In an effort to promote the importance of keeping our nation’s beaches clean and trash-free, Barefoot wine decided to do something a little unexpected when it comes to advertising.

They have long been a part of promoting beaches that are “barefoot” friendly and free of litter, and along with sponsoring the “One Beach” video about keeping our beaches trash-free, as well as their 2011 Beach Rescue Project, they have opted for a nontraditional ad: a 14×10 foot outdoor poster created entirely of 18,000 pieces of beach trash and mounted in the busy, touristy city of Venice Beach, California.

From their many beach rescue events, to their extensive promotion of doing your part, and their partnerships with Surfrider Foundation, they have found their niche in the world of social responsibility and are definitely trying to get people thinking about the effects of their actions.

As you can see, the outdoor advertisement stands out from any other ordinary poster or billboard and truly sets the agenda that littering, especially along our coastline, is not okay. Barefoot Wine realizes something needs to be done about this issue in order to turn the problem around and promote cleaner beach environments that are safer for wildlife and tourists alike.

The outdoor advertisement, which promotes their movie while also promoting their brand, influences individuals in a creative way by showing them just how dirty some of our nation’s beaches are. Barefoot Wine’s ad was created to draw people to the ad and capture attention, creating buzz about the topic along the way.

Although the advertisement definitely looks cool, most people who stumble upon this ad while at the beach will have a relatively low level of motivation to process its message. However, the fact that the ad stands apart from other traditional outdoor billboards and posters, takes the peripheral route when it comes to processing information. Consumers form positive attitudes about the advertisement’s message once they realize what the ad is made out of and true intent of the ad’s meaning. Those who are motivated enough by the ad’s message will actually take it a step further and watch the complete 30 minute “One Beach” video on YouTube, which details the extent of the issue.

It is pretty rare to see shock advertising done in a way that actually gets people thinking about a socially responsible topic, such as recycling and reducing waste, but the local California company definitely created an ad that is getting people talking. After commenting on Barefoot Wine’s facebook page, they even sent me a message with more information on the stories behind their One Beach film and campaign, which feature even more amazing details about the people in the video and the steps they are taking towards helping our environment and beaches than I had originally thought.

All in all, the interesting and socially responsible ad by Barefoot Wine really does a great job at persuading consumers of the need for a solution to this problem. Although they are indirectly promoting their wine brand, they are creating buzz about a topic that many people do care about, leading to positive emotions and feelings about the brand in the end. The fact that they truly do care about this initiative is very evident when looking not only at their advertisements, but also at their website and social media pages. The hope is that people passing this particular ad, while walking down the boardwalk, will form a positive attitude towards the brand’s message and advertisement, eventually increasing their liking towards the company as a whole.

Barefoot Wine: Beach Rescue Project

AdWeek Barefoot Wine Ad

Barefoot Wine Dive Deeper: Stories Behind One Beach

Walk into any major department store or any retailer for that matter, a consumer will know that the holiday season is approaching, specifically Christmas.  There might be a small section dedicated to those who are still intending on celebrating Thanksgiving, but all in all, Christmas music, trees, lights, ribbons, garlands, and snowmen abound in many stores.

Macy’s is one such retailer that has been specifically tied to the holiday season through its long-standing name in the retail business, movies (namely Miracle on 34^th Street), and the classic Macy’s Thanksgiving Parade.  To reflect their years of bringing the holiday spirit, two years ago, Macy’s Department store advertised their brand through nostalgic marketing.  Footage in the commercial showed clips from the late 1800s, the parade, movies that have used their name, and reality TV shows.   The end of the commercial states, “Only one store has been part of your life for 150 years.  That’s the Magic of Macy’s.  This commercial works so well, because Macy’s has successfully branded their name by allowing people to remember a particular association with the store.  It even allows for consumers to reinterpret their own memories of when they first saw or heard  the original referenced clips. Even if a consumer was not there to walk into Macy’s in the late 1800s, they may remember a memory of watching the parade or watching a holiday classic such as Miracle on 34^th street.  This ad does appeal to consumers who have high MAO, because it allows the consumer to create a persona and image of what this brand represents and has done over the past 150 years.  It allows the viewer to be part of the experience and to create a prototype of the Macy’s brand.

In terms of social responsibility, especially around the holiday seasons, in the past few years, Macy’s created a campaign called “Believe” and paired their name with Make-A-Wish.   In every Macy’s department store, there was a mail box for Santa, and for each letter that was mailed, one dollar was given to the Make-A-Wish foundation.  Essentially, the company would give up to $,1,000,000 to the foundation.  There were a couple of commercials that were produced borrowing from the story, Yes, Virginia There is a Santa Claus. 

2009

2010

The campaign was effective, because it  reached the $1 million goal of giving to Make-A-Wish.  This campaign not only captures a positive aspect of the season through giving, especially if child knows that by mailing their letter to Santa through Macy’s mailbox, they are helping other children, but it also gives a positive message to believing.  The store is also promoting the idea that it is okay to believe and to be a kid.

Macy’s department store is placed in a positive light because it looks like a store that believes in the spirit of the season, even if they (the department store) are in the business of making money.  The “Believe” campaign is currently underway and can be followed through the Macy’s Believe website.

It will be interesting to see how other companies will compete and roll out good tidings to all in this holiday season.

We’ve all heard of cause advertising, right? You know, like when you see a big name brand that has partnered with a non-profit organization. Well, this trend is nothing new, we’ve all seen it, believed it, been skeptical about it, or probably had every other thought possible about it.

Over the course of the cause advertising trend, consumers have begun to become cautious of these programs. For example, AdAge writer Scott Pansky discusses how KFC raised over four million dollars last year through its “Buckets for the Cure” campaign. However, both KFC and the nonprofit organization suffered from a lowered brand image, simply due to the fact that many consumers questioned the partnership. On one hand you’ve got greasy, fried, unhealthy chicken and when consumers purchase that KFC will donate to support breast cancer research, a fabulous cause that is finding a cure to support a healthy lifestyle… That seems a bit odd if you ask me. In this specific case, it led many consumers to question why KFC was doing this. Was it simply to use breast cancer research as a way to generate sales?

Since there have many questionable partnerships ultimately resulting in skepticism, it has caused many to say that cause-related marketing (cause advertising) is dead. But, is it really?

In a Cone Inc. study (2010), cited by the Nonprofit Brand Institute, it was found that 59% of Americans are more likely to buy a brand that is affiliated with a nonprofit organization. 50% are more willing to donate, 49% are more likely to participate in an event for that nonprofit and 41% are more likely to volunteer for that nonprofit. So, this obviously proves that cause-related marketing is not dead. In fact, it greatly benefits the brand as well as the nonprofit. So, what needs to be done to reach the consumers in an effective way so that they don’t question the partnership or become skeptical of it?

The big question is ‘”Can we build deeper relationships with our customers (retailers and end users) through a cause relationship and still increase sales?”’ The answer, yes—this trend can be extremely beneficial for advertisers, but only if the campaign is done correctly.

There are two things that advertisers need to focus on. First, the cause must be a good match for the company, brand, and target audience. It needs to be relevant. Second, there must be an alignment within the business. Leadership roles and other employees must all be on the same page and understand that the goal is not only to drive up sales numbers, but also to make a lasting impact with a meaningful organization.

Pansky sums it up pretty well, “The bottom-line message to the C suite is that creating effective, meaningful cause relationships is a long-term process that will help them create a brand legacy, not merely a quick sale. It’s about employee recruiting and retention, and creating the next generation of leadership that not only embraces the corporate culture but also helps to create a better tomorrow for consumers. Marketers need to embrace the idea that this is not a quick-fix marketing solution but a long-term commitment to a cause that is relevant to a long-term relationship with your customers. It’s not a date, it’s a marriage.”

Cause advertising campaigns are a great way to be socially responsible. It is wonderful that companies and brands want to help nonprofit organizations that benefit great causes. I think it is pretty obvious that if a company is partnering with a cause, they are on the right track towards being socially responsible. Companies aren’t just in it for themselves anymore—they are trying to make a difference in things that really matter.

So, we know that cause-related marketing is good, but why does it actually make an impact with consumers? What makes these campaigns so different from standard run-of-the-mill advertising campaigns?

Well, to start with, consumer’s values play a huge role. For example, let’s say that a consumer values the environment and wants to help preserve it; in this case, a cause advertising campaign for a certain brand of paper products benefiting The Nature Conservancy may hit home with this consumer and make them feel very strongly about that brand. This also ties into personal relevance. Going back to the KFC example, maybe a consumer knows someone that is fighting breast cancer, so they may be more likely to purchase a KFC meal rather than Popeye’s.

While the campaign needs to reach the consumer in a meaningful way, a brand that partners with a great cause is also improving their brand image. If a consumer already has positive feelings about the cause, those positive feelings may be transferred to positive feelings about the brand. This can also be demonstrated with attitudes. If a consumer has positive feelings towards a cause, when they view the advertisement that relates to that cause, they will probably have positive feelings towards the ad. When a consumer has positive feelings towards the ad, it impacts the attitude towards the brand.

If the campaign is successful, consumers will develop a positive attitude toward the brand, categorize the brand with other favorable products, and ultimately develop brand loyalty. While all of this is being done, the companies as well as the consumers are helping to make an impact by supporting great causes. It can definitely be argued that cause-related marketing is not only beneficial, but also socially responsible.

With that, I will leave you with the new Coca-Cola holiday campaign developed by Leo Burnett.

(You must have known that it would be cause advertising, right!)

Working with the WWF and the new “To The Arctic 3D” IMAX, Coke will be “whiting out” it’s billboards and soda cans to benefit this great cause.

Articles Used:

http://adage.com/article/goodworks/marketers-core-consumers-demand/230061/

http://npbrandit.com/articles/nonprofit-marketing/study-shows-nonprofits-benefit-from-corporate-partnerships/

http://adage.com/article/cmo-strategy/coca-cola-real-polar-bears-wwf-promo/230632/

In a day and age where fast food is made up of ingredients many of us are oblivious to, it is refreshing to see a company stand out from the rest and base their entire marketing mantra on a concept unfamiliar to many people in this fast paced, “I want it now” society we live in. The idea of “Going Back to the Start” is the face of Chipotle’s new viral marketing campaign aimed at informing consumers that there is such a thing as “food with integrity,” which is simply natural, family-grown or raised, and ultimately socially responsible.

An article by the Chicago Tribune discusses Chipotle’s recently released video featuring Willie Nelson’s rendition of Coldplay’s popular song, “The Scientist,” which depicts a small town farmer shifting away from his traditional farming roots and adopting an industrialized and unnatural method of cultivating his livestock. Eventually, the farmer realizes his original way of farming was far superior and decides to do the environmentally responsibly thing and “go back to the start.” Chipotle does an excellent job in getting people to think about the serious issue, while promoting its brand in the meantime.

The advertisement, which is intended to create somewhat of an emotional reaction to people viewing the harmful effects that industrialized farming brings with it, creates a sense of sadness and empathy for the farmer. It really gets people thinking about the differences between Chipotle as a fast food chain, as opposed to say, your typical McDonalds ad.

Sustainable farming, which Chipotle bases their entire positioning off of, “uses techniques such as crop rotation, soil conservation, natural fertilization and polyculture planting. In livestock production, they use pasture-based systems, feed animals what their bodies are designed to digest, and treat their animals humanely. Sustainable farms produce foods that are tastier and more nutritious than foods produced on factory farms, while also preserving the long-term health of our environment.”

Simply said, this is responsibility at its finest, despite the negative stereotypes that many fast food restaurants must battle. Chipotle seizes that opportunity in the marketplace to finally provide a fast food experience that defies the typical processed and unnatural methods of creating food and opts for an experience that provides healthy, fresh, locally grown, and socially responsible options. By raising awareness about what responsible farming is, they are fostering a need for healthy and naturally raised food that many people were unaware they had.

As many people are trying to do their part in going green and helping the environment in any little way, Chipotle has made the responsible choice. The powerful “Going Back to the Start” video sets the agenda that people should be concerned about where their food comes from originally. But, while many people may view this as just a healthy food option, when going to the roots of what Chipotle is really doing, they are keeping small family farmers in business and helping the economy along the way.

Many people may think, however, why haven’t I seen these advertisements? Chipotle is again set apart from the rest, they choose not to engage in heavy television or radio advertising, but instead to stick to simple movie-theater ad placements, word of mouth, and public event sponsoring to raise awareness of their brand’s positioning as an environmentally responsible company. These ads create a positive impact on those who view them, while informing and motivating consumers to learn more. Chipotle also discusses their farming methods and responsibility in using sustainable farming techniques all over their website in order to raise awareness about the importance of such a trend.

This popular concept of going-green, being environmentally responsible, and incorporating organically grown food helps Chipotle to solidify their standing as a company that truly cares about the implications of their actions. Their growing popularity and extreme success in the business world teaches other companies in the fast food industry that caring about the long-term effects of your business’ actions will carry with it many positive benefits.

In the case of Chipotle, this is truly marketing with integrity.

Chicago Tribune Original Article

Chipotle’s Webpage: Food With Integrity

Sustainable Table: The Daunting Techniques of Factory Farming

Ad Week recently reported that in response to pressure the Interagency Working Group on Food Marketed to Children is considering making changes to their proposed voluntary guidelines for food marketers targeting children. The controversy over the regulation is indicative of our increasing concern as a society over both childhood obesity and the effect advertising might have on that problem. In a nutshell, the plan proposed that marketers either change the formulation of certain products aimed at children to make the foods more healthy or cease marketing those products to children. While the proposal has a number of Senate Democrat supporters, it has generated strong criticism for being too heavy-handed (despite being completely voluntary) from both the advertising industry and GOP congressmen. While the goal of reducing childhood obesity is laudable, those in favor of increased regulation of advertising need to realize that, in this case, regulation of advertising may not achieve the desired effect.

At first glance it may seem like regulation is the way to go. While children aren’t making most of the final purchase decisions, they do play a strong role in influencing their parents’ decisions which is part of the rationale for marketing to children. Yet because children aren’t fully developed mentally, they may be more prone to impulsive behavior and less capable of making rational decisions, making them more likely to be misled by advertising. As childhood obesity is now widely recognized as a major social problem it therefore might seem like a no-brainer to push the kind of regulation the Interagency Working Group is proposing.

However in this case regulating marketing efforts may not be the best way to go about achieving the ultimate goal of promoting healthy eating during childhood. Faced with the prospect of the stick rather than the carrot, advertisers may simply find ways around the regulation while technically remaining in compliance. In fact this might already be happening to some extent. An earlier piece by Ad Week mentions a report by the Rudd Center noting that while advertisements for junk-food aimed at children are down, children’s exposure to junk-food product placement is up.

For their part, advertisers need to realize that concern over childhood obesity and worries that marketing efforts are exacerbating the problem aren’t going away. Rather than continually taking defensive action against this kind of regulation they need to consider the benefits of developing and advertising healthy products that kids actually like. Easier said than done, but considering the influence children have on family purchases how much easier would it be to increase sales if the foods they wanted didn’t cause parents concern?

Ad Week: Feds May Soften Controversial Food Marketing Guidelines

Ad Week: Study: Industry’s Found Sneaky Way to Keep Advertising Junk Food to Kids

Interagency Working Group on Food Marketed to Children’s Guidelines

Did you know that by submitting one photo that had water in it to GE’s ecoimagination website last year provided 480 gallons of clean drinking water to developing countries?  By posting a wind photo, 4.5 KW hours of wind powered health clinics in rural Peru and by uploading a photo of light, 175 hours of solar power were given to families in East Timor.  Through GE’s ecomagination website, GE encouraged a joint collaboration with Flickr members to take photos of these elements and “Tag Your Green” allowing for that one simple uploading of a photo affect lives across the globe.  The campaign was very successful and GE achieved their goal of 10,000 photos for each nature element thus changing countless lives.

Since global warming and energy crisis have become buzzwords in the media, companies such as General Electric have decided to turn the negative connotations of the words to a call of action utilizing social media.  Within doing this, they have created a branding moment that demonstrates their understanding for environmental concerns and how their brand in turn can contribute to a “greener” Earth by involving consumers.  On the photoproject website, GE gives tribute to Social Vibe http://www.socialvibe.com/an engagement-marketing website whose belief is the brand should be in the hands of consumers.  On SocialVibe’s website, the company portrays a large global cause platform that is meant to be indispensible to consumers.  By pairing social media to contributing to the greater good, SocialVibe and General Electric have positioned the role of social media to become an agent of change.
Consumers are not only becoming the agents of change, but theopportunity to affect change is in their (the consumers) hands.

GE’s tagline is “Imagination at Work” and it is evident that their imagination is cognizant of the need to be relevant to the younger generation and the countless number of people who interact with social media daily.    As evident of the 2010 campaign, they successfully completed their goal.  By being aware of the use of social media in promoting a cause, the company is not only enacting change, but also linking their name to good works.  General Electric does have quite an advantage for promoting a greener earth, but other companies could also join the cause of utilizing social media and sites such as Social Vibe to jumpstart change in the world.  If by taking a picture of water, posting it on Flickr, and then GE’s website and that one photo changed the life of someone else in the world, think about what would happen if more companies joined in to this concept of taking social media to a whole other level.  Imagination at Work.

Imagination at Work commercial:  http://www.youtube.com/embed/CsW1JE4Hg14?rel=0

September 11 represents a day that forever changed the American psyche.  It seemed for a small moment in time that people willingly took a break from their everyday lives of consumerism and capitalism and stood together to support those in need.  And now we will come together again this Sunday to commemorate the 10 year anniversary of that momentous day.

From a marketing perspective, we expect an aura of deference and caution to surround such a somber event.  And for the past 9 years we have been afforded that.  But something is different this year.  It seems that 10 is the point at which advertisers consciously or unconsciously decided that it was no longer “too soon”.  As a recent article in the New York Times explains, “marketers, media companies and advertising agencies are changing course, involving themselves with sponsorships, screenings, fund-raisers, programming and other highly visible activities”.

There seem to be two trends converging here.  One is the growing trend of advertisers trying to bring awareness of social issues by integrating them into their campaigns.  One well-known example is Dove’s “Campaign for Real Beauty”, which spoke out against the advertising industry’s love affair with idealized body image by depicting images of women that more closely resembled the average American woman. Because they bring to light social issues and help us to deal with them, it’s not hard to argue that this type of advertising is laudable (even if the bottom line is still ultimately about positioning products in a way that will best grow the brand name).

However, the other side of the issue is advertisers’ seemingly insatiable need to inundate consumers with every type of advertising possible.  Spurred on by changes in technology (such as the conception of DVR) that have made consumers less of a captive audience, advertisers are searching for more creative ways to imprint their messages upon society.  This has often manifested itself in the form of sponsorships and promotional activities.  The bottom line of advertising deals with selling, so we can’t entirely fault companies for these activities.  But do the ends justify the means?  Is 9/11 a day too sacred to sponsor?

We can’t automatically argue in the affirmative to such a question.  Some of the advertiser activities surrounding 9/11 are easily praiseworthy. For instance, the Advertising Council is coordinating a PSA campaign that encourages people to visit the 9/11 memorial.  PSAs provide consumers with important information and bring social issues to the surface (much like the Dove campaign mentioned earlier). Unlike normal advertising methods, PSAs are unconcerned with profits. Messages like these make people think about something bigger than just the product itself.  They encourage people to reflect on the attacks and to preserve their monumental impact in American history.

Watch 9/11 Memorial PSA

However some advertisers take ideas like these to the extreme.  The Lieb Family Cellars winery, for example, is marking September 11 with a bottle of Merlot that commemorates the opening of the national memorial.  Is this the company’s heartfelt way to honor such a historic occasion, or a marketing ploy designed to play off of the psychological aspects of consumer behavior in order to boost sales.  People often want the objects that they buy to act as symbols, to represent who they are as people.  Perhaps some people may buy into the idea of 9/11 wine in an attempt to persuade themselves that they are compassionate, generous, and genuine.  This masks the consumers actual need for the product and makes them reliant on their purchases rather than their true values. The issue is further muddled by the fact that the winery is promising to donate up to 10% of sales proceeds to the memorial.  Can we condone their marketing as tasteless or applaud them for helping to raise funds?

Because we live in such a consumer-driven culture, we had to expect that inevitably companies would attempt to somehow market an event that captures so much of America’s attention.  Perhaps the real issue then is where we draw the line.  We want to encourage PSAs that keep the impact of September 11 in the collective consciousness, but we also want to encourage consumers to draw a distinction between acts of respect that help the human good and acts of marketing that help one company’s bottom line.  Just because a PSA and wine promotion both deal with fundraising for the 9/11 memorial does not mean that consumers should view them in the same light. The PSA works because it is relevant to the actual day and it resonates with the true emotions of the people watching it. The wine promotion focuses more on the company and perhaps even encourages us to buy the product for the wrong reasons. The public should be spurred to action, but it should be the right kind of action.  For the sake of 9/11 and the reputation of advertising as a whole, we should actively encourage people to be cognizant of the differences between a message that keeps the history of the day alive in our culture and one that mainly serves to help a company’s profits.

Richard Castle is a pretty awesome guy.  He’s good-humored, likable, and he’s someone you can depend on when things are tough.  Sound too good to be true?  No – he really is like that.  So what’s the catch, then?  Well, he’s not real . . . sort of.  Richard Castle exists Monday nights for one hour beginning at 9 o’clock.  In case you haven’t heard of or seen the show (and I recommend you do; it’s pretty entertaining) Richard Castle is a bestselling thriller writer living in New York, who, in an attempt to draw inspiration for his writing, spends his time solving crimes with NYPD detectives.  He’s not real.  Yet something strange is occurring, because by some weird turn of events, Richard Castle’s novels are being published in our world – and they’re available at a bookstore near you!

 Castle, a member of the ABC family of television programs, has so far proved relatively successful for ABC, currently airing its third season.  In fact, it seems to have become so successful that a series of books, entitled the Nikki Heat Series, has begun to be published.  Its first title, Heat Wave, was published in 2009, with its second installment, Naked Heat, following earlier this year.  However, these aren’t your normal TV-tie-in books.  Reading the book synopsis and author biography, one begins to see that the publisher, Hyperion, treats both Heat Wave and Naked Heat as if they were, in fact, the actual novels from the Castle show.  For example, the author biography goes so far as to reference an earlier series of books written by Richard Castle.  A fusion of realities has occurred, in which the “real” world of Castle has become part of our everyday life – for the benefit of creating a “Castle Culture” for the program’s fan base.  A pretty smart move by ABC and Hyperion; and if Castle continues to entertain, it can be assumed a new Nikki Heat novel won’t be far off.

For a person entering a bookstore, the purchasing of a book is generally not considered to be a life-changing decision; therefore it would be an example of a low-effort decision.  So, being low-effort, what could compel a shopper to pick up a Richard Castle novel?  For one, there is the availability heuristic, where the shopper may recall details from Castle which would create a positive and vivid show-related experience that has the potential to not only spur them to purchase the novel, but to remind them to tune in as well.  The novels can really be an extension of the DVD products, and if placed together or in close proximity, they may increase the creation of the “Castle Culture” for fans. 

 Buying books, being a fan of a television program – it all comes down to the feelings that one gets from reading a good book or watching an awesome program.  We read the types of books that we like, right?  We watch shows that give us positive feelings, correct?  We do this because of feeling-based decision making, a part of low-effort processing.  ABC has tried to capitalize on this fact – in a rather successful manner, it would seem.  Let’s go back to the bookstore shopper: so they are browsing and come across Heat Wave.  What goes through their mind?  If they pick up the book, flip a few pages, and tuck it under their arms to buy on their way out, they’ve probably undergone affect referral.  Seeing the book reminded them of Castle, which, being a show they like, they associate it with feelings of happiness (it’s part comedy, after all), and as a result the intent to buy the book has happened.  However, not only has the book been sold, but there’s also been a reinforcement and reminder to watch the upcoming episode of Castle.  This same situation plays out on the ABC website for Castle.  Fans logging on to catch the latest episode online will see the advertisement for Heat Wave or Naked Heat.  This may prompt them to stop by the bookstore and buy a copy.  These techniques are serving to increase the brand familiarity of ABC, reinforcing their current viewers and hopefully also championing new ones.  Bookstores and websites are also performing another task: together they are engaging in co-branding.  The shopper who buys the book tunes in later to watch Castle; the viewer who goes online stops by Barnes & Noble or Borders to buy Heat Wave – in both cases, ABC and Hyperion are reaping the benefits.  Co-branding is allowing them to reach an even wider audience then they would be able to alone. 

In partnership, both companies are growing in popularity – not to mention profits.  And we, the consumers, are enjoying immersing ourselves in the life of Richard Castle, through print and images.  ABC’s on to a good idea – combining the imaginary and the real into one and the same.  What’s next?  How about airline tickets to the island of Lost . . .  

Social platforms like Groupon are advocates for collective consumerism but are their marketing attempts socially responsible?

Groupon has been named as the fastest-growing company ever by Forbes magazine. Their company is based off the premise of collective groups partaking in discounted shopping to create higher revenues for featured businesses. It relies on the social aspect of its service. Everyday subscribers are emailed the chosen limited-time bargain in hopes that enough subscribers will purchase the deal to “tip” the offering (cause it to go into effect). The company is very much reliant upon viral pass along for its success. Like word of mouth this is one of the most effect marketing strategies. It creates the opportunity for people to choose to participate or not in a financial deal that is as easy as the click of your mouse. It is easily accessible and cost the consumer nothing if they don’t participate. Their marketing strategy is genius. Seems flawless right? But I wonder if this type of advertising plays on the vulnerability of consumer’s decision-making processes.

When making high-effort decisions consumers can be affected greatly by a promotions perceived time limits or how they are framed.  Pressuring a consumer to make a decision under a time limit can lead to low-level construals. These elements are focused on the immediate. In this example the immediate is the discount the consumer is receiving. It can also be framed in high-level construals that focus on the future. These purchases may be immediate but they are for used for future purposes. Groupon plays on the perceived risk that consumers will miss out on a great deal. They also emphasize the importance of group consumerism. It is up to the subscribers to purchase enough to make sure the deal goes through. If not enough people participate then the offer is off the table for everyone. This doesn’t seem to be a problem for them considering that 95% of daily Groupons “tip.” Are these marketing strategies socially responsible? On one hand it is promoting the collect buying power of consumers. Individuals can feel part of a movement that benefits a thriving company in need of promotion and financially gain discounts for things they might already be planning to spend money on. Might is the key word. Consumers could also be feeling pressured to make purchases they might not otherwise make because of the emphasis of a GREAT deal and social activism.

Groupon also creates an obstacle for the comparison type consumer.  The simply formatted deal that appears in your email box every morning gives you the essential information needed for the decision. It doesn’t elaborate into this big selling ploy therefore making the decision to buy very easy. It doesn’t however led way for easy product comparison. This can help or harm the company. The consumer wont be bombarded with comparative advertising that might make them choose another option but they are also not allowed the comfort of knowing they made the right purchased based on all the factors. Consumers are given a day to take it or leave it.

Companies like Groupon are also infringing upon agency business. They have basically cut out the middleman and built marketing directly into their product. Individual consumers and companies rely on advertising agencies to sift through the clutter and present them with the best options and support of those options. If we have business that present the options for themselves there might be less of a desire to seek out more information which cant create for poor consumer decisions. The opposite is true that it could create for more product credibility because if the information is coming directly from the product the chances of perceived likelihood might be lowered. With an agency the advertiser can be blamed. With out the middleman the blame falls directly on the company potentially making for better business practices by companies.

Groupon: promoter of great social activism and collective buying power that creates unity among consumers or exploiter of the discount seeking customer?

References:

http://www.adweek.com/aw/content_display/news/digital/e3ie4f24b85cbd4c811b65148cd8af82f38

http://jordanballacm.blogspot.com/2010/10/groupon.html

The General Electric’s “Road Trip” commercial by BBDO New York is a clear and clever example of how the institution of advertising reflects society’s consumer trends and goals. Currently, there is an active movement towards eco-friendly lifestyles and therefore by design, corporate social responsibility. According to an article in AdAge by Bob Liodice, while this is vastly argued, exhibiting corporate social responsibility supports both the consumers’ agenda to do good and benefit oneself as well as the company’s agenda to profit. Liodice supports this argument with GE’s revenues for the Ecomagination program increasing over 20% in a year’s time, which is ever growing. Ecomagination was designed to build up consumer awareness of how the company works to improve the environment through renewable energy and reducing carbon emissions. This ad for GE’s Ecomagination with a tag-line of “Imagination at Work,” illustrates what GE is doing to encourage and contribute to the eco-friendly movement prominently associated by consumers with the electric-car. This coalition helps push the message presented in the ad by personifying the car’s goals and saying GE watt stations are “going to change the way we get to where we all want to go.” Even within the context of this singular statement one can infer the juxtaposed meaning of literally where we want to go as well as where we want society and the green movement’s influence to go or endure.

This ad influences consumers through various consumer behavior specific tactics in, including but not limited to: attention and motivation driven through relevancy to the audience and society. According to Hoyer and MacInnis’ text Consumer Behavior, to capture consumer attention–which is noted for being limited, divided, and very selective–this ad is relevant, pleasant, surprising, and easy to process. Relevancy to the consumer is clearly seen in the message illustrating the importance of using energy sufficient vehicles. The ad is viewed as pleasant, which can be attributed to certain aspects such as the music (“I’m Glad I Hitched My Apple Wagon to Your Star” by The Boy Least Likely To) and the portrayal of young hipster attractive people, which can be construed as a reference group depending on the target audience. The ad is also surprising by nature solely based on the innovative product being showcased and the breadth of locations with the implemented watt stations. Finally, the ad is easy to process because it is simple, has a clear message, and presents contrasting visuals between the novel product and its environment. Without having captured the consumer attention, motivation (which is critical to the message) is impossible.

General Electrics is already established as a well-known brand, which is positively associated with its programs such as Ecomagination supporting the consumer and corporate agendas. Therefore, the consumer has established a positive brand familiarity that builds credibility for the brand image, meaning, and actions. Also increasing credibility is the fact that this ad is an information based message not asking the consumer to buy something, but rather simply to get involved in addressing the needed change between the actual state (current environment) and the ideal state (healthier environment). This in itself increases the perceived consumer effectiveness, which is supported by the classical liberal tenant of quietism stating that as self-focused consumers we want a benefit (making a difference) before entering in consumption. The benefit or perceived effectiveness stimulates the viewer to actively inquire more about Ecomagination via the website call-out strategically placed at the end of the segment. This further outside research, seen in the classical liberal tenant of intellectualism meaning that the viewer is an active rational consumer, expands the message’s influence from that of solely the advertiser and brand on the consumer to the consumer on society as a whole because their intrinsic role as an newly educated consumer to spread the message and further the cause or movement.

Overall, as seen by the example of GE’s Ecomagination ad, corporate social responsibility can positively influence the corporate agenda to profit and maintain sustainability as well as the consumer’s agenda to fulfill needs, values, emotions, and goals for the self and one’s environment. As James Datri, president of the American Advertising Federation, said during the recent ExxonMobile Lecture Series at Southern Methodist University, “doing good is good business” for all parties directly and indirectly involved.

References:

http://www.adforum.com/affiliates/creative_archive/2007/ACT/reel_detail2.asp?ID=34460571&TDI=VDn8gdI3rW&PAGE=1&bShop=&awcat=&ob=&awid=

http://adage.com/cmostrategy/article?article_id=143323