Anyone who knows me knows that I love to shop. I also love a bargain. I think it comes from working retail for 13 years. While reading some of the articles in the Radio Sales Today post on September 1, 2010 I was reminded that the car industry has trained the consumer to only buy when there is a deal, rebate or some other intriguing offer. Joel Ewanick, General Motors new marketing chief says that he is looking to “bring people into the organization that will challenge the way we look at things”. The car industry cannot be driven by a few sales events per year. They must learn what sells cars and what excites the consumer to buy the brands they buy. That is a tough hill to climb considering that they gave consumers such programs as employee discounts and cash for clunkers last year. This past July there were $1000 less in incentives than in 2009. As the Detroit car companies continue to recover and build fewer vehicles, how do they build consumer confidence without the discounts and gimmicks. I compare that way of thinking to an area department store. They have trained the shopper to go only when they have a daily sales event, a 20% coupon or midnight madness offers. When you spoil the consumer with a tasty treat, it is tough to get them do something different when you keep offering them the treat time and time again. Can Detroit take their treats away and still be profitable?
You may find full Radio Sales Today articles here.
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