Two lessons on the importance of tuning-in to consumer trends

Two or three years ago, you might have called these two companies, "Underdogs."

But by the end of 2009, Forbes magazine called Joel Ewanick of Hyundai the Chief Marketing Officer of the year (click here to see the story). That was icing on the cake; the company had already been named “Marketer of the Year” by the readers of Advertising Age, attributed largely to their “Assurance” and “Assurance Plus” campaigns. Earlier this month, CNN/Fortune ran a story suggesting Hyundai doesn’t just “want” to win in the world market… it “expects to win.” And this week, the company announced that it would double the co-op advertising funds available to dealerships, according to a story in Automotive News… so it looks like they’ll be doing everything they can to maintain their North American momentum.

Ford has things to celebrate, too. According to MarketWatch, it closed 2009 with nice numbers on the most important scorecard: Sales. And the company is doing well with awards, too: CEO Alan Mulally was named “Leader of the Year” at the Detroit Auto show (according to the Detroit Free Press). The company also took top honors in categories like “Car of the Year” and “Truck of the Year,” according to this story from CNN/Money. (It’s the first time in 17 years that one company took top honors in both categories in the same year.)

Implications: Think about this. If I’d have asked you back in say, early 2007—"Which car companies would enjoy the greatest momentum as we moved into 2010"… what might your list have looked like? Would Hyundai be at the top of the list for imports? Ford for domestics? Where would Toyota have been on your list? General Motors?

Ironically, neither of these companies seems to be winning the car wars exclusively because of their cars. Ford has taken a leading-edge approach to incorporating technology into the dashboard, and Hyundai has wooed buyers back into the showroom with a demonstration of empathy. To paraphrase their main campaign, “We know the economy is tough, and we’re going to help; go ahead and buy, and if you lose your income, you can bring back the car without harm to your credit.”

Here’s the best part of the Forbes story on Ewanick: He was surprised how few people actually took advantage of the “Assurance” program; far more people responded to the campaign than actually took Hyundai up on the offer. But the offer was made—and people appreciated it—which gives rise to the term, “gesture marketing.” That’s when a company extends an offer that demonstrates, “We know what you’re going through, and we’re doing what we can to help.” Or, “We know technology is central to your life now, so we’ve loaded the dash board with it.”

Are consumers are responding to Ford and Hyundai… or have these two car makers simply done a good job of responding to consumers?

Mike Anderson