Posted: February 28th, 2022

The Current Marketing Environment for Corvette

The marketing environment of the Corvette includes both the micro and the macro environment. The microenvironment, which consists of forces close to the company, affects its ability to serve customers while the macro environment consists of general forces that the firm has no control over. Analyzing the microenvironment of Corvette, which consists of the company, suppliers, marketing intermediaries, customers, competitors and the publics, it can be observed that General Motors has posted losses worth nearly $39 billion and is seeking a bailout from the government.
To combat this, the company is undergoing cost cuts and has negotiated a new UAW contracts that will allow them to hire thousands of workers at lower wages. Further, the company has decided to lay-off workers as well as shifting retiree health-care responsibility to the union, to lower the company’s labor cost per car by as much $1,400 by 2011 (Popely, 2008). With regards to the suppliers and the marketing channel firms, they are facing tumultuous times as these firms too are facing the cost cut backs.
According to (Barkholz, 2009) suppliers in January 2009 have prepared for a pitch of $10 billion in federal loans as they require shorter payback terms so that they are able to meet their cash flow needs. As far as customer markets are concerned, Corvette is considered to be a sports racing machine for the elite while the mediocre masses prefer small, sporty cars that economize on fuel. Competitors, another constituent of the microenvironment, include Porsche, Ferrari, BMW among others in the competitive sports industry.

However the current scenario indicates that the Corvette did gain market share as its competitors saw even sharper declines. ‘Sales figures for 2007 show Porsche sales were down 7 percent, BMW down 18 percent, the Mercedes SLK down 30 percent, the Dodge Viper down 70 percent and the Ford GT, which will no longer be in production, was down 88 percent. ’ (Cetawayo, 2008) With regards to the publics that have a direct bearing on Corvette are the financial publics, which influence a firm’s ability to obtain funds.
In recent times this includes the federal lending agencies along with banks and investment houses that have a stake in the brand. The general public, which currently does not have a favorable opinion of these giants who are asking for tax-payers money to keep them afloat, also effects the brand’s environment. According to a CNN report (Levs, 2008)the General Motors Chief Executive arrived on a private jet to Washington to ask for federal loans to keep the company afloat.
Given the mode of transportation, several lawmakers and many from the general public opined that the company’s top management is lavishly spending on fringe benefits and facilities while pleading for a bailout. With regards to the Macro environment, the demographics of the population have changed in terms of lifestyles where smaller family sizes dictate a need for smaller cars. Given the increased awareness about fuel and environment conservation people prefer smaller foreign made cars to locally produced cars that are not as economical on fuel.
As far as the natural environment is concerned, environmental hazards dictate that Corvette should be less polluting. In this regard, the Corvette already achieves the required 30 miles per gallon. The technological environment for Corvette is also such that it indicates faster innovation to be at par with competitors, while political and cultural forces indicate that the management needs to realize that they too are accountable and liable to cost cutting measures. However, with the economy going deeper into a recession, experts speculate another difficult year for Corvette.