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March 24th, 2015

J.D. Power and MarketShare: Aligning Marketing and Incentives for Automakers—and Solving a Major Industry Challenge

For many automakers, one of the biggest marketing challenges is knowing which marketing "lever" to pull, and how. Tools like dealer incentives and price discounts—effectively, money set aside to attract buyers—are extremely powerful at delivering immediate purchases. At the same time, marketing "drives" customers to dealerships, and also contributes to long-term brand value. While both of these initiatives are critical for establishing sales and revenue, knowing how much budget to allocate for each is amongst the biggest sales challenges that automakers face.

To get a sense of the problem, consider the following (intentionally exaggerated) example. If auto brands put all their sales driver budget into pricing and incentives, but none into marketing, then they might do great work moving cars off the lot based on price alone. But there would be no "brand story" to promote interest over the long-term; and in the near-term, there would be no way to inform interested buyers of the fantastic pricing available, either. Conversely, if auto manufactures were to spend their entire marketing budgets on breakthrough advertising, they might do a stellar job driving brand interest—only to lose on pricing once buyers head to the dealership. Obviously, for every marketer, the solution lies somewhere in the middle. But where?

Until now, this has been a deeply difficult problem for automakers to solve. Different groups are tasked with looking at marketing and pricing, across different software systems that help these teams calculate how
much to spend and where. Different software means there's little chance to gain "a single version of the truth" on how to align marketing and incentives together to reach that "happy medium". As a result, it's very hard to strike the right balance.

Today, we're pleased to announce a major new collaboration that's solving this real problem. Through our new alliance with global marketing information services company J.D. Power, MarketShare is producing new
solutions that help marketers coordinate incentives and marketing—from the brand to the dealership level.

Our companies will work to connect data, models, tools and reporting between our respective industry-leading analytics offerings: J.D. Power's Power Information Network® (PIN), which guides sales, pricing and
incentive decisions at automakers and dealerships throughout the U.S.; and our own MarketShare DecisionCloud™.

Together, we'll provide analytics, insights, and guidance on the right way to allocate marketing and incentive budgets across automotive brands—to contribute to short term sales, long term growth, and lots of profitability in between.



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