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LIVE FROM GAAS -- Who Needs Marketing? You Do
May 19, 2006
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Even while recovering from a serious skiing accident he endured several weeks ago, marketing expert Tom Marx still managed to moderate a compelling panel discussion on marketing in the aftermarket.

by Amy Antenora
Editor, aftermarketNews.com

DETROIT -- In today’s increasingly competitive marketplace, promoting your business or brand with strong marketing isn’t just a strategy. It’s a necessity. …according to some. Others aren’t so sure it’s of value.

Among the speaker presentations Tuesday afternoon at GAAS, Tom Marx, president and CEO of The Marx Group and co-author of a book on marketing “Marketing Sucks! (And Sales Too!)” talked to four industry executives about their thoughts and predictions for marketing in the aftermarket.

The four panelists -- Willi Alexander, president and COO of Parts Depot; Bill Long, vice president of marketing for Proliance International; Lisa Kranc, senior VP of marketing for AutoZone; and Mario Recchia, VP of marketing and business development for WORLDPAC – each offer a different and critical perspective on how aftermarket players should and do, go to market and it seems that, the more things change, the more things stay the same.

“[Marketing’s] goal of building sales profitably hasn’t changed, but the how has,” said Kranc. “You can’t be all things to all people.

Recchia predicts the aftermarket will move away from the ‘lifestyle’ marketing of years past to focus more on marketing to niche segments, specifically, ethnic segments and the female population.

AutoZone is currently marketing to these segments with bilingual packaging and signage, however Kranc pointed out that if a company’s marketing department is focusing on this and the rest of the organization isn’t, the whole organization loses out.

Not only are aftermarket businesses rethinking who they market to, but with whom as well.In the past, aftermarket businesses have vocalized concern about the OEMs stealing service and repair market share, but going forward, the industry should prepare for more collaboration with the OEs.

Parts Depot is a supplier to both GM and Ford dealers, as well as independent shops, according to Alexander. His company is seeing independent repair shops increasingly demand OE quality parts. And, WORLDPAC is also collaborating with the OEs on training.

According to a recent Frost & Sullivan study, tools, resources, inventory, training and capital are perceived as the OE advantage. “The aftermarket can overcome these perceptions. That’s really what they are,” said Recchia. ”We need to make the service dealers better at what they are doing."

Taking that one step further, Long pointed out that the key is to help provide the programs that drive motorists to the independent service dealers. “There are ways to do that successfully,” Long said, “Creating trust and confidence for independent repair facilities.”

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