Understanding GE’s Marketing Strategy
What defines good marketing? General Electric’s approach to marketing was rather radical and revolutionary compared to its competitors in the market. Focusing on more than just what the company was expected to give, GE was able to establish a distinguishable name in the market that buyers learned to trust and lean upon. There came a time when products coming from the electronics manufacturing industries had to face the challenge of declining prices. It could be understood that the lack of interest of people towards buying appliances that they think were not necessary for them affected the sales rate of organizations like GE. Thinking of the situation, the administrators of the company knew that they had to change their approach to marketing, as well as that of their target market.
Upon stumbling to the concept of emotional marketing, GE knew that they had to make a stand, to chose a reputation that would best fit the type of products they are willing to offer the market with. These options included concepts of development and innovation that would fit the higher economic edge of the market. Members of the market belonging to this bracket do not mind buying high priced appliances given that such items given them the satisfaction that they deserve. For these individuals, investment on appliances is important. Seeing how long the items would last to serve their needs is very important; in a way, they are willing to spend more if they know that they are going to gain more. This is when the birth of GE Monogram and GE Profile came into account. These two brands were designed to serve the high end requirements of elite living.
Comfort; this is one among the three particular elements that defined the new choice-line of products from the two new brands of GE. The people who search for appliances in areas where GE products are found are expected to look for more than just the regular item. Embedded with highly innovative programs, the refrigerators, electric ovens and all other appliances found essential to be existent within a kitchen are usually automatic and are easy to use. Some even have touch screen command-prompt keyboards in them, these appliances are set off from what is considered ordinary.
Another element that GE brands uphold is extensive function. Instead of just having one-door refrigerators, GE offers the option of having three or even five-door refrigerators that serve a great purpose for storing food and keeping everything fresh. Relating their campaign to living the good life, GE tends to create an appeal on the thinking of the market with regards what makes up a considerably high-end appliance that is able to serve their every expectation. Some of the appliances are multi-functional. Not only could they keep the food fresh, they also serve as instant water coolers that also act as dispenser. The functionality of most of the GE product brands offer more that what is expected from a regular refrigerator. The company saw the opportunity of making multi-functional appliances as it would give the idea to the market as if they are buying two or three appliances for the price of one. The success of this approach could be proven effective especially in the aspect of creating a good name that GE thrives with at present.
The third element of concern that GE gives attention to is the concept of class. Every elite member of the society specifically wants a distinct design that identifies well with his personality and needs. Families thriving together in a single roof are expected to have different concerns when it comes to the kitchen or the maintenance of the whole house. GE tends to create a picture that would make life easier and classier at the same time, especially for families who have distinct needs from one member to another. For instance, the teenage members of the family might want to have access to sodas and other items that may appeal to their genre. Fathers may have the desire to have constantly cold drinks in the refrigerator whenever they might want to have to unwind. Children may want other products specifically responding to their sweet tooth. Mothers on the other hand are more concerned on making sure that the food they have in stack would be fresh for a long time. All these concerns are taken into account by the creators and designers of GE appliances. Along with such conditions of creating new age refrigerators, they also made sure that other appliances would connive with the creation of GE-basic kitchen design. Some of the other appliances may include electric oven, electric stove, induction cooker, microwave oven, toasters, coffee makers and so on and so forth. Other appliances belonging to maintenance category may also include vacuum cleaners, washers and others. These elements are considered essential in a functional home.
Making sure that their loyal customers’ needs are responded to, the designers of these appliances even offer customization options especially for those clients who have specific demands from the appliances that they buy. Innovation is a key factor that most designers of GE depend upon. Researching upon what the current market expects and designing specific features and programs that could respond to such requirements work well to identify the reputation that GE is trying to establish.
What of the lower-end members of the society who earn salaries that are just right in the budget? GE does not neglect the fact that serving them means serving a larger population in the market. Hence, making amends on the high end designs and adjusting the functions as well as the materials used for a rather more common GE brand makes a distinct impact on how the company is able to create products that would fit both the budget and the expectations of the lower-edge earners in the community.
It has been realized by administrators of the business that people would not mind spending more when it comes to appliances even though they may have meager earnings. Their expectations may be lower especially in relation to how much they are willing to spend on each item they are aiming to purchase. Nevertheless, GE creators do not what them to feel less important than the others. Giving them the option of living a good life [as if they too belong to the elite society] the feel of simply owning a GE appliance corresponds to the emotional desire of satisfaction from the appliances they use at home.
The selection provided to the lower edge earners may not be as extravagant or classy as the ones offered to the higher class of buyers in the market. However, this does not mean that the products offered to them are of lower quality. Creating reasonably priced appliances for them meant making adjustments on the carrier brands of GE such as the Monogram and Profile. The distinction, however, needed to be clear enough to make sure that the elite buyers would not switch to the lower edge appliances dedicated to lower-edge earners in the market.
Appearance and appeal seems to be one of the most distinguishable characteristic that the elite appliances of GE has over the others. The sleek design and the innovative systems of operation defining these appliances are specifically created to make sure that the satisfaction of both market brackets are responded to. Overall, this strategy from GE, especially in the aspect of responding to the emotional satisfaction of their client resulted to increased level of sales and a continuously growing trend of gaining profit from their relative operations worldwide. The company enjoys the pioneer position in the industry and still continues to embrace the culture of innovation in creating better designed and highly functional products for their loyal customers.
References:
Carlson, W. Bernard. Innovation as a Social Process: Elihu Thomson and the Rise of General Electric, 1870–1900 (Cambridge: Cambridge University Press, 1991).
Haney, John L. The Elihu Thomson Collection. American Philosophical Society Yearbook 1944.
Hammond, John W. Men and Volts: The Story of General Electric. New York: 1941.
General Electric. http://media.pearsoncmg.com/ph/bp/bp_akamai/kotler/General_Electric.html. Pearson. Retrieved on April 4, 2014.
