Of Corporations Behaving Badly
As we discuss ethical and public policy issues related to promotions, a spate of stories concerning corporate and political behavior arrived. Anheuser-Busch, which makes Budweiser among other beers, has a promotion campaign that is truly bizarre. In the story
linked here, St. Louis-based A-B erroneously criticizes Molson Coors and SAB Miller for being based outside the U.S. At the same time, A-B champions its ability to take profits out of the Chinese market and return them to the U.S. Cake meet ice cream. What’s more bizarre? Budweiser has long running sponsorships with the largest international event, the Olympics, and the second largest international event, the World Cup.
Meanwhile, Sun sees competitors where others would see opportunity. In the story
linked here, the petroleum giant decided to spend its ever-increasing revenues not on developing new energy sources such as biodiesel and ethanol, but to ensure such information is kept away from customers. How is Sun using its superior financial returns? To ensure that its resources lead to future superior financial returns? Or to badger a non-profit?
Wal-Mart claims it respects community wishes and standards. In this story
linked here, what standards are being upheld? The world’s largest retailer should find a balance between looking for opportunities and ignoring community opposition. Obviously, this issue should show how society impacts a firm’s strategy.
Finally, the 2008 presidential campaign is underway as Senator Hilary Clinton (D-N.Y.) wants hearings into alleged sex scenes in the current Grand Theft Auto game. According to the NBC news story, (click
link here and look for title “Sen. Clinton seeks video game probe”) 50% of software titles rated M are sold to male teens under the age of 14. Not mentioned in the story but more a valid point, 74.5% of all statistics are made up. Clinton’s press conference is reminiscent of her husband’s attack on rapper Sister Soulja. Senator Clinton gives a sop to socially conservative Democrats and Grand Theft Auto sells a few more video games. Truly a win-win situation for all concerned. In this instance, though, should there be government intervention?
The unifying themes to these stories lies in firm ethics in promotion activities (Wal-Mart, and A-B), and how public policy influences promotion activities (Sun, Wal-Mart, and Clinton). What are your thoughts on these themes?
There is so much going on in this article about video games that we have discussed in class. Relationship Marketing. Co-production. Combing of resources to create a new product. Promotion.
How do Take Two and EA get their respective target markets excited about new markets? Are they both chasing the same target market? Are the consumers of video games homogenous? If no, how should different companies beyond Take Two and EA use STP to talk with those consumers? If yes, how should Take Two and EA and Midway use to STP to increase sales, change attitude, and/or increase awareness?
In the article, EA established a relationship with the NFL. What were the pros and cons of this strategy? Could a video game maker promote a football game that is not co-branded with the NFL? What are the relational advantages and disadvantages for EA and Take Two within the context of EA’s long term relationship with the NFL?
In markets outside of sports software titles, what are the marketing implications and lessons?
Click here for story.
If every profession has a trade group, then, correspondingly, every group has a trade show.
Although there is a huge up front cost associated with a trade show as we discussed on Tuesday, it can be highly effective for companies that have displays for at least four reasons. First, the account representative has longer face-to-face time to discuss their products. Second, the account representative discusses the product with the person who either makes the decision or influences the decision maker. Third, the organizational representative can collect information about a lot of competing products in a short time span. Fourth, complex products can be explained and experienced.
Trade shows are more than about selling. Exhibiting firms want to share information through promotional efforts, and can explain or demonstrate the product and how the use of the product could lead to a competitive advantage for the attendee’s firm.
In order to prospect for clients, firms must give away shirts or a ball or a coffee mug (yes, more promotional activity). Beyond the goal of collecting as many names as possible, exhibitors want to get current and future customers
excited about their product. And that should be the goal of almost every exhibitor: get people panting for my product.
What are the advantages and disadvantages of these trade shows? Is this a good promotional activity for all firms? If yes, what type of firm should have a booth at a trade show? Besides sharing information, what else could an exhibitor use a trade show for? Do trade shows offer an opportunity for the exhibitor than has been discussed in this post? If so, what is that opportunity or opportunities?
Click here for story.
