Purchasing a new vehicle

One month ago my wife and I started talking about trading in our 2004 Honda Pilot. We needed the size of the Pilot to transport our three children and their friends. I had seen the Chevy Traverse advertisements comparing their superior gas mileage, interior space, and cargo capacity against the Honda Pilot. Those are facts you can't dispute, but there are other factors when buying a vehicle of that size and price ($38,000) such as looks, safety, and reliability. I am sure I have left out a few.

So we drove down to the Chevy and Honda dealerships, which were side by side, on a cold bone chilling Saturday to see what they had on the lots. We drove by the Chevy dealership and my wife's first comment was "I don't" like the look of the Traverse". So needless to say we didn't consider the vehicle anymore. Then we drove over to the Honda dealer looking for the Pilot and they had one on the lot. We went inside and began talking to the salesperson. He asked if he could help us, and we told him we were interested in the 2010 Honda Pilot. He asked what we were driving, and we told him a 2004 Honda Pilot. The salesman started explaining all the improvements and features that had been added since then. My wife and I were both impressed with the vehicle as well as my 12 year old son. Although, I really think he was more impressed with the free fountain soda machine.

This sequence of events represents the function of marketing which is a series of processes which creates, communicates, captures,and delivers value to the customer. Honda has created a product that has value. Value reflects the relationship of benefits to costs. Honda when deciding on price had to be sure that the consumer (me) was willing to pay a price that satisfies them and the consumer. I perceived that the benefit I received from owning the pilot (safety, style, space, dependability, etc) was worth the cost of the vehicle I was going to pay. The Honda dealership in turn is selling it at a price that generates a profit for them. We left the dealership with their latest offer which I felt was a fair deal, but I knew I could do better in a larger city.

Therefore, based on the price in Springfield I called the largest dealer in St. Louis and told them what I wanted to pay. The salesman took my price, hung up the phone, and talked to his sale manager. Within a few minutes, I got a call from the sales manager telling me that they would be very close to that price. Then, my wife and I drove approximately two hours to the dealership and were able to close the deal at a price very close to the price we discussed over the phone.

Most people think that marketing stops at the point of the transaction, but the other part of the definition of marketing I left out is maintaining customer relationships that will return long-term benefits to the organization and stakeholders (consumers, investors, employees). After all the paper work was completed our salesman met us to explain all the features of the vehicle, which I appreciated. That was a marketing process of continuing to develop that relationship with the consumer. Also, he explained that we would be receiving a survey to ask how he and the dealership had done selling us the vehicle. He explained that anything less than a score of 5 (excellent) was a failure. These ratings are important because future consumers can read these ratings and remarks which will have a significant impact on their buying decision.

We drove the vehicle home that night very satisfied with the vehicle and the deal we got. In another week I had a package sitting on my front doorstep from the dealership. It was a tin of some of the best chocolate chip cookies I had ever tasted. I wondered how he knew I loved CCC. I thought to myself what an impressive dealership Bommarito had. I then remembered the words from the sales manager when he called me on the phone to tell me my price was close to what the final price would be. He said "I know that if you come down and buy a vehicle from us you will be a customer for life". I had never been treated like that before at a dealership. The cherry on top of this is that for two years I will receive free maintenance which includes oil changes, tire rotations, and car washes. Just in case you call them ask for Josh.

Hope you have enjoyed my first blog.