Budgeting Marketing Resources
In the short-term time horizon, Detroit automakers should gear 65 to 70% of their marketing budgets and resources for crossovers toward the price inelastic geographical/regions based on demographical factors.  They should devote a “trailing” amount of marketing resources of 30 to 35% to price elastic buying segments in given geographies and regions.

Game Plan Adjustments: Mid Range Structural Solutions
Detroit automakers, GM and Ford, can solve this ailment structurally in the mid-term by making adjustments to their “game plans”.  They should look to design and build smaller or mini-crossover vehicles to address the permanent and endemic outlook of substantially higher fuel prices and buffer against less discretionary spending in the mid-term future for Americans.  From a classic Blue Ocean perspective, they need to raise the dimensionality of gas efficiency dramatically for crossovers, and moderate or lower the sales price by making “light” crossover vehicles.  It can achieve this by building them with even lighter chasses.  Also, classically Blue Ocean, they can reduce the engine horsepower to minimum acceptable threshold levels.  It’s likely that consumers are willing to accept a lower amount of horsepower relative to increased fuel efficiency and a lower sales price.

By operating from a holistic perspective, GM and Ford can change the game by developing a wider range of these vehicles focused around various buyer groups according to lifestyle and usage.  They should offer a portfolio of core crossover vehicles with 1 to 2 models for each categorized buyer group. 

Can you think of anything else that you would do the increase crossover sales in the short term and mid term?  How would you categorize the major buyer groups based on lifestyle and usage?  Would you even use different categorization criteria?

I am willing to talk with blog participants live via phone for free consultations.  I am also available to companies, businesses and organizations for consulting engagements and speaking opportunities.  For any of these request, E-mail me .  I will help my readers in any way possible – I want to share my knowledge and expertise.

Mike Bolden marketing expert and blue ocean strategist – writing to inform, enlighten, and inspire.  Author of forth coming book, “Owning Marketspace”.  Available for consulting and speaking engagements.

Detroit Automakers Price Inelastic Price Elastic Blue Ocean Strategy Crossover Sales GM and Ford Turbo Tagger