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Gen Z Students Teach Their Professor About Thrifting

9/10/2021

by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

Remember the excitement of your first time wearing a new jacket or pair of shoes? Did you wonder how the original owner felt when they wore them? You probably didn’t unless you’ve been part of one of the hottest consumer trends--thrifting. For a variety of reasons, it’s now fashionable, especially among Generation Z, to shop secondhand, but this Gen X marketing professor wonders if it’s smart for the apparel industry to embrace a fad that may dissuade people from purchasing its new products.

Scanning my marketing news feeds a couple of months ago, a headline caught my eye, “Letter from Gen Z: Why thrifting is the future of fashion.” Thinking it was a bold prediction, I saved the article to discuss with my fall classes. The semester started, I shared the piece, and I’m stunned how passionate so many students are about thrifting!

However, on the first day of Personal Selling class, before I even mentioned the article, I asked each person to ‘sell us on something important to you.’ With great enthusiasm, a student named Brooke shared how much she enjoyed thrifting. Her tremendous passion for the practice was obvious to all, and very surprising to me.

My impression had long been that shopping for secondhand items was something mostly people on very limited budgets did out of necessity, to save money. Similarly, those who did frequent aftermarket sellers certainly wouldn’t brag about what they’d bought. Apparently, that stigma has subsided, and college students, some of whom come from affluent families, are among those most active in propagating thrifting’s new-found popularity.

To get a better picture of thrifting behavior among college students, I created a brief online survey that I shared with my four classes; about 70 students completed it. The results revealed some surprising behavior, for instance:

70.4% of students had purchased used clothing three or more times, and 54.9% had done so seven or more times.
The most likely places to purchase used clothing were traditional thrift stores like Goodwill and Salvation Army (39.4%), followed by retailers and brands that sell both new and used clothes, such as H&M and Levi’s (33.8%), then consignment stores (22.5%), and finally flea-markets (7.1%).
The strongest motivations for buying used clothing were cost (49.3%), followed by fashion (16.9%), then desire for old/vintage (11.27%), then impact of influencers (2.8%), and last environmental concerns (1.4%).

Before the survey, I didn’t think that so many college students were actively thrifting. To my surprise, only 9.9% of those who responded, said they’ve never purchased used clothing. I was also surprised that the places they thrift are rather evenly distributed.

Comparing the two different findings, it’s remarkable that the percentage of those who are very likely to frequent even the least popular thrifting place, flea-markets (7.1%), is not much lower than the portion of people who have never thrifted (9.9%).

On one hand, seeing cost emerge as the top motivator for thrifting was not surprising; however, I had expected its percentage to be even higher, e.g., 90% or more—again, I always thought that saving money was the only reason people purchased used clothing.

As it turns out, the desires to be fashionable and to own old/vintage clothing were also very compelling. Along those lines, I realized that my simple survey failed to ask about what may be one of the most important motivations!

At the end of the survey, an open-ended question invited respondents to share any other thoughts about thrifting. Seventeen students seized the opportunity and offered responses that included the following:

“I love it so much!”
“I love to thrift and over half of my closet is thrifted.”
“Very cheap way of finding trendy clothes”
“It’s how I get 90% of my clothes.”
“I love that I can find articles of clothing that no one else is likely to have. Thrift finds are one of a kind. I also buy clothes from stores like Target, but my purchases [there] are not as unique [emphasis added] because other people have the ability to buy the same thing. Thrifting grants me a more unique [emphasis added] wardrobe!”
At least 50% of my clothes are thrifted, I absolutely love thrifting - both because it limits waste in the fashion industry and because it’s fun! [emphasis added]

The last two comments contained two words that were both eye-opening and full of marketing implications:

1) Unique: I remember, not long ago, when young people wanted to look like everyone else. To be one of the few people who didn’t have the popular brands of sneakers or jeans was often an ostracizing experience.

Now it seems that many Gen Zers want to own clothing that not everyone else is wearing. Moreover, items that are one-of-a-kind, like those that can be found through thrifting, are even better, as they help express individual identity, which mass marketed products can’t easily accomplish.

2) Fun: In my thrifting survey, I kind of included a question about wanting unique clothing (“old/vintage”), but I completely overlooked the idea that members of Gen Z thrift because they enjoy the thrill of the experience.

For many, thrifting is a kind of treasure hunt in which they may or may not know exactly what they’re looking for, and what they find may be a complete surprise. It’s exciting for almost anyone to come across something special that others are unlikely to locate.

Both of these motives, as well as some of the others, are instrumental to the thrifting behavior of Brooke, introduced above, who has been buying secondhand products for 3-4 years and goes thrifting once every two or three weeks. In those outings, Brooke has found used bargains on everything from American Eagle clothing, to Ugg boots, to Vera Bradley bookbags.

Cost is certainly a motivation for Brooke; in fact, she says she loves saving money and showing people the great buys she gets for ¾ of regular retail prices. She also says that she now has “a hard time spending full price on clothing at retail stores.” However, Brooke also enjoys the excitement of thrifting:

“I get a thrill in not knowing what I’m going to find. You don’t know if you’ll walk in and find brand new Nike shoes for $40 or Lululemon leggings for $30, and that’s the fun in thrift shopping, the unknowns.”

There’s little question that many members of Gen Z enjoy thrifting for a variety of reasons, but what can/should marketers do with that consumption behavior? After all, most clothing brands are in the business of selling new clothes, not used ones. Some, however, have found ways to do both, and apparently make money.

One of those brands is the iconic blue jean maker Levi’s, which has made an entire enterprise out of buying back and reselling its used denim. The company runs a well-developed website, Levi’s SecondHand where it resells its classic jeans, jean shorts, denim jackets, and more.

Even though they’re used, the items aren’t cheap. For instance, the site sells preowned men’s original fit 501 jeans for $38. On a recent Labor Day sale, Macy’s offered the same jeans new for $41.70, or less than $4 more. Levi’s used product site also sells Vintage 501 Shorts for a pricey $78 a pair.

However, a webpage that describes Levi’s SecondHand explains why someone would want to pay a premium for preowned: “Denim from past seasons that’s already beat-up and broken in. In other words, perfect.”—That sentiment is very similar to the survey finding mentioned above about generation Z liking clothes that are old, vintage, and unique.

The company also touts several other advantages of SecondHand, especially sustainability:

“If everybody bought one used item this year, instead of buying new, it would save 449 million pounds of waste.”

“Levi’s SecondHand keeps coveted pieces in circulation. It’s all about connecting people to timeless styles they otherwise may not have found, and most importantly, saving clothing from going into a landfill. Old denim has never looked better.”

A big question that remains is if selling secondhand is sustainable for Levi’s. Sure, used denim may be what consumers want and what the environment needs, but can the company make money in the clothing aftermarket? If not, the program has little potential.

Levi’s SecondHand isn’t yet a year old, so longevity is still not the best indicator. However, if the company is successful selling some used products for only a few dollars less than they sell for new, and others for even more, it seems likely that the firm, free from manufacturing costs and with relatively little added overhead, must make a healthy margin on each piece and turn a profit on the program as a whole. Interestingly, over the past year Levi’s stock price has increased significantly, from $12/share on September 21, 2020, to $26.50/share on September 6, 2021.

Can other clothing companies pull off a secondhand program like Levi’s? Few have the history and brand equity that the iconic jean maker enjoys; however, consumers’ appetite for used clothing and the favorable cashflow suggested above serve as an invitation to other suppliers. Furthermore, the fact that those who have entered the aftermarket include clothing retailers J.C. Penney, Macy’s, Madewell, and Nordstrom, as well as the furniture behemoth IKEA, suggests the viability of selling secondhand.

When you think about it, it’s not unusual for manufacturers and new product retailers to sell used products. Auto dealerships have been doing so for a century or more. Part of the reason people are willing to pay so much for new cars is that they know when they’re done driving them, someone else will buy them. Whether it’s Levi’s or Lexus, high resale value is a hallmark of a strong brand.

Still, an important moral issue remains, which a second member of Gen Z brought to my attention. Katie, also a marketing student of mine, helped me see that consumers have a responsibility to ‘thrift ethically.’ Inspired by a variety of posts she’d seen on Instagram and a visit to a thrift store in Colorado, Katie suggested that consumers shouldn’t shop in “low-volume, high-populated areas” and that they should avoid patronizing secondhand places “outside of their fiscal demographic."

The overarching reason for these sensitivities is that some desirable-brand item that we buy in a thrift shop as a ‘little luxury’ might be the same item that a more impoverished person would buy out of necessity. As consumers, we are often accustomed to there being plenty of products for everyone, but Katie reminded me that what we buy secondhand may be taking something away from someone who needs it more.

Of course, not every product lends itself to a profitable aftermarket, but many do. Consequently, for the sake of environmental, financial, and social stewardship, more companies and consumers should consider how they might responsively market and purchase preowned products. Whether new or used, items that offer value to buyers and profit to sellers, can be considered “Mindful Marketing.”

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Has OnlyFans Sold Its Soul?

8/29/2021

15 Comments

by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

When you were a kid, people probably asked you, “What do you want to do when you grow up?” It’s unlikely that anyone ever asked what you wouldn’t be willing to do for a living. However, that uncommon question may actually be the more important one; at least that’s what OnlyFans’ off-again-on-again sex saga suggests.

Those familiar with OnlyFans were surprised to learn that the London-based online subscription service known for risqué content had suddenly decided to ban sexually-explicit videos. The move, which seemed analogous to Budweiser abandoning alcohol, made me wonder whether the purveyor of virtual vice suddenly had a moral epiphany that left it feeling convicted and compelled to reform its ways.

However, my online search for an ethical impetus behind the pornography ban came up empty. It appeared that the main motivation came down to processing payments and keeping credit lines open, since some of OnlyFans’ banks had become increasing uncomfortable with transactions tied to the sex industry.

On one level, OnlyFans did act on a moral imperative, but it wasn’t a strategy it selected willingly; rather it was behavior compelled by others and tied squarely to revenue retention.

The idea that there had been no real ethical enlightenment became all-the-more apparent when, within a matter of a few days, the company reversed its stance and lifted the pornography ban.

Any of us can change our minds on ethical issues (I sometimes do), but for an individual or organization to go from “this is so right,” to “this is so wrong,” to “this is so right,” within a matter of days, defies most moral compasses.

So, whether or not we agree with OnlyFans’ recent choices, it’s hard to lend the company moral capital for any of them. Instead, we’re back to the most basic business ethics question: Is OnlyFans’ business model a moral one, i.e., Is it right to sell sex?

Of course, selling sex has been happening for millennia, which is why prostitution is known as “the oldest profession.” Also, throughout that time a very wide variety of sexual expression has been sold, from actual physical intercourse to subtle innuendo in advertising.

Over so much time and across so many different cultures, there’s bound to be differences of opinion about what constitutes appropriate sexual expression and how, if ever, if should be commercialized. My convictions, which stem from a Christian worldview, provide guiding principles that admittedly are filtered through my interpretation. I respect others’ distinct judgments and bases for beliefs because I don’t have it all figured out.

Still, there are four arguments I often hear in favor of commercializing sex that are hard for me to appreciate for reasons I’ll explain:

1) Diversity and Inclusion: In a tweet describing the reversal of its pornography ban, OnlyFans said:

“Thank you to everyone for making their voices heard. We have secured assurances necessary to support our diverse community [emphasis added] and have suspended the planned October 1 policy change. OnlyFans stands for inclusion [emphasis added] and we continue to provide a home for all creators.

OnlyFans’ announcement reminds me of Frank Sinatra famously singing, “I did it may way,” as well as of many young people today saying, “You have to do you.” All three sentiments suggest that what’s good is purely a personal decision, or what feels right for that individual.

Individuality is good in many ways, but personal diversity related to what a person does (i.e., their actions, behaviors) is different than who a person is (e.g., their race and gender). Unfortunately, OnlyFans conflates the two. People always deserve respect for who they are, but personal preference for what to do shouldn’t serve as the metric for what’s ethical.

2) Free speech: Reading and listening to interviews about the OnlyFans news, I heard several sex workers appeal to free speech, suggesting that what they sell is protected by freedom of expression. In terms of U.S. constitutional law, it is true that not only words but actions, specifically symbolic ones, fall under the umbrella of free speech.

However, free speech doesn’t give the right “To make or distribute obscene materials” (Roth v. United States, 354 U.S. 476; 1957). Granted, this prohibition is a legal one, not necessarily a moral one; still, it’s informative that those interpreting such important constitutional matters felt that free speech does not mean the right to say or do absolutely anything and that illicit expression is particularly deserving of censure.

3) Free Market System: The interplay of supply and demand is effective for bringing about marketing efficiencies, but some seem to believe that if there are two consenting parties—a willing buyer and a willing seller—any exchange between them is inherently ethical. Countering that notion is the moral axiom, “Just because you can, doesn’t mean you should.”

In the vast majority of cases, sellers and buyer do self-regulate ethically; yet, there are plenty of instances in which parties to an exchange rationalize activities that most others say is wrong, e.g., murder for hire, distribution of illegal drugs, human trafficking, etc. So, claiming that selling sex is okay because two collaborators want it does not hold much ethical weight.

4) Jobs: One of the greatest privileges a person can have is to do meaningful work. Good jobs are important for individuals’ economic and emotional well-being, as well as for society as a whole. However, in keeping with the previous point, not every job is a good job.

Some people make significant money and may even enjoy being arms dealers or animal poachers, but employment is not an absolute good. What people do for pay matters. A job that’s harmful to them or to others is not a worthwhile job.

It’s nice that sex workers can pay their bills, but there’s little or no redeeming value that sex workers can claim , i.e., “Here’s how we’re helping others and making this world a better place.” If anything, sex work precipitates very adverse impacts, e.g., addiction, objectification, psychological scaring, and broken relationships.

Job security is one of life’s most motivating forces. Many people will do almost anything to rationalize and retain their income stream, which evokes this article’s original question: Is there anything you wouldn’t do for money?

Growing up and working in our family’s promotional products company, I clearly remember my father pulling aside calendar manufacturers’ catalogs that contained sexually explicit pictures and completely covering those pages with large decals so what was under them couldn’t be seen by our salespeople, our customers, or anyone else.

We could have done well financially marketing those lewd calendars to companies that wanted to buy them; however, my dad decided that offering them was not the right thing to do. Selling sex was something he wouldn’t do for money.

Although it may be economically advantageous, it’s morally unfortunate that people today can easily make money selling sex. Hopefully, OnlyFans will at some point reconsider its largely illicit business model. In the meantime, the company continues to be a purveyor of “Single-Minded Marketing.”

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Cutting Out Weight Loss Ads

8/15/2021

11 Comments

by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

Have you ever felt self-conscious about your weight? Most people probably have, perhaps because of someone’s casual comment or from comparing their figure to those of their friends. Maybe an ad even contributed to the unease. Marketers increasingly seek to affirm all physiques but is their support of body positivity delivering an unhealthy message?

It’s hard to think of inclusiveness of physical form without remembering Dove. Through its 2004 “Real Beauty” campaign the personal care brand pioneered promotion based on the reality that beautiful people come in all shapes and sizes.

Since then, many other organizations have mirrored Dove’s body-positive approach. Retailers like Kohl’s and Old Navy, routinely include plus-sized models in their ads, while Target and Macy’s employ variously proportioned mannequins to highlight similarly sized clothing.

Last month, the picture-lovers site Pinterest took body positivity a step further by announcing it would ban weight-loss ads. The social media platform explained that its decision was in the interest of individuals “facing challenges related to body image and mental health,” especially those suffering from eating disorders.

The first major social media platform to take such action, Pinterest’s unprecedented decision quickly received wide news coverage ranging from Fortune to NPR.

Most media cast Pinterest’s ban of weight loss ads in a positive light. For instance, an NBC News opinion piece called the choice “a glimmer of good news” amid more typically troubling stories.

It’s very encouraging that people increasingly recognize that everyone is different and that those differences can be celebrated. But are all differences good differences? Aren’t there certain behaviors that are objectively better for people to do, and others to avoid? Furthermore, are some marketers, like Pinterest, encouraging people to celebrate differences that could actually be harmful to them and to society?”

These are difficult questions to answer in any context, and they become especially tenuous when treating a topic like body image, which so directly impacts everyone, both in individual, psychological ways and in social, relational ways.

In my early years, I was a somewhat ‘chunky’ child and experienced, more than once, critical comments about my weight, which were hard to hear. As I grew older, taller and became more active, I lost weight, or maybe more accurately, didn’t gain much more. Ironically, I now sometimes receive unsolicited comments about being thin, which admittedly are easier to accept; although, they still make me feel uncomfortable.

Despite, this personal experience, a middle-aged man like me is probably not an ideal person to offer insights about body image and the social norms that surround it. When I feel ill-equipped to tackle an ethical issue on my own, which occurs often, I reach out to others who have different and frequently more informed perspectives.

In this instance, I needed as much help as ever, so I contacted several people who I knew would expand my perceptions by hearing their thoughts about Pinterest’s ad ban. Here are highlights from three interactions:

1. A veteran registered nurse, and Baby Boomer, who works in adult primary care as a nurse practitioner posed two important questions that also have been on my mind: 1) How effective are weight loss ads, and 2) “Do they promote healthy behaviors or unhealthy ones?” In answering both questions, she pointed me to a study published in npj Digital Medicine, which found that “online advertisements hold promise as a mechanism for changing population health behaviors.”

She also referenced CDC statistics that show that from 1999 to 2018, the prevalence of obesity in the United States increased from 30.5% to 42.4%. In her work, she sees firsthand how the effects of obesity, including diabetes and hypertension, can lead to “even more life changing complications.” She added:

“Weight loss is usually part of the treatment, and avoidance of obesity is usually preventative. So, if clicking on weight loss ads is a behavior that leads to seeking out more information on healthy behavioral change, then by all means, keep the ads.”

2. A member of Generation Y who works in the food marketing industry had a somewhat different take on weight loss ads. She said that her online scroll speed increases significantly in order to avoid the ads, which she says, “feel more personal as they poke at my self-esteem.” However, she qualifies her aversion to the ads, adding:

“I believe that weight loss products/services deserve to be advertised, but maybe in a way that’s sensitive to the cultural climate of body positivity/neutrality. I’m hopeful that these organizations could use that mindset as a framework guiding their ads, in a way that’s still effective at stopping someone’s scroll but acts as an invitation rather than a confrontation.”

3. A college student and member of Generation Z told me about his very significant weight loss: In just five months, this 6’ 3” young man lost 60 lbs., dropping from 260 to 200 lbs. Given that his accomplishment came mainly from “drinking plenty of water and exercising 4-5 times a week,” it’s not surprising that he emphasized the importance of approaching weight loss as a serious undertaking that requires perseverance:

“It is important to draw the connection between weight loss and hard work, the latter which must come first. It's about discipline, research, and taking your own personal initiative to develop an interest in personal fitness. You cannot simply buy a weight loss program and expect fat to magically remove itself from your body.”

Although he had no concern that society would suddenly become heavier if weight loss ads disappeared, he did express concern about any messaging that might normalize obesity:

“We will lose the idea of what is acceptable and what is not if we desensitize ourselves to what is normal. Being overweight is not a ‘normal’ state to be in, according to health professionals regardless of what ‘body-positivity experts’ have to say. It is common, but not healthy . . . It is ironic that the body-positivity movement promotes every body type more frequently than the ones deemed most healthy by scientists and health professionals.”

Of course, the opinions of these three people don’t represent the full spectrum of perspectives on weight loss and body image. They didn’t speak much to issues like anorexia and bulimia; however, I know each of them understands and empathizes with all who suffer from such eating disorders, as well as those who have been shamed because of their physique.

At the same time, these three voices have expressed important points that perhaps seem contrarian, probably because they tend not to receive the attention they deserve. For instance, they emphasized:

The right type of weight-loss advertising, that’s affirming and realistic, can be effective and beneficial.
Weight-loss is more a function of hard work and self-discipline than any quick fix.
No one should be made to feel bad about their body, but normalizing obesity is not helpful.
Although eating disorders like anorexia and bulimia are fairly common (1%-4% of the population suffers from them), obesity is much more prevalent: As mentioned above, in the U.S., 42.4% of adults were obese in 2018. Also, unfortunately, the pandemic has seen an increase in obesity, with an average weight gain of 29 lbs., making people more susceptible to the dangerous effects of the virus, as well as other serious illnesses.

It’s unfortunate that we live in a weight-obsessed society. Some marketers bear responsibility for helping to cultivate that preoccupation, e.g., by promoting unhealthy lifestyles that lead to excessive weight gain. Others are culpable for perpetuating unrealistic physical ideals and impossible ways of achieving them.

Pinterest is right to act against specific advertising abuses that cause others to feel shame and that encourage eating disorders. However, in embracing body positivity, the social media platform and others should be careful not to inadvertently endorse what is objectively one of world’s biggest problems, obesity, as doing so weighs in as “Mindless Marketing.”

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Learn more about the Mindful Matrix.
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Help Wanted, Marketing to Prospective Employees

7/31/2021

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by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

While eating lunch at a favorite restaurant recently, my son and I noticed that the menu was much shorter than before. The Italian eatery was no longer even offering one of its standard selections, pizza! After our meal, I asked our waitress about the simpler spread. She explained it was because they couldn’t hire enough cooks to prepare additional entrées.

You’ve likely seen signs in restaurants, ads from retailers, and posts on social media from other service providers announcing pressing needs for more employees. While the recent labor shortage has been a boon to job seekers, it’s been a bummer for many businesses that find themselves perpetually understaffed. However, firms can turn their current recruitment challenges into opportunities if they rethink how they market to prospective employees.

Like many professors, I’ve invested considerable time helping students get jobs, both internships during college and career positions after graduation. What has for decades been largely an employer-oriented sellers’ market has suddenly shifted. Now employers are increasingly competing for new hires. As a result, it behooves businesses to go back to school and brush up on their marketing, not to attract customers but to contract employees.

In a few days, I'll participate on a panel for that purpose, joining three others to engage employers in a discussion of how to recruit college students and recent grads more effectively.

Being both a marketer and a college faculty member, I hope to offer a unique perspective, mainly based on two-plus decades helping get students gainfully employed. I’m fairly familiar with Gen Z’s preferences in the recruiting process. So, in case there’s any overlap between the panel audience and this one--spoiler alert! I’m sharing below my recommendations for more effective marketing to prospective employees.

It’s probably not surprising that this marketer’s suggestions flow from the 4 Ps. Although there are several strategies I could encourage for each marketing mix component, I’ve singled out two for each, not because they’re necessarily the most important ones but because they’re the features/benefits that young prospective employees increasingly seek, which means they’re ones upon which employers need to double down:

Product

Social Responsibility: Gen Z’s desire to align themselves with organizations that make a difference is well-documented. Its members want to have a positive impact on the world, and one of the best ways to do so is to work for “purpose-driven companies.” Firms should be able to communicate clearly and concisely to prospective employees how they help people and the planet.

Attractive Organizational Culture: Decades ago, when I was entering the job market for the first time, company culture was not on my radar screen. Now most new hires want to know 'what it will be like' to work for a firm. I often hear them offer desired descriptors like “low-stress,” “friendly,” and even “fun.” Interviewers should be prepared to talk about their organization’s culture and point to specific examples. They also need to model it in their interactions with prospects.

Place

Work On-Line: Through the pandemic, where work occurs has become an increasingly important point of interest. Many people with whom I’ve spoken have suggested that they’ve enjoyed working from home; in fact, they’d like to continue to work remotely at least some of the time. As might be expected, most Gen Zs are extremely comfortable with digital technology and very used to interacting with others virtually.
Work In-person: At the same time, people also mention that they miss the impromptu interactions that would occur in office hallways and around the proverbial watercooler. In taking jobs, many new grads move away from family and friends, so they’re hoping to make new, meaningful connections. One recent graduate told me it’s harder for her to develop those relationships just from online interactions. So, it seems that employers should provide at least some opportunities for face-to-face interaction.

Promotion

Timely Communication: This past spring a senior student of mine was interviewing with an organization. The process was going well, but more than once he expressed concern, e.g., “It’s been almost two weeks since my second interview and I haven’t heard from them.” Granted, two weeks is not an unreasonable wait, but employers should be sensitive to the fact that more job seekers today have multiple options. So, to not miss the opportunity to make a great hire, firms should at a minimum make clear their timeframe for follow-up communication and even better, move the recruiting process along a little more quickly than it has gone in the past.
Transparent Communication: In keeping with the previous imperative, many college students tell me how much they value transparent communication. Sometimes I push back and ask, “Do you really want to know everything an organization does?” They reply, “No, but we don’t like when they hide important things or try to put a positive spin on something negative.” In short, they want organizations to be open, honest, and genuine. Companies should be careful to model these values in their communication with prospective employees.

Price

Appropriate Pay: Professional sports fans often hear of pro athletes wanting to “get paid.” It’s usually when a star’s current contract doesn’t compensate them in proportion to their productivity. College-age prospective employees don’t have contracts, but they should ‘get paid’ in the sense that they shouldn’t be lowballed; rather, they should be offered competitive salaries and benefits at if not above market averages. These young people aren’t looking to squeeze out every dollar they can, but they do have debt to pay and don’t want to have to live paycheck-to-paycheck. Similarly, unpaid internships should be a thing of the past.
Work-Life Balance: The greatest resource employees give organizations is their time. Although the prospective employees with whom I speak are very willing to work hard, they rightly want to have sufficient time for other needs and interests outside of the office. Employers should monitor and encourage healthy work-life balance. They also should be ready to tell prospective employees about their systems for maintaining an agreeable life equilibrium.

Some sectors, like healthcare, already know well the challenges of employee recruitment and retention: For years, hospitals have labored to hire enough doctors and nurses. Now, many employers share their pain. The above prescriptions can bring some recruitment relief while also helping firms feel better, knowing that they’re practicing “Mindful Marketing.”

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Learn more about the Mindful Matrix.
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Is Space Tourism an Unnecessary Splurge?

7/17/2021

1 Comment

by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

It’s interesting to see how much people are willing to pay to travel from point A to point B: Is $50 too much for a 15-minute Uber to the airport; is $500 reasonable for a one-way flight from JFK to LAX? For a few hundred thousand dollars, today’s trendiest travel just takes a person from point A and back, but it does include a brief stop in the stratosphere. So, is consumer space travel worth its astronomical price?

For Jeff Bezos, Richard Branson, and Elon Musk, the answer is, of course, “yes.” These three billionaires not only want to be astronauts, they want others to share the celestial experience, provided they can ante up the soaring prices.

On July 11, Branson, founder of Virgin Galactic and a variety of other Virgin companies, became the first of the execs to experience outer space when his corporation’s SpaceShipTwo carried him and a small crew to an altitude 9.5 miles above the earth.

The two other tycoons are expected soon to follow suit, the next being Bezos in his company’s Blue Origin craft on July 20. Interestingly, Musk reportedly bought a ticket on Virgin Galactic about 15 years ago; he likely will also fly on one of his own SpaceX ships someday.

It shouldn’t be long before prosperous private citizens will be boarding spacecrafts and floating in zero gravity. With already over 600 tickets sold to individuals that reportedly include Justin Bieber and Leonardo DiCaprio, Virgin Galactic appears to be leading the space tourism race. However, its competitors are also reserving spots, such as a seat that SpaceX sold to a Japanese billionaire for a trip around the moon.

So, how much does a flight into space set a person back? Seats on Virgin Galactic have been selling for $250K each. and will probably increase after its successful maiden voyage. Still, a few hundred thousand dollars is a bargain compared to a ticket for the upcoming Blue Origin flight with Bezos, which cost the winning bidder a staggering $28 million; although, Blue Origin’s suborbital capsule travels over 62 miles above earth compared to Virgin Galactic’s 9.5.

Those are enormous amounts of money spent on an activity that is essentially entertainment, i.e., there doesn’t seem to be a reason why an ordinary person has to fly on a rocket ship. It just seems like something someone would choose to do for the thrill of it or to claim the one-of-a-kind experience.

However, before anyone starts pointing a finger too vigorously at these affluent amateur astronauts, it’s helpful to recognize that many people regularly indulge in expensive, and often short-lived, entertainment experiences. For some it’s hundreds of dollars to see a sporting event or a Broadway show; for others it’s thousands of dollars to travel to a special destination for skiing or scuba diving. I've been among the indulgers.

A little over a decade ago, a research paper I’d written was accepted for presentation at a conference in Honolulu, and fortunately my wife was able to join me on this first-time trip to Hawaii. Given the unique opportunity, we took a few extra days to visit Kauai, “the Garden Island,” where we decided to splurge on a very special flight of our own—a helicopter tour of the isle, including passes over stunning Waimea Canyon and the spectacular Napali Coast.

I believe at the time tickets cost us nearly $200 each, which before the ride seemed like an extraordinary amount of money for 50-minutes, but we rationalized that it was a once-in-a-lifetime experience, which it was. If there are a few places in the world that are worth a helicopter tour, Kauai is one of them.

Still, with all the needs in the world, it’s worth asking if money spent on such momentary pleasures should be used in other ways. Maybe a $200 helicopter tour doesn’t matter as much because it’s a fraction of the cost of a ride into space, which for most people, whether they can afford it or not, probably more easily crosses the line into what they’d consider to be unnecessary and excessive consumption.

One person who’s made that suggestion is senator Bernie Sanders. During a New York Times interview, he questioned the value of the space tourism race, saying, “You have the richest guys in the world who are not particularly worried about earth anymore.” His accusation reminded me of Oliver Wendell Holmes’ maxim, “Some people are so heavenly minded, they’re of no earthly good.” Are Bezos, Branson, and Musk too “heavenly minded”?

Perhaps Sanders has a point—maybe the cost of space tourism shouldn’t only be measured by its direct costs but also in terms of its opportunity costs, or how money spent on space tourism could otherwise be used. Swiss bank UBS has estimated that space tourism could be a $3 billion industry by 2029. There’s a lot of good that those billions of dollars could do.

On the other hand, perhaps some people are looking at the industry’s impact too narrowly. Maybe space tourism is doing and can do more earthly-good than many realize.

Already, SpaceX’s Dragon spacecraft has lent a big hand by delivering supplies and crew to the International Space Station. Although those are professional astronauts not tourists, the potential payoff from a large end-consumer market has often encouraged companies in certain industries to invest more of their expertise and resources to develop technology and perfect products that benefit others.

Airplanes and computers are two examples. Military pilots flew many flights before there was commercial aviation. Likewise, businesses used mainframe computers long before individuals used personal ones. In these cases, emerging consumer demand attracted competitors into the market, which helped to improve technology and lower prices. The same will likely happen with space travel.

At the same time, there are also examples of earthly-good that the space tourism industry is accomplishing already:

Blue Origin is donating $19 million of the $28 million winning bid for the seat on its New Shepard rocket; the beneficiaries are 19 different space-related nonprofits.
There are likely hundreds if not thousands of people whose jobs are currently tied to space tourism, and that number will continue to rise as the industry ascends.
According to SpaceX, point-to-point space travel, accomplished by leaving earth’s orbit, could soon make possible a 40-minute flight from New York City to Shanghai. In other words, space tourism is leading to a new era of travel for more utilitarian reasons.

Perhaps the greatest thing that space tourism is doing is inspiring the next generation of creative thinkers and risk takers. On his recent galactic journey, Branson spoke excitedly of how space captivated him as a child and how he hopes young people today will take inspiration from his stellar endeavors:

“To all you kids down there. I was once a child with a dream, looking up to the stars. Now I’m an adult in a spaceship with lots of other wonderful adults looking down to our beautiful, beautiful earth. To the next generation of dreamers, if we can do this, just imagine what you can do.”

Launching anyone into space, including ordinary people, is a risky proposition for all involved, in more ways than one. However, current and future benefits to humanity appear to outdistance those costs, making space tourism a stellar example of “Mindful Marketing.”

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College Athletes Must Get in Condition for Commercialism

7/5/2021

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by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

College students enjoy talking about ads, especially ones that feature top athletes like Tom Brady, Serena Williams, and Lebron James. The NCAA’s momentous decision to allow college athletes to become paid spokespeople has leveled the promotional playing field, but are young, soon-to-be endorsers ready for the pressures they’ll face in a different kind of game?

In a landmark decision on June 30, the NCAA lifted its long-standing rules prohibiting organizations from paying student athletes to endorse their products. Now athletes in all three divisions can profit by leasing their names, images, and likenesses (N.I.L.) to the highest, first, or only bidder.

The rationale behind the NCAA’s prior rulings was to preserve amateurism and the purity of competition, uncontaminated by commercialism. The point of this piece is not to debate the pros and cons of paying student athletes, which many others have already done. Instead, it’s past time to ask if these young people are prepared for the new opportunities and challenges that come with being paid endorsers.

Already, many of the same college athletes who had simply enjoyed watching professional spokespeople now find that they are professional spokespeople, but is paid promotion a game they’re ready to play?

The clock had barely turned midnight on June 30, when several college athletes began to monetize their new marketability. The first was apparently Auburn University quarterback Bo Nix who signed a deal with Milo’s sweet tea at 12:02 am, July 1. Two others who quickly followed suit were twin sisters Haley and Hanna Cavinder, basketball players at Fresno State University, who inked an agreement with Boost Mobile.

For the Cavinders, the leap to professional endorsers should be a fairly smooth one. They are business marketing majors, but even more, they are already social media stars with over 3 million followers on TikTok and about 4 million across all platforms.

However, for other newly minted marketers with less knowledge and experience, the transition will likely be more challenging. Here are five things college athletes should understand in order to do well and good in their new commercial competition:

1) Marketing: One wouldn’t jump into a serious game of basketball, football, etc. without knowing the sport. Similarly, one shouldn’t enter paid endorsement without understanding marketing. Beyond an appreciation of the discipline as a whole (e.g., the four Ps), two concepts that every paid endorser should comprehend are target market and branding.

The sponsoring organization and its advertising agent should be aware of the target market they’re trying to reach in terms of its demographics, psychographics, and any other identifying criteria. Endorsers should have the same understanding so they can make their own assessment of personality-audience fit and use that knowledge to tailor their communication.

Closely related, an endorser should have a clear picture of the unique identity, or brand, they’re building for themselves and the branding of the sponsoring company. Although these personal and organizational brands will never be identical, they should be complementary. For instance, individuals trying to build their brands as ‘sophisticated and exclusive,’ probably shouldn’t endorse brands that are seen as ‘low-budget and casual.’

2) Contracts: Sponsorship deals are typically bound by contracts that specify the rights and duties of all parties, including those of the spokespeople. As such, college athletes should understand basic contract terms like offer, acceptance, breach, indemnification, and exclusivity. The last term is especially important in that contract terms might prohibit an athlete from signing sponsorship deals with other organizations, particularly competitors.

Another special provision often found in endorsement contacts is a character or morals clause, which “allows the sponsor either to suspend or terminate a sponsorship agreement in the event that the athlete, celebrity or other endorser violates the clause [because of] behavior that is criminal, that is scandalous, or that might tarnish the advertiser’s brand.” Most people have better sense than Ryan Lochte showed after the 2016 Rio Olympics; still, it behooves every college athlete to understand that by signing an endorsement contract they become more accountable for their actions, including their social media posts, than they ever were before.

3) Personal finance: Although those who feel they don’t have enough money may disagree, research study results support the premise that more money can mean more problems, at least in terms of added stress. A former NCAA athlete who now works in banking, believes that newly earned endorsement income can become a burden for college athletes who lack sufficient financial acumen and discipline.

A little over a year ago, Hunter Brindle was captain of Messiah University’s baseball team while he completed majors in economics and marketing. Now an investment advisor, he expresses concern that college-age spokespeople may not manage their endorsement money wisely, leading to unsustainable spending habits they’ll regret later in life unless they are financially informed:

“When your housing, utilities, and meals are all covered by a scholarship, loan, or your parents in one large payment, you develop the mindset that every dollar that enters your bank account is there for spending. Therefore, I believe it will be very common to see many college athletes spending any endorsement dollars as fast as they are coming in without realizing the potential future benefit those dollars could provide when they are someday trying to figure out how to put a down payment on a house. Because of this, I believe it could be extremely beneficial for athletes to participate in some sort of financial counseling as they enter college where the reality of real-life expenses is laid out before them.”

4) Time-management: College places time pressure on every student, but regular practices, workouts, and games, mean that athletes must work even harder to balance their schedules. Messiah University’s men’s soccer coach Brad McCarty, who has led his teams to five NCAA Division III Championships, believes the addition of endorsements makes athletes’ time management all-the-more critical:

“One of the biggest challenges student-athletes face is the balance of time and resources. Regardless of the level—D1, D2, or D3—NCAA athletes are having to juggle homework, exams, study groups, practice, games, lifting, fitness, nutrition, sleep, relationships with teammates, dating relationships, spiritual development, social media, jobs, etc. College athletes interested in finding ways to be a paid endorser takes time/energy, but they already don’t have a lot of margin in their lives.”

McCarty goes on to say that athletic departments will be important players in helping their athletes navigate the new commercial environment.

5) Respect for others: The first four items college athletes need to understand are squarely in their own self-interest. However, they also should be cognizant of the impact their endorsement decisions may have on others, including some already inferred above:

Teams: Athletes who are good enough to receive sponsorship deals are naturally among the best on their teams, which means their coaches and fellow players must depend on them to avoid distractions and perform at high levels in order to help the team succeed.
Universities: Any organization’s brand is partly a function of the personal brands of its leaders and other members, e.g., Apple and Steve Jobs; Tesla and Elon Musk. College athletes must realize, therefore, that their endorsement decisions reflect on their institutions, which is why Brigham Young University has adopted an N.I.L. policy that prohibits its athletes from endorsing products like alcohol, tobacco, gambling, and adult entertainment.
Society: College athletes already serve as role models for many people, especially young fans. As they evolve into multimedia influencers, athletes should be aware that many more people will emulate their words and actions in ways that can produce broad positive or negative impact in areas such as physical health, mental well-being, interpersonal relationships, and environmental sustainability.

The five preceding prescriptions can challenge anyone, including young athletes who lack certain life experience and who need to focus on their sports and their education. As such, these new endorsers will require the guidance of many others, including their coaches, athletic departments, and institutions, as well as other individuals who can offer them informed and unbiased perspectives on personal branding and integrated marketing communication.

College athletes are some of the most gifted individuals in the world. With the support of others and their own self-discipline, they can continue to excel in their sports and in the classroom will also becoming producers of “Mindful Marketing.”

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Should Social Media Influence Have an Age Limit?

6/19/2021

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by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

“Act your age”—It’s a demand that flustered parents make of tantrum-throwing teens and that embarrassed teens make of youth-seeking parents. Obeying social norms like ones for age-appropriate behavior can be helpful for everyone, so why are some older people acting like social media influencers?

Influencer marketing has become “the fastest-growing online marketing channel” as countless companies have realized that ordinary people with sizable social media followings can be extremely effective at building their brands.

From 2016 to 2020, revenue from influencer marketing leapt from $1.7 billion to $9.7 billion, and it’s expected to rise even more, to $13.8 billion in 2021. Helping to drive this growth was the 2019 addition of over 240 new influencer marketing platforms and agencies, which enjoyed a whopping $6.50 in sales for every $1 spent.

Who exactly are these influencers? The top three in terms of social media followers are Ariana Grande (429 million), Justin Bieber (455 million), and soccer star Cristiano Ronaldo (517 million), whose recent removal of two bottles of Coca-Cola from a table at a European Championship press conference allegedly caused the beverage brand’s share price to plunge 1.6%.

However, the vast majority of influencers aren’t A-list celebrities whose actions affect stock prices; rather, they’re people who are persuasive in their areas of expertise and are regarded highly by their admirers. A few of these influencers who have the highest numbers of followers are:

Jamie Oliver – Food (6.7 million)
Murad Osmann – Travel (4.1 million)
Chiara Ferragni – Fashion and Style (15.3 million)
Paul Nicklen - Photography (5.6 million followers)
Joanna Stevens Gaines – Lifestyle (11.2 million)
Grace Bonney – Design (932k)
Huda Kattan – Beauty (28.2 million)
Jen Selter – Sport and Fitness (12.8 million)

Highly successful influencers undoubtedly share many traits such as strong communication skills and great credibility. Another is age: Most of the top influencers listed above, as well as others on HubSpot’s list, appear to be Gen Ys or Gen Zs. Very few if any have grey hair or wrinkles.

Supporting this observation, a Google search for “old influencers” produces a telling People also ask question: “Are there any influencers over 40?” The fact that this question is so common suggests that many doubt anyone past age 39 can have meaningful social media impact.

The widespread preference for youthful promoters makes a recent headline in The Drum seem almost ridiculous: “The rise of the 50+ influencer.” Really? Encountering a community of half-century and up social media spokespeople seems about as likely as seeing senior citizen sprinters at the upcoming Olympics.

We all know that as we age, our physical and mental capabilities decline, as does our pop culture relevance. Who wants to hear music suggestions or take fashion tips from a 75-year-old? Apparently, some people do, and increasingly those “some” number in the hundreds of thousands and even millions.

MediaKix has identified the “Top 10 Elderly Influencers Dominating Instagram,” a list that includes these well-seasoned spokespeople :

Baddliewinkle – 3.5 million followers: Helen Winkle’s unique brand attracts sponsors such as Smirnoff, Missguided, and Stash. Her tagline, “Stealing your man since 1928,” suggests she’s in her 90s.
Iris Apfel – 1.6 million followers: At the age of 97, Apfel is leveraging her extensive background as an interior designer to help build brands that include Vogue, Christie’s, and Hunter Douglas.
Accidental Icon – 743,000 followers: Lyn Slater is a veteran professor who started a fashion blog in 2014 and is now collaborating with brands like Maison Margiela, Perricone MD, and Oribe.

How are people who are old enough to be great grandparents becoming social media stars? In The Drum article referenced above, author Adam Whyte suggests that pandemic lockdowns kept many people at home and online more often, giving them extra time to be content creators and consumers.

Whyte is probably right that COVID helped speed the trend of older influencers; however, it’s likely one that was evolving anyway. Although they were not early adopters of social media, it was inevitable that at least some baby boomers and Gen Xers would grow into influencer roles given their sheer numbers (about 70 million and 65 million, respectively), their increasing use of Facebook, Instagram, etc., and their growing comfort with technology.

However, there’s an even more deep-rooted reason why the emergence of older influencers makes sense: Even though American culture doesn’t always show it, people do still appreciate age and experience.

This point hit home for me earlier this spring as I interviewed prospective college students for a special scholarship program. One of the questions we asked applicants was, “Who has been the most influential person in your life?” Virtually every person I interviewed identified someone older than them, e.g., a parent, grandparent, coach, or teacher.

If asked the same question, most of us would likely share similar responses. We’ve all appreciated learning from people who have done or seen things we haven’t, often because they’d lived longer.

So, does valuing age mean that older influencers will eventually take over social media influence? Probably not. Age has a strong positive correlation with meaningful influence, but it’s not the cause. People of all ages have valuable talents and experiences they can share.

So many people have positively influenced me over my life that it’s difficult for me to identify just one; however, among them have been several individuals who were younger than me. Ironically, some were my students—one who comes to mind is a young man who despite having a significant physical disability, always exhibited an extremely positive outlook no matter how challenging the circumstances. The fact that he and others were younger than me didn’t matter. What did matter was that I could learn from them.

A person’s influence isn’t as much a function of their age as it is of the type of person they are, what they’re good at, and how effective they are at sharing with others. A potentially helpful way of thinking about these three things is a paradigm I wrote about in an article a few years ago for the American Marketing Association. I called the model “The three C’s of personal branding,” which are:

Competencies: Everyone has unique talents, but people often need to invest time in developing them so that their knowledge and skills can improve to the point that they become useful to others.
Character: Theodore Roosevelt said, “People don't care how much you know until they know how much you care.” This truth aptly supports the notion those who influence us most aren’t just those who are smart or talented; rather, they are people who are kind and genuine.
Communication: Individuals of upstanding character who have valuable competencies won’t be very influential unless they effectively communicate with others. To reach people beyond those with whom they interact each day, influencers need to use some type of mass media, which usually means becoming proficient communicating via today’s most pervasive form of communication—social media.

That fact that the number of older marketing influencers is increasing shouldn’t be surprising. They’ve lived longer, which means many have more to share; however, longevity alone is not what makes someone influential. Individuals of any age who are competent, caring, and good communicators are likely to be successful influencers and practitioners of “Mindful Marketing.”

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More Diversity Won't Mean More Dollars for Häagen-Dazs

6/5/2021

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by Emilie Rush - digital media major and student director of The Pulse media hub at Messiah University

As a student of marketing and a person of color, Häagen-Dazs’ new diversity-driven ad campaign quickly caught my eye. It reminded me of a very different campaign from 2013 that featured actor Bradley Cooper seductively spooning vanilla indulgence from the same premium ice cream company’s pints. Unfortunately Häagen-Dazs’ recent move from ‘entice and excite’ to ‘racially right’ is unlikely to sweeten its bottom-line.

The firm was founded in 1960 by Polish-Jewish immigrants Reuben and Rose Mattus, who prided themselves in not cutting corners but rather using the purest and highest quality ingredients to make their premium ice cream. Häagen-Dazs has a history of authenticity, but the firm’s current ad campaign, which highlights people of color sharing what luxury means to them, comes across as artificial compared to the company’s own past social responsibility and branding, as well as to other organizations’ diversity initiatives.

In 2008, the company launched “Häagen-Dazs loves HB” (honey bees), a campaign focused on fighting Colony Collapse Disorder, a serious problem responsible for the decline in the global bee population. Given that bees directly impact Häagen-Dazs’ ingredients and the brand’s “all natural” value proposition, the campaign connected with consumers in a genuine way, while also being the first to put the ‘bee’ cause on radar screens. The campaign made sense, given the company’s values and goals.

Häagen-Dazs undoubtedly hopes its new #ThatsDazs diversity campaign will produce similar positive social and company impacts: building its brand reputation, reaching a wider audience, and connecting with younger generations. However, as Häagen-Dazs’ own honey bee campaign showed and as other organizations’ diversity initiatives illustrate, such strategies must have meaningful connections to the company’s products and overall value proposition.

As an example, Ben & Jerry's has been very outspoken on Instagram about causes like social justice, the support of black communities against police brutality, the school-prison pipeline, and white supremacy, as well as supporting other marginalized communities like LGBTQ+, indigenous people, and Asian Americans. It even created a social justice-inspired ice cream called Justice ReMix’d. The company also runs traditional product-focused ads, which perform better than its social issue posts. Still, the cause-related conversations stimulate significant audience engagement and overall support for the brand.

Other companies that choose to integrate inclusion and diversity in their advertising are often clothing brands, home decor product lines, and cosmetics. Compared to ice cream, these types of businesses have more obvious lifestyle-related reasons for showing diversity, as doing so lets people know that anyone can use their products and that no matter who you are, the brand has included space for “you” and your lifestyle.

For instance, many cosmetic companies have been publicly shamed for not offering makeup that suits darker and richer skin tones, making everyday products hard to track down for millions of consumers. Fortunately, a few brands like Fenty Beauty are known for their more inclusive product lines, so that when a customer sees Fenty in stores, they can feel confident that they’ll find something to suit them, just as those with lighter skin can.

Researchers and marketing professionals from Learn Hub, Black Girl Group, and Marketing Schools all agree that diversity marketing has more pros than cons, such as increasing brand loyalty and expanding customer bases, but because #ThatsDazs seems disconnected from Häagen-Dazs’ brand and doesn’t directly integrate with its products, it’s unlikely that the ice cream maker will savor any significant sales increase.

Instead of #ThatsDazs, a more authentic marketing campaign could aim to change people’s perceptions of the firm as being Scandinavian owned and operated and help them see Häagen-Dazs as more genuinely diverse, by showing the people of color responsible for creating its ads and making its products. It could also hold a contest for other creators of color, challenging them to create commercials that highlight why they love Häagen-Dazs.

A more deep-reaching diversity campaign can be great, but ultimately Häagen-Dazs must recognize that it’s an ice cream company that has established itself as a luxury brand. That positioning, more than its stance on diversity, may be hindering the company’s sales because people associate premium products with high prices, but many Häagen-Dazs products don’t deliver on that level.

So, is Häagen-Dazs too expensive? The most popular pints of ice cream in Target and Walmart are Ben & Jerry’s and Halo Top. These brands retail for about $4.50, while 14 ounces of Häagen-Dazs sells for $3.79. The other brands offer their ice cream by the pint, but by ounce their prices are virtually the same.

So why aren't people eating as much Häagen-Dazs? As the Bradly Cooper commercial illustrated, over the years the company has placed more emphasis on its plain ice creams, over their specialty creams with chunks and swirls. Vanilla Häagen-Dazs 14 oz. costs $3.79, while a 1.5 quart of Breyers vanilla (a regional brand) only costs $4.49. At less than ten cents an ounce for comparable vanilla cream, Breyers is the better deal.

Simply said, Häagen-Dazs ice cream isn’t the best on the market for the price and flavors it offers. Diverse ads can’t distract from those basic consumer economics.

As mentioned above, there are several strategies Häagen-Dazs could pursue to make its brand more desirable to consumers, especially those who value diversity. Although the company’s current inclusivity campaign is admirable, surface-level attempts at seeming diverse are always “Simple-Minded Marketing.”

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Don't Be Naïve About Native Advertising

5/22/2021

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by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

Christmas Story fans remember Ralphie’s excitement in receiving a long-awaited Little Orphan Annie decoder ring, only to be disappointed by the unexpected product plug: “Be sure to drink your Ovaltine.” Slipping commercial messages into media content is nothing new, but digital media have exploded that potential with more and more companies trying to make their ads look like they're something else.
Native advertising is the term used to describe “paid advertising where the ad matches the form, feel and function of the content of the media on which it appears.” Think of the approach as camouflage for commercials. Just as hunters wear green and brown to blend into a forest, native ads mimic the look and feel of their media surroundings so people don’t perceive that they’re promotion.

Native advertising has likely existed for more than a century, one of the earliest examples being John Deere’s agricultural magazine The Furrow, which contained “articles on agriculture and farming tips” alongside ads for the firm’s agricultural products. The entire magazine was, in essence, subtle promotion for John Deere; still, readers could probably easily distinguish the publication’s articles from its advertisements.

Today's native advertising is much more stealthy.

Scrolling through a Yahoo.com news feed recently, I saw sandwiched between a Telegraph article about Prince Harry and a MarketWatch piece on COVID-19, an interesting black and white photo of a woman playing pool along with the intriguing caption, “Pics Show A Gross Past To How We Used To Live.” I barely noticed in small type “Ad Autooverload” before hitting the hyperlink.

The link opened a new browser tab for autooverlaod.com with header menu items that included “Racing” and “Supercars.” The page also featured the start of a slideshow titled “Amazing Wild West Photos.” What Lamborghini’s have to do with Wyatt Earp wasn’t clear, but one could imagine that the prolonged progression of “wild west” photos enhances Auto Overload’s web metrics (e.g., time spent on the site, page views) for purpose of appeal to advertisers.

The use of such native ads has been increasing steadily with no signs of stopping. Media from BuzzFeed to The New York Times have incorporated the promotional approach, with some suggesting that native advertising “will soon become as mainstream as the TV ad.”

BigCommerce reports that in the U.S. in 2020, over $47 billion was spent on native advertising and that 62% of all digital advertising, or “six out of every 10 digital ads were native ads.” Furthermore, native ad spending is forecast to increase by 21% in 2021 to a staggering $57.27 billion.

Of course, an increase in native advertising is not a problem unless native advertising is a problem. So, why are 51% of consumers who know what native advertising is skeptical about native advertising?

The example above from AutoOverload serves as a good case for analysis. People are rightly wary of the ethics of native ads like this one because they have a propensity to deceive in two closely-related ways, which also violate Federal Trade Commission (FTC) guidelines.

1) Clickbait photo and caption: A sultry photo alongside the enticing text “gross past,” “wild west,” and “rarely seen,” represent a hard reach to reel people into something that’s likely different than what they expect, in more ways than one.

The use of these visual and verbal elements fits the FTC’s description of bait advertising: “an insincere offer to sell a product or service the advertiser does not want to sell, in order to sell something else . . . .” Again, there’s no reasonable connection between old west photos and automobiles. AutoOverload seems to be taking the somewhat deceptive approach just to increase its site traffic.

The approach can be called “somewhat” deceptive because, the website does deliver a series of old west photos; although, from what I saw, they don’t live up to the promise of “wild.” The greatest deception actually might be of AutoOverload’s advertisers. These sponsors, which include Volkswagen, probably believe they’re paying for pageviews from people interested in purchasing cars—a conclusion that likely is often not the case.

2) Subtle sponsorship: Most of us have regretfully clicked on a sponsored article or post thinking it was an objective news piece or something a private person shared. The frequency of this common experience is largely attributable to what native advertising so often tries to do: Make people believe what they see is not an ad.

One of the easiest ways to do so is to downplay the ad’s sponsorship. The AutoOverload ad sought such subtlety by using the shortest commercial identifier possible, “Ad,” instead of “Advertisement” or “Sponsored Post.” The ad’s commercial nature also might have been overlooked because “Ad” and “Autooverload” appeared in a smaller and lighter color font than that of the headline text.

Such understated endorsements may seem normal, but that’s likely because native advertising has made them so commonplace. This subtle sponsorship stands in stark contrast to most traditional ads on TV, radio, and billboards where sponsors want to be clearly identified.

Why don’t sponsors of native ads seek the same recognition? They do want to be known, but they first want to make sure that people click on their ads, which individuals often are not inclined to do if they know they’re ads. The following two quotes from LinkedIn’s B2B University expose the sneaky strategy:

“Native ads mimic the look, feel, and function of a medium’s content, making it more likely that your audience will trust them.”
“Native advertising is designed specifically not to look like an ad, making it harder to ignore. Instead, it’s designed to look like the rest of the content on the page. As a result, consumers interact with native ads 20-60% more than traditional banner ads.”

So, native ads pretend to be something they’re not in order to increase the probability that people will mistakenly choose them. In other words, the goal of most native advertising is to deceive.

The irony of native advertising’s casual acceptance of deception hit me squarely as I was scanning a daily newsletter from the American Marketing Association (AMA) and noticed the headline “Transparency Is the Clear Choice for Salespeople.” The article summarized the findings of a study published in the Journal of Marketing Research titled “Open Negotiation: The Back-End Benefits of Salespeople’s Transparency in the Front End.”

Contrary to conventional wisdom, the researchers found that “customers to whom the salesperson revealed the cost of a car at the beginning of the negotiation spent significantly more in the back end than others.” In other words truthfulness and transparency from the beginning of the buying process paid off not just morally but monetarily.

These results reminded me that the AMA has identified five core “Ethical Values,” which include honesty and transparency. More specifically, one of AMA’s three “Ethical Norms” explains the aim of fostering trust in the marketing system:

“This means striving for good faith and fair dealing so as to contribute toward the efficacy of the exchange process as well as avoiding deception in product design, pricing, communication, and delivery of distribution” [boldface added for emphasis].

Besides flying in the face the AMA’s clearly articulated professional standards, the deception-driven strategy of some native advertising also violates several specific FTC guidelines:

“When the first contact between a seller and a buyer occurs through a deceptive practice, the law may be violated even if the consumer later finds out the truth.”
“An ad is deceptive if it promotes the benefits and attributes of goods and services, but is not readily identifiable to consumers as an ad.”
“Disclosure must be clear and prominent.”
“Advertisers cannot use ‘deceptive door openers’ to induce consumers to view advertising content.”
“Advertisers are responsible for ensuring that native ads are identifiable as advertising before consumers arrive at the main advertising page.”
“Advertisements or promotional messages are deceptive if they convey to consumers expressly or by implication that they’re independent, impartial, or from a source other than the sponsoring advertiser – in other words, that they’re something other than ads.”

The last bullet suggests what is likely the main ethical issue with native advertising—feigned objectivity. In fact, the FTC understands well the moral rationale as it explains:

“Why would it be material to consumers to know the source of the information? Because knowing that something is an ad likely will affect whether consumers choose to interact with it and the weight or credibility consumers give the information it conveys.”

It’s like a new acquaintance inviting you for coffee “to get to know you better” and soon into your conversation, they start to ask your thoughts about cars while sharing their opinions of a particular make and several specific models. You’re surprised by the topic but support the discussion. Finally, near the end of your meeting the acquaintance reveals that they’re a car salesperson, and they ask if you’d like to schedule a test drive.

Unfortunately, some of us have experienced situations similar to this one, which felt uncomfortable because we want to know:

When the context we’re in is a commercial one, i.e., we’re being sold to.

When the person with whom we’re speaking is an agent of an organization or has some other financial stake in the product or company they’re describing.

There’s nothing wrong with a salesperson doing their job when we know who they are and what they’re doing. We expect them to tell us the good things about their products with little treatment of their weaknesses. Since, complete objectivity is not expected, we take what they say with a grain of salt.

In contrast, when talking with friends, family, or coworkers about products, we let down our perceptual guards and take what they say at face value because we believe they’re objective and unbiased.

To be fair, not all native advertising deceives to the same extent. Some ads very clearly identify themselves as sponsored content, and they provide the exact content they promise, offering real value through useful information or worthwhile entertainment.

However, any ad that tries to trick people into taking steps they wouldn’t otherwise choose is on legally and ethically shaky ground. Relationships that start with a lie usually don’t last, which is why ads that deceive represent “Mindless Marketing.”

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Is Excedrin Out of Its Mind?

5/8/2021

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by David Hagenbuch - professor of Marketing at Messiah University -
author of Honorable Influence - founder of Mindful Marketing

Businesses need to do many things well to be successful, but the most basic is getting people to buy their products. So, why would a company that markets migraine medicine want to help people find other ways to deal with their headaches? What is Excedrin thinking?!

GlaxoSmithKline (GSK), maker of Excedrin, one of the world’s best-known pain management products, recently decided to target video gamers, a cohort whose long hours of intent focus on video screens often create the condition the brand is built to cure—headaches.

It’s not surprising that gamers are susceptible to headaches. Research by Limelight Network found that video game players spend an average of six hours and 20 minutes a week participating in their pastime. However, that average is deceptive: Binge-gaming is on the rise, and most gamers report “having played for more than four hours consecutively.”

A ‘half-workday’ or more glued to a video screen could give anyone a migraine. It’s not surprising, therefore, that Excedrin’s website claims that “89% of gamers have experienced gaming related headaches.” It also adds that “80% simply play through the pain.”

Targeting gamers for headache remedies seems like a no-brainer, especially given Excedrin’s well-tailored creative strategy. For instance, in a 15-second spot that looks like a video game, an animated Guardians-of-the Galaxy-like team called “the Healing Academy” rushes to the aid of a young gamer whose headache has him crying out, “I’m fading.” Tablets taken, the gamer quickly recovers and the ad ends, “Excedrin, game over for headaches.”

GSK’s promotional mix includes several similar short spots as well as banner ads and sponsored posts on Facebook, Twitter, and YouTube. The firm is also leveraging increasingly effective influencer marketing in the form of professional gamer Matthew "Nadeshot" Hagg, who has 1.6 million followers on the live game-streaming platform Twitch.

GSK’s strategy for targeting gamers seems very well-played. However, there’s another part of the brand’s approach that could have many marketers hitting pause and that might make investors ill: Excedrin is also trying to help people avoid headaches.

On a company microsite specially created for gamers, the company references an exploratory study that tested “a simple 6-step routine to mindful gaming designed to improve focus and optimize performance in gamers.” The six steps, which are designed to “help manage the risk of headaches,” include the following tips:

Don’t play angry
Look away from the screen for 20 seconds now and then
Listen to some relaxing music after a long stretch
Pause the game and relax your mind by sketching or doodling
Put down the controller and give yourself a hand massage
Close your eyes and do some deep breathing: inhale through your nose, exhale through your mouth

Excedrin has enlisted 12 Twitch influencers as hosts of branded gaming livestreams, the most notably being Nadeshot, who talks about “the six-step mindfulness routine” during his live play on Twitch.

At first glance, Excedrin’s migraine mitigation strategy sounds good—helping people avoid headaches is a noble endeavor—then one realizes that fewer headaches mean fewer pills popped, lower sales, and less income for the company. It seems like Excedrin is creating a headache for itself.

The company’s strategy has made me wonder, what if I wrote an article, “Six reasons you shouldn’t attend college”?—it probably wouldn’t sit well with my university. Likewise, would an attorney author, “How to represent yourself in court,” or a public accountant pen, “Why to do your taxes on your own”? The likely answer to each is ‘no.’

However, there are other examples that affirm Excedrin’s tips for headache-avoidance. An online search quickly led me to an article, “Safe Driving Tips to Help Avoid Collisions” by an unlikely contributor—an autobody repair shop. Similarly, it may be surprising to see that a physical therapy center has published a piece, “Injury Prevention in Young Athletes.” Aren’t these organizations jeopardizing their own bottom-lines?

The two different sets of examples create confusion because they conflate problems with solutions and preventive measures with cures.

Education, legal representation, and tax preparation are preventative solutions to the probable problems of unemployment, a negative legal judgment, and an audit by the IRS. In the same way, safe driving helps to prevent car collisions and stretching helps avoid athletic injuries.

For an attorney, authoring “How to avoid a lawsuit” is different than writing “How to represent yourself in court.” The first piece is an effort to help people prevent a problem, while the second is a possible solution that wouldn’t only divert business from the firm, things probably wouldn’t end well in court for the self-represented defendant.

So, Excedrin’s mindful gaming tips are preventative measures, aimed at avoiding a common problem for gamers. Yes, fewer headaches mean less demand for migraine medication, but several other factors will likely more than offset any such sales decrease for GSK:

More consumers will know about Excedrin: The public relations exposure that Excedrin is enjoying because of its educational efforts likely means that many more Gen Zers and others who had never heard of Excedrin before are becoming familiar with the brand.
The health tips will create goodwill and trust: Consumers appreciate when companies do things for them without asking for anything in return. Such benevolence builds goodwill. It also engenders trust, as people are more likely to put faith in organizations that aren’t simply looking for sales.
The medicine will make its way into more people’s consideration sets: I’ve been familiar with Excedrin for as long as I can remember, but I don’t think I've ever tried it; I’m not sure why. I only ever consider Advil and Tylenol. I’m not a gamer, but now I’m thinking of trying Excedrin sometime.
People will reciprocate: Often when someone gives or does something for us, we wonder, 'What can I do for them?' Besides being more top-of-mind, Excedrin will benefit from people who have appreciated its headache advise buying the product as a way of repaying the company for its kindness.

So, even if Excedrin’s headache prevention tips stop some people from getting migraines, many more people will be familiar with the brand, appreciate its altruism, trust it intentions, add it to their consideration sets, and purchase the product, partly to reciprocate for its good deed.

Another way to view it is Excedrin is greatly increasing the top of its sales funnel, or its brand awareness, which will inevitably mean more consumers taking action. Granted, the headache tips may somewhat reduce the need for migraine medicine, but gamers and others will still get headaches at times, and more of those who get them will now turn to Excedrin.

As significant as these consumer outcomes are, there’s another consequence of the company’s strategy that’s equally important: the impact on employees.

People want to give their time and energy to worthwhile causes. They want to work for organizations that have a meaningful purpose. Probably few people get excited about making ‘pills,’ accounting for ‘pills,’ or marketing ‘pills.’ However, it would be motivating to work for an organization whose mission is to help people feel better so they can do what they want and need to do.

GSK seems to be such an organization. The company’s “About us” webpage beings with:
“We are a science-led global healthcare company with a special purpose: to help people do more, feel better, live longer.”

The choice of words is telling. GSK could easily say something like, ‘We want to be the premier producer of headache medications. That wording, however, would suggest that the firm’s first priority is its bottom-line and that helping cure customers’ headaches is just a means of getting there. Instead, GSK emphasizes that helping people feel better is what matters.

Employees, not to mention customers and investors, can get excited about that kind of a focus on a greater purpose.

Of course, individuals and organizations can put anything on a website. That’s why Excedrin’s headache avoidance tips are so important: They show that the company truly supports what it says: It puts its medication where its mouth is.

When companies put people ahead of profit, something counterintuitive happens—they make money.

There are hundreds of pharmaceutical companies in the world. According to Pharmaceutical Technology, GSK has annual revenues of over $44 billion, which makes it the world’s sixth largest pharmaceutical firm. In 2020, GSK had income of over $7 billion. All that to say, GSK’s focus on helping people feel better appears to be paying off.

One way to know that someone loves you is seeing them sacrifice something to make you happy. Whether people buy its medications or not, GSK seems to want people to be happy.

It may look strange for a company to lead prospects to a solution that avoids its products. However, such a selfless approach does not go unnoticed; in fact, it’s one that most people find endearing. Excedrin’s effort to prevent headaches before they happen isn’t naïve; it’s actually “Mindful Marketing.”

Subscribe to Mindful Matters blog.
Learn more about the Mindful Matrix.
Check out Mindful Marketing Ads and Vote your Mind!

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