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Tuesday, November 20, 2007

the Auto Retail Informer November 20, 2007

Auto Retail Informer Intro November 20, 2007

It's widely acknowledged by marketers that consumers neither do what they say, nor say what they mean, and addressing this conundrum is perhaps one of marketing's greatest challenges. Looking beyond the rational, to understanding the emotional, is critical to really understanding your consumers. It's also the cornerstone of good Consumer Motivation research.

Consumers don't look at and respond to brands in the same way as marketers.

Source: Nonoy Niles, President, AC Nielson Asia Pacific.

Highlights:

• Understanding need (part 2.) U.S. personal consumption expenditures in Maslow's hierarchy
• Automotive News article/Lithia correction

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Understanding Need (part 2) (11/20/07)

Yesterday I talked about U.S. consumers accounting for about $70 out of every $100 of economic output.  I said that it is somewhat surprising that over the last 70+ years, decade in and decade out consumers have accounted for this same level of spend  in the U.S. economy. 

Whether  economic output was $741 per person (1930) or $44,000+ per person (2006,) the personal consumption expenditures (per person) were generally $70 out of every $100 in the U.S. economy. 

But if needs don't change, as I have argued, why do consumers seem to be spending so much more? 

And I left you with the idea that needs don't change, they evolve.  What do I mean by that?

Let's begin with consumers basic needs. 

In 1943 Abraham (A.H. Maslow) ...

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AutoNews/Lithia Comment/Correction (11/20/07)

Yesterday I talked about an article in Automotive News discussing Garf Automotives acquisition plans.  And the part in the article that discussed Lithia getting denied the right to purchase a Ford dealership.  I pointed out that this was a concern because I did not understand why Lithia was trying to acquire a Ford dealership and that they were denied.

Sid DeBoer (Lithia's CEO) quickly pointed out to be the part that said it was in 2002 (and he couldn't even confirm the accuracy of the claim.)  2002 was a rough year for the public dealers.  As I recall, Asbury was trying to acquire the Baker group in California.  Ford, which had been getting frustrated with the public dealers (particularly with their resistance to extra inventory,) denied Asbury's right to ...

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