Agenda

7:30 am 8:45 am 9:00 am 9:10 am 9:10 am 9:40 am 9:40 am 10:10 am 10:10 am 10:35 am 10:35 am 10:40 am 10:40 am 11:00 am 11:00 am 11:25 am 11:25 am 12:15 pm 12:15 pm 12:25 pm 12:25 pm 12:30 pm 12:30 pm 1:30 pm 1:30 pm - 3:00 pm 3:00 pm 3:15 pm 3:15 pm - 3:30 pm 3:30 pm 3:50 pm 3:50 pm 4:00 pm Breakfast Welcome & Opening Remarks Steve Jaros Assistant VP/Eastern Region Christan Miller Zone Sales Manager Jeff Williams Sr. Mgr/ Sales & Marketing (AHFC) The Honda Guitar Heroes BREAK Ron Lybrook Assistant VP/Parts & Service Gerry Rubin Co-Chairman (RPA) Peggy Proko Zone 9 NDAB Chair Christan Miller Zone Sales Manager Lunch Ralph Paglia VP Tier 10 Marketing
Integrated Marketing Civic Launch

BREAK Gerard Harrington Zone Manager PI Randy Smith National Manager PI Close

Ralph Paglia
Vice President Tier 10 Marketing
Ralph@Tier10Marketing.com www.Tier10Marketing.com www.ADMPC.com www.2012CivicLaunch.com

Ralph Paglia
Nationally recognized speaker and author on Automotive Digital Marketing, Advertising, Lead Management and CRM Practices

Led team that generated and managed 144,000+ leads at a single-point Phoenix dealer in 2 years
Managed dealership sales team that delivered 4,000+ vehicles to Internet Leads and website phone calls in 2006 20+ year background in developing Integrated Marketing strategies and lead management implementations for dealers and car companies Managed first retail automotive pilot program for Google Audio while in beta testing at Courtesy Chevrolet in 2005, 2006 and 2007 Started generating Internet leads in 1986 using CompuServe ISP access and vehicle listings on defense contractor BBSs in San Diego Reynolds Consulting/Cyber Car Catalyst of the Year in 2001 AAISP/Digital Dealer Magazine Internet Sales Manager of Year 2006 Digital Advertising Program Director at ADP Dealer Services

Integrated Marketing Process

1. Market Research
Use market research to identify consumers that have the highest statistical probability of doing business with your dealership. Tier 10 uses the manufacturers research, Polk Market data and the dealers historic sales and service trends to plan which customers to target in the future.

2. Traditional Advertising
Traditional advertising on TV, radio and print is expensive in New York, like other major metro markets. As a result, Paragon shifted a lot of their traditional ad budget to more targeted marketing that generates better returns. However, since Latinos make up half of Paragons market, they have leveraged some good buys on Spanish radio, as well as, print ads in the New York Times where they include QR technology, a barcode that links consumers mobile phones to Paragons website where they can learn more about the offer and contact the dealership

3. Online Marketing
Over 90% of Honda consumers use the web to shop so Paragon implemented an in-depth strategy for search engine optimization and marketing, email marketing, banner ads on popular websites like Facebook, social media marketing, online reputation management and mobile marketing.

4. Search Engine Marketing

Since the majority of consumers use search engines to find their next new vehicle, Paragon uses organic Search Engine Optimization (SEO), Video Search Engine Optimization (VSEO) and targeted pay-per-click search marketing campaigns to attract in-market consumers who are shopping for Acuras and Hondas to their website and dealership.

5. Micro Sites
All of Paragons digital marketing efforts drive consumers to a campaign micro site where the message, offers, look and feel are consistent with every other part of the campaign. The campaign micro site is designed to convert the maximum number of visitors into email, phone and showroom leads. Here are some examples of micro sites we currently use: www.ParagonHondaInfo.com www.ParagonExpressService.com

6. Public Relations
Tier 10 believes that a free five minute story on a major TV network that appears online forever has a bigger impact than an expensive 30 or 60 second TV ad that runs out when the budget expires. We created and distributed relevant press that generates interviews with local press and we have received exposure in the Wall Street Journal, New York Times, NY Post and hundreds of stories on national outlets, including CNN, ABC, NBC, CBS, FOX and MSN.

7. Reputation Management
Todays consumers rely more on other consumers reviews than advertising, so Online Reputation Management is a top priority at Paragon. When consumers Google Paragon they will find out about all the things they are doing in the community and they will be able to read positive reviews from satisfied customers.

8. Targeted Marketing
Paragon communicates with all in-market Honda and Acura consumers by sending

custom offers based on their vehicle, miles and position in their ownership cycle. Paragon sends custom campaigns via mail and email to promote all their profit centers, New, Used, Finance, Service and Parts. We dial into Paragons DMS to target in-equity customers and we use variable printers to send a custom message to each consumer that shows them how they can get a newer vehicle for a lower payment.

9. Niche Marketing
Paragon created a corporate purchase program to employees of large organizations in their market that gives them special pricing and service when they do business at Paragon. Paragon sends an information package to the HR department of the largest organizations in their area to ask them if they want to give this free benefit to their employees. If a company wants to join the program they receive a communication kit from Paragon that explains the program to their employees. Companies have the option of having brochures customized with their logo and sent to their employees directly so they dont even need to stuff their payroll envelopes.

10. Merchandising
When you walk into Paragon Honda and Acura, it is obvious something is going on. Even if consumers dont know about their sale the merchandising quickly reminds them that they are lucky they stopped by at the right time. The dealership has extensive POS Merchandising that promotes the Paragon Guarantee and Paragons Certified Pre-Owned Vehicles.

The Result
Paragon Honda and Acura grew from #17 to the #1 New and Certified Pre-Owned Honda & Acura Dealer in the U.S. in a short 6 month period. Overall, it was our best year in business despite being the worst year in the industry, said Brian Benstock, GM and partner of Paragon Honda We had a record year for volume and profitability during a record low year for the car business.

American Honda Motor Company Zone 9 - Northeast Region

2012 Honda Civic Launch Dealer Integrated Campaign

Creative: The 2012 Honda Civic Upgrade Program

Creative: Direct Mail

2012 Honda Civic Launch Dealer Integrated Campaign

Creative: Direct Mail

2012 Honda Civic Launch Dealer Integrated Campaign

Creative: Direct Mail

2012 Honda Civic Launch Dealer Integrated Campaign

Creative: Print Ad

2012 Honda Civic Launch Dealer Integrated Campaign

POS: Poster

2012 Honda Civic Launch Dealer Integrated Campaign

POS: Hang Tags

2012 Honda Civic Launch Dealer Integrated Campaign

Web Banner

2012 Honda Civic Launch Dealer Integrated Campaign

Video

2012 Honda Civic Launch Dealer Integrated Campaign

www.2012CivicLaunch.com

Action Plan Response to A message from Steve Jaros and David Hendley

2012 Civic Launch Dealer Readiness

Get your sales staff together and develop plans on how you will get the 2012 Civic message to your customer database. Will it be a preview night, special invitation only event, or a direct mail campaign that offers a special incentive to come by and see the all-new 2012 Civic? Correct Answer: All The Above! Use highly targeted Direct Mail combined with Email campaigns to drive showroom traffic

How can you tie into local events in late April to May time frame? Local fairs and Spring Events are tailor made to showcase the all-new Civic
Sponsor Prom Night Alcohol Free after parties featuring new 2012 Civic at event Sponsor College Spring Formals for Fraternities and Sororities and showcase the new 2012 Civic at events

How do you get the moms and dads of those graduating high school seniors and college students to shop you first before they go to another brand?
Dealership sponsored College Graduate Program Promote with Blogs and Tweets using popular college and school hash tags Develop College Internship Program where Interns must use social media marketing to generate 2012 Honda Civic test drives

How do you get your local print and media to take notice of the all-new Civic? Press Releases through Prweb and Prnewswire
Local Press Ride and Drive day event Radio talk show call in appearances by dealer Dealer interview on TV news report about rising gas prices and the innovation of Civic GX

How do you use your local contacts, associations, and corporations to show the all-new Civic? Shopping center placements; San Tan Honda puts new vehicles all over the San Tan Village shopping center with brochures on windshields
Honda Owner Clubs Send representative to present the 2012 Civic at monthly meetings

Lay of the land

So whats the hold up?

Integration from a strategy perspective

Social media Mobile CRM LBS Offline Website

Email

Dealer

POS

SEO Paid search

Targeted Mail

Evolution in a dealers planning paradigm

Marketing plans must answer the questions:
+ Where do car buyers want to engage with us?

+ Where do we want to engage with them?

+ How can we make it easier to engage with us?

Strategy development tips

+ Acknowledge the need for integration
+ Think beyond short term campaigns + Elevate your tracking and analytics expectations

+ Hold everyone on your marketing team accountable for integration

Integration from a media perspective

Social media Display Civic web properties Traditional Paid search Mobile SEO

Evolution in planning paradigm

Civic Launch campaign media plans must answer these questions:
+ How can we share intelligence between media disciplines? + Do all media channels support a uniform message? + Can consumers find us when/ where they want? + How can we track their behavior to make smarter marketing/ business decisions?

Challenges

Tunnel vision

Solution
Lead strategically, not tactically
+ Bring everyone together during an initial 2012 Civic kick off to plan in a strategic and integrated fashion + Leverage media disciplinary experts (e.g. social media)

Fragmented reporting

Solution
Integrate reporting and assign media channel KPIs
+ Segmented reports do not illustrate the big picture

Accountability

Solution
Every discipline affects a marketing ecosystem, so everyone is accountable for output.
+ Attach goals to various departments and make sure everyone is onboard with the integrated marketing plan.
+ Im on a horse: Do you think the social media and video teams for the Old Spice campaign planned in isolation?

Scenario planning

Solution
+ Plan for every iteration of your 2012 Civic launch campaign and dont sell yourself short.

+ Before you initiate your 2012 Civic launch campaign, take pause to see any gaps that are easily overlooked when youre knee deep in execution

Key 2012 Civic launch integration points

+ Paid search and SEO + Display and paid search + Online and offline + Social and paid search + Email and social + Website + EVERYTHING

% of car buyers that found the car they bought on-line

Why doesnt dealer advertising have the same impact on sales that it had a few years ago?
Weekly Hourly Media Consumption 1 (Total time spent using all media was 70.6 hours) Percent of Advertising Spend
2

Direct Mail/Radio/Other

28.30%

Other, 17.6 hours

Newspaper

27.30%

Internet 32.7 hours

Television, 16.4 hours

Newspaper,3. 9 hours

Television

19.50%

Internet

11.50%

1. IDC Study, U.S. Consumer Online Behavior Survey Results 2007 2. 2006 National Automobile Dealers Association Data

Which information source was most important when making decisions about buying your vehicle?
40.0%
35.0% 30.0% 24.9% 35.3%

25.0%
20.0% 15.0% 10.0% 5.0% 0.0% 13.4% 8.2% 4.4% 3.6%

1.1%

R.L. Polk 2010

Are You Ready for Battle? Toyotas Mission is to take Civic Buyers

2012 Honda Civic Video Pre-Roll Lexus CT Advertisement

Integrated Advertising Phase 1 Approach

1. Do-It-Yourself Digital Advertising
Although it may seem complex, many forms of digital advertising can be done without extensive training. We share with you some of the latest ways you can get started, many of them at no cost!

Integrated Advertising Phase 2 Approach

2. Digital Advertising Setup & Training
An introduction to the tools, processes and know-how needed by dealers to get up and running with online advertising 2 days of indealership hands on process definition, building and launching actual campaigns!

Day 1 Campaigns Setup

Day 2 Campaigns Launch

Integrated Advertising Phase 3 Approach

3.

Full Service Digital Advertising Solution

Partner with a qualified service provider to provide your dealership with some of the most advanced advertising solutions that are available today.

What you need to know Pre-Selection Filters - Car Buying Starts on Web
Search Engines are the primary tool used by car buyers for filtering dealerships

Dealer Websites are now an extension of the dealers showroom and local brand

Are you planning your advertising for maximum effectiveness?

What should dealers measure?

Impressions Generated
Click Through Rate (CTR)

How many times ads were seen

# that customers clicked on an ad divided by impressions generated

Leads Generated
Campaign Closing Ratio

Electronic Leads and Phone Calls attributed to the ad campaign

# of sales divided by # of leads and calls attributed to the campaign

Campaign Cost

How much spent on Ad Campaign How much cost to get 1,000 consumer Impressions
Average Cost for each customer that clicked a dealers online advertisement Average cost for each lead generated by a digital advertising campaign Total campaign cost divided by the number of vehicles sold and attributed

Cost per Thousand (CPM)

Cost per Click (CPC) Cost per Lead (CPL or CPA) Cost per Vehicle Retailed (PVR)

Types of On-line Targeting

Geographic Behavioral
Target car buyers in specific locations Target prospects whose recent online behaviors indicate high interest in purchasing a car Target prospects while they are viewing automotive-related content on the Internet Target prospects based on your ideal market demographics Target prospects who have already visited your website leverage all media

Contextual

Demographic Retargeting

What does it look like when we evaluate an Integrated Advertising Campaign (4 months)
33,257,657 Impressions Generated How many times the ads were seen 29,528 Visits to the dealers web sites, landing pages and micro sites 2,248 Electronic Leads and Phone Calls Generated $71,801 Integrated Campaign Cost Multiple media channels $2.16 Cost per Thousand (CPM)- How much to get 1,000 Impressions $2.43 Average Cost per Visitor to dealers site $31.94 Average Cost per Lead Generated $412.65 Average Cost Per Vehicle Retailed (PVR), (compares to $620.55 YTD)

174 Vehicles Sold You know what this means!

Which Advertising Networks Recommended for 2012 Honda Civic Launch?

Facebook Advertising
http://www.facebook.com/advertising/
Reach Your Target Customers; Choose your audience by location, age and interests

Google Advertising Network

http://adwords.google.com
Site examples: CNN, MySpace, New York Post, Macworld, HowStuffWorks, Univision, AutomotiveForums, Swapalease, Kudzu and thousands more.

Kelley Blue Book In-Market Vehicle Shopper Network

http://www.kbb.com/company/advertising/dealer
Site examples: Consumer Guide Automotive, J. D. Power & Associates, NADA Guides, Vehix.com, Shopping.com, Motortrend, Car and Driver and many more.

Yahoo! Advertising Network

http://advertising.yahoo.com/central/solutions/auto/
Site examples: Ebay Motors, Yahoo! Autos, Yahoo! News, Yahoo! Email, Comcast, AT&T, Cars.com, WebMD, Forbes and thousands more.

Key Dealership Action Items

Search the web, learn the landscape
City Name and Honda Civic

Open Google Ad Words Account

Create a PPC search campaign based on Honda Civic terms geo-targeted to your PMA

Set up a Facebook Profile for Dealer Principal

Create Honda Civic Fan Page Build a Facebook Ad campaign about the all new 2012 Honda Civic that points to your Fan Page Invite Fans to test drive the 2012 Honda Civic

Thank You!
Ralph Paglia Ralph@Tier10Marketing.com Cell: 505-301-6369 www.RalphPaglia.com www.Tier10Marketing.com www.2012CivicLaunch.com