Bailed-Out GM Fumbling with Marketing Themes

National Legal & Policy Center ^ | September 12, 2011 | Mark Modica

[jazusamo]

The weakness of General Motor's management team regarding one of the most basic concepts of car sales has surfaced as the company tries to learn how to effectively market its vehicles. An article on thespec.com points out that GM's "Chevy Runs Deep" ad campaign has not resonated well with consumers. No big surprise there. Management, led by an Obama appointed non-car guy, CEO Dan Akerson, continues to try and sell cars through the use of ineffective ads that focus on patriotism and politically driven themes as opposed to focusing on specific product offerings.

According to the piece, the "Chevy Runs Deep" campaign has not boosted showroom traffic and data from Edmunds.com confirms that the ads have done little to boost consumer shopping for Chevy. Considering that GM has an annual ad budget of about $4 billion, the taxpayer supplied funds are not being spent wisely. While it may buy some favorable coverage from TV news networks regarding GM's actions, the money spent advertising is not giving an impressive return for the investment.

Akerson has displayed little understanding of the car business. Of course, Akerson is not solely responsible for ad themes, but he does bear ultimate responsibility. Early on in his tenure, Akerson made statements that he wanted to use humor in GM ads to sell vehicles. He followed this with claims that the Chevy Volt and China sales would be the drivers of GM profitability. GM even went so far as to have the term "range anxiety" trademarked for use in its ads. None of Akerson's proclamations are panning out, and the range anxiety approach has led more to credibility anxiety than it has to Chevy Volt sales.

We now can turn to GM's latest display of misguided marketing themes. The idea that consumers would buy a car from a bailed out company based on feelings of patriotism because the brand "runs deep" is laughable, or at least would be if taxpayers weren't losing so much money. Add to this the hypocrisy displayed by GM referencing a long history for Chevy as they use its bankruptcy proceeding to relieve itself of liabilities from defective vehicles, like the Chevy Impala, because the vehicles were manufactured by "old" GM and the current GM is a "new" company. I really don't think most Americans feel that GM is the picture of patriotism after taking billions of taxpayer dollars to restructure. Besides, what the heck does Chevy running deep actually mean?

Next up is Akerson's latest brainstorm. SpikeDDB, GM's "black ad agency", created another spot called "Table of Brotherhood." This latest campaign revolves around people of different ethnicities listening to a Martin Luther King, Jr. speech. Akerson feels this is a powerful message and wants to use it "extensively." The guy does not seem to be learning on the job as he continues to miss the basic premise of the car business.

I offer up this advice to GM. Forget the politics! Unprofitable green vehicles, praising racial harmony and expecting American consumers who were bilked of billions of dollars to bail out GM to then support the company because they are patriotic will not drive sales. Car sales are emotionally driven and offerings of exciting vehicles that offer value over competitors will be the main path to profits. GM will have a hard time completing its turn around if they can not learn these simple facts. In a nutshell, stop acting like Government Motors and return to the basics.

Mark Modica is an NLPC Associate Fellow.

[1rudeboy]

I like the Chevy truck ad where the guy fixes it because he sees that photo of his dad stored in the glove compartment.

[ETL]

How about creating a car inspired by the Great Leader? They can call it the “GM Zero”.

[lormand]

I used to be a Chevy guy, but what Hoffa said the other day has me doggedly determined to never buy another car manufactured by an American Union.

[driftdiver]

One thing the “Runs Deep” marketing campaign has correct is that Chevy’s spend a lot of time at the mechanic.

:)

[Diana in Wisconsin]

New ad: “You may as well buy from us; IT’S YOUR MONEY, ANYWAY!”

[HiTech RedNeck]

deep in bovine manure, maybe

[jazusamo]

I don’t watch much TV and don’t pay attention to ads when I do but I think Modica makes a great point here about GM trying to sell vehicles using a patriotism theme after them and their UAW being bailed out with our money.

[Lazlo in PA]

"For a limited time, come in to buy a Chevy Volt and get a free toaster. We call it our 'Buy One Toaster, Get A Second One Free' Promotion."

[Virginia Ridgerunner]

Related:

Add Impala Owners to “Hosed by GM Bankruptcy” List

GM says bankruptcy excuses it from repairs on 400K cars (heads up, 07+08 Impala owners)

[dartuser]

I like it too ... but I also wonder about the wisdom of promoting the idea of fixing your old vehicle instead of buying a new one.

A better idea would have been to have the kid buy a new truck and take a similar picture with HIS son and put that picture (along with the old one) in the new truck ...

[jazusamo]

New ad: “You may as well buy from us; IT’S YOUR MONEY, ANYWAY!”

Right on, Diana! Most appropriate.

[COBOL2Java]

...Considering that GM has an annual ad budget of about $4 billion, the taxpayer supplied funds are not being spent wisely.

What's this? Not spent wisely? I'm shocked!

[Mr. Lucky]

OK, now that was funny.

[Bryanw92]

>>I like it too ... but I also wonder about the wisdom of promoting the idea of fixing your old vehicle instead of buying a new one.

That commercial makes me think that GM isn’t even trying. I think they want to fail again because its easier to beg Uncle Hussein for more bailouts than it is to listen to the consumer and make and sell the products they want.

[Pessimist]

I think their ads are targeted more toward tax payers than vehicle purchasers. The goal is to make you feel “patriotic” about bailing them out thus far, and hopefully not too angry about doing it next time.

[normy]

http://www.thegatewaypundit.com/2011/09/ford-goes-there-new-ad-knocks-bailed-out-competition-video/

[Paine in the Neck]

Chevy runs deep.

It's hard to sell yourself as carrying the heritage of red-blooded all-Americanism when you're deep in the fascist tank with Obama.

[lone star annie]

Absolutely worst cars I have ever owned were made by Government Motors, Ford and Chrysler. ALL OF THEM. When I switched to foreign cars my worries were over. Never went back.

I presently drive a BMW and have fallen in love. Previously I drove Japanese and loved them too, but the BMW is my favorite so far. Everything on it is a cut above and it is obvious that BMW works on its cars to make it better rather than like the American cars, “How can we make it cheaper.”

I read somewhere that the UAW tis wanting the PIG THREE to cough up 10k per worker as a signing bonus to renew its contracts with the PIG THREE. No way will I ever voluntarily support these thugs with my money—my taxes are bad enough!

[arthurus]

Chevy’s government mandated task is to sell cars no one wants and to convince people that the government knows what’s good for you better than you do. If the government can force people to buy insurance it can eventually force people to buy government cars. Think Lada and Trabant.