Advertising strategy that guarantees disaster



It is widely acknowledged that one of the principle factors behind the collapse of the American car industry was the insistent, year-on-year discounting practices of the big manufacturers and their dealerships. The message was always “cheaper”, “cheaper”, rather than “best”, “best”.
Whereas the European manufacturers set about making iconic cars that people desired – and would buy at often high residual prices – the US giants sold cheap, made tiny margins and then went out of business.
How curious then that here in Dubai we find many large car dealers running bizarre advertising campaigns focusing on discounted prices for even new model ranges. There is not a mention of these cars being good quality, offering great features, technical innovations or simply being objects of desire. No, they are simply promoted as cheaper than you think.


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