Auto Dealership is the retail business of automobiles . The word Auto is a short form of Automobile, which is a common name for various vehicles. In German, the Automobile Dealer means Autohändler and the Auto Dealership means Autohandlung. In Russian.
2. REFERENCE TO MANAGEMENT THEORIES:
2.1 Henry Fayol: Henry Fayol is known for his thoughts on management process . A manager performs 5 types of functions viz. Planning, Organising Command Coordination and Control . Basically management means getting work done from others . In the context of our topic, a dealer has to plan and execute the retail sales activity. 2.2 Fredrick W. Taylor: F. W. Taylor is called the pioneer of "Scientific Management". He gave importance to professional training. In the context of our topic, professional training to workshop technicians and salesmen results in high profits.
3. DEALERSHIP ACTIVITIES:
Dealing: One of meanings of dealing is bargaining. A dealer makes bargaining at two levels . While purchasing he deals with the manufacturer and while selling he deals with customers . Purchase: The automobiles are purchased in bulk and are stored in warehouse . This job requires separate logistics management . Few vehicles are kept in showroom as samples . Showroom: Vehicles are kept on display. Showcases and revolving platforms are used for the display of automobiles. Salesmen explain the special features of vehicles . Test rides are arranged for giving driving experience. Advertising: New vehicles are advertised in newspapers and electronic media . This advertising is generally done by the manufacturer. Manufacturers offers are advertised. But at the same time, individual dealers also have their offers, for which the do dealer level advertising . Advertising includes printed literature of vehicles . Folders leaflets are designed and printed. The give information about the vehicles and dealer\'s offers . Festival time is the peak season of sales, e .g. Christmas. During this period, the printed matter is in demand . Documentation: Automobiles require various documents. There is agreement of Hire Purchase, which has details of installments of payment . Vehicle Registration, Insurance etc documents are processed by dealers so as to offer various services under one roof. Generally documentation service charges are added to the price of vehicle. During peak season some dealers give offers of zero documentation charges. Customer Relations: Customer relations are maintained so that they should come again for second purchase . Good relations also results in dealer\'s indirect advertising . By word of mouth, dealer\'s information is forwarded by customer to his friends.
4. WORKSHOP:
Dealer has workshop for repair and maintenance of vehicles . While selling new automobile, accessories are fitted in the workshop . Every auto manufacturer offers some free services, which are performed in the workshop against coupons. Besides this paid services are offered in the workshops . The workshop needs suitable workspace, stock of spare parts and trained staff. There are platforms for washing and repairing. Sales of spare parts and repairing is a side business of auto dealership.
5. CLASSIFICATION OF DEALERSHIP ACTIVITIES:
Technical Activities: The selection of vehicles, repairs and maintenance are the technical activities. Commercial Activities: Bargaining at sales and purchase levels, advertising, financial management are the commercial activities. Customer Relations : This includes retaining of old customers and treating motivating new customers. Office Activities: Dealer has to make correspondence, keep telephonic contacts. He has to maintain various records in files. Receipts are issued when money is accepted. Vouchers are signed when money is spent. All these activities are done by the office personnel.
6. SALES BOOSTERS:
Events related to automobiles are organized. e.g. Treasure Hunt. This type of racing is directly related to vehicles . Manufacturers sponsor such activities. Another attractive activity is of Vintage Automobiles Rally . Large cities have trade fairs and exhibitions . Automobile Dealer participates in these events either in personal capacity or on behalf of manufacturer.
7. DEALERSHIP WEBSITE:
Website is the online presence of dealer. The website has details of various vehicles. Sales offers are explained there. For quick contact, chat room is provided, which is responded by the dealers office. Online booking facility is provided. This is useful in peak season and waiting period . Sometimes new vehicles are booked in advance and after waiting period delivery is made. Website is suitable in such cases. Online transactions are managed through secure server or directly by bank. Website is an online showroom of dealer. Various vehicles can be displayed by using images and animations. Newsletters are sent by emails. Newsletters are helpful in keeping touch with the old customers . Newsletters also do the job of impact advertising.
8. DEALERSHIP PREMISES:
In the front there is display of new automobiles. Large Hoarding or Sign Board is kept . This is done to make impact advertising. For old customers, there is workshop for doing repair works . Showcases and display windows are decorated for advertising the automobiles . Large vehicles need large enclosures . Generally a sample vehicle is kept at the showroom and delivery is made from the warehouse. Office of dealer has two main sections to deal with old and new customers. Old customers come for servicing. Booking of repairing service work is done and vehicle is forwarded to workshop. New customers are dealt by the trained sales persons .
9. AUTO DEALERSHIP TYPES:
Company Shops: These are the retail outlets of manufacturers. It is part of main business of the manufacturer. Dealer is in fact retail level manager of the company . He works like any other shopkeeper but profits and losses belong to the main company. He gets a regular salary and is responsible to the higher level sales manager. Cooperatives: Cooperative Organizations are run by members themselves and profits are shared among the members . Employees of large organizations have their cooperative groups . Collective Bargaining is the feature of cooperatives. There is always guarantee of low pricing and hence advertising is minimum. This type of dealership enables bulk sale .
10. SUMMARY:
Auto Dealership has two main work areas viz sales and maintenance. Dealer has various activities to perform viz bulk purchase, retail sales, advertising, customer relation, repairs and maintenance, general office work, banking, insurance documentation etc. Sales and Repairs require trained specialized staff.
2. REFERENCE TO MANAGEMENT THEORIES:
2.1 Henry Fayol: Henry Fayol is known for his thoughts on management process . A manager performs 5 types of functions viz. Planning, Organising Command Coordination and Control . Basically management means getting work done from others . In the context of our topic, a dealer has to plan and execute the retail sales activity. 2.2 Fredrick W. Taylor: F. W. Taylor is called the pioneer of "Scientific Management". He gave importance to professional training. In the context of our topic, professional training to workshop technicians and salesmen results in high profits.
3. DEALERSHIP ACTIVITIES:
Dealing: One of meanings of dealing is bargaining. A dealer makes bargaining at two levels . While purchasing he deals with the manufacturer and while selling he deals with customers . Purchase: The automobiles are purchased in bulk and are stored in warehouse . This job requires separate logistics management . Few vehicles are kept in showroom as samples . Showroom: Vehicles are kept on display. Showcases and revolving platforms are used for the display of automobiles. Salesmen explain the special features of vehicles . Test rides are arranged for giving driving experience. Advertising: New vehicles are advertised in newspapers and electronic media . This advertising is generally done by the manufacturer. Manufacturers offers are advertised. But at the same time, individual dealers also have their offers, for which the do dealer level advertising . Advertising includes printed literature of vehicles . Folders leaflets are designed and printed. The give information about the vehicles and dealer\'s offers . Festival time is the peak season of sales, e .g. Christmas. During this period, the printed matter is in demand . Documentation: Automobiles require various documents. There is agreement of Hire Purchase, which has details of installments of payment . Vehicle Registration, Insurance etc documents are processed by dealers so as to offer various services under one roof. Generally documentation service charges are added to the price of vehicle. During peak season some dealers give offers of zero documentation charges. Customer Relations: Customer relations are maintained so that they should come again for second purchase . Good relations also results in dealer\'s indirect advertising . By word of mouth, dealer\'s information is forwarded by customer to his friends.
4. WORKSHOP:
Dealer has workshop for repair and maintenance of vehicles . While selling new automobile, accessories are fitted in the workshop . Every auto manufacturer offers some free services, which are performed in the workshop against coupons. Besides this paid services are offered in the workshops . The workshop needs suitable workspace, stock of spare parts and trained staff. There are platforms for washing and repairing. Sales of spare parts and repairing is a side business of auto dealership.
5. CLASSIFICATION OF DEALERSHIP ACTIVITIES:
Technical Activities: The selection of vehicles, repairs and maintenance are the technical activities. Commercial Activities: Bargaining at sales and purchase levels, advertising, financial management are the commercial activities. Customer Relations : This includes retaining of old customers and treating motivating new customers. Office Activities: Dealer has to make correspondence, keep telephonic contacts. He has to maintain various records in files. Receipts are issued when money is accepted. Vouchers are signed when money is spent. All these activities are done by the office personnel.
6. SALES BOOSTERS:
Events related to automobiles are organized. e.g. Treasure Hunt. This type of racing is directly related to vehicles . Manufacturers sponsor such activities. Another attractive activity is of Vintage Automobiles Rally . Large cities have trade fairs and exhibitions . Automobile Dealer participates in these events either in personal capacity or on behalf of manufacturer.
7. DEALERSHIP WEBSITE:
Website is the online presence of dealer. The website has details of various vehicles. Sales offers are explained there. For quick contact, chat room is provided, which is responded by the dealers office. Online booking facility is provided. This is useful in peak season and waiting period . Sometimes new vehicles are booked in advance and after waiting period delivery is made. Website is suitable in such cases. Online transactions are managed through secure server or directly by bank. Website is an online showroom of dealer. Various vehicles can be displayed by using images and animations. Newsletters are sent by emails. Newsletters are helpful in keeping touch with the old customers . Newsletters also do the job of impact advertising.
8. DEALERSHIP PREMISES:
In the front there is display of new automobiles. Large Hoarding or Sign Board is kept . This is done to make impact advertising. For old customers, there is workshop for doing repair works . Showcases and display windows are decorated for advertising the automobiles . Large vehicles need large enclosures . Generally a sample vehicle is kept at the showroom and delivery is made from the warehouse. Office of dealer has two main sections to deal with old and new customers. Old customers come for servicing. Booking of repairing service work is done and vehicle is forwarded to workshop. New customers are dealt by the trained sales persons .
9. AUTO DEALERSHIP TYPES:
Company Shops: These are the retail outlets of manufacturers. It is part of main business of the manufacturer. Dealer is in fact retail level manager of the company . He works like any other shopkeeper but profits and losses belong to the main company. He gets a regular salary and is responsible to the higher level sales manager. Cooperatives: Cooperative Organizations are run by members themselves and profits are shared among the members . Employees of large organizations have their cooperative groups . Collective Bargaining is the feature of cooperatives. There is always guarantee of low pricing and hence advertising is minimum. This type of dealership enables bulk sale .
10. SUMMARY:
Auto Dealership has two main work areas viz sales and maintenance. Dealer has various activities to perform viz bulk purchase, retail sales, advertising, customer relation, repairs and maintenance, general office work, banking, insurance documentation etc. Sales and Repairs require trained specialized staff.
No comments:
Post a Comment