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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (446198)1/8/2009 6:41:53 PM
From: i-node  Read Replies (1) of 1578122
 
I agree with what you're saying about the definition of marketing, but honestly I don't think GM's problem is one of marketing.

I think we all probably agree about the definition -- it is after all, stipulated in all Marketing Management textbooks.

GM's core problem isn't marketing. It is one of not being able to produce cars that are competitively priced for what you get.

If I have a choice to buy a Ford or a competing Nissan for the same price, I'm going for the Nissan every time. It is a better car and I'm not paying the same money for a lesser product.

If the Ford is priced a couple thousand below the Nissan, then I can think about at it. But if Ford is overpaying its labor compared with the Nissan, they can't sell them for that.

It really comes back to the old joke about losing money on each unit sold -- "we'll just make it up on volume". Of course, you can't do that. When you're losing money on every GM car you sell, the solution isn't better marketing; it is to get control of costs. You can only do so much with economies of scale. When you're spending a couple thousand more on labor to build a GM car, you're at a permanent competitive disadvantage.

I don't see why this is so difficult to understand.
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