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General Motors' Mike O'Malley Challenges Illinois Broadcasters

12 October 1999

General Motors' Mike O'Malley Challenges Illinois Broadcasters

    OAK BROOK, Ill., Oct. 12 -- Mike O'Malley, general manager of
General Motors' North Central Region, challenged the Illinois broadcasting
industry to develop more innovative and creative ways to tie their outlets to
relationship-based marketing at the Illinois Broadcasters Association (IBA)
Meeting here this morning.
    In front of more than 100 attendees, O'Malley explained GM's newest
strategy to switch from mass-marketing to a more targeted approach in order to
build more personal, one-on-one relationships.  O'Malley wants Illinois
broadcasters to tie into ongoing events with GM and the rest of the corporate
world, rather than to seek regular "media buys."
    "Look at every product and marketing tool we provide and look for ways to
leverage their effectiveness with each target market," O'Malley said.  "And
look for ways to leverage their effectiveness with your media."
    O'Malley discussed several of GM's newest marketing approaches, including
recent associations with the world of sports, the arts and entertainment.
These associations help bolster customer enthusiasm, employee morale and
overall innovation, as well as sales and profits.  O'Malley said it will help
GM build one-to-one relationships with its customers by meeting their needs
more efficiently and effectively.
    "It's part of a bold, new marketing stance that we're using to increase
our visibility ... and extend our products into people's lives," O'Malley
said.  "Nowhere is that more important for General Motors than here in the
Midwest and the states that make up our North Central Region."
    The North Central Region -- one of five new areas created from a recent
reorganization -- has proven to be GM's main focus because of the sheer volume
of sales in the area.  GM dealers will sell more than 1.2 million new cars and
trucks this year -- about 29 percent of GM's total retail sales for the entire
country.  In fact, GM does $30 billion of business in this region alone, said
O'Malley.
    Facing the realities of a more regionalized outlook, GM's five regional
offices are each staffed with local sales and marketing experts.  The regional
staff is responsible for implementing regional and market-specific strategies.
    Because the focus is now on local markets, GM is putting more money into
individual dealer advertising and promotions.  GM believes this will create a
more consistent retail brand voice at the regional level.
    As an example, O'Malley discussed Chevrolet's partnership with Disney and
how it has led to other opportunities, including the Chevrolet sponsorship of
the grand opening of "ESPN Zone," a new restaurant/interactive sporting place
in downtown Chicago.  In fact, the ESPN Zone connection has led to a
partnership with the "Huge Show" on ESPN Radio 1000.
    Many of the partnerships in the region are based on demographic
information about the types of vehicle buyers.  For instance, Pontiac-GMC's
demographics match up well with hockey fans, so it was a major plus to become
a sponsor of the NHL's newest expansion team, the Columbus Blue Jackets.  In
addition, Chevrolet plans to sponsor the new Cleveland Browns of the NFL,
based partly on demographic information.
    "These partnerships will help us develop integrated promotions for markets
throughout the region, with a special emphasis on media, on-site displays and
signage," O'Malley said.
    GM's North Central Region is headquartered in Naperville, Ill., and is one
of five GM regions across the country.  The region encompasses 13 states and
sells more than 1.2 million new GM cars and trucks every year.