Marketing Strategies to Put Yourself Out of Business

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Marketing Strategies to Put Yourself Out of Business

Marketing Strategies to Put Yourself Out of Business

Want to learn how to lose a billion dollars?

Just follow the marketing strategies used by GM, Ford and Daimler Chrysler. Yes, some of the largest corporations in the world are missing some basic tenants of marketing and it's worth taking a look at what they're doing wrong so you don't make the same mistakes. You don't want the following headline written about your company.

"GM Hits Billion Dollar pot hole" - Miami Herald "GM shares fell to a 12 year low." - New York Times

What are some of the most glaring mistakes a handful of car companies are making?

1. Discount Pricing

GM and Ford offer free loans and rebates worth thousands of dollars to prompt people to buy their vehicles. Good idea?

When you need to resort to bribing people to buy your products or services, it's a sign that something is terribly wrong. The idea is to provide value, help your prospects understand the perceived value and charge enough to make a reasonable profit. When you start discounting your product as a means to get people to buy it you've entered an endless downward cycle.

The next time a prospect buys, they'll want an even larger discount and there will always be somebody who will undercut you on price. Eventually you'll end up like GM, losing lots, maybe not billions, but enough to threaten the life of your business.

2. Making Products People Don't Want

According to the New York Times, "General Motors and Ford have swerved off course for a far more basic reason: not enough people like their cars." Whoops!

The objective is to market a product or service people want.

3. Not Paying Attention to What People Want

If you want to make money you'd pay attention to what your prospects want? Right?

In the case of Daimler Chrysler you'd be wrong. At the Detroit Auto Show crowds loved the two-seat 8 foot long "Smart Car". So logically Daimler Chrysler decided not to sell it in the United States despite booming sales in Europe for years. Zap, a Santa Rosa CA firm, saw an opportunity especially with rising gas prices and went direct to the European Daimler dealers to buy the cars. Surprise! Ten thousand U.S. buyers put themselves on a list to order over $55 million worth of cars in just a few months.

Avoid discount pricing, provide products and services your prospects want and you can avoid losing a billion or instead make 55 million. I don't know about you but if I lose ten thousand dollars I get upset and when I make a million in a year I'm pretty happy.

The author, Charlie Cook, helps service professionals, small business owners and marketing professionals attract more clients and be more successful. Sign up to receive the Free Marketing Plan eBook, '7 Steps to get more clients and grow your business' at http://www.marketingforsuccess.com

In The News:

Yahoo! News: Top Stories

European markets steady after Asian retreat (AP)

AP - European stocks were little changed Tuesday as hopes of a modest rebound on Wall Street Â— following the previous day's savage retreat Â— helped offset an overnight slump in Asian markets.

Big Three automakers to submit plans to Congress (AP)

AP - Detroit's automakers, making a second bid for $25 billion in funding, are presenting Congress with plans Tuesday to restructure their ailing companies and provide assurances that the funding will help them survive and thrive.

Court ruling brings down Thai government (AP)

AP - A court dissolved Thailand's top three ruling parties for electoral fraud Tuesday and banned the prime minister from politics for five years, bringing down a government that has faced months of strident protests seeking its ouster.

India demands Pakistan hand over terror suspects (AP)

AP - India picked up intelligence in recent months that terrorists were plotting attacks against Mumbai targets, an official said Tuesday, as the government demanded that Islamabad hand over suspected terrorists believed living in Pakistan.

Obama taps Clinton, Gates for US 'new dawn' abroad (AP)

AP - Barack Obama promised "a new dawn of American leadership" in a troubled world, announcing a strong-willed national security team headed by Hillary Rodham Clinton, who fought him long and bitterly for the presidency, and Robert Gates, the man who has been running two wars for George W. Bush.

Governors to press Obama for help with shortfalls (AP)

AP - The nation's governors are meeting with President-elect Barack Obama on Tuesday to press their case for at least $40 billion to help pay for health care for the poor and disabled and even more for infrastructure projects like road and bridge repair.

Panel: Bio attack likely in next 5 years (AP)

AP - A bipartisan commission is asserting the country should expect a terrorist attack using nuclear or biological weapons sometime in the next five years.

1 in 5 young adults has personality disorder, researchers report (AP)

AP - Almost one in five young American adults has a personality disorder that interferes with everyday life, and even more abuse alcohol or drugs, researchers reported Monday in the most extensive study of its kind.

Estranged relative arrested in Jennifer Hudson family killings (AP)

AP - The arrest of Jennifer Hudson's estranged brother-in-law in the shooting deaths of her mother, brother and 7-year-old nephew confirmed what police officials have quietly said for weeks: that the 27-year-old convicted felon was the prime suspect in the slayings.

Burress posts bail, will appear in court in March (AP)

AP - It was just 10 months ago that Plaxico Burress became an instant New York sports hero after his clutch performance in the Super Bowl. But on Monday, Burress was hauled out of a police precinct in handcuffs facing two weapons charges that could send him to jail.

Thai court disbands ruling party (Reuters)

Reuters - Thai Prime Minister Somchai Wongsawat was banned from politics for five years and his party disbanded on Tuesday, plunging the country deeper into chaos and raising fears of a violent backlash by government supporters.

Europe looks to galvanize banks (Reuters)

Reuters - The European Commission on Tuesday promised measures to get state-aided banks to start lending to the real economy but EU finance ministers squabbled over ways to push back against the global financial crisis.

Georgia votes in key Senate run-off election (Reuters)

Reuters - The U.S. state of Georgia votes in a run-off election for U.S. Senate on Tuesday that will help decide whether Democrats gain a big enough majority in the chamber to ram through legislation virtually at will.

Oil falls below $48 (Reuters)

Reuters - Oil fell to a 3-1/2-year low below $48 a barrel on Tuesday as signs grew that the global economy was in worse shape than thought and after OPEC opted to delay talks on further output cuts.

Iraq's "Chemical Ali" gets second death sentence (Reuters)

Reuters - An Iraqi court sentenced Saddam Hussein's cousin "Chemical Ali" to death Tuesday for crushing a Shi'ite revolt after the 1991 Gulf War.

Chances of WMD attack in big city greater: report (Reuters)

Reuters - The chances of a terror attack on a major city somewhere in the world using weapons of mass destruction are better than even, according to a task force mandated by the U.S. Congress, The Washington Post reported in its Tuesday edition.

India demands Pakistani sign of faith (Reuters)

Reuters - India demanded Pakistan hand over 20 of its most wanted fugitives as a sign of good faith on Tuesday, while both sides tried to cool tensions over the Mumbai attacks that have threatened improving ties.

Lots of TV and Web harms kids' health (Reuters)

Reuters - Spending a lot of time watching TV, playing video games and surfing the Web makes children more prone to a range of health problems including obesity and smoking, U.S. researchers said on Tuesday.

Thai court bans PM, flights to resume (AFP)

AFP - A Thai court stripped Prime Minister Somchai Wongsawat of his post and outlawed the ruling party on Tuesday, prompting jubilant anti-government protesters to lift a blockade of Bangkok's main airport.

Pakistan offers 'joint investigation' into Mumbai attacks (AFP)

AFP - Pakistan offered Tuesday to work hand-in-hand with India to track down those responsible for the Mumbai attacks but declined to respond immediately to a demand that it hand over 20 terrorist suspects.

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