The Marketing mix of General Electric analyses the 4Ps of General Electric, which includes the Product, Price, Place, and Promotion of General Electric. General Electric is popularly called GE and is a public limited company. This American company is a multinational conglomerate headquartered in Fairfield, Connecticut. In January 2016, it was decided to shift its corporate headquarters to Boston, but it will still take some time to complete this move.
The company was founded in 1892 by four founders: Edwin Houston, Elihu Thomson, Charles Coffin, and Thomas Edison. It deals in various sectors like health, finance, pharmaceuticals, softwaSoftwaremotive, etc. In 2012, GE was the fourth-largest company in the global market, and it received the honor of receiving the Nobel Prize twice for its employees Irving Langmuir and Ivar Giaever in 1932 and 1973, respectively. Some of its competitors in the world are as follows-
- CITIGROUP INC
- ALSTOM
- Siemens AG
About General Electric
- Type: Multinational conglomerate
- Industry: Aerospace, energy, healthcare, transportation, and lighting
- Founded: April 15, 1892, in Schenectady, New York
- Founders: Thomas Edison, J.P. Morgan, Charles A. Coffin, Elihu Thomson, and Edwin J. Houston
- Headquarters: Boston, Massachusetts, United States
- Area served: Worldwide
- Key people: H. Lawrence Culp Jr. (Chairman) and H. Lawrence Culp Jr. (CEO)
- Number of employees: 174,000+
Table of Contents
General Electric Product Strategy
General Electric prides itself on operational excellence and driving rigor. Hence, its products testify to this fact. They produce qualitative products and enhanced services to provide the best customer value. The company also supports various vital industries in the global market, and its operations are diversified and can be divided into business segments that include the following.
- Capital finance includes personal loans, credit cards, home loans, operating leases, and commercial loans.
- The technology division of GE includes patient monitoring equipment, medical imaging, medical diagnostics, jet engines, aircraft replacement parts, card-accessing systems, fire detection, and intrusion products.
- Products about energy infrastructure include engine derivates of aircraft, systems related to water purification, gas turbines, and wind turbines.
- The company’s Universal Division enables cable network operations and also has a hand in producing motion pictures.
- The industrial and consumer division of General Electric includes gas and electric ranges, air conditioners for residences, microwave ovens, washers and refrigerators, dryers, small appliances, water heaters, cooktops, and numerous accessories.
- The oil and gas division of the company includes its processing, distribution drilling, logging, gas liquefaction of LNG, surface well and flow control, and sub-sea services.
- GE’s mining division includes mining water treatment, productivity solutions, power distribution, power conversion, infrastructure, equipment, and analytic software. General Electric is everywhere. Reliance is in India and has a presence in a lot of sectors. Similarly, General Electric also has a massive presence in numerous sectors. And it is performing well in all those sectors.
The product mix of General Electric in 2023 is as follows(Source)
- Aviation: Aircraft engines, Avionics systems, Aircraft leasing and financing services
- Power: Gas turbines for power generation, Steam turbines, Wind turbines, Nuclear power equipment and services, Grid solutions for electrical distribution
- Renewable Energy: Wind turbines and components, Solar inverters and components, Energy storage solutions
- Healthcare: Medical imaging equipment (MRI, CT, X-ray), Healthcare IT solutions, Life sciences and biopharmaceuticals
- Capital: Financial services, including equipment leasing and financing
- Digital: Industrial Internet of Things (IIoT) solutions, SoftwaSoftwarenalytics for various industries
General Electric Place Strategy
General Electric has a successful marketing strategy and adopted a lateral strategy for some of its products, like energy and health care. It has manufacturing plants, business offices, and distributors in nearly every part of the world for successful operations. It has a network in almost one hundred and sixty countries and subsidiaries in Ontario, China, Mexico, and Singapore. Its business projects are distributed in numerous places like Africa, North Asia, Australia, and Europe.
General Electric has made significant investments in Russia, including an equipment fleet of 1,500 units. In Middle-east it has enabled the growth of infrastructure resources like aviation, gas, and oil. It also has played an essential part in building Indonesia’s infrastructure. Its operations follow a systematic distribution policy with efficient channelization that effortlessly defines marketing strategy and how a global organization should work with the best results.
- Global Presence: GE has a strong global presence with operations and distribution networks in numerous countries. This allows the company to reach a broad customer base and access worldwide markets.
- Strategic Partnerships: GE often partners with local businesses and governments in various regions. These partnerships help GE navigate local regulations, enhance distribution channels, and adapt its products and services to meet regional needs effectively.
- Industry-Specific Focus: GE tailors its distribution approach to specific industries, such as aviation, healthcare, and energy. This industry-specific focus ensures that the company can provide specialized solutions and support to its customers in each sector.
- Digital Transformation: In recent years, GE has increasingly leveraged digital technologies and the Industrial Internet of Things (IIoT) to optimize its place strategy. This includes using data analytics and remote monitoring to improve the efficiency and reliability of its products and services.
- Direct Sales and Online Presence: GE utilizes a combination of direct sales teams and an online presence to reach customers. Direct sales teams work closely with businesses to understand their needs, while GE’s online platforms provide information, support, and even direct purchasing options for certain products and services.
General Electric Pricing Strategy
General Electric has always believed in quality products, and their prices are significantly reduced because they aim to reach as many consumers as possible. They have decided to pursue different pricing policies for different products as they have a portfolio of diversified services and products. The company introduced the Power by the Hour program for its aircraft engines to recognize its customers’ endeavors.
It acknowledges that with purchase, the ability to lessen downtime through service initiatives and maintenance was also a priority for a customer. In 2004, General Electric had to raise its pricing policy for infrastructure technology related to water and processing because of the global economy.
It has undoubtedly adopted a premium policy for market research for emerging technologies as it is a leader in various research and development projects. Health imagination initiatives conducted by General Electric include reducing prices at a considerable rate because of its product-line pricing policy in the medical diagnostics and imaging department to benefit consumers all the time.
GE has tried to follow a competitive pricing policy for consumer and household products that will yield revenues and attract its customers with reasonable prices. The company has tried its best with its numerous pricing policies based on various sub-divisions so that it does not lose the loyalty of existing customers and can adapt to each sub-divisions market trends and environment. Hence, it has a premium price in some cases and penetrative or competitive pricing in others.
- Value-Based Pricing: GE strongly emphasizes delivering value to its customers. Its pricing strategy aligns with the perceived value of its products and services, which often entail complex industrial solutions. Pricing is structured to demonstrate the benefits and long-term cost savings customers can expect from using GE’s offerings.
- Segmentation: GE segments its customer base based on various factors, including industry, size, and geographic location. This segmentation allows the company to tailor pricing strategies to meet different customer groups’ specific needs and price sensitivities.
- Customization: Given its diverse portfolio, GE often customizes its solutions to meet each customer’s unique requirements. This customization extends to pricing as well. GE may offer flexible pricing structures, leasing options, or bundled service packages that cater to individual customer demands, fostering strong customer relationships.
- Long-Term Contracts: In industries such as aviation, energy, and healthcare, where GE plays a significant role, long-term contracts and service agreements are standard.
- Competitive Pricing: While GE is known for its innovation and quality, it operates in highly competitive markets. To maintain its competitive edge, GE closely monitors competitors’ pricing and adjusts its pricing strategies accordingly.
General Electric Promotion Strategy
General Electric is a gigantic corporation with its fingers in several industries. It is a global brand and has reached very high standards in terms of services, products, profits, and especially brand recognition. Its marketing division has made special efforts with its promotional policies as it has diversified interests, and one has to take care of every segment so that the company can evolve and grow as a whole. Innovative ideas and beautiful and timely promotion strategies and presentations have established the company’s top position.
General Electric has a training package that includes various business-specific contents like education, leadership, and experience about the latest technologies available in the market. In 2001, it appointed Responsys Inc. to implement its email marketing channels and re-marketing programs.
It also has a catchy slogan that is easily recognized: We bring good things to life and define them at their best. GE has undertaken a co-branding marketing policy for some products and a Lateral-diversification marketing strategies policy for products that do not have commercial synergies with present products but may find a base with new consumers. Various commercials are broadcast on television and online, highlighting its products and providing relevant information to interested parties.
General Electric (GE) employs a comprehensive promotion and marketing strategy characterized by the following:
- Integrated Marketing Communications: GE utilizes a mix of advertising, digital marketing, public relations, and content marketing to create a cohesive and consistent brand image across its diverse business segments.
- Industry Thought Leadership: GE positions itself as an industry leader by sharing expertise through thought leadership content, whitepapers, and participation in industry events, reinforcing its reputation for innovation and knowledge.
- Targeted B2B Marketing: GE primarily focuses its promotional efforts on B2B marketing to engage key decision-makers and influencers in industries such as aviation, healthcare, and energy, showcasing the value and solutions it offers to businesses worldwide.
Some Recent Video ads and Print ads of General Electric are:
https://www.youtube.com/watch?v=KLf9BlMeKRQ
Liked this post? Check out the complete series on Marketing Mix
