As we all know by now, the automotive industry in North America is going through some pretty tough times. Chrysler’s deal with Fiat, from what I’ve heard, is now being finalized and it should be a done deal to keep Chrysler afloat at least in the short term. Similarly, a restructuring plan is in place with General Motors that will see the death of several of the GM brands, streamlining their business so that they can better survive the recession.
We’ve heard all sorts of reports and analysis from so-called experts, but what about information straight from the horse’s mouth? I was watching television the other night when I saw a new commercial from General Motors. It wasn’t advertising a new car or pushing the pending availability of the Chevy Volt. Instead, its primary goal was to re-establish the trust that we once had in the brand. In the commercial, it say that GM wasn’t “going out of business”; instead, they’re “getting down to business.”
On the surface, it seems like it was a good idea for General Motors to address the public directly, discussing some of the issues that may be raising concerns for consumers. They address the issue of having too many brands and how a streamlined auto manufacturer will be better able to weather the economic storm.
That said, given the worries over bankruptcy and the shortage of funds, it does seems a little odd that General Motors would invest the extra money to create this new marketing campaign and to purchase primetime spots on our television schedules. Does this give the public the impression that GM is wasting their money on marketing when they should be spending that money ensuring their long-term sustainability? I’m not sure.
What do you think? Was it a good idea for GM to purchase advertising on television if only to say that they are “getting down to business” and not “going out of business”?
DM
June 11, 2009 2:24 pm
Yes… I totally feel it was required. Not in the whole “you have to spend money to make money” way, but the need is there. The economic state is not getting any better soon. Think about this… how many people do you think have GM and/or one of their subsidiaries in their RRSP portfolio? The cost not to reaffirm their position would be more catastrophic to our economy than the $$ spent on advertising. Plus it all goes hand in hand with rebuilding our economy as a whole. Many companies have dropped and/or cut back their advertising dollars during this crunch so the networks that have been losing money are more than likely to negotiate some pretty good deals to gain business for themselves, everyone has a vested interest is what I am saying. It all does boil down to trust… can I trust that I won’t have to support 10 of GM’s employees in their retirement because they lost their jobs? Makes me a little less nervous on the state of MY economic future and a little easier to make decisions on spending my money. But I guess unfortunately, it all does come down to “you have to spend money to make money”… we as consumers have all the control on how this recession will play out….
Conveyancing
June 11, 2009 10:29 pm
I don’t know that it is good idea or bad But many people believe that marketing is just about advertising or sales. However, marketing is everything a company does to acquire customers and maintain a relationship with them. Even the small tasks like writing thank-you letters, playing golf with a prospective client, returning calls promptly and meeting with a past client for coffee can be thought of as marketing. The ultimate goal of marketing is to match a company’s products and services to the people who need and want them, thereby ensure profitability
Dr. Cossack
June 12, 2009 10:19 pm
I think that it’s always required at this point. GM used to be seen as such a strong company that it was a reference point to many. Now, however, all we associate it with is “bankruptcy”, “dead brands”, “no sales”, “government takeover” and so on. If they are to stick around for an extra century, they need to let people know that they’re reorganizing for the better.
Conveyancing
June 12, 2009 11:41 pm
I dont quite understand because i need to write about a marketing issue from the newspaper or a magazine. Can someone give me some examples? i dont expect anythign specific. What kind of articles would be typical for a marketing issue.