CDK DIGITAL MARKETING: ADDRESSING CHANNEL

CONFLICT WITH DATA ANALYTICS

Course Name: Strategic Marketing Management

Course Code:

Submitted To:

Raihan Sharif

Assistant Professor

Adjunct Faculty

Department of Business Administration-General

Bangladesh University of Professionals

Submitted by:

Group 6

Shah Nasif Fardin - 2023011021

Sayka Binte Razzaquer - 2023011024

Sheikh Hamim Mahdir Dayeen - 2023011095

Adib Al Wasy - 2023011110

Department of Business Administration-General

 ACKNOWLEDGEMENT
Firstly, we want to thank the Almighty Allah for giving us the strength, knowledge,
wisdom, ability, and opportunity to complete this research study and persevere and
complete it satisfactorily. Without His showering of blessings, this term paper would not
have been possible to have readily accomplished.

It is an extraordinary occasion for us to write on the topic, "CDK Digital Marketing:

Addressing Channel Conflict With Data Analytics" given by the course teacher of
course SCM 4704, regarding this very aspect. We had to decide on our notions and
promotions to portray the background stories and foresight. When preparing this term
paper, we researched by going through divergent official websites, blogs, watching
videos on YouTube, going through news articles published in various newspapers,
magazines, and online portals. We were mostly dependent on secondary data to make
this report. We focused on topics that are pertinent to our research needs and
credentials.

We acknowledge with gratitude to Assistant Professor Raihan Sharif, our respected

course teacher. He has always been sincere and assistive in understanding the legal
research systems and conceptual problems in our term paper. Apart from us, this
research paper would be of immense importance to people fostering ideas and
understanding the supply chain of H&M. We have shown briefly how these work from
the perspective of maintenance for the business to run.

We have tried heart and soul to retrieve and accumulate all pertinent and relevant
documents regarding our group's selected topic. We hope you will consider our flaws if
found. We are very grateful and delighted to make such a term paper.

Regards,
Group
 Problems
After a thorough analysis of the case, we found there to be 4 specific problems for CDK
Digital Marketing. We’ve talked about them is details below-

Balancing The Interests of Dealerships and Manufacturers

CDK Digital Marketing is facing a crucial contract renewal with General Motors at the
end of 2012. The company is the exclusive website vendor for General Motors' network
of 4,000 dealers in the United States. The main problem that CDK Digital is facing is
Channel Conflict between manufacturers and dealers in the automotive industry.
Dealers wanted a digital platform that was easy to customize, while the manufacturers
wanted a website that would communicate a consistent brand image. Dealers wanted a
website that would allow them to sell the items that were popular in their area, while
manufacturers wanted to sell more OEM parts. Although GM required that dealers use
CDK's site, less than half of them used it as their primary sales platform.

The company has to balance the interests of both parties, which can be difficult given
their different goals and priorities. Dealerships want to promote their own brand and
differentiate themselves from competitors, while manufacturers want to promote the
overall brand and ensure consistency across all dealerships. This creates a conflict of
interest between the two parties, which can be challenging to resolve.

Real-Time Content Customization and Analytics

CDK Digital Marketing's platform uses data analytics to customize content to individual
consumers in real time based on their specific online car-buying journey. This means
that the website content and advertising messages are tailored to each visitor's
preferences, behaviour, and location. For example, a visitor who searched for a
compact car in Seattle would see different content and offers than a visitor who
searched for a pickup truck in Dallas. This way, CDK Digital Marketing aims to provide a
more relevant and engaging experience for each consumer and increase the conversion
rate of online leads to sales.

However, there are some challenges in developing and maintaining the platform. To
provide this level of personalization, CDK Digital Marketing needs to have a
sophisticated advertising platform and "big data" capabilities, which can be challenging
to develop and maintain. The platform requires collecting and analysing large amounts
of data from various sources, such as consumer web browsing history, dealer inventory,
manufacturer incentives, regional market conditions, and third-party data providers. The
platform also needs to have a flexible and scalable architecture that can handle the high
volume and variety of data and deliver customised content in real time. Moreover, the
platform needs to comply with the privacy and security regulations of different states
and countries, as well as the policies of GM and its dealers. Developing and maintaining
such a platform requires significant investment in technology, talent, and infrastructure,
which can pose a competitive disadvantage for CDK Digital Marketing compared to
other digital marketing providers that offer simpler or cheaper solutions.

Ethical and Legal Considerations

The use of customer data to optimise digital marketing campaigns raises ethical and
legal considerations, such as privacy concerns and compliance with regulations like
GDPR. This means that CDK Digital Marketing has to respect the rights and
preferences of the consumers who visit the dealer websites and provide them with clear
and transparent information about how their data is collected, used, and shared. CDK
Digital Marketing also has to comply with the laws and regulations of different
jurisdictions that govern the collection, processing, and transfer of personal data, such
as the General Data Protection Regulation (GDPR) in the European Union. These laws
and regulations may impose strict requirements on CDK Digital Marketing, such as
obtaining consent from consumers, providing access and deletion rights, implementing
data security measures, and reporting data breaches. Failing to comply with these
ethical and legal considerations may expose CDK Digital Marketing to reputational
damage, consumer complaints, regulatory investigations, and legal sanctions.

Weaknesses in The Current CDK Digital Solution

Dealerships may be aware of weaknesses in the current CDK Digital solution, such as
the website template being too restrictive and not allowing dealers to "be themselves,"
weak tools for website administrators, and limited SEO capabilities. The website
template provided by CDK Digital was not flexible enough to accommodate the unique
needs and preferences of each dealer, which made it difficult for them to differentiate
themselves from their competitors and create a distinctive brand image. The tools for
website administrators were also not user-friendly or intuitive, which made it hard for
them to manage and update the website content efficiently. Moreover, the SEO
capabilities of the website were limited, which meant that it was not optimised for search
engines and could not attract as much organic traffic as desired. These weaknesses in
the current CDK Digital solution could lead to lower customer engagement, lower
conversion rates, and lower ROI for dealerships.

Source:
(1) SOLUTION: Cdk Digital Marketing - Studypool.
https://www.studypool.com/documents/10642827/cdk-digital-marketing-2.
(2) CDK Digital - What misalignment(s) caused channel conflict ... - Studocu.
https://www.studocu.com/en-us/document/university-of-louisiana-at-lafayette/
marketing/cdk-digital/54036209.
(3) CDK Digital Marketing: Addressing Channel Conflict with Data Analytics ....
https://www.emerald.com/insight/content/doi/10.1108/case.kellogg.2016.000058/full/
html.
(4) CDK Digital Marketing Addressing Channel Conflict - Casehero.
https://www.casehero.com/cdk-digital-marketing-addressing-channel-conflict-with-data-
analytics/.

Source:
(1) CDK Digital Marketing Addressing Channel Conflict - Casehero.
https://www.casehero.com/cdk-digital-marketing-addressing-channel-conflict-with-data-
analytics/.
(2) CDK Global Earns Digital Marketing Spot with GM ... - Business Wire.
https://www.businesswire.com/news/home/20190913005470/en/CDK-Global-Earns-
Digital-Marketing-Spot-GM.
(3) CDK Global Earns Digital Marketing Spot with GM ... - Business Wire.
https://www.businesswire.com/news/home/20190913005470/en/CDK-Global-Earns-
Digital-Marketing-Spot-with-GM-Serving-Dealers-for-15-Consecutive-Years.