From John Moore at Brand Autopsy … any resemblence to persons or companies or blog posts, living or dead, is purely coincidental …
I cannot argue with the success of the EDEO program. However, all GM
has done is trade the deep discounting of low financing and big rebates
for a different discount with a different, albeit more compelling name.
For long-term vitality, General Motors and the entire car industry must
overcome their addiction to discounting. Profit margins will continue
to suffer, the equity of brands will continue to erode, and worst of
all … consumers will continue to be trained to only buy a car on deep
discount.
Seth Godin said it best in PURPLE COW, “Cheap is the last refuge of a product developer or marketer who is out of great ideas.”
No matter if you sell a car under an EDLP or EDEO pricing strategy …
it’s still going the cheap route to motivate people to buy it. Aren’t
we, as marketers, too smart, too savvy, and too damn creative to fall
for this low price trap?
(Please say yes. Otherwise, I may have to change my livelihood.)
Did you hear Chrysler may bring Mr. Iacocca in from the bullpen to pitch their version?
Will the circle … be unbroken? If you can find a better idea …
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