Marketing on the Side? Why Mercedes’ Strategy Feels Misguided
Verena Gründel comments on the new developments at the German car manufacturer – and what they reveal about how much marketing expertise is valued at Mercedes.
Finance Trumps Marketing: New Executive at Mercedes
It is undisputed: the German automotive industry is struggling. Technological transformation, geopolitical uncertainties, and new competitors from China are hitting manufacturers hard.
But beyond these structural forces lies another, often underestimated lever: perception. The power of brand. And this is where many German carmakers fall short. To name Mercedes-Benz, as its latest marketing strategy shift makes clear.
The brand with the star stands for engineering excellence, quality, and reliability. But in 2025, is that still enough? At best, it appears solid. At worst, outdated. Today, winning over people requires emotional resonance, storytelling, empathy, and relevance.
And yet, just now, Mercedes has decided to replace its renowned marketing strategist Bettina Fetzer with a finance executive. The timing and direction seem misguided – and, in a way, typically German. Not because Christina Schenck lacks ability in her actual role. But for three reasons (and this is not personal criticism):
- No background in marketing.
- Financial expertise likely puts cost control ahead of creative excellence.
- Marketing will be handled alongside her current role leading Investor Relations & Treasury.
Note To Mercedes Benz: Marketing Is More Than A Side Function
Can marketing thrive as an extension of financial logic? I have my doubts. More likely, it will devolve into a cost center optimized for efficiency rather than impact. That would be a missed opportunity.
Especially in uncertain times, marketing can be a driver of growth. Research shows that companies investing countercyclically during a crisis – while others cut back – tend to increase market share in the long run.
The financial situation shows the urgency: since 2019, Mercedes-Benz revenue has been declining, with only minor fluctuations. In 2024, the company suffered a significant profit collapse: Operating income dropped by nearly one-third. The first quarter of 2025 was even worse, with profits falling by 43 percent.
Yes, some of this is due to external conditions: weakness in China, U.S. import tariffs, and currency fluctuations. But these figures reveal a fragile economic position. Which is why strategic, confident marketing leadership is more critical than ever.
Kim Notz summed it up in her Horizont commentary: “When a major automotive company reduces marketing to a side function, it sends a disastrous signal, not only internally, but to the entire industry.” A signal that suggests brand leadership can be handled on the side. That creativity is optional. That emotion is secondary.
And yet, studies consistently show the power of emotional marketing. Ads that evoke emotion generate
- 61 percent more future brand preference and
- 50 percent more engagement.
Nevertheless, German brands continue to rely on rational messaging, 20 percent more often than the European average.
What Mercedes needs now is courage. Courage to reconnect with the emotional power of its brand. Courage to invest in the future – not only in numbers, but in people, stories, and passion. The brand could only profit from bold marketing.
Mercedes has (almost) everything it needs to be a true love brand. It just needs to want it.
PS: How to ignite a true brand renaissance? Join us at the CMO Summit on September 18 at DMEXCO, where this will be one of our key focus topics.
