Learn from Ford's big mistake

From: http://www.bizjournals.com/sacramento/stories/1997/03/03/smallb6.html

Friday, February 28, 1997

Learn from Ford's big mistake
Sacramento Business Journal - by Bill Gallagher

Many years ago, the huge Ford Motor Co. made a huge marketing goof. The goof was so enormous that even though you may not have been alive at time, chances are you have heard about the infamous Edsel.

Many people think the car bombed because of its design. Not so. While the central design theme was somewhat bizarre -- the car looked a bit as if it were some kind of giant fish sucking on a lemon -- the look wasn't the source of the debacle. It was the marketing.

As the story goes, from the CEO's office down came the word, "We want a car with something for everyone, the Edsel." Obediently, marketing ordered lots of models with lots of prices. More than 20 models were designed, from four-door sedans to racy sports models, each sucking that lemon and all headed for disaster.

Something for everyone -- lots of models with lots of prices -- spells a very negative marketing kismet.

Let's contrast this gloom and doom with a success story. A Ford success. A huge Ford success. Did I say huge? Bigger than huge. Enormous. Gigantic. And years later, still going. I speak, of course, of the Mustang.

The success was due to a tightly focused sales campaign, what we call today "target marketing."

The defined, or targeted, market was:

1. "Young," meaning age 20 to 30.

2. "Second family car," meaning age 30 to 50.

The model was positioned as easy to handle and uncomplicated. Thus, everyone knew what a Mustang was and who was supposed to buy it. They did, in droves.

The Mustang's popularity started with a very narrow target market, the young and the "young at heart." It was designed for the wants and needs of this market alone. Ford knew the market wanted an uncomplicated car that was easy to handle.

Some of you may recall that a few years later, Ford decided to widen the Mustang offering. Sales, of course, dipped.

Loss of targeted marketing focus usually means a loss in sales. We in smaller businesses must learn lessons from the big guys. They can afford to make mistakes here and there, but we can't.

A final word or so: Find out who wants or needs your products or services the most. Set up all your efforts to that small slice of North America. Later we can target another marketing segment.

Bill Gallagher is head of Guerrilla Sales & Marketing in Diamond Springs and co-author of "Guerrilla Selling." For more information on the topics and ideas in this column, call (800) 800-8086 or send e-mail to bguerrilla@aol.com.