Study On Service Marketing Tactics Of A Auto4S Store

Over the past three decades, the automobile industry has grown rapidly with the fastdevelopment of Chinese economy. The car ownership has risen sharply and a increasingnumber of automobile manufacturers are scrambling for the Chinese market. As early as in1995-2005period, China’s automobile4S stores earned huge profits. On the one hand, giventhat the competition pressure in car dealership is low in the seller’s market, the pricing willbe adjusted according to market demand so as to increase profits. On the other hand, becausethe public don’t know much about cars, a small group of wealthy people’s irrationalconsumption supports the car dealers. The car market has experienced10years of superprofits due to the information asymmetry. However, the profits give rise to the intensecompetition. In the past ten years, the automobile4S stores have sprung up around China.The famous brands such as Toyota and Volkswagen, up to now has nearly400outlets acrossthe country. The number of car dealers of the same brand in the biggest cities has evenamounted to more than10. In the past five years, the national independent brands also havebegun to catch up with the competitors and seek for rapid expansion of the second-andthird-tier cities. The car market has entered the era of fierce competition and some auto4Sstores have run into losses and failures. The management of the automobile4S storesbecomes more important for increasing their profits.This paper firstly introduces the current situation of the automobile4S store named A.A was recently established with the independent brand of automobile a year and a half ago.Based on the analysis of current situation, SWOT analysis, PEST analysis method, and theservice marketing theory, the7p service marketing mixed strategy is put forward.Specifically, the service marketing strategy is made from seven aspects: the service product,service pricing, promotion mix, service channel, physical evidence, service personnel andservice process. The corresponding reasonable normative system to ensure the enforcementof the service marketing strategy is also put forward.Finally, the prospects of automobile4s stores are also proposed. By proposing theservice marketing strategy, this article is aimed at helping the automobile4s stores steadilyexpand the market, set up service brand, form core competitiveness to survive and gainadvantages in market competition and ultimately achieve sustainable development.