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Why GM Failed, As Told by GM's TV Ads

April 1st, 2009 @ 10:20 am

3 Comments

Categories: General, Video, Watercooler

Tags: Advertisement, General Motors Corp., TVs, Tv & Home Theater, Personal Technology, Home Entertainment, Geoffrey James

Yesterday I pointed out in the post “What Killed GM? Brand Marketing” that GM’s woes were the result of an unrelenting focus on brand marketing, rather than product quality. Needless to say, a number of branding gurus have lambasted this viewpoint, probably because it assaults their parasitic business model.  Whatever.

To make my point, here’s the history of GM’s marketing triumphs and product woes, as illustrated by seven classic GM television commercials.   They’re short, they’re entertaining, and they show how brand marketing tried to paper over GM’s problems, eventually leading to the near-death of the company.

UPDATE (4/6): I added the Saturn into the mix — probably the best example of egregiously stupid branding in the entire history of the automobile business.

PROBLEM #1: IRRELEVANT MESSAGING

This 1952 classic sets the tone for GM TV ads for the next fifty years — associate something emotional but irrelevant (like sex or a sexy female) with the product, and then promote the product with a memorable jingle, perhaps with a patriotic subtext.  While hardly unusual for brand-oriented marketing, we’ll see how, in GM’s case, the technique becomes increasingly absurd as the company loses its bearings.

Click here for the second problematic GM TV ad»

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    1

    sahar1018

    04/03/09 | Report as spam

    RE: Why GM Failed, As Told by GM's TV Ads

    Hi:
    What an interesting article. WOW! really informative and entertaining at the same time.
    I believe one of the factors that brought GM down is their inability to change or their refusal to change. Their corporate culture remained the same since the 50's and the 8 cylinder cars. The year of 1973 (I was too little to remember) but as a case study, should have been a wake up call to produce cars that were gas efficient, then the crisis during Clinton with the Oil Comoanies when he threatened to flood the market with the US reserve. GM should have taken a hint and started producing less gas consuming cars, even now while Toyota is producing the PRISM, what is GM doing advertising: The big trucks, they based their production on the needs and wants of the mid-West. Chevrolet advertised hotdogs, applepies and Chevrolet, the whole population is not Mid-West.
    Again a great article
    Sahar Andrade
    Sahar Consulting
    www.saharconsulting.com

  •  
    2

    ozjames70

    04/05/09 | Report as spam

    RE: Why GM Failed, As Told by GM's TV Ads

    Great story board. It tells many truths. The one many companies ought to take notice of is that when you send a lot of work off-shore, locals lose their jobs, so don't earn money, and can't buy your goods and services. The death spiral begins. Oh, and the low cost labour markets where you sent the jobs, they won't buy your high priced products and so you don't have an alternate market. So once the advertising wears thin (and it will), you're history, dead, kaput, gone!

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    3

    cdubsr@...

    04/06/09 | Report as spam

    RE: Why GM Failed, As Told by GM's TV Ads

    I'm 50 and have never owned a GM product. My father and grandfather owned multiple GM brands. Growing up I drove some of the great GM 60s era cars and also the less dependable 70s era cars (one of them being a Vega). In the glory days of GM, the 50s and 60s, engineers ran the company and GM built solid, dependable cars. In the 70s the Harvard MBA beancounter types started cutting corners trying to increase margins and at the same time started lowering quality. Market share has been going down ever since. Geoffrey is correct in that no amount of 'branding' can correct a poor quality product.

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