HAWKINS MOTHERSBAUGH

Instructors Newsletter
Dear Professor, We hope your Spring 2010 semester is off to a great start and that you will find the materials in this newsletter helpful. The Hawkins/Mothersbaugh newsletter is designed to help you create an exciting and informative classroom experience by putting cutting-edge examples at your fingertips. Each newsletter contains commercials and video clips as well as article summaries in the form of CB Press Highlights. CB Press Highlights summarize key points of recent popular press articles and provide guidance for class discussion. The index below shows the content of this newsletter by chapter. In each newsletter, we cover a range of different chapters. If you have comments or suggestions, please email us at dmothers@cba.ua.edu. Videos and Commercials
Chapter Title

Spring 2010

Videos and Commercials CB Press Highlights

4 6 & 20 10

20

Hot Markets: Aging Baby Boomers Mass Media Marketing Sex and Beauty to Little Girls New Findings: Teens and Digital Advertising Marketing Junk Food to Kids Henry Rifles Made in America Nick Saban Ford Commercial Jessica Simpson Proactiv Commercial YAZ Birth Control Corrective Advertisement Interactive TV Stokes Privacy Debate

CB Press Highlights
Chapter 3 6 10 13 16 19 Title

Green-Marketing Revolution Defies Economic Downturn There's Real Business In Funny Business as Nets Pile on Sitcoms How Personality Can Predict Media Usage Beer Sales Sputter during Key Fourth of July Holiday Give Consumers Something More by Offering Fewer Choices Amazon Says 'I Do' To Zappos. Now What?

If you are interested in the textbook please visit www.mhhe.com/hawkins11e.

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Chapter 4: The Changing American Society: Demographics and Social Stratification
Demographics: Hot Markets: Aging Baby Boomers http://www.youtube.com/watch?v=A75b4XkQFTU Overview: This video clip from FORA.tv features Mary Furlong discussing new market opportunities for targeting Baby Boomers. She shows charts of the proportions of older Americans in different decades and suggests that socially conscious companies will have an advantage. Time: 3:52 Mass Media Marketing Sex and Beauty to Little Girls http://www.youtube.com/watch?v=OtJMdXM5oIk Overview: This segment from the Today Show features Consumer Reporter, Janice Lieberman, discussing how Tweens and young girls have become the new target of many marketers, including beauty companies, as they spend over $200 billion a year. Overarching consequences are also discussed. Time: 4:38

Chapter 6: The American Society: Families and Households

Marketing to Children: New Findings: Teens and Digital Advertising http://www.youtube.com/watch?v=nfCnSfiuIw0 Overview: This video from Advertising Age features a part of the Children's Advertising Review Unit Conference that discusses the impact of digital marketing to adolescents. NOTE: Clearly this video has linkages to Chapter 20 as well. Time: 2:53 Marketing Junk Food to Kids http://www.youtube.com/watch?v=6qO39VEc0Ag Overview: In this clip from FORA.tv, Marion Nestle, NYU Professor of Nutrition and author of Food Politics, Safe Food, and What to Eat, discusses reasons and consequences of food marketing to children throughout the world. NOTE: Clearly this video has linkages to Chapter 20 as well. Time: 6:44

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Chapter 10: Motivation, Personality, and Emotion

Ethnocentrism: Henry Rifles Made in America http://www.youtube.com/watch?v=gTfWomXAN8o Overview: This advertisement for Henry Rifles illustrates ethnocentrism because the actor is throwing out all of his household items that are not made in America (except for his Henry Rifle). Time: 1:01 Celebrity Endorsers: Nick Saban Ford Commercial http://www.youtube.com/watch?v=7FVHyc7PZqk Overview: This advertisement is an example of a company using a celebrity endorser which is one way to develop and reinforce brand personality. Nick Saban, a champion football coach, endorses the Ford F-150. NOTE: Can be used in Chapter 11 where celebrity endorsers are also discussed. Time: 0:31 Jessica Simpson Proactiv Commerical http://www.youtube.com/watch?v=PH_3WHI29_s Overview: This advertisement is another example of a celebrity endorsement which can be used to develop and reinforce brand personality. In this ad, Jessica Simpson, a popular singer, endorses Proactiv skin products. NOTE: Can be used in Chapter 11 where celebrity endorsers are also discussed. Time: 1:54

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Chapter 20: Marketing Regulation and Consumer Behavior

Corrective Advertising: YAZ Birth Control Corrective Advertisement http://www.youtube.com/watch?v=EO-G8O0lHq0 Overview: This advertisement from YAZ birth control pills was required by the FDA to correct some claims made in their previous advertisements. Time: 1:00 Information Privacy: Interactive TV Stokes Privacy Debate http://www.youtube.com/watch?v=WTU7SMqkCaE Overview: This video from Advertising Age features the New York Advertising Clubs recent meeting where panelists discuss the ethics involving interactive TVs tracking of consumers and privacy issues. Time: 2:55

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CB Press Highlights
Chapter 3: The Changing American Society: Values
Article: J. Neff. Green-Marketing Revolution Defies Economic Downturn, Advertising Age, April 20, 2009, pp. 1-23. Highlights: In 2009, there has been a triple increase in product launches and percentages of sales of environmentally friendly products over 2008, despite the economic downturn. For example, Neilson Co. data shows that organic food has experienced 5.6% sales growth. Similarly, SPINS tacking service showed 10.9% increase in sales at natural food stores. According to Aric Melzel, senior brand manager at Kimberly Clarks Scott paper company, If you go back 10, 20, 30 years other green movements ultimately have had the air taken out of them by recessions. Tom Vierhile, general manager at Datamonitor Product Launch Analytics adds, It looks like this green trend is going to survive the recession. Green products are growing fastest in the Hispanic segment labeled respectful stewards, and white-male segment, labeled proud traditionalists. Market research has shown that value-minded customers still want to minimize the environmental impact of their products. Eighty-six percent of customers say they are interested and 41% say they are very interested in products with recycled content. Green household products are becoming increasingly popular, and several examples are given of companies recent success with green products, like Huggies Pure & Natural diapers, water filtration devices and filters, and Clorox Greenworks cleaning products line. Use in discussion: This article can be used in a discussion on green marketing and sustainability based on the section in the chapter on p. 94. This article provides several examples of companies and products that are successfully expanding their green marketing programs. Students could discuss why this green movement, unlike others, seems to be so resilient despite the economic recession. One possible answer found in the article is that companies are offering green products that are still competitive with nongreen products on price and quality.

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Chapter 6: The American Society: Families and Households

Article: B. Steinberg There's Real Business In Funny Business As Nets Pile On Sitcoms, Advertising Age, August 08, 2009, pp. 1-19. Highlights: Television programs, including sitcoms, are a reflection of society. The changing faces of American households are reflected in the popular television sitcoms aired on cable television networks. The networks are making light of alternative situations through the use of comedy in their programming. A primary example is Modern Family, a new ABC comedy sitcom, which is about three nontraditional and blended families. This sitcom is seen by ad buyers as one of the seasons few breakout hits. Other sitcoms that reflect different household lifecycles in the chapter include: ABCs Cougar Town, which is about an older woman looking for love, CBSs Accidentally on Purpose, which is about becoming unexpectedly pregnant after a one night stand, and Community, which is about falling off the career track. Use in Discussion: The chapter discusses many different types of households and household life cycles. The nontraditional contexts of the people and families featured in these sitcoms represent several of the types and stages. Students can identify which of the household types and household life cycle stages match with which sitcom. Further, they can draw on their own experience with other television programs and brainstorm examples for each type and stage in the household life cycle.

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Chapter 10: Motivation, Personality, and Emotion

Article: B.S. Bulik, How Personality Can Predict Media Usage, Advertising Age, May 4, 2009, pp. 12. Highlights: Mindset Media, a psychographic research company, has shown that personality is often a more effective prediction tool for media usage than demographic data, like age, gender, and income. Mindset Media uses 21 standard elements of personality, such as leadership, openness, perfectionism, and dynamism. The added value for marketers comes from combining the personality findings with traditional demographic data and other habits and preferences. The 5,000 respondents that were involved in this study were part of Nielsens Online Panel. The article provides details on Mindset Medias findings for several media types, including: TV, newspapers, internet, magazines, and radio. For example, people low in dynamism are 53% more likely to watch more TV, than are those low in openness and leadership, and those high in bravado. Optimists are more likely to read newspapers, as well as 51% more likely to go out of their way to purchase recycled goods and 34% more likely to drive a luxury car. Similarly, the strong leadership group reads newspapers and is 68% more likely to always purchase organic breakfast cereals and 61% more likely to buy three or more pairs of sneakers each year. The internet is popular among all of the groups, but the highest users rank highly in openness, are 153% more likely to always buy organic products, and 104% more likely to drive a hybrid car. Magazines are most often read by people who are high in dynamism and openness. Finally, radio is consumed most by those high in dynamism, and least by introverts and those low in diligence. Use in Discussion: This article can be tied to the section of the chapter on how personality plays a role in consumer behavior, in this case the behavior is media consumption. Students can be encouraged to brainstorm other personality traits that they feel would be correlated with different types of media use. Further, they might discuss how different personality traits might play a role in the consumption of different specific vehicles. For example, what types of personality traits would watch different types of television channels, read different sections of newspapers, order different types of magazines, or visit different types of websites.

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Chapter 13: Situational Influences

Article: J. Mullman, Beer Sales Sputter During Key Fourth of July Holiday, Advertising Age, July 27, 2009, pp. 1-17. Highlights: Independence Day is usually the biggest-selling period of the year for beer. However, during the current economic crisis, sales have been declining versus the same period last year. Anheuser-Buschs Bud Light and Budweiser sales dropped 7% and 14%, Miller Lite sales dropped 9%, Coronas sales dropped 6-8%. Diageo and Heineken both had double digit drops in sales. The subpremium beers, like Busch and Natural Light gained in sales, but not enough to offset the declines in the larger brands. Marketers are pointing to the economic downturn as the primary culprit, although some of the sales may have been cannibalized by new product introductions, like Bud Light Lime. These severe declines in sales are beginning to bring the effectiveness of some of the large beer advertising campaigns into question. Use in Discussion: This article relates to the part of the chapter on ritual situations. The chapter mentions several major American holidays as ritual situations associated with prescribed consumer behavior. Students could be encouraged to think what role different holidays play in determining the ways that consumers behave and the associated products and services that they consume. This activity could work well in small groups with informal presentations. Further, students could be asked to think of other ritual situations that are not holidays and how they influence consumer behavior. Some examples might be weddings, elections, Black Friday, Cyber Monday, and back-to-school time. Finally, students could be asked to describe how they think the economic downturn impacts consumer behavior in various ritual situations.

Chapter 16: Alternative Evaluation and Selection

Article: J.S. Baskin, Give Consumers Something More by Offering Fewer Choices, Advertising Age, July, 27, 2009, pp. 12. Highlights: This article discusses a trend among retailers of reducing the variety that they offer in various categories. For example, there are 14% fewer pain-reliever choices at Rite Aid, and less than half the super-glue options at Walgreens. Meanwhile, Kroger is considering cutting almost a third of its cereals. The main idea is that offering too many choices within a product category makes consumers confused, rather than happy. The author argues that the thousands of extensions and adaptations of brands that target finely sliced consumer segments are focused on consumer wants, not needs. Fewer choices could lead to faster and more frequent purchase decisions. This also means that marketer will have to change the way they develop and market products and services. Use in Discussion: This article ties in with the concept of bounded rationality, which is the limited capacity for processing information. Students could discuss the benefits and drawbacks for consumers of having fewer product choices. They may feel that it is appropriate given the limits of bounded rationality or they may dislike having fewer alternatives to evaluate. They could also discuss the implications for retailers of carrying fewer products, like reduced costs, shelving design, and consumer reactions. Back to Main Page

Chapter 19: Organizational Buyer Behavior

Article: N. Zmuda, Amazon Says 'I Do' To Zappos. Now What?, Advertising Age, July, 27, 2009, pp. 4. Highlights: This article discusses the merger of Zappos and Amazon.com. In terms of firmographics and corporate culture, there are a lot of similarities and differences. It will be interesting to find out how well these two companies mesh together as one. For example, they are both online retail companies founded in the 1990s, both have exuberant and respected CEOs, they both built a name in a single market, and they both are customer-focused. However, there are big differences in their approach to customer relationships and their corporate cultures. For example, at Zappos hundreds of call-center reps handle thousands of customer calls a day with no scripts or time limits. They have even been known to send flowers and pizzas to customers. Conversely, Amazon defines customer experience as being reliable, providing the lowest price, and having fast delivery. It is a rare and unusual situation when an Amazon employee directly interacts with a customer. Another difference is evident in the way that the CEOs communicate with their employees. Zappos sent five pages to their employees, allaying employee fears, racking jokes, and poking fun fancy-sounding legalese, while Amazon sent five paragraphs stating the obvious facts to their employees.

Use in Discussion: This article relates to how organizations can differ across various dimensions. Drawing from further information in the article or other secondary sources, student could discuss the similarities and differences between Amazon and Zappos firmographics. Similarly, they could discuss differences in corporate cultures and how well they think the transition into one company will progress. They could also be encouraged to discuss the corporate culture and firmographics of other companies where they may have shopped or been employed.

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