Ch. 18: Sales Promotion and Personal Selling

In terms of sales promotion, Audi itself doesn't do much, as the sales promotions and deals offered only happen at the dealership level, and Audi dealerships are franchises. Therefore, it is up to each individual retailer to create sweepstakes, discounts, and other incentives for people to come by the dealership and hopefully buy a car. These kinds of deals vary from dealership to dealership. However, cars like Audi, BMW, and Mercedes, usually don't rely on these kinds of promotions, as they have already made a name for themselves in the world of automobiles, and are held in such high regard that people are willing to forego a deal or a coupon to have a car that is also a status symbol. Therefore, Audi's main focus is on personal selling. The whole experience of going into a dealership and talking to a sales person is the definition of personal selling. Usually, the minute you walk into dealership, someone approaches you, tells you their name, and begins asking you questions about who you are, what you are looking for, and what car fits you and your personality the best. In most cases, this person will be your liaison with the Audi dealership forever, assuming you by a car. That person therefore grows to know you, and is the ideal person to work with if you have any problems or complaints, as that person is almost a friend to you, based on the relationship they have established through professionalism, courtesy, and understanding of their customer. This is essentially the definition of relationship selling. The salesperson will always be "your salesperson", and you will very rarely have to deal with anyone else (unless they get fired) on any issue regarding your car. This is a relationship rarely found in the world of consumers and sellers, but when it comes to such a large investment as a car, this kind of service is expected and demanded by everyone. 

Ch. 17 - Advertising and Public Relations

Audi, like most other luxury car brands, is in a weird place when it comes to who they advertise to. Their target market is clearly set as people in the upper middle class who can afford a car that runs between $60,000-$150,000. Therefore, they can't really advertise to anyone else BUT that one group, because no matter how much someone might want an Audi, if they can't afford it, they can't have it (unless of course you buy a used one, but Audi wouldn't be trying to advertise an older, out of date model). This makes their lives a little bit easier, and allows them to focus more on the style and execution of their advertising and less on who they're focusing on. Recently, Audi has employed a funnier, more satirical feel in their commercials, like the commercial where a snow plow driver talks about the new Audi A8 Quattro (with 4 wheel drive) is like a wild beast that constantly evades the plow driver, much to his chagrin. Audi and BMW have long been in an advertising war that pitches each company's new car against the others, mainly their sportier cars. Below is a billboard they made in response to BMW saying they had just won World Car of the Year.

In terms of public relations, Audi is very active in positive promotion for their brand while also showing their belief in social responsibility. Audi has been a strong supporter of the  Elton John AIDS Foundation, and they recently put up two Chrome Audi R8's (the R8 is their most expensive car, and one of the best super cars on the market) which brought in almost £650,000. Last year they teamed up with Tom Brady, quarterback of the New England Patriots, and the Best Buddies foundation. They managed to raise about $350,000, a sizable contribution to the $36 million the pairing has amassed in the last 4 years.  

Ch. 15: Retailing

So I went with my father to the Audi dealership on W 54th street. He was going to test drive a few cars, as he is looking to lease a new car. I had mentioned earlier how pleasurable our experience at the Audi service center was: they treated us extremely well, they knew everything important about us and our car, they served us drinks while we waited, etc. The experience at the dealership was a little bit different. Like most luxury car dealerships, the salesperson will only become really invested in you once they know you can actually afford the car and that you're serious about purchasing one. So initially they weren't swarming on us, one came and said hi, how are you, the basics. Once we got talking however, and my dad mentioned he used to own an Audi but had just got it at another dealership, the salespersons demeanor changed completely. He immediately looked up my father's info, began calling him Mr. Mumtaz, and began to guide my father in the correct direction for the car he wanted. We didn't get the car that day, but the xperience was extremely positive, but only after they knew we were "of value".

Ch. 6: Consumer Decision Making

When it comes to buying a car, the consumer's decision making process might be the most intense and detail-oriented process out of any other product (other than maybe a house). When it comes to spending that much money on something ($60,000-$150,000), the consumer's decision making process must be almost surgical, going through every pro and con that the car has to offer. Audi, thankfully, makes this process quite easy for the consumer, assuming the consumer knows what he is looking for. In the initial stages of the process, the consumer will see that Audi's cars are among the most stylish and beautiful, which would help him overcome the stigma of having an unstylish or out of date car. After seeing the car, the consumer will want to test drive it. Audi's new Quattro system allows the driver to have an almost velcro-like grip on the ground, while they're new emission-reducing engines still create the same amount of raw power that a normal, environmentally harmful engine would. Social class obviously has something to do with the process, as someone who makes a six figure salary probably wouldn't want a Hyundai or a Kia, as they are not appropriate signs of ones status and position in the world (if that's what you want your car to do).  When it comes to post purchase behavior, the consumer will be extremely pleased with Audi's top of the line customer service (I for one can attest to that, whenever my father would go in for a repair or a check up, the service was impeccable. If a charge was disputed or something didn't look right, the service agents would immediately fix it or remove the charge, and while we were waiting they would treat us to coffee and snacks). Also, to match up with their competitors, Audi has begun to give their cars a better resale value, as many people want new cars after a few years, but a lot of technically advanced cars become obsolete once a newer form of that technology comes out. Audi's focus on the consumer has become one of the most important priorities to them, and it is certainly starting to show.