June 1, 2009
Back to cars. How could GM go from more than half the United States automobile market three decades ago to about 19% today? And now bankruptcy.
What happened to its passionate network of believers, which at one time included half the nation? It's a long story captured in this brief Associated Press chronology published last week http://bit.ly/NkL0n).
When people believe in your brand (or brands in GM's case), when they really live for it, it's easy to disappoint them. GM began to lose owner loyalty in the 70's and 80's as it suffered quality problems and the Japanese automakers emerged with reliable, fuel-efficient cars people liked. When people spend their hard-earned cash on crap, they don't easily forget. Remember the Vega.
And then in the 90's and 00's GM pulled close to the Japanese automakers in quality but by then the perception damage had been done.
It's a cautionary tale for any marketer. People are fickle, their likes and dislikes ebb and flow (think once-hot SUV's). Gas prices fluctuate. New ideas get traction (Prius).
What do you consider the marketing lessons of a bankrupt GM?