An outstanding fact about social media marketing is the fact that markets move very fast. Social networks create a large scale. Scale creates the sheer speed we find in contemporary markets. The way social media brands are created is that you first position a product. The scale of the market makes it evolve. This means that the product is repositioned. As the brand continues, the repositioning creates a new positioning.

The way the early automotive industry was named is one example. Two great giants of this era were Henry Ford of the Ford Motor Company and Billy Durant who created General Motors. Both understood that the original market would depend on the low price. Durant also felt that the low price should also have variant markings to target different groups. Henry thought price was the key and built a world-class brand on the Model T. For a time, Henry’s gamble was the right one.

The market evolved over time. As the 1910s progressed, a middle class developed. With more resources available, people began to want more than just a low price on a car. The variation in income created different targets for the car. This created a need for the car to be branded in different ways. Fortunately, for GM, Billy Durant had created these different brands. In the General Motors model, Chevy was the entry level for low-income people. Ponitac was the next level. This is for people who start a job and start receiving early career promotions. For the mature mid-career there is the Oldsmobile. For those people who know that the Buick is on the fast track. Finally, for the people who made it, there’s the Cadillac.

I believe that the GM model is the model that modern social marketing should follow. Different income groups define their products differently. Brands help them define themselves. This is the beginning of what is called the “umbrella” brand. These are several brands of the same product, under the roof of one company. It is this strategy that allowed General Motors to overcome Ford’s seemingly insurmountable lead in the 1920s to become the preeminent brand in automobiles. What are the benefits of having an umbrella brand versus having just one big brand like the Model T?

As in the case of General Motors, a great benefit is MARKET GROWTH. There is strength in numbers. With many brands, such as the GM family, there is an ongoing commitment to the General Motors brand, rather than the singular General Motors “car.” As in the case of GM, no one brand can control the entire market. This is the genius of Albert Sloan. It was Albert Sloan who taught marketers the importance of targeting, segmenting, differentiating, and branding. This is in stark contrast to Mr. Ford’s assertion that he can have any color he wants, as long as it’s black.

Multi-brand PREVENTS BRAND SPREAD. In 1923 there were many car companies, most with a single brand. By having multiple brands, Mr. Sloan was able to consolidate the market and discourage smaller, struggling companies from not extending their brand and exiting the market, allowing General Motors to focus on Ford.

Multibrands PROTECTS THE BRAND IMAGE. Everyone knows that Chevy, Ponitac, Olds, Buick and Cadillac were General Motor brands. Each of the cars contributed to GM’s image. Ford’s singular branding on the Model T worked against Ford. Because he only had one brand, Mr. Sloan was able to portray the Model T as a “built by farmers for farmers” brand.

Dean Hambleton

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