The following article is based on a Roundtable Seminar conducted by the International Automotive Remarketers Alliance (IARA) on July 13, 2002 in Denver. The facilitators of the seminar were Henry Stanley, president of the Carolina Auto Auction, and Bob Rauschenberg, vice president of Auction Broadcasting Co.

What is the best way to market a sale?

For starters, you need to target your group of customers. Once you’ve identified your target market, you need to create awareness of the sale among them. What is the best way to get the word out? Begin by tailoring your marketing plan to the specific product that is going to auction. Identify the demand for the product and the best tools at your disposal for sales and advertising. The key is to identify buyers and sellers and then bring them together at the sale.

Marketing Methods

Identifying key market segments by looking at historical buying habits will lay a strong foundation for future sales. Create a buyer profile and target that profile. There are a number of effective communication channels available to marketers, including telemarketing, faxing, e-mail, and the Internet. The widespread availability of high-speed Internet access, such as digital subscriber lines (DSL), make e-mail and the Web even more effective for reaching your sellers and buyers.

Getting the Word Out

Face-to-face communication tops the list of methods for getting the word out about a sale. Building and growing relationships with buyers and sellers is key. Again, face-to-face interaction is particularly effective. Finding new dealers, buyers, and sellers is important. Continuing to build new relationships will help you to better market future sales.

It’s also important to measure the success of your marketing tools. If certain tools prove particularly effective or ineffective, you can better plan future marketing efforts.

Get a market report to the sellers. Coordinate the efforts of the remarketers and auctions, and be sure the seller gets the vehicle information to the sale early so that you can make the sales information available to buyers at least two days before the sale.

You also need to consider allowing bidding by phone and the Internet. The Internet is still a tricky area. Fewer than 20 percent of the non-franchise dealers, for example, have Web access, making Internet bidding an unrealistic proposition for that segment. Also, people in or near metropolitan areas tend to attend live auctions, while those in rural areas are more likely to use the Web. Some think a consolidation of Web sites might be in order. Either way, try to keep technology simple and user-friendly.

If you employ telemarketers there are special considerations to keep in mind. Be sure to train and be involved with your telemarketers. Avoid the script-type sales pitch – telemarketers must know they’re talking to real people and how to get them to come to the sale. Define your objectives and share them with your telemarketers. Conduct daily rehearsals to ensure that the right message gets across. Educate your telemarketers about the product, and don’t forget to have fun – you’ll have a tough time attracting buyers and sellers with a monotone, bored voice over the phone.

You must also consider promotions for the sale. Will you share promotional expenses between auction and seller? Will you have drawings, dealer games, or other promotions? Those are the questions you need to answer. Once you have your buyers there, you have to make their experience great to keep them coming back.