"Tweeting to Sell Cars"

As the Automotive Industry becomes increasingly competitive automobile companies are becoming more and more creative with marketing and advertising strategies.  With social-netoworking becoming a necessity in this day and age, auto companies have seized the opportunity to use social-networking as a  way to advertise their product.  This new strategy is much cheaper than the regular television ads and it focuses on attracting followers.

Toyota Motor Co. is now using individuals that have numerous followers on twitter, facebook, and other forms of social media to advertise their products. "If we have people that are active in social media, then they can bring followers with them," said Dave Nordstrom, vice President of Marketing.  


Social networking is the way of the future that can be used for a variety  of uses. I believe that the automotive industry is taking social networking to a new level by having advertising included in social networking. However, I believe that if this is to get out of control, advertising in social networking will overwhelm individuals and they will treat it as "spam".


http://online.wsj.com/article/SB10001424052748704658204575610593926104822.html
Patrick Mehlert 

Gm makes a recovery

GM is on a fast paced recovery from their complete collapse from a couple years ago. They sold 478 million shares yesterday at 33 dollars a share. They have been paying back the government for bailing them out of bankruptcy and now are on the verge of becoming a powerful company again. The steps they have made in the past years have saved their company and are putting them on top of the competition.

I am proud of GM making such a huge recovery. It went into a huge slump but it didnt give up and with some help from the government which they are paying back now they got back on top. I think that as GM gets more ownership back from the government they will start producing better products and then start creating more profits. I think that it is an upward latter from here for GM and I excited to see what happens from her on out.

http://online.wsj.com/article/SB10001424052748704648604575620833385520438.html?mod=WSJ_business_LeadStoryCollection

"'Black Ops' Jeep Imitates Videogame"

Recently in the video game world there is a great deal of hype about the new Call of Duty: Black Ops game.  Like the games before 'Black Ops' fans have camped outside video game stores waiting for the release of the game, which released Wednesday at 12:00am.

How is this related at all to the automotive industry?

For the first time in the automotive industry's history a car company will have its own car in the video game.  The Jeep Wrangler, built by Chrylser, will be a vehicle in the video game.  Chrysler has now produced between 2500 and 3000 of the limited edition Jeep Wrangler Call of Duty: Black Ops model.  This is the first time that a brand name vehicle will be in a video game other than certain racing games.

This event may have a great effect on the marketing strategies of automobile companies.  Companies are becoming more and more creative in advertising and marketing specific models. We have seen in the past brand name cars in Hollywood movies, but now video games is a new level. It astonishes me how people in marketing come up with these ideas after there have already been so many different marketing strategies.

http://online.wsj.com/article/SB10001424052748703665904575600730385399558.html?mod=WSJ_auto_IndustryCollection

Patrick Mehlert

Ford See Profits Rise

Recently customers have been buying more Ford cars. Ford has reported that in the month of October their sale have gone up 12% since last year. This is the highest rate for new car sales in over a year for Ford. Buying domestic cars not only helps the company but it also helps all of the american who are working for the company. This is could one of the incentive to buying a Ford, to help your fellow americans. Ford has also offered a multitude of mid-size compact cars that have been selling in large quantities. People are becoming more environmentally aware and are doing what they can to help the planet as well as save money and ford offers multiple cars that fits those qualities.

I think that it is a good thing that Ford sales have gone up because it shows that people are starting to spend money and this will stimulate the economy. It also shows that Americans have confidence in the cars that Ford is offering which will keep the trend going. The more cars sell, then the more people will believe that it is a legitimate car that is worth spending money on. This also helps make other companies produce better products because they are facing tougher competition.

http://online.wsj.com/article/SB10001424052748704462704575590662948503410.html?mod=WSJ_auto_IndustryCollection

"Fuel-Economy Rules Raise Bar for Engine Makers"

Last Monday the Obama administration disclosed the nation's first fuel-economy rules for trucks and buses.  These rules are to be established in 2014 which will require engine manufacturers to start heavy research and development on fuel efficiency and pollution controls.  Starting in 2018 these engines will be required to reduce fuel usage and carbon-dioxide emissions by 20%.

A major player in the auto industry for engines is Cummins Inc. They believe that they will be able to achieve the goal of meeting the rules by budgeting research and development spending at 4% of sales.  In addition to their own budgeting, the US Department of Energy provided Cummins with $54million to help pay for the research and development.  However, Cummins faces the new challenge from car companies building their own engines rather than buying from Cummins. This creates competition within this specific group of the industry.

This article is very important as it covers how the US is now responding to the need of a more fuel-efficient  auto industry. In addition it also includes how companies use certain business tactics to benefit more. This is illustrated in the truck manufacture's, Paccar and Navistar, strategy to build their own fuel-efficient engines rather than buying from Cummins.  To me this is article is very important as it shows the US is now taking important steps to creating a cleaner environment and how the Auto industry responds to it.

http://online.wsj.com/article/SB10001424052702303891804575576570268041664.html

Patrick Mehlert

"GM Pouring Ad Money Into Chevy Brand"

Recently GM has been putting a lot of effort into its marketing campaign for Chevrolet Motors.  In this past GM has had weak marketing strategies when it comes to Chevy, however, now GM is ready to make a change.  The new marketing strategy of Chevy is trying to use the theme of American identity to appeal to the customer.  To illustrate the struggles that the Chevy's marketing has encountered, one can look at the how Chevy has fired and replaced three marketing chiefs in that last two years. In addition Chevy has let go of its ties with Campbell -Ewald, a marketing firm. This was a huge step as the two companies ended their 91 year relationship.  To start, the new marketing chief, Joel Ewanick, has claimed that GM is now spending 70% of its ad budget on Chevy and will increase its total spending by 3% to 5%.

This event has a huge effect on the marketing aspect of the Automotive Industry.  From this, Chevy will be having a huge impact in the near future.  Chevy will hopefully benefit greatly from GM's actions.  This marketing campaign will further enhance the competition among car companies.  More money will be poured into marketing campaigns throughout the Automotive Industry.

As a student I now understand how important and delicate marketing is in the Automotive Industry.  It is what can make or break a company.  The company relies on its marketing to appeal to the consumer, and therefore result in sales.  If GM is willing to spend $2.2 billion on ads, then you know that marketing is a very influential part of its company.

http://online.wsj.com/article/SB10001424052702304173704575578073119960604.html?mod=WSJ_auto_IndustryCollection

Patrick Mehlert

There are many different types of segmentation within the automotive industry. The market is segmented into different groups. Some of these groups include: luxury cars, trucks, environment friendly cars, affordable cars, family cars, and even vintage cars. The different segments represent the different areas that companies think they can have the most sales. Ferrari looks to dominate the luxury vehicles by offering one of the nicest and fastest cars available. They don't advertise to many different groups. While Toyota would go after more people in the "green" segment with their prius. Ford looked to try and dominate the midsize sedan segment with their Ford Focus. They were competing with the Toyota Camry, so far the camry is doing much better in the midsize sedan segment.

The segmentation within the automotive industry helps divide up the market so that different types of cars can be advertised and sold to specific people. This reflects how the industry works because it shows the different aspects of every company. It shows how they create cars for different people. They group people into segments and then create vehicles that they think will be popular.

http://www.msnbc.msn.com/id/19636744/