Magazine

GM's Failing Marketing Model


"We're Sorry. Buy Our Cars" (New Business, June 15) says GM ads for the new Buick LaCrosse will feature the car's "array of Lexus-caliber gadgetry." But it fails to note that it's a costly option. A big reason GM has been in a downward spiral is precisely this "option-based" profitability model. Until GM understands that consumers resent paying much more to get features highlighted in ads, CEO Frederick Henderson will be reliving, not rewriting, history.

Robert Winsor,

Professor of Marketing Strategy,

Loyola Marymount University,

Los Angeles


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