What if you had a crystal ball to know what market demand was going to be next month – high, medium or low? What if you could discover which vehicle models were going to be hot, warm or cold? And what would you do if you knew if your automobile brand has the best or worse incentives in the market?

If you had a crystal ball that could make these predictions for the next month, would you act on that information? Our crystal ball says you would!

From market demand to vehicle models to incentives – these are all key contributors to your dealership’s performance in the coming month and why it is vital to consider them, and other market conditions, when making decisions about your advertising. In this best practice blog series, we’ll focus on market demand.

Below is a chart which shows three scenarios where Market Demand is High, Medium or Low. We then identified for you the operational and advertising Actions you should take and the various Decision Considerations you will want to make based on these market demand scenarios. If done right, this guideline will lead to optimized sales performance and maximized return.

Market Demand Scenario	Operational & Advertising Actions	Decision Considerations
HIGH	Nominal decrease in marketing and advertising Plan for adequate sales, operations staffing Increase inventory levels Nominally increase vehicle profit margins	Determine which geographies to decrease, maintain and increase Focus your advertising on vehicles with low and average demand Increase inventory levels for high demand vehicles
MEDIUM	Maintain average marketing and advertising Plan for nominal decrease in staffing Maintain inventory levels Maintain vehicle profit margins	Determine which geographies to decrease, maintain and increase Focus more advertising on vehicles with low and average demand.
LOW	Increase marketing and advertising Plan for decrease in staffing Maintain inventory levels Decrease vehicle profit margins	Determine which geographies to decrease, maintain and increase Focus more advertising on vehicle with low demand

“This is all very well and good, but how can I get these predictions,” you ask? With iAuto Analytics’ MarketScope! When planning your advertising actions for the coming months, you will want the right data at your fingertips to ensure you are getting the best returns. If this sounds like something you need to outperform your competition, contact us. We can help your dealership with predictive recommendations and make the most of your advertising investments.

Best Practice Series: Market Demand