Autobytel Case Study

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Problem statements

- Autobytel is spending more than it earns, with an advertising budget that has traditionally overspent its revenues, let alone other expenses, Autobytel needs to slow down the advertising and marketing growth, raise prices or a combination of both?

- Autobytel has traditionally used a mix of different advertising strategies to attract customers. What would be the best mix for future growth?

- Autobytel is looking to expand into several new markets while looking at its current product mix. What should Autobytel pursue and how should they pursue it?

- Autobytel needs to change its marketing position in order to differentiate it self from its competitors. Old positioning statements are being copied and better
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To optimize limited marketing dollars, the company will need to determine exactly who their customers are, how best to reach those customers and then measure the effectiveness of its marketing strategy.

Examples of more focused type of advertising could be:
For car buying customers:
- more presence through web advertising since many of the customers are web savvy,
- advertising in car magazines and car sections of newspapers
- focused advertising on populations looking for cars such as high school graduates and people entering the workforce. College and job fairs would be a place to look for this population.

For car dealerships
- trade magazines for dealerships
- car shows and automotive conferences where dealers determine what they will sell.
- Sponsoring races or specific drivers.

Product Mix:

New Car Business
The new car product is the core of Autobytel’s automotive business. In a nutshell, Autobytel helps customers with making choices about the type of car they want to buy without the pressure of a sales force. Once a customer has determined the exact type of car they want to buy, the service then directs these motivated buyers to participating retailers. In essence, Autobytel has two customers, car buyers and car sellers and needs to work at pleasing both. In order to continue to attract more car buyers, Autobytel needs to focus its marketing and understand the marketing plan’s effect. Not only will this bring more interested

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