James Shaw's Blog

So we know from Ryan Abushinov’s blog post (https://blogs.ubc.ca/ryanabushinov/2012/02/04/do-celebrity-endorsements-really-work/) that celebrity endorsements work; but what about the ethical questions they raise? Should a celebrity really be allowed to endorse something just because they’re getting paid big bucks, regardless of whether or not they approve of the product or service? Take the example of Paris Hilton being a promoter of chihuahuas. When she first debuted her adorable teacup puppy in her hit show “The Simple Life”, chihuahua sales in California skyrocketed. Now, a few years down the road, as the fad is starting going out of style, animal shelters are becoming overrun with this exact breed of dog (http://www.huffingtonpost.com/2011/09/28/animal-shelters-overrun-w_n_985202.html).

I am merely trying to raise the issue of whether or not it is appropriate for celebrities to endorse or promote things that others may not necessarily need. They act as reference groups to consumers, and as such, they must do their utmost to make ethical decisions. If only a celebrity would endorse environmentalism, there may still be hope for our planet!

We constantly hear about how frugal today’s consumers are becoming, whether in class or on the news, but just how will this shape the future of marketing? According to trendwatching.com, bargain-hunting will be one of the top 12 trends of 2012. In fact, the website claims that “securing the best deals is fast becoming a way of life, if not a source of pride and status.” This statement is particularly interesting, because it shows just how important frugality is to consumers. We are seeing a huge shift from the ‘buy-now-pay-later’ mentality that lasted up until the 2008 financial crisis, to much more reserved spending habits. And as the article suggests, it’s about more than just getting a good deal; it’s about getting a better deal than your friends. It used to be that wealth represented status – those who had more were thought to be higher on the social ladder  – now, however, the most thrifty consumer takes top rung. Saving money has become sexy, in place of spending to excess. As a result, marketers must put a greater emphasis on ‘value marketing’, maintaining product quality while keeping prices low. Consumers want to get bang for their buck, and companies like Groupon are already on board with this trend. The group coupon-buying website offers amazing deals on commonplace products and services, and is growing rapidly as a result. While this is an extreme example, it proves how crucial it is for companies to address the trend of frugality. In fact, we may even see a return to the principles of the Production Concept, the original orientation that companies practiced starting in the 1920s, which states that products should be available and affordable.

After taking Strengthsquest, I truly got a new perspective on my personality. Most notably, I realized my key strength: ideation. This suits me well, as I always come up with zany new ideas all the time. This is a good trait for a marketer to have (it’s my intended major), so I am very happy to have such a strength. The only problem with such a trait is that with it comes another element, which is the actual implementation of ideas; something I am lacking in. So, in sum, I learned that I must synthesize my ideas into realizable actions, so that I’m not just thinking about things, but actually getting things done, too.

I learned from my TA, Pia, that business is more than just making money. She always stressed the importance of actually making a valuable contribution to society, as well. This changed my perspective of the business world entirely, as I formerly saw it as only being concerned with profit-making. Prior to Pia’s lesson, I thought CSR was just a buzzword of the times, and nothing more. Now I see that it is actually going to prove extremely important in this next century, and businesses will have to adapt. This means that in Sauder, as the next generation of businesspeople, it is crucial that we learn how to conduct ethical business.

VANOC sure cares a lot about their brand image, but do they care about any of their sponsors?

It’s interesting that when I searched “Olympia Restaurant Controversy 2010,” nothing came up. That’s strange… a major conflict between VANOC and a local restaurant should be highly publicized; and at the time, it was. But now, it almost seems as if some powerful body has tried to cover it up. Could this body be VANOC? Well, that’s a whole different story altogether. The important thing to look at is what we know is concrete. VANOC got angry because Olympia used the olympic rings as their logo. The restaurant had been using these rings for 15 years, so they were not about to throw that part of their history away. The small business stood up to the giant organizing committee, and they won. The effort VANOC put into trying to get them to cover it up is astounding, however. They were devastated that a symbol of the olympics was being used for something unaffiliated with VANOC, which according to their infringement policy, is highly illegal. This is funny, because they didn’t seem to care too much about TELUS’s ambush marketing against Bell. It seems all they really care about is themselves.

With companies running out of new ideas, innovation is a top priority in the 21st Century. No longer can a team of marketers sit around at a board room meeting and come up with brilliant ways to sell products nobody really needs. Rather, firms are increasingly choosing to look directly to consumers to formulate how a market will respond to the release of a new product. One of these methods is the use of focus groups.

A focus group is typically comprised of a moderator and however many participants are needed. Prior research is necessary for the clarification of whatever the task may be. For example, if a company wished to release a new lawnmower, but wanted to see how people react to it first, they would use a focus group. The moderator would need to have extensive knowledge on all the parts of the lawnmower, and the features it has. He or she then explains these points to the group, who offers feedback and opinion on whether or not they would buy it, and why. Important factors to consider when forming a focus group include language barriers, control of the group, and confidentiality. See this article for more information.

The future is not friendly. With technology on the rise, and the world wide web becoming ever larger in scope, no company (and no entity, for that matter) can ignore Information Technology (IT). IT is described formally as “the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications.” So, what does that mean?

Essentially, IT refers to anything performed on a computer. Whether that be simple word processing, or complex coding, it is all IT. An important question to ask is if everyone needs IT. To get more specific, the usefulness of having Management Information Systems (MIS). First, it is necessary to examine how these are implemented.

Simply having a computer is not MIS. Every company must have an individual, or in some cases, a whole team of specialists, managing their IT. As this article explains, the concern is growing over online safety. And not just for children targeted by predators – rather, for anyone and anything on the net. IT must be managed carefully, built with integrity, and protected at all costs.

We’ve all seen the commercials. The beautiful woman stands in front of a shelf of children’s cough syrup or other household product, telling us how much we need whatever it is she’s holding. She highlights all of the excellent qualities this product has, and all the benefits it will bring to every viewer watching. And let’s not forget the message she leaves us with: “Brand Power, helping you buy better.” Almost seems too good to be true, doesn’t it? Well, just like most things in life that seem that way, it is.

These Brand Power commercials give the impression of an unaffiliated third party giving practical, honest advice on a product. But we have to ask ourselves – what on earth would be the point of that? No corporation would ever freely promote a product, because it would raise the product’s brand power at no cost. A look at Brand Power’s website reveals that the advertisements are “paid for by leading manufacturers.” Putting two and two together, one can conclude that these commercials are not so helpful, after all. It is merely a strategic advertising attempt, that when looked at more closely, turns out to be no different than a common promotion.

Most CEOs tend to wear suits to work, and have neatly organized offices with neutral coloured walls. Dov Charney, owner of retail clothing giant American Apparel, does not fit this stereotype. Rather, he can be found parading around in bright pink underwear, and likes to post pornography in his office. How did someone with such a contrarian personality become so successful? It’s because Dov Charney is an entrepreneur.

Charney’s unique attitude spearheaded the development of the company. When he looked in store windows, he noticed that clothing was getting more and more sophisticated. He also realized that most of the tags on clothes read “made in China.” With this vision for a new venture, he founded American Apparel in 1991. His first retail store opened in 2003, and within two years, American Apparel was ranked the 308th fastest growing U.S. company by Inc, with revenues of over US$200 million. Charney stayed true to his values, and continues to put an emphasis on simple style. He also places a huge importance on sexuality; perhaps too much, as he has been accused of sexual harassment several times. Regardless, Charney exhibits all of Schumpeter’s entrepreneur traits, and American Apparel is clearly not a small business.

Does being charged for paying by credit card, having to pay to use the washroom, and not being able to recline your seat sound good to you? Then Ryanair is your airline!

The company has a specific market, and as a result, caters to them in any way possible. Teenagers and young adults are their target consumers, as they often travel around Europe on a budget. However, anyone looking for a cheap flight with no extra perks will find Ryanair to be perfect. Why charge for any extra, you may ask? Well, people travelling for cheap are willing to forgo these “luxuries,” even if that means having an uncomfortable flight.

The Office of Fair Trading (OFT), however, argues that Ryanair uses false advertising and legal loopholes to make their prices seem even cheaper than they really are. They make their argument here.