Wednesday, July 13, 2005

CANNIBALISM

I suspected this may happen. Now it's being confirmed that the GM "Employee Discount" program has probably resulted in:

1. Increased current sales, but
2. Increased current sales at the expense of future sales, and
3. Failure to lure buyers previously loyal to other brands.

In other words, they've given their loyal GM fans a huge discount for no good business reason.

In marketing circles, that's known as cannibalism.

Of course, Detroit is famous for its inept marketing, so the other domestic brands have adopted this stupid plan. While they've decreased their prices, Toyota has increased theirs. I'll let you figure out who's smarter.

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