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
I wonder what will happen in the future with GM's other brands as a result of this. I think this signals a downsizing for GM since one of their conditions in the bailout stated that the company downsize in general, and shifting more focus to Chevy defiantly means leaving other brands somewhat behind. I think this could be leading up to GM discontinuing another brand, just as it dropped Hummer.
ReplyDeleteThis could be good for the consumer (even if GM doesn't drop a brand) since more resources are being put into Chevy. Either way, the consumer should get a better quality car as a result.