GM to significantly increase advertising spending to revive sales

  1. Welcome to GM Inside News Forum General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
Page 1 of 2 12 LastLast
Results 1 to 15 of 19

Thread: GM to significantly increase advertising spending to revive sales

  1. #1
    GMI Contributor Premium Member Ming's Avatar
    Join Date
    Jan 2003
    Location
    An Alternate Timeline
    Posts
    14,692
    Thanks
    0
    Thanked 1 Time in 1 Post

    GM to significantly increase advertising spending to revive sales

    GM betting on bump in advertising dollars
    Bloomberg News. Tribune auto reporter Jim Mateja contributed to this story
    Published May 14, 2005

    DETROIT -- General Motors Corp. said Friday that it will "significantly" increase advertising spending this year as it tries to revive flagging U.S. sales.

    Spending will rise 10 percent or more on new-model advertising, and GM will triple the number of months it runs commercials for the Hummer H3 sport-utility vehicle, a redesigned Chevrolet Impala sedan and other vehicles when they are introduced this year, said Mark LaNeve, GM's new head of North American sales and marketing.

    LaNeve wouldn't give specific spending amounts. GM spent about $2.8 billion in advertising last year, an 18 percent increase from 2003, according to TNS Media Intelligence, which estimates ad spending by U.S. companies.

    TNS said GM is the nation's second-largest corporate advertiser, behind Procter & Gamble Co.

    "A big part of our business is momentum, and right now we're trying to seek momentum," said LaNeve.

    While spokesman Tom Kowaleski said GM doesn't reveal the amount of money it spends on advertising, the automaker also will increase its budget to promote the Chevrolet Suburban and similar large SUVs, after sales of those models fell last year and in the first four months of 2005.

    U.S. sales fell 4.9 percent through April, and GM's market share dropped 1.7 points, to 25.6 percent.

    "How much further can they go in terms of pricing?" said Frank Ursomarso, a Wilmington, Del., Pontiac GMC dealer who has known LaNeve for 20 years. "The basic issue is, customers are voting with their feet, and they're buying imported rather than domestic vehicles."

    As the year progresses, and the company introduces more new models, such as the Chevrolet HHR SUV and Cadillac DTS sedan, GM plans to shift more to advertising that promotes the lower prices and the content of the vehicles, with less emphasis on incentives.

    In a recent interview, Brent Dewar, vice president of advertising for GM, told the Tribune that the automaker will try to move away from promoting incentives to promoting vehicle features.

    "When you sell incentives, your advertising spends the time explaining the incentive," Dewar said. "The features of the vehicle, such as power adjustable pedals, are lost in your message. It's time to tell the product story rather than only selling the deal."

    GM also will do more to directly challenge Toyota in its marketing.

    Kowaleski said GM will boost advertising spending "in markets where we are currently underperforming and our market share is less than what we feel it should be, such as Los Angeles, New York and Miami, because our voice hasn't been loud enough."

    "When we feel our vehicles have advantages over the competition, we will be very open and point the advantages out, whether its versus Toyota or another brand," he said.

    For example, a recent TV commercial that aired in South Bend, Ind., and other areas of the U.S. for a GMC Sierra pickup compares engine power, fuel economy and towing power with the performance of the Toyota Tundra pickup. GM typically compares its vehicles with Ford Motor Co. or DaimlerChrysler AG's Dodge brands.

    Full Article & Source: http://www.chicagotribune.com/busine...i-business-hed


  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2

    Join Date
    Dec 2003
    Posts
    848
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Advertising works as long as you have the product to back it up. In many cases GM does have solid products in which it can compete. A few GM vehicles are kind of mediocre still, but those are becoming fewer and fewer as the products become redesigned. But GM needs to be aggressive and not give any more inches to its competitors.

  4. #3
    4.6 Liter Northstar V8 tama z71's Avatar
    Join Date
    Feb 2005
    Location
    Pittsburgh
    Posts
    1,546
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    i think this will be good, as long as they advertise right. that means touting the impala/monte v8s over the japanese competition, playing on the colorado/canyons best in class fuel mileage, keep advertising cadillac and hummer incessantly (theyve had the best ones so far), keep pontiac advertising with that kind of dark and sinister theme, give GMC the eclectic orchestra music, and for the love of christ, let america know that GM still employs more people here than all the foreigners COMBINED.

  5. Remove Advertisements
    GM Inside News
    Advertisements
     

  6. #4
    2.8 Liter Turbocharged V6
    Join Date
    Nov 2004
    Location
    Finland
    Posts
    828
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Dear GM, oh dear GM...

    Form follows function.

  7. #5
    6.2 Liter LS3 V8 SSrevolution's Avatar
    Join Date
    Jul 2004
    Location
    Westerville Ohio
    Posts
    3,130
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Quote Originally Posted by hudson32
    Advertising works as long as you have the product to back it up. In many cases GM does have solid products in which it can compete. A few GM vehicles are kind of mediocre still, but those are becoming fewer and fewer as the products become redesigned. But GM needs to be aggressive and not give any more inches to its competitors.
    Exactly. You have to spend money to make money. Isn't that what contributed to the F bodies demise was lack of advertising? I don't want to see group advertisments like with every car in the Chevy lineup in an American Revolution ad, but ads that focus on single cars.

  8. #6
    6.2 Liter LS9 Supercharged V8 camaro_freak's Avatar
    Join Date
    Dec 2004
    Location
    Indiana
    Posts
    5,947
    Thanks
    971
    Thanked 282 Times in 140 Posts

    Re: GM to significantly increase advertising spending to revive sales

    if they would have advertised correctly, they wouldn't be in this mess...
    Hidden Content
    Check out my blog at: Hidden Content



  9. #7
    3.6 Liter SIDI V6 Snafu_SS's Avatar
    Join Date
    Mar 2005
    Location
    El Paso
    Posts
    1,122
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    i really like the new pontiac solstice and sky commercials i have seen on the net...get creative and keep em fresh. the sky ones have this sort of "inde" movie feel to em, which really excites me, and the solstice has that dark sinister feel the above post mentioned.

    creativity and being different can work to get you noticed and it doesnt mean you have to be lavish and high tech like the scion commercials that show a bunch of stuff you cant get on your scion without a serious amount of cash and some west coast body shop work!!

  10. #8
    5.3 Liter Vortec V8
    Join Date
    Sep 2004
    Location
    Bel-Air, MD
    Posts
    1,351
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Quote Originally Posted by tama z71
    i think this will be good, as long as they advertise right. that means touting the impala/monte v8s over the japanese competition, playing on the colorado/canyons best in class fuel mileage, keep advertising cadillac and hummer incessantly (theyve had the best ones so far), keep pontiac advertising with that kind of dark and sinister theme, give GMC the eclectic orchestra music, and for the love of christ, let america know that GM still employs more people here than all the foreigners COMBINED.
    I like most of what your saying. But I dont think GM should be pushing too hard on there extremely old and dated models. I saw a Hyundai commerical last night about how they just opened up a new plant in a state, more jobs for Americans, awesome quality lets them offer the 10 year warranty... Same with Toyota, only I dont hear a 10 year warranty pitch. I hear the "legendary Toyota quality" lines along with the "more jobs for more Americans" ads.

    GM does need to focus more on the product rather than the x$ in rebates on 05' whatevers. But trying to push an SUV that looks extremely dated inside and out will not guarantee sales...
    GM autos: the best investments I've ever made
    -------------------------------------------------------
    1986 chevy cavalier wagon-206,442 miles
    1989 oldsmobile cutlass-216,220 miles
    2000 chevy cavalier-52,367 miles --totalled Hidden Content
    2001 chevy cavalierZ24-80,654 (Something finally happened! Needed a new battery)

    So lets see. Toyota lied about recalls. Lied about their HP ratings... I wonder how much truth is in their milage ratings..

  11. #9
    6.2 Liter LS3 V8 SSrevolution's Avatar
    Join Date
    Jul 2004
    Location
    Westerville Ohio
    Posts
    3,130
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Quote Originally Posted by Snafu_SS
    i really like the new pontiac solstice and sky commercials i have seen on the net...get creative and keep em fresh. the sky ones have this sort of "inde" movie feel to em, which really excites me, and the solstice has that dark sinister feel the above post mentioned.

    creativity and being different can work to get you noticed and it doesnt mean you have to be lavish and high tech like the scion commercials that show a bunch of stuff you cant get on your scion without a serious amount of cash and some west coast body shop work!!
    Well they need to spend more money on things like, oh I don't know... TV commercials. Not everyone is like you and me and goes online to look at commercials.

  12. #10
    Firebird Concept (the turbine one) asim's Avatar
    Join Date
    Mar 2005
    Location
    Houston, TX
    Posts
    11,235
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    I dont think TV commericials will help that much, what they do need is cars and trucks that will get good reviews from the news media. Also its nice to see that these commercials will focus on the cars, because almost all i hear now is about "$3500 cash back"
    I'll make a new sig. Later.
    Hidden Content | Hidden Content | Hidden Content

  13. #11

    Join Date
    Nov 2004
    Posts
    1,762
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    I've been totally disgusted with most GM ads for the last 2-3 years, both TV and print. Few, if any, tout the vehicle features, especially the exclusive ones, and when they do, it's so subtle that one barely notices (good example is the Chevy print ads with the small feature list at the bottom). The ads for the '04 Malibu/Maxx really were a bomb. That's when I first started noticing how bad they'd gotten. So, I'm glad that GM is finally recognizing its errors. Down here, in the Miami market area (tho 65 miles north), all I see over and over again, dozens of times a day, are LaCrosse ads. But at least they do have some feature content.

    Spending big bucks on old full-size SUVs doesn't make much sense to me. But that's where the profits are, if they'd sell better, which I doubt.

  14. #12
    6.0 Liter L76 V8 tom3's Avatar
    Join Date
    Dec 2004
    Posts
    2,371
    Thanks
    2
    Thanked 3 Times in 3 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Can't remember the last time I saw a Toyota Camry commercial. No. one selling car because of what it is, and word of mouth is the only advertising it needs. Really surprises me to see people who have always driven GM vehicles now in a foreign nameplate. Build quality, back it up with real dealer service - or not - and word does get around.

  15. #13
    GMI Staff Member Premium Member
    Join Date
    Dec 2003
    Posts
    15,292
    Thanks
    15
    Thanked 8 Times in 7 Posts

    Re: GM to significantly increase advertising spending to revive sales

    Yup, a great product does its own advertising.

    Ever notice that the Five-Hundred is advertised constantly, but the Chrysler 300 seems to get buy without major TV ads just fine?

    The 300, F-150, and Mustang ads were only aired immediately around introduction. Now they seem to just air one every so often. I suspect they do that for the benefit of the brand, not the model.

  16. #14
    6.2 Liter LS3 V8 GM_Fanatic's Avatar
    Join Date
    Dec 2004
    Posts
    3,465
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Re: GM to significantly increase advertising spending to revive sales

    I concur about the solstice commercial, the one with Kasbian. That pretty much sums up what I think Pontiac should be as a whole. The Buick commercials have the right idea, good call going for the "elegant" theme, but they just need to keep the cars coming that back that up.
    My thoughts and random babblings...
    Hidden Content

  17. #15
    6.2 Liter LS9 Supercharged V8
    Join Date
    Aug 2003
    Posts
    8,848
    Thanks
    222
    Thanked 14 Times in 5 Posts

    Re: GM to significantly increase advertising spending to revive sales

    There seems to be a need of balance in the equation that includes product development and advertising at GM. It seems that the pendulum has swung violently toward advertising, whose budget (if you include rebates, which is a key point) vastly exceeds the R&D budget - not cool.

    When GM becomes singularly dedicated to whatever it deems its raison d'etre is, my guess is that the many talented people at GM will feel less and less of an inclination to spend money telling people how great GM products are.

  18. Remove Advertisements
    GM Inside News
    Advertisements
     

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Chrysler Group Reports April U.S. Sales Increase of 5--Best sales since 2000
    By Titanic in forum Chrysler Group - Fiat Discussion
    Replies: 13
    Last Post: 05-12-2005, 11:35 PM
  2. Replies: 79
    Last Post: 04-04-2005, 02:29 AM
  3. GM Reports 437,161 Deliveries in December
    By tgagneguam in forum Automotive Industry & GM News
    Replies: 41
    Last Post: 01-08-2005, 06:26 AM
  4. December and Total 2004 GM sales
    By HEMI300C in forum General Car Lounge
    Replies: 4
    Last Post: 01-04-2005, 04:03 PM
  5. GM Announces November Sales of 303,891 Vehicles
    By coolcaddy in forum Automotive Industry & GM News
    Replies: 72
    Last Post: 12-03-2004, 03:36 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBadvanced CMPS v4.1.2