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MARKETING OF AUTOMOTIVE SERVICE STATIONS AND CAR REPAIR SHOPS


FEATURES OF THE INDUSTRY

Automotive service stations and car repair shops of various specializations make up the automotive service and repair market, which generally includes any business that provides services to keep a car in good condition, from tire changing shops to large repair shops. The automotive service and repair market has a number of specific characteristics that significantly distinguish it from other industries and determine which marketing strategies and tools work effectively and which do not. Here are the main features of the market in question:

• The nature of the market. In many countries, one of the defining characteristics of the market is that most service stations and car repair shops are paid in cash, i.e., they pay almost no taxes and do not provide the tax authoroties with real figures for the services they provide. There is also no extensive marketing research for various methodological reasons. In fact, this means that in such conditions there is no reliable state statistics on the real market size and its dynamics, which of course causes certain difficulties for marketers in understanding the market prospects, its current state and trends in the development of certain segments. Nevertheless, experienced marketers know how to fill in these information gaps and get more or less adequate market snapshot to build an effective marketing strategy.

• Competition. On the one hand, the market is characterized by extreme competition, which can be seen visually in any city in the country. Service stations and car repair shops are right there, difficult not to see. On the other hand, the demand is also considerable, as the number of vehicles on the roads is constantly growing. Moreover, in many countries, it is known from open sources that more than 90% of sales in the automotive market are of used cars, i.e., those that require more maintenance and repair costs compared to new vehicles.

• Technological progress. Rapid technological progress in the automotive industry is leading to an increase in the complexity of car components and systems, which places high demands on the level of technical equipment of service stations and car repair shops. Modern equipment for diagnostics and repair, such as computer diagnostic systems, specialized tools and software, is an integral part of modern automotive service. In addition, access to updated information from manufacturers and skills in working with electronics and computers are essential to ensure efficient car maintenance, which requires highly qualified technicians and continuous professional development. Thus, a high level of technical equipment, access to modern equipment and ongoing training of technicians are important aspects of the successful operation of modern automotive service stations and car repair shops.

• Fears and distrust. There is often a lack of trust and concerns about the quality of work between customers and service stations due to a lack of knowledge and limited understanding by clients of what parts and work are really needed for their cars. Many car owners feel vulnerable to being overcharged or having unnecessary repairs performed, which can lead to misunderstandings between the customer and the service station. Such situations emphasize the importance for car service centers to create open and trusting communication with customers, explain the need for repairs and spare parts, and provide clear calculations and reasonable prices to reduce customer fears and convince them of the quality of the services provided.

• Recommendations and advices. The general opinion of drivers regarding the quality of services in the car maintenance and repair market is that there is a big difference between different service stations and even individual mechanics. The market is filled with rumors and stories about poor quality work, when a person comes to repair one thing and leaves the service with more problems than when he arrived. This is mostly due to the poor qualifications of the mechanincs and the low culture of handling other people's things. In such a market, personal advice and recommendations from driver to driver are of particular importance, when the queue for one service station or mechanic is scheduled for weeks in advance, while others have free timeslots quite often.

• Powerful marketing. Strong marketing is a key tool for building trust and attracting customers in the automotive service and repair industry. In markets where personal recommendations and advice have such a significant impact on potential customers' decisions, the need for creative marketing aimed at building brand awareness and attracting new customers is especially important. In other words, if customers don't trust advertising and marketing as much as they trust recommendations, then marketing needs to be more sophisticated and creative, which is well understood by industry leaders who evaluate every aspect of their business through the eyes of marketers and customers.

The list of industry specifics can be extended, but the above characteristics are the main ones for building a service station or car repair shop marketing strategy. So, how to compete in such conditions and how to build an effective marketing mix in the business of auto repair? How to avoid annoying marketing mistakes that even large repair shops with full-time marketers make? How to prevent the shop's development and success in the market from being hampered by wrong marketing decisions and choices?


SOME GENERAL STRATEGIES AND APPROACHESS

In general, the following main marketing strategies, approaches, and tools are used in the automotive repair and maintenance industry:

• Broad spectrum or niche strategy. Service stations and car repair shops use two main strategies that determine the entire marketing mix: a broad spectrum strategy or a niche strategy of specialization by car brand or type of work. The first strategy is characterized by an emphasis on the fact that the company is so professional, with such experience and qualifications of its technicians, that it can repair and maintain all car brands and any type of work. Such a strategy is very ambitious and requires considerable investment in equipment and staff to ensure that the declared business format does not look hollow and is supported by real capabilities. The second option is a niche strategy, where smaller service stations or repair shop declare to the market their own qualifications for certain car brands or certain types of repair work. In any case, a clear strategy helps to set the right expectations and level of trust among potential customers.

• Branding and positioning. The branding and positioning of a service station or repair shop should focus on demonstating clear points of parity and points of differentiation. On the one hand, potential customers should be aware that the car service meets the highest industry standards in terms of equipment and staff qualifications, and, on the other hand, myths and concerns of consumers should be dispelled. The main concerns and distrust include the following problem areas: wrong selection of spare parts, unjustified and unnecessary work, overpricing, technological gaps, damage to other parts of the car, etc. Such fears certainly don't work in favor of a service station or car repair shop, but experienced marketers know how to turn the industry's shortcomings into a competitive advantage for their own company.

• Digital marketing ecosystem. The digital marketing ecosystem in the car repair and maintenance business is key to success in today's market environment. It covers a wide range of online tools and platforms that allow service stations and car repair shops to effectively interact with current and potential customers. These include websites and mobile applications with online booking, social media, digital advertising, content marketing, email, etc. This ecosystem helps to improve customer experience, provides convenient access to information about services and promotions, encourages new customer acquisition and increases loyalty by personalizing communication and providing valuable information about car maintenance.

• Content marketing. No digital ecosystem will have the desired effect without interesting and useful content. In the car repair and maintenance industry, the most important format is a video on the relevant topics. Content marketing, especially the video format, helps companies showcase their expertise, attract customer attention, and establish trust. Video content can include introductory videos with technical tips, overviews of services and maintenance processes, solutions to interesting and complex vehicle repair cases, and demonstrations of advanced technologies and equipment. This content format makes it possible to reach out to a wide range of customers through various platforms, including social media and the company's website, helping to increase brand awareness, increase customer traffic, and establish an emotional connection with the clients.

• Search engine optimization (SEO). SEO of the company's website is important in the field of car repair and maintenance due to the large number of automotive-related search queries. A significant number of potential customers are interested in typical problems with a particular car, options for solving them, the experience of other owners, repair technologies and techniques, the quality of spare parts, tips on alternatives, etc. Optimizing a website for such queries allows businesses to rank better in search engine rankings, providing more opportunities to attract the target audience. Also, companies should constantly increase the number of backlinks to their website and follow the requirements for internal optimization including mobile devices, etc.

• Online advertising. Online advertising is a necessary part of a marketing strategy in the car repair and maintenance industry, especially given the large number of users who actively search for relevant services on the Internet. Various online advertising platforms, such as Google, Facebook, Instagram, YouTube, TikTok, allow to customize advertising campaigns to specific target audiences using demographic data, interests, and user behavior. The effective use of online advertising helps service stations and car repair shops to actively attract new customers, increase their brand awareness, and boost sales.

• Traditional advertising. Traditional advertising remains an important component of the car repair marketing strategy, especially for attracting less Internet-active audiences that are more sensitive to traditional advertising media such as television, radio, press, and outdoor advertising. Depending on the target audience and budget, automotive companies can use a variety of traditional advertising channels to achieve their marketing goals. Advertising on local radio stations, which are actively listened to by drivers, deserves special attention. Outdoor advertising, such as billboards or light boxes, can be an effective way to draw drivers' attention to a service station or car repair shop. Despite the growing importance of digital marketing, traditional advertising remains an important element of the marketing mix for many companies in the car repair and maintenance market.

• Partnerships. Partnerships with powerful brands in the automotive industry can be an important element of the marketing strategy for car repair and maintenance companies. By leveraging secondary associations with well-known car brands or parts manufacturers, service stations and car repair shops can improve their image and credibility with customers. Partnerships with well-known automakers provide access to technical information and support, which can increase the credibility of a service station or shop. In addition, close cooperation with well-known brands can help attract new customers through joint promotions or advertising campaigns. The use of secondary associations allows companies to attract the attention of a wider audience and improve the consumer perception of their business by current and potential customers.

• Loyalty programs. In an environment where competition is growing and customers are becoming more demanding in terms of quality and service, loyalty programs allow companies to maintain stable relationships with current customers and reward them for their loyalty. Such programs include accumulative bonus systems, discounts for repeat visits, or free service after a certain number of visits. Moreover, thanks to personal recommendations from satisfied customers, loyalty programs help companies build a strong reputation, which is key to successful business in the industry.

• Reputation management (SERM). Reputation management is an extremely important component of marketing for large and chain companies in today's digital world, where customer reviews and ratings play a crucial role in shaping consumer perceptions of a company. Thanks to SERM tools, it is possible to effectively monitor online reputation, as well as respond to reviews and comments in a timely manner, resolving negative situations and minimizing potential damage to the company's image.

It should be noted that within one article, we cannot show all the pitfalls or demonstrate all the marketing methods and tools specific to the mentioned industry. In other words, these are just a few examples of quite general marketing approaches that can be applied to automotive service stations and car repair shops. From a practical point of view, everything is much more complicated - the choice of a specific marketing strategy and tools depends on the target audience, competitive environment, and unique advantages of the company, etc. At the same time, it is desirable to understand that marketing of auto service and repair may encounter a number of specific problems that are unique to each individual case and require an individual approach to their solution.

Achieving the commercial objectives of a company through effective marketing requires a deep understanding of the market situation, consumer needs, the ability to analyze and explore alternatives, and a creative approach to problem-solving. Our company has extensive experience in defining optimal marketing strategies for our clients' businesses, creating a strong brand and market positioning, as well as developing a marketing mix and implementing the chosen strategy. You can familiarize yourself with the services and solutions our company offers on the "Services" and "Solutions" pages, respectively.