much as smoking marijuana. Moreover, email can raise the levels of noradrenaline and dopamine in your brain by constantly introducing new stimuli into your day. When those levels get too high, complex thinking becomes more difficult, making it harder to make decisions and solve problems — key roles for all managers.

In short, the brain’s capacity for decision-making evolved at a time when people had less to think about. Great, so now you have an excuse for not keeping up. But you still need a game plan.

1. Take control of email.

Don’t start your day with email. Set your email so it doesn’t download new mail automatically or, at the very least, turn off any alert system. Instead, set a time to check for messages manually — preferably later in the day, after you’ve used your brainpower for more important things.

Equally important is that others at your business know how you want email used. “Emails should be short, concise, and used only when a conversation is not an option,” says Adrian Moorhouse, managing director of executive coaching firm Lane4. “The easier communication is to digest, the more likely it is that the messages will be delivered effectively.”

Some colleagues seem unable to help themselves. We all know the type. They send too many emails; they gossip or forward jokes. Get them to divert their personal chatter online by allowing them to use social media at work (even if it’s just at set times of the day). Or talk to the worst offenders one-on-one. Peter Taylor, the director of the project management office for Siemens and author of “The Lazy Project Manager,” says when he’s cc’d on emails, he tells the senders to cut it out. “If people had to produce single sheets of paper and hand them out every time they wanted to communicate, they’d be a lot more conscientious. I educate everyone who I communicate with and as a result, the emails I do receive are pertinent to me. I restructure those emails, copy them into ongoing documents, and keep my inbox very small.”

If you’re reaching a breaking point, do the email equivalent of filing for bankruptcy. Simply wipe your inbox to start afresh. It seems drastic, but it can work. Send a message to all contacts letting them know what you’re planning, select all emails, and delete or archive them. If you’re planning a new regime of folders, rules, filters, and information-sharing disciplines, starting from scratch isn’t so crazy.

2. Prioritize your prioritizing.

To help you prioritize, start by setting clear goals. We all tend to do this subconsciously, according to Lane4’s Moorhouse, but writing them down helps you actually achieve them. Here, too, time of day really matters. Prioritizing is one of the brain’s most energy-hungry processes,” writes Rock in his book. That means it’s best done when your mind is fresh and well rested. Allocate time to order your thoughts — dashing off a to-do list of tasks that are “front of mind” is easy, but it won’t break the back of the work you need to cover.

Try organizing your thinking visually. One great way is with Mind Maps, diagrams of ideas linked together in a tree system that help you visualise all of them in context to each other. That way you won’t forget any of your ideas when you have to decide which ones are the most important.

3. Blindside the data (approach it from an unexpected direction).

Break down complex information into sub-groups. Once you’ve determined a goal, you can “chunk” your work into groups to achieve it. You can also do this with your to-do lists.

According to an experiment at Wilfred Laurier University, (It’s About Time: Optimistic Predictions in Work and Love, European Review of Social Psychology) people are generally very bad at estimating when they’ll finish their own work, but good at guessing for others. So gauge your timing by using someone else’s experience. You’ll be less stressed if you’re realistic about your workload.

4. Do less.

To do less, you should delegate more. Too many managers can’t resist the temptation personally to get involved in everything that’s happening. But effective delegation means limiting the amount of information you have to process, as well as empowering those around you. Then, ask for regular briefings.

5. Unplug.

Many managers feel they can’t shut off the fire hydrant of information. But they can take a break from it. “It’s tempting to think that more information makes for better decisions,” says Penny de Valk, CEO of the UK-based Institute of Leadership and Management. “But in most cases, it just erodes your focus. You need time to synthesize information and generate real intelligence.”

That takes discipline, of course, but it’s useful to stop thinking when you are stuck on a project so your brain can recover. “You do need to switch off and rebalance your brain chemistry if you’re going to come up with new ideas,” says Rock. Stefan Sagmeister of New York-based design firm Sagmeister says he so much believes inthe power of time off that he closes up shop for 12 months every seven years to pursue “little experiments” that he doesn’t have time for in his daily life.

5 Social Media Secrets for 2010

Social media took a wild ride in 2009. The mainstream press fell in love with Twitter, Facebook grew aggressively and a new wave of companies starting taking social media seriously as a business tool. Below are 10 secrets to staying on top of it all in 2010

1. Pay Attention to the Metrics
You can’t manage what you can’t measure. Chief Marketing Officers are going to pay more attention to metrics and tie in social media more directly to overall business goals, not just web-related goals. When starting up new project agree on what the metrics should be and what goals are appropriate.

2. Scale Good Habits
As you grow, make sure you match your structure, policy and guidelines to your organization size. What works with 2 people won’t work with 20 people. All in all your structure should encourage good habits. Your entire team should be motivated to respond quickly, post consistently and talk like a human. Speaking of policies and rules…

3. Have Rules, But Trust People
As your social media strategy matures, you’ll add in more rules and guidelines. However, you can’t have a rule for every situation. You need to trust your team. Lead by example, don’t manage with rulebook.

4. Creativity & Personality Trump Big Budget
Social media is definitely one of those areas in life where more money doesn’t always win. Two of the most powerful ingredients in social media are creativity and personality. They are the key to having a viral message and to being a trusted resource. They are also essential to discovering useful strategies and tactics. You can’t be afraid to try something new or go against the grain.

5. Listen Listen Listen
Don’t focus so much on you and your message. Put that farther down on your To Do List. Focus first on your customers. Hear what they are saying, see what they’re up to. Once you’ve been able to connect, and figure them out, then see how you can help.

Google Considering China Pullout in the Wake of Suspected Government Hacking

Many in the West reacted negatively when Google kowtowed to the Chinese government’s demands to censor its Chinese search engine Google.cn. At the time Google said that it would monitor conditions in the country and make adjustments in policy as necessary.

Looks like that time has come.

Agents who may have been working on behalf of the the Chinese government have apparently attempted a coordinated hacking attack against Google and over a dozen other major corporations. In Google’s case it seems like the purpose was to access email accounts of suspected anti-government activists.

In light of this situation Google has chosen to stop self-censoring its search engine results, and may very well have to shut down it’s China operations.

Kia and Microsoft are partnering; “UVO”will be the first direct competition to Ford’s “Sync”

Kia Motors America and Microsoft Corp. are partnering to provide a new system that will allow drivers and passengers to make phone calls and control a car’s audio system through voice commands.

Called UVO, the hands-free system will be offered in several Kia vehicles by the end of the year, according to the auto maker, the first being the 2011 Kia Sorento crossover, likely to be out around July.

UVO will also be the first direct competition to Ford Motor Co.’s Sync system, which is also based on Microsoft technology. Kia and Microsoft will announce the partnership Tuesday at the 2010 International Consumer Electronics Show in Las Vegas.

Ford is expected to unveil new Sync features that combine navigation and online social media at the International Consumer Electronics Show in Las Vegas. The next generation of Ford’s Sync, expected out later this year, will also offer wireless Internet access, the company has said.

Hands-free technologies allow drivers and passengers to answer and place phone calls, send and receive text messages and access music and other media, primarily by using voice-recognition programs.

UVO will provide all such functions, but will not offer turn-by-turn directions as Ford’s Sync technology does.

Both UVO and Sync can be linked to iPhones, MP3 players and other portable mobile music and cellphone devices.

“For us, it’s a breakthrough interface,” said Michael Sprague, vice president of U.S. marketing for Kia. Mr. Sprague declined to say what the product would cost, but said it would be consistent with Kia’s value message.

“We’ve always made sure that we continue to offer the consumer the best value,” said Mr. Sprague. “So we’ll make sure we do the same with UVO.”

Sync, which is offered in Ford vehicles such as the Ford Fusion and F-150, starts at about $400 and goes up from there.

HYUNDAI DOUBLES CO-OP AD MONEY FOR 2010

HYUNDAI DOUBLES CO-OP AD MONEY FOR  2010

Hyundai, one of only three brands to increase saleslast year, will try to sustain its momentum by making more advertising money available to its dealers.Automotive News reports that regional ad associationand individual dealer co-op advertising willget big increases this year, said DaveZuchowski, head of sales at Hyundai MotorAmerica.“We’re doubling co-op money this yearfrom last year and significantly increasingregional, yet not backing down from national,”Zuchowski said.Zuchowski says co-op money willincrease from $25 million in 2009 to $50million this year. He says funds going to theregional ad associations this year will rise by about 35%.“We’re now spending about $2 for every $1 the dealersspend” on regional ads, Zuchowski said.Dealers will play an important role next month asHyundai debuts a redesigned version of the Sonata, itslargest-volume car. Hyundai will spend about $160 millionto bring out the Sonata — the most it has spent on a vehiclelaunch — and it wants the dealers to chip in at the regionaland local levels.

TrueTrends Report: Top 2009 and 2010 vehicles with the heaviest discounts

SANTA MONICA, Calif. — During this time of year, when the auto market is in the midst of a traditionally slow season and automakers are less apt to offer incentives, dealers are often more inclined to include discounts to help spur sales, according to TrueCar.

In light of this environment, TrueCar, as part of its monthly TrueTrends Report, announced the top 2009 and 2010 vehicles with the heaviest discounts, and showing a dominant presence on both lists were Big 3 brands.

Specifically, three Chevrolet models (Cobalt, Silverado 1500, and Corvette) were among the five models listed on the Top 2009 Greatest Discounted Models, a list that the Dodge Ram 1500 topped with an average discount of 27 percent.

The Kia Sorrento was No. 2 with a 23-percent discount, while the Cobalt was No. 3 (20 percent) and the Silverado 1500 and Corvette (17 percent) were tied for fourth.

Meanwhile, on the list of Top 2010 Greatest Discounted Models, three of the five vehicles were from Ford, including the Ranger, which led the way with a 17-percent discount.

The Edge was tied for third with a 13 percent discount (tying with the Toyota Tundra 2WD), while the Focus had the fifth-highest discount at 12 percent. Another domestic on the list was the Jeep Grand Cherokee, whose 16-percent average discount put it second.

“January is historically a very slow month for dealerships in terms of sales,” said Jesse Toprak, vice president of industry, trends and insights for TrueCar.com. “The manufacturers typically offer fewer incentives to consumers so the dealers are much more willing to offer discounts off of MSRP to help make more deals.”

He added: “So January could actually turn out to be a really great month for consumers who do their homework before they buy, as dealers are more motivated to make something from nothing.”

The complete top five lists are as follows:

Top 2009 Greatest Discounted Models

1. Dodge Ram 1500, 27 percent

2. Kia Sorrento, 23 percent

3. Chevrolet Cobalt, 20 percent

4. Chevrolet Silverado 1500, 17 percent

5. Chevrolet Corvette, 17 percent

Top 2010 Greatest Discounted Models

1. Ford Ranger, 17 percent

2. Jeep Grand Cherokee, 16 percent

3. Toyota Tundra 2WD, 13 percent

4. Ford Edge, 13 percent

5. Ford Focus, 12 percent

Moving on, TrueCar also unveiled in the report the Most Flexible Vehicles 2009 and 2010 models, which are calculated by its Price Flex Score. This considers various elements that can impact price variance, officials noted, such as transaction price range, current inventory and sales data.

Based on these scores, the most flexible 2010 model is the Chrysler PT-Cruiser with a score of 93, followed by the Mazda MX-5 Miata (90), Mazda 6 (88), Hummer H3 (86) and the Hyundai Accent (85).

For 2009 models, the H3 and MX-5 Miata were the most flexible, as both had scores of 97. The Dodge Viper was next (91), with the Volkswagen New Beetle (90) and Volkswagen EOS (89) rounding out the top five.

Moving on, TrueCar also unveiled what it has calculated to be the best day to buy a vehicle in the next 31 days. According to its data, Feb. 1 is the top day. TrueCar expects discounts to be 6.62 percent.

However, Jan. 25 and Feb. 8 are also projected to have discounts of more than 6.5 percent. Meanwhile, the lowest day for discounts is expected to be Feb. 9, when the average is projected at 5.42 percent.

Next, TrueCar looked at what new vehicles are staying in dealers’ inventories for the longest and shortest periods of time.

For 2009 models, the Acura MDX has had the shortest days on the lot, averaging 27. Meanwhile, the Saab 9-3, on average, has sat on the lot 358 days.

“Apparently, fears of becoming an orphan owner have kept consumers away from the Saab, with the 2009 9-3 averaging nearly a year in inventory,” officials explained.

Meanwhile, among 2010 units, the Lexus GX 460 ranks at the top of fastest turn rates, as it typically spends only five days on the lot, according to TrueCar. The Kia Forte has the longest time in inventory, averaging 72 days, officials added.

The Best Way to Add Video to Your Marketing (and the Biggest Mistake You Should Avoid): A Q&A with ‘Get Seen’ Author Steve Garfield

Are you thinking about adding video to your business marketing efforts this year? A record high of nearly 31 billion videos (yes, billion) were delivered to more than 170 million US Internet users in November 2009, according to comScore. Clearly, video is hot.

No one knows this better than Steve Garfield. Steve, who’s been at the forefront of online video since before YouTube, has just published Get Seen: Online Video Secrets to Building Your Business (Wiley, 2010). And there is no one who can speak with more inside authority on this subject than Steve.

Recently, Steve and I caught up on a gray winter afternoon, to discuss how business can tap into the power of video.

AH: What advice do you have for business owners or marketer, who are looking to incorporate video into their online publishing? 

SG: First, decide [on your goals]: What’s most important to you, content or quality? Depending on the answer to that question, you’ll have a very different experience with online video.

If a high-quality video production is important, it’ll take more time, money and effort to put something together.  Maybe it’ll take too long.

But if content is most important, then you can start up very quickly, and test the waters. Using something as simple as a Flip camera can get you going with web video.

And knowing your goals will make it easier, down the road, to measure the effectiveness of your videos.

Yes. There are many ways to measure the results of putting video online, including increased sales and web page views. But there are also intangible benefits of site visitors getting a better sense of who you are… and what you do as a company.

So it’s also a good way to humanize your brand: literally giving your company a voice, and bringing it to life.

One great way to use video is to give site visitors a view into what your company does and/or what it’s like to work with you and your team.  One great example of this is from friends of mine, the Bui Brothers. They have a photo/video business and they document “a day in the life” of what it’s like to work with them on a shoot day.  It’s a wonderful way to let prospects see what you do and how you do it.

So let’s say you aren’t as comfortable as the Bui brothers might be with video production, but you want to produce some videos as you describe. What’s the best way to start?

 One great way to start is to make videos without a video camera. There are many ways to do this including mashups of existing video, screencasts and photo slideshows.

In the book I explain how create these videos without a video camera.  I also show you how to make animations where you can have characters speak for you. It’s like making your own Avatar movie, but not really exactly like that. (laughs)

You can also do interviews from behind the camera, where you interview employees or customers.

Product reviews are good too.

Anything else come to mind?

One easy way to get into online video is to do live-streaming broadcasts. You can use a laptop, a desktop, or even a cell phone. The beauty of going live is that once  you stream your video, the event is archived and people can watch it after the fact. 

One of the benefits of this method is that you don’t have to get involved in editing the video after you shoot it. That could also be seen as a problem for some web viewers who are expecting something like a professional TV broadcast. But for those that watch live and have the opportunity to see an event that they could not get to, or to interact with you live in real-time, they will take value away from the broadcast. 

As more companies explore live-streaming and the interactivity it presents, we’ll see more creative and unique uses of live broadcasts.

What’s the biggest mistake companies make, with video? Other than not using it, I mean. (Ha.)

The first mistake companies make is being afraid to try. Just like some companies are afraid to let employees blog, they might be tentative. Like I said earlier, it’s a decision that you make as to what you want to present.

An early example of this is what Microsoft did with Channel 9. They let Robert Scoble loose in Microsoft with a camera, and he interviewed lots of Microsoft employees and then posted the interviews. It humanized Microsoft. [The effort] was a huge success and an example for companies to this day.

So I guess… yes, not using it might be the first mistake!

Second, companies should find a natural-born video blogger to help them with this effort. Just like they have already identified natural bloggers to write for them, they should find employees are going to be good at making these videos. Maybe they already have someone on staff that fits the bill.

And in that vein, should the CEO be the “face” of your company? Or not? Does that matter?

Depends on the CEO. Robert Scoble was the face of Microsoft and that worked for them. Gary Vaynerchuk is the [CEO] face of his company and that works for him.

There’s also the conversation part of putting a [CEO-based] video out there. You could just post videos as “pamphlets,” without any way of interacting. Or you could post the video as part of a blog post… and have a conversation with site viewers, in the comments section, just below the video.

Is your CEO interested in doing that? Some are, some won’t be. I’d prefer to watch and interact with a CEO who was in the video and was ready to engage in a conversation with me. I think that would be enormously valuable to a company.

So you’ve been putting video online, or video blogging, since, when…? I know it was before most of us were even blogging.

I put my first test video online on July 24, 2002. This was after I got an in-house editing system of a Canon GL/2, MacBook and Final Cut Pro.

Prior to that, I was editing at local public access station, learning everything I could about video. It was a passion I pursued after regular work hours. At public access TV, I also did a weekly live show, “Steve’s Show,” a precursor to what I do now. It had interactivity by people calling in on the phone. (laughs)

When you started, I’m sure the process of getting video online was a whole lot more complicated than it is now.

Way more complicated. You had to figure out everything.

It was 5 months after I started putting video online, that I saw Sorenson Squeeze at MacWorld San Francisco. That software helped make it easier to put video online.

I was self-hosting videos then too.  YouTube was created in February ‘05, beta-tested in May ‘05, and launched in November ‘05.

[Meanwhile], I made my first videoblog on January ’04.

Videoblogging made it easier for people to put video on the web. I was one of the first to figure that out. And along the way always shared the knowledge I learned on my blog. I’d post videos and explain in the text of the blog post, how I did it, so others could learn from my experiences.

Just like now.

Right.

*Courtesy of Openforum.com*

Search Engine Success: Getting Video SEO Right

By: Benjamin Wayne, Search Engine Watch, Jan 27, 2010

Videos, properly submitted, are 53 times more likely to generate a first page Google ranking than traditional SEO techniques, according to a recent study by Forrester Research. However, many companies are ignoring video SEO altogether, only submitting the pages on which videos reside and not the videos themselves, or worst of all, submitting their video assets to YouTube under the misunderstanding that this will generate SEO benefits.

The Unfair Advantages of Video SEO

Although video SEO isn’t dissimilar to traditional SEO, it has two distinct advantages.

First, Google and other search engines work to have a mix of content types displayed in search results (a.k.a., blended search results). For this reason, they give a higher ranking to video content than other forms of Web content in order to make sure that searches consistently display mixed search results.

Second, there’s a relative dearth of video content available today, and only a small fraction of the content available is properly submitted to search engines for inclusion in the search indexes. This combination of disproportionate bias towards video content and the small pool of indexed video content available is a gold mine for publishers.

Getting Video Content into the Search Engines and Getting it Right

Today, almost all search engines will allow sites to submit video content in the form of an XML feed. However, serialization of the feed is unique to each engine, and not all guidelines are published. Sites wishing to do this on their own should contact the individual search engines for specific guidelines on submission, as published guidelines are often outdated or inaccurate. Some sites may have specific guidelines on feed size or pagination, which will also need to be followed if all videos are to appear.

In creating an XML feed, search engines give disproportionate weighting to the title of the video, and ignore most other metadata associated with the feed. Different search engines will choose different thumbnails for display, and if particular thumbnails are desired, sites should take care to include only those thumbnails in the feed.

Submit the Video, but Also Submit the Page

Many sites submit the pages on which videos are displayed, but fail to submit the videos themselves. Other sites submit the videos, but forget to index the pages.

For best results, sites should submit a permalink sitemap that mirrors their video XML feed. Title tags on the permalink pages should be identical to the video title to achieve the highest page rank scoring.

Things to ask your Video Platform Provider

Search engine submission for video is a complex and rapidly-changing process, and many sites may wish to turn to their video platform provider to assist them in achieving maximum results. In doing so, they should be careful to ask the following questions:

  • Will you index both my video permalink pages and the videos themselves?
  • Will links point back to my site, or will they drive traffic to pages hosted by the video platform provider?
  • How often will feeds be updated?
  • In which search engines will my results appear?
  • How will I be able to track click-through and ROI?

Conclusions

Video SEO is a powerful tool, and should be part of the marketing arsenal of all online publishers. However, successful indexing requires a specific implementation for each individual search engine, and can best be enhanced by submitting videos and pages in parallel.

Your video platform provider can be a powerful enabler, but it’s crucial to make sure that links will point back to your site, ensuring traffic arrives at your destination. Done right, video SEO can increase search engine performance by more than 5,000 percent and provide a powerful new marketing tool for your organization.

General Motors Pounces on Toyota Sales Halt Through New Incentives

General Motors Pounces on Toyota Sales Halt Through New Incentives

Seizing on Toyota’s (TM: 79.7, -7.05, -8.13%) bombshell announcement to halt sales of eight of its models, General Motors unveiled Wednesday afternoon new incentives to Toyota customers, including a $1,000 lease waiver and zero percent financing for up to 60 months.

Noting that such “conquest” incentives are common in the auto industry, GM said the new offer will be applicable to all Toyota customers who purchase a Chevrolet, Buick, GMC or Cadillac.

“We decided to make this offer after receiving many emails and calls from our dealers, who have been approached by Toyota customers asking for help,” GM said in a statement.

GM said effective Wednesday through the end of February, dealers will be able to offer owners and leases of Toyota vehicles three incentives: a waiver of three payments up to a total of $1,000 for lease customers, zero percent interest for up to 60 months for financing customers, or a $1,000 purchase bonus for cash buyers.

After months and years of bleak news about Detroit’s woes, Toyota shocked the auto industry by making an unprecedented decision to halt sales on eight of its models due to sticking accelerator pedals. Toyota, the world’s largest auto maker, also said it plans to stop production of its best-selling Camry for at least the first week of February.

Toyota’s stock tumbled 9.12% to $78.87 Wednesday afternoon on the news. On the other hand, Ford (F: 11.54, 0.33, 2.94%), the only publicly-traded U.S. auto maker, saw its shares jump 2.14% to $11.42.

GM, which earlier this week announced interim CEO Ed Whitacre will stay on as permanent CEO, filed for bankruptcy last year amid plunging sales and heavy debt. The auto maker sped through bankruptcy proceedings and emerged as a slimmed-down company after having cut its brands to four.

Toyota’s pedal supplier says it has a fix, is ramping up output

DETROIT — The supplier that made the pedal modules fingered in a massive recall of Toyota Motor Corp. vehicles said today that it has a fix and is stepping up production at three factories to get new parts to Toyota’s plants.
The parts maker also is working with Toyota on a fix for cars already on the road, the supplier’s CEO said.
Testing by Toyota and supplier CTS Corp., of Elkhart, Ind., identified condensation-related problems as the cause of the automaker’s sticky accelerators, which can cause the gas pedal to return too slowly to its original position or even, with age, to get stuck.
CEO Vinod Khilnani said the new pedal that CTS is building takes care of the condensation problem. “We believe that is the reason for the slow return,” he said in an earnings call today with analysts and the news media.
Khilnani said Toyota and CTS are working to develop a “sleeve” to fix possible problems on Toyota vehicles on the road.
CTS also is building a redesigned pedal that will go to Toyota factories for installation on new cars. CTS will ramp up production and add additional capacity at its three plants.
Calls to Toyota spokesmen weren’t immediately returned.

Manheim, nation’s largest auction company, has immediately halted sales of recalled Toyotas at 81 auction sites in U.S. and Canada and OVE.com

– The largest used-vehicle auto auction association in the United States today recommended that its member auctions temporarily stop selling Toyota cars and trucks that are being recalled because of sticking accelerator pedals.
In addition, several major car-rental companies temporarily have removed the vehicles from their fleets, as fallout from the massive recall spreads.
“The safety of our customers and employees is our utmost priority, and in that regard, the suspension should continue until the issues have been resolved,” the National Auto Auction Association said in a statement. Manheim, the nation’s largest auction company, said it is complying with the recommendation of NAAA and immediately halted sales of the recalled Toyota vehicles at its 81 auction sites in the United States and Canada and on its OVE.com electronic sales channel.
“We are committed to supporting Toyota during this challenging time,” the company said in a statement.
Toyota Motor Sales U.S.A. Inc. has instructed its franchised dealers not to deliver the affected cars to customers.
On Tuesday, Toyota said it would halt sales and temporarily suspend production of 2.3 million U.S. vehicles recalled last week for sticking accelerator pedals.

CLOSED DEALER APPEALS IN CENTRAL FLA.; HOLLER’S IN, JIMMIE VICKERS OUT, SONIC TAKES THE CASH

Last summer, 789 Chrysler and about 2,000 General Motors dealers received letters from the manufacturers saying that their services were no longer required. Both were In bankruptcy and consequently allowed to make decisive moves that might be prohibited by law otherwise. So they trimmed what they considered to be “underperforming dealers” from the rolls.

GM, at least, gave dealers until their current franchise agreements ran out, which for the vast majority is in October, to shut down. And it had an informal appeal process that allowed a few dealers to successfully plead their cases to stay open. Chrysler was much more brutal, giving the 789 terminated dealers less than a month to shut down.

In Central Florida, eight Chrysler dealers — which sold Chrysler, Jeep, Dodge or some combination — got the ax. General Motors has never released a list of terminated dealers, but the best guess is that about 15 statewide got “Dear Dealer” letters, and that does not include brands that GM is closing or selling: Saab, Hummer, Pontiac and Saturn.

That was that, until last month, when President Obama signed a bill that will allow terminated dealers a chance to plead their cases before a neutral arbitrator. The American Arbitration Association is compiling a list of arbitrators — most of them judges or attorneys with a financial background — and dealers who filed for arbitration before the deadline a week ago will have their cases heard, and decided, by the middle of June. More than 1,500 dealers paid the estimated $2,000 in filing expenses, well more than half of the terminated dealers.

In Central Florida, some dealers will fight the closing. Holler Chevrolet and Classic Chevrolet, both controlled by the Holler family, will appeal. “Our roots go deep into the Chevrolet brand, and we feel a strong sense of commitment to our Chevrolet customers. That’s why we are participating in this process,” said dealer counsel Frank Hamner. Holler has been selling GM products in Orlando since 1938.

But some dealers will not fight. “We didn’t file,” said Buddy Vickers, whose Jimmie Vickers Jeep dealership in Merritt Island lost its Jeep franchise after 38 years when Chrysler awarded it to a Dodge-Chrysler dealership a mile up the road. “The cards are stacked against a small dealer,” Vickers said, “and I don’t think we’d stand much of a chance, particularly given what it could cost.”

Vickers remains in business selling Suzukis, and performing service on Jeeps. “It still hurts,” Vickers said. “I especially feel bad for my father, who started this store nearly 40 years ago. It isn’t right, but it is what it is.”

Other dealers have already closed after being paid some negotiable termination fee by the manufacturer to essentially go away. That was the case with Massey Cadillac in Sanford, which is owned by Charlotte, N.C. -based Sonic Automotive, controlled by motorsports magnate Bruton Smith. “We lost some dealers, but we aren’t appealing any of them,” Smith said. “We just took the money and closed them up.”

Sonic still has 11 dealers in Florida.

So even if a dealer arbitrates, what are the chances of succeeding?

It depends on a lot of things, said attorney Alex Kurkin of Kurkin Forehand Brandes, a law firm in Miami. Kurkin is handling 10 arbitration cases, including some for Central Florida dealers. Kurkin said he must prove the dealership was terminated without proper cause. Three outcomes are possible: The dealership can be terminated, it can be reinstated or the manufacturer can negotiate some financial settlement to close the case.

The arbitrator will be agreed upon by both sides, and if they can’t agree, one will be appointed, Kurkin said.

“We have so much work to do between now and the June deadline,” Kurkin said. “Normally we have months to prepare a case. With this, we have weeks.”

And, unless one side can prove “gross” misconduct during the arbitration process, the decision is binding.

Kurkin could probably have more than 10 cases if he wanted, “but that’s all I want to handle right now. This is an incredibly complex, time-dependent procedure.” Total costs for a dealer? As much as $80,000, Kurkin estimated. That is especially hard on Chrysler dealers, who have not been in business since last June.

In Florida, if you have been out of business for a year, you have to re-file with the state as a brand-new business. All 789 Chrysler dealers lost their franchises last June. “That’s why this June deadline for completing arbitration is so critical for Chrysler dealers,” Kurkin said.

And one aspect of the process that makes it even tougher for Chrysler dealers, such as Jimmie Vickers Jeep. Even if the arbitrator decides in the dealer’s favor, and Chrysler must return the franchise to the dealer, there is no provision that requires Chrysler to take the franchise away from a dealer that it was awarded to last year. So even if Vickers arbitrated and prevailed, the Dodge-Chrysler dealer a mile up the road could still have its new Jeep franchise. That would then have to be resolved under state franchise laws.

It’s a mess, but at least it’s a second chance for wronged dealers to plead their cases. Chrysler and GM acted arbitrarily in many of their closings, with no concern for loyal dealers, even less concern for loyal customers. This could get interesting.

Succeeding in the Virtual World- A Must for 2010

By: Rick Sherman, Forward Progress

I wonder if this year will be just as unpredictable and volatile as the one we left behind. I don’t know the answer to that, but I do know there is one certainty in these uncertain times. WE NEED TO SELL TO SURVIVE…WE NEED TO SELL TO SUCCEED!

We all would agree that sales, in essence, is a numbers game. However, with organizations facing tighter marketing budgets, less man-power, and more shared responsibilities…filling up the prospect pipeline with qualified candidates is going to be a tremendous challenge.

So how do you reach your targeted audience in a cost effective way? How do you increase your exposure beyond your current geographical or social barriers? How do you network with a million people simultaneously? BY LIVING IN THE VIRTUAL WORLD!

Some of you reading this are already using virtual business tools as a way to grow your organization. Others are new travelers to this developing frontier. Regardless of your position, this is an area of critical importance in 2010. This is simply the most cost effective and time effective way to maximize your exposure and reach potential clients.

OBJECTIVE #1 – VIRTUAL NETWORKING

Consider the exposure available in some of the more prominent business/social networking sites:

Linkedin.com

Over 30 Million users across 150 different industries. This is not a social site…it’s a business site.

Facebook.com

Over 130 Million users, with people logging 2.6 Billion minutes a day on the site. This is primarily a social site, however it does have great business opportunities by creating targeted ad’s, pages, and leveraging the “Visa Business Network” platform.

Ryze.com & Tribe.net

These are smaller business orientated sites that don’t have the volume, but allow for a more specific exposure point.

Aside from the exposure from the site itself, consider the peripheral opportunities:

  • DRIVE TRAFFIC TO YOUR WEB-SITE or SPECIFIC URL
  • RECRUIT TALENT
  • STRATEGIC ALLIANCES
  • KNOWLEDGE EXCHANGE – MARKET RESEARCH
  • PUBLISH ARTICLES – BRAND AWARENESS – INDUSTRY EXPERT PERCEPTION
  • EXPOSURE TO NETWORKING/CHARITABLE EVENTS – FACE 2 FACE OPPORTUNITIES
  • MOST IMPORTANTLY – BUILD TRUST!

CONSIDER THIS

Each of the above is FREE TO JOIN! Is there a time commitment necessary to compile and update your information? Of course. However, consider the alternative: Do you want to spend time, money, gas, and expenses practicing traditional prospecting techniques? Or do you want to leverage technology and virtual networking to create business opportunities in the most cost effective way possible?

BE CAREFUL

Remember…as you are looking at them…they are also looking at you. Living virtually provides the world 24/7 access to you 365 days a year! You are representing something much larger than yourself. It is imperative that you protect, promote, and represent the brand in a manner that is consistent with your ideals, goals, and mission statement.

THIS IS ONLY THE BEGINNING

Virtual Networking is simply the tip of the proverbial iceberg. It is also, quite simply, the best place to begin. If you are new to this arena…virtual networking will provide you with the education, experience, and confidence to take the next step. If you are already a savvy virtual networker, then I would challenge you to go even further. Are you utilizing video e-mail? Running strategic e-campaigns? Are you blogging, and posting? Advertising effectively on-line? Do you have a fully integrated marketing strategy that combines traditional methodology with the power of the internet?  Have you googled your company and yourself to see the virtual worlds first impression of you?

Toyota U.S. sales fall 16% in Jan.; Ford, GM, Nissan UP

JANUARY U.S. AUTO SALES
Toyota sales fall 16% in Jan.; Ford, GM, Nissan rise

Toyota Motor Sales U.S.A. Inc., hobbled by suspended sales on eight recalled models, suffered a 16 percent drop in January demand while most competitors rose from depressed levels of a year ago.
U.S. sales at Toyota Division, which markets each of the recalled models, fell 19 percent. The Lexus luxury division, which wasn’t targeted in the Jan. 21 recall, gained 5 percent.
Sales at Ford Motor Co. jumped 25 percent — the company’s fourth straight monthly increase. General Motors Co. was up 14 percent, while Chrysler Group, the other survivor of a 2009 bankruptcy, fell 11 percent. In unit sales, Chrysler fell behind Nissan North America, which advanced 16 percent. American Honda slipped 5 percent.
Subaru, the only brand with U.S. sales gains in each of the past two years, began 2010 with a 28 percent sales jump.
Shinichi Sasaki, Toyota’s vice president in charge of quality, said today in Japan that the automaker’s sales probably will take a hit. On Jan. 26, Toyota halted U.S. sales of eight models following a recall of 2.3 million vehicles tied to faulty accelerator pedals.

Toyota service techs get trained for onslaught of gas-pedal repairs

Toyota dealers and service technicians are awaiting training before they handle a wave of recall-driven gas pedal repairs that will begin this week.

Dealers will extend hours and some will be open 24 hours a day,” Jim Lentz, president and chief operating officer of Toyota Motor Sales, said today during a conference call.

That means overtime and extra pay for service technicians.

“First, our people have to be trained. Then we need to have the parts,” said Bob McInerney, vice president of McInerney Toyota in Clinton Township. “We have five technicians and they’re willing to work around the clock.”

“We have strict orders to fix the customer’s cars first,” said Gordon Stewart, a Harper Woods-based dealer who has a Toyota franchise in Hoover, Ala. “We have mechanics volunteering to work all night.”

Mike LaFontaine, a Toyota dealer in Dearborn, said his 15 technicians are waiting to be trained on how to make the accelerator pedal repairs.

Toyota engineers have designed a steel reinforcement bar for the pedals to keep them from sticking in certain situations.

Service technicians are to install the bar into the pedal assembly to reduce surface tension between the friction shoe and the adjoining service. Toyota said excess friction can cause the pedal to stick. The repair should take about 30 minutes per vehicle.

Lentz said parts will begin arriving at dealerships by Wednesday.

Meanwhile, Toyota supplier CTS is shipping redesigned pedals to five assembly plants where production stopped a week ago.

Toyota last month recalled 2.3 million cars and stopped selling eight models because the accelerator pedal can, on rare occasions, stick in a partially open position. A separate Toyota recall covers 5.4 million vehicles in which all-weather floor mats may become entrapped in the accelerator, causing an unwanted burst of speed.

McInerney and LaFontaine said they did not plan to hire additional service technicians to handle the additional work.

Toyota Begins Media Campaign to Reassure Customers

Toyota Begins Media Campaign to Reassure Customers
Toyota has launched a media campaign to bolster its reputation for quality as nervous customers confront dealers across the country about faulty gas pedal systems.
Crisis-management experts said Sunday that the recall of millions of cars and trucks isn’t the Japanese auto maker’s only problem: its message to Toyota owners — delivered in full-page ads Sunday in 20 major newspapers — isn’t as clear and reassuring as it needs to be.
On Monday, the head of Toyota’s North American sales division, Jim Lentz, appeared on NBC’s The Today Show to detail the company’s plans for a fix. Federal regulators have approved Toyota’s plan to start sending parts to dealers in the coming days.
Toyota dealers over the weekend said there has been a noticeable drop in customer traffic and sales, though they have faith that customers loyal to the brand before last week’s recall will not abandon it altogether. Dealers selling U.S. brands have seen more Toyota drivers in their lots than usual, but for now those visits haven’t translated into many new customers.
Toyota’s black-and-white ads Sunday characterized the halt in sales and production as a “temporary pause” to put customers “first.” The ads didn’t give details on how the pedals would be fixed or when customers could expect a remedy.
The company has said the recall of about 4.2 million cars and trucks is related to condensation that builds up in the gas pedal assembly and can cause the accelerator to get stuck. Dealers say the fix involves slipping a shim into an area where springs push the gas pedal back to its resting position after a driver has eased off the gas.
“They are trying to do the right thing,” said Alexander Edwards, president of automotive research group Strategic Vision, of the ads. “But what’s going on isn’t stated very clearly and that causes more uneasiness with customers.”
Larry Smith of the Institute for Crisis Management in Louisville, Ky., said “The ads are intended to buy Toyota a bit of time, to ask people to give them a chance.”
But what matters now is “how Toyota expresses its plan and executives the repairs,” Smith said.
Cutting the company some slack, Smith said the ads likely had to be placed on Friday, before Toyota received the go-ahead for its planned fix from federal regulators.
“They are a really good company, and there is no reason they should not snap back from this,” Smith said.
At Earl Stewart Toyota in North Palm Beach, Fla., general manager Stu Stewart is hopeful that the slight dropoff in business he’s seen will be temporary.
On Saturday Steward said he’d even sold some cars in recent days that have the faulty gas pedal system. Customers will just have to wait for the cars to be fixed before picking up their new vehicles, Stewart said.
At Toyota World of Lakewood, N.J., sales manager Joe Glidden said they had received many calls from customers with questions about the recalls. But he said customer traffic had only slightly decreased since the gas pedal recall was announced Jan. 21.
Customer Herb Jackson, shopping at the Lakewood showroom for a new Prius gas-electric hybrid — which is not one of the vehicles that was recalled — said he’s still confident in the world’s biggest automaker.
“I don’t plan on changing horses,” said Jackson, who has owned many Toyotas over the years.
Other customers are checking out Toyota’s competition, however.
In Pittsburgh’s northern suburbs, Richard Bazzy, owner of two Ford dealerships, saw increased traffic on Saturday and noticed more Camrys and Corollas driving onto his lots. But he also said it has yet to turn into increased sales from Toyota customers.
Bazzy said the Toyota troubles should get customers to at least consider Detroit’s improved cars.
Industry analysts expect Ford to be among the beneficiaries of Toyota’s troubles because some of its models have recently received good quality scores from third parties such as Consumer Reports magazine.
Rob Larson, a sales manager at Larson Ford in Lakewood, said he hadn’t seen an influx of disaffected Toyota customers so far. But he expects to see them soon as more people learn about incentives being offered by Ford, such as $1,000 to Toyota, Lexus, Scion, Honda or Acura drivers who trade in vehicles or have leases expiring by June 30. GM and Chrysler are offering similar deals to lure Toyota customers.
At Hyundai Giant in New Port Richey, Fla., CEO Scott Fink said dealers are having trouble figuring trade-in values on Toyotas, wondering if they will drop even after they are repaired.
He said it’s too early to tell if there will be a mass exodus from Toyota.
The recall widened beyond Toyota over the weekend. France’s largest automaker, PSA Peugeot Citroen, said it was recalling 100,000 cars across Europe to change accelerator pedals on two models designed and produced in a joint venture with Toyota. The recall is a “preventive” measure, Peugeot said, adding that there has been no evidence of accidents or safety problems linked to the pedals.
The National Highway Traffic Safety Administration said on its Web site that it opened an investigation last Tuesday into CTS Corp., the manufacturer that supplied the faulty gas pedals to Toyota. The agency wants to find out whether CTS notified other gas pedal customers of the recall and if other automakers have received reports of similar problems with the pedals.
The pedal recall is separate from another recall involving floor mats that can bend and push down accelerators. The two recalls combined affect more than 7 million vehicles worldwide. While the multiple recalls, investigations and image troubles are disheartening for Toyota owners, for now many still remain loyal.
“They’re going to be fine,” Stacey Krupski of State College, Pa., said as she parked her Toyota Saturday. “And I would most likely guarantee the fact that my next car will still be a Toyota.”

Toyota Begins Media Campaign to Reassure Customers
Toyota has launched a media campaign to bolster its reputation for quality as nervous customers confront dealers across the country about faulty gas pedal systems.
Crisis-management experts said Sunday that the recall of millions of cars and trucks isn’t the Japanese auto maker’s only problem: its message to Toyota owners — delivered in full-page ads Sunday in 20 major newspapers — isn’t as clear and reassuring as it needs to be.
On Monday, the head of Toyota’s North American sales division, Jim Lentz, appeared on NBC’s The Today Show to detail the company’s plans for a fix. Federal regulators have approved Toyota’s plan to start sending parts to dealers in the coming days.
Toyota dealers over the weekend said there has been a noticeable drop in customer traffic and sales, though they have faith that customers loyal to the brand before last week’s recall will not abandon it altogether. Dealers selling U.S. brands have seen more Toyota drivers in their lots than usual, but for now those visits haven’t translated into many new customers.
Toyota’s black-and-white ads Sunday characterized the halt in sales and production as a “temporary pause” to put customers “first.” The ads didn’t give details on how the pedals would be fixed or when customers could expect a remedy.
The company has said the recall of about 4.2 million cars and trucks is related to condensation that builds up in the gas pedal assembly and can cause the accelerator to get stuck. Dealers say the fix involves slipping a shim into an area where springs push the gas pedal back to its resting position after a driver has eased off the gas.
“They are trying to do the right thing,” said Alexander Edwards, president of automotive research group Strategic Vision, of the ads. “But what’s going on isn’t stated very clearly and that causes more uneasiness with customers.”
Larry Smith of the Institute for Crisis Management in Louisville, Ky., said “The ads are intended to buy Toyota a bit of time, to ask people to give them a chance.”
But what matters now is “how Toyota expresses its plan and executives the repairs,” Smith said.
Cutting the company some slack, Smith said the ads likely had to be placed on Friday, before Toyota received the go-ahead for its planned fix from federal regulators.
“They are a really good company, and there is no reason they should not snap back from this,” Smith said.
At Earl Stewart Toyota in North Palm Beach, Fla., general manager Stu Stewart is hopeful that the slight dropoff in business he’s seen will be temporary.
On Saturday Steward said he’d even sold some cars in recent days that have the faulty gas pedal system. Customers will just have to wait for the cars to be fixed before picking up their new vehicles, Stewart said.
At Toyota World of Lakewood, N.J., sales manager Joe Glidden said they had received many calls from customers with questions about the recalls. But he said customer traffic had only slightly decreased since the gas pedal recall was announced Jan. 21.
Customer Herb Jackson, shopping at the Lakewood showroom for a new Prius gas-electric hybrid — which is not one of the vehicles that was recalled — said he’s still confident in the world’s biggest automaker.
“I don’t plan on changing horses,” said Jackson, who has owned many Toyotas over the years.
Other customers are checking out Toyota’s competition, however.
In Pittsburgh’s northern suburbs, Richard Bazzy, owner of two Ford dealerships, saw increased traffic on Saturday and noticed more Camrys and Corollas driving onto his lots. But he also said it has yet to turn into increased sales from Toyota customers.
Bazzy said the Toyota troubles should get customers to at least consider Detroit’s improved cars.
Industry analysts expect Ford to be among the beneficiaries of Toyota’s troubles because some of its models have recently received good quality scores from third parties such as Consumer Reports magazine.
Rob Larson, a sales manager at Larson Ford in Lakewood, said he hadn’t seen an influx of disaffected Toyota customers so far. But he expects to see them soon as more people learn about incentives being offered by Ford, such as $1,000 to Toyota, Lexus, Scion, Honda or Acura drivers who trade in vehicles or have leases expiring by June 30. GM and Chrysler are offering similar deals to lure Toyota customers.
At Hyundai Giant in New Port Richey, Fla., CEO Scott Fink said dealers are having trouble figuring trade-in values on Toyotas, wondering if they will drop even after they are repaired.
He said it’s too early to tell if there will be a mass exodus from Toyota.
The recall widened beyond Toyota over the weekend. France’s largest automaker, PSA Peugeot Citroen, said it was recalling 100,000 cars across Europe to change accelerator pedals on two models designed and produced in a joint venture with Toyota. The recall is a “preventive” measure, Peugeot said, adding that there has been no evidence of accidents or safety problems linked to the pedals.
The National Highway Traffic Safety Administration said on its Web site that it opened an investigation last Tuesday into CTS Corp., the manufacturer that supplied the faulty gas pedals to Toyota. The agency wants to find out whether CTS notified other gas pedal customers of the recall and if other automakers have received reports of similar problems with the pedals.
The pedal recall is separate from another recall involving floor mats that can bend and push down accelerators. The two recalls combined affect more than 7 million vehicles worldwide. While the multiple recalls, investigations and image troubles are disheartening for Toyota owners, for now many still remain loyal.
“They’re going to be fine,” Stacey Krupski of State College, Pa., said as she parked her Toyota Saturday. “And I would most likely guarantee the fact that my next car will still be a Toyota.”

U.S. auto market continues its recent strengthening trend with sales of almost 700,000 in January, up nearly 7 percent compared with 654,757 vehicles in January ’09. Seasonally adjusted light-vehicle sales rate up to 10.76 million units versus last year’s 9.59 million

Jan._'10_Big_7_graphic_r1_550 - final.jpgThe U.S. auto market in January continued its recent strengthening trend, with overall sales just shy of 700,000 vehicles (698,456 vehicles) for the month rising by nearly 7 percent compared with 654,757 vehicles in a very weak January 2009. The seasonally adjusted light-vehicle sales rate ticked up to about 10.76 million units versus last year’s 9.59 million - and roughly in line with the firming picture of recent months.

Toyota was clearly the biggest loser in January due to its recalls and stop-sales order on eight of its bestsellers. Yet, January’s results varied widely for its top competitors that may have tried to take advantage of Toyota’s problems with special incentives meant to lure disaffected Toyota customers in particular.

Toyota’s January sales “were 23 percent below our internal target,” Robert Carter, Toyota Motor Sales U.S.A.’s group vice president and general manager of the Toyota division, said in a conference call Tuesday. That number insinuated that more than 20,000 lost sales were attributable to the recall and sales stoppage in just the last few days of January.

Toyota only escaped greater damage in January because it didn’t halt sales until January 26, when only four sales days were left in the month. And the toll on the Toyota brand, especially, has been heavy nonetheless: Sales were down more than 47 percent compared with December, and January sales ranked as the worst month for Toyota since January 1999.

“Toyota was clearly the biggest loser of the month,” said Jessica Caldwell, director of U.S. sales analysis for Edmunds.com. As long as the sales suspension continues, predicted Edmunds.com Senior Analyst Ray Zhou, Toyota-brand sales will drop by about 75 percent overall as long as the stop-selling order remains in affect.

As for Toyota’s competitors, results were mixed.

Ford continued its surge of recent months by reporting a 24-percent sales increase for January. The company credited its increasingly robust product portfolio, but Ford also dangled $1,000 rebates to current owners of Toyota models and of products by Honda, which is facing its own significant safety recall.

Hyundai, which launched a similar incentive program, saw its January sales rise by 24 percent over last year as well. Recently, Ford and Hyundai  clearly have been the two hottest companies of the Big Seven of U.S. auto sales.

Meanwhile, General Motors – which first introduced a Toyota-targeting incentive – reported a 14-percent sales increase in January compared with a year earlier.

“What we responded to last week was feedback from our dealers who were hearing from Toyota owners who wanted to get into a new vehicle,” explained Susan Docherty, GM’s North American vice president of sales and marketing. “Our January go-to-market plan had been to focus on our loyal owners. So we needed to adjust our incentives” after Toyota’s troubles deepened, opening an opportunity for rivals.

Honda’s January sales, however, dropped 5 percent. It did nothing special to target Toyota owners. Meantime, Honda also had to cope with the fallout from its own announcement of a recall of 646,000 Fit/Jazz and City models, including 140,000 in the United States, because of a faulty window switch.

Overall, Edmunds.com’s Caldwell said, January was a rather tepid month. Strong incentive campaigns in December had “pulled forward quite a few” retail sales from January, she said. And the return of a relatively normal market for fleet sales in January helped comparisons of this year versus January 2009, when overall fleet sales were abysmal.

“The next big shopping weekend,” Caldwell said, “will be Presidents’ Day” in mid-February. “We should see month-to-month sales growth” for February from January, she said.

GM paragraph up.jpgGM: Regaining Its Footing

Robust fleet business helped GM post a 14-percent overall sales increase in January compared with a year ago, to 146,316 units. Such is GM’s rising confidence that the company firmed up its official forecast of total U.S. light-vehicle sales for 2010, to a range of 11.2 million to 11.7 million units from the previous range of 10.7 million to 11.7 million units.

2010 GMC Terrain - 200.JPG“The economic news continues to be mixed in the U.S., but there are increasingly positive signs of recovery,” said Michael DiGiovanni, GM’s executive director of global industry and market analysis.

But GM’s retail sales fell by 10 percent during the month as the company continued to cope with the nearly complete disappearance, by now, of its Pontiac, Hummer, Saturn and Saab brands from the marketplace.

“We were only selling four brands” in January versus eight a year ago, Docherty noted. The abandoned brands represented less than 2 percent of January sales and now account for less than 1 percent of dealer vehicle inventories. “We’re 10 months ahead of schedule on the wind-down of Pontiac and Saturn brands,” she said.

Meanwhile, fleet sales burgeoned in January. A year ago, GM sold only 13,000 vehicles to fleets; in part that was because the nation’s economy was in crisis, in part it was because the company had chosen to pull ahead about 25,000 fleet sales to December 2008 that had been scheduled for completion in January.

This January, fleet sales rebounded to about 42,000 units, comprising about 29 percent of GM’s overall sales for the month. That was above the 26 percent of sales that has been the average for the company over the last three years.

Still, the GM executives touted the relative progress they’ve been making in retail sales over the last several months, in large part due to strong consumer response to all-new or completely revamped models including the Chevrolet Equinox, Buick LaCrosse, Cadillac CTS Sport Wagon, Cadillac SRX and GMC Terrain.

“Our conquest rates are up” overall, Docherty said, “particularly in large products.” Moreover, she said, GM’s average incentive spending continues to decline while the industry’s continues to rise.

Ford paragraph up.jpgFord: Sales Jump – Thanks To Fleets

January’s overall sales hike of 24.1 percent for Ford Motor Co. looks sensational, but an outsized increase in fleet sales ran interference for stunted retail sales, which dipped about 5 percent, Ford officials said.

Nonetheless, sales were up for all Ford brands (including a hefty 41-percent spike at Volvo) – and every Ford model posted a sales gain in January. The Lincoln division hiked sales by 16 percent and even the Mercury unit improved sales by 6 percent.
And Ford sales officials crowed that market share improved to 16 percent for the month, perhaps as much as 2.5 points better than January 2009′s figure.

But one has to look no further down the sales sheet than to the pre-Cambrian Ford Crown Victoria’s 91-percent sales jump, or the Ranger’s 47.3-percent climb, to know fleet buyers are back in the game after delaying purchases throughout a shaky 2009.

Fleet sales accounted for a hefty 37 percent of Ford’s 116,277 total sales in January – a figure double last year’s 18 percent but a ratio more closely aligning to what chief of U.S. industry analysis George Pipas says will be a “pretty normal” industry-wide fleet-mix average of around 22 to 24 percent in 2010.

Ford’s fleet-heavy sales mix did not go unacknowledged by Ken Czubay, vice president, U.S. marketing, sales and service, underscoring the industry’s relatively meek month that seems to have palpably deflated hopes of putting together a consumer-rallying streak.

“January retail sales to (individual) customers were below our expectations,” Czubay said flatly. The current consumer mindset is all about the perception of there being good deals in the market, he added. In an unexpectedly strong December, Czubay said, buyers responded to what they believed were showrooms rich with attractive deals.

But January’s incentives were lower – at Ford and across the industry – so perhaps consumer perception about dissipating deals was “fueled a little bit by reality,” Pipas conceded. According to Edmunds.com’s proprietary True Cost of Incentives metric, Ford’s average incentive of $3,095 in January was up $55 compared with December, but the industry’s January TCI of $2,382 was notably lower than December’s $2,542, meaning an average of almost $200 less going to consumers.

2008 Ford Ranger - 200.JPGIn addition to the Crown Victoria and the Ranger, Ford’s top performers in January included the Fusion, gaining 49.3 percent, the Mustang, with a 61.2-percent improvement (possibly also fleet-driven) and the Focus, which climbed 33.7 percent.

Ford’s crossovers and trucks all gained, too, led by the Escape’s 28.6-percent increase, a 25.5-percent hike for the Edge and a 9.5-percent gain for the F-Series pickup. The old-school Explorer and Expedition even generated increases, 15.2 percent and 9.3 percent, respectively.

Although the Lincoln unit’s overall sales improved compared with January, 2009, the MKS and MKZ sedans were off by a troubling 16.6 percent and 14.2 percent, with the flagship MKS finding just 1,280 buyers. The MKX crossover rose 26.7 percent, though, and the Navigator somehow improved by 9.7 percent to 726 sales.

Mercury’s gain was driven by the 111.9-percent boost for the Grand Marquis (yes, grandma Mable, they still make it), a 12.1-percent improvement from the Milan sedan and 0.3-percent increase for the Mariner compact crossover. The rest of Mercury’s lineup consists of the Sable (nine units sold in Jan.) and the Mountaineer (-44.3 percent)

Toyota paragraph down.jpgToyota’s Not-So-Excellent January Adventure

Everyone knows the bad news for Toyota. The good news: it probably could have been worse.

Thanks, perhaps, to how late in the month the company’s recall of eight high-volume models came, Toyota’s January sales decline of 15.8 percent seems practically tolerable. Still, it was the company’s single worst sales month in 11 years.

Robert Carter, Toyota Motor Sales USA Inc.’s group vice president and general manager, Toyota division, said the final tally of 98,796 sales was about “23 percent below our internal target.”

Since he also added that sales of the other 11 Toyota-badged model lines not affected by the recall tracked roughly as the company projected, almost all of the decline from last January’s 117,287 sales total seemingly can be attributed to customers turning away from the Camry, Corolla, RAV4, Tundra, Matrix, Avalon, Highlander and Sequoia.

2009 Toyota RAV4 - 200.JPGThe recall didn’t stop the RAV4 from posting a 6.4-percent increase for the month, but it was the only recalled model to break for positive ground. The Camry, 2009′s best-selling model, dropped 17.7 percent, the Corolla, along with RAV4 also in the U.S.’s top-10 best-selling models, declined 3.6 percent; the Matrix, based on the Corolla, already is out of production. Avalon plunged 51.7 percent to a mere 944 sales.

Of the recalled truck models, the usually consistent Highlander slid 15.7 percent in January, Sequoia dove 56.2 percent and the Tundra was off 40.2 percent.

Other trouble spots included the Scion unit, with each of the brand’s three models dropping by double digits, and the small-car swoon was augmented by a 10.3-percent decline for the Yaris.

Toyota’s bright spot for the month was the Lexus premium division: sales were up 14.2 percent, bucking a lengthy slide for the luxury unit. The improvement was fueled by the addition of the HS hybrid, which contributed an incremental 1,247 units to the Lexus’ 15,517 January sales. The ES midsize sedan (+6.6 percent) and the LS flagship’s 30.9-percent turnaround performance made the two the only Lexus passenger cars to post a gain, however.

On the truck side, Lexus’ GX stepped out with an enormous 163.8-percent increase, countered by a 5.5-percent drop from the always-strong RX crossover.

It all added to a market share of 14.1 percent, according to analysts at Edmunds.com, Toyota’s lowest share inat least four years.

Carter insisted that, for now, Toyota’s not concerned with the sales charts. Fixing the 2.3 million recalled vehicles is the company’s first and only concern at the moment, he said.

First, Toyota’s taking care of the customers who own the affected vehicles, “then we’ll get back in the sales business,” Carter said. “We have the best dealers in the country, and they’re going to prove it,” by doing the best job possible to attend to the recall, he added.

Honda paragraph down.jpgHonda Hangs In

Regardless of economic conditions, Honda Motor Co. Ltd. rarely has had to struggle to connect with customers, but the market seems to be insistent on making Honda work harder to monetize its historically enviable brand image.

January was another month that left Honda essentially treading water. Not that many automakers wouldn’t happily take Honda’s 67,479 sales, but the total left Honda down 5 percent compared with last January. And with a few exceptions, performance from individual models was underwhelming.

Sure, the Accord broke out to a fine 35.6-percent gain that amounted to 20,759 units sold. The Civic held its ground with a 12.1-percent improvement, too.

2009 Honda Fit - 225.JPGBut Honda has to be wondering what’s going on with the once-hot Fit subcompact, sales of which have waned in recent months and dipped a fearsome 38.4 percent in January. The month is not known as one of the industry’s strongest, but even in that context, the Fit’s decline must be causing furrowed brows from Ohio to California to Tokyo.

The same can be inferred for the Insight hybrid; in January Honda moved just 1,307 of a vehicle initially projected to easily sell in the 7,500-per-month range. Unless gasoline prices balloon again sometime this year, the unloved Insight may have trouble hitting a quarter of the sales volume Honda envisioned.

The truck side of the business did not begin the year auspiciously, either. Every Honda-brand light truck was down for the month, led by the 33.4-percent slide for the Ridgeline, to a barely-breathing 738 units. The hoary Element trailed Ridgeline by two sales in January, a 30.8-percent slide. And even the dependable CR-V dropped a meddlesome 20.3 percent, while the blocky Pilot dropped 21.1 percent to sales of 4,865.

At the Acura upscale division, each of the brand’s three cars declined in January, led by the RL’s drop of 42.7 percent to an infinitesimal 110 units. Worryingly, perhaps, the midsize TL’s 1,986 sales outpaced Acura’s usual best-seller, the entry-level TSX, with just 1,806 sold in January, a drop of 18.7 percent compared with last year.

Acura’s MDX crossover was January’s saving grace, pushing to a 20.3-percent gain, while the RDX also had one of its better recent months, declining just 5.3 percent. Meanwhile, the all-new ZDX cross-whatever’s contribution of 172 sales can’t have too many Honda executives wondering what they’ll do with all the bonus money tied to Acura volume increases.

Nissan paragraph up.jpgNissan: Nose to the Grindstone

Nissan posted a 16-percent increase in sales in January, to 62,572 units compared with 53,884 units a year earlier. The results continued recent monthly gains for Nissan and moved the company at least temporarily into sixth place in overall U.S. auto sales, ahead of fast-dropping Chrysler Nissan Versa - 210.JPG.

At the same time, Nissan’s spending on incentives in January rose by an average of 14 percent per vehicle, according to Edmunds.com’s proprietary True Cost of Incentives formula. It rose about $200 to $2,455 from December 2009 to January, meaning that the company was still trying hard to “buy” sales in an overall January market that saw incentive spending ease.

“Nissan had a true sales increase,” noted Edmunds.com’s Caldwell, “but they had high incentive spending.”

The company’s gains were led by a 19-percent increase in sales of its Nissan brand. Sales of the Versa subcompact, for example, rose by 18 percent compared with a year earlier, to 5,914 units – setting a record for the month of January.

Other Nissan vehicles recording double-digit sales increases in January compared with a year ago were Armada, Maxima, Sentra, Altima and Frontier.

The Infiniti luxury marque struggled, however, with overall sales for January down by about 6 percent compared with a year ago in a U.S. luxury market that remains depressed. Sales of Infiniti’s M, EX and FX models plunged by high double-digit percentages compared with a year earlier.

Chrysler paragraph down.jpgChrysler: Searching for a Platform

Chrysler is going to advertise its poor-selling Dodge Charger during the Super Bowl telecast on Sunday, the first time in several years that any of the company’s products or brands have made an appearance. But the modest buzz around Chrysler’s re-entry into the Big Game is about the only thing the company is doing these days that could be construed as good news.

January sales brought more dismal results. Chrysler Group reported total U.S. sales for the month of 57,143 units, a decline of 8 percent compared with a year earlier. For a month in which other major competitors posted sales increases, Chrysler’s poor showing plunged it to sixth place overall among the U.S. auto market’s Big Seven – now, behind Nissan and ahead of only Hyundai.

2009 Dodge Journey - 210.JPG What’s more, Chrysler only tread water with the help of a big boost in fleet sales in January. “Chrysler is not getting a lot of retail interest in its vehicles right now, period,” said Edmunds.com’s Caldwell. “So until they get their new products out, or something to talk about, we can’t expect to see any positive results coming out of Chrysler – even with heavy incentives on their vehicles.”

The best highlight that Chrysler was able to muster was that its Dodge Journey crossover posted year-over-year sales gains in January for the third consecutive month. Also, the Jeep brand saw half of its lineup improve sales year-over-year, Chrysler said. And the Town & Country minivan saw sales jump by 6 percent while its Dodge Caravan counterpart saw sales rise 34 percent.

Meanwhile, sales of Chrysler’s once-stalwart 300 sedan plunged by 26 percent from a weak January 2009, and sales of its Charger and Dodge Challenger muscle cars declined by 47 percent and 39 percent, respectively.

“The company continues to make positive strides each month and that trend continued in January,” said Fred Diaz, president and chief executive officer of the Ram brand and lead executive for Chrysler’s overall sales organization. Diaz also pointed to Chrysler’s plans for “refreshed products and all-new models hitting the marketplace this year.”

Obviously, for Chrysler, they can’t come fast enough.

Hyundai paragraph up.jpgHyundai: Bolts For The Front

With January sales of 52,626, the Hyundai Group (the Hyundai and Kia brands combined) is putting together a run that soon may take it past sputtering Chrysler Group LLC and bring it within sight of Nissan Motor Co. Ltd.

Chrysler – the nation’s No. 6 seller – sold less than 5,000 units more than Hyundai in January. Nissan, despite its own 16.1-percent sales increase, sold less than 10,000 units more than Hyundai last month. Hyundai, with a string of new models in the pipeline, could give both traditionally larger rivals a genuine run this year.

2011 Kia Sorento - 300.JPGAfter all, Hyundai has rarely been shy about incentives, but in January, its incentive levels, measured by Emdunds.com’s True Cost of Incentives index, averaged $2,096 per vehicle -  almost $1,000 less than Chrysler’s ($3,061) and even markedly less than Nissan’s $2,455.

Hyundai’s potential surge is highlighted by the solid January breakout of the all-new 2010 Tucson, which bolted to 2,216 sales in an early-launch month. The number was a 128-percent increase over the old Tucson’s sales last January, Hyundai said.

Meanwhile, the Elantra compact car more than doubled sales, from 3,307 last January to 7,690 this year. The Accent subcompact also gained by a healthy 62 percent. The Genesis flagship improved by 58 percent. On the passenger-car side, only the building-out, current-generation Sonata lost ground, losing 62 percent.

Hyundai’s Santa Fe crossover gained by 43 percent, although the fullsize Veracruz dropped 66 percent to a paltry 401 sales.

In all, Hyundai sold 30,503 vehicles in January, while Kia kicked in with 22,123 sales.
Kia was led by a blistering performance from the new ’11 Sorento crossover, which found 7,398 buyers in January, more than Toyota’s Highlander (4,478), double Nissan’s Murano (3,648), and more than Ford’s Edge (6,243).

Incremental gains for Kia in January’s flat performance include 3,732 sales of the compact Forte and 2,145 units of the Soul hatchback.

VW/Audi: Running a Strong, But Distant No. 8

As the Big 7 automakers jockey for position, Volkswagen-Audi ranks as the No. 8 manufacturer selling vehicles in the U.S., albeit a distant No. 8. Combined, the brands sold 24,529 vehicles in January, up 40 percent from 17,466 in January a year ago. That gives them 3.5 percent market share.

Volkswagen contributed the bulk of those sales: 18,019 vehicles for a 41-percent increase. January 2010 marked Volkswagen’s seventh consecutive sales month of growth.

“We are pleased by the strong start to 2010,” said Mark Barnes, Volkswagen of America chief operating officer. “It’s encouraging to see so many of Volkswagen’s newest models continuing to gain momentum in the marketplace — namely the CC, Tiguan, Golf and GTI.”

Of Volkswagen’s total, Jetta stood as the sales leader with 8,893 vehicles sold. CC sales soared 76 percent to 1,891 units. Tiguan sales skyrocketed 87 percent to 1,424 vehicles. The Routan minivan, made by Chrysler, had a 6 percent increase. Even the old New Beetle had a shopping 173 percent increase in sales that totaled 2,167 vehicles. The new Golf and GTI are just hitting the market. Passat sales, however dropped by a third. Volkswagen sold 2,447 diesels in the month.

2010 Audi A3 - 250.JPGAudi sold 6,510 vehicles for a 38-percent increase over a year ago, giving the Germany luxury brand added momentum after a strong December.

“Having ended 2009 on such a high note, it was important to ensure that our success was substantive and enduring,” said Audi of America President Johan de Nysschen. “January sales figures reinforce the notion that our momentum is the byproduct of relentless innovation years in the making.”

Audi A3 sales jumped 106 percent, largely due to the availability of the A3 TDI clean diesel model. Audi had a strong month for diesels: half of A3 sales were diesels, 48 percent of Q7 sales were TDI. Audi said that level of demand far exceeds original expectations for TDI sales when Audi introduced the two models last year.

Sales of the Audi A4 sedan, the brand’s bestseller, rose 60 percent. Other A4 variants rose 34 percent. Audi A5 sales were up 74 percent to 1,051 vehicles; Q5 sales rose from last year’s 31, when it was just introduced, to 1,050 vehicles.

Audi still has its laggards. It sold a scant 52 units of the soon-to-be-replaced A8 for a 45-percent drop, only 43 R8s for a 60-percent decline, and 103 TTs for a 34-percent drop. A6 sales declined 35 percent to 507 units.

Mazda Holds Its Ground

Mazda North American Operations posted an essentially flat January, with sales up 1.8 percent to 15,694 vehicles. Mazda held 2.2 percent market share

The brand’s Mazda3 compact car was the volume seller at 7,368 units, but the number represented a 3.7-percent drop compared with January 2009.

Mazda’s top gainer in January was the CX-7 crossover, which increased 39.3 percent to 1,622 sales. The Mazda5 mini-minivan rose 21.4 percent and the Mazda6 sedan rounded out the brand’s improving sellers with a 14-percent gain.

Sales dropped a heavy 41 percent for the RX-8 sportscar to a demoralizing 92 total units, while winter was slightly kinder to the evergreen MX-5 roadster, which declined 15 percent. The Tribute compact crossover slid 42.1 percent and the fullsize CX-9 crossover dropped 12.8 percent.

Subaru: Records Shattered – Again

2010 Subaru Outback - 250.JPGAfter a gravity-defying performance in 2009, Subaru continued to shatter its own records and sped past other makes by reporting a 28-percent sales increase over January 2009. Subaru sold 15,611 vehicles in January 2010, compared with 12,194 units sold in January 2009. That pushed Subaru’s market share to 2.2 percent, up from last January’s 1.9 percent.

January’s surge also allowed Subaru to clinch the No. 9 sales spot in the U.S., speeding past Daimler brands’ Mercedes and smart as well as BMW and Mini combined. In 2009, Subaru handily whipped Mercedes-Benz in sales but the BMW brand still sold more vehicles than Subaru. In 2010, Subaru outpaced both BMW Group and Daimler.

Leading the charge were Subaru’s newly redesigned Outback and Legacy, which posted their best January sales ever. At 5,467 sold in January, the Outbacked doubled sales from 2009. Likewise, Subaru sold 2,448 Legacy models, also double what it sold a year ago.

Forester sales retreated slightly – 4 percent – from its 2009 blistering pace. Impreza sales were off 15 percent; Tribeca sales fell 38 percent to a mere 256 units sold.

Daimler: Mercedes Gets No Help from Smart

Daimler AG eked out a narrow lead over rival BMW with Mercedes-Benz and smart sales totaling 15,436 vehicles, a 26-percent climb from a year ago that gave the company 2.2 percent of the U.S. market.

But smart was no help. The relative newcomer to the U.S. sold a scant 278 fortwo vehicles in January, an 84-percent plummet from the 1,776 sold in the year-ago January.

In contrast, Mercedes-Benz saw sales soar 45 percent to 15,158 vehicles. The C-Class returned as Mercedes’ volume seller – 4,028 sold for a 33 percent rise from a year ago. The new E-Class wasn’t far behind, knocking in 3,824 units for a 166-percent hike.

Also posting beefy double-digit increases were: S-Class; SL-Class; M-Class; G-Class; GL-Class; and GLK-Class. And Mercedes sold 436 Sprinter cargo vans, which previously was sold by Dodge but is no longer due to the split of Daimler and Chrysler.

Posting equally hefty double-digit declines were the CL-Class, CLK-Class, SLK-Class, CLS-Class and R-Class.

BMW Group: BMW, Mini Off to Good Start

The BMW Group, including the BMW and Mini brands, sold 15,410 vehicles in January, a nearly 8-percent increase from a year ago. That gave the BMW group a 2.2 percent market share.

In contrast to Daimler’s smart, Mini, which had its own struggles in 2009, came out of the doldrums, posting sales of 2,247 vehicles, up 8 percent from a year ago.

BMW sales rose nearly 8 percent to 13,163 vehicles. BMW car sales rose 15 percent. The new 7-Series chipped in 1,300 sales. Still, car sales were offset by 12-percent decline in SUV sales.

“Traffic in our showrooms was a bit sporadic this month, but combined with a strong December we are delighted to see a positive January gain,” said President of BMW North America Jim O’Donnell.

Mitsubishi Slides

Mitsubishi sold 4,170 vehicles in January, a slight decrease fro last year’s 4,730 vehicles. It’s market stood at 0.6 percent.

Mitsubishi said Galant sales rose 22 percent from a year ago, Endeavor sales were up 128 percent from then and Outlander sales were about even with a year ago.

Jaguar/Land Rover Sales Dip

Jaguar Land Rover North America was one of the few manufacturers to report lower sales this January than last. The company sold 2,589 vehicles, down 3 percent last January. The brands combined hold 0.4 percent market share.

The drop was caused by lower Jaguar sales. The automaker sold only 631 Jaguars, down 19 percent from 781 sold in January 2009. The Jaguar XK bucked the marque’s trend with sales up 41 percent to 138 units. Still the XF and XJ, which is being wound down, dropped.

Land Rover sold 1,958 vehicles, up 4 percent from a year ago. Ranger Rover Sport, for the second consecutive month, had a sales increase – 46 percent to 823 units. LR4 sales were up 12 percent. Range Rover and LR2 sales were down double digits.

Suzuki Plunges 44 Percent

Despite gains of 5 percent for the Grand Vitara crossover, 12 percent for the SX4 lineup and even a 97-percent jump for the Equator pickup, American Suzuki Motor Corp.’s total sales still dropped 44 percent compared with last January. Suzuki sold a total of 2,040 units last month for a 0.3 percent market share.

The tiny brand couldn’t overcome the 978 sales lost from the discontinuation of the Forenza/Reno line or the 1,000 units-plus gone with the XL-7 crossover.

Those losses could not be made up by the meager 197 sales for the all-new, recently launched Kizashi sedan, a performance that cannot be encouraging for Suzuki or its enthusiasts. The Kizashi went on sale in early December last year and sold 71 units in its first month on the market, so January’s 197 sales did represent a 270-percent month-over-month gain.

Panamera Sales Move Porsche Forward

After a rough 2009, Porsche sales edged higher in January compared with a year ago.
The sports car maker sold 1,768 vehicles in the U.S. for an 8-percent increase and a 0.3 percent market share.

The rise came on the strength of the new Panamera. Porsche sold 534 of them. Sales of the rest of Porsche’s models were down significantly.

“In this environment, we are very pleased with the sales performance of our new Panamera, which continues to build up market share,” said Detlev von Platen, Porsche Cars North America’s president and CEO. “Even though we see a small ray of sunshine in consumer confidence, the luxury car segment remains challenging, especially for sports cars.”

Toyota Prius Recalls Coming

ORLANDO — Toyota could soon launch a new massive recall, this time for brake problems with its popular Prius hybrid, according to published reports.

The news is yet another hit on the auto giant’s reputation, as Toyota is still reeling from an earlier recall of millions of other model vehicles plagued with sticky gas pedals.

According to Japan’s top business newspaper, Toyota is now considering a recall of 270,000 of its 2010 Prius hybrids because of a software glitch with the antilock brake system.

The same newspaper also reported the automaker is investigating possible problems with brakes in two other hybrid models, including the luxury Lexus.

According to The Associated Press, Toyota acknowledged Thursday it was looking into a glitch, which it fixed in 2010 Prius models sold since late January, but was still working to determine how it would notify Prius owners who had bought the hybrid before the new year.

Can’t Wait To Buy A Toyota

Call me a contrarian, but I think the Toyota recall will be a great buying opportunity.  Not for the stock (TM), because I have been burned so badly by Japanese stocks over that last decade, that I swore them off. But I’m going to need a new car in the spring and I have my sights set on a brandy-new Toyota!

Just as dealers were busy repairing the acceleration issue, there are new reports that the problems could be electrical, and oh, by the way,Prius owners have to pay attention to new claims.

Who in her right mind would buy a car from Toyota right now? EvenTransportation Secretary Ray LaHood told people to stop driving Toyotas, a comment he subsequently retracted.

But what better time to buy a car than at the moment the company is hyper-focused on safety? Maybe Toyota will even offer incentives, something it has avoided in the past. So I’m getting ready to land myself a sweet deal from Toyota and if I’m wrong, I promise to write extensively about the problems I encounter.

Image by Flickr User robad0b, CC 2.0

I FOUND THIS BLOG POST ON BNET. IT WAS FOLLOWED BY SEVERAL COMMENTS FROM READERS, PRETTY MUCH ALL FAVORABLE. WHILE RECENT RECALLS MAY FRIGHTEN SOME, OTHERS MAY JUST SEE IT AS A BUYING OPPORTUNITY…

The Ten Traits of High Sales Performers

A big benefits-management company recently conducted a survey where they asked 365 CEOs and sales-management executives, “What are the three key factors that separate high-performing sales professionals from moderate- to low-performing sales professionals?”

Both CEOs and C-level sales executives (all people who don’t sell, but rely on their salespeople so they get paid) ranked self-discipline/motivation as the most important factor.

Next in line were customer knowledge, innate talent/personality and product knowledge. Further down the list were experience and teamwork skills. Totally bogus.

These are qualities of corporate greed, not value, service or help—the three things that customers require to give you their business and maintain loyalty.

If you’re interested in the most important qualities of a high-performing salesperson, let me give you a realistic list of success characteristics.

  1. Perpetual, consistent, positive attitude and enthusiasm. This is the first rule of facing the customer, facing the obstacles, facing the competition, facing the economy and facing yourself.
  2. Quadruple self-belief. Unwavering belief in your company, in your product and in yourself are the first three parts. But most critical: You must believe that the customer is better-off having purchased from you.
  3. Use of creativity. Use creativity to present ideas in the customer’s favor and to differentiate yourself from the competition.
  4. Ability to give and prove value. Prove the value of your product or service, as well as your ability to give value to the prospect beyond the sale so you earn the order, the reorder and the loyalty.
  5. Ability to promote and position. Your use of the Internet to blog, create e-zines, utilize social media and achieve Google top ranking leads customers to perceive you as a value provider and a leader in your field.
  6. Exciting, compelling presentation skills. You must develop not just solid communication skills, but superior questioning skills, listening skills and a sense of humor, as well as the innate ability to capture the imagination (and the wallet) of customers.
  7. Ability to prove your value and claims through the testimony of others.Testimonials sell where salespeople can’t. The best salespeople use video testimonials to support their claims. But you don’t get testimonials; you earn them. Same with referrals.
  8. Ability to create an atmosphere where people want to buy (because they hate being sold). This is done by engaging and asking, not presenting and telling.
  9. Ability to build a relationship, not hunt or farm. I wonder if the executives talking about the factors of great salespeople are the same morons dividing their salespeople into hunters and farmers. Great salespeople are relationship builders who provide value and help their customers win.
  10. Unyielding personal values and ethics. Great people have great values and great ethics. It’s interesting that 365 executives don’t deem them in the top 10.

What Motivates Buyers to Receive and Engage with Vendor Email?

NOTE: ALTHOUGH THIS RESEARCH WAS BASED ON VENDORS SELLING IT PRODUCTS TO LARGE COMPANIES, THERE ARE STILL SOME IMPORTANT LESSONS TO BE LEARNED HERE=DP

At last month’s MarketingSherpa Email Summit, Bob Johnson, VP and Principal Analyst, IDG Connect, presented exclusive new research into technology buyers’ email opinions and habits. Topics included factors that influence buyers to opt-in and open vendor email, and how specific content and offers affect subsequent actions, such as pass-along and clickthrough.

We’re now highlighting key takeaways from that research. First is a look at the value buyers place on email as an information source, and which factors make them more likely to receive email from a vendor. Includes four new charts and insights into what the numbers mean for marketers.

The good news for B2B marketers is that buyers still consider email one of the most valuable sources of product and services information during a purchase process.

But to make the most of this opportunity, marketers need to understand what makes buyers more likely to sign up for (and open emails from) vendors — and what buyers say are the biggest weaknesses in the emails they currently receive.

The data below helps answer such questions. In partnership with MarketingSherpa, Bob Johnson fielded two surveys on the subject of B2B marketing email. One asked buyers about specific factors that motivate them to receive, open, or engage with vendor email. The second presented the same questions to B2B marketers, but asked them to specify what they believed motivated buyers who receive their emails.

The gaps between what buyers say and what marketers believe represent great areas for potential improvement. Here are four insights Johnson offers from the data on what motivates buyers to receive and open email:

Insight #1. Buyers rely on email more than marketers think

View Chart Online

Marketers and technology buyers both identified search and email marketing as the two most valuable channels for receiving information about products and services. But marketers are underestimating how much weight buyers still place on information delivered through email — especially compared to social networks.

- 32% of buyers said email was their favored method for receiving product/services information, compared to 20% of marketers who believed email was a buyer’s favored method.

- Only 12% of buyers said social networks were their favored method of receiving information, compared with 18% of marketers.

So, if you’re working to integrate social media into your lead-generation strategy, don’t assume that social media activity can replace email outreach. Johnson’s research has found that buyers tend to use social media most heavily at two stages of the buying process:
o General education
o Business-case development

In and around these stages, well-timed emails that deliver relevant content, and offers that prompt prospects to take an action, are crucial touches that help move them to sales-ready status.

Insight #2. Provide offers that direct readers to take the next step

View Chart Online

Underwhelming offers are the biggest weakness of most emails, according to buyers. Marketers also identified lack of compelling offers as a significant weakness, though with less emphasis than buyers.

The effort to provide relevant content in an email message might cause marketers to overlook the importance of tying content to a compelling offer. In this case, Johnson says, the offer should be a call-to-action that offers a clear next step — or options for next steps — that helps readers build understanding of an issue, and to make buying decisions.

“Marketers can always ask themselves if the email represents an island, in that there are not different directions the user can move as a result of reading it,” says Johnson.

Insight #3. Personalized sender information can increase engagement

View Chart Online

Buyers cited “known sender” as the most important factor in determining whether or not they open an email. But making the most of this opportunity means more than just using your company’s name in the “from” line, says Johnson.

Marketers should consider personalizing B2B email communications with an individual’s name — preferably, a name connected to a particular business area, job function or area of expertise that’s most relevant to the prospect. For example, emails aimed at IT prospects could come from a member of the organization’s technical staff. Likewise, emails related to a specific business function, such as finance, should come from a team member who is an expert in those topics.

In fact, marketers may be able to increase their email communication with prospects by using multiple personalized senders. When the survey asked about senders from which buyers were most likely to open emails, two different types of vendor personnel were ranked #2 and #3 (behind industry peer):
o Vendor subject matter expert
o Vendor product/service support

“You are trying to build up individuals to have not a guru status, but some level of personal contact,” says Johnson.

Insight #4. Appeal to buyers’ personal, not just organizational, motivations

View Chart Online

Marketers and buyers were largely on the same page when it came to naming specific factors that motivate buyers to receive more email from a vendor. Both groups picked the same factors as the top two motivators:
o Email that helps buyers in their jobs
o Email that offers fresh insight and ideas

But pay close attention to buyers’ third ranked choice: An area I want to learn about.

This response reflects the importance of personal and professional aspiration in buyers’ decision-making processes. “Buyers want to do good job for the organizations work for, but they’re also looking out for number one,” says Johnson. “So much of an investment decision, no matter how rational and practical people say it is, is really more emotional.”

By contrast, marketers ranked personal learning areas dead last as a motivator. The discrepancy represents a common mistake often made by marketers, says Johnson. They tend to focus email copy and content on the benefits offered to a buyers’ organization, rather than to the buyer him- or herself.

Look for opportunities to frame product and service descriptions around the personal benefits a buyer will reap — or the threats and concerns they face. For example:
o Presenting concerns in a peer-to-peer manner — “Did you know that 65% of IT managers are concerned about X?”
o Highlighting managers’ personal responsibility for inefficient processes or system downtime
o Describing how managers can benefit when they improve their department’s efficiency and financial performance

Growth of Social Media in Real Time : Hard Data

http://techtified.com/2009/10/growth-of-social-media-in-real-time-hard-data/

Kill Your Online ID Via ‘Cyber Suicide’

People have been fired for what they post on social networking sites. Some college students said their Facebook and MySpace pages have cost them job offers.

How can you get rid of the virtual path you have made of yourself? Commit “cyber suicide.”

Suicidemachine.org is a one-stop site where you can wipe out all your mistakes, all your profiles and virtually disappear in cyberspace.

In a Skype interview, the founders of Suicide Machine, Walter Langelaar and Gordan Savicic, explained how it works.

“The machine logs into your account, changes your profile picture, changes your passwords and then goes into the friends, your tweets, your contact information and starts deleting everything,” they said.

This could take 10 hours per site if you did it on your own. Some sites may still store and own your images and data. Suicide Machine is supposed to totally wipe out your account in less than an hour.

“The funny thing is you get to watch it on your own computer. You can watch your whole profile being emptied,” the Austria-based founders said. “Everything goes into the trash can, we don’t store anything from those profiles. We don’t store information. We’re just using the removal tools available.”

Facebook has noticed and is not happy tools like Suicide Machine can wipe out their system. Facebook served Suicide Machine with a cease and desist order and also blocked the IP address at one point.

For now, Suicide Machine has rerouted traffic, wiping out Facebook profiles once again.

The site gets about 25,000 visitors a day and only about 10 percent are able to commit “cyber suicide” on their first try.

More than 2,000 people have pulled the plug successfully. Nearly 200,000 friends have been “unfriended” and more than 300,000 tweets have been removed since the site launched seven weeks ago.

Toyota Sales Surge, Despite Wave of Bad News

Toyota showed a dramatic U.S. sales recovery in the first two weeks of March. Of course, so did the rest of the industry, which is on track to sell 12 million cars in 2010, compared to just over 10 million in  2009.

But it was Toyota’s performance that stood out, given the endless bad publicity it has been enduring. My theory is that people’s personal experience with Toyotas trumps the second-hand bad news. They worry somewhat about sudden acceleration, but they’re reassured by statistics that suggest it’s very unlikely to happen to them.

Part of my evidence for this is anecdotal, since no less than three people (including my mother) told me, unsolicited, of their loyalty to the Toyota brand in the last few days. They’d buy Toyotas again.

Toyota’s reliability is not in question. In a J.D. Power survey released March 18, the Lexus brand was third overall, and the Toyota brand fifth. Four Toyotas (the Highlander, Prius, Sequoia and Tundra) were first in their segments, more than any other manufacturer. (Here’s a summary of 2010 Toyota ratings by J.D. Power.)

A warning sign for Toyota, though, is that the latest report fromKelley Blue Book shows Toyota falling from the top spot in brand loyalty. Hyundai was number three, but now Toyota occupies that spot and Hyundai is number one, and Honda second. Given the circumstances, being third is still a very good showing.

Incredible incentives are also helping Toyota. I’ve heard from many friends who say they’re attracted by Toyota’s great deals, especially because (unlike FordGM and Chrysler) the Japanese automaker has rarely discounted before.

As the Wall Street Journal noted, “The Japanese auto makerusually refrains from big incentive campaigns, but began offering zero-percent financing, cash rebates and subsidized leases to halt a slide in its U.S. market share in the past two months.”

Jeff Schuster of J.D. Power’s global forecasting unit warned that Toyota could spark an “incentive war” among major carmakers, andJeremy Anwyl, chief executive of Edmunds.com, cautioned that the sales bounce we’re seeing is largely due to the incentives—take those away, and the bounce goes away, too.

Despite its many missteps on sudden acceleration, Toyota has built very good cars for a very long time. Don’t bet against it coming out of its crisis and regaining its status as America’s favorite car company.

Price War: Honda and Toyota Get Down and Dirty, helping to boost March auto sales

Price wars and discounting used to be the province of beleaguered companies from Detroit. Now Honda (HMC) and Toyota (TM) are down in the bargain mud, too — and helping to boost March auto sales.

Forecasts for annual U.S. auto sales for the month are around 12.5 million range for theSeasonally Adjusted Annual Rate. That’s a sharp improvement from a 10.8 million SAAR in January 2010 and 10.4 million in February.

“The shape of the U.S. SAAR over the rest of the year will largely depend on how long the industry’s pricing battle goes on,” saidBrian Johnson, auto industry analyst for Barclays Capital.

Toyota kicked off the discounting this month with offers of zero-percent loans, to boost demand in light of the unintended acceleration disaster. Honda responded with cheap, no-money-down lease deals.

Such steep discounts are unusual for the Japanese carmakers, because their cars have typically been in higher demand than U.S. brands. Last month, before the current round of price-cutting kicked in, Edmunds.com said Honda’s incentives averaged about $1,400, less than half the level of Chrysler, Ford and GM. Toyota incentives averaged about $1,800, according to the shopping and research web site.

Meanwhile, ChryslerFord (F) and General Motors are bending over backwards to cut production and try and reduce the need for deep discounts, especially since Chrysler and GM went bankrupt last year. The results have been mixed.

Edmunds.com CEO Jeremy Anwyl said in a written statement the Toyota deals are unlikely to last, because Toyota’s inventories of unsold cars aren’t that high. The Toyota deals are set to expire April 5.

“Although this SAAR sounds promising,”Anwyl concluded, “it’s too early to wave the flag and say that the economy has turned the corner.”

Complimentary Research Report: MarketingSherpa’s Top B2B Tactics for 2010

You know the marketing world is changing – but how quickly, and how should you respond?
One of the best ways to judge the pace of transition that is right for your company is to study your peers. Other B2B companies are asking the same questions that you are; what answers are they coming up with? How much email marketing and what kind of email marketing is right? How much time are they spending on social media? What are they doing in social media? Are they giving up trade shows? MarketingSherpa’s 2010 B2B Benchmark Report provides answers to these questions.

A smart, well-researched report on the state of B2B marketing, this report provides a quantitative look at the tactics your peers are employing in the following areas:
* Email Marketing
* Social Media Marketing
* Website Management and Metrics
* Search Marketing
* Offline Marketing
* Public Relations
* Tradeshows

Download Your Excerpt Now

A large portion of this report, normally several hundred dollars, is available for free download here: http://www.hubspot.com/marketingsherpas-top-b2b-inbound-marketing-chapter/?source=email-20100329b-b2b. The 2009-10 MarketingSherpa B2B Marketing Benchmark Report is available for full download with a $100 savings discount from HubSpot here: http://B2BHandbookHub.MarketingSherpa.com

Top 4 reasons buyers remain loyal

Nothing motivates buyers to buy more — or more often — than these four emotions, according to a recent study:

  1. Protection: How strongly do you guarantee each buyer’s investment? How do they know they’re safe doing business with you?
  2. Confidence: Are buyers always kept in the loop about new products or changes to existing ones? How do you reinforce the notion they’re receiving the best value on the market?
  3. Appreciation: How do buyers know you value their loyalty? Do you offer buyer rewards or preferred customer status based on loyalty and purchase levels? Do you offer membership programs that offer buyers incentives, while locking them in as long-term customers? Are there volume discounts? Price breaks?
  4. Service: Do salespeople maintain contact with buyers consistently? Is there a system to ensure customer problems are resolved quickly and efficiently? Do customers feel confident their orders will be fulfilled quickly and correctly?

And determining just how loyal or engaged your buyers are can be tricky. But here are three decent indications salespeople are building strong relationships:

  1. More referrals: Engaged buyers are sending more business your way (you may even want to consider offering incentives to encourage referrals).
  2. Less customer turnover: Engaged buyers know they’ve got it good.
  3. More feedback: Engaged customers feel more comfortable sharing feedback about what they like (and don’t like), mostly because they view their relationship with your company as a partnership.

GM Advertising False Claim That Bailout Was Paid Back “in Full”

Ad agency McCann Erickson’s historic motto is “Truth Well Told,” which is unfortunate because its latest ad for General Motors — one that claims that “we have repaid our government loan, in full, with interest” — isturning out not to be true.

It’s the oldest PR mistake in the book: Don’t make a public statement if a rudimentary fact-check demonstrates that your claim is false. And certainly don’t have your CEO say it — which is what this ad does (video below).

The commercial accompanied a press release last week that saidGM had repaid $5.8 billion to the U.S. and Candian treasuries — a rare piece of good news for the automaker, hooked to the public’s dislike of the bailout. You can see why they were keen to make it into an ad. The spot starred GM CEO Ed Whitacre, who has fronted McCann’s corporate image work for GM before.

According to a letter sent by Sen. Charles Grassley, R-Iowa, to U.S Treasury Secretary Tim Geithner, $17.4 billion was made available to GM in an escrow account at the Treasury. After $6.7 billion was paid back, a further $5.6 billion was to be released to GM:

Therefore, it is unclear how GM and the Administration could have accurately announced yesterday that GM repaid its TARP loans in any meaningful way. In reality, it looks like GM merely used one source of TARP funds to repay another.

The Houston Chronicle’s Loren Steffy notes that $5.8 billion is merely a fraction of what the U.S. actually invested in GM:

For starters, the Obama administration bigfooted the bankruptcy process last year, benefiting autoworkers at the expense of investors. Bondholders wound up with a smaller stake in the new company than retirees, who were owed less. As I wrote at the time, almost one-fourth of the GM bondholders were small investors, many of whom held the bonds in retirement accounts.

Meanwhile, taxpayers in the U.S. and Canada invested about $50 billion to buy a 61 percent stake in GM. Neither the cost of the bondholders’ haircut nor the current value of taxpayers’ investment is known because GM’s stock isn’t publicly traded.

Worse, a GM exec later admitted the claim in the commercial is literally false. Grassley quoted a TV interview in his letter in which GM vice chairman Stephen Girsky was asked:

Question: Are you just paying the government back with government money?

Mr. Girsky: Well listen, that is in effect true, but a year ago nobody thought we’d
be able to pay this back.

The most astonishing part of all this is that Whitacre himself made the claim and appeared in the ad. He must have known, in broad terms, what GM’s true financial position with the government was. McCann has more of an excuse: If the client approved the spot, so be it. But the agency is running a risk here: If it was a smart strategic partner — instead of a vendor hoping to secure the account by making Whitacre feel like a TV star –  it would have checked the script and advised against airing the spot.

SCARY:OFFICE COPIER SECURITY RISK

http://www.cbsnews.com/video/watch/?id=6412572n&tag=related;photovideo

Toyota back-to-back U.S. sales increases,as auto demand continued recovering in April

May 4 (Bloomberg) – Toyota Motor Corp.extended discounts that brought back-to-back U.S. sales increases, and Nissan Motor Co. led the largest Asia-based carmakers’ gains for the second month in a row as auto demand continued recovering in April.

Deliveries for Nissan rose 35 percent from a year earlier, while Toyota yesterday reported a 24 percent advance after continuing no-interest loans and discount leases on most of its namesake brand’s models in April. Honda Motor Co. posted a 13 percent increase andHyundai Motor Co. sales were up 30 percent.

“Toyota’s incentives pretty much set the pace,” said James Bell, executive market analyst for Kelley Blue Book in Irvine, California. “Everybody being up a little bit is tied to the Toyota program — it’s raising the tide for the industry.”

Toyota recalls of more than 8 million autos globally for flaws linked to unintended acceleration and congressional hearings that tainted its image led the world’s largest automaker in March to introduce discounts across its lineup. For now, that strategy will remain in place.

“Our brand has taken some bruises over the past couple of months,” Bob Carter, U.S. vice president of Toyota sales, said in a conference call yesterday. “I don’t see us changing our incentives in the short term.”

Sales Jump

The Tokyo Stock Exchange is closed for a holiday. Hyundai rose 3,500 won, or 2.6 percent, to 138,000 won in Korea Stock Exchange trading. Affiliate Kia Motors Corp., which boosted sales 17 percent, gained 1,150 won, or 4.1 percent, to 28,950 won in Seoul.

U.S. industrywide auto sales rose 20 percent in April to 982,131 cars and light trucks, according to Autodata Corp., a research firm based in Woodcliff Lake, New Jersey. U.S. sales have risen for six consecutive months.

The Asia-based brands boosted their combined U.S. market share to 46.5 percent, a 1 percentage point gain from a year earlier, Autodata said.

General Motors Co., Ford Motor Co. and Chrysler Group LLC, the U.S.-based automakers, held 45 percent, a one-point drop. Sales rose 6.4 percent for GM and 25 percent each for Ford and Chrysler.

Toyota sold 157,439 Toyota, Lexus and Scion vehicles last month, rising from 126,540 a year earlier. The Toyota City, Japan-based company said the increases were led by Corolla small cars, Prius hybrids, Avalon sedans, Highlander and RAV4 sport- utility vehicles, and Sienna minivans.

The automaker, which last month recalled Lexus GX 460 SUVs to adjust stability controls, is expanding production of most models in North America because of rising demand, Carter said.

Toyota Incentives

The incentives being extended through May include no- interest loans on seven models, discounted leases on 10 others and two years of no-cost maintenance for all new vehicles, Carter said.

“It’s largely in the same direction” as April, with some regional variation, particularly for Camry sedans, he said.

Toyota incentives averaged $2,498 per vehicle in April, up from $1,634 a year earlier, according to Edmunds.com, a Santa Monica, California-based provider of industry data.

Toyota’s market share for the month rose to 16 percent, from 15.4 percent in April 2009, according to Autodata.

Honda, Japan’s second-largest automaker, sold 113,697 Honda and Acura vehicles, compared with 101,029 a year earlier. The Tokyo-based company benefited from demand for Accord sedans, CR- V, Pilot and Acura MDX SUVs, and Ridgeline pickup trucks.

Honda’s market share for the month was 11.6 percent, a drop of 0.9 percentage point, according to Autodata.

Nissan’s Gains

Nissan reported sales of 63,769 Nissan and Infiniti vehicles, an increase from 47,190. The Yokohama, Japan-based company had the biggest volume increase among Japanese and South Korean automakers in the U.S. this year through April.

Small cars such as the Versa and Sentra posted percentage gains of more than 38 percent, while sales of light trucks including Frontier and Titan pickups and Murano, Rogue, Pathfinder and Armada SUVs were “surprisingly strong,” said Al Castignetti, Nissan’s vice president of U.S. sales.

“The exit of a lot of domestic production of SUVs has opened that segment up,” he said in a telephone interview yesterday. Nissan is considering boosting light-truck production, “but we need to also see what happens with fuel prices,” Castignetti said.

Nissan’s market share rose to 6.5 percent in April from 5.8 percent a year earlier, Autodata said.

Toyota’s American depositary receipts fell $2, or 2.6 percent, to $75.69 at 12:30 p.m. in New York Stock Exchange composite trading. Honda’s ADRs fell 99 cents, or 2.9 percent, to $32.69 in New York and Nissan’s fell 51 cents, or 2.9 percent, to $16.86 in over-the-counter trading.

Hyundai, Kia

Hyundai, South Korea’s largest automaker, boosted sales to 44,023 vehicles, from 33,952 a year earlier. The Seoul-based company’s gains were led by the revamped Sonata sedan, with a 57 percent surge to 18,536 units.

“Sonata is probably the best mass-volume car Hyundai has ever made,” saidJesse Toprak, an analyst at TrueCar.com in Santa Monica, California.

If demand remains near the current pace “this year has a shot at being an all-time sales record” for Hyundai, said John Krafcik, the company’s U.S. head, in a Bloomberg Television interview. “Consumers really are getting back into the market.”

Hyundai’s U.S. market share last month climbed 0.4 percentage point to 4.5 percent, according to Autodata. The carmaker rose 4.1 percent to 140,000 won at 11:19 a.m. in Seoul.

Kia boosted sales to 30,306 vehicles, helped by the new Sorento SUV that the Seoul-based company began building in West Point, Georgia, this year. It gained 4 percent to 28,900 won in Seoul.

Fuji Heavy Industries Ltd.’s Subaru, a Toyota affiliate, reported a 48 percent sales increase, the biggest percentage gain in the industry. Mazda Motor Corp.’s sales rose 17 percent.

Facebook ‘Like’ Buttons On The Web

Facebook Inc. announced a slew of new products to connect the social network with sites across the Web. These new features is an effort to make almost any conceivable Web site tightly integrated with Facebook.

The Like button that connects other sites back to Facebook is a key part of Facebook’s plan – Zuckerberg said that when the new products launch later today, “We’re going to serve one billion ‘like’ buttons on the Web” in the first 24 hours.

At the same time a coalition of companies led by startup Meebo Inc. are forming another way for people to share information. That group includes Google Inc. and News Corp.’s MySpace.  Twitter Inc. is also seeking to expand its reach across the Web through its @anywhere service, which it announced last week.

With Facebook’s new changes, third party developers will get a strong connection with users who “like” content, according to Brett Taylor, the head of the Facebook Platform. People who click “like” on the ESPN page for a college football player such as Stanford’s Toby Gerhart, for example, will not only see that on their Facebook Newsfeed, but ESPN can later send a message when Gerhart is selected in the NFL draft to all the people who have liked him.

Facebook also released a number of Social Plug-Ins that developers can place on their sites. In one example, people can see a Facebook-style Newsfeed of all the activity their friends have made on that third-party site. In another, people can see personalized recommendations on that third-party site based on the activity of their Facebook friends. This is similar to the “most emailed” feature on news sites except it’s based on individuals’ Facebook friends. Facebook also released a Toolbar that developers can add to their sites to have their Facebook activity with them at all times.

And finally, Zuckerberg introduced a Microsoft product that will make use of Facebook’s technology. Docs.com, he said, would enable a user to see the document, edit it and share it with friends – it’s a direct shot at Google Docs. The product is the first Microsoft collaboration since the software company invested $240 million in Facebook in 2007 at a $15 billion valuation.

Zuckerberg has at times been criticized for a less-than-scintillating public persona, unlike other tech chieftains like Steve Jobs. But no one can accuse him of thinking small. He closed the keynote by saying, “When you go to heaven, all of your friends are there, and everything is just how you want it to be. Let’s make a world that’s that good.”

And in the Facebook afterlife, no doubt, we’ll all be able to click on the “like” button from the pearly gates.

Survey: Toyota’s Recalls Drive Shoppers to Ford, Hyundai

(The Wall Street Journal) – The accumulation of Toyota’s recalls, which deepened Wednesday to include the the seemingly unlikely 2003 Sequoia SUV, is driving buyers to rivals like Ford and Hyundai, The Wall Street Journal’s Driver’s Seat blog reported Thursday.

People who were planning to buy a car in a year or so “have pushed Toyota way down on their consideration lists,” says Art Spinella of CNW Research in Bandon, Ore. According to his survey data, 17 percent of these so-called long-range intenders have Toyota among their top three choices, down from 27 percent a year ago. In the same period Hyundai rose to 12 percent from 11 percent and arch rival Ford jumped to 26 percent from 17 percent.

Ford is also the first choice of people who had previously considered a Toyota, and Hyundai is second. “These competitors are filling the void,” Spinella says. Short-term buyers and longtime Toyota owners are another story, though. Shoppers planning to buy soon are still buying Toyotas in part because dealers are piling on discounts and other incentives — a tactic Toyota used to avoid. The Toyota faithful are largely sticking with the brand, he says.

In the used car market, Toyotas are losing the resale value advantage they have long enjoyed. A year ago used Toyotas were typically fetching 97 percent of the asking price, compared with Ford at 90 percent. Today Toyota is at 90 percent and Ford is at 97 percent, according to CNW.

Source: The Wall Street Journal

Likely new UAW president says workers should share in gains if auto industry rebounds

TOM KRISHERAP Auto Writer

3:31 p.m. EDT, May 11, 2010

DETROIT (AP) — The man expected to become the next president of the United Auto Workers says workers should share in the profits if the auto industry recovers. But he also wants to make sure Detroit automakers stay competitive.

UAW Vice President Bob King says unionized workers each gave up $7,000 to $30,000 per year in concessions to General MotorsCo., Ford Motor Co. and Chrysler Group LLC as the companies ran into financial problems last year and in 2008.

The union, he said, made tremendous sacrifices that helped all three automakers through a crisis, working with company management to make them more competitive.

But often after a crisis passes, management forgets about the sacrifices, King told an auto industry conference at the Detroit branch of the Federal Reserve Bank of Chicago.

If U.S. auto sales return to pre-recession levels of around 16 million per year, King said all three will see “astronomical” profits.

“Equality of sacrifice, there’s got to be equality of gain,” he told the group. “It’s our responsibility to make sure that in that turnaround, our members are treated fairly.”

King would not talk about the possibility of further concessions to the companies when contract talks take place next year. He said much of what will be discussed depends on the economy at the time and will be decided by the membership.

The UAW, though, faces a challenge of making sure the automakers’ fixed costs are competitive globally, he said.

Ford borrowed billions to stay afloat, while GM and Chrysler were forced to take billions in government aid and go through bankruptcy protection last year. Ford already is profitable, while Chrysler reported a first-quarter operating profit and GM is expected to show a profit when it reports earnings next week.

Union workers will not have job security, King said, if companies don’t have enough money to invest in new products, innovation and quality.

King was nominated in December by UAW leaders to replace President Ron Gettelfinger, who is retiring next month. An election will be held in June at the union’s convention in Detroit.

Courtesy of Orlando Sentinel

Study: Orlando economy 27th in nation

Thursday, May 13, 2010, 10:18am EDT

Study: Orlando economy 27th in nation

Orlando Business Journal

Orlando moved up a spot to 27th strongest economy among 366 U.S. metropolitan areas, according to an annual report by Policom Corp.

Although the area moved from 28th to 27th on the report, it is down significantly from its rank of 13th on the 2007 report.

Orlando was the highest Florida city ranked on the list. The Miami-Fort Lauderdale area was ranked 53rd, Jacksonville, 76th, and Tampa-St. Petersburg 85th.

To compile its report, Palm City-based Policom said it measured 23 different economic factors from 1989 to 2008. Positive factors in the rankings include wages and income broken down in several ways, plus jobs in key sectors; negative factors include welfare and Medicaid spending.

“The rankings do not reflect the latest ‘hot spot’ or boom town, but the areas which have the best economic foundation,” says William Fruth, president of Policom. “While most communities have slowed or declined during this recession, the strongest areas have been able to weather the storm.”

Seattle tops the list, followed by the metro Washington, D.C.; Denver; and Houston. Danville, Ill., ranks last.

To access the report, click here.
Read more: Study: Orlando economy 27th in nation – Orlando Business Journal:

Courtesy of Orlando Business Journal


Social Media Revolution 2

Ford resale values and its quality scores rise; biggest gains in industry, guide says

Ford car resale values rose an average of $2,420, the most of any automaker and almost four times the industry-wide increase, research firm Automotive Lease Guide said.Ford also had the biggest gain in the Santa Barbara, Calif.-based firm’s scores for “perceived quality,” a measure of such values and consumer views of reliability. Ford’s resale gain for 2010′s first half compares with an industry average of $616 from a year earlier, Matt Traylen, the firm’s chief economist, said Friday on a conference call. “The perception is starting to catch up with reality,” Jim Farley, Ford’s global marketing chief, told reporters on the call. “Resale value is the ultimate proof point.”The second-largest U.S. automaker has gained sales and market share in its home market with new and redesigned models such as the Fusion sedan. The Fusion’s resale value after three years is now $1,600 higher than that of Toyota’s Camry, according to Automotive Lease Guide.

Ford will begin promoting its resale values in advertising during the next three months, including a company-wide sales promotion late in that period, Farley said.

That Ford was able to avoid a government bailout while General Motors and Chrysler reorganized in bankruptcy with federal aid “was very important in consumers’ minds,” Traylen said.

Ford staved off a bailout by borrowing $23 billion in late 2006 before credit markets froze. CEO Alan Mulally used the money to rebuild the quality and offerings of the Ford brand. The company’s U.S. sales surged 33% this year through April, almost twice the industry’s 17% gain.

Funny Powerhouse Video

Check this funny video out!!

Google TV Brings Couch Potatoes and Marketing Geeks Together

Thumbnail image for Google  TV logo.JPG

What is Google TV?
Jokes aside, the idea behind that new service is quite smart. As announced at the company’s Google I/O developers conference, Google TV is basically a web-powered TV, a full web browser directly on your TV screen, a web-TV hub – you name it -… where you can browse for the things you want to watch – anything, anywhere (well, this is the whole idea behind the web, right?), in any language and at any time (insomniacs, you’re going to like this – or not).

Evidently, the programs/shows/videos you want to access have to be available on the web to start with.

Technically speaking, Google TV supports flash technology and “all input devices for Google TV will have QWERTY keyboards, but users will often navigate using a directional pad,” the company said on the Google TV developer page.

What’s the difference with Yahoo’s Connected TV?
yahoo connected TV.JPG
Yahoo Connected TV was launched a year ago and it seems nascent Google TV is a whole different ball game.

From its presentation so far, it looks like Yahoo is only offering widget-based content specifically designed for TV experience. Among available widgets, the company cites Amazon, Blockbuster, NBC, Twitter, YouTube, USA Today, eBay, Facebook, CBS, Showtime “and many others”.
Google’s competitor has also made the choice not to provide keybords.
Yahoo, however, works with more partners: it has Sony, LG, Samsung and Vizio.

Wondering how much it will cost?
So are we. So far, no such details have been disclosed. What we do know is that you can either have the service directly integrated to your new TV set (Sony is Google’s partner on this one) or plug a set-top box (Logitech is the point partner for that one) to your existing device. So in terms of cost, it seems it will amount to the price of a brand new Google-TV-enabled screen or that of the external box.

Then, add the cost of your internet connection, Wi-Fi specifically to be able to share across various screens if you wish to do so. An you’re all set.

Who’s going to hate – or love – Google TV?
First, the cable guys won’t be too happy if you no longer subscribe or if slash back your subscription dramatically as Google TV will offer you free of charge what cable companies have had you pay for all those years.

Second, content providers and program gurus may have to readjust their marketing and selling processes to adapt to a new type of hybrid audience.

Marketers and brands are likely to love this shift as is means that ads and particularly rich media ads will have more stickiness and an integrated audience.

It is not clear at the moment whether Google TV intends to insert its own advertising within the system. If it does, then it may spoil the gadget…

Last point: privacy
Given today’s context of tension regarding privacy issues, we’d be ill-inspired to not bring the subject to the table. A web-fed TV has indeed this particularity that searches may well be able, sooner than one thinks, to yield results of your favourite shows. It also means that marketers will be able to track what you watch or look for, for how long, how often…

Google TV in the end, brings search and analytics data to the forefront of the marketing game again.

Article courtesy of SearchEngineWatch.com- Written by: Liva Judic

5/27/10 – Google TV Brings Couch Potatoes And Marketing Geeks Together

May 21, 2010

Google TV Brings Couch Potatoes And Marketing Geeks Together

Google has lots going on lately and one of the things that sets Twitterland abuzz is the launch of the new Google TV service. Instead of having a TV screen on the one hand and a computer screen on the other hand, couch potatoes and geeks will finally be able to socialize… in front of a single, unified screen. Seriously.

What is Google TV?
Jokes aside, the idea behind that new service is quite smart. As announced at the company’s Google I/O developers conference, Google TV is basically a web-powered TV, a full web browser directly on your TV screen, a web-TV hub – you name it -… where you can browse for the things you want to watch – anything, anywhere (well, this is the whole idea behind the web, right?), in any language and at any time (insomniacs, you’re going to like this – or not).

Evidently, the programs/shows/videos you want to access have to be available on the web to start with.

Technically speaking, Google TV supports flash technology and “all input devices for Google TV will have QWERTY keyboards, but users will often navigate using a directional pad,” the company said on the Google TV developer page.

What’s the difference with Yahoo’s Connected TV?

Yahoo Connected TV was launched a year ago and it seems nascent Google TV is a whole different ball game.

From its presentation so far, it looks like Yahoo is only offering widget-based content specifically designed for TV experience. Among available widgets, the company cites Amazon, Blockbuster, NBC, Twitter, YouTube, USA Today, eBay, Facebook, CBS, Showtime “and many others”.
Google’s competitor has also made the choice not to provide keybords.
Yahoo, however, works with more partners: it has Sony, LG, Samsung and Vizio.

Wondering how much it will cost?
So are we. So far, no such details have been disclosed. What we do know is that you can either have the service directly integrated to your new TV set (Sony is Google’s partner on this one) or plug a set-top box (Logitech is the point partner for that one) to your existing device. So in terms of cost, it seems it will amount to the price of a brand new Google-TV-enabled screen or that of the external box.

Then, add the cost of your internet connection, Wi-Fi specifically to be able to share across various screens if you wish to do so. An you’re all set.

Who’s going to hate – or love – Google TV?
First, the cable guys won’t be too happy if you no longer subscribe or if slash back your subscription dramatically as Google TV will offer you free of charge what cable companies have had you pay for all those years.

Second, content providers and program gurus may have to readjust their marketing and selling processes to adapt to a new type of hybrid audience.

Marketers and brands are likely to love this shift as is means that ads and particularly rich media ads will have more stickiness and an integrated audience.

It is not clear at the moment whether Google TV intends to insert its own advertising within the system. If it does, then it may spoil the gadget…

Last point: privacy
Given today’s context of tension regarding privacy issues, we’d be ill-inspired to not bring the subject to the table. A web-fed TV has indeed this particularity that searches may well be able, sooner than one thinks, to yield results of your favourite shows. It also means that marketers will be able to track what you watch or look for, for how long, how often…

Google TV in the end, brings search and analytics data to the forefront of the marketing game again.

Here’s Google’s presentation.

Yes. Of course. Smart. Communicating through a broadcast channel, YouTube. So are you buying in ?

Courtesy of SearchEngineWatch.com

Here’s the link. http://blog.searchenginewatch.com/100521-124507

Facebook Marketing – 10 Easy Peasy Tips Businesses Need to Face

Fri, May 28, 2010

As a company you can create a Facebook Fan Page which gives you a platform to interact with, and attract, new customers. Facebook gives you the opportunity to create a community where everyone can post and learn and exchange ideas. The number of people using Facebook is staggering – 400 million plus – which means there is more than something for everyone. If you have a company fan page, but haven’t really developed it yet, here are 10 simple tips to get you going.

  1. Built it and They Will Come. Not.1
    You need to tell people about your Facebook fan page if you really want to build fans. Put the link on your website and blog and create a nifty Facebook banner or two to post.
  2. Your Picture
    The ideal size for a Faceook fan page image is 200 pixels wide by 600 pixels high.2 For your posts there will be a thumbnail of your image so experiment to get exactly what you want.
  3. Email Invites
    If you have an email list consider sending an email invite to your Facebook page. If you do this you might want to have something special on your page when they get there. Don’t forget to put a Facebook link icon on all your emails.
  4. Fill out your About Us
    Every Facebook fan page has a tab for company information. Make sure to build this out with company information, link to website, and information about your products and services.1
  5. Your Logo
    Consider putting your URL in as part of your logo at the top of your Facebook page so viewers know where your site is.
  6. Content and Keywords
    Provide lots of fresh content that will inform, entertain, educate, and help your customers. And like most areas online, don’t forget to incorporate relevant keywords into your copy.
  7. Encourage Interaction
    Encourage your fans to add their own content and photos so it becomes a community. Invite them and ask them to do things with calls to action.
  8. Respond
    When your fans do post, make the time to respond to their comments, questions and concerns. Remember, this is about community and relationship.
  9. Announce Events
    Use your page to announce events and specials, and to share important happenings – yours, your company’s, and your followers.
  10. Check out your competition
    Cruise through the fan pages of your competition to see what they’re using to get their fans involved.

Facebook is fun. Don’t feel you have to make it complicated or go into it worrying about ROI and numbers. Just put up regular interesting content and try to bring people together who like your products or services. You’re giving them a forum to interact and meet, and maybe learn how to best use your products. Aim to create a community where everyone benefits. There’s time to worry about the numbers later.

Courtesy of nextdayflyers.com

Link: http://www.nextdayflyers.com/blog/facebookmarketing/

178 Million U.S. Internet Users Watched Online Video During April

June 1, 2010

comScore Video Metrix today announced that 178 million American Internet users watched online video during April 2010. In other words, 83.5 percent of the total U.S. Internet audience viewed online video that month.

At the same time, 21.7 million Canadian Internet users watched over 4 billion videos in April. I plan to mention this during the “Video: The Next Marketing Frontier” session at SES Toronto 2010, which kicks off next week.

During April, 135.7 million Americans watched 13.0 billion videos on YouTube.com. That’s 96.0 videos per viewer in the United States. During the same month, almost 19.2 million Canadians watched over 2.1 billion videos. That’s 109.5 videos per viewer in Canada.

Meanwhile, Vevo, which was launched in December 2009, attracted 43.6 million American viewers in April. This includes viewing from the Vevo channel on YouTube.

If anyone still wonders whether YouTube is bigger than a breadbox, tell them this: 450 million people worldwide view more 60 billion videos each month on YouTube.com. If YouTube were a nation, it would be the 3rd most populous country in the world — behind the People’s Republic of China and India, but ahead of the United States and Indonesia.

Oh, and visiting YouTube doesn’t require a passport.

Courtesy of SearchEngineWatch.com

Link: http://blog.searchenginewatch.com/100601-155022

GO Viral – 10 tips to make your video go viral (via Forward Progress)

GO Viral - 10 tips to make your video go viral by Melissa Martens, Fig Media Inc. 1. “There is no spoon.” The Matrix Videos that go viral range from home movies to highly produced commercials and movies by big studios. The truth is there is no formula. There are steps you can take to make sure your video gets out there and there is no formula for why they catch on like wildfire. Getting your video to go viral is not a strategy it is an outcome. Knowing that is the first step. 2. “You had me a … Read More

via Forward Progress

Good News for Furniture Stores

The weather for Memorial Day weekend had a negative effect on retail businesses around the country, as potential shoppers spent the weekend at the beach.

CEO of Houston-based Mattress Firm said, “Our Memorial Day event was very solid and consistent throughout the chain. It appears that the consumer is beginning to respond to our category as this recession is beginning to subside.”

Good weather was bad news for the Fred’s Beds store in Wilmington, N.C. Lisa, vice president said,”That was no surprise. The weather was beautiful and it’s really hard to get people away from the beaches.”

However, the retail stores located in the central Raleigh area had a better outcome.

Lael Thompson, chief operating officer for BroyHill Home Collections stated, ”Also, while lots of people just assume that Memorial Day weekend is one of those slam-dunk weekends for retailers, this holiday along with others has become far less predictable in terms of sales opportunities. Even so, we were pretty much on par with last year’s Memorial Day sales.”

Thompson also stated that despite the lack of a specific event sale for the store, it advertised a 20% discount off the manufacturer’s prices which he believed attracted customers.

Beautiful weather took a bit of the shine off Memorial Day weekend results for Johnny Janosik, a Top 100 retailer based in Laurel, Del., said CEO David Koehler. Sales were strong the week leading into the holiday, including Friday and Saturday, but were a little behind last year on Sunday and Monday as the sun drew shoppers to the beaches.

In a promotion Johnny Janosik ran May 21 through June 7, the big categories were upholstery — motion, recliners and stationary — along with master bedding and bedroom, he said.

“Customers are still cautious but we are starting to see a move towards trading up slightly to better products, versus trading down to inexpensive starting price points,” Koehler said.

John Wanat, a co-owner of two-location closeout home furnishings retailer FWS in western New York, said the retail store had “unbelievable” traffic on Memorial Day weekend. FWS started a two-week tent sale at its Buffalo, N.Y., store that weekend to work through excess inventory to make way for new products.

While the jury was still out on whether dollar sales would beat last year, the number of furniture pieces sold during the weekend was up, Wanat said.

Memorial Day was the biggest weekend in the five-year history of I.O. Metro, the 16-store midpriced lifestyle specialty retailer based in Rogers, Ark., said CEO Jay Howard.

“The consumer was very excited and eager to buy, and buy now. We did not have a huge sale, but rather heavily discounted our aged accessories,” he said. “While we did move a lot of those, the majority of our purchases were larger furniture, so higher ticket items were selling(although they were not on sale).”

Robert Levin, president of Smithton, Pa.-based Levin Furniture, with 13 stores in greater Pittsburgh and the Cleveland, Canton and Akron, Ohio, areas, said his business was up over last year. He added that Levin did some deep discounting as well as a five-year, no-interest financing offer for its main promotion, which ran Friday through Monday.

“We were up against not overly difficult comps, but we beat it handily,” he said, adding that the holiday weekend business “helped reverse an otherwise unimpressive May.”

Asked if he sees the improvement as any indication of business to come, Levin emphatically said no.

“It’s too hard to predict right now whether it’s just a function of shoppers shopping on holiday weekends. Those generally have been strong for us,” he said. “The future is very unclear whether that is a leading indicator of any kind (of future) business. We will continue to be as aggressive as we need to be.”

Mitch Keller, director of stores for Dayton, N.J.-based Value City Stores, said Memorial Day sales “were very strong.” However, the good weekend weather didn’t make it easy on the retailers.

“We have a number of stores close to the beach and with the weather as good as it was I was initially worried that shoppers might choose the beach over shopping. But when all was said and done, we had a strong turnout with sales up a bit over last year,” he said.

Giff Gates, president of Gates Home Furnishings in Grants Pass, Ore., said business was hampered by beautiful weather, which kept people outdoors and away from stores.

“Saturday and Monday were pretty good, but Sunday was dead,” Gates said.

He added that consumers responded to a financing promotion that offered no down payment and no interest until 2012. And despite the mediocre weekend, he’s upbeat about the direction the business has taken. He said that in 10 of the past 11 months, sales have been higher than in the comparable month the previous year.

“That is very encouraging,” Gates said. “We seem to be going in the right direction.”

(Source: Furniture/Today, 06/07/10)

Internet Marketing Strategy News: News Search Is Big News (via Comtechnews)

Even loyal newspaper readers are turning to the Net for their news and treating their newspaper as a leisure activity. Newspaper and magazine print circulation figures are down, but their online revenues are growing month by month. The tool to include in your Internet marketing strategy is optimized press releases. These are press releases written as news articles with key words and links included. 10 Reasons to Use Optimized Online Press Release … Read More

via Comtechnews

What is Inbound Marketing? (via Inbound Marketing Blog)

Outbound marketing usually tries to reach masses of people at a time when most of those people will block or ignore the marketing techniques. Luckily, inbound marketing can help solve that problem by reaching out to those who are interested in what your company is offering because they are already searching within the industry.

What is Inbound Marketing? If you’re here by accident and have no idea what Inbound Marketing is, this short explanation might help you understand this blog’s content a little bit more. Inbound marketing is a group term used to describe several internet marketing activities such as SEO, landing page optimization, social media marketing and similar topics. Wikipedia describes it as:Inbound marketing is a style of marketing that focuses on getting found by customers. This se … Read More

via Inbound Marketing Blog

Social Media: The Time Capsule Of The 21st Century

What do you think about the idea of social media and the real time web as the time capsule of the 21st century? Follow the link to read more about it.

Social Media: The Time Capsule Of The 21st Century

Recent Social Media Facts

If you’re still under the impression that social media is a waste of time, think again. 85% of sales managers believe that ignoring social media is actually the waste of time.

According to a recent study conducted by MoreVisibility (a leader in Web 2.o technology), about 85% of sales organizations have implemented a social media program, while 75% of them plan to further their efforts in the upcoming months.

Here are some other interesting findings:

  • 98% of businesses focus mainly on Twitter for their social media purposes
  • 96% of businesses use Facebook as a second social media source, and
  • 74% also use LinkedIn as part of their social media strategy.

Experts believe that social media hasn’t reached its full potential in the business setting. When asked how successful their social media advances had been so far on a scale of 1-5:

  • Over 8% rated their initiatives a five, which meant they were seeing an outstanding return.
  • 40% rated their program a four
  • 39% rated their program a three
  • 11% rated their program a two, and
  • 2% were completely dissatisfied with social media.

Of those companies that were implementing a social media strategy:

  • Over 70% spent less than $5,000 a year on social media marketing advances
  • 7.5% spent between $10,000 and $25,000, and
  • Only 5% spent more than $100,000 a year.

FOX 35′s Orlando Idol Audition

FOX 35′s Orlando Idol Audition will give four local hopefuls the chance to compete LIVE on the FOX 35 morning news for a guaranteed front line pass to the American Idol auditions in San Francisco, CA on August 19th. One winner will be chosen LIVE on the FOX 35 morning news on Friday, August 13th. Prize package includes hotel accommodations for two nights and roundtrip airfare to San Francisco. Auditions will be held on Saturday, August 7, 2010 from 9:00am-3:00pm at Ford of Clermont, located at 1101 E. Highway 50 Clermont, Florida 34711.

For the official rules visit www.americanidol.com

European Wax Center launches in Orlando

European wax center is having their grand opening this Saturday, July 24th at their Waterford Lakes location in Orlando.

They will be having a special offer for a free wax. For women the free wax can be performed on the bikini line, eye brow, or under arm. The special offer for men applies to the eye brow, ear, or nose.

European wax products contain no alcohol and 100% natural beeswax and the finest polymers that is less painful than ordinary wax with less irritation and redness to provide silky smooth results. The products were developed in Paris exclusively for EUROPEAN WAX CENTER.

The address of the new location is 889 N. Alafaya Trail, Orlando, FL 32828.

The 10 Stages of Social Media Business Integration

The following blog post discusses the 10 stages of Social Media Business Integration and how 2010 will be the year that Social Media goes mainstream for businesses and consumers alike.

Click here to read the full article: The 10 Stages of Social Media Business Integration.

Vanityvids replacing Facebook pics

Vanityvid, a new Israel-based startup understood that sometimes profile texts and images can’t adequately represent you on your social networking sites, this is why they are allowing users the opportunity to replace their conventional images with videos.

Users that want to start recording or uploading their videos can do so on the Vanityvid website. If you want to see other users’ videos you must install a Vanityvid  browser add-on.

Vanityvid could definitely be used to transform a traditional social networking site into an exceptional social experience. Likewise, business professionals could also use this new tool to enhance their company or product branding. The possibilities are endless as the new technology begins to spread.

Social media tips for the rest of 2010

As social media sites such as Facebook and Twitter exploded in 2009, it is apparent that social media has become an integral part of business, marketing, and the way companies function nowadays. As these new opportunities arise, they bring with them new challenges.

  • Don’t just create an account just to have it. Your company needs to stand out among all others and be relevant to today’s consumer.
  • If you see social media as a long term asset to your company. Delegate the work to someone within your company rather than seeking outside help. Who knows the company better than someone who works for it?
  • Now that you’ve experimented with social media, it’s time to see what it has actually done for you. Consider social media ROI as a major priority. On that note, determine which sites work best for your company. Rather than creating ten social media sites and not dedicating your time to updating all of them, pick a few that will really help bring your business to the next level.
  • Social media is a great way to foster new relationships, but think about how you will maintain those relationships for an extended period of time.

Top Internet Marketing Strategies

  • Create a web promotion plan as well as a design strategy
  • Find your marketing niche
  • Practice effective search engine optimization
  • Utilize email marketing in the best way possible
  • Write & publish press releases
  • Run contests and promotions on your social media sites

Remember that the internet gives your business the opportunity to reach millions of people who would otherwise never hear of the business. Keep in mind to carefully target your audience and advertisements in order to make your online marketing campaign more successful.

Ten inexpensive ways to promote your business

Business promotion and running a successful business go hand in hand. Promoting your business should be a conscious effort and cannot be relied on others to do it for you. Although you can budget for it, promoting your business does not have to be too costly. Here are some ways to promote effectively without making your wallet lighter.

  • Business stationary is a great tool. Make sure to include your phone number, fax, email, and website somewhere on the document.
  • Write about what you know. Draft articles on topics that relate to your business. Get them published on blogs, local newspapers, and magazines.
  • Create social media accounts and develop material for a blog. Remember it’s one thing to just have the account but it needs to updated frequently.
  • Do you go to various events and promotions? Hand out freebies with your logo on it. T-shirts, pens, and bags are some useful ideas.
  • Contact your local radio station. Find a show that appeals to your interests and inquire about being a guest speaker.
  • Volunteer with local organizations, charities, and philanthropies.

Face to face promotion can be one of the most effective ways to promote your business. Follow these tips and you will be well on your way to establishing a successufl small business.

Video marketing for your dealership

Video marketing can help your business provide accurate and engaging information to your audience on a more personal level. These tips can help your dealership become a leader in video marketing online through video sharing sites such as YouTube, Daily Motion, Vimeo, etc…

  • Have a video for every single car in your inventory
  • Create a portfolio of customer service comments to post on your social media sites and blog
  • Prepare a video of your service inspection process to visually show customers and future customers and reinforce that your service is the best
  • Film your dealership participating in a local charity event or community service function
  • Post videos of your employee of the month
  • Create a video of your staff to show a warmer and relaxed side of your employees
  • Use a video to explain any manufacturer’s recalls and such

Benefits of search engine optimization

Are you thinking of ways for potential clients to find your company’s website? Do you want them to find it easily? Look no further. Search Engine Optimization (SEO) can do all of this for you. What is SEO? It’s the process of improving visibility of a website in search engine results. The more frequently a site appears in search results, the more visitors it will likely have. Here is a list of benefits that SEO can provide you with.

  • Increases the number of visitors searching for your business or product
  • High return on investment
  • Long term positioning
  • Cost Effectiveness
  • Quicker download times/faster loading pages
  • Constant promotion 24/7
  • High profile brand visibility

“Who to Follow?” New addition to Twitter

Having trouble finding Twitter followers? Similar to the Facebook friend finder, this new addition to Twitter allows users to add followers a few at a time. In other words, it will help your Twitter feed grow gradually rather than bombarding you with a bunch of names at once.

If you would like to add more followers, there is a “view all” option as well. These suggested users are based upon who you already follow, who they follow, and your interests. The main difference between Facebook and Twitter is that the recommendations for Facebook will most likely be people you actually know and for Twitter they can range from people you know to famous celebrities.

Experiment with this new feature and feel free to comment below!

Social Media Statistics

  • The top 3 social media networks-Facebook, Twitter, and LinkedIn received over 2.5 billion visits combined in the last year
  • Twitter itself grew more than 600% in 2009
  • Flickr, an online photo sharing site, hosts nearly 4 billion user images
  • On a daily basis, 900,000 blog posts are created
  • Twitters gets over 300,000 new users each day
  • If Facebook was it’s own country, it would be the world’s fourth largest!
  • 37% of Twitter users update their status using a mobile phone
  • Facebook users are generally younger between the ages of 13-35
  • Most LinkedIn users typically have a college education
  • Most Facebook users are female, however most LinkedIn users are generally male

FORTUNE MAGAZINE: Live Nation’s tin ear

live_nation.gi.top.jpg

FORTUNE — For a promotion and entertainment company, Live Nation has had a tough time doing either with much success. Instead, over the last year, it’s been battered by regulators, goaded by class action lawyers, sued by rock stars, virtually ignored by analysts, and despised by fans fed up with paying for hidden fees in tickets, only to fork over even more for overpriced T-shirts and beer. Worse still, Live Nation (LYVFortune 500) still can’t seem to make any money, reporting both unexpectedly large losses and revenue declines earlier this month.

Its stock continues to drown in the shallowest pool. And its management acknowledges plenty more challenges ahead, noting that the second half of the year could bring another 15% swoon in concert attendance on top of the 12% decline the industry has already had. So it is somewhat startling that a few well-heeled investors and hedge funds have kept to their bets on a turnaround.

Although Greenlight Capital’s David Einhorn threw in the towel on Live Nation in April, John Malone’s Liberty Media is sticking with it. Others have joined in as well. This August, Farallon Capital Managementdisclosed it had picked up 900,100 shares of the company, and small-cap value investors at Shapiro Capital, while no fan of Live Nation’s successful merger with Ticketmaster earlier this year, continue to hold nearly 8 million shares. Tiger Global Management controls 11.2 million shares, and Stephen Mandel’s Lone Pine Capital has bought about 9.6 million shares.

It’s unclear what these investors see that others don’t, although perhaps Live Nation’s stock — which trades at less than a quarter of the price of an average Live Nation concert ticket — might seem just too cheap to pass up. Corsair Capital Management, another fund that has raised its stake in the ticketing and promotion behemoth, recently opined in an investment letter that Live Nation might finally have its “secular tailwinds at its back,” and that it was now trading at an “attractive price for an oligopolistic business with modest capital requirements.”

However, a bet on Live Nation is in many ways a bet on its ability to execute on a planned expansion overseas. As Live Nation has noted, the North American market is generally unappealing these days. American fans aren’t willing to pay what they once did to see many of their favorite acts, there are not a lot of great new venues to tap, and the talent demands an ever-larger cut of the concert pie. “Jay Z doesn’t care if he plays in Paris or Denver, but we do,” explained Live Nation CEO Michael Rapino during the company’s uneven investor day pitch last month. “We make more money in Paris.”

That is why Live Nation plans to shift its focus to what Rapino describes as “less sophisticated” markets, with the idea of expanding into around 75 live-performance markets overseas. The concert market there is certainly in better shape than the one here at home. Pollstar, which tracks the concert industry, recently reported that top concerts in South America, Australia and Europe continued to gross about what they did last year, about 15% more than they did in the U.S.

Cheaper artists + expensive tickets = international success?

According to Live Nation’s own data, there is easy money to be made overseas. Fans there are willing to pay about $4 more on average for a ticket than fans in the United States and the artists toiling on stage, on average, are willing to work for at least 19% less of the take.

“It is an open world now. This market is on fire on a global basis,” said Rapino, adding that Latin America was also hot and that Live Nation was in Dubai “every day of the week…talking to somebody about a deal.”

But, in his excitement, Live Nation’s CEO may not be taking into account that the markets targeted are already being serviced by other large and successful concert promoters and ticket sellers. And those competitors have largely avoided the public relations baggage that has hit Live Nation from a myriad of issues, including cancelled concerts, angry fans, investigations of anti-competitive maneuvers and allegations of unlawful profits.

There may be, as Rapino believes, more than 124 million tickets to be sold in places like France, Australia, Belgium, Switzerland, Germany and Spain. But even in countries where Live Nation had years of experience, inroads have been difficult, with Live Nation data showing only about 3% penetration in Spain after a good four years of trying. And so far this year, it’s performed worse in overseas markets than it has in the U.S. by some measures. While Live Nation ticket revenue was almost flat in the U.S., it was down about 12% overseas.

That’s not all. Live Nation has sold fewer tickets internationally so far this year (9.7 million compared with 12.9 million in 2009) even as competitors such as US-based AEG-Live, Germany’s Marek Lieberberg, South Africa’s T4F, and the UK-s 3A all reported strong gains, according to Pollstar. The concert industry publication’s data also showed AEG Live-affiliated companies produced 46 of the top 100 grossing concerts, compared to Live Nation’s mere 27.

If Live Nation can’t make inroads overseas, it will have to play especially nice with fans back at home to rebuild its tarnished image. Already, in an attempt to fill empty arenas, Live Nation has begun to discount more tickets and pitch others as ‘free of service fees.’ It has also moved to reduce or do away with some fees (such as the absurd payment for printing a ticket at home), tried to make it easier for customers to get the seats they want, and worked to fortify its customer “bill of rights.”

Rapino says that Live Nation needs to begin treating consumers with the respect they are due. But the sense one gets from hearing Live Nation’s management talk during its investors conference is that they still often see their customers as little more than stacks of money ready to slice and dice.

Live Nation doesn’t believe it should have to reduce what it takes in at a concert to appease fans and fill arenas. Instead, it can force the artist to take the hit, and then dynamically price the tickets so that the front rows pay even more, helping to offset any loss inflicted by the cheapskates that wait around for $10 seats at the rear. The artist’s share might suffer, but Live Nation, it seems, can never lose.

Like the egotistical, often childish and un-repentant Rock & Roll artists its management arm sometimes represents, Live Nation doesn’t take full ownership of its problem, one highlighted by Pollstar editor Gary Bongiovanni when he wrote that the concert industry was, in a sense, killing itself. Fans still want to see live music, he said, despite “piggish, top-tier prices,” “add-on fees,” the availability of “discounted tickets after they have paid full price” and other “misguided efforts to squeeze the fun out of the experience.”

Live Nation sees such maneuvers as part of its salvation, while blaming a moribund economy, a yellow press, greedy touring artists and half-witted investors for much of the company’s malaise.

“From the tone of the questions, I don’t think you guys out there really get the message that we are trying to do today,” snapped Live Nation Chairman Irving Azoff at one point during the company’s investor conference, adding that a few pointed questions about the company’s financial difficulties, litigation risk and international rollout made him think that “maybe we’ve got a bunch of short term investors that need to think longer term.”

Given Live Nation’s recent history and performance, and its difficulty in articulating how it will reach its goals for the future, some investors and fans might think Live Nation should do the same. To top of page

Measuring your business’s social media effectiveness

Due to the rise and popularity of social media, creating an account just doesn’t cut it anymore. You must have a clear cut goal to execute your social networking strategies and ensure that your results can be easily measured. There are some basic indicators to measure your account’s effectiveness through retweets and comments. In addition, here are some tips to help you get the most out of your social media strategies.

Know why you are using social media. What goals are you trying to achieve? If you are trying to promote your business, look at factors such as comments, readership, and interaction. If you’re conducting market research, focus on trends and satisfaction surveys with various competitors. Most importantly, be specific about what your goal actually is. It will help you pinpoint what you actually need to measure.

Compare yourself with your competitors. How are they doing as far as social networking? What are their results? Research, as these change over the course of time.

There are many social networks out there that your business can take advantage of. Which ones will be most beneficial? Focus on those. Identify how you want to present your information. Video? Daily tweets? Blogs? Do you have a budget set aside for social networking? Check the performance of your channels. If you decide that a particular one isn’t working for you, then find another one that can give you better results. Experiment and find the right fit for your business.

Promoting your blog

Thousands of blogs are started each and every day whether they are for business or personal reasons. Setting up the blog and writing entries is only the easy part though. There are many important steps to take when it comes to marketing your blog and letting internet users know that it exists. One of the best ways to do so is to produce great content, post often, and share through various social networking sites and email. Below, you will find a list of some other noteworthy tips to help you get started.

  • Write a press release and send to relevant readers
  • Add a link to your website- especially if it’s a company blog
  • Submit to blog directories
  • Consider guest posting. This can be useful if there are other useful blogs in your industry
  • Add a link to your blog in your email signature
  • Have a company newsletter? Announce it
  • Most importantly, network!

Even when you don’t pay attention to ads, they affect you: Psychology Today

We live in a world of advertising. It is a world of our making, of course. We don’t like to pay the full price of things, so we allow other people to pay part of that price in exchange for letting them pass a message to us. So, we open up the pages of our favorite magazine, and there are glossy ads for clothes, shoes, cars, or beer. We turn on the television, and smiling faces on television try to sell us soup, toothpaste, candy, and politicians.

The reason that we accept all this advertising is that we assume that we can tune most of it out. If we don’t pay attention to the ads, then they won’t have that much of an affect on our behavior. Sure, the makers of commercials can try to jack up the volume, but at least we have the right to look away.

A paper slated to appear in the December, 2010 issue of the Journal of Consumer Research by Melanie Dempsey and Andrew Mitchell suggests that the picture might not be so rosy. These researchers did two clever studies that ought to make us think twice about how much advertising we allow ourselves to be exposed to.

We usually assume that advertising functions mostly to tell us about the properties of a product. A particular detergent might advertise that it gets stains out better than competitors, that it smells good, and that it leaves clothes feeling fresh. We believe that these properties are ones that will help us to choose the detergent we want to buy.

However, ads also do other things. One thing they do is to take a product and to put it next to lots of other things that we already feel positively about. For example, an ad for detergent may have fresh flowers, cute babies, and sunshine in it. All of these things are ones that we probably feel pretty good about already. And repeatedly showing the detergent along with other things that we feel good about can make us feel good about the detergent, too. This transfer of our feelings from one set of items to another is called affective conditioning (the word affect means feelings).

In these studies, Dempsey and Mitchell told people about two brands of pens. One brand had better properties than the other. So, objectively, that better brand is the one people should have picked. Before making a choice about the pens, though, some people did what they thought was an unrelated experiment in which they watched pictures on a screen that flashed quickly. Some of these pictures paired the brand name of the pen that had the worse set of properties with a lot of positive items. This procedure is known to create affective conditioning.

So, this experiment put two sources of information in opposition. People had a set of properties about the pens that suggested one brand was better than the other. And the group that did not go through the affective conditioning procedure picked this brand most of the time when asked to choose a pen.

The people who went through the affective conditioning procedure picked the pen that was paired with positive items 70-80% of the time. They chose this pen, even though they had information that the other pen was better. Over the two studies in this paper, the authors found that people chose the pen that was paired with positive objects even when people were given as much time as they wanted to make a choice, and even when the instructions specifically encouraged them to pick the best choice and to say why they were choosing a particular pen.

These results suggest that the most powerful effect of advertising is just to create a good feeling about a product by surrounding it with other things that you like. It is also important to point out that affective conditioning is most effective when you don’t realize that it is happening. That is, trying to pay less attention to the ads you see on TV and in magazines may actually make this type of advertising more effective.

So, why do we choose things just because we feel good about them? The world is a busy place. It is hard for us to feel confident that we have all of the objective facts about anything, whether it is products, people, or choices of things to do. The feelings we have are often a good marker of what is safe to do and what is likely to turn out well. If we have to make a choice, and one of the options just feels good to us, then we are likely to go with the one that feels good.

Most of the time, of course, that is a good idea. Often, we feel good about something because we have had positive experiences with it in the past. The problem is that we allow advertisers to have access to our mental world. They have paid for the opportunity to slip information to us about what feels good. That information ultimately affects the way we make choices, whether we know it or not.

Creating an effective newsletter for your company

Creating a newsletter can appear to be an easy task, but creating one that engages your readers and motivates them to keep reading your emails can prove to be slightly more challenging. These tips will help your design a newsletter that will make your business boom and strengthen relationships with your clients.

  • Share useful content about your business and/or products
  • Position your company as the experts
  • Create a catchy subject line to prompt your readers to open the newsletter
  • Personalize your newsletters to address the recipient
  • Search for useful information that relates to your business
  • Keep it clean, simple, and easy to read
  • Design a custom template
  • Provide full contact information for your company
  • Include a promotion or a special offer

Build your marketing program

The best marketing program will always involve testing, planning, and evolution. The plan you build will allow you to connect with all relevant audiences, generate new clients, and overall establish credibility. As market factors and business plans are always changing, it’s best to incorporate all of the following into your overall plan: website development, social media, search marketing, and public relations. Here are some steps to help you follow through and execute your business marketing plan:

  • Define your brand
  • Design a website that is content driven
  • Establish campaign objectives that are focused primarily on generating new clients and establishing your business
  • Measure your successes and failures and be willing to change if something is not working in your favor

Here are some key points that your plan should incorporate:

  • Marketing calendar including a timeline of blog posts, video uploads, social media updates, and webinars
  • Strategy outlook for branding, content, and public relations
  • Social media strategy
  • Activity charts including tactics, timelines, plans, and task  lists

Allow your marketing program to be flexible as you realize what works and what doesn’t for your business.

The List: 15 networking sites for small businesses

Twitter and Facebook are two social networking sites that have grown tremendously over the past couple of years. Many businesses big or small utilize these sites and incorporate them as apart of their marketing platform to start discussions and gain connections. However, for smaller businesses, it is wise to consider other social networking sites as well. These will help you connect with people in a smaller and local setting.

  • PartnerUp: allows business owners to find partners and expertise to start or expand a current business
  • Ryze: designed to link new entrepreneurs together
  • Meet the Boss: a business networking tool for business executives all around the world
  • LinkedIn: extends your list of professional contacts and allows you to build an online resume
  • Qapacity: allows owners to promote their business online and keep their partners and clients up to date with their current work
  • Yelp: a local business review site including recommendations
  • FledgeWing: an online community aimed at entrepreneurial business students
  • Xing: a social platform for enabling a small world network for professionals
  • Talkbiznow: an interactive business networking site
  • Cofoundr: a private social network for individuals involved in starting new business ventures
  • The Funded: enables entrepreneurs to research, rate, and review, venture capital sources worldwide
  • Entrepreneur Connect: a destination where entrepreneurs can exchange real world advice
  • Biznik: a local, independent, entrepreneurial community
  • Perfect Business: helps entrepreneurial launch and grow their businesses
  • Startup Nation: provides real world business advice to people who want to start a business or expand their small business

Good luck and remember to take advantage of the free social networking sites in order to enhance your current marketing plan.

What to Expect From the New Twitter

Twitter has introduced their new layout, which makes the first major makeover in Twitter’s history. The new version of the Twitter site is now available to some users and should be available to others within the next few weeks. Here are just a few changes users can expect to see with the new layout.

  • Keyboard shortcuts: A few keyboard shortcuts have been added to make using Twitter faster and easier. Pressing the “r” key will allow you to reply, the “.” will refresh and show the latest tweets, and the “f” key will allow you to mark a tweet as a favorite.
  • No more “More”: Instead of reading all recent tweets and having to click on “more” to view the earlier posts, the new Twitter loads past tweets as you scroll down to the bottom of the page.
  • New Profile Display: Twitter profile displays are no longer a one column layout. By clicking on a username, the profile will appear in the left column of the new two-column design.
  • Embedded Photos: Pictures hosted on photo hosting sites such as Flickr and Twitpic will automatically be embedded to the tweet.
  • Embedded Videos: You can also view videos directly on the Twitter site. Tweets that reference videos hosted by Vimeo and YouTube will automatically load the video in a tweet..
  • Tweet Context: You view everything in on location. Keeping track a tweet’s activity, including retweets and replies, is now an easier task.

Social Media analogy

Below is a video that explains social media by describing it as ice cream.

7 Characteristics of the Perfect Social Media Manager

Social Media is always on the rise. There are many ways to use social media that can add to business development and sales. But social media is also very new. Even people that think they are good at social media don’t really know how to use it in a manner that will facilitate business efforts. Below you will find the 7 characteristics needed for a social media manager.

1. Passion

Because social media is a 24/7 type of job that you have to keep up with it is critical for social media managers to be passionate about social media. A passionate social media manager will generate sales yet not be direct about selling.

2. Credibility

Since the social media manager will be the face of the company you have to show credibility. People won’t just believe anyone especially when anyone can say anything online. So, as a social media manager you should have knowledge in business, marketing, sales and customer service.

3. Strategy

Sometimes the strategy isn’t well defined because of the fun aspect of social media. But as a social media manager you have to keep in mind the strategy you’re using and its purpose.

4. Service-orientation

As a representative of the company you shouldn’t see customer service as a bothersome task. Instead you should enjoy helping people with their problems related to your company. Most of the time people not only want a good company to work with or buy from, they also want good treatment which is where the social media manager’s job entails.

5. Risk-tolerance

Again, social media is a dynamic medium. No one knows the exact way of doing things. You just have to do it wisely and learn from your mistakes. Social media managers should be proactive and self-starters because their managers might not be able to direct them to the right path.

6. Decisiveness

Social media managers must know what trend is long lasting and which isn’t. With experience and knowledge they can make decisions that will positively affect their company. It’s also important to know the effectiveness of each strategy used. This way they can use that knowledge for future use.s

7. Action hero(ine)

In a changing business world you have to keep up with the news and distinguish between good and bad content. If you wait too long for approvals your never before heard news might become the played out headline that annoys people.

Link Requesting

SEO Professional

If you contact the webmaster of a site as an Internet marketing specialist or other SEO professional they will think you’re getting paid for doing so, which encourages them to ask you for money.

Beware of forming a bad relationship with the webmaster because it can reflect on the way they’ll view your company. But if you form a good relationship they can be your best friend as they can secure links for you in the future.

Client

It’s best to get an e-mail address for your client’s domain with your name. Another option is to use their brand name with a free e-mail account like yahoo.

These e-mail addresses will help you form a good image with official sites like .edu and .gov.

Brand Advocate

You can also contact webmasters as a fan of the brand. E-mail them stating that you like their website but that they forgot to mention your favorite brand. Hopefully they’ll take you seriously and add it onto their list.

Ford of Clermont is a Proud Sponsor of the South Lake Animal League’s A Haven Before a Home Adoption Center

B2B Selling Strategy

Steven Woods claims in a Harvard Business Review blog that although salespeople stress the importance of finding the right audience to target their messages to, studies have found that a less than ideal audience who shows interest is a better audience to target.

The study found these statements true:

  • Companies that showed some initial eagerness, even if they didn’t appear to be typical buyers, were more likely to buy than “ideal” customers who had expressed mild interest.
  • A highly customized email sent two weeks after a prospect registered online got much less response than a “semi-standardized outreach” sent within a day.

So before you make another sale remember to spend more time with interested potential buyers rather than waste time with stereotypically ideal buyers.

Facebook takes over Advertising

According to ComScore, last quarter Facebook generated 297 billion online ad impressions. Facebook has increased their market share to 23.1 percent. Last year, Facebook had a market share of 13.9 percent.

Coming in at second is Yahoo with 140 billion impressions marking 11 percent of the market share.

Microsoft had 64 billion impressions and shares 5 percent of the market.

Is Social Media Affecting Work Productivity?

Although it may seem that employees are being less productive because of the various social media outlets that serve as a distraction, it actually seems that it is increasing productivity in the work place.

Here are three reasons why social media helps employees be more productive:

  • Multitasking Practice – The young adult today has learned how to take on between ten and twenty tasks and interactions all at once while those in their 40’s and 50’s can only manage three to five activities at any given moment.  This is because the younger population has learned to read and reply to facebook or twitter messages while reading the latest blogs. This multi-tasking ability will translate well in a work environment where they can take on various tasks and a greater workload which will ultimately increase productivity.
  • Mental Break – The occasional break into the world of facebook and twitter can be seen as a mental break for the employee. Scientists believe that this temporary get away also increases productivity because it prevents the employee from fading or working less towards the end of the day.
  • Networking – Employees no longer need a rolodex to keep track of all their networking connections. With a click of a button, one can increase their client base and access named and numbers efficiently.  Social media is undoubtedly the best tool for increasing productivity and boosting contacts.

SMALL BUSINESS POLL RESULTS: 60% expect their business to grow in the next 12 months

Small business owners are generally optimistic about their prospects for 2011, but many still they think they’ll succeed largely without the help of the web and social media.

Intuit Inc., surveyed  small business owners about their outlook for 2011:

Sixty percent said they expect their business to grow in the next 12 months despite the economic climate — a 6% increase from December 2008. Yet, just over half (54%) of small business owners said a decline in their customer base was the hardest part of running their business, while 32% said delayed payments was their biggest problem.

When asked about the New Year, small business owners said the following:

  • Focus on retaining and growing my current customers (56%)
  • Expand marketing to attract new customers (41%)
  • Reduce costs and save money (30%)
  • Expand products and/or services to make more money (29%)
  • Invest in expanding operations (10%)
  • Hire more employees (6%) Part of growing a customer base depends on having a strong web presence and yet almost half (46 percent) of the respondents said they do not have a website. Yet, the majority of respondents (71 percent) agree that social media is effective when it comes to keeping current customers engaged.

How do consumers find these small businesses? Nine in 10 of the respondents said word of mouth, and just 41 percent said via their website despite the fact that consumers eyes and ears are online for much of the day.

Blogs? Almost non-existent among small business, with 91 percent reporting they do not have a blog.

Social media: Only 27% of respondents use Facebook, while only 8% use Twitter. Two thirds (67%) of respondents said they did not use Twitter, Facebook or Foursquare.

Asked what they would do if they had access to a new line of credit, small business owners said they would:

  • Increase marketing and/or advertising budget (48%)
  • Expand your range of services and/or offerings (42%)
  • Invest in new technologies (32%)
  • Hire more employees (13%)
  • Increase your social media budget (11%)

It appears that small business are also thinking more about doing business on the go, with 46% of respondents saying that accessing their accounting and financial records from their mobile phone is appealing; 38% would like to be able to process credit card payments on their mobile phones.

Predictions for social networks in 2011

2010 was without a doubt a great year for social networking sites. Facebook conquered the web leaving sites like My Space far behind in the dust.  Twitter and LinkedIn have continued to grow accordingly and are now more popular than ever.  So what will 2011 bring? What’s next? Will Facebook remain the king or will another network come in and take over?

Google’s social networking efforts continue to be unsuccessful

As Google dominates search and strives for speed and efficiency, their attempts at tackling social media have been less than sub-par. In 2010, Google Wave was shut down and Google Buzz did not fair well either. However, their strong points in 2011 will remain in their mobile and search abilities and YouTube of course.

My Space is gone

Back in the day, we all used My Space. So what happened? Despite a total makeover, the social networking site continues to plummet. The prediction for 2011: the site will fall into the right hands and become a valuable asset with the right direction.

No Facebook IPO

As long as the company’s growth metrics are strong, there will be no need for public markets. Prediction for 2011? Facebook will remain the same.

Twitter

Twitter received a new face towards the end of 2010. What’s the prediction for 2011? Twitter will focus on what they’re currently doing and launch new features to promote just that. A steady year ahead.

So what WILL become all the rage in 2011? While Flickr and Facebook dominate when it comes to social photography, mobile photography will take over as the year goes on. Apps like Instagram, PicPlz, and DailyBooth will push the trend even further.

 

Ford to add 7,000 U.S. jobs; hiring plans signal accelerated turnaround of Detroit’s auto industry

Ford to add 7,000 U.S. jobs

Ford Motor Co., announced today it is adding more than 7,000 jobs in the United States over the next two years.

That includes 4,000 blue-collar jobs and 750 salaried positions in 2011, plus another 2,500 factory jobs in 2012. Mark Fields, Ford’s president of the Americas, will make the announcement at the North American International Auto Show in Detroit, which opens to automotive journalists today.

The hiring plans signal an accelerating turnaround of Detroit’s auto industry after its worst downturn in decades. Following years of cutting staff and closing plants, Detroit’s Big Three are hiring amid a fledgling recovery in U.S. auto sales and growing demand for their products.

General Motors Co. and Chrysler Group LLC have announced plans to add thousands of workers and engineers, bringing hope to hard-hit southeast Michigan, which has one of the country’s highest jobless rates.

Ford and GM were solidly profitable last year, and Chrysler made money on an operating basis. Ford’s stock is rising, as is GM’s after a successful initial public offering in November, just over a year after the company emerged from bankruptcy.

Ford, GM and Chrysler said in October that they would invest a combined $2 billion in their Michigan operations, adding as many as 2,250 jobs and retaining thousands more over the next couple of years.

A month later, GM and Chrysler each said they also planned to add 2,000 engineering jobs over the next two years, most in Metro Detroit.

GM says that since its emergence from bankruptcy in July 2009, it has outlined more than $3.8 billion in investments in the United States and Canada that will create or restore more than 11,500 jobs. Just over 8,000 will be in the United States.

Auto suppliers, too, are adding research and development staff after making deep cuts in their work force during the economic downturn.

Automakers stronger

The new factory jobs will make up for only a fraction of the tens of thousands of auto jobs lost in recent years. And they won’t be as highly paid. New plant workers will come in at “second-tier” wages of $14-$15 per hour.

The UAW, to help U.S. automakers become more competitive with foreign rivals on labor costs, agreed that new workers would be paid half as much as veteran employees.

The jobs announcement comes on the heels of a strong 2010 for Ford. Its U.S. sales rose 19.5 percent to give the automaker a 16.7 percent market share, up from 15.5 percent in 2009.

Ford, which has posted six straight quarterly profits, is expected to report strong results for last year’s fourth quarter, helped by rising sales and vehicle prices.

GM and Chrysler also are recovering after shedding debt, slashing costs and eliminating dealers in bankruptcy.

For the first time in seven years, Detroit’s automakers collectively gained market share in 2010, claiming 45.1 percent of U.S. car and truck sales, up from 44.2 percent in 2009.

Media Trends: Where they are now, and what to expect

Vocus, a company specializing in PR Management has recently shared their research on the media world and what to expect this upcoming year. From television, newspaper, radio and magazine specialists, keep an eye out for some of these interesting trends coming up:

Magazines:

As we all know, mobile platforms are fast growing and we can expect 20% of Americans to have a tablet such as Nook, iPad, etc. by 2014. Therefore, magazine applications will begin to explode this year.

Newspapers:

Hundreds of online news sites have been launched recently. Patch.com by aol have launched hundreds of their news sites this past year. New York Times has started the implementation of Paywalls where subscribers pay for their individualized news source. Additionally, a newspaper has come out exclusively to iPad owners called “The Daily.” Newsroom cafes are a hot trend we have also seen, allowing interaction between reporters and readers.

Television:

There has been a rise in early morning newscasts as well as growth in social media updates on our TV news sources. Broadcasters are also offering more and more iTunes apps to bring their news straight to you. Another trend to look forward to is 3D television. Although limited to certain channels for now, we can expect an increase in these three-dimensional options to fly our way.

Radio:

Radio is going mobile! With apps, podcasts and Internet radio such as Pandora and Last FM, radio listening habits are increasing. We can continue to look forward to bringing our radio with us while we aren’t listening in our cars.

Twitter Buyout?

Rumor has it that Twitter has been negotiating a potential sale to Google or Facebook. Wall Street Journal reports Twitter being worth between $8 billion and $10 billion dollars and it is questionable as to whether either of these companies would be willing to buy Twitter while forums everywhere are buzzing about this microblogging site being ‘overvalued’.

These talks haven’t really gotten anywhere thus far, but we’ll all be sure to stay tuned in on the situation.

Have you heard of Quora?

Quora is a search engine getting a lot of buzz lately. Once you register, this question-answer site can provide you with some great opportunities… but it also has it’s flaws. Here’s our brief review:

Ideas for market research will flow while using Quora. This is because the feedback you will get from viewers will enable you to focus on targeting your audience’s interests rather than something that may only interest you. The site deems the most accurate and helpful answer “The Best Answer” and gives a similar title to the experts on the site that continually give useful answers. A user then has the ability to network and pick the brain of these experts. From there, we would like to think that the real benefit of using Quora isn’t in fact the question-answer feature, but the networking opportunities with those in it’s community.

Now, on to the flaws of this new social media outlet. Aside from the many ‘stupid’ questions littering the site, Quora is big in self-promotion. As you can imagine, those with accounts involved in business are looking for traffic and therefore all of the information they supply comes from their angle. “Information only” is something that this site hasn’t mastered yet.

So, in the end Quora proves to be a Wikipedia/LinkedIn Answers mash-up with a few flaws. We’ll have to wait and see if it blows up anytime soon.

Protect Your Investment: How to make social media work for you

Unlike the past, when most communication between dealers and customers was one way, today you have the opportunity to participate in the conversation. You and your customer can talk, listen, connect to, and learn from one another. The longer this conversation goes, the stronger the bond you create. Here are a few things to remember:

  • Engage customers wherever they are looking for information that will inform their buying decision. Even after they’ve made a purchase, they’re already processing information for their next purchase. Stay in touch.
  • The sale doesn’t stop at the showroom door. Build your post-sale relationship by linking your customer to your other profit centers. A positive service experience will keep your dealership top-of-mind.
  • Customers are going to post reviews about your dealership—some positive and some negative. The important thing for you is to have a mechanism to capture and respond to that feedback in order to address your detractors while giving your fans a forum to express themselves.
  • Push relevant content—not just inventory—to search engines and social networks to position your dealership as the trusted expert, and pull customers into your brand.
  • Use multimedia to demonstrate what you’re doing for the community to cast your brand in a positive light.
  • Happy customers are powerful, highly authentic and compelling marketing tools.
  • When you invest in social media, track the performance of that investment. Benchmark your reputation and track it over time.

Making social media work for you may not look easy. But with the right tools it can be. By building relationships with your customers online, you can profit from the social media revolution and turn it into a powerful revenue generator for your dealership.

Ford Regains Top Spot Among Most-Considered Auto Brands

According to the latest Kelley Blue Book Market Intelligence Brand Watch study, Ford is back on top as the most-considered auto brand among new-car shoppers. Ford consistently captured the most-considered auto brand title from Q4 2009 through Q2 2010, but momentarily fell to the No. 2 spot for Q3 2010 when Toyota re-captured its previously held most-considered brand status for that quarter.

However, as Toyota works to rebuild its brand following last year’s recall crisis, it continues to see fluctuating consideration and currently resides back at No. 2.

In addition to being the most-considered auto brand overall (regardless of segment) for Q4 2010, Ford has been the highest-considered brand within the truck segment for nine consecutive quarters. Currently, Ford is the most-considered brand in the non-luxury SUV/CUV segment, and continues to gain ground quarter-over-quarter in the non-luxury sedan/coupe/hatchback segment.

For the latest Q4 2010 Brand Watch study data, Ford is back on top with a significant lead over the competition (at 29%), while Toyota and Chevrolet tie for second place (22% each) and Honda finishes third (21%). Rounding out the most-considered among the 37 new-vehicle brands tracked in the Kelley Blue Book Market Intelligence study are Nissan at fourth (13%), with Hyundai and BMW tying for fifth place (11% each).

“Ford’s revamped product offering, strong business strategy and clever marketing have helped to lead it back to a position of prominence in the minds of new-car shoppers,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book’skbb.com. “With enticing products offered in nearly every new-car segment, and an emphasis on forward-thinking technology like SYNC and MyFord Touch, Ford is dominating the shopping lists of many new-car buyers and has a real opportunity to turn this consideration into more dollar-signs. Kbb.com shoppers’ opinions and behaviors are leading indicators of future new-car sales patterns, so with the latest Brand Watch study results, we expect to see continued good news for Ford throughout the year.”

Specific to the non-luxury sedan/coupe/hatchback category, Honda received the highest consideration, followed closely by Toyota in second place and Ford in third place. In addition, Ford continues to improve in this segment each quarter. Following Ford are Chevrolet, Hyundai and Nissan, respectively. From Q3 2010 to Q4 2010, Hyundai’s consideration dampened slightly among non-luxury sedan/coupe/hatchback shoppers.

In the non-luxury SUV/CUV segment, Ford has regained the highest consideration within this category and has a good lead over the next competitor Toyota, followed by Honda and Chevrolet, respectively.

Specific to the luxury sedan/coupe/hatchback segment, BMW continues to maintain the top spot for consideration in Q4 2010, followed by Mercedes-Benz, Lexus, Audi and Cadillac, respectively. Lexus consideration within this segment has been on a gradual decline since Q4 2009.

In contrast, Lexus remains the most-considered brand in the luxury SUV/CUV segment for Q4 2010. Following Lexus for top consideration of luxury SUV/CUVs are Cadillac, Acura, Lincoln and BMW.

Honda continues to remain the most-considered minivan brand for the past 12 quarters, followed by Toyota, which also held the No. 2 spot for the past 12 quarters.

As previously mentioned, Ford continues to remain the most-considered truck brand for nine consecutive quarters, followed by Chevrolet, which has held the No. 2 spot for the same amount of time.

(Source: Kelley Blue Book, 03/10/11)

Online Advertising Surpasses Newspapers

According to recent statistics from the Pew Research Center’s Project for Excellence in Journalism, US marketers spent more money advertising online than in newspapers in 2010. This past year also marked the first year that online readership surpassed print readership in the US.

Total newspaper spending declined 6.6% to $25.7 billion including both print and online editions. On the contrary, online ad spending in the US continues to increase and is expected to reach $28.5 billion at years end.

View graphs and original article here.

Chloe’s Furniture To Open Four Area Locations

Raleigh, NC March 24, 2011— “Out with the old and in with the new!”, that’s how Deshon Hodge, CEO of Chloe’s Furniture describes the opening of the four new Chloe’s Furniture stores in Raleigh, Clayton, Fayetteville and Goldsboro. The new stores, ranging from 35,000 to 50,000 square feet each, are a fresh start for Hodge who formerly ran the Ashley stores at those locations. “We needed a fresh start, with name brand furniture and an approach that better suits this market”, says Hodge. It looks like local residents will get a chance to see that new approach when the stores open on March 24th.  Chloe’s Furniture expects to employ more than 80 people full and part time, mostly local residents. At a time when every area is concerned with creating and keeping jobs, the opening of new stores by Chloe’s Furniture is a welcome sight.

So, what makes Chloe’s Furniture different? Well, for one, the focus is on brand name furniture. At a time when many furniture stores are cutting costs by making and stocking their own house brands, Chloe’s furniture has elected to sell names like  American Drew, Klaussner, Simmons, AICO and Leather Italia, as well as celebrity designer lines from Kathy Ireland and extreme home makeover star  Ty Pennington. “House brands make it difficult for customers to compare prices because you never know what you’re getting, it’s hard to compare apples to apples” says Hodge. “Plus, most folks would prefer to have a name manufacturer, that has been in business in some cases for over 50 years, stand behind the pieces that they are adding to their home, in addition to the store”, he continues.

The initial grand opening sale runs from March 24th through April 11th but, Hodge hints that it will probably be held over based on early indications from area consumers. “Let’s just say, we’ve had a lot of interest from those that we’ve let peek behind the curtain, when they’ve seen the quality and the prices, all of the comments we’ve gotten have been very encouraging.”

Chloe’s Furniture is operated by Frede Enterprises, which is owned by Fred Hudson, CEO of Hudson’s Furniture and Deshon Hodge. Hudson’s Furniture operates 12 furniture stores in Florida and is listed in Furniture Today as one of the Top 100 Furniture Dealers in America. Hodge has been in the furniture business for over 25 years. He started as a boy in Tennessee working in his father’s furniture store and later became a manufacturers’ representative for national furniture companies. Most recently, Hudson and Hodge operated five Ashley Furniture HomeStore locations in North Carolina. In late 2010 the pair decided to transition those stores to Chloe’s Furniture “to provide customers with better quality, selection, service and overall value” according to Hudson.

Apps Take Over

Android and iPhones, the two leading smartphones of today are now being offered apps by companies such as cars.com that will allow the user to view features almost identical to it’s website. Key features include search, vehicle listings (with photos) and dealer locator including maps and directions. Ready-to-buy shoppers can have all of this information sent to their phone by simply clicking a button on the cars.com website.

There’s no doubt that we will see more companies enabling their sites to become ‘mobile-optimized’ in the very near future. With statistics pointing to 45% of phone buyers looking to purchase smartphones, apps like this one will have no problem increasing their company’s sales in a growing digital community with this kind of information at their fingertips.

By the Numbers.. Social Media’s Current State

Ignite Social Media compares the trends of the years past, habits of men vs women and which social networking outlets are on the rise along with which are plummeting. Do you agree?

Survey: Retailers Increasing Mobile And Social Efforts

5/ 3/11-  A growing number of retailers are experimenting with mobile and social marketing & media initiatives; some are paying immediate dividends and some are still speculative. According to a Forrester Research survey, 91 percent of retailers currently have a mobile strategy in place or in development, up from 74 percent a year ago. 72 percent of retailers say they will increase their spending on social networks this year over last year.  Retailers report that 21 percent of all mobile traffic is coming from tablets, amazing considering the iPad was launched barely a year ago. Although overall mobile traffic and revenue has not increased dramatically, studies suggest that investment levels in site optimization may still be inadequate. 48 percent of retailers report having a mobile-optimized website; 35 percent have deployed an iPhone app; and 15 percent offer an Android app and an iPad app, respectively. Challenges for retailers include differentiating the consumer experience on a tablet versus a smartphone and figuring out features and functionality and dueling app/mobile ecosystems.

Retailers’ main focus right now should be leveraging the tremendous popularity of tablet devices, such as the iPad. “Smart retailers  are creating mobile apps that make their brands seem current, entertaining and fun, while creating an opportunity to connect with more shoppers than ever before.

In past years, social networks surfaced higher as an investment area among retailers. This year, social networks ranked fourth on the list of successful customer acquisition sources, up significantly from last year. ROI from social is still seen by many as “muddy”: 62 percent of retailers said the returns on social marketing strategies are unclear, and almost  the same percentage said the main takeaway from social marketing is listening to and gaining better understanding customers.

This data indicates that most retailers are making significant investments in social and mobile tactics this year. Retailers and marketers executives should have modest expectations for the benefits of social media marketing for now. In mobile, the best retailers will be working to increasingly integrate features and functionality into the store experience because while consumers may not be extensively using mobile for product information yet, basic store information,  pricing and easy checkout capabilities are  presenting the biggest opportunities for most retailers sites in the near term.

Facebook: Hopping on the daily-deal bandwagon

We’ve all heard of–or at least seen the commercials for online daily deal sites such as Groupon and Livingsocial. Well now Facebook is in on the trend– and it’s called Facebook Deals. With options to “like”, “share” or “buy” a deal, Facebook sets itself apart from the rest. So far, they are reaching cities in California, Georgia, and Texas… But stay tuned, with Facebook always on top of the curve, we know we can count on daily deals in the Orlando area soon.

Check out their progress at facebook.com/deals

Younger Mobile Users Less Likely To Click Ads

According to new data from the mobile ad network Jumptap, the older and wealthier you are the more likely you are to engage with ads shown on your mobile device. Users 40 and over are close to five times more likely to interact with an ad than those younger than 40, and people earning over $50,000 a year are twice as likely to do so than people earning less. These statistics were taken from “an analysis of the 10 billion ad requests made to the Jumptap network by its audience of 83 million unique users in April.” The study also discovered that “58% of mobile Internet users are getting content through their browser, compared to 42% via ad-supported apps.” Smartphone users are often wealthier and older than feature phone users and typically use more mobile data. Jumptap, and other mobile ad networks are widely aware of this and ad targeting on cell phones is being used more now than what was originally seen on the PC Web.

(Source: Online Media Daily 05/11/11)


Online vehicle shoppers turning toward the phone

Believe it or not, trends going on in the automotive buying process are leading more towards consumers picking up the phone to contact dealers directly.

It seemed for a while that the internet would ultimately take over the car buying industry but over time, dealers have been too slow responding to leads and therefore training customers to call and complete their business over the phone or in person.

A study done by ADP Digital shows that dealers get 10 phone calls for every two internet leads, when a year ago the same statistic was seven phone calls per every two leads. Also, over the past 10 months, 2 percent of visitors have asked to be contacted  on dealer sites, whereas in 2007, the rate was 4 percent.

Phone calls are becoming shoppers initial contact because they have already researched what they needed to and are now informed and ready to be taken through the buying process by a professional. Professionalism is judged better via telephone or in person rather than by email or other means over the web.

Jefferson, the director of Internet and training for the Proctor Dealerships of Tallahassee, tells his salespeople to focus on getting timely and quality responses out for every 600 to 700 internet leads they get monthly. He says, “Tell them what you can do, not what you can’t.”

(Source: Automotive News, 5/16/11)

High Gas prices likely dampened May retail sales

U.S. retailers are expected to show a small increase in May sales, as high gas prices softened spending and  consumer demand for summer clothing and other discretionary items.

Analysts on average are expecting a 5.3 percent increase in May sales at stores open at least a year, according to Reuters. That compares with gains of 8.9 percent in April, when sales were fueled by a late Easter holiday, and 2.6 percent in May 2010, when many experts feared a double-dip recession.

Experts debate to what extent will the jump in fuel prices continue to take the edge off of growth, but as we move into several months of high fuel prices, we’re starting to see some effects in May.

Although U.S. gasoline prices fell to an average of $3.90 per gallon in the latest Lundberg Survey, Gas hit $4 per gallon earlier in May and has been above $3 per gallon for most of the year. High fuel prices affect shopping behavior. The longer those fuel prices persist, it’s more likely to affect the average household budget.

U.S. consumers turned more pessimistic in May, according to an index of consumer sentiment, while home prices fell back below crisis-era lows in March, as the economy that continues to show signs of a struggle.

May is not  a big month for shopping, it falls after the Easter holiday and before the back-to-school season. Retailers have been struggling with a slow job recovery that has kept spending levels low, especially for lower-income households.

The weather across much of the country was cool and rainy; many retailers also blamed bad weather for lackluster sales in the first quarter.

The biggest May sales increase, 7.3 percent, is expected from discount stores that appeal to consumers on a budget, such as Costco and Target, according to Reuters.

Clothing companies such as Gap Inc , TJX Cos Inc  and Limited Brands Inc are expected to turn in the smallest gain, of 2.5 percent.

TJX, Chico’s FAS Inc  and Ann Taylor parent Ann Inc indicate that May was strong, while Pacific Sunwear of California Inc , Aeropostale Inc (ARO.N) and Urban Outfitters Inc  saw generally weak trends.

Though they have not commented on May trends, early data suggests Limited and Ross Stores Inc probably performed well, while Gap was likely soft.

Consumer strategists say retailers that cater to lower-income consumers are expected to struggle throughout the year, since their customers are more affected by unemployment and higher food and fuel prices than a recovering stock market.


Motor Industry Still Feeling Effects from Japan Tsunami

Toyota Motor Corp. and Honda Motor Co. are speeding returns to normal production after the March 11 earthquake and tsunami idled factories and created shortages of parts. The slowdown in May sales came about because limited supply of fuel-efficient cars like Toyota’s Prius lifted prices and curbed purchases.

“Consumers were being told so dramatically after Japan that there’s going to be a shortage of cars, but this is going to be a temporary situation and so many of them will just wait,” said Alan Baum, principal of industry consultant Baum & Associates, who predicts 13 million auto sales in the U.S. for 2011. “To the extent May is a reasonably poor month, I’m not going to get carried away and say that’s going to transcend through the rest of the year.”

U.S. sales of cars and light trucks may rise to 13 million this year, the average of 16 analysts’ estimates compiled by Bloomberg. That would be the most since 13.2 million in 2008.

Average U.S. gasoline prices dropped for 14 straight days since May 11 to $3.80 a gallon for regular unleaded, according to AAA. Prices earlier in May were at the highest level since 2008, reducing demand as the country’s vacation season started.

The earthquake in Japan may result in 3 million to 3.5 million units of global production that will be lost or deferred into next year, according to researcher IHS Automotive. Worldwide light-vehicle production may rise to 73.7 million units this year from 71.9 million in 2010, according to IHS.

Toyota, which built 45 percent of its cars in Japan last year, may lead declines among major automakers with a 27 percent drop in May deliveries, the average of three estimates. Honda Motor Co., the second-largest Japanese automaker by U.S. sales, may say sales fell 25 percent, the average of three estimates. Nissan Motor Co. deliveries may decrease 7.3 percent, the average of three estimates.

“Predominantly this is a supply issue,” George Magliano, a New York-based senior economist for IHS Automotive, said in a telephone interview. “The auto market was developing considerable momentum coming into this month before issues related to Japan.”

Automakers benefiting from their Japan-based rivals’ supply constraints may be led by Hyundai Motor Co. and Kia Motors Corp. Their combined U.S. sales may pass Toyota for the first time, according to Santa Monica, California-based TrueCar.com. Deliveries for Hyundai and Kia may surge 43 percent in May to 115,434, behind only General Motors Co. and Ford Motor Co., according to the auto pricing website.

Toyota, the world’s largest automaker, has said it expects production in North America to return to about 70 percent of normal levels beginning in June, from about 30 percent in May. Honda forecast last week that North American production will return to 100 percent in August for all models except Civic small cars, and said May 17 that global production will return to normal before the end of the year.

 

Wired-cable penetration has declined to a 21-year low

According to a TVB analysis of Nielsen Media Research data for May 2011, a record number of American TV households are receiving video programming via an alternate delivery system (ADS), mostly via direct broadcast satellite, while wired-cable penetration has declined to a 21-year low.

According to Nielsen NTI data, national ADS penetration hit 30.9% last month, an all-time high that is up from 30.3% in May 2010. Wired-cable penetration, on the other hand, declined to 60.6% in May 2011 from 61.1% in May 2010 he last time wired-cable penetration had been any lower was in November 1989.

Click here to view more, including the penetration levels for all 210 DMAs.

FBI Uses Social Media To Search for Fugitive Who Inspired “The Departed”

Many advertisers have included social media outreach in their campaigns for years, but Wednesday’s arrest of fugitive James “Whitey” Bulger illustrates how the FBI is also a convert to Facebook, Twitter and YouTube.

The law enforcement agency launched a campaign in 14 cities on Monday aiming to help agents catch Bulger, the Boston mobster who had been on the lam for 16 years and was the inspiration for Jack Nicholson’s character in the 2006 film The Departed. The campaign included outreach on Facebook, Twitter and YouTube. By Wednesday evening, the feds had their man: Bulger surrendered in Santa Monica, California. The FBI announced the arrest on Twitter:

Before we give too much credit to social media, though, it should be noted that Bulger was ultimately done in by a TV ad. The ad, which appears above and targets Bulger’s companion, Catherine Greig, was also placed on the FBI’s Facebook Page on Monday. It was also loaded to the agency’s YouTube Channeland referenced in its Twitter feed.

The FBI began using social media in 2009, when it set up shopon Facebook, Twitter and YouTube. “To reach out to the public, we need to be where people are—and we know tens of millions of people spend their time in social media sites,” said John Miller, head of FBI Public Affairs, in a statement at the time. Prior to that, a company called NIC, which was founded by a former law enforcement officer, introduced a Most Wanted iPhone app that displayed the agency’s “Most Wanted” list.

Winning in the New ‘Marketing Democracy’

Imagine for a moment that you moved to a new home located right next door to a train station. It’s noisy at first. But after a while, you get used to the noise and barely notice it. That notion captures “exactly how consumers feel about marketing and advertising — as if it’s not even there,” said Tim Suther, chief marketing officer of Acxiom, the world’s largest processor of consumer data, at a recent Wharton Marketing Conference. Such consumer numbness has profound consequences — $112 billion in major brand advertising is wasted every year, while eight out of 10 online ads fail to reach their desired audience. “A truly awful, awful performance,” noted Suther.

With the right strategies, however, Suther said companies can successfully navigate this tumultuous world to reach their target customers. He cited a few of the most well-known strategies. For one, they should personalize their marketing to consumers instead of blasting them with broadly targeted ads. They should also identify those customers who spend the most money on their products and services, and invest more in marketing directly to them. Companies should craft a multidimensional profile of their customers, Suther advised, looking not only at what they are buying, but also what they are thinking and how they are behaving online. Moreover, companies should better coordinate their different sales channels to deliver a seamless experience for the customer wherever he or she chooses to shop.

“Einstein famously said that insanity is doing the same thing over and over while expecting a different result,” Suther said. Likewise, companies need to begin thinking differently about how they do marketing, especially in an increasingly connected world. With the expansion of sales and media channels, consumers can shop online using their computers or phones or make traditional bricks-and-mortar store purchases. This increased number of options presents marketers with tremendous opportunities to understand and reach the right audience — if they are savvy enough to do it correctly. “Those [consumers] who engage in multiple forms of media or channels are four to five times more valuable” than those who only participate in one, Suther noted — yet two-thirds of senior executives do not have insight into their consumers across all of these channels. For instance, while people spend 42% of their media consumption time online, advertisers shell out only 11% to 12% of their total advertising budgets on the web.

For marketers, the stakes have never been higher, especially in a world where, via the Internet, consumers can instantly judge a company and convey their opinions to fellow shoppers. This “consumer-to-consumer” trend is a “powerful force affecting the business of advertising and marketing,” and has created what Suther refers to as a “marketing democracy.” “Elections, if you will, are being held every day. Consumers are voting … and they are determining winners and losers. You’ve got to pay attention to this, because they will vote you out of office.”

Suther, who joined Acxiom in 2005 and became an officer in 2007, is responsible for the company’s product marketing, communications, sales support, strategy and business development efforts. Previously, he served as a senior vice president at Metavante, a banking and technology solutions firm, and as president of Protagona Worldwide, a marketing software company. He has a degree in finance and marketing from Loras College in Iowa.

So how can a company fine tune its marketing? The first step, according to Suther, is reaching and engaging the firm’s target customers. The company needs to know who its customers are and what their needs are. “Life is like a box of chocolates. You never know what you’re going to get,” he said, quoting from the movie Forrest Gump. “A lot of marketing and advertising is like that. If you don’t know who is on the other end of the equation, you’re going to have a very nasty problem.” Marketing efforts may be over-invested in relationships of low value and underinvested in those with high value. About 20% of a company’s customers bring the greatest portion of profits, Suther noted, while about half are only marginally profitable. Dividing customers into these groups and marketing appropriately to them makes a material difference in performance. “The future of marketing and advertising will be about reaching just those customers who are likely to drive the maximum value to your organization.”

Second, companies need multidimensional insight into their market. While some firms rely mostly on past purchases or online behavior in determining buying patterns, Suther said there are pitfalls in relying on only one facet of a customer. “If you’re relying just on a single dimension [of a consumer], you’ll get it wrong. You need to have a multidimensional view.” That means taking into account consumer action in different sales channels, behavioral changes over different life stages and other external information. It is a complex process with “no silver bullets.”

The third facet of smart marketing is best shown by what Suther considers “the greatest marketing movie of all time,” Groundhog Day. In the movie, Bill Murray plays a character who relives the same day endlessly and learns as much as he can about the people around him so that he can anticipate their needs the next time he sees them; his tireless work gets him the girl of his dreams.

“Remember me [i.e., the customer] and treat me like a friend. Wherever you see me, anticipate my needs and what I don’t need,” Suther said. “The notion of remembering every interaction and learning [from it] is an important part of being a marketer.” Once a company collects all the insights it has gathered about a particular customer, and implements a marketing plan, the firm then arrives at what Suther referred to as “the moment of truth: Getting [the plan] right can drive a five- to 10-fold return on investment.”

According to Suther, companies should deploy a strategy that encompasses all facets of smart marketing. By doing so, a firm will be able to reallocate 15% to 30% of its marketing budget into higher-performing options; such changes lead to real profits, he said. For example, a major global technology company looked at the pattern of calls coming into its call centers. Many of the calls were questions that the company’s online FAQ section could answer, or orders too small for sales representatives. The company ended up sending out a personalized newsletter to fill information gaps, and it enabled electronic handling of the small orders, saving money and boosting profits.

The economic benefits of smart marketing are real, but there are real-life roadblocks, Suther warned. Changes aren’t easy to implement when employees are used to the status quo. “Your [ad] agency of record will be all over the persona of your customers, while those in digital will be exclusively focused on digital. If you rely on just one of those dimensions, you will get it wrong.” He advised firms to find a way to help both sides collaborate more closely. In addition, senior management often can be impatient about the payoff of such changes and put pressure on the person who recommended the new policies. “It’s really important to show results along the way. [We advise doing] that every three months or so to remind those who you have convinced about your noble ambitions that you are making progress against that investment.”

In the end, the hard work of navigating the new world of advertising will be worth the trouble, according to Suther. Paraphrasing a famous quotation from the 1949 film The Third Man, Suther noted that, although Italy suffered constant warfare and bloodshed for 30 years under the Borgias, that era also gave birth to Michelangelo, Leonardo da Vinci and the Renaissance. “The point of all the tumult that exists in the marketing and advertising world is that goodness will come out,” Suther said. “We will have our Renaissance.”

Article courtesy of: The Knowledge Behind The News

5 Reasons Google+ May Not Be Huge Facebook Threat After All

Google’s newest social media platform, Google+, is the fastest growing social media site in history, which may have many people at Facebook and Twitter worried. However, there are several reasons why Google+ may not replace Facebook as the go-to social media site. Here are a few:

1. Usability

The overall layout of Google+ is similar to that of Facebook, but the subtle differences are going to be problematic in a world where you have the user’s attention for a whopping five seconds. If they can’t find what they’re looking for, they’re gone. The bottom line is people are used to Facebook, and may not want to spend the extra time trying to figure out the in’s and out’s of Google+.

2. Verbiage

Everyone knows what it means to “like” something. However, when you think of the phrase “plus one” you probably think of being allowed to bring a date to a wedding or work function, not of being a fan of or enjoying an activity, song, etc.

+1 works a lot like the Facebook “like” button, but for some this might be a tough concept to grasp. People like what they know and from the outset, the idea of +1 as a rating of support has been a point of head scratching and mild snickering. This additional lack of intuitive use is another point against Google in the battle for users’ hearts and minds.

3. Usefulness

Google+ has some awesome features. My personal favorite is Circles.  That one may want to share something publicly but differently is a concept well grasped by Google.

The friends I went to the pub with and listened to the song I completely “plus one” are different than my co-workers. And goodness knows my SEO friends are different than anyone else I know.

Google created Circles to allow the easy filtering of messages by grouping friends and the easy sharing of images, status updates, etc. to and from these same groups. It’s a great idea.

Unfortunately, my dad doesn’t have this problem, nor does my sister, nor does my grandmother; in fact, about 80 percent of the people I know are OK with one level of sharing. And if it is a bit of a bother to them, it’s less of a bother to put on the personal filter every now and then than to try to adopt yet another communications medium.

Sure, we geeks love new toys and we like to try new things, so we were happy to create a new account, figure out how to use it, play around in the settings, upload our photos again, etc. But how many of your relatives would?

4. Purpose

Sometimes the simple question needs to be asked (and every 2-year-old knows it): Why?

We know why Google wants the project to be successful. If Google+ became even half as successful as Facebook, the information on relationships they could collect and what that could mean to them as far as feeding advertising in our direction more accurately would be incredible. But we’re not Google.

Oh sure, we’ll play around with Google+, but if your non-tech friends and family don’t adopt it, it’ll likely become that thing you check every blue moon when you remember it’s there.

The problem Google is up against is that Facebook really isn’t bad. Plus, it’s already got virtually everyone you likely know signed up, connected, profiles built, comments, and history. Why would anyone give that up when there isn’t a problem? So you can drop people in Circles as you attempt to rebuild your full friends list and convince your parents to join Google+?

And for those of you thinking, why not use both, I would ask … why? Do we really want to waste more time updating our statuses – now on multiple websites? Tagging photos, chatting with friends, etc.? I think not.

5. Convenience

I touched on it before, but it’s a core issue with Google+ that’s worth discussing on its own. Using Google+ is not convenient.

I, like many, am busy. The number of draws on my time increases almost daily, many of these draws from the online world. I’ve got Facebook, Twitter, Skype, AIM, MSN, forums, a blog, email, the phone and (here comes the shocker) live human interaction. Why on Earth would I want another?

The single biggest problem that Google may be up against right now is that they’re fighting a battle from behind. While I anticipate very solid growth early on, once users realize that many of their friends haven’t moved over, rather than have to access yet another social media resource to communicate, they’ll slowly move back to just the one. The one where all their friends and contacts already are, where they can communicate in one location: Facebook.

Conclusion:

Will Google+ die? Maybe not. It’s possible the folks at Google will adapt and focus it more against LinkedIn than Facebook; that battle they could win, as it’s the same audience.

But Google+ is not set to become the Facebook killer it’s hyped to be. It just doesn’t solve any problems worth solving for the majority of people.

Article courtesy of Search Engine Watch.

Tips To Keep Visitors On Your Web Site

Your Web site can under-perform, actively drive customers away, poorly represent your business, or, well, just be horrible. Here are a few easy ways you can keep visitors on your Web site:

1. Be mobile-friendly. Almost 5 billion people have mobile phone subscriptions out of a population of approximately 7 billion people. You need a fast, well-designed, and efficient mobile-friendly site for your customers.

2. SEO optimization is not more important to you than readability. You got them there with high-ranking keywords, but once they arrive they want to read something written by and for real people. Avoid blatant SEO tactics.

3. Visitors want to know who you are, what you do, and how to reach you. Fluff, jargon, hype etc. do not belong on an About Us page. Be real — customers will respond.

4. Do not use auto-play audio or video. No one wants to turn off the video, or turn down the sound. If you include video or audio, let visitors choose to access it.

5. Don’t ask visitors to learn how to use your site. If an operation or a page itself requires some sort of instructions, your site is broken. Be clear. Be straightforward. Make next steps intuitive. Sometimes a little site reorganization or a different navigation structure is all you need. Remember, any time visitors have to figure out what to do next, they leave.

6. Include a search function. Maybe a small website doesn’t need an internal search function, but why take the chance? Many people would rather use a search function than take the time to explore. Since hundreds of millions of Google searches are performed every day, at least a few of your visitors will be happy to see a search function.

7. Deliver on advertising promises. Anyone can run an AdWords campaign and generate traffic, but what happens when a visitor lands on a page that only partially relates to the ad? They leave. Include one main call to action, make sure each page has a clear purpose, and don’t throw everything you have on a page in the hope something will create a response. Make sure your pay-per-click ads deliver exactly what they promise.

Following just a few of these simple tips will surely help to keep visitors on your site, and coming back for more.

Major Bands announced for Calling festival in Orlando at Citrus Bowl

Bob Seger & the Silver Bullet Band, Kid Rock,  the Killers and alternative pioneers the Pixies will be the headliners at the inaugural Orlando Calling music festival, a two-day event slated for Nov. 12 and 13 at the Citrus Bowl.

“Orlando has a rich history of outdoor rock concerts,” Orlando Mayor Buddy Dyer said at a press conference announcing a lineup that includes more than two dozen acts on four stages over two days. “This takes it to another level. This puts Orlando at the center stage for American music in November.”

The lineup will include major stars in rock, hip-hop andcountry music.

The Killers, who have not toured in the United States this year, will headline the festival’s opening day on Nov. 12, on a bill with the Raconteurs, Pixies, the Avett Brothers, The Roots, O.A.R. , Iron & Wine, Pete Yorn, Jenny & Johnny, Gavin DeGraw, Drive-By Truckers, Dr. Dog, Civil Twilight, Lucero, the Felice Brothers, Ben Sollee and Renee & The Translators.



On Nov. 13, Seger will perform on a lineup with Kid Rock, country star Blake Shelton, the Doobie Brothers,Dwight YoakamBuddy Guy, the Warren Haynes BandChris Isaak, Brandi Carlile, Robert Randolph & the Family band, the Flatlanders, Los Lonely Boys, Blues Traveler, Michelle Brand, Justin Townes Earle, the David Mayfield Parade and Orlando’s own ska band the Supervillains.

Tickets go on sale at 10 a.m. Saturday at Ticketmasteroutlets. If purchased before Sept 1, the cost is $80 (plus fees) for a one-day pass and $145 for a two-day admission. After Sept. 1, it’s $87.50 for one-day, $160 for two days.

The diverse lineup is the vision of concert promoter Melvin Benn, the CEO of British-based Festival Republic, a promotion company with a long record of successfulEuropean rock festivals, including iconic events at Reading, Leeds and Glastonury.

On Thursday, Benn said that he has been looking for a home for his first festival in the United States for several years. He picked Orlando for a variety of reasons.

“The climate is fantastic, especially at that time of year,” he said. “Plus, every single decent-sized airport in the U.S. has direct flights to Orlando and many airports around the world. You never need to explain to anyone where Orlando is.”

Benn also said that he has received a “very enthusiastic” response from the city, but nothing in the way of financial incentives. “I wish I could say one of the reasons is that they have given me millions of dollars, but it’s not the case,” he said. “I’m paying them money.”

City officials said the promoters are paying a standard $75,000 lease fee to use the Citrus Bowl and surrounding area.

For its part, the city also gets a $2 facility fee assessed on each ticket sold. Orlando also gets the lion’s share of the parking and concession revenues, but gives up a portion to the promoters, or about $4.50 per attendee, said Allen Johnson, the city’s venues executive director.

“The city is [financially] protected,” Johnson said.

“They sought us out,” said Dyer, who has seen Bob Seger in concert. “And we were really excited about having this in Orlando.”

Dyer said that one of the city’s main goals is to expose folks outside Central Florida to the fact that this area is more than just theme parks, and that a thriving arts and music scene lives here, too.

“We were trying to expose the world to the other side of Orlando,” Dyer said.

The local music scene will be exposed through Orlando bands performing at the event and free after-shows shows at other downtown venues on concert nights.

The mix of musical acts — from alternative country (the Flatlanders) to alternative rock (Pixies) and hip-hop (The Roots) — reflects Benn’s vision of a musical event with an American slant.

“I’ve been obsessed for some time, with matching country crossover acts with classic rock acts and alternative rock bands. I want to create a sound aimed at American audiences.”

Festival Republic is well-known in the concert business, said Gary Bongiovanni, editor-in-chief of industry magazine Pollstar.

Benn is “a major figure in the festival world in the UK,” Bongiovanni said. “He has a reputation for being able to produce well-run, quality events.”

Orlando Calling is the latest edition to a slate of Florida-based music festivals that include two roots-oriented events — Suwannee Springfest and Magnoliafest — at the Spirit of Suwannee Music Park in Live Oak. That outdoor space also hosts the annual Wanee Festival, brainchild of the Allman Brothers Band, the Bear Creek Music & Arts Festival and, in August, will be home to the inaugural 311 Pow Wow, a three-day festival hosted by rock band 311.

In a tough economy, festivals can help attract bands to Florida, a peninsula that sometimes doesn’t fit conveniently into tour itineraries.

“The individual bands aren’t faced with selling all the tickets,” Bongiovanni said. “With a festival, the success or failure isn’t tied to an individual act. From a career perspective, it’s less risky and if you like playing for large crowds, it’s a plus. Plus, all these bands have likely played Festival Republic events in Europe. Everyone in the industry knows who Melvin is.”

Bongiovanni says that Orlando’s theme-park destinations and availability of hotel rooms make it a different kind of destination from other music festivals, where fans tend to camp.

“For music fans who want to come to Orlando and have the festival experience, they can tie it into visits to the theme parks and other attractions in the area and make it more of a mini-vacation,” he says.

Write a Better ‘About Us’ Page

Potential customers who click your About Us page are already interested; now they want to be reassured you are the right choice. Here’s how to be sure your About Us page gives potential customers what they need:

Think customer first. What do potential customers want to know? At a basic level, first-time visitors want to know you own a real business with real capabilities. What questions are you asked during sales calls? What information tends to seal a deal or win over a hesitant customer? If I’m looking for a fulfillment center, “providers of outstanding customer experiences” means nothing to me, but “99.3% on-time shipping with a .002% error rate” sounds pretty good, because …
Facts are compelling, superlatives are not. Lots of About Us pages are filled with words like outstanding, excellent, world-class, visionary, cutting edge, etc. If your business truly is outstanding, prove it with facts. If your business truly is visionary, talk about innovative products you’ve developed. If you don’t have many facts and figures (yet), admit it. Describe what your business hopes to achieve, and how.
Don’t try to be something you’re not. As a general rule, the smaller the business the “fluffier” the About Us page. Trying to make your small business look bigger is a natural impulse but can also create awkward moments when a potential client asks for references or specific examples. Own the fact you’re a startup and show why new clients will benefit: Greater focus on individual customers, shorter lead times, a burning desire to prove yourself in a new market, etc. Candor is compelling. Turn who you really are into an advantage.
Describe qualifications, but be brief. Certifications and awards are great, but pick a few that resonate the most with potential customers. (Stick the rest on a separate “Industry Awards” page.) If you won an Emmy you can probably leave out your “Best Supporting Actor in a Non-Speaking Role at the Roadhouse Dinner Theater and Swap Shop” award.
Kill the stock photos. We’re all expert stock photo spotters. Use real photos or no photos at all. Seriously: Will anyone believe these fine folks work for you?
See your About Us page as a continual work in progress. Most About Us pages stay static for months or years. Whenever you land major customers, add expertise and capabilities, enter new markets, open new locations, etc., update your About Us page. Keep it fresh for prospective clients and for SEO purposes.
Don’t be afraid to ask for help.  Ask someone to read your About Us page and then describe back to you what you do. If they can’t immediately answer most of the five Ws (who, what, when, where, why), get back to work.
Final thought: If you’re fairly modest and writing an About Us page feels “salesy” or self-congratulatory, focus on facts, figures, and accomplishments. Objective information is a lot easier to write and a lot more powerful as well. Think about the needs you fulfill and the problems you solve for your customers. Then use plain language to describe how you fulfill those needs and solve those problems.

And put a monthly reminder on your calendar to revise your About Us page. It can always be improved.

GOOGLE CREDIT CARD TO BE OFFERED TO SELECT U.S. CLIENTS

Google Inc is offering its clients a credit line by introducing a credit card for its advertising customers in order to trump the competition in the online ad marketplace.

Google is offering the card to select U.S. clients with a competitive interest rate, ample credit line and no annual fee. The card can only be used to buy search advertising on Google, the world’s No.1 Internet search advertising network.

The AdWords Business credit card is another Google first; it could enable marketers to spend more on its search ads.

Google, said the credit card was designed to help small and medium-sized businesses that advertise on Google who often do not have the budgets to support ad campaigns ahead of a heavy sales seasons and holidays such as Valentine’s day or Halloween.

Many small businesses are resource-constrained and are often cash flow-strapped yet still trying to grow a business.

Many consumer-oriented companies  have offered credit cards for years to drive purchases, inspire customer loyalty and track spending habits. Some retailers that own their own credit card operations also earn some interest income.

Google will email invitations offering the credit card to some of its customers on Wednesday. The card will initially be available as a “beta” test, available to select users.

Google makes 96 percent of its revenue from advertising, the majority of which comes from the small ads that appear alongside its search results, known as AdWords. Google’s AdWords business faces growing competition from a search alliance between Microsoft Corp and Yahoo Inc, as well as from social networks like Facebook, which is becomingvery popular with advertisers.

The AdWords card is a MasterCard that will be issued through the World Financial Capital Bank. The card’s 8.99 percent annual percentage rate is the ongoing rate, and not an introductory rate, Google said.

Google is keeping quiet on many of the other details, including the minimum and maximum credit lines available and the number of people to whom the card will be offered.

Google said the credit card will be offered to a “statistically significant” number of people as Google examines the results of how availability of the card affects customer spending behavior.

Even though availability will skew toward smaller businesses, Google will cast a wide enough net to can  see what resonates depending on historical monthly spend.

Google will evaluate customers’ creditworthiness through a combination of internal efforts and with the help of a financial partner.

The main motive for the card is to provide loans to Google customers in an economic environment in which getting credit can be tough. It’s based on customer need.

One popular perk missing from Google’s credit card is the ability to rack up airline miles or other rewards with purchases.

Third Party Reviews No Longer Included On Google Places

Today Google dropped all third party reviews from its yellow stars review rating on the Google Places Page. Now only reviews directly posted on Google Places are showing. That means if you were relying on Yelp, DealerRater or any other third-party site to entice customers over to your place of business, they’re gone. Also gone with them are all third-party citations and Web sources. Instead, Google is now linking users directly to the individual reviews. That means DealerRater reviews are now only viewable on DealerRater.com – users are not seeing them on your business’ Google Place Page.

Now that more importance being placed on your Google Place Page reviews, Google is encouraging users to talk about your brand and leave reviews with a Write a Review call to action located directly on your business page. The addition of this Write a Review call to action is something small business owners should take advantage of. The existence of that button will encourage customers to leave reviews and will also allow for your business to engage and interact with customers, by responding to reviews whether they are positive, negative or neutral. The more action there is on the Places page, the better and more trusted you’re going to look to visitors who land on it.

If you weren’t actively seeking out reviews on Google before, it would be a good idea to make it part of your review strategy now. Before it was easy enough to focus on the major review sites and to allow Google to bring in this content, but with Google now leaving that content off its native domain, it means many small business owners may find themselves with a pretty empty-looking Google page. The same way you are soliciting reviews for other sites, you now want to make sure you’re adding Google to the list.

Overall, the changes usher in what Google must assume is a more mature product and experience for users. The fact that they’re no longer relying on third-party reviews likely hints at a belief that their local audience is big enough to support its own review community. Keep building reviews up in a variety of different sources, but if you hadn’t yet added Google Places to that list, this update is a clear sign that you should.

Pay TV Subscribers Cancel in Record Numbers

8/10/11 

The six largest U.S. cable and satellite-TV providers combined to lose about 580,000 customers in the second quarter, the biggest such decline in history, according to Bloomberg.

The economy is forcing the industry to face the reality of cord-cutting — pay-TV customers canceling their subscriptions in favor of online options such as Netflix Inc. (NFLX) and Hulu LLC. While cable executives dismiss the idea that subscribers are switching to “over the top” Internet competitors, the reason isn’t as important as the decision to stop paying for TV, said Craig Moffett, an analyst at Sanford C. Bernstein in New York.

“Rising prices for pay TV, coupled with growing availability of lower-cost alternatives, add to a toxic mix at a time when disposable income isn’t growing,” Moffett said. “For younger demographics, where in many cohorts unemployment is north of 30 percent, and especially for those with limited or no interest in sports, the pay-TV equation is almost inarguably getting less attractive.”

The catalysts, according to cable and satellite executives, include increased competition from telephone companies AT&T Inc. (T) and Verizon Communications Inc. (VZ), which added a combined 386,000 video customers, and a sluggish economy that saw customers to cancel service.

As new home sales slumped in May and again in June, installations suffered, and there weren’t enough new subscribers to make up the difference, Cablevision Systems Corp. (CVC) Chief Operating Officer Tom Rutledge said yesterday on a conference call.

Of the six largest publicly traded U.S. cable and satellite providers, only DirecTV added customers in the second quarter. Comcast Corp. (CMCSA)Time Warner Cable Inc. (TWC),Charter Communications Inc. (CHTR) and Cablevision lost a total of 471,000 video customers in the quarter. Dish Network Corp. (DISH) lost 135,000 after adding 58,000 in the previous period.

Dish Chief Executive Officer Joseph Clayton said yesterday that  goals are to  rely on its technology and promotions to persuade customers to buy more expensive offerings and increase average revenue per user,  saying he’s “looking for a better class of customer.” He plans to change the company’s advertising strategy away from “cheap, cheap, cheap” and seek out higher-paying subscribers who might have bypassed Dish for DirecTV (DTV) in previous years.

“The cable companies have been losing for years, but what you’re seeing is the satellite guys joining some of that,” said Ian Olgeirson, senior analyst at market research firm SNL Kagan. “They are seeing the same kind of effects of being a mature industry. How do you support your base of customers when you don’t have a bunch of new households to convert? It’s difficult to sustain in a down economic quarter.”

Some analysts caution that second-quarter results are not always an appropriate guide for the state of the industry, given seasonal factors such as departing college students cutting off service and summer vacationers watching less TV.

The larger trend is clearly one of video losses, said Jason Bazinet, an analyst at Citigroup Inc. inNew York, who notes that pay-TV subscribers have declined in three of the past five quarters.

“While second-quarter seasonality likely played a role, some households may have left the pay-TV universe entirely,” he wrote in a note to clients.

Ram to partner with Wal-Mart on pickups

Chrysler’s Ram Truck brand will partner this fall with Wal-Mart to promote its pickup trucks at stores across the USA. The “outdoor lifestyle” program is part of Ram’s “Code of the West” marketing campaign for its Ram pickups that seeks separate Ram from rivals.

The Ram marketing campaign recognizes the alignment between truck buyers, the hunting and fishing lifestyle and Wal-Mart, this promotion brings all three together.

Ram unveiled two new commercials with the tagline, “Guts. Glory. Ram.” The first spot features a Ram pickup driving through the desert with wild horses and touts the truck’s combination of power — a 390 hp. Hemi V8 — along with its 20 miles-per-gallon highway fuel economy. The second ad shows the Ram Power Wagon model climbing a steep, rocky hill. The commercials are due to air nationally in September.

“The idea is to create a campaign that separates Ram from competitors. The western theme reflects “a time when a handshake meant you gave your word, and working hard was respected and rewarded.”

Ram was split from the Dodge brand two years ago and the spin-off has allowed us to focus all of our creative advertising and social media efforts specifically toward truck buyers,” said Ram CEO Fred Diaz.

Sales of Ram pickups this year are up 25.9% through July, compared with a 7.7% rise for the best-selling Ford F-Series pickups and 7.2% for Chevrolet Silverado.

Darden plans major growth for LongHorn, eyes Outback

 

 

Orlando-based Darden Restaurants has found its next big thing inLongHorn Steakhouse.

After a couple of years of slow growth during the economic downturn and adjustment to a new corporate owner, the Western-themed chain is taking off, with annual sales expected to hit $1 billion for the first time this year.

Darden, which also owns Olive Garden and Red Lobster, bought LongHorn and Capital Grille for $1.4 billion in 2007.

Darden this year is accelerating the pace of expansion with plans to dot the country with LongHorns, eventually reaching 600 to 800. With just 356 restaurants so far, “LongHorn still has this long runway of growth available to it,” said Dave George, president of the chain.

There is still some room for new restaurants in older markets, including the Orlando area, which George said could likely support one or two more. Yet, much of LongHorn’s emphasis is on the new frontier and introducing a more sophisticated look and brand.

As it grows and heads west, LongHorn will have to wrangle with some tough competition.

Unlike Olive Garden and Red Lobster, the country’s biggest Italian and seafood chains, LongHorn is No. 3 in the steakhouse category. It generated about 7 percent of U.S. steak sales last year, according to restaurant research firm Technomic.

Tampa-based Outback Steakhouse gets 16.5 percent of the market, with Texas Roadhouse in second place at 9.2 percent.

“I think we compete directly with Outback,” George said in a recent interview with the Orlando Sentinel. “Texas Roadhouse is targeted for a little bit lower-income demographic.”

Still, restaurant experts say Texas Roadhouse will be a strong rival. Outback, meanwhile, is trying to reinvigorate itself by introducing new dishes, renovating and considering opening more restaurants for lunch on weekends.

LongHorn also will face heavy competition as it moves into Western states, where “there’s a lot of steak,” said Steve West, a restaurant-industry analyst for the financial services firm Stifel Nicolaus. “It’s very competitive, especially in Texas.”

George said LongHorn can compete with its new, more contemporary atmosphere and its food. LongHorn also is promoting its lunchtime menu, while many competing steakhouses don’t open for weekday lunch.

Though it turns 30 years old this month, LongHorn is still new to much of the country, and that novelty will generate excitement, restaurant analysts said.

And the chain doesn’t have to worry about remaking its image in emerging markets, George said, because “they don’t know the old LongHorn.”

That old LongHorn was a honky-tonk kind of place with road signs, stuffed animal heads and wagon wheels on the walls. Décor in newer and recently remodeled restaurants features stone and wood interiors, back-lit metal silhouettes of cowboys, bronze sculptures and oil paintings.

At the Altamonte Springs LongHorn, which just got remodeled, customers said they like the new look.

It is “a little more classy,” said Erika Floyd, 22, an Altamonte Springs hairstylist.

George said LongHorn still wants to attract its primary customer base — diners between 35 and 55, with household incomes between $50,000 and $75,000.

“We’re just trying to evolve as that consumer evolves,” he said, while acknowledging that “we may be attracting folks before who may have thought the restaurants were too old.”

So far, the new approach appears to be working. Sales at restaurants open at least 16 months, a key industry measurement, have jumped between 6 and 7 percent for each of the past three quarters.

George and restaurant experts both say that LongHorn has benefited from being part of the world’s largest casual-dining company, which rang up $7.5 billion in sales last year.

The corporation brought in executives who had made Olive Garden a success and, working with the Italian chain’s ad agency, created a new marketing campaign to match LongHorn’s more refined interiors.

Well-known for market research, Darden has helped LongHorn tweak little things that make a big difference, said George, LongHorn’s chief since 2003. Instead of artwork of cowboys working with cattle, for example, LongHorn chose to hang paintings of them relaxing — something consumers said created a calmer feeling.

Darden’s experience also will help the company pick the best places to grow, said Darren Tristano, executive vice president of Technomic.

“Most markets they are going into, they exist there [already],” Tristano said. “They understand the market. It’s not new to them. It’s just new to the brand.”

Toyota looks to regain momentum with new redesigned 2012 Camry

 Toyota showed off its all-new Camry on Tuesday, aiming to recover lost sales momentum with price cuts and a high-powered ad campaign for its flagship sedan that remains America’s best-selling car.

Sales of the Camry are down 8 percent this year but it is still No. 1 in the United States despite market-share gains by mid-size rivals the Nissan Altima, Ford Fusion, Chevrolet Malibu and Hyundai Sonata.

Losing sales this year has been the Honda Accord, which has fallen to No. 4 among mid-size cars from its No. 2 position in 2010.

The launch of the new Camry comes at a time when Toyota is struggling to shake free of the damage from costly safety recalls and the more recent problems caused by production shortages after the March earthquake. The Japanese automaker has seized on the redesigned Camry as a symbol for its own return as a force in the U.S. market.

Toyota unveiled the 2012 Camry with unusual fanfare at events staged in Detroit, Los Angeles and New York that featured a live video link from a plant in Kentucky where President Akio Toyoda drove the first production vehicle off the assembly line.

Camry’s U.S. sales peaked in 2007, as Toyota extended a lead over GM in global auto sales. That was also the first year of the current generation of Camry.Some 15 million Camrys have been sold worldwide since it debuted in the U.S. market in 1983. It has been the top-selling car in the U.S. market for nine years running and 13 of the last 14 years according to Toyota.

Overall, U.S. Toyota sales fell 7 percent through July for the No. 3 spot behind GM and Ford. Most of its competitors gained, led by Hyundai with a sales increase of 23 percent.

The Camry’s reputation for worry-free reliability made it a favorite of a generation of American consumers now entering or already in their retirement years. The average age of the U.S. Camry buyer is 60, which the automaker hopes to lower with the 2012 model, the sedan’s seventh generation.

The mainline gasoline-powered sedans will begin showing up at U.S. dealers in early October, ahead of an October 17 launch of an advertising campaign that will climax during the early 2012 Super Bowl broadcast, said Carter.

Hybrid versions of the Camry will be at U.S. dealerships by December.

Among competitors, the new Chevrolet Malibu goes on sale in early 2012 followed later in 2012 by new versions of Honda’s Accord and Nissan’s Altima.

Earlier this month, General Motors said it expected Toyota and major Japanese automakers to be “back with a vengeance” in the U.S. auto market as they are able to recover from the March earthquake. A sign of that may be the pricing of the 2012 Camry lineup. Of the six versions of the Camry, five will have lower prices than their 2011 counterparts, which Toyota executives say is partly because of the intense competition in the mid-size sedan market.

While Camry prices are lower, fuel economy ratings are higher, led by the Camry Hybrid LE, the lower-priced of two hybrid offerings. It will get a combined city and highway average of 41 miles per gallon. The four-cylinder gasoline models will get a combined 28 mpg.

Ad Money Reliably Goes to Television

 

The economy is faltering and consumers are scared, but you wouldn’t know it by watching television, where advertisers are still pouring in money. Last week, companies like Viacom, CBS and Time Warner reported windfalls in television revenue, much of it from growing ad spending.

Every company was asked the same question by worried investors — will the weakening economy claim television advertising — and every company answered the same way.

“We have not seen any deterioration in our current market conditions,” said Brad Singer, the chief financial officer of Discovery Communications.

“We don’t see any signs of a deceleration right now,” said Stephen B. Burke, the chief executive of NBCUniversal.

“We’re not at all afraid, and frankly we’re looking forward to the fall,” said Leslie Moonves, the chief executive of the CBS Corporation, referring to the start of the fall season.

Despite worries of a possible double-dip recession, so far companies are not pulling back from their television ad spending plans, demonstrating the resiliency of the medium even when faced with a downturn and the persistent threat of the Internet to steal viewers.

Television networks are coming off a robust upfront advertising period, when companies make commitments for spending in the season ahead.

While they can back away from some of those commitments a few weeks ahead of time, “we have seen absolutely none of that,” Mr. Moonves told analysts last week. On the contrary, he said, what CBS has seen is “increased demand for our shows.”

That demand also has been reflected in the so-called scatter market for advertising, when companies buy commercial time during the season. The Viacom chief executive Philippe Dauman said Friday that scatter pricing was up more than 10 percent in the quarter that ended in June, driving a 12 percent gain in domestic ad sales in the spring — and a prediction for double-digit growth this summer, too.

Media executives said in interviews that the optimism reflected the fact that television is a tried and true medium for advertisers, remaining at or near historical highs in the United States.

“In essence, it’s all about sticking with something that you know is proven,” said Chris Geraci, the president of national broadcast at OMD, a unit of the Omnicom Media Group, echoing sentiments heard during the recession in 2008.

Some companies put down more money in the upfront market this spring to guard against high scatter prices later. “Companies are making more long-term commitments,” he said. “You want to just buy more efficiently.”

Other corners of the media industry — like publishing — may have fewer reasons to be confident about their prospects. The Washington Post on Friday said that print advertisingrevenues had slid by 12 percent in the second quarter, while revenue from display ads on its Web sites slid by 16 percent.

The New York Times had a 6.4 percent decline in print advertising revenues at its properties in the quarter, but a 2.6 percent increase in online advertising. The publishing arm of Time Warner managed a 1 percent uptick in ad revenue, but warned of current weakness in both advertising and newsstand sales.

Broadly speaking, forecasters have been anticipating a slight pullback in ad spending growth this year. ZenithOptimedia, part of the Publicis Groupe, said in mid-July that it thought worldwide ad spending would grow by 4.1 percent this year, down slightly from its previous forecast of 4.2 percent growth. A week earlier, the GroupM unit of WPP said it expected 4.8 percent growth this year, down from a previous forecast of 5.8 percent growth.

“There is no doubt we’re seeing a slowdown in growth as we get into the second half of this year,” Rino Scanzoni, the chief investment officer at GroupM, said in an interview last week.

Mr. Scanzoni called television one “area of resilience” — driven mostly not by broadcast, but by cable — and said that television is “probably more favored in the media mix” at this time. It is a medium that advertisers know, understand and can measure, he said.

Then there are the competitive pressures. “You have to maintain your advertising even in the recession,” said Pat McDonough, the senior vice president for insights and analysis for the Nielsen Company. “You’re likely to lose market share if you don’t.”

Concerns about the economy are likely to loom large as the Walt Disney Company, Cablevision, Dish Network, and Scripps Networks report earnings on Tuesday, and as the News Corporation reports on Wednesday. Last week, the potential slowdown in the ad market was the first question posed by an analyst on the earnings conference call with Comcast, which took control of NBCUniversal this year.

“We are obviously concerned about the economy the way you would expect us to be, but so far the advertising market continues to be strong,” Mr. Burke said.

In interviews, advertising buyers singled out the pharmaceutical and personal technology sectors as particularly good for business, and said that the automotive and financial services sectors had rebounded after suffering during the last recession.

CBS, on its earnings call last week, said that Japanese automakers that had significantly curtailed their spending after the March earthquake and tsunami were now coming back, benefiting local stations that depend on automotive revenue.

Television companies have two more advantages. One is the rise of digital distributors like Netflix that are willing and able to pay for shows.

If digital distributors can peacefully co-exist with the cable and satellite distributors that are the backbone of the business, they can be new long-term sources of incremental revenue.

“Media owners are getting better at taking their content and monetizing it beyond television,” said Catherine Warburton, the executive vice president for national broadcast at Universal McCann, part of the Interpublic Group of Companies.

The other advantage is overseas, where their businesses are growing at a faster pace than they are in the United States. “We’ve seen real meaningful demand around the world on the advertising side,” David M. Zaslav, the chief executive of Discovery, told analysts last week.

In countries like France and Italy where Discovery has channels, ad sales make up about 35 percent of revenues, with subscription fees contributing the rest.

In the United States, ad sales make up at least 50 percent of revenues. “We can really have a lot of growth there,” he said of its international business.

Demand for autos and auto parts jumped 11.5 percent in July; Aircraft orders soared 43.4 percent

Companies ordered more autos, aircraft in July

 A surge in demand for autos and aircraft drove orders for long-lasting manufactured goods higher in July, easing fears that the economy might be on the verge of another recession.

The rebound in the auto industry helped offset a decline in orders for most other factory goods.

Stocks rose after the better-than-expected report showed the biggest increase in durable-goods orders since March, when the Japan earthquake disrupted supply chains and slowed auto production.

The Dow Jones industrial average jumped about 100 points after the report came out. Overall orders for durable goods rose 4 percent last month, the Commerce Department said Wednesday.

The report “reinforces other data that the economy wasn’t at serious risk of recession through July,” said David Resler, chief U.S. economist at Nomura Securities. Retail sales and industrial production also held up well last month, he said.

The data did offer a cautionary signal: a key category that tracks business investment plans fell 1.5 percent, the biggest drop in six months. That suggests businesses are pulling back on spending. Orders in all other major categories dropped, including computers, electronic goods, and machinery.

Resler and other economists also warned that the turmoil in the stock markets could cause businesses to pull back further this month.

“It remains to be seen whether firms cancelled or postponed planned orders,” Paul Dales, an economist at Capital Economics, said in note to clients.

A durable good is a product that is expected to last at least three years. Economists view the report cautiously because orders tend to fluctuate from month to month.

Excluding transportation goods, orders rose just 0.7 percent. It was the third straight gain in so-called core orders. Demand for primary metals surged 10.3 percent, the most since last November. Some of that increase was likely due to higher prices for metals such as copper.

Overall, orders rose to a seasonally adjusted $201.5 billion in July. That is 35 percent higher than the recession low hit in April 2009. But it is still 18 percent below the level in December 2007, when the recession began.

Demand for autos and auto parts jumped 11.5 percent, the most in eight years. Aircraft orders, a volatile category, soared 43.4 percent, after falling 24 percent in June.

Auto production is rebounding after a slowdown caused by the Japan earthquake. The Federal Reserve reported last week that factory output rose 0.6 percent in July, mostly because of an increase in auto production.

A big order by American Airlines helped boost the aircraft sector. American Airlines ordered 100 new Boeing 737 planes with fuel-efficient engines in July.

Manufacturing has been a key source of economic growth since the recession officially ended in June 2009. But it began to slump this spring, along with the broader economy.

Orders fell in April and June, partly because of supply disruptions stemming from the March 11 earthquake in Japan. And a spike in gas prices earlier this year cut into consumer spending, reducing demand for big-ticket items, such as computers, appliances and furniture.

Several recent reports suggest the sector could be slowing further. A survey by the Federal Reserve Bank of Philadelphia showed that manufacturing in the mid-Atlantic region contracted in August by the most in more than two years. A Richmond Fed survey released Tuesday and a New York Fed survey last week also pointed to slowdowns in those areas, although not as severe as the Philadelphia region.

Economists predict further weakness, even as temporary factors fade. Falling stock prices and fear of another recession may persuade consumers and businesses to hold back on big purchases. That could slow orders for industrial machinery, electronic goods and appliances.

Analysts have been scaling back their forecasts for economic growth for this year and next.

Michael Feroli, an economist at JPMorgan Chase, projects the economy will expand at only a 1 percent annual rate in the second half of the year. That’s not much better than the 0.8 percent growth that the government reported for the first half of the year.

The Federal Reserve this month said that it expects weak growth for the next two years. As a result, it said that it plans to keep its short-term interest rate near zero until at least mid-2013.

The Fed has limited options for stimulating growth. And a renewed focus on deficit reduction in Washington, which could result in steep spending cuts or tax increases, could weaken the economy further.

Investors hope that Federal Reserve Chairman Ben Bernanke announces another round of bond purchases on Friday in a highly anticipated speech in Jackson Hole, Wyo. The bond purchases, known as quantitative easing, are designed to keep interest rates low and boost stock prices. But economists don’t expect Bernanke to launch any major efforts.

August 2011 Central FL Real Estate Market Statistics

Keeping Loyal Customers Loyal

Keeping Loyal Customers Loyal

In a lagging economy, keeping your loyal customers loyal can become increasingly more challenging, but there is probably no other time when good customer loyalty is more vital to your business. Your loyal customers are your high-value clients, bringing in as much as 80% of your overall sales, according to Pareto’s principle (the 80-20 Rule). Do you know who your most loyal customers are? What are you doing to keep these high-value clients happy and loyal customers?

These steps will help you gain a better understanding of who your best customers are and what you can do to keep them loyal.

 1.  Ask Them What They Think.  Survey all of your customers, former customers and potential customers with just two simple questions: would you recommend us to others? Why or why not? The answers to these two questions tell you how what general percentage of your customers is loyal as well as their reasons behind why they are or not.

2.  Stay In Touch.  Whether it’s included in a loyalty program or you purchase on separately, find an email marketing tool and use it wisely. Be sure to target messages to the right customers at the right time. Provide your customers specific information they would find helpful and special offers that are customized just for them. Let them know about contests, upcoming events, new products, etc. But don’t send out too much too often. Find a balance between encouraging their patronage without taking advantage of their trust.

3. Go the Extra Mile.  In addition to your advertisements, announcements and non-solicit emails, sign up for a greeting card system or set up recurring email campaigns. Send birthday greetings with a gift or special offer just for them. This personal touch helps your customers understand that you value them as individuals and invites more loyalty and trust.

4. Encourage Participants, Not Spectators.  Keep your loyal customers involved and ask for their opinions on any pending changes or new directions in your business arise. You never want to make a business decision that will alienate your loyal customers. Their word-of-mouth marketing will achieve more success than almost any other marketing efforts you employ.

5.  Say It To Their Face.  Never shy away from an opportunity to thank your customers for their business. Train your employees to extend sincere thanks for even the smallest business transaction. Greet your customers by name (when you can) and encourage all your employees to do the same. Host customer appreciation events. Support local charities. Be involved in their (your) community and you will be surprised how much you get ahead by simply giving back!

Mobile Marketing on the Rise



According to the national report, not all automotive consumers are alike when it comes to mobile Internet usage. Among Audi owners, 63.7% have accessed the Internet via smart phone, iPod Touch or similar mobile device in a typical week, a figure that is twice that of the general population. Similarly, 56.6% of BMW owners have reported Internet usage via a mobile device (79% more likely to be a mobile Internet user), and among Land Rover owners, 64.5% are mobile Internet users (more than twice as likely compared to the general population).

Among all U.S. adults, 31.6% have accessed the Internet via a mobile device in a typical week. The figure represents more than 45.9 million consumers across The Media Audit’s 80 measured markets. 

Mobile marketing expenditures are projected to substantially increase — possibly quadruple over the next few years, as more consumers are drawn to mobile devices that have access to the Internet. The new report highlights some of the consumer and media audiences that have quickly adapted to mobile Internet usage and technology, thus impacting how local and national marketers will need to allocate advertising dollars. 

From a demographic standpoint, mobile Internet users are younger, more educated, and affluent compared to the general population, and skew male. According to the study, 53.5% of mobile Internet users are male, while 46.5% are female. Furthermore, those who earn $100,000 or more in annual household income are 71% more likely to be mobile Internet users, and those consumers under the age of 45 are considerably more likely to be mobile Internet users compared to those who are over 45. Consumers without a college degree are 16% less likely to be mobile Internet users, while college graduates are 23% more likely. 

As advertisers weigh the benefits of mobile marketing which can include messaging, display or search, the platform is largely recognized as a means to increase location awareness. Thus national advertisers as well as local advertisers will have to leverage marketing intelligence to get a better understanding of their customer’s mobile Internet behavior. 

An example illustrating the varying degrees of mobile Internet usage can be found in findings related to the fast food category. According to The Media Audit report, frequent consumers of fast food — those who consume fast food three or more occasions in a typical week, are 28% more likely to be mobile Internet users. 

However, among the different fast food brands, Subway and Taco Bell consumers are significantly more likely than McDonald’s or Burger King consumers to have access to the Internet via a mobile device. According to the report, 42.8% of monthly Taco Bell consumers have accessed the Internet via a mobile device, while 41% of Subway consumers have done so. Furthermore, only 37.6% of monthly McDonald’s consumers are mobile Internet users, while 34% of Burger King consumers have access to the Internet via a mobile device. Among fast food consumers least likely to access the Internet via a mobile device are those who have eaten at Boston Market and Hardee’s in the past month.

Pandora Suffers Blow To Outlook From Clear Channel Competition

iHeartRadio – 11 million songs


Pandora- 990,000 songs 

Clear Channel has launched its iHeartRadio app and website in a direct assault on Pandora’s growth. Its new offering will let users create customized stations, a core feature at the center of Pandora’s business model. Pandora also competes with Sirius XM, the sole provider of satellite radio service.

Pandora’s stock has slid over 10% in the last two days in part due to this news. We take a quick look at the new service and acknowledge that this could have significant implications for Pandora’s valuation going forward.

Our price estimate for Pandora stands at $10.12, slightly below the market price.

 

Clear Channel’s Challenge

Pandora is a leader in Internet radio in the U.S. and stands out for its ability to offer a unique and personalized Internet radio experience to listeners. Clear Channel will challenge this uniqueness when it offers users the ability to create personalized stations from a song catalog that is 10 times the size of what Pandora offers and provides a range of artists that is 5 times bigger. [1] And all of this is included with no caps on listener hours and it’s advertisement-free at first.

Impact on Pandora?

If Clear Channel successfully markets the app and website, users may opt to go to Clear Channel instead of Pandora especially if its selection of music is indeed much larger than Pandora’s. We don’t know yet how this library stacks up without playing more with the app. However we note that many users don’t necessarily need to make a switch since they can enjoy both services for free, which is what we plan to do until we pick a favorite.


However for valuation purposes, if Clear Channel or other competitors takelistener hours away from Pandora, this will invariably impact Pandora’s valuation.

Furniture industry to expect faster growth in 2012, 2013

In an updated forecast, industry analyst Jerry Epperson is now calling for a 2.9% increase in U.S. consumer spending on furniture and bedding this year – much of it due to price increases rather than real growth.

 Jerry Epperson, Furniture, Economy

But he’s looking for gains of 4% next year and 5.7% in 2013, which he expects will be “the best year for furniture and mattresses in recent history…. Without the distraction of the presidential election and with stronger existing home sales (above 5 million units), we expect the closest to ‘normal’ activity the home furnishings industry has seen in almost six years.”

He expects consumer spending, the broadest measure of industry retail activity, to continue growing at 4.1% in 2014 and 5% in 2015. The spending figure is projected at $83.3 billion this year and is forecast to top $100 billion in 2015.

Late last year, Epperson, of Mann, Armistead & Epperson in Richmond, had expected better news in 2011 based on economic indicators and projections at the time. But GDP growth was slower than expected, unemployment stayed high as too few jobs were created, and the modest recovery in housing starts has mainly been in multi-family, with single-family starts still declining a bit.

He said he still expects economic growth to pick up in the second half of this year – aided by a drop in gas prices – but not as much as was expected earlier in the year.

“We do not expect a double-dip recession, but agree with many that it has a 25% to 30% chance of occurring, most likely in early 2012 – if at all,” he wrote in the new forecast.

Epperson, who bases his economic assumptions on the University of Michigan projections for 2011 and 2012 and uses a blend of five other long-term forecasts for 2013-2015, said he expects U.S. economic growth will reach or exceed 3% next year. That will finally “give the economy a perceivable level of growth,” he said.

He projects GDP growth of a more consistent 3.3% to 3.5% in 2013 as home resales and housing starts pick up. More gradual improvement is expected in 2014 and 2015 as unemployment finally declines to 8% or lower, according to the forecast.

J.D. Power Reports: September New-Vehicle Retail Selling Rate Shows Marked Improvement From August

 

 Sept. 22, 2011  – New-vehicle retail sales for September continue to improve, with the selling rate expected to be much stronger than in August, according to J.D. Power and Associates, which gathers real-time transaction data from more than 8,900 retail franchisees throughout the United States.

Retail Light-Vehicle Sales
September new-vehicle retail sales are projected to come in at 842,400 units, which represents a seasonally adjusted annualized rate (SAAR) of 10.3 million units. This marks the first time the retail selling rate would be above 10 million units since the 10.8 million-unit rate in April. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.
“Coming off a solid Labor Day sale, retail sales exhibited unexpected strength in the second week of September, as the recovering inventory levels have helped to bring buyers back into the market,” said Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. “However, incentive levels remain flat compared with August and the economy remains a concern, so the sales pace in the second half of the month is expected to give back some of the gains.”
Total Light-Vehicle Sales
Total light-vehicle sales in September are expected to come in at 1,038,700 units, which is 9 percent higher than in September 2010. Fleet sales are expected to be down 1 percent compared with last September, but will account for 19 percent of total sales.

Sales Outlook
Given the relative strength of September, J.D. Power is maintaining its forecast for light-vehicle sales in 2011 and 2012. Total light-vehicle sales for 2011 are expected to come in at 12.6 million units, a 9 percent increase from 2010. Retail light-vehicle sales are forecasted at 10.2 million units for 2011, an increase of 11 percent from 2010.
For 2012, the outlook for total light-vehicle sales remains at 14.1 million units and retail light-vehicle sales are at 11.5 million units. However, there is a high level of uncertainty that remains.
“The uncertain global environment, specifically the debt troubles in Europe, continue to be the major source of downside risk in the U.S. economy and automotive markets,” said John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. “Until a level of stability is reached globally and consumer confidence is returned, the U.S. automotive selling pace is not expected to return to pre-recession levels.”
North American Production
Through August 2011, light-vehicle production in North America has increased to 8.5 million units, up 8 percent from the same period in 2010. The Detroit 3 OEMs have increased production by 16 percent year-to-date, while the Japanese manufacturers have lost 8 percent—due to the parts shortages from the earthquake in Japan back in March. European OEMs are up 38 percent for the same period, as a result of added production of the BMW X3 and Volkswagen Passat in North America, as well as strong demand for the new Volkswagen Jetta.
Vehicle inventory maintained a 49-day supply at the beginning of September, unchanged from August. Car inventory remained at the same 40-day level as it was in the previous month, while truck supply edged down by one day to 57 days. With stronger production levels and imported shipments returning, inventory is improving—although several manufacturers continue to have limited supply availability: Hyundai/Kia with a 21 days’ supply (was 19 days in August), Honda with a 32 days’ supply (previously 28 days), and BMW at 33 days’ supply (previously 30 days).
The 2011 North American production outlook remains on track for 12.9 million units, an increase of 9 percent from 2010. Fourth-quarter 2011 production output is expected to reach 3.3 million vehicles, which is an increase of 11 percent from the same quarter in 2010.
“Continued inventory stock replenishment and Japanese OEM recovery is responsible for the large year-over-year increase relative to the lower level of recovery in vehicle demand,” said Schuster. “As inventory normalizes into 2012, growth in production levels is expected to slow to a pace more consistent with sales.”

Edmunds.com: Car Buyers Lean Towards Gas Sippers, Compact Demand Way Up, Incentives Way Down

Though gas prices continue to fall and are estimated to drop even more in the next few months through year-end, Edmunds.com data released Tuesday reflects that consumers are still more likely to purchase smaller gas sippers than take on an SUV or truck.

According to the company’s analysis, shoppers are still leaning towards compact or subcompact cars as a result of higher than average gas prices. High gasoline prices have caused a realignment of buyer priorities and almost unprecedented demand for small cars, just in time for the launch of a stable of tech- and content-rich new models,” explained Edmunds’ AutoObserver.com senior editor Bill Visnic.

Besides economic factors, Edmunds.com reports that increasing options in the small car segment are also driving consumer interest.

“More options in the small car segment are drawing in more consumers,” stated Edmunds.com analyst Jeremy Acevedo.

“The Chevy Cruze, Fiat 500, Ford Focus and Hyundai Elantra are among the small cars that are stimulating interest,” he added.

Though more options and new 2012 small-car models are becomings increasingly attractive to consumers, the bad news is “as demand goes up, inventory and incentives fall,” company officials noted.

According to Edmunds.com’s True Cost of Incentives data, the national average incentive for the compact car in August was $864, down 63 percent from $2,318 in August 2010.

Moreover, subcompact car incentives in August averaged $520 per vehicle sold, down 57 percent from $1,211 in August 2010.

However, if consumers are willing to delve into less popular segments, such as mid-range luxury cars, they may find better savings packages. Edmunds.com data reports that the national average True Cost of Incentives for this segment came in at $4,228 in August 2011.

Breaking the trend seen throughout August down further, for cities, Atlanta saw the highest rate of increase in compact car shopping as it rose 41 percent from 2010.  Subcompact car shopping also increased by 35 percent year-over-year in Georgia’s capital city. 

Boston followed close behind, with August compact car shopping rising by 28 percent versus 2010, and the rate of subcompact car shopping in rose a significant 59 percent year-over-year.

Edmunds.com listed the rate of increase in compact and subcompact car shopping across the country’s metropolitan areas, as follows:

 

Market Increase in compact car shopping vs. 2010 Increase in subcompact car shopping vs. 2010
Atlanta 41% 35%
Boston 28% 59%
Chicago 43% 43%
Dallas-Fort Worth 44% 70%

Houston

48% 44%
Los Angeles 37% 58%
New York 38% 60%
Philadelphia 34% 53%
San Francisco 25% 44%
Washington, DC 41% 47%

Compact Cars Become more Profitable

Also of note, as the compact and subcompact segments continue to gain popularity, they are also becoming more profitable for dealers and OEMs, AutoObserver.com’s Visnic reported.

For example, Hyundai Motor America’s  chief executive officer John Krafcik recently noted at a media event the new Elantra is selling for an average of $4,000 more than the previous-generation model.

Moreover, AutoObserver.com reported that Don Johnson, General Motors vice president of U.S. sales, pegged the rise in the new Chevrolet Cruze’s average transaction price at $4,000 more than the Cobalt that preceded it.

“Auto-company executives wishing for increased small-car supply in the U.S. happens about as frequently as an appearance of Hailey’s comet, but with prices reaching new highs and almost no incentives required, compact cars are the auto companies’ new BFFs,” Visnic explained. 

Fake Reviews ? New York Times reports there’s good reason to be skeptical

Fake Reviews

Anyone who relies on reviews when they’re shopping online has seen rave reviews for a restaurant, book or perhaps a vacation rental property that seems, well, a little too enthusiastic.

It’s gotten to the point that when looking at some vacation rentals, if it only has a few reviews, some people ignore five-star reviews entirely and focus on one-star reviews (to check for real complaints versus griping or malice) and three-star reviews (usually a good guide to the pros and cons of something).

There’s good reason to be skeptical – as the New York Times reports, more than a few companies have taken to hiring people to write rave reviews of their products or services.

Given that cheaters abound, it is in the interest of companies such as TripAdvisor and HomeAway to make sure that reviews are genuine. If they’re not, and customers learn they can’t trust reviews, they’re likely to take their business elsewhere.

And this kind of “opinion spam” is getting more advanced – meaning that it’s harder for people to tell if a review is a real one, or just a fake rave for hire.

Enthusiastic endorsements don’t always come in prose-form. There are a number of shops that have popped up to sell Facebook fans, Twitter followers, and even +1 buttons for the recently arrived Google Plus.

This is why the HomeAway’s and FlipKey’s of the world should be interested in research from a team at the Computer Science Department at Cornell, which focuses on algorithms designed to spot “deceptive opinion spam” – fake reviews that have been written to sound authentic.

Their research, which was recently presented at the 49th Annual Meeting of the Association for Computational Linguistics focuses on several different techniques for spam-spotting, as well as combinations of the same. Using these techniques, they were able to spot fake reviews with about90% accuracy – far better than the human control group, which did no better than chance.

Note that this research was directed at finding false positive reviews. The group’s next step is to refine their techniques and then extend them to include false negative reviews, as well.

If their research is successful, it may well be implemented in large sites to improve regulation of reviews and get the spam out.

Getting Digital Marketing Right:Q&A with Google’s Industry Director for Retail Todd Pollak

17 September, 2011

Q&A with Google’s Industry Director for Retail Todd Pollak: Getting Digital Marketing Right

What are a few of the top trends you’re seeing in digital retail this year?
In no particular order…mobile, social, deals and convenience. The cost of walking out of a store is cheaper than it has ever been. For the first time in history, consumers have the ability to save the absolute amount of time and money at zero incremental cost regardless of whether they’re standing in a store with their coveted merchandise in hand. When you have two-parent working families with kids who have more activities, an economy generating flat income growth relative to inflation and rising commodity prices, the pressure to adapt and find efficiencies to maximize your lifestyle accelerates.

Just as retailers are increasing productivity through adoption of technology like CRM, connected stores, recommendation engines, free shipping, site-to-store, etc., the vast majority of consumers are also using technology to steepen their value and efficiency curve and improve their lifestyles. Deals, recommendations, inventory availability and price comparison have become so accessible to Main Street that the traditional ways consumers look to save money more clearly than ever express their true costs of use.

Are digital technologies reinventing the relationship between consumers and advertisers? What does this mean for retailers?
Shopping tools that are always available, predicated on simplicity and elegant design combined with real mobile processing power have fundamentally changed retailing forever.

There are 330 million search results for “my 2-year-old can use an iPhone.” In short, technology is more accessible than it has ever been at a time when inventory, pricing, reviews and recommendations information have reached near 100% transparency for non-perishable goods. Today, we have easy-to-use tools that personalize, organize and filter information like Groupon, Facebook, Twitter, Amazon, and Google.

Consumers’ understanding of these tools is peaking and usage has become more sophisticated overtime.
Retailers should be focused not just on where consumers spend their time researching and buying, but on how best to tailor their tactics based on the transitions people make by device and by location. From desktop at work, to tablets after work on the couch, to mobile in the aisles, focus on transitions in mindset and context. Size of screen and location impact the kinds of information people seek.

I’d be remiss if I didn’t ask about one of the biggest social media announcements of the year – the launch of Google+. Will you share three tips for retailers looking to leverage the platform?
Social seems to have its most significant impact at the front – through awareness – and backend – through conversion – of the buying cycle. What deals are available? What brands or products do people who are like me buy and when it comes down to the final choice, which brand do people like me buy? It’s still very early days and retailers are investing in the promise of tomorrow.

Today, social signals are relatively one dimensional in that they express interest, but not necessarily intent. In the future, companies that make sense of these connections and influences by understanding their relationships will revolutionize the way retailers merchandise and personalize their stores for each customer.

At Google, our goal is to use social signals to improve consumer experiences across Google properties and partners. In the near term, we’ll enhance the relevance of intent-based queries which are already delivering the most qualified customers on the web to retailers. If someone is looking for barefoot running shoes and their friend endorses a specific result for barefoot running shoes, we believes this will improve engagement for brands, improve the relevance of generic queries and deliver higher conversion rates for our partners.

According to this year’s State of Retailing Online report, search is still the number one marketing acquisition tool for online retailers. I know you can’t tell us what’s in the Google secret search optimization sauce, but what common mistakes do you see among retail clients when it comes to optimizing their site for search?
For multichannel retailers, too many still optimize for an online conversion and view all other paid search visits to the website as waste. Many focus their investments on 2% of their traffic as though the only people who come to a website are online buyers. This happens because the organization views the website as one store, although a very profitable one, and not the gateway to the brand. The stores benefit far more from the website than the online division, they just don’t fully measure online to store activity. The first stop for any consumer – regardless of where they intend to buy – is a website. As long as online divisions are hyper-focused on converting every visit, the consumer experience, which is tied to the whole brand, will be sub-optimal. To create an optimal customer experience, online divisions need to focus less on converting every visitor online and more about the overall customer intention and experience.

The other piece of advice I’d give is to think differently about website visitation by category. People don’t buy sheets the same way they buy blenders so if you’re using the same layouts, information, attribution window for transaction across all your categories…there’s an opportunity to increase topline revenue by optimizing for each category.

As online and offline continue to blur, retailers are hoping to increase customer insight and build relationships between online and the physical world. What tips do you have for retailers looking to leverage this customer data?

The consumer has changed and as a result, retailers must structure themselves for the 21st century.

First, align your organization to optimize for delighting the consumer regardless of the channel. From the CEO down, the whole organization must commit to the idea of a single profit center where everyone is fairly compensated and media is optimized for any conversion regardless of channel. In short, start by eliminating internal friction. This is a must do, because consumers don’t see any difference between your stores and your website. Creating separate PnLs that compete for resources, media dollars, etc. creates confusion for the consumer and damages a brand. Most of our testing demonstrates that the stores benefit far more from a visit to the website than the .com.

Second, invest in continuous testing. I’m always surprised when retailers expect a single test with a positive or negative outcome to change a media mix that’s been built over 10 years. Make a long-term commitment to solving this because you have to believe that eventually 20%+ of commerce in the U.S. will happen online.

Third, invest in a single view of the customer. That means breaking down the data silos between stores, website analytics and online transactions. This will enable top line revenue growth for your company by truly understanding the lifetime value of your customers.

How are you seeing locality play out in the current customer shopping experience? 
Location is still one of the most important factors for a traditional retail business. Today’s consumer wants instant gratification as a result of technology. Price transparency and inventory availability make local shopping more important than ever before. Your customers expect that they only have to drive to your store if you have what they need, when they need it.

I don’t think that retailing has changed all that much. The foundational things still apply, but technology that can identify a customer’s current location presents all kinds of interesting opportunities to encourage a visit that never existed before.

Mobile is accelerating the importance of a local strategy. There are over 100 million Google mobile maps users in the U.S. Some of our best performing ad units on a mobile device are brand searches and click-to-call. Consumers use their phones as shopping tools to save time looking for your store locations and calling for information. In fact, we have data that shows that mobile queries peak at the same time that offline sales peak. Those consumers who are a bit further ahead of the curve know they can find inventory availability and pricing information by store location on the web as well.

The easier the tools are to use, the smarter we become about who the shopper is and what she likes, the more opportunity there will be for advertisers to design an exceptional and personalized shopping experience for their customers.

What do you think the 2011 holiday season holds for retail? 
Long lines and aggressive shoppers have been hyped by the media for the past three years. True or not, this stuff sticks with people. As a result, a greater share of transactions will shift to the web again in 2011. Shoppers will buy earlier and deal sites will see gains as consumers hunt for values. Increased use of technology in the aisles as a shopping assistant, as well as mobile and tablet usage will see exponential growth.

What is the number one recommendation you’d make for retail companies as they begin their holiday planning?
Don’t build another microsite. Increase your presence in social communities where consumers already spend time. You’ll activate a lot more users and benefit from network effects.

Facebook dramatically redesigning users’ profile pages to create a “new way to express who you are.”

Facebook is dramatically redesigning its users’ profile pages to create what CEO Mark Zuckerberg says is a “new way to express who you are.”

Zuckerberg introduced the Facebook “timeline” Thursday in San Francisco at the company’s f8 conference for some 2,000 entrepreneurs, developers and journalists. The event is also being broadcast to more than 100,000 online viewers.

The timeline is reminiscent of an online scrapbook, with the most important photos and text that users have shared on Facebook over the years. It’s Facebook’s attempt at growing from an online hangout to a homestead, where people express their real selves and merge their online and offline lives. The timeline can go back to include years before Facebook even existed, so users can add photos and events from, say 1995 when they got married or 1970 when they were born.

Zuckerberg took the stage after a humorous skit, in which actor Andy Samberg impersonated him. The real Mark Zuckerberg looked considerably more playful and at ease than he has in past events, suggesting he is growing into his role as the public face of Facebook.

But he quickly got down to business as he introduced the timeline as “the story of your life — all your stories, all your apps and a new way to express who you are.”

Expanding on its ubiquitous “like” buttons, Zuckerberg said Facebook will now let users connect to things even if they don’t want to “like” them.

“We are making it so you can connect to anything you want. Now you don’t have to like a book, you can just read a book,” he said. “You don’t have to like a movie; you can just watch a movie.”


Report: Mobile Ad Spend to Hit $1 Billion, dramatic increase in banner, search, rich media, and video ads predicted

EMarketer has released analysis of mobile ad spending that predicts decreased investment in message-based ads and dramatically increased investment in banner, search, rich media, and video ads on the mobile platform.

mobile-ad-spending-share-2011-2015

As the iPhone 4S is released, featuring the Siri personal voice assistant that understands what you mean when you talk, it’s clear that smartphone technology is stepping forward. The increased presence of these high-tech tools, as well as decreasing costs, has pushed smartphone ownership toward becoming the “norm.” eMarketer predicts that smartphone ownership will reach 38 percent in the U.S. by the end of this year.

The increase in smartphone ownership coincides with a significant increase in mobile ad spending, which should reach $1.23 billion for U.S. advertisers by the end of the year, up 66 percent from last year’s $743 million figure. eMarketer predicts that the figure will continue to see escalating growth, reaching $4.4 billion by 2015.

Total investment isn’t the only big change, though. Advertisers are focusing less on message-based ads (ads sent via text message, usually after the mobile user sends a subscription message via short code) and more on visual and search ads. While message-based ads are currently in the lead with 36.1 percent of spend, eMarkter predicts that will have changed by the end of 2012.

eMarketer specifically predicts that rich media and search ads will win 33 percent of spend each, leaving message-based ads at 28.2 percent of spend. This divide will grow further in the coming years, with eMarketer’s 2015 figures showing messaging at just 14.4 percent to search’s 40.2 percent and rich media’s 36.4 percent.

The fastest growing segment, however, is video advertising. While it still holds a very small portion of the mobile ad market (at 4.7 percent currently), eMarketer predicts video “will grow at a compound annual rate of 69 percent between 2010 and 2015,” reaching 9 percent of ad spend (an estimated annual figure of $395.6 million) by the end of 2015.

eMarketer’s figures are based on “mobile advertising estimates from other research firms, company data from major mobile ad networks and vendors, marketers’ mobile marketing strategies, and smartphone and tablet adoption and usage trends.”

Speaking of advertising, online advertising hit a new high in the first half of this year, $14.9 billion, the IAB announced last week – with $7.3 billion of that from search advertising.

Pandora hits the road with Toyota Entune system

Toyota is now offering an embedded version of Pandora on the 2012 Camry and 2012 Tacoma. That’s big for the streaming audio service, since the Camry is America’s best-selling car and the Tacoma is the best-selling compact pickup truck in the US market.

According to the announcement by Pandora Media, both vehicles began to appear on dealer lots in September 2011.

Pandora is available via the Toyota Entune system. With Entune, Pandora controls are made available via the radio dashboard, allowing drivers to easily select stations, thumb songs up and down, and skip songs using the vehicle’s controls. The key to connecting Pandora with Entune is the smartphone; Entune is currently compatible with Android, Blackberry and iPhone smartphones.

“Incorporating Pandora into the native environment of the car makes turning on personalized radio as easy as traditional radio. We’re thrilled that Toyota is offering our service to their drivers,” said Pandora executive vice president of business and corporate development Jessica Steel.

Retailers Ramp Up Mobile Sites and Apps

With the holiday shopping season rapidly approaching, more consumers than ever are expected to turn to their phones to research and make purchases this year. At least half of mobile consumers view their device as a holiday shopping resource for product information, coupons and sale information, according to a recent Mojiva survey.

Retailers, likewise, are ramping up mobile operations to capitalize on the growing appetite for m-commerce. A new report indicates that 37% of retailers now have mobile sites — up from 12% last year and 4% in 2009.

More stores are also embracing mobile apps. One in four (26%)  retailers have at least one mobile app, up from 7% in 2010. Nearly a quarter (23%) have an iPhone app, and 10% an Android app. Few are creating apps for other smartphone operating systems such as Windows Phone 7, WebOs and BlackBerry.

A smaller group of retailers (18%) have both a mobile site and an app, and 26% have a mobile site optimized for each of the most popular smartphone platforms. The results are based on an annual audit analyzing Internet Retailer’s Top 500 companies on their rate of mobile adoption.

The top 10 when it comes to m-commerce: Amazon, Armani Exchange, Barnes & Noble, Buy.com, Cabela’s, Gilt Groupe, The Home Depot, Newegg, Walgreens, and Wal-Mart. The ranking is based on various factors including having a mobile site, rendering a home page correctly, offering a checkout/booking capability, and having an app.

Not only have they implemented mobile-optimized sites to support a wide range of devices, but they have taken initiatives a step further with exceptional transactional functionality and well-designed apps that meet customer needs.

The study pointed out that mobile adoption, and specific mobile tactics, can vary widely by industry. The health and beauty, food and drug, and mass merchant categories, for instance, skewed much higher than flowers, gifts, hardware and home improvement in launching iPhone apps — 66% compared to 36%.

Only 20% of companies in the music/books/video vertical have mobile-optimized sites compared to nearly 70% in the office supplies category and more than half among apparel sellers. Less than half of retailers are putting up mobile sites to date — probably because they don’t see a big upside yet to building out a mobile presence.

Forrester study in June estimated that retailers in 2011 can expect just 2% of their online Web sales to be conducted via mobile. While m-commerce will grow 40% each year for the next five years, it will still only reach 7% of sales by 2016.

Google revenue soars, G+ network grows to 40 million

Google reported third-quarter earnings that handily beat estimates, and announced that its three-month-old Google+ social network now has 40 million users.

That’s a big increase from the 10 million users Google+ had at the end of Google’s last quarter, when it remained in a “limited” trial phase. The network opened to the public in late September.

In an earnings release late Thursday, Google said it earned $9.72 per share. Analysts polled by Thomson Reuters had forecast earnings of $8.74 per share.

Advertising and profit: Investors are looking to Google’s advertising figures as a barometer of the overall economy, and the numbers were good — though the cost-per-click increase was not as high as it was last quarter.

Profit rose as both the number of clicks on Google’s ads and the amount that advertising partners pay per click increased. Paid clicks rose 28% and cost per click ticked up 5% compared to last year.

Sales for the Mountain View, Calif., company rose 33% over the year to $9.7 billion. Excluding advertising sales that Google shares with partners, known as “traffic acquisition costs,” the company reported revenue of $7.5 billion, which beat analysts’ forecasts of $7.2 billion.

Shares of Google (GOOGFortune 500) rose 6% after hours.

Spending and hiring: Google is continuing to spend at a quick clip. Capital expenditures totaled $680 million in the third quarter, including investments in Google’s massive data centers.

But Google has plenty of cash to back up its shopping spree. As of September 30, the company had $42.6 billion on hand.

Google is also continuing to ramp up its hiring. Full-time staffers totaled 31,353 as of September 30, up 9% from the previous quarter.

Motorola: On Google’s earnings call, analysts asked about Google’s $12.5 billion acquisition of Motorola Mobility (MMI). The deal was announced in August and, once finalized, will score Google some valuable Motorola patents. Intellectual property is turning into a battlefield among tech giants including Apple (AAPLFortune 500) and Microsoft (MSFTFortune 500).

When an analyst asked whether Google will license Motorola software to other companies, Google CEO Larry Page said “it would be premature” to discuss details before the deal is approved.

“We’re very excited about Android, and we see that ecosystem growing,” Page said, adding that the strategy is “getting stronger” — and the Motorola deal is part of that.

Browsers and search: Page also revealed that the Google Chrome browser now has more than 200 million users worldwide.

Susan Wojcicki, Google’s senior vice president of advertising, talked up theFlight Search that Google launched last month. She also said Google data shows that “ads that are socially annotated are more useful for users.”

Google execs did not talk specifically about recent antitrust concerns. The Federal Trade Commission has been investigating the company for evidence of abusive practices, and a federal judge recently rejected Google’s planned settlement deal in its attempt to create a universal online book library.

Page instead offered up a “view of the future” sentiment that echoes some of his past statements: “We are still at the very early stage of what technology can deliver. These tools will look very different in five years.”

Online advertising becoming as important as spot TV

According to Q3 2011 research from media buying solutions provider STRATA, clients are becoming just as focused on digital media as they are on spot TV. US ad agencies reported 34% of clients were thinking most about online advertising in Q3, compared with 24% the previous quarter. Meanwhile, the number of clients whose primary focus was on spot TV dropped from 41% to an almost-even 35%.

The online marketing tactics in use by the agencies surveyed did not change much, with online display, search and social media coming out on top, their usage rates stable from quarter to quarter. On social media, similarly, priorities remained the same, with Facebook, YouTube and Twitter the clear leaders, though LinkedIn, in fourth position, gained ground.

The number of agencies purchasing mobile advertising for their clients also stayed relatively stable, at 23%, but the types of ads they were creating began to change. In Q3, display advertising took an even larger lead over SMS. More than half of agencies said they are now creating more mobile display ads for their clients than other mobile formats, compared to just 16% of agencies that are still mostly creating SMS ads.

The mobile devices being targeted by those ads were changing, too. Agencies cut their interest in BlackBerry by half between Q2 and Q3, according to STRATA. Still, Android-targeted efforts lagged behind iOS-focused ones.

eMarketer forecasts display will take 33% of mobile ad dollars in 2012, pushing it ahead of SMS and even with mobile search spending. It also estimates that the iPhone will lose its spot as the No. 1 smartphone in America by the end of this year, when Android’s share will far surpass it.

Changing demographics of tablet and eReader owners

Demographics changing on tablet and eReader owners

In the U.S., as recently as last Summer, tablet and eReader owners tended to be male and on the younger side. Not anymore. In less than a year, 25-34 Men make up only 18% of these owners; while 30% are 55+. As well, according to Nielsen’s latest quarterly survey of mobile connected device owners, back in Q3 2010, 62% of tablet owners were under the age of 34 and only 10% were over the age of 55. By Q2 of this year, only 46% of tablet owners were under the age of 34 and the percentage of those over 55 had increased to 19%.

Looking at the data by gender underlines key changes in the eReader category. 61% of all eReader owners are now female, compared to a mere 46% in Q3 2010. Smartphone owners are now evenly split between male and female and tablets remain primarily male.

ereader and tablet demographics

women-connected-devices

 

Analyzing potential for the home improvement industry

An uncertain economy, low consumer confidence, suppressed home sales, and an increase in consumers deferring their home improvement purchases may make for a shaky future for the home improvement industry, but according to The NPD Group, a leading market research company, there is hope for growth in the near future, but it lies in the hands of manufacturers and retailers.

“In order to grow their share in the home improvement environment, manufacturers and retailers need to look toward innovation, and the basics of effective and efficient merchandising to uncover the opportunities, including deploying the promotional deals consumers want,” said Kevin Gilbert, director, The NPD Group.

According to NPD’s Consumer Tracking Service, in August 2011, nearly three quarters (74%) of consumers strongly agree that coupons and special deals are the deciding factors when it comes to purchasing home improvement products; a number that has increased over the past year.

“E-commerce is an increasingly important aspect of today’s home improvement marketplace. As the popularity and value of online shopping increases, manufacturers and retailers need to make sure they are part of the trend in order to capture consumers,” said Gilbert.

Online sales of home improvement products have grown 16 percent in the 12 months ending August 2011 according to NPD. In addition, 39 percent of home improvement sales were researched online beforehand.

While overall sales of home improvement products are still showing declines year over year, there is subtle growth emerging in some categories. Despite the uneven economic recovery, lighting and electrical category, fans, hand tools, and lawn and garden products are all heading in a positive direction.

“Understanding the industry, the consumers, and the competition is as important as ever. Putting the basics to work, along with an in-depth knowledge of what is happening in the home improvement market, will help manufacturers and retailers navigate their way through this still, uncertain time,” ended Gilbert.

TV, online to remain strong in 2012 slowdown

MagnaGlobal has released its updated 2011 US Media Owners Advertising Revenue Forecast, which remains unchanged at 1.6% growth, including the impact of political and Olympics (P&O) advertising. Magna still expects media suppliers to generate $173.5 billion of ad revenues in 2011. However, due to persistent weakness in the US economy, the 2012 growth forecast has been revised down from 4.8% to 2.9%–including P&O.  A slowdown in real personal consumption expenditures, manufacturing activity, and ongoing problems in the labor and housing markets all contribute to the revised outlook.

Excluding direct marketing components, the revenue growth of core media categories is estimated at 2.9% in 2011 and 4.3% in 2012.

For the Local Mass Media category (local Radio, local TV, local Newspapers and Outdoor media), declines are expected through the second half of 2011 and into 2012. They now expect this segment to decline -1.1% in 2011 and -0.4% in 2012, driven primarily by weakness in Newspapers (-5.5%), while Radio will be flat (-0.4%), and Outdoor should grow 4.2% in 2011 and 4.5% in 2012.

TV will be the fastest growing medium after Online in 2012, with ad revenues increasing 7.1% compared with Online’s 11.6%. Magna believes the 2012 Elections and the Summer Olympics will generate incremental revenue of $3.1 billion for television: $2.5 billion in political advertising (the highest spending ever, mostly on local broadcast television) and $633 million around the London Olympics (up 5.5% compared with Beijing 2008, and primarily fuelling National Broadcast TV revenues).

Under the current expectations of a slow-but-positive economic recovery in 2012, media suppliers’ advertising revenues will continue to recover from the severe recession of 2008-2009. MagnaGlobal expects revenues to reach $178.5 billion in 2012, which is still significantly less than the pre-recession level of 2007 ($206.1 billion).

Direct Media is exhibiting an increasing discrepancy between traditional activities (Directories and Direct Mail) and digital (Internet Yellow Pages, Paid Search, Lead Generation). Traditional direct media remains significant ($26.2 billion in 2011), but it is increasingly challenged by digital alternatives. Digital direct media, on the other hand, continues to outperform. Paid Search growth has accelerated this year to 21.7%, and is expected to maintain double-digit growth in 2012 (13.0%). Recent algorithm improvements have helped accelerate cost-per-click trends and have led brands to rely more heavily on search engine marketing and search engine optimization. So, for 2011, they now expect $31.1 billion in total online ad spend, up 19.5% vs. 2010.

3 myths about flyers,freebies and giveaways

Handouts, giveaways, and freebies are classic word of mouth triggers — something that inspires someone to tell a friend about you. But most aren’t worth talking about. When creating yours, here are three myths to keep in mind:

1. It’s about sales, sales, sales!

A great handout is designed to get shared, not to hit people over the head with a salesy message. You want to avoid being the classic Mitch Hedberg joke: “When someone hands you a flyer, it’s like they’re saying, ‘Here, you throw this away.’” Don’t bother creating a handout until you have a good answer to the question, “What about this would make someone want to share it with a friend?”

2. Everyone loves our logo

It’s true, for some iconic brands, fans go out of their way to wear their logos like tribal badges. But, unless you’ve earned the following of Apple, Harley, or Nike, you’re probably not quite there yet. Take another look at your design and see if there’s a chance to make your branding a little more subtle — and as a result, a much more usable word of mouth trigger.

3. Nobody keeps them anyways

Here’s a self-fulfilling prophecy: Since nobody keeps the swag and handouts we give away, we should make them as cheap as possible. But we’re betting you’ve got something now — a great reusable bag, a poster, or an impressive case study or white paper — that you’ve saved and used to spread word of mouth. It’s like any form of marketing: If you’re not going to make it fantastic, don’t bother.

Google to Marketers: Get Better at Mobile search growth rates rivaling those on desktop

Google, which recently shared some big numbers from its mobile advertising business, has some advice for marketers hoping to join in its success: make your mobile presence presentable, now.

“Businesses need to be ready for mobile as soon as they can, particularly this holiday season,” said Surojit Chatterjee, Google’s lead product manager for mobile search ads. “You need to have a mobile site irrespective of whether you think people will actually make purchases from it. How good your site looks on mobile determines how people think about your business.”

Even though mobile advertising is still in early days, he said, mobile search volume is growing at a rapid clip. Over the past two years, Google has seen mobile search queriesgrow fivefold—a growth rate he compared to the early days ofdesktop search.

According to research firm Forrester, while 13 percent of the U.S. population searched with a mobile device in 2010 (90 percent with Google), mobile searchers will account for 28 percent of the U.S. population by 2015.

Early experiences now can have lasting consequences, Chatterjee said. Citing analysis from Gomez, another research firm, he said that 60 percent of users indicated they would be unlikely to return to a mobile site if they had trouble accessing it once and 40 percent said they would actually visit a competitor’s site. Beyond that, 63 percent said they would be less likely to buy from the same company through other channels (online or in the store).

“Users are looking at the mobile site to make conclusions about the business as a whole,” Chatterjee said.

Given the increasing number of smartphone users, he said as the holidays approach it will be ever more likely that consumers will try to reach marketers on the go.

This holiday season, Google expects that 44 percent of total searches for last minute gifts and store locator terms will be from mobile devices.

While Google has a clear lead in search now (on mobile and desktop), some industry watchers have wondered whether the search giant can maintain its top position as more consumers transition to mobile devices.

Its earnings report earlier this month, however, gave Wall Street a reason to have some confidence in CEO Larry Page’s belief that mobile search could be as big for Google (if not bigger) than desktop search.

In a rare move, the company broke out revenue from mobile advertising and said it was on track to bank more than $2.5 billion in that category in the coming year, and grew twofold in the last year.

Chatterjee said its success comes from building specifically for the new medium and catering to user behavior on the platform. For example, leveraging research that users tend to act more quickly after a mobile search, Google recently launched new ad formats that let users download apps from a mobile ad or reach a specific destination with a mobile app they already have on their phone.

A user searching for a pair of boots from her mobile phone, for example, can now go directly from an ad to a shopping app on her phone, so that she can more easily complete a purchase.

Other mobile features capitalize on the interest in local information—according to Google, 40 percent of mobile searches on Google are related to location. Two years ago, the company released a click-to-call feature that lets smartphone users call a business directly from an ad. This month, Google announced that proximity to a business would be a factor in mobile search ads ranking.

“We are building specifically for the medium,” Chatterjee said. “We are really, as an industry, speaking to the mobile user and taking into the account the signals we have on mobile phones, the constraints on mobile phones and the user behavior trends on mobile phones.”

Study : Baby Boomers set to downshift

LifeGoesStrong.com and the Associated Press collaborated on another study that looked at housing and living preferences of Baby Boomers as they transition from parents with live-in children to empty-nesters.
One key finding of the study is that a wide majority, almost three out of four Boomers in fact, are far more likely to base decisions on where to live not on finding a hospitable retirement or older-person enclave, but rather on the proximity of the location to friends and family.

The bottom line is that only 23% expect to move out of town for retirement purposes, and only 13% expect that move to include crossing a state line.

However, that doesn’t mean the Boomers will be staying put – only 40% are looking to ride out their golden years in the same domicile in which they raised their family.

“It’s easy to understand why mid-lifers are interested in being near family and staying close to home during retirement,” said Barbara Corcoran, prominent real estate entrepreneur and newly appointed guest contributor to LifeGoesStrong.com. “It’s also important to note that most boomers currently live in a suburb, and that group is more likely to have lost money on real estate since the economic downturn began. But whether or not someone was directly impacted, the recession makes all of us more aware of the importance and comfort of a close family circle, and the value of strong home roots.”

The study found that wherever they go, and whether they buy or rent, many Boomers will be taking into account the proximity of medical care, shopping and other services.

Here are priorities of Boomers who expect to move:
* A smaller home (43%)
* An area with a different climate (30%)
* A more affordable home (25%)
* To be closer to family (15%)
* To be in a retirement community (12%)

Those that will be “fixing up the empty nest” have their own priorities – and of course many have already seen their children move out and have taken their priorities and acted upon them. Here’s a breakdown of plans for newly-emptied spaces:
* Guest bedrooms (58%)
* Home offices (39%)
* Craft rooms (28%)
* Entertainment rooms (15%)

“Given the recent housing market crunch, many boomers are recognizing they may be staying put in their current home into their retirement years,” said Corcoran. “Clearly, they’re already thinking about how to make the best possible use of the space they have. The responses in this poll show that most ‘empty nest’ remodeling corresponds to a natural shift in life stages and the priorities that change as our lives do.”

The Boomer generation came of age in a turbulent time – anybody remember the struggle between hippies and hardhats to determine the direction of the nation back in the late 1960s? That wasn’t the only thing going on of course, but in a lot of ways we seem to be right back there, as Occupy Wall Street has come together in opposition to the Tea Party.

One thing is for sure – the Boomers are still here in numbers too big to ignore – broadcasters need to be on top of how Boomers are thinking, living and consuming in their own neck of the woods – and somebody in the market is going to have to learn how to make a living advertising to this group as it ages out of the old advertising agency sweet spot that caps off at 54.

Shift in future TV habits as content goes cross-platform

 

A new study finds 54% of broadband Internet users watch TV content streamed or on an alternative platform weekly.  Non-traditional viewing now accounts for 10.8 hours a month, or 7% of total viewing time, with 149.4 hours still dedicated to traditional TV.

Horowitz Associates’ Multiplatform Content & Services 2011 says 18-34 year-olds spend substantially more time with TV content across all platforms.  Incidence of non-traditional TV viewing is higher among young adult broadband Internet users, with three-quarters (74%) of 18-34 year-olds doing so weekly— accounting for 10% of their total viewing time.  Broadband users 18-34 who watch on non-traditional platforms also spend more time with traditional TV, reporting an average of 167.7 monthly viewing hours—18+ hours more than average.

On non-traditional platforms, YouTube remains the most popular destination.  Study findings suggest, however, that TV brands developing a strong online and mobile presence can translate their success to new platforms.  ESPN is the most frequently mentioned destination for sports on the PC/laptop and on mobile devices.  CNN (closely followed by YouTube) is the main destination for news, as is HBO/HBO GO for those who view premium TV content.

As business and revenue models for non-traditional platforms evolve, the study suggests an increase in customers’ receptivity to online advertising.  Among broadband Internet users, self-reported incidence of clicking on banner and pop up ads increased by 127% since last year.

Content is content, and whomever owns it is going to get eyeballs and ad support for it, regardless of the way it is distributed. Many of the spots created for traditional TV are the same spots that roll into mobile and online TV programming. The money still gets spent on the traditional network and production company content holders, many of which are current networks that have migrated programming online. The losers in this migration may well be the cable operators and satellite companies from folks cutting the cord. For instance, Time Warner Cable just lost 128,000 video subscribers in its residential services in Q3.

Getting a Clearer Picture of the Digital Consumer and Your Customer

Most marketers and advertisers still don’t have a clear view of customer behavior. For every metric related to click-throughs, conversions and engagement, much of the data does not present a unified view of the customer. Instead, decisions are being made based on separate and distinct actions.

Consider the number of touchpoints a consumer has with a typical brand. Are they finding information or interacting with the brand on its website, via its Facebook page, on its Twitter feed, using a Groupon deal or through a mobile app? What about an in-person visit to a store or a call to customer service?

The challenge for marketers is not to track this data—they already do—but to aggregate it so they get a consistent view across all online channels and also account for offline behavior.

In fact, many marketers who believe they’re making decisions based on a unified view don’t
really have one. A survey from IBM found that among marketers that said they had an integrated view of customer behavior, only 30 percent were viewing mobile behavior and just 34 percent were looking at social media behavior.

The industry should continue to go toward enhanced audience data,  Offline data should begin to play a bigger role.”

No place is this holistic view more crucial than the retail industry, where customers may exist across almost every online and offline channel. In her keynote at the Shop.org Annual Summit in Boston, Stephanie Tilenius, VP of commerce for Google, said that for retail, “The lines between online and offline are going to blur and become one…The addition of the smartphone and new technology like geo-targeting and near field communication technology is going to enable new dialogue between retailers and their customers—much more of a one-on-one dialogue.”

The growth of smartphones and tablets is further muddying how advertisers and brands reach consumers, since much of the action mobile users take is done in an “offline” environment. For example, Nielsen found that roughly 40 percent of smartphone and tablet owners use their devices daily while watching TV. What are they doing? Checking email was the top activity, followed by surfing for unrelated information, and visiting social networks. Interestingly, these actions were done consistently during programs and during commercials.

Which is one reason apps related to TV shows have seen solid results on mobile devices. HBO, for example, created a rich media mobile ad campaign to promote the premiere of the third season of True Blood. The ad, developed by Medialets, was placed in iPhone apps from Flixster, Variety and inventory on Jumptap’s mobile ad network. The apps were populated with bloody fingerprints, which led to the messaging for the show. Both auto-expand and user-expand versions of the ad ran, and despite it being an interruptive experience, 7.9 percent of users watched the video in the auto-expand version, and 2.9 percent who received the user-initiated ad watched the trailer.

Watching buyer behavior

A clearer picture of how mobile and offline behaviors are beginning to merge comes from Tesco, the global supermarket chain. In South Korea, Tesco rolled out a virtual supermarket in the Seoul subway system. The pillars and screen doors of the Sonreung station became virtual displays of more than 500 of the market’s most popular products, including milk, apples, pet food and stationery. Commuters could scan the QR code beneath the desired item into their smartphones and the items would be delivered directly to their homes.

In fact, buying behavior is not just a multichannel issue, but the full decision-making process typically crosses between online and offline resources. A 2011 analysis that examines consumer behavior during the purchase path;  Smart consumers, they note, move frequently between online and offline options during research, decision-making and purchase.

Consider, for example, what consumers told them about shopping for clothing and footwear. Since it is mostly about look and feel, “going to a store to look at products and try them on is the most helpful thing people do.” However, they will go to the manufacturer’s website to see what is available, and once a purchase decision is made, they will use a price comparison engine to get the best price. Issues such as “speaking to specialized sales personnel” have lost favor, since many customers feel they have more expertise than the staff, they noted.

Other companies are looking to move offline behavior online in an effort to get a clearer measure of what customers are doing. It’s old hat for stores to ask for a customer’s email address at the moment of sale, or to have a place for customers to sign up for special offers. Today, these same stores are turning to mobile devices to empower their customers to share their experiences because these engagements can be tracked. “The mobile device is increasingly blurring the lines between online and offline integration,” said the CEO of a frozen dessert chain. “We are actively working on innovating mobile technologies that will allow our customer to engage online as part of the in-store experience.”

At Lucky Brand Jeans, online and offline are integrated to provide more of a unified view. The chain operates more than 170 retail stores across the U.S., and it also operates a well-trafficked webstore. Yet its customers exhibit different behaviors depending on which segment they come from, according to Charlie Cole, Lucky Brand. The company has an email list of 1.1 million names, of which more than half are verified Lucky Brand purchasers. Cole notes that 500,000 of the names are from people who typically buy in-store, and 100,000 buy only online. Offers vary depending on that buying behavior–it would be silly to tempt an in-store buyer with free shipping, for example. “There’s surprisingly little cross-over,” Cole says. “People are creatures of habit. I don’t want to pound them with offers [that are not appropriate].”

In-store customers can be notified of specials via email, and on the flip side, Lucky Brand also wants to be sure to have in-store offers that can be delivered in-person to online buyers. Lucky Brand is able to identify online customers if they make a purchase in a brick-and-mortar store (based on CRM data), and can provide them with offers that can be redeemed online at the point of sale. “We have some online exclusives such as shoes and we will give an offer such as free shipping at the point of register to shop for those exclusives online,” Cole says. The key, he notes, is to maximize the value and service given to these cross-channel customers, who are Lucky Brand’s most valuable.

Lucky Brand also tries to segment its offers based on other online and offline behavior metrics. For example, customers that buy its jeans at full price behave quite differently from those who only respond to discounts. The company is willing to retarget full price shoppers who have visted its site, but does not do this when a person is identified as a discount purchaser. “It’s really about pushing someone across the finish line,” says Cole.

Ultimately, it all may come down to adapting Web analytics to a multichannel world. Marketers will need to think about how they are tracking offline behavior and how those actions can be incorporated into online systems, and vice versa.

40% of Tablet /Smartphone Owners Use Them While Watching TV Almost 20% searched for product information, coupons or deals while watching TV

American consumers are increasingly connected and our recent survey shows they are increasingly multitasking when it comes to multimedia.

Roughly 40 percent of tablet and smartphone owners in the U.S. used their devices daily while watching TV, while only 14 percent of eReader owners said they watched TV while using their device every day.

And what are smartphone and tablet owners doing while watching TV? Checking email. Email was the top activity for both men and women during television programming and commercial breaks. In addition, women reported engaging in social networking more than men, while men checked sports scores more often.

q2_2011-simultaneous-usage-cm11-3943

Advertisers should take note that while viewers may be splitting attention between two (or three!) screens, 19 percent of smartphone and tablet owners searched for product information and 13 percent searched for coupons or deals while the television was on.

Apple’s Siri Could Destroy Local SEO

It’s worth taking the time to learn more about the iPhone 4S’s digital ambassador Siri , as it could represent the future direction of local search engine optimization.

On the surface, Siri — the voice recognition app that allows iPhone users to control their cell phones verbally — seems like a cool party trick, sending text messages from your spoken instructions, checking the weather and setting up calendar reminders. But does this added functionality really mean the end of traditional local SEO as some experts are predicting?

In some ways, yes. The real impact of Siri isn’t just that she acts like a personal assistant. The potentially huge ramifications for local SEO come from the depth of information Siri is able to access and the range of actions she can perform.

For example, Siri can call you a cab after a night on the town by automatically processing information about local cab companies in response to the query, “Call me a cab.” Automating the search process means you never look up “cab companies in your area” in the search engines, avoiding the traditional search engine results pages and pay-per-click advertisements entirely, therefore limiting their importance and influence.


Little is known about how exactly Siri collects and processes information, although it’s reasonable to assume that the program is drawing on well-cultivated public data sources, including Google Places, Yelp and similar sites. If Siri is eventually able to pull information from third party apps — as many predict she will be — she could effectively eliminate traffic to some traditional websites. As an example, automatically checking people in to Facebook places eliminates the need to visit those places’ websites.

 And when you take into consideration that the iPhone 4S has become the company’s best-selling iPhone in just a few short weeks, due in large part to the innovative Siri technology, localbusiness owners should take note of this trend and invest time in optimizing their sites for mobile discovery.

Here’s what you need to do to make your business website as accessible as possible to Siri and related voice recognition tools:

Optimize your website for mobile. This isn’t new advice, as the rules for mobile SEO — and the idea of local SEO in general — have been around for years. But as some sources estimate that 30 percent of all searches could include a local component by 2015, it’s more important than ever to make local SEO a priority for your business.



In addition to thinking about how consumers access your website while on the go, consider whether or not Siri can access important information about your business as well. Here’s what you need to do:

  • Add a mobile site template. Having users land on a mobile version of your website willmake them much happier, and it isn’t difficult to do, as mobile-ready themes already exist for publishing platforms including WordPress, Joomla and Drupal.
  • Enhance your local SEO. Prominently feature your physical address, local phone number and operating hours on the home page of your site for maximum local SEO benefits.
  • Remove data obstructions. Yes, Flash graphics and Javascript are already “no-no’s” when it comes to mobile optimization, but also consider how easily Siri can access the information on your site. Burying pertinent information in PDFs and sub-pages could put your site at a disadvantage.

Enhance your digital presence. It’s no longer enough to simply set up profiles on Facebook and Twitter and call it a day. Instead, establish a profile on any of the following directories and review sites and encourage customers to rate your business there for maximum exposure.

• Foursquare
• Savings.com
• Retailmenot
• Judy’s Book
• Citysearch
• Superpages
• Yellow Pages

To determine which of these options are the best fit for your business, do a quick search to see which business sites in your geographic area and industry are ranking well in Google and create profiles on whichever of the following sites they’re using.

Implement microdata. If you’re savvy in the ways of SEO or have an IT manager who is you’ll want to consider adding “schema tags” to your website. Schema tags allow your site to incorporate relevant microdata — local business, address, telephone and open hours, for example — that could help Siri and the search engines process important information about your site more quickly.

While Siri on her own doesn’t necessarily spell the end of local SEO it’s worth taking note of the popularity this mobile data management system has gained in a relatively short period of time. As Siri evolves and other operating systems adopt similar technology, the businesses that benefit most will be those that best understand how their customers interact in a mobile environment and optimize their sites to engage them.

 

Yahoo’s fourth-quarter net earnings decline 5 percent

Yahoo’s fourth-quarter earnings fell 5 percent as newly minted CEO Scott Thompson acknowledged the company needed to do better, but was short on details about his plans.

The company’s fourth-quarter net earnings declined 5 percent year-over-year to $296 million, with revenue off 3 percent to $1.17 billion. And search advertising revenue dipped 3 percent year-over-year to $388 million.

Yahoo’s full-year revenue hit $5 billion, a far cry from the $6.3 billion it recorded in 2010. During the company’s earnings call Tuesday, Thompson said he’s spent “a lot of [his] time and attention”understanding the problems facing Yahoo’s display advertisingbusiness. Referring to the company’s results, Yahoo CFO TimMorse said during the earnings call, “we expected better.”

Thompson repeatedly said that it was too early to discuss how he plans to improve Yahoo’s performance. But he isolated the consumer data Yahoo holds as “the key component for driving innovation.”

“Our data may be Yahoo’s most underrated, underappreciated and underused asset,” he said.

Thompson said he aims to mine the data collected from Yahoo’s 702 million monthly unique visitors to improve the site experience for consumers, which he said would lead to more time spent on site and better results for advertisers.

Thompson and Morse downplayed the uncertainty that has dogged Yahoo throughout the fourth quarter and continues to follow the company. Morse—who took over as interim CEO after Carol Bartz’s ouster in September—termed the period “challenging” with “numerous distractions,” and Thompson said there was a lot of “commotion” surrounding the company.

Thompson’s appointment earlier this month may have settled the CEO question. ButYahoo co-founder Jerry Yang resigned from the company’s board last week, and questions persist over whether Yahoo will be sold.

As to the latter, all Thompson would say was that Yahoo “remains open to anything that’s good for our shareholders.”

U.S. auto industry recovering faster than anticipated; Automakers headed toward best annual performance in three years

The U.S. auto industry is seeing demand recover faster than anticipated, with carmakers headed toward their best annual performance in three years at sales of 12.8 million vehicles.

Consumers entered this year’s final month demanding models ranging from big pickups to luxury sedans to fuel-sipping hybrids after pushing November’s sales to the fastest monthly pace since the government’s “cash for clunkers” trade-in program in August 2009. General Motors Co. (GM) and Chrysler Group LLC, two years removed from bankruptcy, have been taking share from disaster-stricken Toyota Motor Corp. and Honda Motor Co.

U.S. buyers are replacing their cars after delaying new- vehicle purchases as long as possible, and they are snapping up F-Series pickups and Prius hybrids as consumer confidence in the economy jumps. That means the automakers haven’t had to resort to fire-sale prices to goose demand.

“The industry has managed production levels to where demand was this year and didn’t get ahead of itself,” said Jeff Schuster, a Troy, Michigan-based analyst for LMC Automotive. “With inventory now being replenished, it’s not a situation where we’re seeing too much production or seeing heavy incentive use.”

Spending on marketing promotions averaged less than $2,700 a vehicle throughout the industry, down about $74 from a year ago, according to LMC and J.D. Power & Associates.

Consumer confidence surged in November by the most in more than eight years, and the portion of consumers planning to buy a new vehicle within six months climbed to the highest since April, data from The Conference Board showed Nov. 29.

The average age of cars and light trucks on the road today has risen to 10.6 years old, Jenny Lin, Ford’s senior U.S. economist, said on a Dec. 1 conference call.

“We are going to see more and more of this pent-up demand realized,” Lin told analysts and reporters.

She cited declining gasoline prices for providing “relief” to consumers, who responded with purchases of sport- utility vehicles and pickups. Sales of Dearborn, Michigan-based Ford’s SUVs climbed 29 percent and F-Series trucks increased 24 percent.

GM’s deliveries of Chevrolet Silverado and GMC Sierra pickups surged 34 percent and 22 percent, respectively, and Chrysler’s Jeep brand sales soared 50 percent. The average price for unleaded gasoline has dropped 71 cents, or 18 percent, to $3.28 a gallon on Dec. 3 from its peak this year on May 4, according to AAA, the nation’s largest motoring group.

Consumer demand was broad-based, as Toyota (7203) and Honda boosted deliveries of smaller vehicles, making up for production lost after March 11’s tsunami and earthquake inJapan and more recent floods in Thailand disrupted their supply chains.

Toyota, Asia’s largest automaker, reported a 49 percent increase in sales of Prius hybrid models, including its new wagon variant. Deliveries of its redesigned Camry sedan climbed 13 percent to 23,440, securing its position as the top-selling car line ahead of Nissan Motor Co.’s Altima and the Ford Fusion. Toyota slashed discounts on cars by 32 percent last month, according to researcher Autodata Corp.

Honda, the only automaker among the 10 largest that didn’t have a companywide U.S. sales increase for November, still managed to boost deliveries of Civic cars by 3.4 percent. That’s the first increase since April for the Tokyo-based automaker’s top-selling model.

Among luxury brands, Daimler AG (DAI)’s November deliveries jumped 47 percent, as the brand’s year-to-date sales closed to within 1,600 of Bayerische Motoren Werke AG (BMW)’s BMW line. The two German brands are vying to replace Toyota’s Lexus, the annual luxury champ for the last 11 years, which also lost production to the March disasters.

Industry sales accelerated to a 13.6 million seasonally adjusted annualized rate, according toWoodcliff Lake, New Jersey-based Autodata. The pace exceeded the 13.4 million average estimate of 14 analysts surveyed by Bloomberg.

“The recovery is showing a little bit more resiliency than what people feared,” Paul Ballew, chief economist for Nationwide Mutual Insurance Co., said in a Dec. 1 phone interview. “Vehicle sales are inching their way back up to 14-, and then eventually 15- and 16-million units.”

If December matches November’s 14 percent increase in industrywide deliveries, auto sales will finish the year at 12.8 million cars and light trucks. That would exceed the 12.7 million sales total that was the average estimate of 18 analysts surveyed by Bloomberg in August.

Jefferies Inc., IHS Automotive and TrueCar.com are now considering increases to their estimates for 2012 deliveries, according to analysts at the three firms.

Auto sales may total 13.5 million light vehicles next year, the average of 14 estimates compiled by Bloomberg. The industry delivered 11.6 million cars and light trucks last year, up from a 27-year low of 10.4 million in 2009.

The seasonally adjusted annualized rate for auto sales “appears to be building to a 2011 exit run-rate close to 14 million without a full Japanese supply recovery and bad economic news cycle,” Adam Jonas, a New York-based analyst for Morgan Stanley, wrote in a Dec. 1 research note. The momentum “bodes well for 2012,” he said.

Social media and cold calling

Theresa Merrill: Cold-calling is thriving —thanks in part to social media.

The parallels are impressive. Effective cold calling is about engaging the prospect with a valid business reason. Social media is about brands trying to make meaningful connections with consumers. All contact with a new business prospects is cold whether it’s via social media, networking, email or the phone.

Even with Inbound Marketing, there is always going to be a need for prospecting to develop new customers. When properly executed cold calling is an integral part of any seller’s repertoire. Leverage social media sites to support the most important aspect of cold calling—targeting and preparation.

Choose your prospects wisely. Quality of prospects equals quality of return.

Only proceed when you’ve uncovered a need/problem for which you can provide a benefit/solution.

Intelligence gathering is available across many platforms. Set-up Google alerts for target accounts. Identify news blogs/apps that cover their industry. The benefit of this is two-fold. You can warm the prospect up by sending an email mentioning something relevant to their business, while gaining knowledge on what’s key to their success. Don’t just visit their website, but immerse yourself in the blogs and press releases. Blogs are open windows into the philosophy and focus of the company. Comment on them. Share them on other social media/network sites. “Like” their company Facebook page. Follow them on Twitter. If you don’t have a LinkedIn profile, set one up immediately. LinkedIn suffers from an identity crisis—it’s not just for job seekers. It’s an invaluable source of information on individuals and their companies. Build your connections, but even without many connections there’s much to gain. Join LinkedIn Groups—there’s a group for every type of business and business concept. Don’t limit yourself to ones in your industry, but join ones that your target accounts might belong to. Ask engaging questions and use this as an opportunity to showcase your business expertise.

Remember social media is about “giving to get.” Share your beliefs and people that value them will connect. Follow companies on LinkedIn. You’ll see who in your network is connected to them and gain access to activity updates that provide valuable information about internal and strategic moves. Follow individuals, you’ve targeted.

Once armed with the knowledge as to what benefit you can provide this prospect, send an InMail or ask a mutual connection to introduce you. InMail is an under-utilized tool on LinkedIn, due to a fear of intruding on someone’s privacy (cold calling).

With all the talk about Social media being the new cold calling, one thing holds true for both—executed poorly they can be a enormous waste of time. By doing your homework, proceeding with a plan and integrating the two platforms into your total marketing mix they will help you, and your sellers, achieve your new business goals.

GOOD NEWS FOR BROADCAST TV

Big Four Networks are up in viewers

Adults 18-49 rating is up 2 percent for the new season

Dec 7, 2011

The Big Four networks are heading into January with a chance to do something they have not done in more than a decade: Grow their collective audience.

Season to date, ABC, CBS, Fox and NBC’s combined rating among adults 18-49 is up very slightly over last year.

If the networks can hold onto those gains through May, it would mark the first time since the 1999-2000 season that their ratings have grown year to year.

Eleven weeks into the season the Big Four together are averaging a 12.1 rating, according to Nielsen, up 2 percent over an 11.9 at this point last year.

The bulk of those gains have come from Fox, which is tied for first place with CBS this fall with a 3.4 rating, 13 percent better than the same point last year.

CBS is also up 3 percent. ABC is even to last year with a 2.8, good for third place.

NBC is the only network to see ratings declines, and even with all its woes, it’s only down 7 percent, from a 2.8 to a 2.6.

Of course there are still five more months in this season, and there’s no guarantee the networks will be able to hold their current ratings.

NBC will drop come February, once “Sunday Night Football” goes off the air, but those losses could be offset somewhat by Fox, which usually surges once “American Idol” returns in January.

ABC and CBS have been steady all fall, and both have at least one highly anticipated drama slated for midseason, though buzz doesn’t always translate into ratings.

The last time Big Four ratings rose for the season, there was an obvious reason: The huge success of “Who Wants to be a Millionaire,” the smash hit that lifted ABC by 8 percent over the previous season.

This year it’s no one show that has pushed up ratings, though CBS’s “2 Broke Girls,” Fox’s “New Girl” and ABC’s “Once Upon a Time” are doing better than any of last year’s new shows.

Instead it’s strong ratings from the World Series and favorable comparisons to a weak fall 2010 that have led to the gains.

***
In broadcast ratings for the week ended Dec. 4:

Among adults 18-49, Fox was first for the week with a 3.0 average rating and an 8 share, followed by NBC at 2.3/6, CBS at 2.2/6, ABC at 1.8/5, Univision at 1.4/4, Telemundo and CW at 0.6/2, ION and TeleFutura at 0.3/1 and Azteca and Estrella at 0.1/0.

Top five English-language Big Five shows (18-49s): Tie-1. Fox’s “The OT” and NBC’s “Sunday Night Football” 7.4; 3. CBS’s “Victoria’s Secret Fashion Show” 4.6; 4. NBC’s “Football Night in America” 4.1; Tie-5. CBS’s “Rudolph the Red-Nosed Reindeer” and Fox’s “The Simpsons” 4.0.

Top five English-language Big Five shows (total viewers): 1. Fox’s “The OT” 19.39 million; 2. NBC’s “Sunday Night Football” 18.90 million; 3. CBS’s “NCIS” 13.37 million; 4. CBS’s “Rudolph the Red-Nosed Reindeer” 12.64 million; 5. CBS’s “60 Minutes” 11.88 million.

Top five time-shifted English-language Big Five shows (18-49s, by Live+SD versus Live+7 playback, week ended Nov. 20): 1. ABC’s “Modern Family” 2.4 increase (up 42.9 percent); 2. Fox’s “House” 1.6 increase (up 64.0 percent); 3. CBS’s “The Big Bang Theory” 1.5 increase (up 28.3 percent); 4. CBS’s “Two and a Half Men” 1.5 increase (up 27.8 percent); 5. Fox’s “New Girl” 1.5 increase (up 42.9 percent).

Show on the rise: Fox’s “The X Factor,” Wednesday 8 p.m. The episode averaged a 3.7 among 18-49s, up 15 percent from the previous week’s edition (which aired on Tuesday due to Thanksgiving).

Show on the decline: ABC’s “You Deserve It,” Monday 9 p.m. The limited-run game show posted a 1.4 in 18-49s, down 18 percent from a 1.7 the previous week.

The Remarkable Evolution of Black Friday

Although the term first originated in the 1960s, it wasn’t until 2005 that Black Friday consistently became the busiest shopping day of the year. It’s nearly impossible to turn on your television on Thanksgiving Day without finding multiple news reports about shoppers camping out in the cold, in an attempt to be first-in-line for upcoming sales. A few explanations for this might be that it’s the official start of the countdown to the Christmas holiday. Many shoppers with long gift lists likely chose that day originally, just to get a head start on holiday shopping.

Furthermore, employers often give their employees the day after Thanksgiving off from work, which significantly increases the potential number of shoppers for that day. Once the holiday took off, retailers like Sears, Aeropostale, and Kmart began their holiday sales as early as Thanksgiving morning. The popular retail store Forever21 also took an unconventional approach to the holiday by beginning its sales on Friday and running into 2:00 a.m. Saturday morning. With the recent popularity of online shopping, the Black Friday holiday has extended even further for companies all across the globe.

Last year, the National Retail Federation (NRF) reported that 212 million individuals participated in the Black Friday shopping extravaganza, spending an estimated $45 billion, or $365 per person. This figure rose 6% compared with that of 2009. The increasing popularity and availability of online shopping can take some of the credit for these rising statistics, since an NRF study revealed that 33.6% of consumers reported to shop online on Black Friday in 2010. The NRF has taken into account a survey of opinions to determine the outcome of Black Friday for 2011. It is predicted that sales for the holiday season will rise into the low single digits; however, Internet-based sales, as opposed to in-store sales, are expected to take “a bigger share of the total retailing pie.”

The growth in online shopping popularity is likely attributed to modern advances in technology, which makes online shopping more accessible than ever for consumers. Shoppers can purchase items right from their tablets and mobile devices, and ensure the lowest price through the use of multiple Black Friday-specific apps. Since the shopper has the advantage of comparing prices right from their mobile devices in the store, retailers are offering especially competitive prices this year to ensure a successful sales holiday.

Black Friday cameras, as usual, will likely experience hot sales, with the promotion of a few amazing deals on popular Sony and Canon brand cameras. Look for deals posted on the companies’ Facebook pages and Twitter feeds. Deals like these are commonplace on Black Friday this year, and with the introduction of tablets and mobile apps, shoppers can verify that the discounted price truly is a steal.

Apple Devices Dominate Mobile Online Shopping

The holiday season came a little early for Apple this year, but it’s not as if the company didn’t already know what it was getting. New statistics released this week from retail analysis firm RichRelevance indicate that iPads and iPhones are the top mobile devices that consumers use to make retail purchases.

By just how much, you ask? According to RichRelevance, 92 percent of all “online non-desktop sales” came from an iOS-friendly device during December. Better still (for retailers), those using their iPhones, iPads, and other iOS devices to shop online spent more, on average, than those shopping via other mobile platforms like Android: $123 for iOS devices versus $101 for Android devices. Even though desktop-based sales crushed mobile-based purchases in volume, the average order value of these purchases only reached $87.

“The numbers across our retailing partners sites demonstrate just how powerful the iOS platform is enabling mobile web shopping and, while still below 5 percent in total conversion, mobile traffic’s doubling in eight months is a trend we only see accelerating,” said David Selinger, RichRelevance CEO, in a statement.

In total, mobile device-based shopping hit around 3 percent of all online sales analyzed by RichRelevance—more than 3.4 billion sales in total, stretched across the months of April to mid-December. Translated out to raw dollars, mobile-based sales jumped from 1.87 percent of all U.S. online retail spending in April to 3.74 percent in December.

As mentioned, this news should come as little surprise to Apple, as the company has already seen snapshots of iOS mobile shopping dominance. Take, for example, Black Friday: According to IBM, the iPhone and iPad ranked first and second for consumer shopping on mobile devices on Black Friday itself (5.4 percent and 4.8 percent, with Android-based devices taking up third at 4.1 percent). That totals just over 10 percent of the mobile shopping market for Apple’s flagship products.

IBM also indicated that the specific Black Friday conversion rates for the iPad—a comparison of online visits versus purchases made—were double those of the mobile device category as a whole (4.6 percent to 2.8 percent.)

Even though Android enjoys a healthy lead in overall global market share for smartphones versus the iPhone—no doubt a result of Android’s ability to exist on multiple devices versus the single iOS smartphone product line—it seems that iOS users continue to carry the day for mobile shopping.

300+ million users now access Facebook via mobile apps

Facebook is being boosted by app use, with it being reported in the last couple of days the world’s largest social network saw monthly active users of its mobile apps pass 300 million users.

Enders Analysis analyst Benedict Evans writes that the figure is correct as of 27 December, with iOS and Android applications accounting for more than two-thirds of mobile app use on the social network.

Evans uses Facebook’s own mobile data, comparing iOS, Android, BlackBerry, Windows Phone, Symbian and featurephone use, to the network’s 800 million total users and 350 million mobile users, which the company announced at the end of September.

fb Report: 300 million users now access Facebook via its mobile apps

Evans writes:

Quite unsurprisingly, these are dominated by the two platforms that have traction, iOS and Android. As Techcrunch pointed out a few days ago, Android has now passed iOS in DAUs, though Apple has passed the round 100m MAU figure.

Windows Phone remains quite insignificant, though that may change next year as Nokia’s efforts come fully on stream. Meanwhile around 70% of RIM’s 70m active users have installed the Facebook app. That’s a high penetration rate (it comes to around 50% for Android and iOS) on what is supposed to be a corporate product, pointing to RIM’s strength in messaging, but also to the way that the mix is shifting away from business customers and towards emerging markets and teenaged girls (in the UK at least).

From his breakdown, Evans deduces that 70% of mobile users and more than 30% of all users used apps to access Facebook.

Facebook has worked hard to rebuild its mobile websites, partnering with operators worldwide to offer free access to its service. The company also introduced social app discovery on its mobile website, making it almost as feature-rich as its apps.

Universal Orlando and Legoland hit capacity yesterday; Islands of Adventure turns away customers again

So many people are in Central Florida to go to the theme parks this week that several hit capacity and closed their doors Wednesday to any more visitors.

WFTV’s Skywitness 9  flew over the parks, where crowds and lines of cars were visible. WFTV.com’s interactive traffic map showed heavy traffic over I-4 and other roads near Disney World, SeaWorld and Universal Studios.

Disney World’s Magic Kingdom, Hollywood Studios and Animal Kingdom all had to turn guests away because so many people were inside.

According to independent Disney World travel sitetouringplans.com, Wednesday’s crowd levels are in the top 10 percent of all days all year, with each park forecasted between 9.7 and 10 on a 10-point scale –with hour-plus waits at many of the most popular attractions.

Universal Orlando also had to refuse people from getting into Islands of Adventure, and the new Legoland in Winter Haven hit capacity as well, posting on their Facebook page, “In order to ensure guests of LEGOLAND Florida have an enjoyable day with their families, the park is no longer admitting additional guests.”

Builders, Realtors see signs of hope in Volusia-Flagler housing market

12/30/11

2012 highlights

Real estate professionals think 2012 will show a modest improvement from 2011. Here are some highlights:

Foreclosure inventory could still be heavy for the next five years, but most people don’t foresee lenders releasing a “shadow inventory” and flooding the market.

December has been better than usual, and homebuilders think that mild momentum will carry into the new year.

Home inventory has plummeted in the Daytona Beach region compared to last year, falling 42 percent. Expect that to continue.

Builders are seeing signs of life. One Volusia County builder expects to construct 45 to 50 homes in 2012, up from 34 in 2011 and 23 in 2010.

SOURCES: News-Journal research; Daytona Beach Area Association of Realtors

DAYTONA BEACH — After suffering through one of the worst economic downturns in modern memory, local home builders and real estate professionals foresee a modest turnaround in 2012.

It’s already started with a better-than-usual December, which traditionally is a slow time of year for new contracts.

The Volusia-Flagler housing market has been in shambles since 2007, when foreclosures overcame the area and home prices fell drastically. Flagler County has periodically had the highest number of foreclosure filings in the state, and Volusia County has been near the top.

While the inventory of homes for sale is still high, real estate professionals believe 2012 will improve, if only a bit.

“We are seeing a lot more people coming in, more than in the past three or four years,” said Luis Medeiros, president of Palm Coast-based custom builder New Coastal Homes.

“We just had three sales in December for next year starts,” he said. “For me, that’s great in the Palm Coast market.”

For the past couple of years, Medeiros has been building just three or four homes a year, so going into the year with three contracts is uplifting.

“The people looking to buy a home are looking at the short sales and bank-owned and not liking what’s available. They’re looking at a $150,000 home that needs work. But, for a little more they could get a new home with everything they want,” Medeiros said.

Even so, Karen Radcliff, president of the Flagler County Association of Realtors, said she expects foreclosures and short sale homes in the county to be “pretty heavy in the market for three to five years because we have job issues and unemployment issues.”

But the area’s foreclosure inventory isn’t as big as it was during the peak of 2008 and 2009, and she doesn’t expect a “shadow inventory” of foreclosed homes to overwhelm the market.

Flagler County has generally seen a drop in new foreclosures in 2011 compared to 2010, although new filings in November increased, according to the most recent data available from research group RealtyTrac.

Mark Dougherty, executive director of the Daytona Beach Area Association of Realtors, doesn’t predict any dramatic increase in residential sale prices, but thinks prices will start to flatten, barring a slew of foreclosed homes hitting the market.

“The bread and butter inventory, two- and three-bedroom single-family homes, those properties are probably going to stabilize,” he said. “And that’s the typical thing because there are way more of those than anything else.”

SIGNS OF IMPROVEMENT

Median residential sales prices for the Daytona Beach Area Association of Realtors fell more than 8 percent last month compared to November 2010, from $120,000 to $110,000. But two large indicators of improvement — inventory of homes for sale and pending sales — were much better.

There was an inventory of 2,443 homes for sale in November, a 42 percent drop from the 4,219 a year earlier, according to the Daytona Beach Realtors group. And pending sales, which measure signed real estate contracts, increased 70 percent, from 246 in November 2010 to 418 a year later.

West Volusia is also holding out hope for 2012.

Chris Bowley, planning and development services director for Deltona, said he’s seen an increase in building permit applications during the last three months. Most are for single-family houses built on vacant lots scattered throughout the city.

In the Live Oak Estates and Arbor Ridge subdivisions, though, there is some building going on and more is expected.

“During the downturn there wasn’t much activity there,” Bowley said of Live Oak Estates. “But now there’s new home construction. Same thing goes for Arbor Ridge.”

Bob Fitzsimmons with Gallery Homes of DeLand also is seeing a “more active winter.

“I’m working with three clients right now. That excites me because this is usually a slow time before mid-January, when things pick up again,” Fitzsimmons said.

Low land prices, down 50 to 60 percent from the peak period, and more buyers confident that the market has bottomed out, are driving the recent activity, Fitzsimmons said.

HIGH PRICED CONDOS GAIN

The condo market in 2011 reported strong gains in high-price sales. Scott Nieminen, a broker at Palm Coast-based Realty Executives and the 2010 president of the Flagler County Association of Realtors, expects a small appreciation in prices next year, started by an increase in higher-priced homes.

“Gated communities, golf courses, waterfront – those things have a tendency to see it first, but across the board it’ll be an improvement,” he said.

Jim Paytas, of Daytona Beach-based Paytas Homes, built 34 homes in East Volusia in 2011, up from 23 the previous year.

However, before the bust, Paytas Homes was building 100 houses a year.

“There is a renewed sense of urgency I’ve not seen since 2005. Prices have stabilized and buyers have to close on the lots now while prices are low and before they’re gone,” he said. “Following the recent trend, we could see 45 to 50 new homes in 2012. It’s not substantial, but better than what we’ve been doing.”

Are Daily Deal Sites a Good Deal for Small Businesses?

A new report from Cambridge, Mass.-based Forrester Research indicates that the majority of consumers who redeem prepaid vouchers already were customers of the brand or business that was offering the deal. For clothing and shoe stores, this number is as high as 80 percent, according to the report.

Meanwhile, more than half of the customers surveyed for the report, called “Myths And Truths About Daily Deals,” say they would have made a purchase regardless of having the coupon voucher.

Another big issue is exactly how many people are paying attention to these deal offers, especially over email. “While Groupon vaunts the size of its ‘subscriber base,’ all evidence points to the medium becoming less important,” says Forrester vice president and senior analyst Sucharita Mulpuru, who co-authored the report. “A significant portion of people who once subscribed to these emails no longer do, and many simply don’t want to because they have no need for more clutter in their inboxes.”

Netflix 15th most-watched U.S. TV “network.” Service has “more than twice the viewer hours of CNN, Discovery, MSNBC and BET, would be No. 2 in homes that subscribe to Netflix — second only to CBS.

According to an analysis of newly released figures by BTIG analyst Richard Greenfield, Netflix would be the 15th most-watched U.S. TV “network.” The video streaming service has “more than twice the viewer hours of CNN, Discovery, MSNBC and BET,” said Greenfield, who added it would be No. 2 in homes that subscribe to Netflix — second only to CBS.

His data is based on recent news from Netflix that its subscribers streamed more than 2 billion hours of TV shows and movies in Q4.

“Netflix must be eating into traditional TV viewing time,” Greenfield said “Netflix streaming usage is exploding and is far, far bigger than traditional media executives give it credit for. Netflix is actually number 15 with 666 million hours monthly or 2 billion per quarter — our prior analysis estimated number 25.”

Looking at Nielsen data for TV networks, Greenfield highlighted that after the top 15 channels, monthly viewing hours are below 500 million. “With an estimated 667 million hours of viewership per month in October, Netflix would rank as the 15th most-watched ‘network’,” he said. “Netflix had more hours of viewing in October than FX, HGTV and History…pretty amazing, given that Netflix is only in 21 million homes.”

However, Greenfield also said that looking at aggregate TV viewing in the 100 million pay TV homes, Netflix represents only 2.4% of total time spent watching: “While Netflix may be very popular in Netflix homes, it is rather meaningless when put into the context of total television viewing.”

Consumers still wary going into 2012

The Harris Poll has made its annual beginning-of-the-year assessment of the financial plans and sentiments of Americans, and it finds continued uneasiness. This is despite a recent spate of confidence polls that show at least mild improvement. However, a bright spot in the study is the finding that fewer consumers will be looking to decrease their household spending than last year.

The most general result concerned overall expectations for the economy in 2012. Almost half expect things to remain about the same – 47%, to be exact. Pessimists unfortunately outnumber optimists by a 29%-23% margin.

Looked at by age demographic, the older respondents were the most pessimistic. The mature 66+ crowd actually managed to be the most optimistic AND the most pessimistic. The chart below tells the tale. As a point of age reference, Echo Boomers are 18-34, Gen-Xers are 35-46, Boomers are 47-65 and Matures are 66+.

Expectations Echo GenX Boomer Mature Total
Improve 23 22 23 28 23
Stay the same 55 51 42 38 47
Get worse 22 27 35 34 29
Source: The Harris Poll

One thing is clear from the survey – the economic collapse experienced in 2008 has had a lasting impact on consumer money-handling habits. Gone are the days when revolving credit accounts and home refinancing kept stock moving off of American retail shelves and out of American warehouses. Consumers are still more apt to pay off rather than incur debt, and accumulating savings is much more top-of-mind than it was before the fall of 2008.

“There has been plenty of reporting on Americans’ financial concerns for the past several years,” commented THP as it scanned the downward trends. “However, looking at Americans’ current expectations for both their own finances as well as for the state of the nation, it seems that the bad news may not be over yet.”

The number we particularly like to see in the latest Harris survey is 45% — that is the percentage of respondents looking to cut overall household spending in 2012. We’d like to see it much lower, but it still beats the 49% of thrift-oriented respondents from the 2010 survey and is much better than the 55% in 2009.
The percentage of respondents looking to pay down debt, invest more in savings, cut up a credit card (or two or three), sock money away for retirement and invest in home improvement have all been trending down over the three year period.

Harris did note that the decrease in houses looking to cut expenses was a positive sign.

Here are the three year trends in a number of fiscal categories:

Fiscal action 2009% 2010% 2011%
Cut household spending 55 49 45
Pay down debt 45 41 39
Save more 42 40 36
Drop credit card(s) 24 22 16
Save for retirement 21 22 16
Home improvements 14 13 11
Invest more safely 9 8 5
Refinance mortgage 5 6 5
Open home equity credit 2 2 1
Other 6 6 5
Nothing different 16 18 23
Source: The Harris Poll

The 2011 results from the chart above were also provided by age demo. It should not come as a surprise that the Mature group results can almost be tossed – if members of this group have not made a few investments into retirement by now, for example, there isn’t a whole lot of time left to catch up – and indeed, very few cited this as a 2012 priority, and in almost all categories, they were far below the national average.

The middle two groups are more likely to cut spending and eliminate debt, while the younger set is more interested in filling up savings accounts. Here are the full results:

Fiscal action Echo GenX Boomer Mature
Cut household spending 42 49 49 38
Pay down debt 35 49 44 24
Save more 47 38 34 18
Drop credit card(s) 13 16 21 12
Save for retirement 15 18 21 5
Home improvements 8 9 15 9
Invest more safely 4 7 6 4
Refinance mortgage 3 9 4 2
Open home equity credit 0 1 1 1
Other 6 5 4 2
Nothing different 21 17 21 39
Source: The Harris Poll

Harris summed up its results, saying, “Americans continue to face difficult economic times and the New Year may not provide a totally clean slate financially, but there are some bright spots when Americans discuss their expectations. Fewer U.S. adults now say that they will cut back their household spending in the year ahead. This is positive news for the millions who rely on the retail, dining and entertainment industries, and may be small sign that Americans are ready to move on from the harsh times of the past several years.”

Tablets coming out in full force at CES

Tablet computer makers, hoping to get attention in a market dominated by Apple Inc.’s iPad, are using  CES, North America’s largest trade show as a coming-out party.

Tablet sales could top 100 million worldwide in 2012, GfK Boutique Research director Steve Bambridge said in a Sunday CES news conference at the Las Vegas Venetian.

Amazon is competing aggressively against Apple, especially on price. Ten-inch Wi-Fi tablets, such as the iPad, can cost $400 to $500, while most 7-inch tablets start at $300. The 7-inch Amazon Kindle Fire is priced at $200. Kindle Fire is designed to deliver content provided by Amazon while the iPad uses iTunes.

Barnes and Noble’s Nook Tablet, $99 to $249, offers similar content to the Kindle Fire, from streaming movies to downloading books and access to Facebook.

While these big-name brands have succeeded, others have faltered for a number of reasons.

Rim in Motion’s debut tablet was a bit of a disappointment as the company ended up taking a $485 million third-quarter charge due to unsold Blackberry Playbook inventory.

RIM recently slashed PlayBook prices to $299 for the device, regardless of storage capacity. It comes with 16, 32 or 64 gigabytes. The temporary price cut ends Feb. 4, according to the Blackberry online store.

The HP TouchPad was pulled within weeks of its launch because of slow sales blamed in part on its $400 to $500 price. On the HP website it’s listed as “sold out,” though a 9.7-inch Wi-Fi version with 16 gigabytes sells for $269.88 on eBay.

While there have been hits and misses, more new tablets are coming. At CES, which officially starts Tuesday, Toshiba will unveil its newest and thinnest Tablet at 588 grams (slightly more than a 20 ounce bottle of soda), 10.1 inches wide and 7 mm thick, according to a company statement.

Asus will offer something a bit different with the Eee Pad Slider, featuring a pullout keyboard. Archos just released an 8-inch tablet, while Samsung is adding to its Galaxy lineup with an 8.9-inch Galaxy Tab.

For Velocity Micro it’s a pair of successors to its budget Cruz T408 tablet. The T507 Android 4.0 slate includes a 7-inch screen, a front facing camera and a sub-$150 price.

Meanwhile, the price for the larger 9.7-inch Cruz T510 tablet has not yet been announced.

“These products are an affirmation of what our focus will be for 2012 … smart and affordable consumer electronic devices,” said Randy Copeland, president and CEO of Velocity Micro.

Apple doesn’t even attend the show. But a recent report by the research firm Gartner Inc. expected tablets to see an explosion in sales over the next three years, selling 60 percent as many units as PCs by 2015.

The Gartner report expected the iPad will still have almost half the market by then.

Others are less optimistic. Canaccord Gentry estimates that iPads will account for 57 percent of all tablets sold this year. That figure was expected to decrease in the coming years. Apple’s share of the tablet market in 2010 was 82 percent, which declined to 65 percent last year.

Apple is reportedly preparing both new iPads for release this year. The DigiTimes technology news website expects the new iPad 3 to launch in March, with the iPad4 shipping in October.

Here are the latest online video advertising numbers

December 29, 2011
image

Though advertisers and agencies are often increasing their investments in digital video advertising at the expense of offline/traditional branding/advertising efforts, findings from DIGIDAY and Adap.tv suggest funding also comes at the expense of current display advertising budgets.

According to a November study, advertisers were more likely to fund their online video advertising efforts from offline channels such as print and broadcast TV than their agency counterparts. Advertisers most often planned to shift budget from print (41%), while 29% said they would take dollars from broadcast TV to fund their digital video advertising efforts. Just 24% planned to pull from display.

Agencies said boosts to online video budgets would most come at the expense of display (43%), indicating a general move away from less dynamic ad formats, such as banner ads, in favor of those with greater engagement potential.

Channels Their Clients Plan to Shift Budget from to Fund Online Video Ads According to Agencies and Advertisers in North America, 2010 & 2011 (% of respondents)

In addition, 39% of agencies said they would fund video from broadcast TV budgets. Though findings appear to suggest advertisers and agencies are shifting budgets away from TV toward video ads, more than half (56%) of respondents viewed online video as a direct complement to—and not a replacement for—their TV ad programs. Just 11% looked to online video to replace their TV ads, reported eMarketer.

In the past year, both advertisers and agencies have shifted their primary video advertising objectives from brand awareness to brand engagement, perhaps suggesting marketers are moving away from viewing digital video as a mere extension of TV ads and moving toward embracing online video for its ability to more directly engage viewers in a dynamic way.

By enabling video ads with social sharing and other calls to action, marketers can use digital video as a springboard to additional online engagement on social networks, their website and even mobile apps.

Online Video Ad Objectives According to Advertisers in North America, 2010 & 2011 (% of respondents)

Mobile is a growing area of interest for video advertisers, yet publisher offerings lag brand adoption. For example, 42% of advertisers and agencies have purchased iPhone-compatible video ads, yet only 35% of publishers supported such ads. Differences for Android video ads (31% vs. 28%, respectively) and iPad ads (41% vs. 35%) were similar.

Orlando home prices drop slightly

November Home Price Index showed prices of homes in Orlando-Kissimmee-Sanford, including distressed sales, fell 1.2 percent in November 2011 compared to November 2010. Home prices also were 1.1 percent lower in October 2011 when compared with the year-earlier month.

Meanwhile, November 2011 prices were 3.6 percent lower than the year prior excluding distressed sales, and were 4.1 percent lower in October 2011 when compared with October 2010.

A month ago, the firm also reportedSeptember 2011 sales fell 2.4 percent.

Distressed sales include short sales and bank-owned property sales.

CoreLogic also reported U.S. home sales fell 1.4 percent in November, the fourth straight monthly sales decline.

FCC considering lifting cable and satellite sports blackout rule

FCC considering lifting cable and satellite sports blackout rule
Fans could soon be able to watch games on cable and satellite that have been blocked out on broadcast because the contests did not sell out. Federal Communications Commission is soliciting public comment on the possibility of striking down sports blackout rules for cable and satellite companies, following a request in November from an advocacy group to do away with the rule. The restriction has long been advocated by professional sports leagues, because it gives greater incentive to fans to buy tickets to events they couldn’t otherwise see on television. The leagues also argue that if the blackouts are removed, cable and satellite companies will gain leverage over broadcasters in retransmission rights negotiations. Broadcasters have been barred from showing contests that do not sell out since 1961, and the FCC added cable and broadcast to that rule years later at the behest of the NFL.

U.S. auto sales jumped 11 percent in January, led by huge gains at Chrysler Group and Volkswagen of America. Best January since 2008

U.S. auto sales jumped 11 percent in January, led by huge gains at Chrysler Group and Volkswagen of America.Automakers sold 913,284 light vehicles for the month, the best January since 2008. The seasonally adjusted annual selling rate was 14.2 million, which matches the cash-for-clunkers selling rate of August 2009.

Toyota Division General Manager Bob Carter said January had “a very healthy” sales pace.

“It’s significant to see 913,000 in January when much of the country typically is in a deep freeze,” he said. “We’re bullish with where the industry is going.”

Most major companies gain

Among the highlights:

– All major players posted sales gains except General Motors, which fell 6 percent from a strong January 2011 that had been buoyed by strong incentives.

– All four GM brands lost ground: Chevrolet was down 1 percent, GMC lost 10 percent, Buick 23 percent and Cadillac 29 percent.

– Chrysler Group volume jumped 44 percent to 101,149 units. The growth was led by Chrysler brand, up 81 percent.

– Hyundai-Kia Automotive gained 20 percent overall: Kia rose 28 percent and Hyundai 15 percent.

– Nissan North America sales increased 10 percent, just under the industry average overall. But after being passed by Hyundai-Kia for the No. 6 U.S. sales position, Nissan’s 79,313 light-vehicle sales gave it a 1,102-unit lead over its South Korean rival to start the year.

– American Honda gained 9 percent in January, its first year-over-year increase since April and a sign that its restocking efforts since the March earthquake and tsunami in Japan and flooding later in the year in Thailand are working.

– Toyota Motor Sales, which also had been slammed by the natural disasters last year, boosted sales 8 percent to 124,540 units. Toyota brand rose 9 percent, offsetting a 5 percent decline at Lexus.

– Ford Motor Co. increased sales 7 percent in January, with Ford division up 8 percent and Lincoln down 8 percent.

Mazda, Subaru sales rise

– Among the smaller players, Volkswagen Group sales soared 40 percent to 36,681 units, led by a 48 percent increase for the VW brand and 20 percent higher sales at Audi.

– Mazda posted an even bigger gain, up 68 percent to 23,996 vehicles.

– Subaru volume rose 21 percent, its second month of growth after a seven-month stretch of declines as it struggled to restock U.S. dealer lots after the natural disasters of last year.

– Daimler AG gained 23 percent, with 23 percent growth at Mercedes-Benz and 39 percent at Smart.

– BMW group sales rose 6 percent overall, with a 21 percent increase at Mini pumping up a more modest 3 percent gain at BMW brand.

– Other European premium brands posted increases: 31 percent for Jaguar Land Rover, 6 percent for Porsche and 4 percent for Volvo.

– Only two small Japanese automakers posted sales declines in January. Mitsubishi’s volume fell 18 percent while Suzuki tumbled 41 percent to 1,505 units.

Odds and ends

– Tough sledding for luxury: A few luxury brands outperformed the industry’s 11 percent rise in January. Land Rover jumped 41 percent, Mercedes-Benz gained 23 percent and Audi 20 percent. But Jaguar, Porsche, Acura and BMW eked out modest unit increases below the industry average. And Lexus fell 5 percent, Lincoln and Infiniti each lost 8 percent, and Cadillac tumbled 29 percent.

– The industry’s shift to greater North American production continues. U.S. sales of vehicles made in the United States, Canada and Mexico were 77.9 percent of total industry volume, up from 76.7 percent last January.

– Oddity: Audi outsold Cadillac in January, 9,354 units to 8,924. Until Cadillac can get its new XTS and ATS sedans into showrooms, it is limited to essentially three models: the CTS sedan and SRX and Escalade SUVs.

– Best-seller surprises: Compared to the 10 best-selling nameplates for 2011, January’s top 10 list has three new names. The Honda Accord and Ford Fusion dropped out, but Honda added the Civic and CR-V. And the Chevrolet Cruze got bumped by its big brother, the Chevy Impala.

– Guess who’s No. 2? One other Top 10 shakeup: The new-generation Toyota Camry, introduced in September, outsold the Chevy Silverado pickup, ousting it from its perennial No. 2 sales position behind the Ford F-series.

– Trucks bucked: January also changed the list of 2011 best-selling trucks. Out: 2011′s No. 7 GMC Sierra and No. 10 Kia Sorento. In: the Jeep Grand Cherokee at No. 7 and Nissan Rogue at No. 9.

– Cars rule in January: Cars outsold light trucks last month, 474,449 to 438,835, a 51.9/49.1 split. A year ago trucks ruled, 413,962 to 405,924, a 50.5/49.5 split.

Watch those comparables

It’s time to readjust expectations based on the most common industry sales measurement: comparing sales to performance the year before.

– Hyundai-Kia and Chrysler are coming off 2011 performances up more than a quarter, so it will take huge months for them to move the needle much this year.

– Both Toyota group and American Honda sales fell 7 percent in 2011, so posting even modest increases will look good this year.

– Sales comparisons also will be easier for Ford and GM this year because the drag of those dead or sold brands has washed out of year-ago numbers. For GM, no more year-ago sales of Pontiac, Saturn, Hummer or Saab models. Ford has no Volvos and only a wisp of Mercury sales on the 2011 blotter.

Brand Bowl 2012

This past Sunday, advertisers everywhere were tuned into the Olympics of Advertising, or what we call the Brand Bowl. Who came out victorious and who failed to impress? Here are some of the highlights if you missed it:

Which were your favorites?

See them all here 

GM’s Super Bowl commercial helped Ford

Super Bowl Ad Aftermath: Ford Boosted By GM’s Fallout?

Playing dirty might be de rigeur in politics, but it seldom helps in selling products—even dusty pickups ravaged by the apocalypse.

That might end up being GM’s tough lesson from its Super Bowl XLVI ad which, to some, spoke less about the strengths of GM products than it did attack Ford’s reputation for durability and longevity.

GM’s Super Bowl commercial helped Ford

Based on traffic and visitor data collected by the shopping and pricing site Kelley Blue Book, more visitors browsed Fordafter the GM commercial—a lot more—even though Ford didn’t have a big Super Bowl ad. Whether looking at the controversy in the days surrounding, or specifically at the window of time during and after the ad aired, Fordappeared to benefit most, if an immediate browsing or shopping of new vehicles was the goal.

Full-size pickup truck visitors on Super Bowl Sunday, 2012 – Kelley Blue Book

KBB.com data shows consumer interest in the Silverado lifting during the commercial airing, leveling off after the commercial and declining after the game, as interest in the F-150 surged, curiously. Despite the Silverado’s lift during the game, Ford’s F-150 still drew a greater share of week-over-week attention from KBB.com consumers.

In comparing consumer interest on kbb.com among the Full-size truck segment, KBB analyst Akshay Anand noted that the share of visits to the F150 surged over 26-percent week-over-week, while the Chevrolet Silverado 1500 saw a 25-percent drop in traffic during the same period.

“Looking at the data for that whole day, Ford did see some lift, and I don’t think that’s a coincidence,” said Anand.

That leads to how some might have heard the commercial…something along the lines of this: What kind of truck do you drive to the impending apocalypse? If it’s a Ford, oh you sorry sap, you’re just not going to make it.

Advertising 101: Don’t make the competing product your punchline

And that hits hard at one very important factor: brand loyalty. To many, the commercial was less a declaration of the strengths of GM products than it was the buildup to an attack on Ford’s trucks. And it may have sent Ford loyalists to their laptops and tablets to search for reassurance about Ford’s reputation, as their GM counterparts gloated and stayed on the sofa.

“Truck owners tend to be more loyal than those in any other segment,” said Anand, and when a product with that level of loyalty is mentioned negatively in an ad, argued Anand, the response is likely to be one that’s on the defensive.

Other potential explanations: Ford was mentioned bluntly and clearly right near the end of the ad, so is that somehow the name that stuck with viewers? Or does the lesson to be learned really have more to do with etiquette?

It is, after all, one of the first commercials in some time to blatantly call out a competing product without mention of a number or metric as basis.


Consumers spend on Valentine’s Day

Recession? What recession? To all appearances, consumers are going to take at least one day off from dealing with the sluggish economy and invest in making their loved ones feel loved. That’s what the National Retail Federation says, based on research provided by BigInsight. According to NRF, Valentine’s Day 2012 figures to be a record breaker.

According to NRF’s 2012 Valentine’s Day Consumer Intentions and Actions survey, conducted by BIGinsight, the total spend on the holiday is expected to come home at $17.6B.

One a person-by-person basis, celebrants are expecting to invest an average of $126.03, up from $116.21 a year ago and amounting to an increase of 8.5%. NRF says this is the highest total its ever recorded in ten years of conducting the survey.

NRF President and CEO Matthew Shay observed, “As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction. Anticipating high foot traffic in the coming weeks, retailers have replenished their inventories and will entice eager shoppers with great deals on everything from special menu items at restaurants to clothing to flowers and, of course, chocolates.”

The chief beneficiary of the spending will be those filling the role of spouse or significant other – they will be on the receiving end of an average $74.12 outlay, up from $68.98 in 2011.

Children, parents and other family members are next on the shopping list, for an average benefit of $25.25. Friends and pets are also on the shopping list, for $6.92 and $4.52 respectively.

BigInsight date found that this is one holiday where men do most of the spending – when it comes to clothing, jewelry and cards, they are expected to invest $168.74 on average, almost double the $85.76 their significant others of the female persuasion are expected to spend.

There has been an increase in the number of people planning to buy jewelry, which is rising from 17.3% to 18.9%; and gift cards are in the plans of 13.3% compared to 12.6% in 2011.

Big categories on the day remain candy, in the plans for 50.5%; flowers, mentioned by 36.0%; and an evening out, cited by 35.6%.

Jewels can look for a total payday of $4.1B; restaurateurs are expected to rake in $3.5B; florists are looking at a haul of $1.8B; candymakers can expect about $1.5B and the total spend on gift cards is expected to hit $1.1B.

“Celebrated by children who give Valentines to their teachers and classmates, family members who make sure to send greeting cards across the miles and couples who wish to show their appreciation for each other, Valentine’s Day means more than what’s simply on the surface,” said Pam Goodfellow, Consumer Insights Director at BIGinsight. “This year we could very well see some consumers searching high and low and stopping at nothing to make sure their loved ones receive the perfect gift.”

Describing the breakdown of shopping venues, NRF/BigInsight said, “Though discount stores are expected to see the most traffic (37.0%), one-third of shoppers (33.6%) will head to department stores, up from 30.5 percent last year. Online retailers will also see a nice boost from the business of love – nearly one out of five (19.3%) will shop online for gifts this Valentine’s Day, up from 18.1 percent last year. Others will shop at specialty stores (20.2%), floral shop (17.8%), jewelry stores (10.6%) and specialty clothing stores (6.6%).”


Surviving U.S. Auto Dealers may see record sales in 2012

Auto Dealers may see record sales in 2012; surviving dealers are stronger and more profitable
2/15/12Auto dealers may be racing toward a record number of sales.  A consulting firm is predicting that the dealers that survived the economic crisis may deliver more vehicles in 2012 than ever before.Urban Science is estimating that each dealer will sell an average  785 vehicles this year. That compares to only averaging 719 cars and trucks last year. They attribute the nearly ten per cent increase to pent up demand and the improving economy.

The previous record was 784 per dealership back in 2005.

The number of dealerships also grew last year, after shrinking for several years in a row. Urban Science says the dealers that survived the economic downturn are stronger and more profitable. There are now 17,767 dealerships in America.

2012 : Retailers all about Customer Interaction

In an effort to build customer engagement, capture wallet share and accelerate sales growth, retailers in 2012 will focus on a number of customer-centric functions, including IT and ecommerce investments, enhancing customer service initiatives and, building on their mobile platforms. Those findings are from a new report from the National Retail Federation (NRF) Foundation by KPMG.

Retail Horizons: Benchmarks for 2011, Forecasts for 2012,” surveyed 247 retail executives from various sectors, outlines retailers’ top strategic initiatives for 2012 including merchandising, ecommerce, store and field operations, supply chain and human capital, among others.

“Retailers are poised to enter 2012 with a renewed focus on building up and building out many of their most important operations, hoping to establish a new sense of brand loyalty with all of their customers,” said NRF President and CEO Matthew Shay. “Though customers are always a company’s top priority, customer satisfaction will get a huge facelift this year. From increasing their brand visibility through cross-channel initiatives to providing unique, personalized shopping experiences through every channel, retailers have indicated 2012 is all about the customer.”

According to the survey, nearly 67% of companies rank customer satisfaction as the top strategic initiative for 2012 and, similarly, 82% say customer service strategies will be their top priority in the coming year, up from 75% last year.

For the first time in the survey’s ten-year history, retailers’ websites or online channels eclipsed physical stores as the top channel for marketers (81% for brick-and-mortar vs. 86% online). As such, retail executives say they will invest in programs that directly resonate with today’s shopper. According to the survey, 85 will emphasize  increasing online sales, up from 83% in 2011, and 38% will have a greater focus on increasing mCommerce sales over the next year, up from 29% in 2011. Additionally, more than half (53%) of those surveyed say they will specifically focus on web personalization engines in the coming months, which includes such enhancements as location-based services and tracking methods unique to shopping habits.
To better serve mobile-savvy shoppers in their stores, retailers also stated enhancing handheld technologies, such as mobile point-of-sale, will be a core focus over the next 18 months. While 17% already use mobile POS technologies in their store, an additional 33% indicate they plan further POS investments during that timeframe.

“Compared to the past few years, retailers have turned their attention to growth acceleration, with an emphasis on improved customer engagement strategies and tactics,” said Mark Larson, KPMG’s global head of retail. “Harnessing the vast amounts of customer data they have at their disposal to create unique consumer interactions will be critical, especially as digital sales grow. Clearly the retailers who master the one-to-one customer approach, and who also leverage the full potential of e-and-mobile commerce platforms, will be in a much stronger position to gain wallet share.”

Aiming to grow that customer interaction, 45% of companies are actively developing widgets, gadgets or advanced links that can be incorporated with their social media pages, and another 41% are planning to develop these items over the next 18 months.

Other KPMG/NRF survey findings:
• Thirty-three% reported increases of greater than 5% in same store sales in 2011, up from 21% in 2010. Additionally, 63% reported gross margins greater than 40% in 2011, up from 40% in 2010
• After years of practicing cost containment, this year more than half (52%) of respondents plan to increase their IT budgets
• Nine in 10 (91%) respondents said they will focus on leadership assessment, development and succession, up from 83% in 2011. Additionally, 52% will increase associate training, up from 39% last year
• As the number of multichannel shoppers continues to grow, so will retailers’ focus on price optimization – more than one-third (35%) of respondents will focus on solidifying their price optimization technologies over the next 18 months
• Nearly six in 10 (59%) say new customer acquisition is their top strategic priority for 2012, up from 55% in 2011

RECENT STUDY RESULTS: The DVR is an advertisers friend!

Ad Avoidance and The DVR : recent study results

One of the topics  looked at in a recent study with special interest was the whole issue of ad-avoidance, not least because half the sample have the technology to avoid ads altogether, via the DVR.

In fact, one overwhelming conclusion from this study is that the DVR is used to enhance program viewing, not to avoid commercials. As a range of studies conducted last year found that PVR owners actually watch more commercials at normal speed as a result of owning the DVR. This is because only 12 per cent of their viewing was to time-shifted material (much less for younger respondents) and around 40 per cent of the commercial breaks were watched without fast forwarding. At the same time, owning a DVR appears to increase broadcast TV viewing by around 15 per cent, mainly to commercial channels, resulting in an increase in the number of commercials viewed. It is counter intuitive, but it is true, and has been supported by studies from BARB, Sky and the London Business School. The DVR is an advertisers friend!

‘Skipping’, or fast forwarding, does occur, but even the households who claim to skip most of the time only skipped ads for a small proportion of their TV viewing. Whether it is because they are aware of the short length of some breaks, they just forget they are viewing in time-shifted mode, or because they want to see the ads (quite often people fast forwarding would rewind to watch an ad that caught their eye) there seems to be no massive desire to edit out the ads.

Decades before the DVR was a glint in the eye of the electronics companies, people would often claim to leave the room when the ad break started, to make a snack  or attend to some vital chore. In our study, several respondents claimed to always get up and do something else as soon as the program credits rolled. Again, the reality does not match their claims. Even the most adamant only left the room two or three times during the four hours of their that breaks we recorded and, in total, less than 5 per cent of breaks suffered.

Study: iPad Accounts for Almost 95 % of Tablet Web Traffic

 

Aiming to get a sense for how powerful the tablet is, online advertising network Chitika looked at what devices it was serving ads to and found that it was almost exclusively Apple tablets.

For every 100 iPad impressions, Chitika is serving slightly more than one ad to a Samsung Galaxy and Asus Transformer Prime and under one ad to the Motorola Xoom, BlackBerry PlayBook and Kindle Fire. The Nook Tablet share is even lower, though clearly both the Nook and Kindle are marketed less as Web browsing devices and more as media consumption tools.

In total, the iPad accounted for more than 94 percent of ads, Chitika said.

It shows that not only are iPads outselling their rivals, but each one that is sold is also more heavily used, at least when it comes to Web surfing.

“Going forward the competition is going to be hard pressed to find a way to overthrow the seemingly omnipotent Apple,” Chitika said. “Not only do they offer a great product, they have the undying devotion of their enthusiasts.”

FEBRUARY AUTO SALES LIFT 2012 OUTLOOK

The U.S. auto industry reported a 16% sales jump in
February. In fact, sales were at their fastest pace in four years.
Automakers sold 1,149,396 cars and light trucks last
month. Quoting Autodata Corp, WSJ.com reports the
annualized pace of sales climbed last
month to 15.1 million vehicles, a level the
industry hasn’t seen since February 2008.
Chrysler led the way as sales rose
40% in February to 133,521 vehicles.
Chrysler company truck sales rose 21%
from a year earlier, while car sales more
than doubled.
Despite rising gas prices, Ford trucks
sustained the biggest increase, up 20.6%
from February 2011. Fuel-efficient Ecoboost
engines made up 43% of F-150’s sold to
individual customers. And after several months of year-overyear declines, sales of the Ford Focus more than doubled.
Ford’s Lincoln division recorded a 16% increase.
Meanwhi le, General Motors sales were up 1%.
Chevrolet’s 5.8% gain powered the overall increase, led
by a 10.1% gain from the Cruze compact, a 38.6% increase
from the Suburban SUV and a 30.7% gain for the Express
full-size van. But GM also posted declines in the Buick
and Cadillac divisions.
Toyota and Honda each posted 12% increases as they
continued to rebound from the earthquake in Japan last
March. It was Honda’s first double-digit gain since April and
Toyota’s first since February 2011.
Hyundai Motor Company announced all-time record
February sales of 51,151 units, up 18% versus 2011.
Sonata, Elantra and Accent total sales increases were 11
percent, 12 percent and 29 percent, respectively. Fleet sales
remain at a low eight percent as the focus remains on retail
customers.
Kia also had the brand’s best ever February sales , up
37.3% over the same period in 2011. Kia continues to be
one of the fastest growing car companies in the U.S., and
the February sales total marks the brand’s 18th straight
monthly sales record.
BMW Group, Jaguar Land Rover, Mazda and VW
were among companies with gains of 30% or more.
Mitsubishi was the only other automaker to record a decline
(-31%) in sales.

Creating a Well-Rounded Marketing Media Strategy

If you find yourself questioning the value of traditional media in your marketing strategy because:

  • Digital investment is generating lots of clicks to your website,
  • Your competition recently launched a web or mobile campaign,
  • And your inbox is flooded with promises from digital media vendors to deliver engaged consumers, premium content and targeting technologies at an unbelievably low cost?

The digital age has had an unquestionable positive impact on the ability of advertisers to zero in on consumers fitting their ideal demographic, geographic and psychographic profiles, with the proficiency of a star athelete like Lebron James or Eli Manning to hit their respective targets. But, just as you can’t put Eli Manning on the basketball court or put Lebron James on a football field and get the same results, you can’t expect digital media alone to accomplish all of the media goals and objectives in your marketing media strategy.

The purchase cycle
Big ticket purchases like cars, furniture, jewelry, and medical services are some of the most important retail investments affecting individuals—and the consumer doesn’t want to make a mistake.

Digital marketing is great at attracting audiences concerned with making the best decisions—people who are proactive about their purchasing decisions. And often, those who are proactive about searching are also proactive about engaging. This likelihood to engage means digital should be a core component of any well-balanced media plan. But marketers have a long purchase cycle to consider, during which awareness, information, reassurance and loyalty must be established and sustained to help the consumer confidently choose to invest in your brand above all others offering similar services. That’s where traditional media shines.

A good media strategy takes all kinds
Traditional media and their digital counterparts are vital media engines, and through the basic mechanics of media mix theory1, are inclined to fuel each other in the long purchase cycle.

Here’s a quick breakdown media mix theory, from Media Planning:

  • To reach people not reached with the first medium.
  • To provide additional repeat exposure in a less expensive, secondary medium after optimum reach is obtained in the first medium.
  • To leverage the intrinsic values of a medium to extend the creative effectiveness of the campaign (such as sight and sound on TV, intimate conversation on radio, long copy in print media and precise targeting in digital mediums).
  • Synergism, where an effect produced by the sum of the parts is greater than expected by adding together the individual components.

Traditional and digital media are equally and uniquely important in your media strategy mix and you build an effective media mix that contributes to profitable growth, that includes both traditional and digital media.