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Autobytel Case Study

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Autobytel Case Study
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 implemented by their competitors. What should Autobytel’s new position statement be?

Conclusions

Marketing and spending:
Autobytel should look at reducing the growth rate of sales and marketing from 40% a year to only 10% a year.

Marketing Mix:
Autobytel needs to do a better job in determining who their customers are, how best to market to them and measure the effectiveness of future advertising campaigns. Much of this can be done by mining their own database of car buyers.

Product Mix:
New Car Business
Do a better job of marketing to car buyers in order to drive more traffic to the web site. Continue to maintain a positive relationship with participating dealerships. Increase average Autobytel fees per car by 25% to generate more revenue.

Used Car Business
As with the new car business, Autobytel needs to drive more customers to the website and continue to maintain a positive relationship with the dealer. Autobytel should drop the customer to customer sales site from the website and instead find ways to drive people selling cars to dealerships

Financing and Insurance
This represents a potential growth area for Autobytel. The company should find ways to increase the number of loans generated through the site.

Autobytel

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