Auto World Case Study
Auto World Case Study
1
Sullivan Ford Auto World
Questions:
1.How does marketing cars differ for marketing services for those same vehicles?
Ans.
To understand this, we should first know the difference between a product and a service. A
product is a tangible, measurable, perishable item whereas services are intangible,
immeasurable and cannot be stored for future use, they are produced and consumed at the
same time.
So in order to market a product, for example a car, the company needs to advertise about its
features, its specifications, design, model, color etc.
Whereas in order to market a service, for example car wash, oil change tune-up, you can offer
free service first time so customer can take a look at the quality of services provided and decide
whether he will return for it in future or not.
2.Compare and contrast sales department and service department at Auto World.
3.From a customer perspective, what useful parallels do you see between running a car
sales and service dealership and managing healthcare services?
Ans.
whether it is a car dealership or a healthcare company, primary concern for a customer is
getting the best products and excellent customer service. Products are of good quality and
they satisfy customer’s needs while the service providers are friendly, polite and efficient.
If it is a car dealership, it should have all new and previous models and colors, it should
offer new and used cars, it should allow test drives etc., also it should provide repairs and
maintenance services that are satisfactory.
It is a HealthCare company, it should provide best treatment to the patients, right
diagnosis and trained staff that can handle emergencies, also they should hold best quality
medicines.
4.what advice will you give to carol on future strategy for business?
As the financial condition of the business has been deteriorating in past 18 months, carol
should find out the underlying cause for this situation and associated factors. These factors
include:
Economic pressures- increasing interest rates and fuels prices reflect decline in future
sales.
Defects in backend- customers were not happy with the attitude of service department
staff and feedback revealed that overall satisfaction level of customers with service at auto
world was consistently low. Worst experiences include promptness of writing up orders,
convenience of scheduling the work, convenience of service hours and appearance of
service department. Some customers also complained about length of time to complete
the work, availability of needed parts and quality of work done.
Now considering all these factors, first of all Carol should try to make the service area
visible to customer either by shifting it to a new place besides showroom or ask the sales
manager to take clients to backend for a visit of the service area.
Educated your service staff to be polite, understand customers’ problems and explain them
possible solution. Try to fix the problem in first visit so customer don’t need to return again
and again.
Whenever a client buys a car, offer him a service free like first car wash or oil change will
be free so he is persuaded to come for trying your service and returns again if he like it.
Decline in sales will no longer be there when auto world will build good repute among
customers and when its services will be recognized as best, people will start to come here
again.