Say it ain't so, GM!
I'm having a strong reaction to the news from GM this morning. Yes, after firing Campbell-Ewald after 91 years, they are now putting a fourth US marketing leader at the helm in 12 months time. GM's spokesperson reports that Ed Whitacre's thinking "is that we need to grow as vigorously and aggressively as possible, and he expects the company will grow market share."
There are so many problems with this leadership move and GM's situation...but I will limit my thoughts to a few points.
1. GM cannot "grow share" until they "hold share". US market share fell again to 18.7% from last year's 19.1% - it just keeps falling. Stopping the bleeding from the customers that are defecting from GM is problem number one. I am completely amazed that customer loyalty is not the highest priority. And since GM has nearly perfect information about who their customers are and where they live (thank you, VINs), it seems that 1:1 marketing is the most important path forward. High profile ad campaigns? I hardly think so.
2. The marketing profile at GM is baffling. Let's start with the fact that they are all automotive insiders. Mark LaNeve, Bob Lutz, Susan Docherty, and now Joel Ewanick from Hyundai. I think Joel did a fantastic job at Hyundai, along with a product line-up that has steadily won over consumers and impressed competitors over the last decade. However, Hyundai is all about new customers - the missing skill set is loyalty and retention. If GM ever gets serious about customer loyalty, they will need to look outside their own industry to find the best models.
3. Do I really need to say that 4 marketing leaders in 12 months is ridiculous?
4. Finally, I have the distinct impression that the marketing leadership issues at GM are fundamentally linked to a misguided understanding of what marketing is all about. "Clever campaigns" may be important, but this misses the larger point. Marketing's role is about guiding the company to develop a compelling value proposition for each of their brands and the company. Brand experience - in all of its complexity - is incredibly hard work, and touches every area of the company. More importantly, it touches every customer. GM needs to be careful about looking for a Midas touch solution from the hands of a single new marketing hire.
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