General Motors announces integrated field marketing strategy
Presswire - December 17, 1998 13:33
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M2 PRESSWIRE-17 December 1998-GENERAL MOTORS: General Motors announces integrated field marketing strategy (C)1994-98 M2 COMMUNICATIONS LTD
* New approach to marketing GM brands at the local level
Detroit -- General Motors announced today a new integrated field marketing strategy designed to maximize resources and increase GM's competitiveness at the local level. The move marks the next step in the automaker's current reorganization of vehicle sales, service, and marketing operations as it strives to improve efficiency and effectiveness in executing local marketing.
"This new approach was developed with significant input from dealers across the country," said Darwin Clark, GM vice president, field, sales, service and parts for GM North American Operations. "Our brand messages need to penetrate every local market, and the individual dealer, working with local, empowered GM personnel, is vital in assessing the needs of each market area and integrating the brand positioning."
GM's new approach to local marketing will encompass retail marketing, support of sponsorships and events, and a dealer cooperative advertising program.
Regional Retail Marketing
Each of GM's newly defined regions will develop and administer an advertising and promotional plan to drive consumer consideration and create a strong brand retail voice. The retail-oriented communications will allow GM to effectively execute brand plans that ensure distinct divisional identities while ensuring a consistent brand image.
Dealer Advisory Boards, made up of 8-10 dealers who will meet quarterly, will be formed in each region to provide input into the local marketing plans. The number of advisory boards in each region will vary based on the number of market areas in that region that face consistent marketing and communication challenges.
GM's national advertising agencies -- Leo Burnett (Oldsmobile), D'Arcy Masius Benton & Bowles (Pontiac and Cadillac), Campbell-Ewald (Chevrolet), McCann-Erickson (Buick) and Ammarati & Puris (GMC) -- will be retained for creative development and planning. Each national agency will staff regional locations with seasoned, retail experienced account management.
Media buying will be consolidated through GM's Local Communications, Inc.(LCI) to leverage buying and maximize local media opportunities. The move mirrors GM's consolidation of national media buying in 1994 at GM Mediaworks.
General Motors will discontinue financial support of the approximately 900 Dealer Marketing Groups(DMGs) as of April 1, 1999, including the collection and disbursement of supplemental dealer assessments.
"Our current DMG system required large amounts of time and effort on behalf of the factory and the dealer to administer," said John Middlebrook, GM vice president, vehicle brand marketing.
"In addition, the disbursements of marketing resources through the current DMG system has been the source of on-going costly litigation between GM and dealers, and we needed a new program to move past that situation. We are not, however, terminating Dealer Marketing Groups. These are dealer-founded and operated and it is up to the dealers to decide their future roles," Middlebrook added.
GM Co-Op
To provide individual dealers with resources to assist their local marketing efforts, General Motors has instituted an individual dealer cooperative advertising program called "GM Co-OP".
In this program, dealers may choose to contribute up to one percent of the MSRP of eligible vehicles purchased by them for "call to action" advertising and marketing by the dealership. GM will match these contributions at a 25 percent level. The Co-Op program will provide a tremendous increase in available resources for individual dealer advertising over the current program for most dealers.
Dealers may access these GM Co-Op monies through GM's Market Area Teams for reimbursement of eligible advertising and marketing expenditures including advertising in newspapers, magazines, radio, TV, cable, direct mail, outdoor, the internet, auto shows, promotional events and local sponsorships.
GM will also provide advertising credits ($4 per dealer for each retail sale recorded by GM from January 1, 1990 through December 31, 1998) which can offset qualified individual dealer advertising expenses incurred after April 1, 1999. Dealers who enroll in the new Co-Op program will have their credits placed in their Co-Op account and receive a "fast start" match of 25 percent from GM.
"Our share of voice will not decline in local markets, in fact, this new strategy allows more resources for individual dealer advertising," Clark added.
Regional Events and Sponsorships Reinforcing GM's ability to take on their competition with a consistent, coordinated message, the Integrated Field Marketing Strategy will provide regions with resources to execute local events and sponsorships.
GM has established "R*Works" as a support agency, staffed and housed in GM regional offices to provide fully integrated, tactical, event sponsorship and local promotions to GM regional staffs, and to create increased value through connection to local media spending.
"We have a clear opportunity to leverage the size and strength of GM by streamlining and upgrading the professionalism of our promotional processes," said Phil Guarascio, GM vice president, general manager of advertising and corporate marketing. "The result will be sponsorships and events that more clearly reflect brand positioning, leverage learning across the entire organization and increase the tactical budgets."
R*Works will work with market area teams to review local event opportunities, assist with the development of promotions and help incorporate regional or local messages.
"This is all about leveraging our strengths to ensure a more effective and efficient presence in all local market activities," Guarascio added.
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