HOW DID GM USE THE MODEL CHANGE IN 1923 TO DEFEAT THE MODEL T BRAND?

HOW DID GM USE THE MODEL CHANGE IN 1923 TO DEFEAT THE MODEL T BRAND?

            Social Media creates great scale and this allows companies to develop competitive advantages that they wouldn’t ordinarily have. A case in point is General Motors. Their strength is social media gave GM a competitive advantage in defeating the Model T brand of 1923.

            It seems ironic that a brand of 1923 would be a benchmark for contemporary social marketers, but that is what happened. Alfred Sloan, the CEO of General Motors in 1923 is a marketer that contemporary marketers should study. General Motors overtaking of the Model T is one of the most exciting stories in American marketing history.  It was done through social media. In 1923, nine out of ten cars on the road was a Model T. Alfred Sloan realized that the only chance he had of overtaking Ford was to use the social media of the day.

            He did what a contemporary social marketer would do to overcome his disadvantage. Sloan created a “friendship” with customers. This friendship allowed him to have conversations with them. He learned that customers did not want just one kind of car, as the Model T was. Customers wanted variety in their cars. They wanted a car that was stylish and fashionable. Customers wanted a car that was “cool”.  Customers showed Sloan the way to defeat Ford.

            Customers wanted a change in the model appearance on a continuing basis. To do this, a company had to have the manufacturing technology to change lines over to different styles. General Motors had this technology and Ford didn’t. The ability to change over gave General Motors a strong competitive advantage over Ford. The yearly model change could only be handled by larger companies. In 1923 there were many niche car companies. The complexity of yearly changeovers ended the existence of tens of thousands of companies. This allowed General Motors to focus their competitive forces on Ford, the industry leader.

            The model change gave General Motors a true competitive advantage. The market of 1923 had changed. “Cool” was now an important issue in marketing cars. People wanted variety and fashion cars. This meant constant change. This was a big difference between General Motors and Ford. General Motors was orientated toward change and Ford was orientated toward continuity.

            The annual model change and diversity of product were incompatible to the way that Ford did business---to their very core as a company.  At Ford’s plants every machine tool and fixture was fitted specially for the production of a single product. Even small changes in the design of the Model T bottlenecked its production. The switch over to Model A production was chaotic. Machine tools highly specialized for Model T production could not be converted to multi model production as was the case at GM. The first model change happened in 1923. General Motors started getting buzz and traction in the market place with their variety model. Ford couldn’t make a changeover until 1927. The result of this was that 32,000 machines used to produce the Model T had to be redesigned and rebuilt and half of the remaining ones had to be scrapped. This cost Ford $250 million to change over. Ford was flatfooted and unable to adjust to GM’s repositioning.  

            Ford had to rearrange all their manufacturing plants to compete with GM’s model change. This cost Ford four years. No market leader lost their position so quickly. Ford has never, to this day, come close to getting even with General Motors in market share.

Dean Hambleton

dnhambleton@gmail.com

SOCIAL MEDIA BRANDING AND STRATEGY; HOW ALFRED SLOAN OF GM USED "COOL" TO OVERCOME THE FORD MODEL T IN 1923

            To create a successful social media brand it is imperative that new material is constantly being created and shared with customers. In creating a brand, image is critical. Brand has two sides. There is a functional side, and there is a side that conveys a symbol. In branding, there is a “cool” factor. Many times it is the “cool” factor that sets a product apart. One of the first C.E.Os to understand this was Albert Sloan. Albert Sloan, though he was leader General Motors in 1923, is an excellent bench mark for contemporary social marketers.

            In 1923, Albert Sloan faced a dilemma that seemed insurmountable. The Model T Ford possessed 60% of the American car market. In terms of numbers of cars, close 9 out of 10 cars that were on the road were Fords. Only 12% of the market belonged to General Motors. Many executives at General Motors in 1923 thought the chance of overtaking Ford impossible. Albert Sloan knew that Ford could be overtaken because he understood social media.

            Albert communicated with customers much like today’s social media world. This engagement was two-fold.   As is the case today on a Facebook Page, Albert learned what customers “liked” in cars.  Times had changed drastically from 1908. There was now a middle class. There were a large group of Americans who had disposable income. The type of car that was driven was the means by which people defined success. The type of car that you had told people what income you were in.

            People wanted variety. In addition, to just supplying a nice ride people also wanted something that looked nice. Style now became important in selecting and buying a car. Sloan understood that image was a deciding factor in the marketing of cars.

            How do you show off variety and style in cars? How do you create buzz?  Albert Sloan decided upon an annual model changeover, a staple in today’s car industry, but a radical new way in 1923.

            The annual model changeover is the means by which General Motors became a social media brand in 1923. Billy Durant, the original creator of General Motors, left Alfred with 5 brands. Alfred had variety built into the GM brand. To enlarge on variety further and to emphasis stylishness and fashion, Albert decided that each brands appearance would change each year---the model change.

            This created buzz and excitement, not only among customers but also among GM personnel. There was a feeling of extreme anticipation on what the new models would look like. This anticipation created important touch points for General Motors. People started talking about the cars. This gave GM advertising that they didn’t have to pay for. The new models created 5 new touch points for GM. If a person bought an entry level Chevrolet, and an Oldsmobile went by while talking to a friend, they would say to their friend, “Look at that Oldsmobile”. Even if the Oldsmobile brand wasn’t bought by the customer, it still got their attention. General Motors wasn’t just one product; it was many products, each creating interest for General Motors.

            The models, the stylishness, the fashion, the brand image, created a new brand for General Motors. The brand of General Motors was that “GM was cool”. General Motors of 1923 became to be seen as Apple is seen today---the company of “cool”.  People wanted to be seen driving a GM car because they were “cool”, just as many people buy Apple products today because they are “cool”, and if you have them you are “cool”.

            “Cool” created a brand for GM in 1923. Ford began to be seen as “old”.

Dean Hambleton

dnhambleton@gmail.com           

WHAT PROCESS DOES MATT DAMON USE TO CREATE A BRAND IN WATER

            Reverse branding is a critical part of branding in the social media era. It is something that a social media marketer must be aware of. Reverse branding occurs when customers themselves brand the entrepreneurs. The brand for entrepreneur creates the brand for the product.

Reverse branding revolves around repositioning the market. Repositioning revolves redefining a market. Many times when markets are repositioned, the paradigm shift is not noticed by the general public. Game changing   entrepreneurs, such as Henry Ford and Steven Jobs, do understand that there have been sudden changes in the ways that markets operate. The only way that a new, repositioned markets can be created is because customers have great confidence in the entrepreneur---that because this entrepreneur is so talented, the new product must be all right. In 1908, Henry Ford realized that the auto market had repositioned itself around lowest cost. In 2007, Steven Jobs realized that the telecommunications market had shifted from a place that centered on communicating voice messages to a market in which data is communicated.

Water is more than $12 billion market.  Actor Matt Damon is creating a brand in water by positioning the market around “the least of these”---people in Third World countries who are dirt poor, who at first glance seem to have no resources to either create or consume at a level that is needed to create a world class brand. Matt is devising a world class brand in water by linking stakeholders. He is linking consumers and developers of water in the Third World. These people are the same. They are citizens of third world villages. Matt is creating jobs in villages to create water. His is arranging for microfinaniers to invest in the villages. This is an ironic combination.The people in the villages are economically destitute and the financiers are hardened businessmen with a cold eye for the bottom line.  Matt is bringing these two seemingly disparate groups together because, together, they have the ability to create a world class brand in water.

            This water brand is being created through reverse branding. Both groups have great confidence in Matt Damon. The fact that Matt Damon is involved creates credibility in the minds of the two disparate groups. Each has created, in their minds, a brand for Matt that allows this project to move forward. The poor villagers have motivation to create a good product. They cannot live without good water. Neither can their families, especially the children.

Because of the quality of the workers, they are an excellent investment target for financiers, who want to become involved in a major contemporary market. Matt Damon is an excellent bench mark for philanthropy. Almost all Fortune 500 companies “give back”. This is a wonderful thing. Matt Damon is developing clean water in destitute villages in Africa by creating significant jobs for good people. He has created a major investment opportunity for private banks. He has created the potential for a major brand in water to be created. He has done this because the confidence that the two separate and disparate groups have in him. He has created a brand in water through reverse branding.

Dean Hambleton

dnhambleton@gmail.com

REVERSE BRANDING: HOW MATT DAMON IS CREATING A WATER BRAND WITH CUSTOMERS AND NOT FOR THEM

REVERSE BRANDING: HOW IS MATT DAMON CREATING A WATER BRAND WITH CUSTOMERS AND NOT FOR THEM

            Reverse branding is a critical part of branding in the social media era. It is something that a social media marketer must be aware of. Reverse branding occurs when customers themselves brand the entrepreneurs. The brand for entrepreneur creates the brand for the product.

Reverse branding revolves around repositioning the market. Repositioning revolves redefining a market. Many times when markets are repositioned, the paradigm shift is not noticed by the general public. Game changing   entrepreneurs, such as Henry Ford and Steven Jobs, do understand that there have been sudden changes in the ways that markets operate. The only way that a new, repositioned markets can be created is because customers have great confidence in the entrepreneur---that because this entrepreneur is so talented, the new product must be all right. In 1908, Henry Ford realized that the auto market had repositioned itself around lowest cost. In 2007, Steven Jobs realized that the telecommunications market had shifted from a place that centered on communicating voice messages to a market in which data is communicated.

Water is more than $12 billion market.  Actor Matt Damon is creating a brand in water by positioning the market around “the least of these”---people in Third World countries who are dirt poor, who at first glance seem to have no resources to either create or consume at a level that is needed to create a world class brand. Matt is devising a world class brand in water by linking stakeholders. He is linking consumers and developers of water in the Third World. These people are the same. They are citizens of third world villages. Matt is creating jobs in villages to create water. His is arranging for microfinaniers to invest in the villages. This is an ironic combination.The people in the villages are economically destitute and the financiers are hardened businessmen with a cold eye for the bottom line.  Matt is bringing these two seemingly disparate groups together because, together, they have the ability to create a world class brand in water.

            This water brand is being created through reverse branding. Both groups have great confidence in Matt Damon. The fact that Matt Damon is involved creates credibility in the minds of the two disparate groups. Each has created, in their minds, a brand for Matt that allows this project to move forward. The poor villagers have motivation to create a good product. They cannot live without good water. Neither can their families, especially the children.

Because of the quality of the workers, they are an excellent investment target for financiers, who want to become involved in a major contemporary market. Matt Damon is an excellent bench mark for philanthropy. Almost all Fortune 500 companies “give back”. This is a wonderful thing. Matt Damon is developing clean water in destitute villages in Africa by creating significant jobs for good people. He has created a major investment opportunity for private banks. He has created the potential for a major brand in water to be created. He has done this because the confidence that the two separate and disparate groups have in him. He has created a brand in water through reverse branding.

Dean Hambleton

dnhambleton@gmail.com

MATT DAMON IS USING BRAND REVERSAL TO CREATE A WATER BRAND

MATT DAMON IS USING BRAND REVERSAL TO CREATE A WATER BRAND IN AFRICA

            Brand reversal happens when a customer brands an entrepreneur. The usual means by which brands are created are when an entrepreneur creates a product and then brands the product so that a customer selects it. This is the conventional means by which branding occurs. Social media platforms have changed how brand are created.

 There are times when an entrepreneur is so talented and so well known and their product is such a game changer that it is the customer that actually brands the product.

            Two examples of this are Henry Ford in 1908, when the Model T was created and Stephen Jobs when the I Phone was created in 2007. In both cases, customers knew that these entrepreneurs had game changing technology. Customers knew that if these two entrepreneurs had created a product, it would be a top brand, no questions asked.

            Matt Damon, the actor, is attempting to create a world class brand in water. Water is a $12 billion market.  Matt’s water brand is being created through reverse branding.  Matt Damon’s brands are somewhat different than the average entrepreneur. He has a few reasons for being in business. He is a serious businessman. He is goal in going into business is to make a profit for both himself and his investors. People should be clear about that.

            Matt Damon does this. Matt has a track record of successful social entrepreneurship. He has been involved in projects that have alleviated literacy, and dwelt with drought conditions, famine, and AIDS. These projects have been in the third world, but their goal hasn’t been straight philanthropy.  Matts goal is to earn profits. It is also to create real jobs in the villages that he works, and to create the infrastructure that humans need to survive.

            Matt’s business model can be summed up simply. “If you give a man a fish, he will eat for a day. If you teach a man to fish, he will eat for a lifetime”. Matt has been successful in his philanthropic-entrepreneurial endeavors. He has created needed infrastructure. He has earned a profit for himself and his investors. He has created legitimate, paying jobs for village people.

            Matt Damon has created a brand through his endeavors. The brand is that he doesn’t simply trade on his celebrity as an actor. The brand is he is personally involved with his projects. His projects are professionally run. Matt uses professional lending agencies and these agencies earn a profit.

            Matt is successful at doing by doing good. This is the brand that Matt has created with people. “If Matt is involved, it must be good”.  Customers create Matt’s brand.  Matt’s organization, Water.org, needs several groups to thrive. He needs African villages and the people of those villages to create water. He needs investors for his village projects. The only way that he can attract people is if they believe in him, that they will be treated well and that they will earn a profit if they become involved in water.org. Matt needs a brand and that brand has been created through reverse branding.

Dean Hambleton

dnhambleton@gmail.com

HOW DID REVERSE BRANDING CREATE THE I PHONE IN 2007?

HOW DID REVERSE BRANDING CREATE THE IPHONE IN 2007?

            Reverse branding happens when a customer brands an entrepreneur.  This branding creates the extreme differentiation that is critical in a social media era. Social media creates great amounts of information.  The information created is perfect information. This great scale of information creates a great many products.  This is the dilemma that a modern social marketer now has to face. How a brand is created that off sets a product from all the other products in that space? The answer to that is that the customer and not the entrepreneur create the brand. This is a role reversal that often happens in social media marketing. It is a new paradigm in brand marketing. In a social media era, brands are created by customers. This is an interesting concept.

            A product that has reshaped modern society is the I Phone. With the I Phone, a person can possess a computer and put it in their pocket book. The I Phone was created by brand reversal. Customers and telecommunication companies believed in Steve Jobs. It was who Steve brought the two together to create this historic product. It was the trust and confidence that people had in Steve Jobs, and that alone, that created the I Phone.

            Steve understood that a Smartphone had to be created. In 2002, people used a lot of gadgets at once for their digital needs. People had to have a phone. A PDA was used for computing. The PDA’s of 2002 were clunky instrument. For music, people had their IPod. Steve’s vision was to design a one product for all. To be marketable, this product had to be special. This new product had to visually elegant. It had to look nice.

            Steve observed something. Telecommunication companies were beating themselves up over price. The wireless phone had become a commodity. By this time in 2002 wireless had reached almost the saturation point. Competition among telecommunication companies was not over new customers---there weren’t any more. It was competition over stealing each other’s existing companies. The only way to do that was to create programs in which customers had to pay less for minutes. Steve knew that the market had repositioned itself. Steve understood that the only way that telecommunication companies could make a profit and become a successful brand would be to create interesting and attractive digital applications on the headsets of phones.

            Steve didn’t want Apple to spend the money to create a smart phone. Apple had the applications and technology for a telecommunication company to create a brand. Steve understood that the entire paradigm of the telecommunications business had changed. Steve understood that voice, making phone calls, was no longer the profit driver of the phone business. The brand now revolved around having a platform to make calls, watch movies, get news, text your friends in real time, listen to music, and play games. For a telecommunications executive whose whole career revolved around providing a voice service, the new paradigm made no sense. When your whole life revolves around a product, it is almost impossible to understand that you’re market has repositioned itself. This is the dilemma that Steve Jobs faced.

            To create the world class smart phone brand that Steve wanted to do, he had to convince a major executive, a first-class phone guy, that the world had changed. Steve was able to do this. He was able to convince Stan Sigman of Cingular Wireless to relinquish all power of design and product development to Apple. This is the story of the creation of the I Phone.

            Reverse branding created the I Phone. Stan had a brand for Steve Jobs. Stan believed that Steve knew how to create elegant technology that would translate into a mega brand or Cingular. Stan rejected all other technologists and listened only to Steve. In a sense, to be consistent with the definition of brand reversal, Stan created the brand for the I Phone. Steve created the product.

            Stan Sigman bet that Steve Jobs had the correct technology to create the Smartphone. The bet was made; the I Phone was created, using Apple technology and ATT networks. I Phone took off, and the rest is history. The I Phone has become one of the pre-eminent brands. The I Phone is the pre-eminent brand in phones because people have branded Steve Jobs. People feel that if Steve Jobs has designed a product, the product must be incredible. This is how brand reversal works.

Dean Hambleton

dnhambleton@gmail.com

HOW DID REVERSE BRANDING CREATE THE MODEL T IN 1908?

HOW DID REVERSE BRANDING CREATE THE MODEL T IN 1908?

Reverse branding occurs when a customer brands the entrepreneur.  This is how the Model T was branded in 1908. How does reverse branding work and why is it so powerful?  The customer chooses the product simply because of the entrepreneur who created the product. This is a powerful form of branding.  An entrepreneur has such a powerful reputation with a customer that this automatically differentiates the product.  It is powerful because the brand is created by the customers themselves. Because of the entrepreneur involved, a product is chosen, to the exclusion of all others, simply because of the entrepreneur who created it.  The entrepreneur creates the product, and the customer creates the brand.  The Model T of 1908 was a successful brand in 1908, because customers had a positive brand for Henry Ford.

       When Henry Ford created a brand for the Model T in 1908, there were 253 auto companies in the US. How did Henry Ford succeed with his Model T.?  Why did the other entrepreneurs fail? Henry Ford offered a low price, but that is not the reason why the Model T went on to become an historic brand. The Model T succeeded because the city of Detroit had a strong brand for Henry Ford. By viewing this two-fold dynamic, modern social media marketers can observe a bench mark for branding. Two things happen when a product is branded. To be successful the product is branded by the marketer.  At the same time, the customer has a brand for the entrepreneur and brands the entrepreneur’s product.

 The Model T of 1908 was successful because it was a modern social media brand. A social media brand is created when the customer and brand create a personal friendship. The two become friends. The brand becomes friends to the product. The customer becomes friends to the brand. In a social media context, a relationship is created that is two-fold. The Model T became an historic brand because it “friended” the public. A two-fold conversation was created between brand and customer.

 It is interesting to study the world that Henry Ford functioned in because there are analogies between our era and his. In 1908, the automobile was seen as the next big thing. Detroit was the center of the action---much as Silicone Valley is the center of our technology world. Inside the car community, Henry Ford had a sterling personal brand. Detroit of 1908 was a machine town and Henry Ford was an ace mechanic. He was also a champion race driver. The lesson for contemporary marketers is that to create a strong social media brand, it helps you immeasurably if you have strong credibility within your community. In creating a brand, ask yourself this question, why should people listen to me? To create a brand, a marketer must have credibility with their customers.

            Because of his credibility, Henry Ford was like Steven Jobs in terms of his personal brand in that era. When the iPhone was first launched, it was highly anticipated because Steven Jobs was personally involved. This was the equivalent situation in 1908 before the Model T was launched. The Model T had strong, initial brand with the public because it was Henry Ford’s car. In a town of ace mechanics, Henry was the ace of aces. Henry was also one of them. Henry worked in machine shops right next to them. They knew that Henry wanted to create a car that would aid them, a “car for the masses”.  They knew that Henry wanted to create a car that would run well, that they could afford, that would be easy to repair. They knew this because Henry was their neighbor.  His car was for them. This sent him apart from Billy Durant and Ransome Olds, and other car entrepreneurs of the time. The other entrepreneurs positioned the car as a toy for the rich. Henry targeted working people.  Detroit created a brand for Henry Ford that the other entrepreneurs didn’t possess.

            The reason why the Model T stood out as a brand is that it had parts that were interchangeable, making repairs easy. Its frame used a new steel from Europe called vanadium that was strong but light, so that the Model T weighed about 25 per cent less than a comparable Buick. Most cars of the day, including the Buick, used ultra-heavy frames to cope with America’s rough and rutted roads, which made them prone to getting stuck.  Henry Ford had a brand for the Model T and this is why it stood out. Detroit had a brand for Henry Ford, which is why they were interested in his unique car creation. The fact that the Model T was Henry Ford’s car instantly gave it credibility. The Model T flexed the road. This allowed it to go places that other cars couldn’t. People had faith in this car because it was Henry’s car.

                        Social media brands are created when brands and customers create a friendship with one another. This is the relationship that developed between the public and Henry Ford.  Henry Ford’s product “friended” the public in 1908.

Dean Hambleton

dnhambleton@gmail.com

SOCIAL MEDIA STRATEGY AND BRANDING;HOW DID HENRY FORD CREATE A BRAND FOR THE MODEL T IN 1908

SOCIAL MEDIA BRANDING AND STRAGEGY: HOW DID HENRY FORD CREATE A BRAND FOR THE MODEL T IN 1908?           

            When Henry Ford created a brand for the Model T in 1908, there were 253 auto companies in the US. Henry Ford offered a low price, but that is not the reason why the Model T went on to become an historic brand. The Model T succeeded because Henry Ford was a brilliant marketer who knew how to brand a product. By observing him, we can gain great insights into branding a product. The Model T became an historic brand because it “friended” the public.

 It is interesting to study the world that Henry Ford functioned in because there are analogies between our era and his. In 1908, the automobile was seen as the next big thing. Detroit was the center of the action---much as Silicone Valley is the center of our technology world. Inside the car community, Henry Ford had a sterling personal brand. Detroit of 1908 was a machine town and Henry Ford was an ace mechanic. He was also a champion race driver. The lesson for contemporary marketers is that to create a strong social media brand, it helps you immeasurably if you have strong credibility within your community. In creating a brand, ask yourself this question, why should people listen to me? The answer to that questions tells you how you should brand your product.

            Because of his credibility, Henry Ford was like Steven Jobs in terms of personal brand. When the IPhone was first launched, it was highly anticipated because Steven Jobs was personally involved. This was the equivalent situation in 1908 before the Model T was launched.

            The reason why the Model T stood out as a brand is that it had parts that were interchangeable, making repairs easy. Its frame used a new steel from Europe called vanadium that was strong but light, so that the Model T weighed about 25 per cent less than a comparable Buick. Most cars of the day, including the Buick, used ultra-heavy frames to cope with America’s rough and rutted roads, which made them prone to getting stuck.  This is an area that Henry created a brand of his Model T. The Model T flexed the road. This allowed it to go places that other cars couldn’t.

            Working people needed a car.  In the market of 1908, price would be a key issue. The entrepreneur that could deliver a car that the masses could afford would create the pre-eminent brand. Ford didn’t invent the assembly line, but he did refine it and applied to a manufacturing situation. This gave the Model T the enormous cost advantages that were needed to create a brand.

            The assembly line was a key to the Ford brand. He could produce more cars quicker, with each new car less costly to produce than the one before it. On January 5, 1914, Ford did something that sealed the Ford brand. He offered to pay his workers $5 a day. For its time, this was a stunning announcement. The car business is a feeder. There are many businesses that must feed the car business for the car business to work. Now these companies had to come up in wages to attract good workers to produce a product that was acceptable to Ford Motor Company.

            A middle class was created. This middle class understood who had created their prosperity and people felt a loyalty to Henry Ford.  Henry Ford had created a brand with the middle class. The middle class now wanted Henry’s car.

            Social media brands are created when brands and customers create a friendship with one another. This is the relationship that developed between the public and Henry Ford.  Henry Ford’s product “friended” the public in 1908.

Dean Hambleton

dnhambleton@gmail.com

WHY MODEL T OF 1908 IS THE FIRST SOCIAL MEDIA BRAND

The Model T was unveiled on October 1, 1908 and it became the first social media brand. The Model T overnight changed American culture and because it did, it became the object of songs, poem, books, movies and plays. This created a dominant brand as does any contemporary product that becomes the object of social media branding.

         To create a brand, a product and customers have to create a friendship. In the Model T’s case, the car became like a family member. This created incredible brand for the Model T. For the first time, a product became branded through customer created content. We have this feeling that social media brands are a new thing. In studying the era one of the most interesting facets of studying the Model T is that it became an almost human being. The Model T became a part of the family. The Model T of 1908 is similar to how Ford introduced the Ford Fiesta in 2009. Customer created content branded the car. This created a relationship between customer and brand.

            One of the most successful social media campaigns has been Ford’s Fiesta Project. In the Fiesta Project, people took a Fiesta and made video around it, wrote posts and blogs, and created a lot of content that created a dominant brand. This happened in 1908. Some of the most popular songs, books, play, and movies revolved around the Model T. The Model T even had a name. “The Tin Lizzie” gave a human quality to Model T. In 1914, one of the most popular songs in America was “The Little Ford Rambled Right Along”.  There was even a Cars of 1908. “The Scandal of Little Lizzie Ford” depicts a demure T garaged with a rakish, low-slung sports car.  Scandalous.

            Simply put, the Model T changed the way Americans live in a way that no other product in our history has. Because this car was affordable to the average citizen, important support structure had to be built. Roads, parking lots, service stations, hotels, and a large part of the domestic hospitality industry were created as a result of the Model T. The car industry has developed the steel, rubber, and glass industry. The car business is the biggest customer of the upholstery business.

            This structure has created jobs. It has created a middle class. When the Model T appeared in 1908, the per capita income of the US was $500 per person. To attract workers, Henry Ford offered a $5 wage, which was radical in that era. Because the auto industry was a “feeder”, and because Ford was an attractive contract to have, supportive businesses had to pay a wage that was comparable.

            The automobile changed our dress, manners, social customs, vacation habits, the shape of our cities, consumer purchasing patterns, and created common tastes. Road construction spawned taxes. These taxes were the driver that allowed governments to create the publicly funded school system. One reason why America has been able to compete in the 20^th century is the education level of our citizens.

            The Model T influenced the way homes were built.  In the building of a house, the front porch and parlor gave way to the building of a garage. Because the Model T was so affordable, the garage was built so that it could contain 2 cars.  This also influenced the way in which couples courted one another. Before the Model T, couples courted one another in each other’s living room. The car created less supervision in dating.

            Auto safety created a new industry. The development of traffic lights became a major industry. Traffic safety made millionaires out of a select group of entrepreneurs. Garret Morgan of Cleveland, a gifted African American inventor whose parents had been Kentucky slaves, followed up by patenting the modern four-way traffic light now used all over the world.

Dean Hambleton

dnhambleton@gmail.com                     

WHY HENRY FORD IS THE MOST SIGNIFICANT AMERICAN WHO HAS EVER LIVED

                 All Americans should revere Henry Ford and the Model T. The man and the car simply revolutionized America as we know it., there are two sides to Henry Ford. There is a great side---a truly great side. This man understood the importance of his brand. He understood just how important and historic this product would be. Unfortunately, he also has a terrible and vile side---a truly terrible side and vile side.

            Henry Ford was a common man himself. He came from a farm. He came to Detroit and worked as a mechanic. He was renowned as probably the top mechanic in a town for known for machinery. He lived in a world in which the per capita income for an American was $500 a year. Henry Ford understood the importance that the automobile would bring to the average American. This is why he was adamant about creating a “car for the masses”.

            This was not easy. He fought with his early investors. The Ford Motor Company was his third motor company. His investors wanted Henry to create a car for the rich---this is where they thought the greatest payback would be. Ford thought the greatest payback, long-term, would be entry level. Ford did want to become rich. He also wanted to create a product that would revolutionize America and make the average person’s life a lot better. The intent was two-fold on the side of Ford. His $5 a day wage changed America. It created a middle class. We feel Henry Ford’s influence today.

            When $ 5 a day was announced, it brought blacks from the south, into the north, to work. Now they could vote. You cannot win the Presidency of the United States if you do not carry Michigan and Ohio. These are states that are traditionally Democratic---but still winnable for Republicans.

            To win these states, the Republicans have to field a moderate candidate. The Republican Party is a very conservative Party. Radical Republican candidates cannot win a national election. Our recent political history was created by the voting coalitions created by Henry Ford. The New Deal, Franklin Roosevelt, Harry Truman, Dwight Eisenhower, Jack Kennedy, Richard Nixon, Jimmy Carter, Ronald Regan, George Bush I and II,  Bill Clinton, and Barack Obama owe their Presidencies to the development of the car.

            There is also a tragic and terrible downside to Henry. Henry was probably the most significant racist and anti-Semite this nation has ever had. It is just hard to understand how one man has done so much and created so much turmoil for African Americans than has Henry Ford.

            No man has done more for the average American worker than Henry Ford. But no man has hurt the worker as much as Henry has, either. The Labor Strikes at Ford in the 1930’s are historic for their violence. Men were beaten and killed violently simply because they wanted a safe place to work.

            Adolph Hitler loved Henry Ford because of his organizational skills, but mostly for his Anti-Semitic views. Why was this man so hurtful in the latter years of his life? When Henry Ford came on the scene he was not a young man. There is a strong possibility that dementia overtook Henry.

            To their everlasting credit, no one in America has tried to quell Anti-Semitism as much as the contemporary Ford Family . They have given millions to Jewish organizations. Bill Ford should be lauded for the work he has done in creating understanding between Jew and non-Jew. If you know Bill Ford, please shake his hand and thank him.

            Let us take Henry Ford in his entirety. Let us focus on the wonderful things that he has done. Again, no man has influenced America in a way that he has.

Dean Hambleton

dnhambleton@gmail.com

HOW ALBERT SLOAN AND ALAN MULALLY USED SOCIAL MEDIA TO INSULATE THEMSELVES FROM IN EVOLVING MARKETS

Social media is about technology and techniques. These techniques and technology help us engage people to create deep relationships. The deep relationships created by social media are a tool that a modern marketer uses to insulate themselves from error. Marketing is about making bets in the market place. The size of social media allows a marketer to make better bets. When social media is used properly, the relationships created by engagements insulate a marketer from error. A marketer now can rely on the wisdom of many instead of just himself. There is a wisdom to crowds that insulates from error. Two example of this are Albert Sloan of General Motors in1923 and Alan Mullally of Ford Motor Company in 2011. Both of these CEO’s from different eras used the wisdom of crowds to make critical bets that repositioned their brands and insulated themselves and their companies from error.

Both of these CEOs came from a different era. They both used the social media of their era to adjust to the speed of their markets. This adjustment allowed them to understand the paradigm shifts in their markets that allowed them to adjust and to reposition their products so that they were able to create a brand that was unable for their opponent to compete against.

Henry Ford was autocratic and he made the important decisions for Ford in the early ‘20s. Alfred Sloan at General Motors organized executive committees to collaborate and make the important decisions after deep group discussion. This set up has great impact General Motors to this day. General Motors needed a luxury brand to offset Ford. Sloan had two choices, either the Seville or this thing called Cadillac. Seemingly from a cost standpoint the Seville had a cost advantage. There was a committee meeting that changed everything.

The manager of Cadillac, Nicholas Dreystadt, told the committee that Cadillac had an image with black professionals, which was an important niche market for General Motors,  that other managers weren’t aware of.  Black professionals purchased Cadillac as a symbol of their success. Because of this all blacks desired to purchase a Cadillac, even if they couldn’t afford it. This created a brand for GM among all blacks, a demographic that now becoming important. This information could only be developed through group discussion. It was not information that was common in the general car business. Cadillac was selected, and it is a major GM brand to this day.

In our modern era, General Motors had a technology that Ford had no answer to. It was a patented technology that was only available on General Motor products.  The emergence of social media allowed Ford to create a technology that has repositioned the modern automobile market.

Ford’s C.E.O Allan Mulalley ordered his Vice Presidents to embrace social media as a means to communicate with the customers of their markets.  This has given Ford a great deal of information and insight that they would never have developed on their own.

In talking with customers and in studying the technology, a Ford Vice-President, Doug Van Dagens, made a prescient observation.  He observed that General Motors technology originated inside the car. Social media is about taking your technology and connecting to other devices. This is what Ford has decided to do with its newest models. With the newer Fords, a customer brings their devices with them, and plugs them into the Ford.

Ford had made a major breakthrough in the area of texting. You hook up to a panel, activate voice recognition, dictate your text, and that text is sent out, safely.

Ford has repositioned the car. It is no longer a mechanism of transportation. The car is now a social media platform. Social media is fast markets. Embracing it has allowed Ford to adjust to the speed of the market.

Dean Hambleton

dnhambleton@gmail.com                                  

HOW ALBERT SLOAN USED COLLABORATION TO DEFEAT THE FORD BRAND IN 1923

HOW ALBERT SLOAN USED COLLABORATION TO DEFEAT THE FORD BRAND IN 1923

         Social media creates the wisdom of crowds.  The wisdom of crowds insulates a marketer from error. The purpose of social media is engagement. This engagement is between customer and brand.  Engagement also within the organization itself. This is why General Motors succeeded in creating a brand in 1923. It is the reason why Ford Motor Company failed. Markets change fast in a social media world. This is because there is so much scale. Social media is the tool that modern marketers use to adjust to this speed and scale. There is much material in modern business.  There is great wisdom in crowds. Alfred Sloan, the CEO of General Motors in 1923, understood this. He organized a system in which department heads had a say in how strategy would be developed. Alfred invented modern management. How he ran General Motors is a benchmark, and it is the reason why modern social media strategists should study Alfred Sloan of 1923, today. In 1923, nine out of ten cars on the road were Model T Fords. By 1926, General Motors gained the lead in market share. The reason why this happened is because Mr. Sloan created collaboration through the social media that was available to him in that era.

            In contrasting Albert Sloan and Henry Ford, and explaining why General Motors created a brand, let me quote Dr. Yogi Berra.  Yogi once said, “You can see an awful lot just by watching”.  Mr. Sloan created a brand at GM because he saw that Mr. Ford was making a significant mistake.

                   To be successful in social media marketing a professional has to be both humble and flexible. Albert Sloan of General Motors in 1923 was both of these. Henry Ford was neither and this is why his story had such a tragic ending. Henry Ford was autocratic. One man made the decisions in that company. Anyone who had an idea different than Mr. Ford’s was fired. This is why the Ford Motor Company missed the vast paradigm shifts in the American auto market in 1923.  

            Mr. Sloan was a brilliant man and the reason he was so brilliant is that he understood that he didn’t know everything. To offset this, to create policy and strategy, and to insulate himself from error, he created an executive committee in which the heads of the departments would get together and discuss things. This was the beginning of modern management. It was the beginning of modern social media. Mr. Sloan did not have Facebook or Twitter, but he used the social media of the day. He engaged his employees who had engaged their employees, who had engaged their employees. Today, people would send Mr. Sloan a wall post, or a tweet. In his day, Mr. Sloan’s Facebook page was talking to people face to face.. Mr. Sloan collaborated with his “friends”.  Issues were discussed; there was a meeting of the minds.

            From these committee meetings, Mr. Sloan realized that a strong middle class was developing in the United States. Women and African-Americans were now a significant market for a car producer. Mr. Sloan understood this through group discussion.   Mr. Ford wasn’t aware of these changes, and everyone at Ford was afraid to tell him.

            General Motors created a strong brand among women and blacks. This demographic was an important reason why General Motors became the market share leader in 1926. The committee set-up allowed Mr. Sloan to function in a world of change. Mr. Sloan made this observation about Mr. Ford, meant in honest and respectful manner. “The creator of change didn‘t realize when change had come”. Every modern social media strategist should understand how Mr. Sloan created a brand in 1923. I would like to end with a quote from Dr. Yogi Berra, “The future sure ain’t what it used to be”.

Dean Hambleton

dnhambleton@gmail

HOW GENERAL MOTORS USED CADILLAC TO CREATE A BRAND

            Brand image is important separating one product from another. Brand image revolves around perception. It is this perception that creates world class brands. Brand image is significant in a social media era because there are just so many brands. A marketer must do something to set their product apart. Image is a powerful medium to do this.

            Brand image is speech. Through image, a brand talks to their customers. Brand image says “success” as in the case of Cadillac in 1923.  A famous brand image in contemporary marketing is an insurance company’s claim that “you are in good hands with…” followed by an image of a house in two hands. Another image from this company is “….the goods hand people”.  This is a strong speech. It tells people that if they sign for this company’s insurance, they can depend on this company if times go bad. In 1923, if you drove a Cadillac, it meant that you were “successful”.

            Albert Sloan was one of the first CEOs who understood the importance of brand image in creating brand. This is significant. In 1923, nine out of 10 cars on the road was a Ford. It seemed that GM would never overtake Ford. Mr. Sloan knew better.  In engaging with people, his social media of the day, Mr. Sloan knew that the market was changing.

            America now had a middle class. People used their car purchases as a means to define their professional state. Cars were no more than just a means of transportation.  Customers were looking for more than just a low cost car. People wanted a car that would brand them, as it were. Entry level people drove Chevrolet, supervisors drove Oldsmobile, and very successful people drove Cadillac.

            Mr. Sloan understood that brand image would help him overtake Ford. Ford had one car, the Model T. People bought his car because it was inexpensive and it provided cheap transportation. In 1923, people wanted more than that.

            Cadillac was a key brand in overtaking Ford because of the brand image Cadillac conveyed. The image that Cadillac conveyed was success. This cut two ways. Some people drove Cadillac---BUT ALL PEOPLE WANTED TO.  This created a brand for the entire GM family of brands---“GM drivers are successful, I want a GM car”.

            This image was significant in the Black community. Black people were now coming north. In the North, there was an enclave of blacks who were getting some opportunity. Though small, there was a group of blacks that were becoming doctors, lawyers, and business owners---successful people. These blacks wanted a car that would reflect that. To these people, who had to overcome significant obstacles to reach their state in life, a Cadillac was an important symbol.

            This was a significant niche in the car market for GM. The black professional niche created a dependable group of people who would buy Cadillac on a recurring cycle.  This created a significant brand in the black community, which was now beginning to become an important market segment. The importance of Cadillac transcended more than just the people who actually bought the car. It created an important touch point and symbol that helped GM create a significant brand in the entire black community.

            Not all blacks could own a Cadillac, BUT THEY ALL COULD ASPIRE TO owning one.  General Motors brand image was now “success”. Blacks now began to gravitate toward GM because “successful people drive GM”.

Dean Hambleton

dnhambleton@gmail.com

  

BRAND IMAGE; A COMPARSION BETWEEN HOW THE CADILLAC OF 1923 AND THE ACURA OF 1986 WERE INTRODUCED

BRAND IMAGE: A COMPARSION BETWEEN HOW THE CADILLAC OF 1923 AND ACURA OF 1986 WERE INTRODUCED

            A brand image is critical to creating a brand because a brand’s image makes a speech to a consumer. Through its image, a brand explains to the world what the brand’s importance is. The first man to understand the importance of brand image was Alfred Sloan, the CEO of General Motors in 1923.

            In 1923, General Motors wanted to become the pre-eminent brand in cars. To do that, GM had to convey to its customers that its cars are different than Ford’s because the people who drive them are different. The image that GM wanted to convey is that successful people drive Cadillac.  Because Cadillac is part of the GM group, the image that GM was trying to create is that GM is equivalent with success. If you drive GM, you are a successful person---you must be---you drive GM---and GM is successful. Cadillac was used to brand all GM products. Ford let them do it. Ford had only 1 car, the Model T. Henry Ford thought that expensive cars were unnecessary and frivolous.  He gave the field to GM. He wanted to communicate the image that a Model T was a practical car---you can have a dependable ride without an exorbitant cost. Henry Ford didn’t realize that the American society had changed. People now defined their station in life with a car. Sloan realized that Cadillac created a sense of accomplishment for the entire GM brand. This image is an important reason why GM became the leading brand in 1926.

            Times change, and it is important for social media strategists to understand why Honda created a different brand image of its luxury brand, the Acura, when it introduced the car in 1986.

            Cadillac and the other GM brands had been in existence for a long time before 1923. Customers had a history and a relationship with these brands. The Acura was a new car. It didn’t exist prior to 1986. This meant it had no image that it could communicate to people. Acura had to start from scratch. Honda felt that Acura had to create its own image. Honda felt that Acura should have conversations with a new demographic of customers. The customers that would be buying an Acura, were not the same customers that had been buying Civics, Accords, and Preludes.   It had no concept, such as success, to communicate to the public.  Because it is new, Honda did not want a poor introduction of the Acura to hinder their other brands.

            Honda’s strategy, in contrast to GM in 1923, is to create a new image for the Acura. Acura became a new thing. It had separate dealerships, and separate manufacturing factories. In terms of social media, Honda wanted the Acura to create their own fans, their own friends, their own following.

            By relying on a new network the Acura became very successful. Because it created a proper imaging campaign the Acura has gone on to become the largest selling luxury car in the American market. In a social media era, we must understand some things in creating a brand image.

            The image is created in the mind of the customer. Image is something that is received from the brand and interpreted by the customer.

            The prospect positions the image in relation to other products, with the help of marketer. General Motors was able to define Cadillac as successful and cool in relation to Model T, as old.

            The image must also be flexible. This is why Sloan invented annual model changes, to keep adding buzz to the image.

Dean Hambleton

dnhambleton@gmail.com  

           

HOW ALFRED SLOAN OF GM USED BRAND IMAGE TO CREATE A BRAND FOR CADILLAC IN 1923

HOW ALFRED SLOAN OF GM USED BRAND IMAGE TO CREATE THE CADILLAC BRAND IN 1923

            Brand image is the means by which products make speeches. This is a critical fact to know in creating a brand, especially in a social media era. The essence of social media is communication. A brand and its customer communicate to one another in an almost human dimension. A person selects a brand to make a speech. You select a brand to convey your position in life.

            Alfred Sloan, the CEO of General Motors in 1923, understood this. He is probably one of the first CEO’s to understand how important image is in creating a brand. He understood that brand image is a subjective thing---it is in a person’s mind. It has no functional value---but it is a critical factor in creating a brand. Brand image is a critical factor in having a product selected. This is why the Cadillac brand was a central factor in Sloan’s strategy of overtaking the Model T and becoming the pre-eminent brand in cars in the 1920s.

            As 1923 began, Mr. Sloan looked to be fighting a no win uphill battle against Ford Motor Company. The model T was one of the most successful brands of all time. When Mr. Sloan looked out of his office window, nine out of 10 cars he saw was a Model T. He knew that the only way he could compete against Ford would be to create a social media brand.

            In our day and age, “social media” conjures up the images of large social media platforms. In its purest essence, social media is the personal conversation between a brand and its customers. The two create a human relationship. They become friends. Friends speak to someone openly. This is what Mr. Sloan did in creating his social media brand circa 1923. To create his social media brand for General Motors, he traveled extensively.

            Mr. Sloan traveled the country, talking to people, listening to people. He wanted to find out what were the deciding factors that people experienced in buying a car. He discovered a critical fact about the America of 1923.

            In 1923, America now had a middle class, it had a leisure class. People had disposable income. Women were now entering the workforce. This was a big impact for two reasons. This meant there was now a second paycheck in the house. It also meant that women now exerted a bigger influence in buying decisions. A car is a major for a family.

            Another important fact that Mr. Sloan learned in his personal social media was that people used a car to explain their financial position in life. People entering the workforce drive Chevrolets. People who are successful drive Cadillac. This is why Sloan knew that Cadillac was critical in his branding. Few people could afford Cadillac----but all WANTED TO. Cadillac was the brand of success. By extension, General Motor products were driven by successful people.

            Sloan was also the first automotive CEO to advertise heavily. In his advertising he emphasized the “success” factor;  he emphasized the “cool” factor.

This campaign worked. By 1926, General Motors had overtaken Ford as the pre-eminent brand in America---mainly because of brand image. The point to be made in observing Mr. Sloan in 1923, is the critical importance that brand image has on our modern social media brands.

            The importance of brand image can be best explained in a story about Mr. Ford.  Henry Ford, Thomas Edison, and Henry Firestone were the best of friends. Each year they took a camping trip together. One year their car, a Model T, broke down. It was near a farm, and Mr. Ford roused the farmer to help him get his car started. This farmer did Mr. Ford a favor. The farmer didn’t recognize Mr. Ford. Mr. Ford gave the farmer a rather large gratituity. The farmer, still not recognizing the three men, could not accept the large amount money. Being as humble as he could, Mr. Ford said, ”farmer, we three are somewhat successful. We can afford this, please take this”. The farmer looked at them and said, “You fellows can’t be too successful. After all, you’re just driving a Ford “.  

Dean Hambleton

dnhambleton@gmail.com

"VUN FOR VUN"--HOW ALFRED SLOAN USED CHEVROLET TO OVERCOME FORD'S MODEL T IN 1923

“Alfred Sloan used the social media of his time to overcome Ford’s seemingly insurmountable lead in 1923. When Mr. Sloan took over GM, he realized that to overtake Ford and to become the pre-eminent brand in cars, he would need a strong brand at the entry level and at the top level.

            He would need a strong entry level because the Ford Model T was predicated on a low price.  The Model T owned the entry level market. Sloan needed an entry level car to build a brand for GM. People’s initial car purchase was always a Model T. This initial purchase created a bond between customer and product that is hard to break. To create long-term customer value, an attractive entry level car was essential for GM. He needed a strong luxury brand because this segment that is not influenced by the national economy. The people in this demographic bought a car, without fail, every two years. A strong brand in Cadillac would give GM a dependable revenue stream that would help fund the rest of the organization.

            Sloan targeted the lower and upper segments. T he middle segments would take care of themselves. If people originally purchased an entry level Chevy, they would move into middle segments for subsequent purchases. Ford did not compete in the middle segments. Chevrolet was the critical piece in Alfred Sloan’s strategy.

            “Okay”,  Alfred said to himself in 1923. How do I get this strategy to work?  How he answered this question should be studied by contemporary social media marketers. Alfred used social media to create a social brand at GM that is equivalent to today’s strong social media brands.

  A simple definition of social media is when the brand and the consumer engage one another. The two develop a close, almost human relationship. The two become “friends”. This friendship creates many touch points between brand and the consumer. These multiple touch points create the consumer buying decision. When Alfred Sloan became head of General Motors, he traveled the country talking with customers. He engaged with them. In 1923, the General Motors brand created friendships with their market. These conversations allowed Mr. Sloan to realize that the car market was now different than it was in 1908. These differences changed the entire paradigm that the car market was based. This allowed Mr. Sloan to understand that he could overtake Ford with the right strategy.

America now had a middle class. This was in contrast to 1908, when the Model T began. People now had disposable income. They would pay extra for a good product. No longer was a low price the deciding factor in choosing a car. People wanted a car that was easy to operate and that would give them a comfortable ride. People wanted a car that looked nice. People wanted a “cool car”.  Manufacturing technology had also changed. In 1923, an assembly line could be shut down and rebuilt to offer customers variety in car options. This shut down could be done in such a way that the company would not lose any money.

The new Chevrolet came in a variety of colors. It had headlights for night driving. It had indoor heaters to offset cold weather. It had windshield wipers to offset bad weather.  The Chevrolet was entry level, but it was stylish, easy to drive, with options that an average customer would really need on a drive. Next to the Chevy, the Model T looked old, and dowdy, …”just so ‘08”.

Still, the Model T had a strong brand. In 1923, nine out of ten cars on the road were Model Ts.  Chevrolet dealers had to be energized and convinced that the Chevy could now compete with the Model T. Again, Sloan used social media of the day.  Social media is used, not just to engage customers, but to motivate workers in an organization. This is how Mr. Sloan used the social media of the day.

Bill Knudsen was a Danish gentlemen how headed the Chevrolet division. Mr. Sloan sent Bill Knudsen to dealerships around the country to excite them about the product.  One meeting changed the dealer’s outlook. When asked what his goals were for Chevrolet, Mr. Knudsen answered in his thick Danish accent, “I want vun for vun”---I want one for one. “Vun for Vun” became the rallying cry for the new Chevrolet division and soon the historic Model T brand was overtaken.

Dean Hambleton

dnhambleton@gmail.com