Quote:
Originally Posted by Number 3
50? Wow.
It's a simple business case. If GM believed that the cost of advertising had a profitable pay back you would see Camaro commercials. For me, maybe my 35 years in the industry make abundantly clear.
Let me walk you through it.
If GM spent $2,000,000 (and since everyone loves the Dodge commercials you could throw another several million more for Vin Diesel) to produce a commercial and then spent another $3,000,000 for airtime you'd be at $5,000,000 for just a near term advertisement (not counting on a celebrity).
Now IF GM is making a $2,000 profit on a Camaro (guessing), then they have to sell 2,500 more Camaros to just break even on the commercial.
It's why GM doesn't and hasn't had to advertise the Corvette with TV commercials.
Just not clear why everyone is so defensive and angry to the point of shouting down experience so you can be right. Oh wait, it's the internet, I forgot.
If TV advertising sold more Camaros at a profit, they would do it. It's that simple. Sorry, but it really is. Don't even need 1 degree for that. GM has told us many times and very clearly they are about profitability, not market share. So it's not about selling a few more Camaros, it's about maximizing profit on Camaros.
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Everything you said is an exact reflection on the blind incompetence of the company. Go ahead and keep telling me how I'm wrong and you're right. Is it you're stuborn? Incompetent? Brazen overconfidence?
What good is the profit margin when you only sell a couple? Have you seen the sales chart? Or does Mary Barra and her merry band of managers show the chart upside down on the spreadsheet? You'd rather they sit on dealer lots and collect dirt than move inventory aparently.
Oh BTW, Bob Seager was on CBS This Morning a while a go. He talked about how proud he was to let GM use his song Like A Rock for the Silverado commercials. Not because he made whatever money he made on it, but because he and General Motors accountants crunched all the numbers and discovered that in the almost 20 year run of the Like A Rock Silverado commercials, GM produced and sold an extra 2 MILLION Silverados. Due JUST to his song. Which to him meant the guys and gals on the line had more work and more hours to make those trucks because there was more demand for them. Due to his what? Ahhhh yes, commercial.