Last Updated 07 Jul 2020

Marketing Environment of General Motors: An Analysis

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General Motors has definitely seen better days; not until the issue of deferred tax assets surfaced, the firm has been always the forefront of the automobile trading along with Ford Motors and Chrysler. However, it seems that the “Big Three” are experiencing difficult times hampered by contract buyouts and apparent deferred tax assets. Sure the firm generated revenues on an international scale, yet it failed to deliver the much-anticipated profit margins on its primary market – North America.

GM has declared that retirement incentives and the issue of deferred tax assets are the main culprits for the losses of the firm. Citing that operation costs should be reduced in order to generate revenues and increase profit margins. Furthermore, the firm has insinuated that productivity in terms of revenues and sales are to surface by hiring new employees and offering them low wages in order to get back on track by 2011 (Popely, 2008). It should be noted that Ford and Chrysler share similar sentiments as well towards the notion of generating revenues while reducing operation costs.

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These three American automobile manufacturers are all on the same book. With import brands like Toyota, Honda, and BMW to name a few, competition is as stiff as usual; with loyal clients and purists jumping ship in terms of their car preferences. A notion that suggests that the competition in the American automobile industry knows no bounds and customers are proof of this; Research agencies such as CNW have declared that clients always place a premium on the material used on automobiles, and not the brand itself.

With this in mind, clients and car enthusiasts are more meticulous than ever in purchasing cars. Toyota, an import brand from Japan, has shown improvement in its profit margins in recent years. The Japanese car manufacturer has been improving on an annual basis; thanks to its charismatic marketing campaign that involves hiring high-end celebrities as endorsers of their automobiles. Obviously, this is the portion of brand marketing where the Big Three including GM has been passive.

Can anyone recall who GM, Ford, or Chrysler has hired in order to endorse their product in a very distinct manner? This is where new marketing strategies come into play. GM and Ford has embraced B2C strategies in order to uplift its image, as well to renew the client enthusiasm for its products. American automobile firms have established online websites in order to augment the information on their products; and entice clients as well as potential market segments (Popely, 2008). Devising a New Marketing Strategy for General Motors

General Motors have relied on car exhibits in order to showcase their products. New models of cars like The Hummer and the Corvette are hard to miss on car shows. However, clients are not always at these car shows in order to see new automobiles that GM offers. Proof of this is the decline in sales of the Corvette, which the firm partially ignores and has resumed the production of the high-end automobile. With the Corvette being a “discretionary” vehicle, GM is very confident on how the Corvette will fare on its financial performance (Cetawayo, 2008).

Marketing Environment of General Motors: An Analysis essay

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